Author: Ajay Vaishnav

Tata Motors Q4 net profit surges to ₹17,407 crore; to pay ₹6 dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors reported a sharp jump in its fourth-quarter net profit at ₹17,407 crore on Friday, May 10, which was also aided by a tax credit of ₹8,159 crore. The Tata Group auto major posted a net profit of ₹5,400 crore in Q4FY23.

Tata Motor’s revenue for the January-March quarter of the financial year 2023–24 rose to ₹1.20 lakh crore, rising more than 14% from ₹1.05 lakh crore in Q3FY23.

Tata Motor’s EBITDA or earnings before interest, taxes, depreciation, and amortisation jumped to ₹17,035 crore, rising 33% on a year-on-year (YoY) basis, from ₹12,810 crore in Q3FY23. The EBITDA came in below a CNBC-TV18 poll, which estimated it at ₹17,712 crore.

The Nexon-maker’s margin for the quarter rose 210 basis points (bps) YoY to 14.2%. The margin also missed the CNBC-TV18 poll estimate of 14.7%.

What Tata Motors management said on financial results

Tata Motors management said it has delivered its highest-ever revenues, profits, and free cash flows and its India business is now debt-free.

“It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest-ever revenues, profits, and free cash flows. The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years,” PB Balaji, Group Chief Financial Officer, Tata Motors, said in the exchange filing.

Looking ahead, Tata Motors management sounded cautious, saying that the first half of the year could be relatively weaker but that it expects resilient demand in its premium luxury segment.

“We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25,” the filing added.

Tata Motors dividend amount and record date

Tata Motors also announced a dividend of ₹6 per share for its shareholders for FY24, which translates to 300% per equity share against a face value of ₹2.

“We would like to inform that the Board of Directors at its Meeting held today has recommended declaration of final dividend of ₹6.00 per Ordinary Share of ₹2 each (@ 300%) (₹3.00 normal dividend and ₹3.00 special dividend) and ₹ 6.20 per ‘A’ Ordinary Share of ₹2 each (@ 310%) (₹3.10 normal dividend and ₹3.10 special dividend) for the financial year ended March 31, 2024. The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before June 28, 2024,” the company informed in its exchange filing.

JLR Q4 results

Tata Motors’ premium luxury segment vertical Jaguar Land Rover’s (JLR) revenue surged 10.7% to £7,860 million in Q4FY24. JLR’s revenue in Q4FY23 stood at £7,102 million. Revenues for FY24 were £29.0 billion – JLR’s highest-ever full-year revenue and up 27% compared to the prior year, the filing said.

Commenting on JLR Q4 results, Adrian Mardell, CEO, said, “We have delivered a record financial performance for the company, generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion. The foundation of this performance was the sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, underpinned by a consistent focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024.”

Tata Motors share price performance

Tata Motors share price settled at ₹1,047 on the NSE, up 1.6%. So far this year, Tata Motors stock price has surged more than 33%. The stock is the second best performer on the Nifty 50.

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Jupiter Wagons continues bullish run; rail freight stock hits 52-week high after strong Q4 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jupiter Wagons shares zoomed to a 52-week high price of ₹484.35 apiece on Friday, May 10, rising 15%. The rail freight wagon maker’s stock has risen for the fourth consecutive session. The one-month gain on the stock is nearly 28%, while the one-year return on Jupiter Wagons is more than 346%.

The Street remains bullish on Jupiter Wagons as the firm reported an over two-fold jump in its standalone net profit to ₹104.22 crore in the March quarter, on account of higher income.

It had reported a net profit of ₹40.78 crore in the January-March period of FY22–23, the company said in a statement on Wednesday.

The company’s total income during the quarter rose to ₹1,121.34 crore from ₹712.71 crore in the year-ago period.

During the quarter, Jupiter Wagons Ltd (JWL) secured an order for the manufacturing and supply of four rakes of double-decker automobile carrier wagons totaling ₹100 crore.

As of March 31, the company’s order book stood at ₹7,101.66 crore.

Domestic brokerage Antique Stock Broking is confident in Jupiter Wagon’s position in mobility solutions and projects a turnover increase to ₹7,000-₹8,000 crore over the next five years.

On March 20, Jupiter Wagon’s approved the acquisition of 94.25% stake in Bonatrans India Private for a cash consideration of ₹271 crore.

