The RBI MPC announced the first monetary policy for 2024, keeping repo rates at 6.5%, along expected lines. This keeps the SDF rate at 6.25% and the MSF/Bank Rate at 6.75%. RBI has also maintained its projections for inflation and GDP growth at the same level as the previous policy statement. The monetary stance was maintained at “gradual withdrawal of accommodation.” The RBI may not cut rates in India till June or August this year. However, the RBI governor did warn markets about the volatile global situation.
Life Insurance Corporation (LIC) of India reported 49% higher net profits for Q3FY24 at Rs9,444 crore. This compares favourably with net profits reported at Rs6,334 crore last year. Total premium income for LIC rose 4.68% to Rs1,17,017 crore in Q23FY24. Total income of LIC increased by a full 7.90% to Rs2,12,447 crore in the quarter. In the last 3 months, LIC has seen a revival in the number of policies sold and also on the new business premiums (NBP) collected. In the first 8 months of FY24, LIC numbers were below par.
Mutual funds saw net inflows of a robust Rs1.23 trillion in January 2024 with debt fund accounting for over 62% of the total inflows into mutual funds. Flows into equity funds were robust at above Rs21,000 crore and this is a 1 year record for domestic fund flows. Hybrid funds and passive funds saw net inflows in all categories. SIP flows for January 2024 touched a record, inching closer to the Rs19,000 crore mark. NFO flows were also robust, but largely dominated by inflows into NFOs of multi-asset allocation funds.
Grasim Industries, the flagship holding company of the Aditya Birla group, reported 48% higher net profits at Rs1,514 crore. Revenues for the Q3FY24 quarter were up 12% at Rs31,965 crore. During the quarter, Grasim completed the partial sale of its health insurance business. Grasim is the holding company of the Birla group companies like Ultratech Cements, Birla Finance, and others. In addition, Grasim also has its core business focus in products like viscose staple fibre (VSF), diversified chemicals, linen yarn, and fabrics.
SEBI issued orders against 15 guest speakers at Zee Business channel for indulging in unlawful circular trading. They used the reach of the channel for spreading the word. However, these traders took positions before announcing it on television channels; popularly called front-running. When prices went up, traders got out at a neat profit. SEBI investigated mails, telephone calls, chat transcripts, and social media. These 15 traders on Zee Business were barred from the stock markets and have to pay penalties of Rs7.61 crore.
Hero Motocorp is expected to report robust numbers in Q3FY24. Hero Moto witnessed higher volumes and operating leverage. In addition, the lower input costs also made a difference. Consensus estimate for Q3FY2024 peg the quarterly net profits at Rs1,048 crore. Revenues are expected to climb by 21.1% at Rs9,278 crore. The EBITD for Q3FY24 is expected to rise 47% to Rs1,361 crore, while the EBITDA margins are likely to improve 250 basis points from 11.5% to 14.0%. Rural demand remains the big missing link.
Oil India plans to spend Rs6,000 crore in exploration and production of oil and gas in FY25. Oil India is also open to the idea of investing more than that amount. The company sees its annual oil production grow to
4 million tonne in FY25; and the annual growth rate has been around 4.5% CAGR. Oil India is currently exploring in Mahanadi basin, Kerala-Konkan belt, and in Kakinada. It recently won another block in the eighth bidding round under the Open Acreage Licensing Programme. It is also exploring overseas blocks. Airbus has awarded a contract to Dynamatic Technologies Ltd for manufacturing all the doors of its narrow body A220 family of aircraft. This is considered a significant leap in the “Make in India” initiative. This was announced by Civil Aviation Minister, Jyotiraditya Scindia. Financial details are awaited. Dynamitic already manufactures the Flap Track Beam of the Airbus A330 and A320 family aircraft. This will mark the single largest export contract for an Indian aerospace company. Tata Advanced Systems operates in this area.