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Shares of State-run defence company Mazagon Dock Shipbuilders Ltd. reported its September quarter results on Tuesday, November 5, which saw a sharp increase year-on-year, across all parameters.

Net profit for the quarter increased by 76% year-on-year to ₹585 crore, while revenue grew by 51% from the year-ago period to ₹2,757 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased to ₹510 crore, from ₹176 crore during the same period last year.

EBITDA margin for the quarter more than doubled on a year-on-year basis to 18.5% from 9.6% in the September quarter last year.

On October 22, Mazagon Dock Shipbuilders had announced a 1:2 stock split, where one share of ₹10 will be split into two shares of ₹5 each.

Additionally, the company has also declared an interim dividend of ₹23.19 per equity share. Record date for the interim dividend has been fixed as October 30, 2024. The company had declared a final dividend of ₹12.11 per share for the financial year 2024 earlier this year.

Record date for the stock split will be announced after the company receives shareholder approval for the same through a postal ballot.

This is the first time in the company’s history that it had announced a stock split.

Mazagon Dock Shipbuilders shares saw a sharp surge post the results announcement and are currently trading 5.3% higher at ₹4,239. The stock has still corrected 28% from its peak of ₹5,860 in July.

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Billionaire Mukesh Ambani is planning an initial public offering (IPO) for his telecom business Jio in 2025, followed by another for Reliance Retail much later, news agency Reuters reported, citing unnamed sources.

This could potentially be India’s biggest IPO ever, overtaking Hyundai India’s record $3.3 billion IPO this year.

The company, valued by analysts at over $100 billion is launching the IPO as it believes it has achieved a stable business and revenue stream by becoming India’s top telecom player with 479 million subscribers, according to the report.

Though there has been no internal decision yet on its valuation, investment bank Jefferies in July this year had estimated its valuation to be $112 billion.

This development comes at a time when Reliance Jio is set to lock horns with Elon Musk’s Starlink internet service if it gets launched in India.

This also comes after Ambani had raised $25 billion collectively for his digital, telecom and retail businesses from investors like KKR, General Atlantic and Abu Dhabi Investment Authority.

Jio Platforms, the company that owns the telecom and digital businesses, is 33% owned by foreign investors after having raised $17.84 billion in the recent years, according to the report.

The IPO for Reliance Retail which runs India’s biggest grocery store network of 3,000 supermarkets, would come after 2025, according to the report which cited “operational issues” within the retail arm which Reliance wants to focus on fixing first.

Another reason is to not hit the market with two huge IPOs around the same time as well. Just by October this year, 270 companies had already raised $12.58 billion from IPOs in India this year, which is a huge jump from the $7.42 billion raised in the entirety of 2023.

The operational issues with Reliance Retail was attributed to the fact that it grew “too fast,” now having also ventured to e-commerce for taking on Amazon and even quick commerce to make 10-minute deliveries.

This fast growth led some of its brick-and-mortar stores to make losses, with the company itself reporting a 1.1% decline in sales for the July-September quarter, according to the report which added that it was still valued at $112 billion by Bernstein last year.

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Larsen & Toubro has announced a strategic partnership with E2E Networks, an Indian Cloud and AI Cloud provider. The partnership is a significant step towards the adoption of GenAI solutions in India to foster a fundamental shift in the way Accelerated Computing on Cloud is used by Indian organisations. The transformative journey for organisations in AI adoption is a fundamentally different approach to implementing GenAI software solutions using Cloud GPUs to utilise an organisation’s deep learnings to deploy and evolve production-grade selfadapting AI Software. L&T will also acquire a 21% equity stake in E2E Networks through a combination of primary and secondary transactions.

Under this alliance, L&T will integrate E2E Networks’ Cloud and AI Cloud platform with its expertise in data center management and cloud solutions towards empowering startups, and enterprises. The collaboration aims to accelerate digital transformation for a diverse range of industries, fostering a technology-driven, sustainable future for India.

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Food delivery app Swiggy has been fined ₹35,000 for overcharging customers by artificially inflating delivery distance. According to report, Swiggy was ordered to pay ₹35,000, including punitive damages, to a Hyderabad man who complained against the company alleging unfair trade practices. The judgement was delivered by the District Consumer Disputes Redressal Commission in the Ranga Reddy district of Telangana.

Emmadi Suresh Babu, a resident of Hyderabad, filed a complaint against Swiggy in the consumer court. Babu claimed that he had purchased a Swiggy One membership which entitled him to free delivery within a specified distance.

However, when he ordered food from Swiggy on November 1, 2023, the platform increased the distance between his house and the restaurant from 9.7 km to 14 km. Swiggy then charged him ₹103 as delivery distance.

The court reviewed evidence submitted by Babu, including Google Maps screenshots, and concluded that Swiggy had artificially increased the delivery distance. Swiggy’s absence at the hearings led the court to proceed ex parte, the report further said.

The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana ordered Swiggy to refund 350.48 with 9% interest from the filing date which Babu had paid for his food order. The food delivery platform was also ordered to refund the ₹103 charged as delivery fee from the Hyderabad resident.

Additionally, Swiggy was ordered to pay ₹5,000 for mental distress and inconvenience, cover litigation costs for Babu with a further ₹5,000, and asked to stop increasing distance for Swiggy One members.

Besides this, Swiggy has to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The food delivery platform, one of India’s largest, has 45 days to comply with the order.

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Foreign portfolio investors (FPIs) sold stocks worth Rs 94,017 crore in India through October, suppressing the stock market’s overall performance. In the process, they became net sellers in India, after having remained buyers for four months.

Important to mention is that the total stocks they sold in India in October were the highest-ever in a month’s time, National Securities Depository Limited data showed.

In June, July, August, and September, they bought stocks worth Rs 26,565 crore, Rs 32,365 crore, Rs 7,320 crore, and Rs 57,724 crore, respectively.

FPIs had supported the bull run in the stock market recently when they made headlines for indices having hit multiple highs. As per definition, Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets.

Benchmark Sensex has fallen from its all-time high of 85,978 points, to now trading at 79,724 points. The recent sessions have been bearish for the indices, largely attributable to fund outflows and lower-than-expected Q2 earnings of India Inc.

“This relentless selling contributed hugely to the about 8 per cent decline in benchmark indices from the peak,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On Friday evening’s Muhurat special session, Sensex closed 0.4 per cent higher at 79,688 points, while Nifty closed 0.4 per cent to end at 24,300 points, rebounding from two days of losses. All sectoral indices opened in green and continued upward during the Muhurat Trading hour, with only Nifty IT closing marginally lower by 0.02 per cent.

“FII selling might continue, impacting the benchmark indices. In such a scenario, investors should focus on stock-specific investment where Q2 results have been good and earnings visibility is bright,” VK Vijayakumar added.

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