Month: May 2024

JK Tyre & Industries Q4 Results: Net profit climbs 54% to ₹172 crore

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

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JK Tyre & Industries on Tuesday said its consolidated net profit increased 54% to ₹172 crore for the fourth quarter ended March 31, 2024, on account of higher sales.

The tyre maker had reported a net profit of ₹112 crore in the year-ago period.

Total income rose to ₹3,714 crore for the fourth quarter as compared with ₹3,645 crore in the year-ago period, JK Tyre said in a statement.

For the full year ended March 31, 2024, the tyre maker posted a net profit of ₹811 crore, a three-fold jump, as against ₹265 crore in FY23.

Total income rose to ₹15,046 crore for the last fiscal as compared with ₹14,681 crore in FY23.

The company said it achieved highest-ever sales and profits during FY24.

“This performance is attributed to our continued focus on product premiumisation, widening market reach and tech enabled manufacturing and digitalisation across operations achieving better efficiencies,” JK Tyre Chairman and MD Raghupati Singhania said.

Moreover, the company’s strategic initiatives to fortify its balance sheet through equity infusion yielded fruitful results, reinforcing financial resilience, he added.

Singhania noted that the company’s profit of ₹811 crore last fiscal is after making provisions of ₹106 crore for liability towards ‘Extended Producer’s Responsibility’ imposed by the government on the tyre industry.

He said that exports were flat last year due to geo-political disruptions, including freight hikes.

“In the coming quarters, company expects to improve its export volumes,” Singhania stated.

JK Tyre’s subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company, he stated.

“We remain optimistic on tyre demand outlook led by robust infra-spends and buoyed economic activities,” Singhania said.

He said the company expects a topline growth of 9-10% this fiscal on account of road infra development and continuing robust demand for automobiles in the domestic market.

ALSO READ: Gulf Oil Lubricants Q4 Results | Lubes maker declares dividend of ₹20, net profit jumps 39%

Singhania noted that the company plans to invest around ₹1,400 crore over the next 18-20 months to enhance the production capacity, especially the passenger car tyres.

The company said its board has recommended a dividend of ₹4.5 per share of ₹1 each for the financial year ended March 31, 2024.

JK Tyre shares on Tuesday ended 0.36% at ₹404.30 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Meta hosts ‘Digital Suraksha for Teens’ roundtable to promote online safety

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

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Meta, in collaboration with 1M1B, organised a ‘Talking Digital Suraksha for Teens’ roundtable today, May 21. The event brought together parents and educators from 10-15 selected schools in the city to enhance parental awareness about Meta’s online safety strategies and share best practices for protecting teenagers engaged in the online world.

The session focused on empowering parents to confidently manage their teens’ use of smartphones and digital devices, including on Meta’s platforms. It also gathered valuable insights from parents and educators regarding their experiences and concerns about teens’ social media usage and other online trends.

Natasha Jog, Director of Public Policy in India for Instagram, highlighted the importance of meaningful and safe online engagement for young users.

She stated, “We recognise the need for our young users especially to spend time online meaningfully, to do all the things that they love while staying safe. Through this series of conversations across India, we are seeking ways to engage with educators and empower parents to manage their family’s online experiences, with the boundaries and protections that work best for them.”

This roundtable is part of Meta’s ongoing efforts to enhance user safety, building on initiatives such as last year’s ‘Digital Suraksha Summit’.

Meta has also entered a two-year partnership with the Department of Electronics, Information Technology, Biotechnology and Science & Technology (ITBT), Government of Karnataka. This collaboration aims to empower students and educators across schools and colleges with information and education on online safety and digital citizenship.

Over the past three years, Meta has introduced more than 50 safety tools and features to promote online safety. Recent additions include ‘Night Nudges’, which prompts users to stop using Instagram late at night, and ‘Quiet Mode’, which allows teens to manage their time on Instagram and control what they see.

The Parental Supervision feature on Instagram enables parents to view the accounts their children follow and those that follow their children, fostering greater parental involvement in their teens’ online experiences.

