What Social Responsibilities Should Companies Have? A New Approach
Having obligations to all stakeholders makes no sense. Neither does having no obligations. Here’s how to figure out where the balance is. Key Points
mintET analysis: Surging corporate profits to help ease Reserve Bank's inflation fight
Indian companies have lately boosted margins from the 2020 trough, but volumes have consistently trailed the exponential growth in operating profitability. India's corporate profits to gross domestic product (GDP) ratio, which had fallen to below 2.5% toward the end of the last decade on deteriorating bank assets and higher input costs, has since recovered to near 4%. That's still about a quarter below the levels seen before the 2008 global financial crisis. Key Points
Economic TimesQ2 Results: Stable earnings in FY24 but outlook remains cautious for FY25; Five key trends in Q2 earnings revealed
FY25E earnings at risk due to fading margin tailwinds. High valuations and slowing top line keep brokerage cautious. Overweight stance on FMCG, IT, autos, telecom, internet, and pharmaceuticals. Underweight call on BFSI, industrials, commodities, and durables. Key Points
mintRussian bank profits to drop in 2024 as high rates take toll - VTB CFO
Consecutive interest rate hikes have seriously damaged Russian banks' prospects, the financial head of Russia's No. 2 bank VTB (VTBR.MM) said on Thursday, anticipating a sharp drop in the sector's profits next year after a bumper 2023. Key Points
ReutersThis Country Won the Global Tax Game, and Is Swimming in Money
Ireland is creating a rainy-day fund from outsize profits from U.S. tech and pharma giants seeking to lower their tax bills. Key Points
mint
Apple’s $1-trillion rally to be tough to live up to in 2024
The stocks 50% rally this year — driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy — has also left it in expensive territory. Its priced at 29 times profits projected over the next year, nearly double its 10-year average valuation. Key Points
Economic TimesCorporate debt servicing improves despite higher interest cost
Despite a 60 basis point (0.60 percent) increase in policy rates between September 2022 and September 2023, corporate debt servicing, as measured by the interest coverage ratio (ICR), improved from 4.49 in September 2022 to 5.64 in September 2023. This suggests that higher lending rates have not negatively impacted the debt-servicing capacity of Indian firms. The interest coverage ratio is a measure of a firm's ability to service its debt. Key Points
Economic TimesChina industrial profits tumble 18% in April as demand sputters
Profits fell 20.6% in January-April from a year earlier, compared with a 21.4% decline in the first three months, according to data from the National Bureau of Statistics (NBS). Key Points
Economic TimesMan loses Rs 1.2 crore after investing online, says he thought that he was getting profits
A man was cheated of around Rs 1.2 crore when he was contacted by scammers online. He thought that his profits were getting added at an app. Key Points
India TodayRussian central bank sees banks' profits shrinking next year from record high
Russian banks' profits will reach record levels around 3.3 trillion roubles ($36 billion) this year, the central bank said on Thursday, before dropping off by about 1 trillion roubles in 2024 as high interest rates cool lending growth. Key Points
Reuters
A $46 billion rally shows Indian IT stocks' woes easing
Gains picked up after Asias biggest software services exporter Tata Consultancy Services Ltd. last week reported better-than-expected profits for the latest quarter. Its shares climbed, along with those of peers including Infosys Ltd., which is scheduled to report today. Key Points
Economic TimesRussia's VTB plays down impact of aborted mutiny on financial stability
Russia's No. 2 lender on Tuesday said it was on track to post record profits this year and played down the impact of the weekend's aborted mutiny by heavily armed mercenaries on its activities and the wider economy. Key Points
ReutersStocks of these 21 cos tumble over 20% in 1 year as profits slump for 4 straight quarters
At least 21 Indian companies with a market cap of over INR 5bn ($66m) saw their profits decline in each of the past four quarters and their stocks suffer negative returns in the last year, according to ET Markets. Five of the companies belong to the pharmaceutical sector, while three operate in specialty chemicals. Laxmi Organic Industries saw net profit fall by 37-66% YoY in the last four consecutive quarters, while Motilal Oswal Financial Services's profit fell 45% and 86% in the March and June quarters, respectively. Experts have recommended that investors focus on domestic sectors in the coming quarter while global growth remains lukewarm. Key Points
Economic TimesBajaj, TVS vroom to record profits in Q3
Bajaj Auto's revenue from operations grows 30% YoY to ₹12,114 crore in Q3FY24, with profits up 37% YoY to ₹2,042 crore and Ebitda margins at 20.1%. TVS Motor's revenue rises 26% YoY to ₹8,245 crore, with net profit up 68% to ₹593.35 crore. Key Points
mintIs the stock market closed for Diwali-Balipratipada on Tuesday?
