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<ul><li><keyword id="1370206" type="General" weightage="20" keywordseo="solar-industries" source="Orion">Solar Industries</keyword> is a market leader in the Indian industrial explosives market with around 25% market share.</li><li>The company expects annual volume growth at 15-20% on the back of order wins from Coal India and more.</li><li>Its short term upside potential may be limited due to a sharp run up in the stock saw in last month. </li></ul>Capital goods company Solar Industries is poised for high growth – thanks to its robust growth prospects due to a rise in construction activity, its exports and defence play. The company which makes industrial explosives has captured a quarter of the Indian market share, with more to come. “Solar Industries is a market leader in the Indian industrial explosives market which is marked by high entry barriers. Solar Industries, on the back of demonstrated track record of project execution is well positioned to leverage the structural growth story in industrial explosives in India,” said a research report by <keyword id="6391710" type="General" weightage="80" keywordseo="aditya-birla-capital" source="Orion">Aditya Birla Capital</keyword>. Good track record with levers ahead The Nagpur-based company has also demonstrated a good yet steady earnings and revenue growth of 66% over FY21-23 — aided by both strong sales volumes as well as higher realisations due to firm raw material prices. It has a strong margin profile of 19-21% over the last eight years due to price variation clauses in bulk explosives, adds <keyword id="46999" type="General" weightage="80" keywordseo="centrum-broking" source="Orion">Centrum Broking</keyword> which has identified the company as a high conviction stock. “Margin to improve in future due to improving revenue mix with growing share of defence segment,” Centrum said. Moreso, raw material prices have dropped 35% YoY in the first quarter. The company has guided an annual volume growth of 15-20%, and the EBITDA margin expected to be in the range of 20%-22%. EBITDA is earnings before interest tax depreciation and amortisation. The company for whom Coal India is a key buyer, has also forayed into large global mining markets like South Africa, Australia and Indonesia – adding to the upside its revenues can provide. “The company has also forayed into certain offshore markets like Nigeria, Zambia, Turkey, South Africa and Australia to name a few, which offer strong growth potential and a revenue contribution of over 25% from offshore regions,” Aditya Birla Capital says. Too hot to buy? While there is a revenue upside for the company, the stock is currently too expensive for an entry — even as there is long term growth potential. It is currently trading at ₹4,920 which is above the target price of ₹4,700 based on 40x of FY25 earnings, as per Centrum Broking. The stock has given 47% returns in the last one year — but has run up by 28% in the last month due to large order wins. Yet, analysts believe that this run might only affect its short-term gains since long term potential is intact. “We remain optimistic about the company’s ability to deliver sustained earnings growth driven by volumes and mix improvement over the long term, however, believe high valuations are likely to impede upside potential in stock price in the short term,” said Aditya Birla Capital. The downside risks for the stock include slowdown in mining and construction activities which can hamper demand. Added to that, its high revenue of around 40% from international markets, delay or inability in managing sharp currency fluctuations can impact its margins.

Strong roadmap lifts this ‘explosive’ stock but high valuations might spoil the party

<ul><li>The stock has given almost multibagger returns – of around 90% in the last one year.</li><li>It has over 50% market share in India and is the second largest player globally.</li><li>Over two years, its order inflow is expected to grow at 18% CAGR driven by demand from cement, steel, and biomass industries.</li><li>It has no capex planned and works on a negative working capital as it receives advances from customers. </li></ul> Bengaluru-based steam turbine maker <keyword id="899516" type="General" weightage="20" keywordseo="triveni-turbines" source="Orion">Triveni Turbines</keyword> has been gaining from the energy transition in Europe and other international markets as well as growth in the domestic industry. It’s sitting on a lifetime high orderbook of ₹1,400 crore and a robust enquiry pipeline. The stock has given almost multibagger returns – of around 90% in the last one year, and analysts expect better run up ahead this year as it expands its product and service offerings. A recent report by Centrum Broking names it a ‘high-conviction stock’ with a target price of ₹435 while its currently trading at around ₹386. Apart from the power generation sector, the company provides turbines for applications like waste to energy, combined heat and power generation and co-generation which cater to a wide variety of sectors like sugar, steel, paper, textiles, chemicals, palm oil, food processing and more. It already has a dominant market position in the Indian market with over 50% market share and is the second largest player globally. Moreover, since steam turbines are customised products, it has also built a strong competitive moat, says Centrum Broking. The growing book Over the next two financial years, order inflow is expected to grow at 18% compounded annual growth rate (CAGR), driven by sectors such as cement, steel, process co-gen, biomass and distilleries in India; renewables and waste to energy in Europe; and biomass and process-cogen in South East Asia, says the brokerage firm. “Our enquiry book has increased by about 56% for the domestic market in the first quarter. So, the international market and overall, our enquiry book has grown in excess of 22%. We're quite comforted by the fact that both enquiry books have grown,” said Nikhil Sawhney, vice chairman and managing director of Triveni Turbines in Q1 earning conference call. A sweet spot Its sweet spot however lies in its aftermarket services which is a high-margin business. “Triveni Turbines has materially scaled up after-market services by expanding the portfolio to cater to utility turbines, geothermal turbines and other rotating equipment. Order inflow is up 88% YoY ₹460 crore while sales grew 82% YoY to ₹410 crore in FY23,” said Centrum Broking. The company's aftermarket sales grew at 91% over the previous corresponding period and contributed to 34% of total sales, up from 26% at the same time last year, in Q1. It’s also expanding its global footprint with regards to aftermarket sales as well “The segment has been focusing on driving growth in the higher value-added components such as refurbishment and garnered good success in upgradation and efficiency enhancement orders in the quarter under review,” Sawhney said. The company has no major capex plans ahead, unless it aims to enter a new product line. It also has cash reserves to the tune of ₹747 crore. The company operates on negative working capital – where they receive advances from customers leaving it with no burden to borrow, and its reserves include ₹400 crore of customer advances as well.