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Japanese laminates major Aica Kogyo looks to pick stake in Stylam Industries: Sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aica Kogyo, a Japanese company specialising in laminates, building materials, and chemical products, is in advanced talks to acquire a significant stake in Stylam Industries.

Sources said Aica Kogyo may acquire 40% of Stylam Industries, with a share purchase agreement expected to be signed within a month.

Sources added that Aica Kogyo will purchase a 14% stake in Stylam Industries from its promoters, who currently hold a combined 54.61% stake. The transaction may likely happen at ₹1,500 per share, largely on par with the current market price. Shares of Stylam Industries closed at ₹1,570 apiece on the NSE, up nearly 2%.

With the deal going through, the promoters could raise ₹400 crore. This purchase may trigger an open offer for another 26% stake.

Following the successful open offer, Aica Kogyo would hold 40% of Stylam Industries, while the promoters would also be left with the same percentage.

Sources added that if the open offer doesn’t go through, the promoters might consider selling their remaining 26% stake to Aica Kogyo.

The acquisition could mark Aica Kogyo’s entry into the Indian laminate market, expanding its current portfolio.

CNBC-TV18 is awaiting a response from both Stylam Industries and Aica Kogyo.

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India’s biggest winemaker Sula Vineyards’ Q4 profit slips on mounting expenses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sula Vineyards, India’s biggest winemaker by revenue, reported a 4.2% drop in fourth-quarter profit on Wednesday, as mounting expenses overshadowed steady demand for its premium brands such as Rasa and Dindori.

The Mumbai-headquartered company’s consolidated net profit fell to ₹13.6 crore in January-March from ₹14.2 crore a year ago.

The rapid growth of restaurants and increasing incomes have nudged India’s rising well-to-do young crowd towards wine consumption.

Sula’s revenue rose nearly 10% to ₹131.7 crore in the quarter on a 14% jump in wine sales.

However, the cost of raw materials, which include grapes, sugar and yeast, surged nearly 9% to ₹88.8 crore, hurting its profit.

The winemaker’s earnings before interest, tax, depreciation and amortisation margin contracted to 25.3% from 26.4% a year ago.

The company’s wine tourism segment grew more than 31%.

“Wine tourism is a top priority and we are expanding fast,” CEO Rajeev Samant said in a statement.

Sula recommended a final dividend of ₹4.50 per share. Its shares closed up 1% ahead of results.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bank of Baroda free to onboard customers via BoB World app as RBI lifts ban

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has allowed the Bank of Baroda (BoB) to onboard customers on its mobile app, BoB World, after remedial measures taken by the bank.

“The RBI, vide its letter dated 8th May 2024, conveyed to the Bank its decision to lift the above mentioned restrictions on BoB World with immediate effect, as such as the bank is free to onboard customers through BoB World application in accordance with the applicable guidelines and extant laws/regulations,” the lender informed in an exchange filing.

The regulator had asked the BoB on October 10 to suspend any onboarding of customers onto its BoB World mobile application following concerns over service disruptions and the unauthorised linking of mobile numbers to bank accounts of customers to show higher registrations on its mobile banking application.

#JustIn | Bank of Baroda : RBI lifts restriction on bank’s Bob World with immediate effect. The bank is now free to onboard costumers through Bob World application

Here’s more👇 pic.twitter.com/MBJesHXdEQ

— CNBC-TV18 (@CNBCTV18Live) May 8, 2024

A CNBC-TV18 report in mid-October last year revealed that the state-owned lender suspended several employees after an internal audit for alleged tampering of customer accounts to boost registrations.

The RBI lifting the ban on the lender to onboard customers via the BoB World app could turn out to be a huge boost for the public sector bank stock. A Macquarie report last year showed that the app accounts for 43% of time deposits and three-fourths of all BoB retail loans.

Bank of Baroda shares were trading 2.04% higher at ₹267.8 apiece at 10 am on Thursday, May 9.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor Q4 net profit rises 18% to ₹485 crore; revenue jumps 24% to ₹8,169 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TVS Motor Company reported an over 18% jump in net profit to ₹485.4 crore in the January-March quarter of the financial year 2023–24. India’s third-largest two-wheeler automaker reported a net profit of ₹410 crore in Q4FY23. The net profit, however, came in below a CNBC-TV18 poll estimate of ₹540 crore.

