Government is being Aggressive for Air India Privatization
Bid allowed on basis of Enterprise Value Due to uncertainties caused by Covid – 19, Bidding norms for the privatization of Air India is changed. Now we will see bidding on the basis of its Enterprise Value (EV).
The EV will comprise of 15% cash payment to the government and debt takeover up to 85%. Earlier, The buyer was required to take over the airlines estimated debt of Rs. 23,286 crore which brought down to Rs.17,464 crore due to prevailing situation in the domestic and international aviation industry and worsening of Air India’s performance. The deadline for submission of expressions of interest (EoIs) has been extended from October 30 to December 14. The qualified interested bidders will be intimated by December 28 and given some time for submission of financial bids. The Center is keen that the transaction be closed by March 31, 2021.
Mistry firms offer cashless separation to Tata’s in lieu of stake in group firms
Shahpoorji Pallonji group, which owns 18.4% stake in Tata Sons, on Thursday filed a scheme of separation in Supreme Court proposing to swap its entire holding in the group holding company for equivalent shares in listed entities of Tata group and along with a pro-rata share of Tata brand value (adjusted for net debt against) payable by cash or listed securities.
Earlier where it was considering accepting staggered payments from Tata Sons over an extended period of time. This proposal will help reduce the possibility of any additional debt on Tata group. Management and the legal team is currently examining the settlement application. But this proposal is vastly different from the initial stated intent of complete separation from the Tata group. This would in fact give the Mistry family, which is the single largest shareholder in Tata Sons, more say in the listed companies by virtue of their shareholding. This seems to be strategized proposal by Mistry for splitting of promoter stake in Tata Consultancy Services ( TCS), which is the most valuable company in the Tata stable and enduring source of capital for Tata Sons
Also read: Are You Getting Good Investment Advice? Here’s How to Find Out!
Government allows exports under a new scheme to boost API production
The Department of Pharmaceuticals on Thursday announced amendments to production linked incentive scheme for promotion of domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs) in India. In the scheme for bulk drugs, the government has replaced the criteria of ‘minimum threshold’ investment with ‘committed’ investment. This is a big opportunity for us to remain competitive in the export market and potentially record substantial growth. This will increase momentum in domestic production and speed up the Indian pharma industry’s journey to become self-reliant
Quarter 2 results
Maruti Suzuki witnessed significant demand improvement in the quarter and rose volume due to spiked demand in domestic market. Maruti registered net sales of Rs 17,689.3 crore last quarter, which is higher by 9.7 per cent compared to the same period the previous year.
It sold a total of 393,130 vehicles during the quarter, higher by 16.2 per cent compared to the same period the previous year. Sales in the domestic market stood at 370,619 units, higher by 18.6 per cent, while exports were at 22,511 units, lower by 12.7 per cent. The company posted a 1 per cent increase in net profit at Rs 1,371.6 crore for the quarter on the back of growth in volumes, lower sales promotion and marketing expenses.
Vodafone Idea posted a consolidated net loss of Rs 7,218 crore for the quarter ended September 30. The telecom player had posted a loss of Rs 50,921 crore in the corresponding quarter last year.
Revenue from operations declined marginally by 0.49 per cent YoY to Rs 10,791.20 crore. Average revenue per user (ARPU) increased to Rs 119 in Q2FY21 from Rs 114 in the preceding quarter. Vodafone Idea revenue grew 1.2 per cent QoQ as economic activities have gradually started to resume. The subscriber base declined to 271.8 million in Q2, as compared to 279.8 million in Q1.
The broadband site count stood at 457,386 as of Q2FY21 compared to 446,131 in Q1FY21, with 4G coverage to around 1 billion Indians.
Bharat Petroleum Corporation reported consolidated net profit at Rs 2,589.52 crore, jumping 58 per cent year-on-year due to lower expenses, including material and finance costs. There was 16% drop in total expenses Finance cost for the company was down 86 per cent, while the cost of material declined 45 per cent, reflecting the lower cost of crude oil. Revenue from operations for the quarter, however, was at Rs 66,331.22 crore, down 12 per cent. The strategy to buy cheaper crude oil in April and May helped the company improve Gross Refining Margins to $5.8 per barrel from $3.8 per barrel a year ago. They have opted a strategy to not export diesel and avoid the import of petrol. They are running refinery only to meet our local demand, And also increased petrol production at the Kochi refinery. Sales in October have recovered to pre covid levels, with petrol and diesel registering a growth of 4-5 per cent in sales volume in the current month over the corresponding period last year.