This capital goods company is gathering momentum with a big orderbook in hand

<ul><li><keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> companies’ December-quarter revenue is likely to grow 16% over last year, says a report by Phillip Capital.</li><li>Analysts expect it to be a tepid quarter for most sectors, including infrastructure, specialty chemicals, IT and metals.</li><li>However, analysts say banks will continue to outperform with strong tailwinds for the sector despite global challenges.</li><li>NBFCs, FMCG and autos are likely to report moderate to robust growth in the quarter.</li></ul>Yet another earnings season has begun, as always, with IT services companies reporting a mixed set of numbers. That pretty much sets the tone of the quarter as strategists expect Nifty50 companies to report on-year revenue growth of 16% and a 10% growth in net profit. Analysts expect it to be a tepid quarter for most sectors, including infrastructure, specialty chemicals, IT and metals. On the other hand, sectors like banks, NBFCs, FMCG and autos are likely to report moderate to robust growth in the quarter. “Q3FY23 is expected to be a soft quarter along with slight margin improvement. We will be watching for management commentary on India and global demand outlook,” says a report by Phillip Capital. “We are of the view that the financial sector will continue to perform while consumption space will remain under pressure. Investment space is expected to perform well led by public and private capex expansion.” Seasonally weak quarter for IT, Reliance to have a strong quarter <a href="https://www.businessinsider.in/business/corporates/news/infosys-results-q3-fy23-infosys-raises-revenue-guidance-for-fy23-to-16-16-5/articleshow/96941824.cms">TCS has kicked off </a>the earnings seasons with lower-than-estimated growth – it reported a 3.98% sequential growth in net profit at ₹10,846 crore in the December quarter. On the other hand, Infosys beat analysts’ expectations with a 20.2% y-o-y increase in its revenue to ₹38,318 crore in Q3 and raised its full-year revenue growth guidance. <a href="https://www.businessinsider.in/business/corporates/news/hcl-tech-lowers-revenue-guidance-for-fy23-to-13-5-14-q3-revenue-and-profit-growth-beat-expectations/articleshow/96944379.cms">HCL Technologies </a>reported a 19.6% year-on-year growth in its topline to ₹26,700 crore, while its net profit grew 19% YoY to ₹4,096 crore, beating analyst <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/hcl-tech-to-announce-q3-results-on-thursday-heres-a-preview-of-what-to-expect/articleshow/96915899.cms">expectations</a> in both the areas. Analysts had expected muted revenue growth from the IT services sector in the third quarter on account of it being a seasonally weak quarter. “The December quarter is a seasonally weak quarter mainly due to higher furloughs. In addition, macro challenges are leading to weakness in mortgage, luxury retail, high-tech and slowdown in 5G capex,” said a report by IDBI Capital. Furlough is a leave of absence from work for which the employee is not paid. Meanwhile, the oil-to-telecom conglomerate Reliance Industries is expected to announce a robust quarter due to strong recovery in the retail segment along with decent uptick in other segments. “We expect Reliance Industries Limited’s (RIL) consolidated PAT to increase by 27% q-o-q to ₹17,316 crore due to improvement in standalone earnings on better refining/petchem margin, decent growth at Jio and strong recovery for retail business,” said a report by Sharekhan. Banks to see strong December quarter on higher loan rates Net interest margin (NIM) will see sequential improvement as lending rates have risen in line with RBI’s repo rate increases, say analysts. Since May last year, <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">RBI has hiked interest rates by 225 basis points so far</a>. While banks benefited from rate hikes in Q2, analysts see more room for a <a href="https://www.businessinsider.in/finance/banks/news/sbi-hdfc-bank-axis-bank-among-other-private-and-public-bank-earnings-could-see-a-further-ramp-up-in-q3-2022/articleshow/96768992.cms">further ramp up in Q3 </a>as well. “We believe business momentum for banks is expected to remain strong, led by strong tailwinds in the sector and is likely to sustain over the medium term as higher inflation gets tamed, revival of the capex cycle, higher consumption, and increased business confidence,” said a report by Sharekhan. “Strong asset quality outlook, additional provision buffers, higher PCR (provision coverage ratio) levels, increased capital buffers, and core credit cost undershooting augur well for the sector,” added the report. FMCG may get a boost from price hikes The fast-moving consumer goods (FMCG) sector is expected to pass the quarter with flying colours on the back of price hikes amid