Q4 earnings season begins today, with TCS earnings

Top of the Morning

In this episode, find out about Godrej Group’s plan to launch its NBFC business, also find out about Vodafone Idea’s fund raising talk with Apollo Global For $1 bn

Business Term of the Day: Fixed income

The IT major is set to announce its earnings for the quarter ended March 2022 (Q4FY22) on Monday. TCS is expected to have clocked record improvement in operating margins, with some cross-currency headwinds. Analysts expect it to have witnessed a revenue growth of 11-16%, while profit is likely to have risen 8-9% year-on-year during the quarter.

The 124-year-old Godrej group is set to enter the non-bank lending business with its unit Godrej Finance Ltd. The $4.1 billion conglomerate is expected to make an official announcement on Monday. Godrej Finance has held a non-banking financial company (NBFC) licence since 1998, when it was known as Ensemble Holdings and Finance, but it has never been active in the lending space

Tata Steel: The National Company Law Tribunal has approved the resolution plan submitted by Tata Steel Mining, a wholly-owned subsidiary of Tata Steel, for the acquisition of Rohit Ferro-Tech.

Tata Motors: Hit by semiconductor shortage, sales of Jaguar Land Rover (JLR) fell 36% on year to 79,008 units in the fourth quarter of fiscal 2022. Jaguar sales for the period under review stood at 14,574 units, down 38 year-on-year, while Land Rover retail sales declined 36% to 64,434 units.

Vodafone Idea: Is in advanced talks with US private equity investor Apollo Global to raise as much as $1 billion by selling a mix of debt and equity. The discussions are at an advanced stage, with the long-awaited announcement likely later this month. Debt-laden Vodafone Idea has been seeking to raise funds from external investors for more than a year now but its mammoth government dues have been an impediment.

Bandhan Bank: Societe Generale has acquired 1.18% stake in the lender through open market transactions. These shares were bought at an average of ₹306.55 apiece. HDFC, the seller, offloading more than 4.96 crore equity shares, or 3.08% of total paid-up equity, in the bank at an average of ₹306.61 per share.

Reliance Capital: The debt resolution of Reliance Capital has slowed down after differences between lenders and the administrator over settling the finances of the company’s subsidiaries. A request for documenting the resolution plan has not been issued to some 50 companies that submitted expressions of interest in March for Reliance Capital.

IDBI Bank: RBI imposes monetary penalty of Rs 90 lakh for non-compliance with guidelines on fraud classification and reporting, strengthening the controls of payment ecosystem and cyber security framework. Moving on to markets

The key benchmark indices are likely to start Monday’s session with cuts amid weak global cues and the on-going Russia-Ukraine conflict. At 7:50 am, the SGX Nifty futures were quoting at 17,790 levels, hinting at an opening loss of 90-odd points for the Nifty50.

In the week, investors will continue to watch out for global developments around the geo-political situation and prices of key commodities. Back home, India Inc. will kickstart the Q4 earnings season with TCS to release its results after market hours. Moreover, crucial economic data will also be monitored this week. Consumer price index (CPI) reading for both India and the US will be released on Tuesday, while producer price index in the US will come the following day.

Business term of the day

Fixed income is a class of assets and securities that pay out a set level of cash flows to investors, typically in the form of fixed interest or dividends. At maturity for many fixed income securities, investors are repaid the principal amount they had invested in addition to the interest they have received. Government and corporate bonds are the most common types of fixed-income products.