Coca-Cola India witnessed around 2 per cent fall in its consolidated net profit to Rs 619.43 crore for the financial year 2019-20. Coca-Cola India’s revenue from operations rose 2,741.54 crore in 2019-20, up 18.63 per cent during 2019-20 as compared with Rs 2,310.92 crore a year ago. The marginal drop in the profit is on account of marketing expenditures to meet its goals.
The performance in the last financial year was led by strong volumes across portfolio, with better operational execution and availability of consumer demands
Shriram Transport Finance reported a 10.5 per cent decline in net profit at Rs 684.56 crore in July-September quarter of 2020-21. Total income rose 4.68 per cent to Rs 4,351.26 crore during the quarter from Rs 4,156.92 crore in the same period a year ago. However, net interest income fell 1.67 per cent to Rs 2,021.86 crore from Rs 2,056.11 crore in the year-ago quarter. The prolonged lockdown due to COVID-19 pandemic has affected its business operations and it has considered an additional expected credit loss (ECL) provision on loans of Rs 416.65 crore and Rs 1,372.80 crore on account of pandemic during this quarter. However, ECL stood at Rs 2,282.44 crore.
International Markets
America’s largest technology companies are thriving despite the economy’s woes, according to earnings posted by Google-parent Alphabet, Amazon, Apple and Facebook
Alphabet revenue of $46.17 billion, an increase of roughly 14% year over year. This marked to be a strong quarter, consistent with the broader online environment.
Revenue: $46.17 ($42.88 billion expected, according to analysts surveyed by Yahoo Finance)
Earning Per Share (EPS) : $16.40 ($11.21 expected, according to analysts surveyed by Yahoo Finance)
Net Income : $11.25 billion
Google Cloud Revenue : $3.44 billion
YouTube ad revenue : $5.03 billion
Amazon continued to benefit from shopping trends during the pandemic, reporting record profit and revenue during the third quarter. The company reported a $6.3 billion profit in the three months ending September 30, nearly triple that of the previous-year period. Amazon Web Services sales of $11.6 billion for the quarter, up 29% year over year
Revenue : $96.1 ( $92.7 billion expected, according to analysts surveyed by Yahoo Finance)
EPS : $12.37 ($7.41 expected, according to analysts surveyed by Yahoo Finance)
Facebook third-quarter profit and revenue continued to grow along with its worldwide user base, the company said, but it predicted a “significant amount of uncertainty” looking ahead to 2021.
The social media giant’s average monthly user base was 2.74 billion as of September 30, up 12% from a year earlier. Facebook lost users in the U.S. and Canada, its most lucrative ad market. Monthly users in the region dropped to 255 million, while daily users dropped to 196 million.
Revenue : $21.47 billion ($19.82 billion expected, according to analysts surveyed by Yahoo Finance)
EPS : $2.71 ($1.91 expected, according to analysts surveyed by Yahoo Finance)
Apple slightly exceeded Wall Street estimates for its fiscal fourth quarter, powered by international sales, which accounted for 59% of the company’s revenue during the quarter.
Revenue: $64.7 billion ($63.7 billion expected, according to analysts surveyed by Yahoo Finance)
EPS : $0.73 ($0.70 expected, according to analysts surveyed by Yahoo Finance)
IPhone revenue: $26.4 billion
Services revenue: $14.5 billion”
Wearable revenue: $7.8 billion
A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning without any cost on: http://bit.ly/Robo-Fintoo
To Invest and keep regular track of your portfolio download: Fintoo App Android http://bit.ly/2TPeIgX / Fintoo App iOS http://apple.co/2Nt75LP‘
Disclaimer: The views shared in blogs are based on personal opinion and does not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.