elevated inflation. “Most of the consumer companies are expected to report decent revenue growth; however, a majority of revenue growth will be driven via price hikes, which companies have taken in past quarters to combat unprecedented raw material inflation. Rural demand continues to remain muted. Delay in winter to impact winter portfolio,” said Phillip Capital. “We expect our FMCG universe to deliver sales/ EBITDA/ PAT growth of 11%/ 7%/ 8% YoY in 3QFY23. Sustained inflation impacted both volume offtake and margins,” said a report by Antique Stock Broking. ITC is seen reporting strong growth across businesses with the cigarette business registering a double-digit volume growth. Detergents will likely drive Hindustan Unilever's performance, with margins recovering q-on-q due to a moderation in palm oil - a key input. Autos to reap benefits of festive quarter Despite the near-term challenges of semiconductor chip shortage and geopolitical challenges, analysts are optimistic about autos based on high demand for passenger and commercial vehicles. “Q3FY2023 is expected to be a strong quarter with a 20.4% y-o-y increase in revenue. Margins are expected to show improvement on a q-o-q basis, led by operating leverage benefits, cost rationalisation, and softening commodity prices,” said a report by Sharekhan. Further, strong demand, easing supply constraints, and falling commodity prices are likely to provide relief to automobile original equipment manufacturers (OEMs) and ancillary companies. Ferrous players expected to outperform non-ferrous companies Ferrous players – Tata Steel and JSW Steel – are expected to post better Q3FY23 earnings compared to non-ferrous companies, which include Hindustan Zinc, Hindalco Industries and Vedanta. “For Q3FY23, we expect steel producers to post higher EBITDA QoQ primarily due to sharp fall in coking coal and iron ore price offsetting decline in sales volume sequentially,” said a report by Centrum broking firm. After a challenging first half of the financial year, the domestic steel industry should witness a better second half, says Elara Capital. “The recent removal of exports duty and the likely rise in domestic demand led by the start of the busy season should lead to healthy volume for domestic steelmakers,” the report said. For non-ferrous companies, there are expectations of a marginal fall in quarterly operating profits due to fall in LME (London Metal Exchange) aluminium and zinc prices. Cement sector: Easing input costs in 2H FY23 to drive earnings Analysts say the cement industry is seeing a healthy demand environment with improving cement process and decline in pet coke and coal prices. “Weighted average EBITDA/tonne is expected to recover sharply from a multi-quarter low to ₹765 owing to q-o-q improvement in cement prices, higher demand, and easing power and fuel costs. Hence, operating profits and net profits are expected to rise by 50.9% q-o-q and 77.8% y-o-y, respectively,” said a report by Sharekhan providing estimates for cement companies. The report said that it expects cement demand to remain healthy in the second half of FY23 alongside improving operating margins. Further, analysts will eye commentaries on ongoing and future capex plans. BPCL, HPCL, IOC to benefit from falling oil prices Oil marketing companies – BPCL, HPCL and Indian Oil Corporation – will likely benefit from Brent crude oil prices being on a downtrend since the last couple of months due to a lockdown in China, one of the biggest consumers of oil. “We expect OMCs’ operating performance would improve on sequential basis in Q3FY23 as marketing under recoveries would reduce sharply supported by a ~$11/bbl q-o-q decline in crude oil price while there has been no change in the retail petrol/diesel price,” said a report by Sharekhan. The report added that it expects all three OMCs to report positive EBITDA – Indian Oil (₹ 5,836 crore), BPCL (₹3,112 crore) and HPCL (₹629 crore) in Q3FY23 compared to negative EBITDA of ₹8,841 crore, ₹4,148 crore and ₹1,859 crore in Q2FY23, respectively. Under recoveries is the gap between the cost and the selling price of fuel. If the selling price is lower than the cost price, higher the under recoveries. Thus, a fall in crude oil prices benefits these companies at a time when there has been no hikes in petrol and diesel prices. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/hcl-tech-lowers-revenue-guidance-for-fy23-to-13-5-14-q3-revenue-and-profit-growth-beat-expectations/articleshow/96944379.cms">HCL Tech lowers revenue guidance for FY23 to 13.5-14%, Q3 revenue and profit growth beat expectations</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/infosys-results-q3-fy23-infosys-raises-revenue-guidance-for-fy23-to-16-16-5/articleshow/96941824.cms">Infosys raises revenue guidance for FY23 to 16-16.5%, revenue growth beats analyst expectations</a>

