Net profits of Larsen & Toubro have risen 10.3% yoy to Rs4,396 crore in the March 2024 quarter. Revenues in the quarter were also up 15% at Rs67,079 crore. Both revenues and profits were also higher on a sequential basis. L&T also saw order inflows of Rs72,150 crore during the fourth quarter, with 35% of the orders being international orders. For the full year FY24, net profits were 24.7% higher at Rs13,059 crore, while full year revenues scaled Rs2.21 trillion. The total March order book of L&T stands at Rs4.75 trillion.
Tata Power is planning 66% higher capex spend in FY25 at Rs50,000 crore, of which nearly half will be in renewable energy (RE) projects. The capex was Rs12,000 crore in FY24. The other half of the capex will be in a mix of transmission, distribution, and conventional power projects. The capex will be funded through internal accruals. Tata Power’s 4.30 GW cell & module manufacturing facility started work in Tamil Nadu and has produced 130 MW since commencement. It targets 70% RE capacities by the close of fiscal FY30.
Google has officially launched Google Wallet for Indian Android phone users and the app is now available for download. The Google Wallet will allow users to securely store personal information like store cards, tickets, passes etc. This is not likely to impact its highly popular Google Pay (GPAY) operation in India. The wallet will not support Indian credit and debit cards, so Google Wallet will be more for non-payment cases only. Google wallet was launched globally in 2011 but was later merged with Google Pay only in year 2018.
One big story in 2024 has been the persistent rally in gold and silver. Both rallied between 12% and 13% since the start of the year and look to have a lot more legs to move ahead. With the upcoming Akshaya Tritiya festival, the demand for both these precious metals will again be in focus. Imports of gold and silver have surged in the last one year, and silver imports. This is on the back of the Comprehensive Economic Partnership Agreement (CEPA) with UAE, which allows concessional imports of these two precious metals.
Canara Bank reported 18.3% higher net profits for Q4FY24 at Rs3,757 crore. This was led by 11.2% spike in the net interest income (NII) at Rs9,580 crore while the net interest margins (NIMs) also stayed robust. Gross NPAs of the bank also fell sharply yoy from 5.53% to 4.23%, although the ratio still remains high by peer group standards. Net NPA ratio also fell from 1.73% to 1.27%, indicating that substantial part of the losses had already been provided for. Canara Bank also recommended cash dividend of Rs16.10 per share.
With the latest round of funds coming in through the FPO, Vodafone Idea is confident of clearing all its vendor dues by FY26. Currently, the company owes around Rs10,000 crore to Indus Towers and Rs3,000 crore to Nokia. In addition, Vodafone Idea is also looking to become 5G-ready by FY26. The FPO helped VI to raise Rs18,000 crore and it plans to raise additional bank debt of Rs25,000 crore. Brokerages like Citi are already bullish on the stock and are expecting a bull-case price target of Rs25 if tariff hikes take effect.
Pidilite, the leading Indian manufacturer of adhesive products, is expecting double-digit volume growth in FY25. This is despite the first quarter demand being soft due to the ongoing elections. The growth is likely to be led by the home improvement sector with the consumer vertical and the bazaar vertical likely to show robust growth in FY25; as well as over 25% volume growth in the B2B segment. Apart from the polls, the extreme heat conditions could also hamper the demand for adhesive products on a mass scale. As per data put out by the National Accounts Statistics, gross capital formation (GCF) in FY23 had grown at a tepid rate of 6.9% after growing at 20.6% in FY22. This was largely on account of contraction in the manufacturing and construction space. In comparison, the GCF for the first 3 quarters of Fy24, for which data is available, shows GCF growth of 10.2%. This is sharply higher than FY23, albeit lower than FY22, which is not comparable as it was a revival from the COVID lows. GCF holds the key to sustainable growth.