TVS Motor’s fourth-quarter revenue in FY24 jumped nearly 24% to ₹8,168.8 crore, rising from ₹6,604 crore reported in Q4FY23. The quarterly revenue came above the CNBC-TV18 poll estimate of ₹8,020 crore.

On the operational front, TVS Motor posted its highest-ever EBITDA of ₹926 crore for the fourth quarter, with a growth of 36% as against ₹680 crore in the fourth quarter of 2022–23.

The margin for the quarter under review came in at 11.3%, as against 10.3% during the fourth quarter of last year.

For the full financial year 2023–24, revenue from operations grew by 20% to ₹31,776 crore as against ₹26,378 crore recorded in 2022–23. Net profit for the year ended March 2024 is ₹2,083 crore as compared to ₹1,491 crore reported during the year ended March 2023.

TVS Motor Company share price settled more than 2% higher at ₹2,022.45 on the NSE. The one-year return on the stock is more than 64%, compared to the Nifty return of over 22%.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hero MotoCorp Q4 results: Net profit up 18.3% at ₹1,016 crore; auto major to give ₹40 final dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hero MotoCorp reported an over 18% jump in net profit on a year-on-year (YoY) basis to ₹1,016 crore in the January-March quarter on Wednesday, May 8, but 4.7% lower than a CNBC-TV18 poll estimate of ₹1,066 crore. The Delhi-headquartered two-wheeler auto major reported a net profit of ₹859 crore in Q4FY23.

Hero MotoCorp’s revenue also surged 14.6% in Q4FY24 to ₹9,519.3 crore, beating the CNBC-TV18 poll estimate of ₹9,417 crore. The company reported revenue of ₹8,307 crore in Q4FY23.

Hero MotoCorp’s EBIDTA margin for the quarter came in at 14.3%, reflecting an improvement of 130 bps on a YoY basis, driven by product mix, lower commodity costs, higher savings, and judicious price
increases, the company said in its filing.

Commenting on Hero MotoCorp’s  financial results for the fourth quarter (January – March 2024) of FY24, Niranjan Gupta, CEO, said, “Moving forward, we expect the macro‐economic factors to aid the industry’s growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters… Overall, we see a very positive
outlook for upcoming years.”

Hero MotoCorp announces 2000% or ₹40 final dividend

The Board of Hero MotoCorp also announced a final dividend of ₹40 for shareholders that translates into a dividend of 2000% against the face value or ₹2 per equity share.

“Recommendation of final dividend @ 2,000% i.e. Rs. 40/- per share (face value of Rs. 2 per equity share), subject to approval of the members of the Company at the ensuing 41st Annual General Meeting. The payment of dividend / dispatch of dividend warrants will be completed within 30 days of declaration at the ensuing Annual General Meeting (AGM),” the auto major informed in its exchange filing.

Taken together with the earlier announced interim dividend of ₹100 per equity share, marking the centennial year of its late Chairman Dr Brijmohan Lall Munjal, the aggregate total dividend for the year 2023–24 is ₹140 per equity share i.e. 7000%.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pine Labs launches a ChatGPT-like service for Indian banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pine Labs-owned Setu has launched a large language model (LLM)—Sesame—designed especially for the banking and financial services industry (BFSI) sector. Developed in collaboration with homegrown GenAI startup SarvamAI, the LLM has been trained on custom local data relevant to the sector.

The company has touted the move as the ChatGPT moment in the financial sector. The fintech startup said that the model leverages financial data available both internally and externally to help enterprise customers improve their credit underwriting process, detect fraud, monitor loan performance and offer personal finance advisory.

Sesame will be both domain and region-specific and will be trained on custom data relevant to the BFSI sector, the firm added.

“We believe that the powerful combination of the Account Aggregator framework and transformative technologies like Large Language Models (LLMs) is the key to making this a reality. Just as India has led the way with groundbreaking innovations like Aadhaar and UPI, we are excited to build meaningful, compliant, and responsible AI applications that showcase India’s leadership in Applied AI,” said Nikhil Kumar, Co-founder of Setu.

Pine Labs acquired Setu in a cash-and-stock deal valued at $70-75 million in June 2022. Setu works with account aggregator partners and enables the consolidation of financial data of users at a single location and allows them to access services quickly.