Nifty50 set to clock 10% increase in profit in Q3; banks likely to outperform

<ul><li>Earlier this week, the government reduced the base import prices of crude palm oil and soy oil.</li><li>Following this, edible oil companies have slashed prices of <keyword id="44868" type="General" weightage="20" keywordseo="cooking-oil" source="Orion">cooking oil</keyword>.</li><li>Additionally, prices of household products like soaps, biscuits, noodles and even shampoo, lipsticks and detergents will also fall as palm oil is one basic ingredient here.</li></ul>One of India’s top FMCG companies, Adani Wilmar reduced the prices of one of the priciest of groceries in recent times – cooking oil. "We are passing on the benefit of the reduced cost to our customers. We are confident the lower prices will also boost demand," said Angshu Mallick, MD and CEO at Adani Wilmar after reducing the price of Fortune refined Sunflower oil's one-litre pack by ₹10 to ₹210. This comes after Hyderabad-based Gemini Edibles &amp; Fats and Mother Dairy both cut prices of cooking oil by ₹15 on one-litre pack – bringing relief to this household essential which has been on the receiving end of inflation for months now. This sentiment could spread across more packaged products, by more FMCG majors. “We expect consumer and retail companies to pause taking further price increases though sector valuations appear rich, with improving out‐of‐home consumption,” said a report by Centrum Broking firm. In the last few months as input costs rose, <keyword id="160413" type="General" weightage="20" keywordseo="fmcg-players" source="Orion">FMCG players</keyword> have been resorting to reducing pack sizes while increasing pack prices. A reduction in base import of crude palm oil, soy oil could be passed on to other products in which it is used like — soaps, biscuits, noodles and even shampoo, lipsticks and detergents. It would mean a sharp reduction in household grocery bills, which have only been on the rise for consumers. Normal monsoon can aid the sector to remain green Lower prices would also mean the tapering demand for packaged products would also improve. Also, there are expectations that rural demand may recover on the back of higher government spending and normal monsoon. Rural demand has been hit after consumers <a href="https://www.businessinsider.in/india/news/life-in-rural-india-hit-by-a-wilted-rabi-crop/articleshow/92333426.cms">traded down to cheaper and smaller packets </a>after inflation hit their doorsteps much harder than it did for urban consumers. If and when consumers shift to smaller pack sizes, most FMCG players tend to lose market share to local and regional players who cater more variety at those price points. However, if pack prices improve, FMCG majors’ volumes will improve – which have been losing revenue for the last eight months. Rural economy is key for FMCG players as a cool off in agricultural commodities inflation will also help reduce their own costs and improve margins. “If commodity prices witness correction from the current level, margins of consumer goods companies might witness a sequential improvement from Q3 FY2023. Commentary of most consumer goods companies suggests recovery in sales volume from Q2/Q3 of FY2023, if the inflation environment stabilizes in the coming months,” said analysts at Sharekhan. An FMCG bull run The optimism around the sector picking up soon is reflected in companies share prices as well. In a weak market sentiment, shares of FMCG players were among the biggest gainers as their fortunes will improve irrespective of worries about global interest rates and a possible recession in the US. “We are very bullish on the FMCG sector from here because we believe costs are coming down from previous highs and they are in a position to pass on incremental costs to consumers, which will help to increase these companies' margins,” said Ravi Singhal, vice chairman at GCL Securities. An FMCG bull run in a market would actually buck the trend of an overall lack of enthusiasm in stocks — proving the theory that no matter what happens, people will keep buying essentials albeit at the right price. <div type="image" title="color fmcg" height="900" width="1200" msid="92336486" hostid="261"></div> <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/life-in-rural-india-hit-by-a-wilted-rabi-crop/articleshow/92333426.cms">Vanished savings, trading down to cheaper essentials – life in rural India hit by a wilted Rabi crop</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/india-heads-into-the-thunderstorm-zone-right-after-the-heatwave-orange-alerts-issued/articleshow/92333863.cms">India heads into the thunderstorm zone right after the heatwave, orange alerts issued</a>

Cooking oil prices drop - soaps, noodles and detergents might follow suit

<ul><li>Heightening prices of food and other essential commodities have risen sharply in the past few months across the country due to supply disruption amid Russia Ukraine war.</li><li>Rising inflation across sectors is now leading to slow consumer demand, which impacts volume growth for retail chains like <keyword id="2407038" type="General" weightage="20" keywordseo="dmart" source="Orion">DMart</keyword>.</li><li>This has wiped off $5 billion from Damani’s piggy in 2022 so far.</li></ul>Retail king Radhakishan Damani has lost $5 billion of his personal wealth in 2022 – bringing his fortunes down to $19.3 billion. Though his retail chain DMart is known for the competitive prices of essentials and food items, falling consumer sentiment coupled with high inflation is hitting the purchasing power of the common man badly. Damani is the 77th richest man in the world Damani, who entered the list of Top 100 richest people club last year, is now the 77the richest man in the world. Last year, his stock went on an upswing gaining as much as 70%. This year however analysts have become wary due to <a href="https://economictimes.indiatimes.com/markets/expert-view/dmart-has-no-value-for-new-buyers-at-this-price/articleshow/88803529.cms">expensive valuations and fear that its</a> new store openings might dilute margins. There is also worry that retail in general could be affected by possible disruptions due to modern players. Added to that, macro and global events are affecting its earnings. Its revenue fell nearly 5% sequentially in the Jan-Mar quarter. The company attributed this to the Omicron wave. “January 2022 started extremely well but then the Omicron wave of Covid‐19 reduced the momentum over the middle of the month. These waves typically hurt the high margin and discretionary items more,” said Neville Noronha, CEO and managing director at Avenue Supermarts. The stock slipped fast and low by 21% this year — falling much below the Sensex, which slipped by 6%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in year-to-date </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Avenue Supermart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-21% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sensex </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6.25% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> <div type="image" title="dmart (1)" height="900" width="1200" msid="92031622" hostid="261"></div> The sticker shock effect vs e-commerce play As FMCG players are increasing prices of food and non-food essentials both due to raw material inflation, sales are slowing down. India’s FMCG sector volume in general declined 4.1% compared to last year due to a decline in consumption across all zones and town classes, reportedly according to a <a href="https://www.business-standard.com/article/companies/india-s-fmcg-sector-grows-at-6-in-q4-volumes-contract-on-low-consumption-122060100606_1.html">Nielsen IQ’s report</a>. “With pick‐up in consumer mobility, high product prices impacted demand for FMCG categories resulting in slower volume growth. That said, food and imported inflation (crude and crude palm oil) dampening consumer sentiments,” said a India Consumer report by Centrum Broking. DMart however said that its FMCG segment is showing signs of recovery due to the value proposition it offers. “In the discretionary non‐FMCG segment, as of now, it is hard to estimate if the relative lower growth is due to a secular change over time due to e-commerce shift or due to inflation or due to significantly higher Covid-related negative economic impact for certain shoppers,” the company said. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/why-a-rate-hike-is-not-all-bad-news-for-you-and-how-you-can-take-advantage-of-rising-interest-rates/articleshow/92029328.cms">Why a rate hike is not all bad news for you – and how you can take advantage of rising interest rates</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/politics/india/news/covid-19-cases-are-on-a-rise-in-india-maharashtra-and-kerala-reporting-the-highest-surge-in-cases/articleshow/92030085.cms">COVID-19 cases are on a rise in India — Maharashtra and Kerala reporting the highest surge in cases</a>

