Business News

Indian two-wheeler major Bajaj Auto is expected to report a net profit of Rs 1,606 crore for the quarter ended March 31, 2024 which will be a 29.45% year-on-year jump over the profit after tax (PAT) of Rs 1,432.90 crore reported by the company in the year ago period, according to average estimated of four brokerages.The revenue for the three-month period is expected to be around 11,063.30 crore according to the average estimates, up by 24.37% on the YoY basis.The gains in PAT and revenue will be on account of higher sales volume on the YoY basis, richer product mix and commodity tailwinds.The company will announce its quarterly earnings on April 18, Thursday.Here’s what brokerages recommend:NomuraNomura expects Q4 revenue to increase 26% on a YoY basis at Rs 11,181.5 crore versus 8,904.70 crore reported in the year ago period. On the QoQ basis, the revenue will be down by 8%. The net profit for the said quarter will likely be Rs 906.70 up by 33% on a YoY basis while down by 7% on a sequential basis. EBITDA is seen to go up by 30% YoY to 2,235.30 crore versus 1,716.60 crore in Q4FY23. It will be lower by 8% on a sequential basis. The revenue growth will be led by 25% YoY increase in volumes, Nomura said while estimating EBITDA margins to remain stable on a QoQ basis at 20% aided by tailwinds from better mix (exports, 3W) to partly off-set by weak operating leverage and higher EV share. The margins will be up 71 bps on a YoY basis while down by 7 bps on a QoQ basis. Axis SecuritiesAxis expects total revenues to increase by 25.5% YoY to Rs 11,172 crore while a decline of 7.8% on the QoQ basis. It sees profit after tax (PAT) increasing by 29.3% YoY to Rs 1,853 crore while declining by 9.3% on a sequential basis. The domestic brokerage sees revenue gains on the back of 24.2% YoY likely increase in volumes and increase in the average selling price (ASPs) on account of higher mix of the premium 2W segments expansion and price increases. Though, it will partly be off-set by lower 3W volumes in the mix.Axis estimates Q4 volumes at 10,68,576 units, up by 24.2%from 8,60,271 units in Q4FY23. On a sequential basis the volumes are expected to come down by 11%. Meanwhile, EBITDA margin is expected to improve by 36 bps YoY while declining by 40 bps on the QoQ basis. The YoY gains will be on richer product mix, commodity tailwinds and partly offset by negative operating leverage.JM FinancialJM expects revenues to increase 25% YoY to Rs 11,101.20 crore led by strong volume growth. The two-wheeler company is expected to report 10,68,576 units which will be a 24.6% uptick on the YoY basis. However, the revenue will be 8.4% lower on the QoQ basis amid an 11% drop in sales volume from 12,00,997 units reported in Q3FY24. PAT is expected to go up by 31.5% to Rs 1,884.60 crore versus Rs 1,432.90 crore reported in the year ago period. EBITDA is likely to remain at Rs 2,230.20 crore, higher by 29.9% on a YoY basis versus Rs 1,716.60 crore. It is down sequentially by 8.2%. JM said that it expects flattish ASP on YoY basis as the higher mix of the premium 2W and EV segments to be largely offset by the lower mix of the 3W segment. It also expects EBITDA margin to remain flat QoQ as we expect favourable product mix and moderating RM inflation to largely offset negative operating leverage.CICI SecuritiesThis brokerage pegs YoY revenue growth at 21% to Rs 10,798.50 crore while down by 11% on the QoQ basis. The adjusted PAT is estimated at Rs 1,783.50 crore, up by Rs 24% YoY and down by Rs 13% QoQ. ICICI has estimated 2,101.60 crore, higher by 22% YoY and down by 14% QoQ. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

In an unprecedented meteorological occurrence, the United Arab Emirates (UAE) has witnessed an extraordinary deluge, marking the most substantial rainfall recorded within 24 the hours until 9 pm on Tuesday. This surpasses any documented precipitation event since the inception of data collection in 1949, affecting various regions across the nation, according to UAE Centre of Meteorology. One person was reported to be dead due to the unprecedented rains in the UAE.What is causing the rains?Dubai is grappling with severe flooding, as the amount of rain received in a single day equals what typically falls over the span of 1.5 years, according to climate scientist Colin McCarthy. Approximately 5 inches (127 mm) of rainfall inundated the area within a 24-hour period, he said. The climate scientist the heavy rains in the region to multiple rounds of intense thunderstorms forming off the warm waters of the Persian Gulf. Climatologist Friederike Otto said the extreme rainfall in UAE and other regions was likely that global warming played a part.Read More: Dubai Floods: Flights Disrupts as Airport Terminals and Runways got Waterlogged"It is highly likely that the deadly and destructive rain in Oman and Dubai was made heavier by human-caused climate change," said Otto told AFP. 109361716 Remarkably, the highest rainfall was registered in the "Khatm Al Shakla" locality in Al Ain, reaching an astonishing 254 mm in less than 24 hours. This substantial downpour represents a significant event in the UAE's meteorological history, contributing to an elevation in the country's annual rainfall average and bolstering its groundwater reservoirs.In response to the adverse weather conditions, the Ajman Department of Human Resources has declared the continuation of remote work for government employees on Wednesday, April 17, acknowledging the ongoing inclement weather.Dubai airport shut temporarilyEtihad Airways has issued a statement cautioning passengers about potential delays in flights due to the heavy rains affecting Abu Dhabi on April 17. Additionally, operations at Dubai International Airport were briefly suspended for 25 minutes on Tuesday due to an intense storm, with subsequent resumption reported by the airport authorities.Also read: Dubai Airport disrupts flights amid heavy rains and flooding in UAE“Guests are advised to regularly check etihad.com for the latest information about their flight departure and allow plenty of time to travel to the airport," added the statement.— anandmahindra (@anandmahindra) "Etihad will be working closely with guests affected by any disruption to assist them with changes to their itineraries and to reach their final destination .The safety and comfort of our guests and crew is our number one priority and we regret any inconvenience caused.”Dubai, renowned as the Middle East's financial hub, encountered significant disruptions as the torrential rain led to widespread flooding not only in the city but also across the UAE and Bahrain. The adverse weather conditions, which claimed 18 lives in Oman, prompted the suspension of numerous flights and caused logistical challenges, including flooded access roads to Dubai Airport.Many regions in the emirate had already announced online schooling for Tuesday and Wednesday.

