FY 2021-22 | Business Upturn

Stock Market update: Adani Green Energy Ltd shares up by 4.52% post provisional update on Q3 earnings

Malvika Choudhary — Tue, 11 Jan 2022 08:46:28 +0000

Adani Green Energy Ltd shares hopped to 4.52 per cent at INR 1,504.00 apiece today at 2.27 IST on the NSE in Tuesday’s afternoon deals after the company issued a provisional operational update for the third quarter Q3. The company’s total operational capacity expanded by 84% year-on-year (YoY) to 5,410 MW

The standalone quarterly results of the company displayed that the company’s total income from operation was Rs 4,848 crores in September 2021 compared to Rs 1,446 crores in June 2021 on the other hand the consolidated data showed the total income of Sept 2021 at Rs 1,295 crore compared to Rs 997 crores in June 2021.

The company’s sale of energy expanded by 97% on yearly basis at 2,504 million units in Quater 3 financial year 22 as compared to 1,273 million units in Quater 3 financial year 21.

“By 2030, we expect to be the world’s largest renewable energy company without any caveat — and we have committed USD 70 billion over the next decade to make this happen. There is no other company that has yet made such a large bet on developing its sustainability infrastructure,” Adani had said.

Meanwhile, The Adani Group was backed by around 97% plant availability and the firm’s wind portfolio CUF reached 18.6% with 10 base points (bps) progress during the third quarter. Adani Green’s Solar portfolio CUF stood at 21.9% with a 110 bps gain backed by around 100% plant availability. The operational performance does not refer to the performance of 150 MW operational wind assets under acquisition from Inox, the company clarified.

Adani Green Energy Limited is an Indian renewable energy company headquartered in Ahmedabad, Gujarat. The flagship of the company is the Indian conglomerate Adani Group. The company operates the Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.

Stock Market update: Metal stocks Tata Steel, JSW trade in red as Jeffries downgrades rating

Malvika Choudhary — Tue, 11 Jan 2022 08:18:16 +0000

Jefferies Group LLC, an American transnational independent investment bank has downgraded TATA from Buy to Hold, and JSTL from Buy to UNPF and retained Buy on HNDL, it highlighted in its report released on January 10, 2022. The bank has diminished its sanguinity on Indian metals just after the commencement of the year 2022.

“We lower our optimism on Indian metals as we enter 2022. Weak macro and demand concerns in China are weighing on metal prices. Although easing policy could lift Chinese demand, we still find risk-reward much inferior to a year ago. We cut FY23 EPS for TATA/JSTL by 18%/26%, and are 23%/22% below the street. We downgrade TATA from Buy to Hold, and JSW from Buy to UNPF. We like Novelis’ downstream business, and prefer aluminium to steel; we retain Buy on HNDL,” the key takeaway of the report read.

The bank stated that after a powerful FY22E, they witness EPS dipping 44%/21% YoY for TATA/JSW in FY23. For HNDL, they have boosted FY23 EPS by 5%, and see a 5% YoY gain.

“We believe the backdrop for metals remains better than the last decade as decarbonization in China should limit exports. Global steel capacity utilization average ~76% over 2011-2020; JEF expects CY22-23 utilization to be at a decade-high 83-84%. However, unlike early-2021, the case for a big rally in metal prices is behind, and we find risk-reward for Indian steel stock far inferior to a year ago,” the report added.

Addressing the steel margins to contract sharply, the report highlighted that the coking coal, conversely, almost doubled in 2HCY21, pushing up costs. Indian HRC steel price has doubled from Jun-20 to Oct-21 but is down 12% since then to Rs 64K. It is speculated by the bank that the Indian steel margins have been at their highest in 1HFY22. And will fall snappily by FY23, albeit settle above documented levels. It is supposed that the FY23 steel price of Rs 58K (6% cut, 9% below spot) and coking coal price of $230/t (36% below spot). Aluminium rose ~60% Jan-Oct but is down 7% since then to $2,913; the bank has expanded its FY23 assumption from $2,500 to $2,600 (11% below spot).

Global entity prices rebounded through 2HCY20 and 1HCY21 as the strong post-Covid recovery in China, on the back of an assertive policy impulse, drove closer market credits. Chinese macro conditions plunged in 2HCY21 as the effect of stimulus withered and government focus shifted to environmental issues, deleveraging and redistribution of capital. The slowdown in the property sector added to the pressures
of an already waning thrift.

FDI inflows increases by 62% during the first four months of F.Y. 2021-22 as compared to the previous year

Keertiman Upadhyay — Wed, 22 Sep 2021 12:48:53 +0000

Policies & measures introduced by the Government for the advancement of FDI have shown a positive result as there is an increase in the FDI inflows into the country. India has also emerged as one of the most preferred investment destinations due to the ease of doing business.

In the first four months of F.Y. 2021-22, the total FDI inflow was $ 27.37 billion which is 62% higher as compared to the FDI of F.Y. 2020-21 which was $ 16.92 billion. The FDI equity inflow also grew by 112% in the F.Y. 2021-22.

Automobile Industry emerged on the top with a 23% share in the total FDI equity inflow during the first four months of F.Y. 2021-22 followed by an 18% share of Computer Software & Hardware and a 10% share of Services Sector respectively. Karnataka proved to be the best-performing state in the Automobile sector with 87% of FDI equity inflow during the first four months of F.Y. 2021-22.

The state of Karnataka also emerged as the top recipient state during the F.Y. 2021-22 till July with a 45% share of the total FDI equity inflows. Maharashtra and Delhi ranked 2nd & 3rd with the total FDI equity inflows of 23% & 12% respectively.