DMart owner Radhakrishna Damani loses $5 bn as even essentials become too expensive for Indians

<ul><li>Spicejet is expected to report a washout quarter as the aviation sector bore the brunt of the two-month-long lockdown. </li><li>The investors have high hopes from the company’s cargo operations— the share price has gained nearly 45% since the beginning of the first quarter. </li><li>According to Centrum Broking, SpiceJet’s losses are likely to widen up to around ₹1,000 crore.</li></ul>The shares of India’s largest cargo operator, SpiceJet, advanced 4% ahead of the first quarterly earnings tomorrow. Spicejet is expected to report a washout quarter, as the whole aviation sector felt the impact of the two-month-long lockdown. However, SpiceJet’s investors have hopes from the company’s cargo operations— the share price has gained nearly 45% since the beginning of the first quarter. <div type="image" title="SpiceJet first quart" msid="78107801" hostid="261"></div> Although the amount of cargo it carried was comparatively lower than pre-COVID levels, the upper hand of being the largest cargo operator is that it never brought its whole business to a grinding halt during the lockdown. The budget carrier also expanded its cargo network to counter the low passenger services hit on account of the pandemic. Spicejet’s cargo load saw a significant increase during the April to June quarter. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Spicejet 2020 cargo load </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Domestic </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">International </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,779.30 tonnes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,505.10 tonnes </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,850 tonnes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,680 tonnes </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5,965.90 tonnes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,849 tonnes </td></tr></tbody></table>Source: DGCA Losses for the quarter may further widen In the last quarter, SpiceJet recorded a net loss of ₹807 crore, when the lockdown impacted its operations for just seven days. And, the numbers are likely to swell further in the quarter under review. Here’s how SpiceJet has performed over the last few quarters: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quarter </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit/loss </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4FY19 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 56.3 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1FY20 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 262 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2FY20 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹463 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3FY20 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹78.2 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4FY20 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹807 crore </td></tr></tbody></table> <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/indigo-may-report-rs-2670-crore-loss-for-june-quarter-spicejet-losses-likely-to-be-at-rs-1000-crore-report/articleshow/76860191.cms">According to Centrum Broking</a>, SpiceJet’s losses are likely to widen up to around ₹1,000 crore, owing to operational disruptions and low fixed cost coverage. The numbers are significantly better than what the brokerage <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/indigo-may-report-rs-2670-crore-loss-for-june-quarter-spicejet-losses-likely-to-be-at-rs-1000-crore-report/articleshow/76860191.cms">projected for IndiGo</a>, owing to SpiceJet’s smaller share in the market and strong foothold in cargo operations. <div type="image" title="Air Traffic (1)" msid="78107823" hostid="261"></div> Air traffic took a massive hit Since the lockdown was lifted, nearly all sectors have resumed operations to near-normal levels, but the pessimism around the aviation industry persists. And the Directorate General of Civil Aviation data is proof of that. Spicejet carried 92% fewer passengers than it carried last year in the same quarter. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Passengers carried by SpiceJet </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April to June 2020 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April to June 2019 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,440,598 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-100% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">48,156 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,802,705 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-97.30% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,34,104 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,875,606 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-82% </td></tr></tbody></table>Source: DGCA SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/exclusive-indigo-exec-shares-why-it-is-the-second-best-performing-airline-stock-globally-this-year-despite-record-losses/articleshow/78055738.cms">EXCLUSIVE: IndiGo exec shares why it is the second-best performing airline stock globally this year despite record losses</a> <a href="https://www.businessinsider.in/tech/news/not-just-microsoft-bytedance-wont-sell-tiktok-us-operations-to-oracle-too-says-report/articleshow/78105584.cms">Not just Microsoft, ByteDance won't sell TikTok US operations to Oracle too, says report</a>

SpiceJet shares spike ahead of earnings— losses are certain, but cargo operations may hold some respite