The multi-commodity exchange will also be closed for the first half but will remain open for the evening session from 5:00 pm. Trade settlements will also be closed on Tuesday. The settlement holiday means that the commodity account balance of investors on November 14 will not include the credits from profits on trades or positions in commodity derivatives on November 13 and credits from exiting option positions on November 13. Key Points
Economic Times
HDFC Bank, ICICI Bank are screaming buys at current prices: Nischal Maheshwari
Nischal Maheshwari, CEO of Centrum Broking, recommends green-oriented companies like Tata Power and NTPC in the metals and coal sectors. He suggests focusing on pharma companies like Sun Pharma and the hospital sector for investment opportunities. We are are strongly betting on goal-oriented companies. The power equipment companies have run much ahead of its course. We would recommend taking profits in BHEL kind of companies. Key Points
Economic TimesShould one worry about OMC stocks as election nears? Sachin Shah answers
Today, 50% of power cable sales come from the export side. There is opportunity from the North America market and the Europe market because in the Europe market, renewable energy is a very big thing. They need to establish much more new transmission capacities for renewable power and in North America, they need to completely rebuild their infrastructure. There is probably annually a $20 billion opportunity. So, the business outlook is looking very strong. Key Points
Economic TimesNumber of Nifty200 cos with double-digit profit growth down sharply in 4 quarters; will they recover in FY
In Q1 2023, nearly half of the companies in the Nifty 200 index posted profit growth, despite a smaller number achieving a growth rate of over 25% than in the previous quarter. Russia's invasion of Ukraine and rising commodity prices, along with increasing interest rates and inflation, hit earnings through most of the first three quarters of FY23. However, commodity prices began to ease toward the end of the year, with many companies reporting solid sequential and year-on-year performance. Q2 2024 is expected to be less successful than FY23 due to macroeconomic headwinds impacting the tech sector Key Points
Economic TimesDollar slips on profit taking but upbeat outlook remains
By Saqib Iqbal Ahmed NEW YORK (Reuters) - The dollar slipped broadly on Friday as traders booked profits after recent gains but the U.S. currency remained well-placed for further advances, supported Key Points
ThePrintElon Musk sues ChatGPT-maker OpenAI, here’s why
Elon Musk has filed a lawsuit against OpenAI, accusing the company of deviating from its original mission and becoming a profit-driven venture for Microsoft. Musk claims that OpenAI is developing an AGI (Artificial General Intelligence) to maximize profits for Microsoft, instead of benefiting humanity. The lawsuit also highlights Microsoft's potential fortune from OpenAI's proprietary technology. Key Points
Times Of India
Russian banks made record $37 billion in profits in 2023
Russian banks recorded record profits of 3.3 trillion roubles ($36.96 billion) in 2023, rebounding from the sanctions-induced slump in 2022. The recov Key Points
Times Of IndiaChina's industrial profits extend gains as outlook improves
International Business News: profits at China's industrial firms extended gains for a third month in October, with a 2.7% YoY rise. This follows stronger-than-expected industrial Key Points
Times Of IndiaBrazil's StoneCo sees profit multiplying eightfold by 2027
Brazilian financial tech company StoneCo (STNE.O) plans to multiply net profits eightfold through the end of 2027 by accelerating the integration of its financial services and software operations, CEO Pedro Zinner said in an interview ahead of an investor event in New York on Wednesday. Key Points
ReutersIn run to safety, investors dump risk, mid & smallcap stocks
We are seeing a mean reversion phenomenon in the markets where the mid- and small-cap indices both peaked in October and are now experiencing a correction at a rate faster than the Nifty said Deepak Jasani, head of retail research at HDFC Securities. Investors display a sentiment of risk aversion and are not willing to wait longer, and hence are pulling out of the market booking profits wherever available or cutting losses. Key Points
Economic TimesThis is as good a bull market as it gets; there’s no threat to it: Dipan Mehta
The buoyant market conditions will continue, says Dipan Mehta, Director at Elixir Equities, and predicts a trend of vibrant IPOs, new listings and preferential issues. Mehta considers buybacks a way for managements to boost profits at a time when global macroeconomic trends may impact performance, but warns against investing in Tata Motors, one of the most volatile stocks on the Nifty 50, because of a break-even point for JLR that is too high, cash flow risk and difficulty with risk determination. Key Points
Economic Times
IT sector’s profit pie drops to 5-year low
The share has declined nearly 3 percentage points in the past year and is sharply down from 34% share in profits in the March 2020 quarter..The topline growth of the sector slowed to 12% from a year earlier from 26.5% in the March 2022 quarter Key Points
mintOil extends drop as US slowdown concerns eclipse stockpile draw
In Asia, meanwhile, gasoline markets are showing signs of weakness as profits from producing the fuel slump. Diesel is also lagging, with some refiners considering cuts to processing as margins decline. That’s weighing on prices of crude grades. Key Points
Financialexpress