Despite several measures, including various incentives to farmers, India is still dependent on imports of pulses for its domestic requirements.Pulses imports have almost doubled in 2023-24 to USD 3.74 billion.However, the official figure is yet to be disclosed, and estimates suggest shipments have crossed 45 lakh tonnes in the just-concluded financial year 2023-24 as against 24.5 lakh tonnes a year ago.Government sources said that to meet domestic demand and keep prices in check, government is negotiating with new markets like Brazil and Argentina for long-term contracts for pulses imports.Over 20,000 tonnes of urad will be imported from Brazil and negotiations are almost at the final stage to import arhar from Argentina.The government has also contracted with Mozambique, Tanzania, and Myanmar to import pulses.The surge in imports in recent months is to boost domestic supply and keep prices in check.Earlier, the government has allowed duty-free imports of yellow peas till June of this year and duty-free import of arhar and urad till March 31, 2025.Inflation on pulses is a major concern for the government when the election process is underway. Recent figure suggests pulses inflation at 17 per cent in March and 19 per cent in February this year.To keep prices in check, the government has imposed stock limits on pulses on Monday, April 15, and asked states to be vigilant against hoardings.But the concern is that despite various incentives by government, like guaranteed purchase and higher MSP, domestic production of pulses has declined in last 2-3 years. Agriculture ministry estimates suggest pulses production in 2023-24 will be at 234 lakh tonnes.Last year, the production was 261 lakh tonnes.In 2019-20, domestic pulses production was 230.25 lakh tonnes, but after various incentives from the government in 2020-21, production rose to 254.63 lakh tonnes, in 2021-22 it further rose to 273.02 lakh tonnes but in 2022-23, it declined to 260.58 lakh tonnes.Kharif Production this year (FY24) is expected to come down from 76.21 lakh tonnes to 71.18 lakh tonnes, Urad Production is expected to come down from 17.68 lakh tonne to 15.15 lakh tonnes, whereas Moong Production is expected to come down from 17.18 lakh tonnes to 14.05 lakh tonnes.Experts say the decline in domestic output is also because of erratic climate conditions in key producing regions.But the concern is also that, after seeing an uptrend, the pulses sowing area has also reduced in the last 3-4 years, from 307.31 lakh hectares in 2021-22 to 257.85 lakh hectares in 2023-24. In two years, sowing area reduced by 16 per cent and production by almost 14 per cent.The Reserve Bank of India has also highlighted that food price pressures are posing challenges in bringing inflation down to the target of 4 per cent, and the price of pulses is playing an important role in inflation numbers.India is a large consumer and grower of pulses and it meets a portion of its consumption needs through imports. India primarily consumes chana, masur, urad, kabuli chana, and tur.

Debt-ridden telco Vodafone Idea (VI), which has been plagued by losses and subscriber erosion, is coming up with a follow-on public offer (FPO) on April 18.The Rs 18,000 crore share sale is expected to attract some marquee investors including GQG Partners, Morgan Stanley Investment Management, AustralianSuper, Fidelity among others.Bloomberg reported that GQG will place bids for equity worth at least $300 million and as much as $400 million, which might come as a shot in the arm for the telco.Despite the backing of big funds, analysts are quite cautious about retail investors putting their money into the FPO, the largest on D-Street so far.Even though the offer might be a step in the right direction and alleviate some of the company's concerns, one cannot be sure on how long it will take for the company to show some profitability and reduce debt significantly. The telco hasn’t reported an annual profit since 2016.Analysts further said given the size of the FPO, investors are selling shares in the secondary market and planning to apply in the primary market."The FPO will bring big funds and it will get oversubscribed. But, investors must not expect major listing gains and avoid taking a blind call. Its a loss making company and cant see them being profitable in the next 12-18 months," said Avinash Gorakshakar of Profitmart Securities.VI is the third largest telco in India based on subscriber base. The company is raising funds for capex purposes of increasing its network infrastructure by expanding the capacity of the existing 4G sites and setting up new 4G and 5G infrastructure as well.The company said it expects to roll out 5G services in select pockets in 6-9 months of the issue. The 5G rollout will cover 40% of the company's overall revenue base in the next 24-30 months.VI has not been able to roll out 5G services because of lack of funds. It can be noted that both its rivals Bharti Airtel and Reliance Jio -- to whom it has ceded market share -- have been active on 5G for some months now."India’s ARPU ($2.1 per month) is the lowest amongst the major economies, an increase in the cost of data plans by the telecom industries indicates a higher scope for ARPU improvement to generate a reasonable return on investment. Improving teledensity will also help the company’s growth in the future," said SBI Securities.While the fund-raise should improve the company's near-term fortunes, analysts don’t expect the company to gain any meaningful market share from peers and remain concerned about potential large equity dilution."Potentially, the government could own an 80%+ stake in Vi on a fully diluted basis in the worst case, which would limit any meaningful upside for Vi’s minority investors," said Kotak Institutional Equities.However, the issue should help bridge the network coverage gap and improve competitiveness versus peers.The company has set a price band of Rs 10-11 per equity share.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)