<ul><li>Earnings of Indian tech companies are slowing down but the share prices are still hot! </li><li>The stock of Infosys, TCS, HCL Tech, and Tech Mahindra have rallied while earnings estimates have been cut</li><li>The margins of these software exporters have shrank despite a favourable exchange rate against the US dollar. </li></ul>Earnings of Indian tech companies are slowing down but the share prices are still hot! The stock of Infosys, TCS, HCL Tech, and Tech Mahindra have rallied while earnings estimates have been cut. The business from banking and retail clients — which make for nearly half of the revenue for Indian IT firms — have slowed down. The margins of these software exporters have shrank despite a favourable exchange rate against the US dollar. But the stocks have gained as much as 18% this year. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The financial performance of these companies is not going to improve in a hurry. Foreign investors know this, which is why they pulled out the maximum chunk of their money in India from this sector. Yet local investors are buying into these stocks and the managements' narrative that the growth in digital businesses will offset the weak demand for legacy services — that has led to the sharp rise in stock prices when the growth is getting capped. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Meanwhile, the EBIT (earnings before interest and tax) margins for the top four IT companies have fallen by 350 bps to 21.7% over the last 5 years until the end of September 2019, according to a recent Ambit report. This is despite a 16% fall in the value of rupee, which should ideally boost the margin because these firms make most of their revenue in dollars. The pain is far from over and the margin could fall another 120 basis points by the end of financial year ending March 2022, according to Ambit. The pain for TCS is getting worse Tata Consultancy Services (TCS) is likely to end 2019 on a sombre note. The software exporter owned by the Tata Group is likely to clock a revenue growth of less than 1% in constant currency terms between October to December 2019 quarter compared to three months ago, according to Centrum, a Mumbai-based broking house. Banking and retail verticals have decelerated further, the management told analysts at Centrum. The two verticals account for nearly 46% of the technology major's revenue. The slowdown could affect the full-year earnings too— Centrum expects the growth for financial year ending March 2020 to 8.5% before accounting for exchange rate changes. This would be sharply slower than the 11.4% the company clocked in the previous financial year. Infosys may be relatively better off The expected slowdown for TCS is coming at a time when Infosys is looking to reclaim the coveted pole position among India's IT stocks. The company has reportedly stepped up efforts to bag more deals, and bigger ones, with a special focus on government contracts in the Asia-Pacific region. Further, analysts at HDFC Securities recently said that Infosys could make $100 million to $150 million just from cost-saving initiatives. However, these are just efforts for which results are yet to be seen. In the mean time, as business gets tighter for the technology majors, they are looking to reduce cost by hiring more freshers. They are trying to bring costs down by hiring more people straight out of engineering colleges, and reducing the strength higher up in the corporate hierarchy. In the first 6 months of the year, the five tech companies named above hired over 64,000 freshers. TCS alone picked up 26,500 employees, and a large part of it has been at the bottom of the pyramid. That's not great news for people looking to spike their salary by changing jobs. SEE ALSO: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Indian techies looking to change jobs in 2020 — business is getting tighter for the likes of Infosys, TCS, HCL Tech and their peers

Mumbai, Feb 1 () Notwithstanding the deep distress shown by the investors, market intermediaries and other participants have welcomed the Union Budget.
In one of the strongest negative reactions to the budget, the benchmark Sensex tanked 2.43 per cent on Saturday.
Brokerage-turned-diversified financial services player IIFL's founder and chairman Nirmal Jain sought to attribute the heavy selling to "high expectations" ahead of the budget.
BSE chief executive Ashishkumar Chauhan said the finance minister has delivered a "growth, consumption- and job-oriented blueprint to promote inclusive growth".
The Association of National Exchanges Members of India, a union of trading members, said the market reaction was "slightly overdone on the negative-side".
"The government has definitely put more money in the hands of investors, particularly retail investors. The counterbalancing impact will be seen by the markets going forward and, in my view, stability would prevail as we go forward," its president Vijay Bhushan said.
Sampath Reddy, the chief investment officer at Bajaj Allianz Life, termed the budget as inclusive, which is focusing on increasing disposable incomes and rural sector.
"We expect the markets to soon digest the budget and move onto fundamental and global factors over the coming months," he added.
However, the head of financial services firm Centrum, which has its genesis in the broking business, was a bit circumspect.
"The government has walked a few steps forward to bring back economic momentum, but a lot more remains unaccomplished. We look forward to few more policy measures being announced in the near future to address some seriously affected sectors and lift market sentiments," it said. AA BEN BAL

