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Financial Insights
Dabur reports 22% decline in profits
Indian FMCG giant, Ayurveda major Dabur India reported a 22% YoY fall in net profits for the period ended in March 2022. It’s profits contracted from Rs 377.29 crores as at last year to Rs 294.34 crores this quarter. Parent to major brands like Real, Dabur Pudin Hara, Dabur Chyawanprash and several others, the company reported a 7.5% growth in revenues and 2% increment in operating profits. However, the company’s rising input costs have affected consumer purchases and resulted in operating profits significantly lower than estimates. The company’s operating margin stood at 18% for the quarter, lower than the 18.9% margin last quarter on account of rising inflation. On that note, the company’s cost of raw materials rose 21.6%. The company had an exceptional loss of Rs 85 crores during the quarter due to the impairment of goodwill of the company’s wholly-owned subsidiary, Hobi Kozmetic, on account of the steep…
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Financial Insights
Uber smashes all estimates as revenues surge
Uber Technologies Inc. reported record growth in revenues and bookings in its first quarter results as the economy shows signs of recovery from the pandemic induced disruptions. The revenues beat estimated figures to reach $6.9 billion as revenues grew 136% YoY as gross bookings surged 35% YoY to $26.4 billion. During the quarter, Uber’s mobility segment reported the strongest growth, a whole 195% YoY. Even though the company managed to best street estimates, the company reported a net loss of $5.9 billion or Loss per share of $3.03 per share, much higher than the estimated figure of $0.41 per share. The losses were not on account of operations. A loss of $5.6 billion was on account of lower revaluation of Uber’s stake in Didi, Grab and Aurora. A further loss of $359 million was on account of stock-based compensation expense. The day after the result, the stock witnessed a full…
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Financial Insights
Kotak Mahindra Bank reports a 65% surge in profits
Kotak Mahindra Bank on Wednesday reported a 65% YoY jump in profits on Wednesday. It’s profit for the quarter was Rs 2,767.40 crores against Rs 1,682.37 crores for the corresponding quarter last year. The bank’s total income for the quarter surged 11.8% from Rs 7,953.12 crores last year to Rs 8,892.26 crores this quarter. The lender’s Net Interest Income, the main income source for any bank, grew 18% to Rs 4,521 crores while fees & other income grew 23% to Rs 1,697 crores. This brought up the bank’s net margin to 4.78% for the quarter. For the year ended on 31st March, 2022, the company’s Net Interest Income surged 9.63% to Rs 16,818 crores, fees and services income grew 33.48% to Rs 5,781 crores while other income saw a marginal decline. Annually, net profit jumped 23.1% to Rs 8,573 crores. The major contributor to profit was not the 14% growth…
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Financial Insights
Delhivery cuts IPO size by 30%
Logistics firm Delhivery announced a 30% reduction in its IPO size on Tuesday, bringing the issue down from its initial size of Rs 7,640 crores to Rs 5,000 crores. ProCapitas had reported on 16th January, 2022, that Delhivery was the first new-age tech company that received the approval of market regulator SEBI in this year. Gurugram-based Delhivery is one of India’s largest independent logistics start-ups founded in 2011. The company provides a full suite of logistics services such as Pracel transportation, reverse logistics, B2B and B2C warehousing, end-to-end supply chain services, etc. with a network exceeding 19000 pincodes and 2500+ cities. The company is backed by several big names like Times Internet, Carlyle and Softbank. Currently, the company has announced that the IPO size will be reduced by 30% wherein Rs 4,000 crore shall be through fresh issue & the balance Rs 1,235 crore via OFS. Carlyle is planning a…
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Financial Insights
HDFC reports 16% jump in net profits
Private lender HDFC reported a 16% YoY growth in profits from Rs 3,179.83 crore to Rs 3,700.32 crores for the quarter ended in March 2022. The Net Interest Income of the lender grew 14% from Rs 4,027 crore to Rs 4,601 crores. It’s revenues for the quarter were Rs 12,308.46 crores, up 5% YoY. The company’s total expenditure saw a marginal decline as the company had lower Finance costs during the quarter. “In the fourth quarter of the financial year under review, the non-individual loan book recorded a growth, with a good pipeline of loans from lease rental discounting and construction finance. The demand for home loans and pipeline of loan applications continues to remain strong. Growth in home loans was seen in both, the affordable housing segment, as well as, in high end properties. The increasing sales momentum and new project launches augur well for the housing sector,” said…
