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Marico Q2 PAT rises 20% YoY to Rs 423 cr (29-10-2024)
The FMCG major reported 19.83% increase in consolidated net profit to Rs 423 crore in Q2 FY25 as compared with Rs 353 crore posted in Q2 FY24.
Maximum Retail Price of three Anti-cancer Drugs to come down on account of exemption from Custom duty and Reduction in GST (29-10-2024)
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Gold rises Rs 300 to Rs 81,400 per 10 grams on Dhanteras (29-10-2024)
Gold price rose by Rs 300 to Rs 81,400 per 10 grams, near its record high level, in the national capital on Tuesday due to heavy demand for Dhanteras by jewellers and retailers, according to the All India Sarafa Association.
Gold demand strong as import duty cut boosts Dhanteras buying: MMTC-PAMP (29-10-2024)
The gold demand in the country has strengthened during the key festival of Dhanteras, buoyed by a recent reduction in import duties and traditional buying patterns, a senior MMTC-PAMP official said on Tuesday.
“The market sentiment for gold remains robust this Dhanteras season, with sustained demand for our pure gold products,” MMTC-PAMP Managing Director and CEO Vikas Singh told PTI.
The reduction in import duty from 15 per cent to 6 per cent has amplified festival season purchases, with consumers showing a strong preference for high-purity gold products, he said.
“Customer preference for quality and purity continues to be a key driver in purchase decisions, particularly for our 24K gold products with 99.99 per cent + purity,” Singh added.
The positive momentum is expected to continue into the upcoming wedding season, which traditionally accounts for approximately half of India’s annual gold consumption, Singh said.
He noted that beyond seasonal factors, gold demand benefits from
Aditya Birla Fashion and Retail Ltd (29-10-2024)
Let’s explore Aditya Birla Fashion and Retail Ltd.’s diverse business areas, strengths, and areas of concern.
Business area of the company:
ABFRL is a prominent player in the Indian retail industry, known for its wide-ranging portfolio of brands. Let’s take a closer look at ABFRL:
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Lifestyle Brands: It houses some of India’s most iconic names: Louis Philippe, Van Heusen, Allen Solly, and Peter England. These brands are market leaders within their respective segments. Their signature styles, high-quality products, and differentiated in-store experiences have earned them immense customer loyalty and recall.
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Pantaloons: Pantaloons, India’s favorite fast fashion destination, caters to the modern Indian’s apparel and lifestyle needs. It offers a variety of house labels and national brands, spanning casual wear, ethnic wear, formal wear, party wear, activewear and Non-apparel.
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Fast Fashion: In July 2016, ABFRL secured exclusive rights to the India network of California-based fast fashion brand, Forever 21. This partnership marked a significant milestone for ABFRL, positioning it as the largest integrated branded fashion player in India. The popularity of fast fashion among the country’s young demographics further fueled this achievement.
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Notable brands in their portfolio include:
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Van Heusen Innerwear: Offering comfort and style in innerwear.
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Jaypore: Celebrating Indian decadence.
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Shantanu & Nikhil: Representing modern grandeur.
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Simon Carter: Part of their international business.
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The Collective: India’s largest international multi-brand retailer.
(Image Source: Finology Ticker)
Using Finology’s Ticker platform we found some concerns in ABFRL’s business:
- Sales vs. Profitability: ABFRL seems to have shifted its focus toward sales growth, but at the cost of profitability. The graph shows increasing sales over the last 5 years, but profitability has taken a hit, resulting in losses in the past 3 years.
As investors, we need to closely monitor this trend. While growth is essential, sustainable profitability matters equally.
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Interest Coverage Ratio (ICR): Despite having a debt-to-equity ratio below 1, ABFRL’s ICR is weak. An ICR below 1 indicates that the company’s earnings aren’t sufficient to cover its interest payments. This can be concerning.
Although ABFRL benefits from strong parentage, we should still pay attention to this observation. Remember the cautionary tale of Vi (Vodafone Idea) and its debt struggles. -
Du Pont Analysis: The drivers of ROE—profit margin, asset turnover, and leverage – reveal interesting insights:
- Profit Margin: Net margins have been poor over the last 5 years.
- Asset Turnover: A declining trend suggests inefficient asset utilization.
- Leverage: Indicates a debt burden on the company.
(Image Source: Finology Ticker)
Marico Q2 Results: Net profit rises 20% to Rs 433 crore (29-10-2024)
Homegrown FMCG major Marico Ltd on Tuesday reported an increase of 20.27 per cent in consolidated net profit to Rs 433 crore for the September quarter. It had posted a net profit of Rs 360 crore in the July-September quarter a year ago, Marico said in a regulatory filing.
Broker’s call: Nuvama Wealth (Buy) (29-10-2024)
Centrum Broking
Northern Arc Capital Q2 Results: Profit rises 24% to Rs 98 crore (29-10-2024)
NBFC firm Northern Arc Capital, which listed on the bourses last month, reported a 24 per cent increase in consolidated net profit to Rs 96 crore for the second quarter ended September 2024. The lender had earned a net profit of Rs 79 crore in the same quarter in the previous financial year.
Paushak Ltd. – Alembic’s agrochemical business (29-10-2024)
CWIP has really jumped , any idea why. Its nearly 85 Crs now