Additionally, Meta’s ‘Family Center’ offers resources for parents and teens to navigate digital platforms safely.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Gulf Oil Lubricants Q4 Results | Lubes maker declares dividend of ₹20, net profit jumps 39%

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

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Lubes maker Gulf Oil Lubricants India Ltd on Tuesday (May 21) reported a 38.74% year-on-year (YoY) jump in net profit at ₹86.2 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Gulf Oil Lubricants India posted a net profit of ₹62.2 crore, the company said in a regulatory filing. The company’s revenue from operations increased 9.8% to ₹869.6 crore as against ₹792 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 34% to ₹117.3 crore in the fourth quarter of this fiscal over ₹87.5 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 13.5% in the reporting quarter as compared to 11.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Also Read: Rategain Travel Q4 Results | Net profit doubles to ₹145 crore for FY24

During the year ended March 31, 2024, the company achieved revenue from operations of ₹3,284.10 crore against ₹2,999.10 crore, growth of 9.50% and profit after tax (PAT) of ₹308.10 crore against ₹232.30 crore, growth of 32.63% compared to the year ended March 31, 2023.

Full-year EBITDA crossed ₹400 crore for the first time touching ₹419.38 crore with a growth of 22.33%. The board has recommended a final dividend of ₹20 per equity share of face value of ₹2 each (1000%) for the financial year ended March 31, 2024.

Ravi Chawla, managing director and CEO of Gulf Oil Lubricants India, said, “We have had an excellent quarter, maintaining our growth momentum. In the financial year, we have gained market share in B2B and B2C, expanded our distribution, and launched new products across segments which have been innovative and value driven.”

Also Read: Ircon International Q4 Results | Construction firm declares dividend of ₹1.30, reports lower net profit

The results came after the close of the market hours. Shares of Gulf Oil Lubricants India Ltd ended at ₹942.10, up by ₹14.75, or 1.59% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Delhi High Court directs SpiceJet to return two leased aircraft, three engines to TWC Aviation

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

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The Delhi High Court directed SpiceJet to comply with a United Kingdom (UK) court order, asking the airline to return two leased aircraft and three engines to TWC Aviation Capital (TWC). The decision came following the allegation on the airline for removing the engines and using them in another aircraft.

In the order, Justice Pratibha M Singh pointed out that the airline caused enough damage already by separating the engines from the aircraft leased from TWC.

The court said, “The separation of engines from the aircrafts in this manner may not even be permissible in the opinion of this Court. The aircrafts frames and aircraft engines now being used separately would cause considerable reduction in the value of these aircrafts for the plaintiff. The dues are not forthcoming from the defendant.”

In the earlier order passed in April 2024, TWC was permitted to take possession of two aircraft as a receiver while the engines were allowed to be used by SpiceJet. Nevertheless, in the present order, the airline was ordered to be hand over the aircraft and the engines to TWC without any conditions, as reported by Bar and Bench.

After finding that SpiceJet failed to pay lease rent dues to TWC Aviation, the Court directed, “This Court has no option but to direct that the aircrafts along with the engines along, with all relevant records relating to technical condition and usage of aircrafts shall be handed over to the Plaintiff by 28th May, 2024.”

A UK court had directed the airline to return the leased aircraft and engines to TWC Aviation. However, TWC filed the suit in Delhi High Court after the airline failed to comply the two orders issued by the UK court.

The two aircraft leased by TWC were two Boeing 737-800 aircraft along with three aircraft engines. TWC claimed that it entered a lease agreement dated May 27, 2019 with SpiceJet to lease these aircraft for 12 months at a basic rent of $180,000 per month.

The agreement was eventually modified in a number of ways to account for financial issues brought on by the COVID-19 pandemic. However, the airline breached the amended agreement as well, the Court was informed.

The Delhi HC held that the suit was justifiable and added to grant interim relief in favour of TWC. The next hearing is scheduled for May 31, as per Bar and Bench.

“Prima facie, the orders passed by the UK court are enforceable in these proceedings in terms of Section 13 read with Section 44A of the CPC. The Defendant (SpiceJet) has already had an opportunity to defend itself in the UK Courts,” the Court said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Robinhood lowers interest rate on margin loans in growth push

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

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Trading app Robinhood Markets is lowering the rate of interest it charges on its margin loans, it said on Tuesday, to encourage more customers to avail this facility that allows them to borrow against securities they hold.

Why it is important

The company has rolled out a series of features recently as it looks to grow into a full-fledged broker and meet the demands of retail investors for sophisticated products.