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Financial Insights
Profits tank 26%: Adani Wilmar Q4 results
Adani Group’s FMCG company, Adani Wilmar, has posted a 26% YoY decline in its profits. The profits for this quarter stood at Rs 234.3 crores against Rs 315 crores last year. The company reported a growth of 40.2% in revenues as the figure for the year was Rs 14,960.2 crores. Even though FMCG sector has seen several problems due to the supply chain issues and Russia-Ukraine crisis, the company’s flagship brand ‘Fortune’ managed to record a 16% growth. The company’s expenses grew 40.3% to Rs 14,726.7 crores. Out of all expenses, the cost of raw materials saw the greatest surge, jumping around 40% while other major expenses saw a 26% rise. The company’s consolidated operating profit grew 29% YoY to Rs 488 crores. The cause of its lower profits was because the profit last year was higher than it should have been due to a tax write back of Rs…
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Financial Insights
Twitter Q1 results: Company manages to report profits
Twitter announced its first quarter results yesterday, days after the deal with the world’s richest man Mr. Elon Musk. The company’s revenues reached $1.2 billion, growing 16% from last year. Advertising revenues alone accounted for $1.1 billion growing 23%. However, the company’s subscription and other revenues fell 31% YoY. The company saw a 35% surge in costs as costs surpassed revenues and reached $1.33 billion, resulting in an operating loss of $128 million. However, the company had an extraordinary gain of $970 million from the sale of it’s stake in MoPub. This enabled the company to have a net income of $513.3 million. The company also reported a 16% growth in its Daily Average Users to 229 million. Ever since the deal went through, the company has been embroiled in issues such as people openly expressing their issue with Elon Musk’s acquisition. The share touched a high of $51.70 that…
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Financial Insights
Ambuja Cements profits fall 26% in Q4
Indian cement giant Ambuja Cements reported a 25.56% decline in profits on account of higher costs. Profit for this quarter was Rs 495 crores against Rs 665 crores last year. However, the company did manage to beat the estimated figure of Rs 404.8 crores. The company’s revenues grew 7.7% from Rs 3,579 crores to Rs 3,855 crores as it’s sales volume rose by 3% to 7.5 million. The lower profits for this quarter was on account higher operating costs, 18.5% higher than the same last year. “The January-March 2022 quarter was impacted by rising fuel prices, due to which Ebitda during the quarter was lower by 19%. This was partly mitigated by boosting efficiencies under our flagship ‘I CAN’ programme. Supported by the master supply agreement with ACC we further reduced our logistics costs,” said Neeraj Akhoury, CEO of Holcim India and CEO & MD of Ambuja Cements. Recently, Holcim…
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Financial Insights
Veranda Learning set to acquire T.I.M.E. for Rs 287 crores
Edtech firm Veranda Learning Solutions Ltd. announced on Monday that it will be acquiring T.I.M.E. Institute for a consideration of Rs 287 crores. T.I.M.E. is a test-prep firm established in 1992 which operates in 98 cities throughout India. It holds a substantial market share for MBA exams like CAT, MAT and CMAT. It also provides preparations in NEET, CLAT, JEE (mains & advanced) and other exams of national or state level. It also has a preschool chain called T.I.M.E. Kids which operates in 56 cities. Veranda learning will acquire 100% of the test-prep chain and the acquisition will take place in a phased manner of 80% now and 20% after two years. “The acquisition of T.I.M.E. allows Veranda to expand its national footprint with an asset that has known to have sent around 50% of all students admitted into the IIMs. T.I.M.E. which was one of the pioneers of online…
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Financial Insights
Yes Bank commences insolvency proceedings against Zee Learn
Yes Bank, on Monday, filed an application before the National Company Law Tribunal (NCLT) to commence insolvency proceedings against Zee Learn. Zee Learn is a diversified premium education group which provides learning and education through multiple products. It has several famous products in its portfolio like the Mount Litera Zee School, which has 120 schools throughout India, or Kidzee (heralded as Asia’s largest preschool chain), which is said to have 1900+ operational preschools in India and neighbouring countries. It also operates training institutions in the field of Media and Creative arts. Yes Bank alleges that the company has defaulted on a loan of Rs 468 crores. Zee Learn has claimed the same in an exchange filing which also stated that the company was in the process of compiling information and verifying facts. The share of Zee Learn has had interest from FIIs as they held 18.7% in the company early…