Analysts hail budget, say mkt reaction 'overdone' on negative side

<ul><li>This would be the third listed airline in India after Interglobe Aviation (which operates IndiGo Airlines) and <keyword id="6358032" type="COMPANY" weightage="20" keywordseo="SpiceJet">SpiceJet</keyword>.</li><li>More than a tenth of Go Air's ₹2,000-crore debt are unpaid dues to Indian Oil Corporation for jet fuel.</li><li>The second wave of the COVID-19 pandemic has scuttled an early recovery in aviation and a rise in fuel cost, along with a weaker rupee and tepid passenger traffic, may further erode the airline's prospects in the next few months.</li><li>Read on for some interesting revelations from the company's IPO prospectus.</li></ul>Budget carrier Go Airlines, which has rebranded itself as 'Go First', has filed the prospectus for an initial public offering (IPO) worth ₹3,600 crore. The 15-year old airline owned by the Wadia Group, which also owns companies like Britannia and Bombay Dyeing, will use the money received from the share sale to repay its debt. This would be the third listed airline in India after Interglobe Aviation (which operates IndiGo) and SpiceJet (owned by former bureaucrat-turned-businessman Ajay Singh) if the IPO goes through. Go Air had raked in a loss of ₹1,270 crore for the year ended March 2020 on a revenue of over ₹7,250 crore. <div type="image" title="go air earnings" msid="82627649" hostid="261" caption="&amp;lt;p&amp;gt;Graphics by Business Insider India&amp;lt;/p&amp;gt;"></div> It is now focusing on ultra low cost carrier model. Of a fleet of 55 that the Wadias' airline had at the end of March 2021, 46 of them were A320 NEO aircraft. The company intends to add another 16 planes to its fleet by March 2024. Aside from a massive debt of over ₹2,000 crore, Go First has been dealing declining market share too. More than a tenth of that is the money owed to the state-owned Indian Oil Corporation for jet fuel already bought. Just about six months ago, in November 2020, the company's auditors had expressed doubts about the then Go Air's ability to continue its business, the disclosures in the IPO prospectus showed. After that, the company got an emergency credit line from banks in February 2021. These are a few other interesting revelations from the prospectus: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Paid by Go Air (now called Go First) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,81,000 a month </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rent paid to Bombay Dyeing for using the premises on the first floor of Wadia International Centre in Worli from July 2016 to July 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8,88,000 a month </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rent paid to Bombay Dyeing for the space on the third floor for Wadia International Centre. The lease started in Dec 2019 and will go on till Nov 2024 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Undisclosed amount </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Go Airlines' registered office is owned by Britannia (which is also owned by Nusli Wadia and Ness Wadia) </td></tr></tbody></table>Source: Draft Red Herring Prospectus filed with the Securities and Exchange Board of India In 2019, when it was reportedly planning an IPO, it was flying at least one in every ten air passengers in India. That share was down to 7.8% at the end of March 2020. A crisis like this makes the more resilient players stronger and that's possibly why IndiGo has increased its market share to at least one in every two passengers who took flights in each of the last three months. <div type="image" title="airline market share." msid="82626874" hostid="261" caption="&amp;lt;p&amp;gt;Graphics by Business Insider India&amp;lt;/p&amp;gt;"></div> The second wave of COVID-19 pandemic has scuttled an early recovery even for Go First's bigger peers. Passenger traffic was still less than half (45%) of what it was before the pandemic struck and about one in every flights were idling in April 2021, according to a report from the broking firm Centrum dated May 5. International crude oil prices are expected to rise and that would mean the cost of jet fuel will also rise, unlike the passenger traffic. And, the impact could get worse if the rupee loses value against the dollar. "Looking at the current climate of subdued demand, a depreciating rupee (impacting 65-70% of costs including fuel), rising ATF (aviation turbine fuel) prices and daily cash burn, we continue to have a negative stance on the aviation industry," a BOBCAPS report dated April 30 said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/markets/news/heres-why-the-spike-in-inflation-in-the-us-may-worry-markets-in-india/articleshow/82597218.cms">Here's why the spike in inflation in the US may worry markets in India ⁠— but experts say don’t panic yet</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/whatsapp-responds-to-privacy-criticism-by-alleging-other-apps-like-zomato-ola-aarogya-setu-zoom-google-and-other-apps/articleshow/82570897.cms">WhatsApp responds to privacy criticism by alleging that other apps and tech companies also show disdain for user privacy</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/elon-musk-realised-that-he-cant-champion-both-renewable-energy-and-bitcoin-at-the-same-time/articleshow/82603087.cms">Elon Musk realised that he can’t champion both renewable energy and Bitcoin at the same time — here’s why</a>

Go Air has filed for a ₹3,600 crore IPO at a very desperate time

Investment experts have projected a positive turnaround for the ITC stock with 41 out of 43 analysts on Bloomberg giving a "buy" or "Hold" call for the stock. As per JM Financial, the addressable opportunity for ITC is still $ 22 billion - larger than even HUL's 'size of markets' and more than three times that of Nestle India's. ITC in FY30 could clock an FMCG EBITDA that is higher than the combined FY20 EBITDA of Nestle India, Britannia, Tata Consumer, JM Financial said. It said that ITC's FMCG segment is possibly one of the most under-appreciated businesses in the Indian consumer space in recent times. "We suspect the market may not have taken a holistic look yet; our understanding of Indian consumer categories tells us that ITC FMCG today addresses market opportunities that are Rs 2.1 trillion ($ 28 billion) in size in aggregate. Even if one excludes a couple of nascent Dairy products from the portfolio, the addressable opportunity for ITC is still $ 22 billion - larger than even HUL's 'size of markets' and more than three times that of Nestle India's," it added. "Profitability is low at present, but we reckon that with investment-phase largely done (though some new categories are still in incubation stages), profits and cash-generation would get much bigger here onwards," the report said. As per Centrum Broking, "In our deep dive analysis into ITC's foods business we conclude that it is at the cusp of a take-off both in terms of top-line and margins." "ITC is emerging as a foods company, more comparable to Nestle than HUL. Branded packed food consistently gaining saliency given the management focus (saliency increased from 71 per cent of other FMCG in FY14 to 81 per cent in FY20)," it added. It is the only company which has successful brands from staples (Aashirvaad) to RTC and RTE (Sunfeast, Bingo, Yippee etc.). ITC has made consistent investments in brand building over the past decade helping create brands across the branded packed food categories from staples a and dairy to RTC and RTE. Aashirvaad, Sunfeast, Bingo and Yippee now account for Rs 60 billion, 40 billion, 27 billion and 13 billion in consumer spend terms. As per BNP Paribas, there is a faster than expected recovery in ITC's cigarette business. The catalyst for ITC is a faster than expected recovery in cigarette volumes and higher than expected margin expansion in the FMCG business. As per B&amp;K Securities, a turnaround in cigarette volumes is expected from September onwards. "We believe the gradual lifting of start/stop lockdowns in most states, opening up of bars/clubs in some states and more attendance in offices due to lesser fears from Covid-19 will lead to the marginal smoker slowly coming back. Given the fact that 30 per cent of the smokers' user base comprises of non-regular smokers who have been impacted by the start/stop lockdowns, we feel the industry figures will start looking up from September 2020," it added. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/stocks-to-watch-sbi-ril-hero-moto-future-group-sun-pharma-vodafone-idea-berger-paints-and-ntpc/articleshow/78356485.cms" data-type="tilCustomLink">Top stocks to watch— SBI, RIL, Hero Moto, NTPC, Sun Pharma, Vodafone Idea, Berger Paints and others</a> <a href="https://www.businessinsider.in/politics/world/news/the-most-shocking-revelations-from-the-new-york-times-report-about-trumps-tax-returns/articleshow/78355707.cms" data-type="tilCustomLink">The most shocking revelations from The New York Times report about Trump's tax returns</a>