The renewed structure could increase its popularity among such investors, who have often used Robinhood for their social media-fueled campaigns against Wall Street.

Margin loans allow customers to borrow funds against their investment portfolio, which can then be used for trading.

The company will charge rates ranging from 5.70% to 6.75%, depending on the amount of funds borrowed. It had previously charged 12% interest for customers who had not subscribed to its premium service, Robinhood Gold. For its Gold customers, the rate was 8%.

The first $1,000 borrowed will continue to be free of interest for Gold subscribers.

In comparison, Charles Schwab’s rates range from nearly 11.83% to 13.58%.

Robinhood’s shares have gained 27% since the brief resurgence of the meme-stock frenzy last week.

Context

California-based Robinhood had launched a new credit card for its Gold customers in March. It offers 3% cash back in the form of reward points on spends and has no annual fee or foreign transaction fees.

The company is also offering an account for customers to set aside funds for their retirement, and would match eligible contributions into the account if users hold the funds for at least five years.

Key quotes

“We have to reward our customers for being more engaged with us,” Robinhood’s Chief Brokerage Officer Steve Quirk said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Delhi HC reserves order on doctors’ plea against Ramdev over Coronil

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

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The Delhi High Court on Tuesday reserved its order on a plea by several doctors’ associations against yoga exponent Ramdev over his alleged “unsubstantiated” claim about ‘Coronil’ being a “cure” for COVID-19 and not just an immunity booster. The plea forms part of a 2021 lawsuit by doctors’ associations against the yoga guru, his aide Acharya Balkrishna as well as Patanjali Ayurveda founded by Ramdev, and seeks an interim relief of removal of statements from various media platforms with respect to the claim.

According to the lawsuit, Ramdev made unsubstantiated claims about ‘Coronil’ being a cure for COVID-19, contrary to the licence granted to the drug for merely being an immuno-booster.

The senior counsel appearing for the plaintiffs also sought a direction to restrain the defendants from making further similar statements. Ramdev’s senior lawyer said he was bound by the undertaking given in the Supreme Court in the case concerning advertisements of Patanjali products, adding that he was willing to make a similar statement in the high court as well.

The plaintiffs’ senior lawyer, however, urged the court to pass an order on the interim application stating that the undertaking before the apex court was with regard to not making “causal statements” that are not in compliance with the law. Justice Anup Jairam Bhambhani said the matter before him concerned “specific instances” and reserved the order.

Three Resident Doctors’ Association of the All India Institute of Medical Sciences at Rishikesh, Patna and Bhubaneswar as well as Association of Resident Doctors, Post Graduate Institute of Medical Education & Research, Chandigarh; Union of Resident Doctors of Punjab (URDP); Resident Doctors’ Association, Lala Lajpat Rai Memorial Medical College, Meerut, and Telangana Junior Doctors’ Association, Hyderabad had moved the high court in 2021 against Ramdev and others.

In their lawsuit filed through advocate Harshavardhan Kotla, the associations have submitted that the yoga guru, who is a highly influential person, was sowing doubts in the minds of the general public about the safety and efficacy of not only allopathic treatments but also COVID-19 vaccines. They alleged that the “misinformation” campaign was nothing but an advertisement and marketing strategy to further the sales of the product sold by Ramdev, including ‘Coronil’, which he claimed to be an alternative treatment for COVID-19. On October 27, 2021, the high court had issued summons to Ramdev and others on the lawsuit, saying it was not a frivolous matter and a case was definitely made out for its institution.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Pixar Animation to lay off about 14% of workforce

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

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Pixar Animation Studios, the studio behind such classic films as “Toy Story” and “Up,” began laying off about 14% of its workforce Tuesday as it scales back development of original streaming series, according to a source familiar with the development.

Approximately 175 people will be impacted by the job cuts.

The animation studio had ramped up production of original series as former Walt Disney CEO Bob Chapek pushed each of the company’s creative units to produce exclusive content for Disney+.

His successor, Bob Iger, has scaled back spending on original streaming content to lift Disney+ to profitability.

Pixar will return its focus exclusively to feature films, which will screen in theaters before becoming available in homes via Disney+.

A single original series, “Win or Lose,” about a co-ed softball team, will appear this year on Disney+.