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Financial Insights
Elon Musk set to buy Twitter for $44 billion
The feud between the Twitter board and Elon Musk finally ended on 25th April as both parties finalised a deal and Elon Musk succeeded in landing a deal to buy Twitter. On 4th April, Elon Musk disclosed that he had a 9.2% stake in Twitter, making him the largest share holder in the social media platform. People were excited to see what actions he would undertake. Mr. Musk was subsequently offered a seat at the Board of Twitter, an offer he initially favoured, but later refused. A few days later, he proposed to buy Twitter itself. The company was against this ‘hostile takeover’ as they announced a rights issue to dilute the billionaire’s holding. Mr. Musk announced on 21st April that he had managed to raise $46.5 billion through debt and equity financing. The Board was in discussion with the world’s richest man and it was reported that they would…
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Financial Insights
ONGC commissions projects worth Rs 6,000 crores to improve output
Oil & Natural Gas Corporation (ONGC) has commissioned two projects costing Rs 6,000 crores in an effort to raise output of Mumbai High Fields. The projects are to add 7.5 million tonnes of oil production and 1 billion cubic metres of gas output over the life of the field. It includes an advanced 8-legged water injection-cum- living quarters and the balance on the Cluster-8 development project. The Water injection project has been implemented with strategic emphasis on local procurement of Rs 1,700 crore, in line with the Make in India Initiative of the government. Out of a total 45 major Pumps/packages in the project, 42 major pump packages have been manufactured in India. 40,000 tonnes of structural steel, enough to make 5 Eiffel Towers have been used in the structure. The stock appears to have entered into a range since February 2022 as it saw brief rises and falls beyond…
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Financial Insights
Lenders to take Future Group companies to Insolvency court
Insolvency under IBC seems to be the only way out for the Kishore Biyani led Future Group of companies as Bank of India filed a petition for initiating insolvency procedures against the company in Mumbai. Future Group had a lifeline in the form of a deal with Reliance wherein the stressed group would sell 18 companies operating in retail, warehousing, logistics and wholesale businesses. This deal worth Rs 24,731 crores could’ve saved the group a lot of troubles but the deal fell through. Secured lenders of the Future Group voted against the deal and managed to get the deal rejected with a 69% majority. All of it’s lenders will now initiate insolvency procedures against the company to recover whatever they can from the debt of Rs 28,000 crores, expectations being below 10% of the figure. Reliance, who is in control of 800 of it’s stores, can now bid for the…
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Financial Insights
Indonesia bans palm oil exports from April 28
The Indonesian government has announced that they will be banning export of palm oil from April 28th in a bid to reign in domestic inflation. Indonesia is the world’s largest palm oil producer and the largest consumer as well. It accounts for over 50% of global palm oil production. Malaysia ranks 2nd with 25% of global production. Price of palm oil has increased by 40% since the beginning of 2022. Palm oil is an indispensable commodity as it is used in a variety of products ranging from edibles like chocolate, vegetable oil and ice cream to detergents, soaps and even lipstick. It is also an important ingredient in biodiesel. India has an annual consumption of over 9 million metric tonnes as it is the world’s largest importer of crude palm oil. Palm oil is so important to our economy that the government reduced taxes in February 2022 to assist oil…
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Financial Insights
Ola to recall 1,441 EVs for inspection
Cab booking company Ola’s subsidiary, Ola Electric, has announced a voluntary recall of 1,441 electric scooters amid rise in EV accidents in the country. Ola has seen its fair share of issues. A man complained that his S1 Pro model reversed when accelerating causing him to crash and sustain minor injuries. In a different case, a man suffered severe injuries, broken bones, plates and stitches, when his S1 Pro accelerated when braking. Ola was quick to respond as it blamed the driver for overspeeding. The launch of Ola Electric has been a headache for the founders as people have posted several complaints, regarding the scooters and their customer service. Deaths have occurred due to faulty batteries or short circuit in the battery as the government has imposed strict rules in the matter. The government has notified that of the companies are found to be at fault, they would be severely…