Investment experts bullish on ITC, expect a positive turnaround ahead

<ul><li><keyword id="6354706" type="DEFINITION" weightage="20" keywordseo="IndiGo">IndiGo</keyword> is slated to report its June quarter earnings tomorrow, July 29. </li><li>According to various analysts reports, IndiGo is expected to post a loss of ₹2,431 crore. </li><li>According to <a href="https://dgca.gov.in/digigov-portal/?page=4264/4206/sericename">Directorate General of Civil Aviation (DGCA)</a>, India’s domestic air passenger traffic crashed over 43% in May and continued with a 50% dip in June.</li></ul>With the suspension of air travel for almost 2 months in the last quarter, this quarter earnings from InterGlobe Aviation-run IndiGo are going to be a washout. Apart from the lockdown, the additional cost of operating in the times of coronavirus and the burden of aircraft rentals for the period under review is likely to burn its pockets. Even, CEO Ronjoy Dutta himself admitted while laying off employees earlier last week. He said, “IndiGo is flying only a small percentage of its full fleet of 250 aeroplanes.” Dutta also highlighted that the current pandemic has impacted many industries around the world, among which aviation has been one of the sectors that has been the hardest hit. With no aid from the government and even with it’s<a href="https://www.businessinsider.in/india/news/indigo-announces-second-round-of-deeper-pay-cuts-starting-september-1/articleshow/77195457.cms"> escalated cost cutting measures</a>, it has been a tough challenge for Indigo. <div type="image" title="indigo profit." msid="77219511" hostid="261"></div> According to various analysts reports, IndiGo is expected to post a loss of ₹2,431 crore. Apart from travel restrictions, the budget carrier has faced additional challenges in form of restricted ticket pricing, classified on the basis of flight duration, till August 24. Jet fuel has been touching new highs in the past quarter because of the low demand and less air traffic. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Loss (expected) </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prabhudas Liladher </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,215.6 crore </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Centrum Broking </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,672 crore </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JM Financial </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,938 crore </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,901 crore </td></tr></tbody></table> According to <a href="https://dgca.gov.in/digigov-portal/?page=4264/4206/sericename">Directorate General of Civil Aviation (DGCA)</a>, India’s domestic air passenger traffic crashed over 43% in May on a year-on-year basis. It continued with a 50% dip in June even after the government eased restrictions on domestic travel. And, that is the reason IndiGo’s shares have not seen a rally in the past months. The shares of the largest domestic carrier is down over 15% since March 31, and is expected to remain low with no respite in sight for the COVID-led selloff in the aviation industry. <div type="image" title="IndiGo (2)" msid="77219559" hostid="261"></div> <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reco </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target Price </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹961 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JM Financials </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹700 </td></tr></tbody></table> Indigo looks to raise funds Indigo is planning to raise about ₹ 3,000 crore to augment its long-term future and strengthen its balance sheet. <a href="https://www.bseindia.com/corporates/anndet_new.aspx?newsid=47535e0a-e87e-46c5-86a5-a13611656870">According to the intimation to stock-exchanges</a>, IndiGo said that a board meeting is proposed to be held on July 30, to discuss and consider raising of funds. SEE ALSO: <a href="https://www.businessinsider.in/india/news/indigo-announces-second-round-of-deeper-pay-cuts-starting-september-1/articleshow/77195457.cms" data-type="tilCustomLink">IndiGo announces second round of deeper pay cuts after 10% of the employees were laid off</a> <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-india-first-quarter-preview-sales-and-share-price-chart/articleshow/77216142.cms" data-type="tilCustomLink">Maruti is getting bigger in a shrinking market</a> <a href="https://www.businessinsider.in/stock-market/news/mahindra-and-mahindra-finance-managing-director-gets-candid-about-the-rights-issue/articleshow/77212386.cms" data-type="tilCustomLink">EXCLUSIVE: M&amp;M Financial Managing Director gets candid about the rights issue, the bleak prospects for this year and why there should be no more loan moratorium</a>

You Searched For "centrum broking" and got 11 results

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