Tata Motors reported a turnaround to net profits of Rs3,764 crore for the September 2023 quarter against a net loss of Rs945 crore in the year ago quarter. Revenues for Q2FY24 at Rs1.05 trillion were up 32% yoy. It primary driver, Jaguar Land Rover, saw revenues grow by 30.4% and EBIT margins expand to 7.3%. In the domestic market, much of the growth came from the CV segment while the passenger vehicles unit saw weak sales in the quarter. However, EBTI margins were higher in the CV business and the PV vertical.
Despite weak retail interest, the IPO of Mamaearth (Honasa Consumer Ltd) got subscribed 7.61 times at the close of subscription on Thursday. The QIB portion led the way with 11.5 times subscription while the HNI / NII portion was subscribed 4.02 times and the retail portion 1.35 times. The Rs1,701 crore IPO was a combination of a fresh issue and an offer for sale. The company is a natural cosmetics company and has been valued like digital player due to its business model that extensively leverages the digital storefront.
In what could be a game changer of sorts, the United Arab Emirates (UAE) is exploring plans to invest up to $50 billion in India over a period of time. There are no specific timelines drawn and this is still in a very plenary stage. If it comes it through, it would be the first sign of a wealthy country willing to invest in the India growth story. Some of the investments into India are likely to be routed through sovereign wealth funds like the Abu Dabhi Investment Authority (ADIA), Mubadala Investments and ADQ, across sectors.
Zurich Insurance of Switzerland will pick up 51% stake in Kotak General Insurance for Rs4,051 crore. In addition, Zurich Insurance also plans to invest another Rs1,609 crore into the business. Once the deal goes through, it will mark the largest foreign investment in a general insurance company till date. The proposed investment values Kotak General Insurance at around $955 million on post money valuation terms. Zurich will also buy an additional 19% in Kotak General Insurance within 3 years; taking its stake to around 70%.
A day ahead of the IPO opening, ESAF Small Finance Bank completed the anchor allotment to institutional investors. The bank has allocated 29.19% of the total IPO size to the anchor investors and this will get adjusted against the QIB quota in the IPO, which would be reduced proportionately. The IPO will remain open from November 03 to November 07. A total of 225.25 lakh shares were allotted to anchors at the upper end of the price band of Rs60 per share amounting to Rs135.20 crore. No MFs participated in this.
GAIL India Ltd has signed a Rs63,000 crore deal with BPCL to source petrochemical feedstock from the latter. GAIL is constructing India’s first propane dehydrogenation (PDH) plant in Usar, Maharashtra with capacity of 500,000 tonnes per annum. For this plant, it will source feedstock from BPCL over the next 15 years. The GAIL plant is likely to go live in 2025. The demand for polypropylene (PP) is projected to grow from 4.9 MTPA in 2020 to 6.3 MTPA in year 2025. Polypropylene finds wide usage in packaging industry.
Dabur India reported 5.1% growth in net profits in the Q2FY24 quarter at Rs515.05 crore, which is well above the street estimates. Revenues for the quarter were up 7.3% at Rs3,204 crore. For the quarter, Dabur reported EBITDA of Rs661 crore, largely driven by the growth in the home, personal care, and the healthcare business. The company has also declared interim dividend of Rs2.75 per share with record date of October 25, 2023. The company reported market share gains across 90% of its overall product portfolio.
Adani Enterprises, the holding and incubating company of the Adani group, reported a 51% fall in net profits to Rs227.82 crore. However, the strength in the incubating business saw EBTIDA grow by 30% yoy. Revenues for the quarter were sharply down 41% yoy at Rs22,517 crore. Nearly 48% of the incubating business of Adani Enterprises came from green hydrogen, integrated manufacturing ecosystem, airports, and roads. Some of its key businesses include data centres, water management, media and many more.