SarvamAI was founded in July 2023 and aims to develop custom-made LLMs designed for India-centric use cases. It develops a full-stack offering for Generative AI, ranging from research-led innovations in training custom AI models to an enterprise-grade platform for authoring and deployment.

Sarvam was the first Indian AI startup to raise $41 million in its Series A funding round led by Lightspeed Ventures with participation from Peak XV Partners and Khosla Ventures in December of 2023.

“Generative AI represents a significant step change in the nature of computation. What can be done with one rupee of compute is now dramatically more valuable,” said Pratyush Kumar, Co-founder of Sarvam AI.

“Our collaboration with Setu is an example of bringing this technology to create value in the BFSI space. We showed that we can significantly increase the accuracy of identifying insights from financial statements. This is a template which we believe can be repeated across sectors where India has created foundational digital public goods,” he added.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telangana CM violated poll code, defer Rythu Bharosa payment, says Election Commission

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Election Commission on Tuesday directed the Telangana government to defer payments under the Rythu Bharosa scheme till Lok Sabha polls are held in the state on May 13, saying Chief Minister Revanth Reddy violated the model code of conduct by referring to the payouts in his public speeches.

In a letter to the Telangana Chief Electoral Officer, the Commission said Reddy had violated the model code of conduct by publicly speaking about the ensuing disbursement under the scheme on or before May 9.

Elections to all 17 Lok Sabha seats in Telangana will be held in the fourth phase on May 13.

“In the above premise and clear violation of Model Code of Conduct by Revanth Reddy, President Telangana Pradesh Congress Committee and star campaigner and Chief Minister, the Commission has directed that disbursement of balance instalment under the Rythu Bharosa scheme for Rabi season of 2023 will be effected only after completion of poll in the state of Telangana on 13.05.2024,” the Commission said.

It also expressed concern over attempts to politicise the ongoing scheme during the elections and held that such actions were deemed as attempts to influence voters and disturb the level playing field.

The commission noted that similar directives were issued for the Rayathu Bandhu scheme during the Telangana assembly elections in 2023 on the condition that no new beneficiaries will be added to the scheme and the disbursement of installments will be done without any publicity.

The commission had asked the the Telangana government to make payments through bank transfers and that no public function or political functionary will be involved in the process.

The scheme has been renamed as Rythu Bharosa by the Congress government in Telangana.

The EC noted that a minister of the erstwhile BRS government too had violated the model code of conduct by attempting to take credit for the scheme’s disbursement during the election period.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nayab Saini-led BJP govt in Haryana hangs in balance as 3 independent MLAs withdraw support

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nayab Saini-led Bharatiya Janata Party (BJP) government’s future hangs in balance as three independent Members of the Legislative Assembly have withdrawn support amid the ongoing Lok Sabha elections.

The #BJP Govt in #Haryana loses majority; 3 independent candidates extend support to the #Congress #ElectionsWithCNBCTV18 #ElectionExchange2024 pic.twitter.com/TuRFG4YjNi

— CNBC-TV18 (@CNBCTV18News) May 7, 2024

The three MLAs—Sombir Sangwan, Randhir Gollen and Dharampal Gonder—reportedly said that they have decided to extend support to the Congress during the elections.

The announcement was made at a press conference held in Rohtak. Former Haryana chief minister Bhupinder Singh Hooda and State Congress chief Udai Bhan were also present.

“We are withdrawing support to the government. We are extending our support to the Congress. We have taken this decision on various issues including those related to farmers,” news agency Press Trust of India (PTI) quoted Gonder as saying.

Speaking at the presser, Bhan said that the present strength of the (90-member) Haryana Assembly is 88, of which the BJP has 40 members.

The BJP government earlier had the support of JJP MLAs and Independents, but JJP had also withdrawn support and now Independents are also leaving, he added.

“Nayab Singh Saini government is now a minority government. Saini should tender his resignation as he does not have right to stay even for a minute,” PTI quoted Bhan as saying.

The assembly polls should be held immediately, he added.

Elections to Haryana’s 10 Lok Sabha seats will be held on May 25. The Congress is contesting nine seats in Haryana, while its INDI alliance ally AAP has fielded a candidate from Kurukshetra.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow