Wipro consolidated net profit for Jun-21 quarter was up 36% at Rs.3,243 crore. Even on sequential basis, the net profits were up 9.1%. Top line revenues were up 22.3% at Rs.18,525 crore while growing 22.4% sequentially. Wipro has given a revenue guidance growth of 5-7% for Q2 in dollar terms. The only area of concern was that the operating margins of Wipro fell by 200 bps to 18.8%. Wipro performance was helped along the way by the acquisition of Capco. Attrition rate was up at 15.5%, triggering mega hiring plans.
At the end of the second day of the IPO, the Zomato issue was subscribed almost 5-times on Thursday. Against the 71.9 crore shares on offer, Zomato elicited bids for 345 crore shares, implying subscription of nearly 4.8 times, with just one day to go for the issue to close. The QIB portion was subscribed 7.1 times while the retail portion was subscribed 4.73 times. The HNI portion saw just 0.45X subscription, but these applications typically come only on the last day. The company is likely to be valued at Rs.60,000 crore.
The export data remained steady for Jun-21 but an 8.6% sequential spike in in imports led to widening of the trade deficit to $9.7 billion. While exports stood at $32.5 billion, merchandise imports for Jun-21 stood at $41.87 billion. For the first quarter ended Jun-21, the cumulative trade deficit stood at $30.75 billion. On a yoy basis, the oil imports were up 117% at $10.68 billion on the back of higher volumes and higher crude prices. The overall deficit for the first quarter, including services, also widened by $2.33 billion.
The RBI restrictions on Mastercard is likely to hit a number of banks in India that are largely dependent on the Mastercard franchise. For example, all credit cards issued by RBL Bank and Yes Bank are on the Mastercard platform. Among the larger banks, HDFC Bank has nearly 60% cards on Mastercard platform. Comparatively, ICICI and Axis have less than 40% on the Mastercard franchise. This ban will impact the new card additions by these banks, although some like RBL Bank have made the shift to Visa platform.
SEBI has moved the Supreme Court against the June 28 SAT order staying its decision to bar Templeton AMC from launching new debt schemes in India for 2 years. The SEBI order had also called for disgorging Rs.512 crore of management fee collected in the last 2 years to be repaid to customers. With the winding up of the 6 beleaguered schemes under progress, SEBI has attacked the SAT decision as being excessive. SEBI had accused the AMC and its key personnel of violating basic trust of unitholders and also fund ethics.
The Maharashtra EV policy announced during this week has received appreciation from Tata Motors and M&M; two of India’s biggest electric vehicle manufacturers. They expect the newly announced EV ecosystem to give a major boost to electric mobility. Both Tata Motors and M&M have been betting on EVs in a big way and have been investing heavily in this space. They have called the new Maharashtra EV policy progressive and comprehensive. Maharashtra has plans to achieve 25% EV adoption by year 2025.
Venus Remedies, a research-based pharma company, launched a dedicated consumer healthcare division. This marks their foray into the Rs.30,000-crore consumer healthcare market in India. The company plans to come out with consumer healthcare supplements covering pain management, gastroenterology, hygiene, stress management and vitamins. The focus is more on everyday healthcare solutions. It will be largely a self-care approach. Consumer healthcare is poised to grow at 12-15% per year over the decade.
ITC has raised concerns over the timing and shape of India’s economic recovery trajectory, especially after COVID 2.0 and its impact on consumer demand. ITC has noted that, specifically urban recovery could be muted as compared to the first wave, while the wider spread of the COVID 2.0 to villages could impact rural demand for FMCG products. ITC expects rural demand in FY22 to lag FY21. ITC noted that the urban led recovery could be negatively impacted due to rising healthcare costs as well asspending conservatism.