Today’s Latest Business News Transcript at 10:00 AM on 3 May 2024
Let’s begin. The Centre will consider favourably any request from Vodafone Idea for either deferring or converting adjusted gross revenue and spectrum dues into equity post September, 2025, when the current moratorium on such payments ends. However, such relief may come attached with certain conditions, officials told Fe. Officials said with the successful Rs 18,000-crore follow-on public offer last month, the telco will be able to participate in industry growth and the government will support it in every possible manner. Vodafone Idea chief executive officer Akshaya Moondra recently told FE that the company may need further support from the government once the current moratorium on the AGR and spectrum dues ends in September, 2025.
Over to banking now. Thrissur-based South Indian Bank expects its gross non-performing asset ratio to fall to 4% by March 2025 from 4.5% currently. Managing director and chief executive officer PR Seshadri said, quote, “We have not done any active write-offs. We are working on what we currently have. We are hoping that we would be in the neighbourhood of 4% at the end of FY25,” unquote. The GNPA ratio stood at 5.14% a year ago. The net profit of the bank fell 13.9% year-on-year to Rs 287.6 crore in the March quarter due to sharp rise in expenses. Overall, the bank’s gross advances rose nearly 12% y-o-y to Rs 80,426 crore as on March 31, driven by a growth in corporate loans.
In some more banking news, the RBI has allowed Bajaj Finance to resume the sanction and disbursal of new loans under eCOM and online through its ‘Insta EMI Card’. The company remains committed to ensure adherence and compliance of regulatory guidelines. On November 15, the RBI directed Bajaj Finance to stop the sanction and disbursal of loans under its two lending products ‘e-COM’ and ‘Insta EMI Card’ with immediate effect. In its notification, the central bank said that the action is necessitated due to non-adherence of the company to the digital lending guidelines. Additionally, the RBI also observed deficiencies in the key fact statements issued in respect of other digital loans sanctioned by the company.
Meanwhile, Premium fashion and lifestyle products are beginning to show an uptick again after months of reeling under a slowdown. March quarter results of companies such as Shoppers Stop, Vedant Fashions and Reliance Retail have pointed to a revival in demand, even as the value retail segment, led by companies such as Trent’s Zudio, continue to outperform the sector. In fourth quarter, Trent reported a 51% year-on-year growth in revenue, led by Zudio, whose store count is the highest within the company at 545. Westside’s total store count at the end of the March quarter is 232, less than half of Zudio’s network, indicating the retailer is keen on keeping a firm eye on value retail.
Moving on. In a relief to EY affiliate firms S.R. Batliboi & Co and others, the Delhi High Court has stayed the order of Institute of Chartered Accountants of India against the audit firms. The stay order has come a week after the ICAI’s disciplinary committee issued a report highlighting the violation of certain provisions of Chartered Accountants Act 1949 by SRBC and its network firms. The ICAI committee had also penalised a retired partner for professional misconduct. Following the stay order, an SRBC spokesperson said that as an Indian audit firm, it has always respected the rules and applicable laws. Meanwhile, ICAI has removed the order from its official website.
Over to market. Adani Enterprises, the flagship company of Adani Group, reported a 37.6% decline in net profit to Rs 451 crore, attributed to one-time charges related to past airport dues and commercial mining losses. In comparison, the firm had posted a net profit of Rs 722 crore in the same quarter of the previous financial year. The firm’s revenues rose 0.8% to Rs 29,180 crore from Rs 28,944 crore, while Ebitda fell 11.4% to ₹3,195 crore, and Ebitda margins fell to 11% from 12.5%, AEL said in a statement. A consensus estimate of Bloomberg analysts was expecting the firm to post a consolidated revenue of Rs 30,266 crore and Ebitda of Rs 3,834 crore.
Lastly, let’s look at the stocks in focus today. These include Bajaj Finance, Coal India, Coforge, Mazagon Dock, Indian Energy Exchange, Hindustan Unilever, Titan, and Britannia Industries. Coal India recorded a 26.2% increase in its consolidated net profit to Rs 8,682.20 crore for the March quarter, compared to Rs 6,875.07 crore in the corresponding period last year. On the other hand, Coforge announced its intention to purchase a stake of up to 54% in Cigniti Technologies at a price of Rs 1,415 per share. Ajanta Pharma intends to repurchase up to 10.28 lakh equity shares, equivalent to 0.82% of the total outstanding shares of the company.