Reuters reported the first wave of layoffs last year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

SEBI introduces new framework for determining unaffected price in response to market rumours

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

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The Securities and Exchange Board of India (SEBI) on Tuesday (May 21) announced a new framework for considering the unaffected price of transactions following the confirmation of market rumours.

Under Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended in 2024, listed entities are required to verify market rumours when there is a significant price movement. The stock exchanges will publish the framework for identifying material price movements on their websites.

According to the new framework, if a rumour is confirmed within 24 hours of a material price movement, the unaffected price will be calculated by excluding the price impact of the rumour and its confirmation. This adjusted volume-weighted average price (VWAP) will be used for transactions subject to SEBI or stock exchange pricing norms.

Also Read: Swiggy IPO: A ‘confidential’ filing is already on SEBI’s table

The unaffected price framework will be implemented in stages — starting from June 1, 2024, for the top 100 listed entities, and extending to the top 250 listed entities (including the next top 150) from December 1, 2024. The methodology involves calculating the adjusted daily VWAP by excluding variations attributed to the rumour and its confirmation.

The unaffected price remains valid for 60 or 180 days, depending on the transaction stage, from the rumour confirmation date to the relevant date under existing regulations, such as public announcements or board approvals. If subsequent material updates to the same transaction are reported, the unaffected price will apply until 60 days from the latest confirmation.

Regarding the framework for verifying market rumours, SEBI has already amended various regulations. On May 17, the market regulator tweaked rules governing insider trading, whereby unverified events or information reported in print or electronic media will not be considered as generally available information.

Also Read: SEBI open to oversight of crypto trade, in contrast to RBI

Generally, available information means the information that is accessible to the public on a non-discriminatory basis. Also, SEBI modified the takeover as well as the buyback norms. The effect on the price of the equity shares of the target company due to material price movement and confirmation of reported events or information may be excluded while determining the open offer price, SEBI has said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Mahindra Group reaches ₹5 lakh crore in market capitalisation

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

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The market capitalisation of the Mahindra Group crossed the ₹5 lakh crore mark after the shares of Mahindra and Mahindra (M&M) rose to a record high, following its better-than-expected March quarter earnings.

M&M — the best performer on the Nifty50 — has rallied as much as 46% so far this year. Further, other group stocks like Mahindra Lifespace Developers and Mahindra Logistics have also returned 11% and 17%, respectively, since the beginning of the year.

As of Tuesday’s close, the diversified group had a market capitalisation of ₹5.2 lakh crore. From its November 2023 low, the group has added ₹1.6 lakh crore to its aggregate market valuation.

Barring M&M Financial Services, all companies from the group have yielded positive returns for 2024 so far. Shares of M&M Financial Services have declined close to 5% year-to-date.

Analysts believe higher operating leverage and benign commodity costs will support M&M’s margin performance. Post Q4 numbers, at least 12 brokerages, including Jefferies, JPMorgan, and Morgan Stanley, increased their target prices, with Jefferies upgrading the stock to “Buy” from “Hold.”

Jefferies foresees a likely improvement in tractor sales in FY25 and strength in the SUV portfolio. “We like M&M’s strong tractor and improving auto franchise, and with the tractor downturn maturing, we upgrade to Buy,” wrote Jefferies in an investor note. The foreign brokerage upgraded M&M’s FY25-26 EPS by 16-21%, factoring in higher volumes and margins.

Among the group companies, flagship M&M accounts for 60.5% of the group’s valuation, while another 25% is contributed by the software arm Tech Mahindra.

The stock of M&M has been generating decent returns for its shareholders. While the stock has been the best performer on the Nifty50 this year, it had generated more than 30% returns every year from 2020, except 2021, in which the stock was up by 14%.

For the quarter ended March 2024, M&M reported a 32% increase in its standalone net profit to ₹2,038 crore. A poll of analysts by CNBC-TV18 had pegged a profit of ₹1,800 crore for the quarter. The stellar numbers in Q4 also boosted its net profit for the year, which stood at ₹10,718 crore, up 64%.

Shares of M&M ended Tuesday’s session at ₹2,522.65 on the NSE, up 1%, whereas the stock of Tech Mahindra gained 1.4% to close at ₹1,323.90.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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