Tata Motors records 12% decline in Q2 sales (01-10-2024)
During the quarter, total sales include domestic sales of 2,09,861 units, lower by 11%. Domestic passenger vehicle sales declined 6% to 129,930 units while domestic commercial vehicle sales declined 19% to 79,931 units.
Adani flagship’s $1.3 billion share sale said to start next week (01-10-2024)
Gautam Adani’s Adani Enterprises Ltd. plans a $1.3 billion share sale via a qualified institutional placement starting as early as Oct. 7. The move follows a short-seller’s 2023 allegations of fraud, which led to a significant stock drop. The share issue aims to signal investor confidence and revive expansion efforts.
All-India Consumer Price Index for industrial workers edges up 2.44% on year (01-10-2024)
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Auto Industry in India – We had a chequered Past, can we expect a bright future? (01-10-2024)
PM E-DRIVE scheme has been notified. Maximum allocation is towards electric two wheeler and electric buses. However, maximum subsidy on electric two wheelers has been reduced to just Rs.5,000 (from 2025-26). From around Rs.45,000 subsidy in FAME-I, the subsidy has been slashed by a whopping 90 per cent. Government feels electric two wheelers no longer require subsidy. This is the reason why subsidy has been slashed steeply. I feel till the charging infrastructure is not in place, EV adoption will continue to be slower.
Second point is that with reduced subsidy, the time to breakeven for an EV buyer will be longer. At present, it takes around 2 years to breakeven for an electric two wheeler buyer considering the higher cost he has paid for the vehicle. This will increase to 2.5 years. And with per unit electricity cost rising, this may even take longer time.
Balu Forge | Forging Ahead with Defense and Aerospace Ambitions Amid Capital Efficiency Concerns | (01-10-2024)
Can’t answer on behalf of company, but from going through all their concalls and meetings.
I can try to present their point of view about this is:
- This discrepancy in negative operating cash flow and positive net profit is due to changes in working capital, including inventory buildup, receivables, and other current assets/liabilities.
- The inventory buildup suggests that the company has been increasing stock levels, potentially to meet expected future demand or to fulfill contractual obligations.
- The company is expanding into defense and auto, which will require higher inventory levels to meet the production requirements and future contracts.
- The recent acquisition of the Mercedes-Benz machining unit and capacity expansion from 18,000 TPA to 32,000 TPA suggests a need for increased inventory to support a higher production level, which can temporarily increase working capital requirements.
Given the push into high-growth areas like defense and auto, and the company’s strategy of increasing production capacity, the increased inventory could be strategic — ensuring they can meet future orders without disruptions.
This type of strategic inventory buildup can lead to negative operating cash flows in the short term, but it may position the company well for future revenue generation.
Personal Note: I am swing trader, I entered aroud 320 ( right after break out ) and exited around 750 level.
I still find it’s fundamentals intact, and keeping tabs on it for future entry point, as long as the story is still intact.
SoftBank’s Masa Son Nears His Next Big A.I. Bet: OpenAI (01-10-2024)
The Japanese tech billionaire is poised to back the start-up, as part of his pledge to go on offense when it comes to investing in artificial intelligence.