Adani Green Energy raised Rs2,338 crore by issue of warrants to Ardour Investments on private placement basis. The allocation of warrants will be based on a preferential basis. A total of 631.44 lakh warrants will be issued at a price of Rs1,480.75 each, aggregating to Rs2,338 crore. On conversion and exercise, these warrants will rank pari-passu with existing equity shares. Warrant holders will end up with 3.83% stake in Adani Green Energy. Equity shares issued on conversion of warrants will be listed on BSE and on the NSE.
In a rather surprising move, Punjab National Bank (PNB) elevated its profit guidance for FY24 to Rs7,500 crore. This is sharply higher than the early full year profit estimate of Rs6,000 crore. For the nine months to December 2023, net profits surged 253% to Rs5,230 crore. That means, the fourth quarter net profits will be in the range of more than Rs2,200 crore, which is at par with Q3 net profits. NIMs are at 3% levels. Net interest margins expanded in recently, but lags peer group. Credit and deposit growth were robust.
The Global Trade Research Institute (GTRI) has admitted that longer disruptions on the Red Sea route may hurt output of sectors like electronics, automobiles, chemicals, consumer goods and machinery. The risk is the most for companies that follow just in time (JIT) inventory policies. With Houthi rebels persistently firing at ships in the Red Sea, most liners are taking the much longer Horn of Africa route. Freight cost and insurance rates have shot through the roof in recent weeks. It is also likely to trigger imported inflation.
Bajaj Auto Ltd reported 37% higher net profit for Q3FY24 to Rs2,042 crore driven by robust sales of two-wheelers and price hikes; combined with higher realisations. The product mix of Bajaj Auto for the quarter also veered towards premium vehicles, resulting in higher average selling price (ASP). Revenues for the quarter were up 30% at Rs12,114 crore in Q3FY24. However, exports continued to be tepid with most of the traction coming from the domestic markets. Results were much better than the street expectations.
If there was one factor that allowed HCL Tech to outside the IT peer group, it was the Verizon deal. In Q3, revenue grew at 6% while the net profit grew 13.5% on a sequential basis. This is in contrast to the tepid sequential numbers posted by other IT peers. Due to the Verizon deal, the sequential revenue growth of the telecom practice was 25.9%. The Verizon deal has total contract value (TCV) of $2.1 billion spanning a period of 6 years. HCL Tech saw an improvement in support and subscription-related revenues in Q3FY24.
Macrotech Developers (Lodha) Q3 consolidated net profits were up 25% yoy at Rs505 crore for Q3FY24 quarter. Its net profit had stood at a level of Rs405 crore in the year-ago period. In terms of the top line, the total revenues for the quarter were up 55.5% at 2,959 crore. Most real estate companies in India have shown robust numbers in the recent quarters due a sharp recovery in housing demand. Macrotech sells its properties under the Lodha brand; and is considered among the most valuable realty outfits in India.
The combined market cap of the 10 most valuable companies on the NSE eroded Rs1,16,000 crore in the recent week with HDFC Bank the biggest loser for the second week in a row. HDFC Bank lost Rs32,662 crore, LIC Rs20,683 crore, TCS Rs19,173 crore, SBI Rs16,600 crore ITC Rs15,908 crore and HUL Rs9,210 crore. Reliance was flat while the gainers included Bharti Airtel gaining Rs20,728 crore during the week while Infosys added Rs9,152 crore and ICICI Bank Rs1,138 crore. Nifty was down by -1.01% for the week.
Foreign Portfolio Investors (FPIs) were net sellers in Indian equities worth Rs24,734 crore in January on the back of surging bond yields in the US and a spike in crude oil prices. However, FPIs continued to infuse fund into the debt markets. In December, FPIs had infused a record Rs66,134 crore in the Indian markets. With the Fed not committing on rate cuts, the bond yields spiked, leaving FPIs cautious about EM equities. Crude spiked to $83.55/bbl in the week amidst the Red Sea crisis and that has kept FPIs on tenterhooks.