TCS beat Street estimates in the fourth quarter of FY22 reporting revenues of Rs.50,591 crore. TCS also reported record order book of $11.3 billion at the close of Q4. For the fourth quarter, TCS reported net profit of Rs.9,926 crore; a growth of 7.4% yoy and 1.6% sequentially. TCS is expected to gain market share in the coming quarters on vendor consolidation and captive monetisation efforts. For FY22, TCS reported revenues higher by 15.4% yoy of Rs.1.92 trillion. Full year profits came in 14.8% higher at Rs.38,327 crore.
There is a brand new entrant into the Top-10 market cap list. Adani Green Energy entered the coveted club as its market cap overtook that of Bharti Airtel. On 11-April, the stock of Adani Green Energy rallied by 16.3% to Rs.2,702 as the market cap of AGEL scaled Rs.4.22 trillion, putting it just below HDFC. AGEL rallied by 25% in just 2 days after UAE-based International Holding Company (IHC) agreed to invest Rs.3,850 crore in the company via preferential issue. AGEL has the world’s largest renewables portfolio.
Biba Apparels has filed its draft red herring prospectus (DRHP) with SEBI for its proposed Rs.1,500 crore IPO. Biba is an upmarket Indian fashion label backed by Warburg Pincus and Faering Capital. This is likely to include a fresh issue of Rs.100 crore and an offer for sale (OFS) of Rs.1,400 crore. JM Financial, HSBC Securities, DAM Capital, Equirus Capital and Ambit Capital are the book running lead managers to the issue. In the recent past, the IPOs of Go Colours and Vedant Fashions have done well in the IPO market.
Kohlberg Kravis Roberts (KKR) announced plans to acquire 9.99% stake in Shriram General Insurance for a valuation of Rs.1,800 crore. While the agreement has already been signed between the two outfits, the transaction is subject to the receipt of requisite regulatory approvals. The deal values Shriram General Insurance overall at Rs.18,000 crore. Post the deal, Shriram group will hold 67.09%, Sanlam 22.92% and KKR 9.99%. Shriram General Insurance has been a standout performer in the non-life insurance segment.
The pressure of the West on Russia is beginning to show as HDFC Bank and other foreign banks stopped offering trade credit for oil imports to Nayara Energy. Incidentally, Nayara is a Russian-backed company. While Nayara has not been sanctioned, its parent Rosneft which holds 49% in Nayara, is under sanctions. Nayara imports crude worth $1 billion monthly for its 400,000 bpd Vadinar refinery. Banks have stopped opening and confirming Letters of Credit (LCs), which is a standard form of payment guarantee in oil trade.
Wall Street came under pressure on Monday after rising bond yields weighed on market sentiments. In addition, there were fears that the Mar-22 inflation, to be announced on 12th April, would be closer to 8.4%. All the major US indices ended in the red. There are two trends playing in the US markets. Rising yields are hitting tech stocks while the expected slowdown is hitting industrials. Benchmark yields on the 10-year US Treasuries hovered around a 3-year high of 2.75% on fears of a 50 bps rate hike in May 2022.
In a move that would come as a relief to traders, the NSE has decided to reintroduce the “Do not exercise” instruction in stock options effective from April 28. It may be recollected that this facility was cancelled by the exchange in October 2021. “Do not Exercise” is a foolproof option for traders during cash closure of options trades, introduced in 2017, but had become redundant with physical delivery settlement for options. However, there have been cases where this had resulted in big losses amidst drastic price moves.
For the month of Mar-22, India’s CPI inflation is likely to have accelerated higher to 6.36% driven by higher oil prices and a spike in core inflation. The India’s headline inflation may have accelerated to a 16-month high in March driven by rising fuel and energy prices, a Mint poll of 24 economists showed, with the median projection at 6.36%. The government will release inflation data for Mar-22 on Tuesday. Inflation has stayed above RBI’s 4% mandate for over 30 months, and is now making a case for a hawkish tones.