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Zee Entertainment Enterprises (ZEEL) on Friday reported a net profit of Rs 209.4 crore in the second quarter of the financial year (Q2 FY25), rising 70.2 per cent year-on-year (Y-o-Y) after it cut costs.

The Mumbai-headquartered company’s revenue dropped by almost 18 per cent to Rs 2,000.7 crore compared to Rs 2,437.8 crore in the same quarter last year.

“Domestic advertising revenue for the quarter declined by 9 per cent Y-o-Y, impacted by a muted advertising spending environment in Q2,” said ZEEL in its earnings presentation. “While ad spending is picking up with the onset of the festive season, sustained recovery remains the key.”

The entertainment major’s profit before depreciation, interest and taxes was down 16.8 per cent Y-o-Y to Rs 109.1 crore. It said that a decline in operating cost was driven by lower programming and technology costs.

ZEEL’s other income slumped by 53 per cent to Rs 33.7 crore Y-o-Y. On a sequential basis, other income increased by 77.4 per cent.

“Other sales and services declined Y-o-Y as Q2 FY24 had higher theatrical revenue from Gadar 2 and other syndication,” said the company, referring to the Bollywood movie.

Subscription revenue has grown more than 9 per cent Y-o-Y in the last three quarters, according to the earnings presentation. Revenue from Zee5, the company’s online streaming platform, stood at Rs 236.6 crore in Q2 FY25 during which it released 16 shows and movies, including five originals.

“Significant progress has been made towards achieving a balanced cost structure, to sustain long-term growth in ZEE5,” said the company. ZEEL had earlier announced it is trimming its workforce to save costs.

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Byju Raveendran, the founder of the embattled edtech group Byju’s, acknowledged on Thursday afternoon that he made mistakes, mistimed the market, overestimated growth potential, and that his startup, once valued at $22 billion, is now effectively worth “zero.”

Speaking to a group of journalists, Raveendran said the company’s aggressive acquisition of more than two dozen startups to expand into new markets proved fatal when financing dried up in 2022. Byju’s was planning to go public in early 2022 with several investment bankers giving the firm valuation as high as $50 billion.

He alleged that many of his more than 100 investors had urged him to pursue aggressive expansion into as many as 40 markets. But, he added, those very investors got cold feet when global markets tumbled following Russia’s invasion of Ukraine, sending the venture capital market into a downward spiral.

Raveendran said many of his investors “ran away,” and the departure of three key backers — Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative — from the company’s board last year made it impossible for the startup to raise additional funds.

Representatives of the aforementioned three firms as well as auditor Deloitte left the startup’s board last year, citing governance issues.

Byju’s has since entered insolvency proceedings, and Raveendran, who no longer controls the company, said: “It’s worth zero. What valuation are you talking about? It’s worth zero.”

Byju’s, once India’s most valuable startup, counts BlackRock, UBS, Lightspeed, QIA, Bond, Silver Lake, Sofina, Verlinvest, Tencent, Canada Pension Plan Investment Board, General Atlantic, Tiger Global, Owl Ventures, and World Bank’s IFC among its backers. It has raised more than $5 billion to date.

Raveendran said he remains hopeful that his startup will make a comeback. “I have nothing to lose. I came from a small village. I invested everything I had into the startup.”

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The World Bank along with the Asian Development Bank in principle has committed to fund $1600 million (Rs 13,600 crore) for Amaravati capital city phase-I development and will start releasing the amount from January next year, a senior official of the Andhra Pradesh government has said.

Of the total cost of Rs 15,000 crore for the phase-I development, the Central government will be funding the remaining Rs 1,400 crore, the official said, adding the total amount from the World Bank should be drawn within five years.

The International Bank for Reconstruction and Development (IBRD), part of the World Bank, which provides loans and guarantees, among others and ADB will be funding $800 million (Rs 6,800 crore) each for the project.

The repayment of the WB and ADB loans will be taken care of by the Centre, the official said.

“The project is being funded jointly by the World Bank and Asian Development Bank. The funds will be released starting from January 30, 2025 or it can happen even before that also. The amount should be utilised before five years otherwise it would lapse,” the official on condition of anonymity told PTI.

The bureaucrat further said the funding for phase-II depends on how fast the state government would be able to complete the first phase and that the World Bank may come forward for the second phase as well.

Andhra Pradesh Chief Minister N Chandrababu Naidu recently said the WB has agreed to extend Rs 15,000 crore for Amaravati Phase-I development and that work will start from December.

The voluntary LPS (Land Pooling System) pooled 34,390 acres of farmland when Naidu was in power between 2014 and 2019, in exchange for serviced residential and commercial plots and other safety net benefits, for the construction of Amaravati capital.

Keeping the greenfield city project on the backburner, the previous YSR Congress government came up with a three-capital concept which did not cut ice with the people.

After Naidu took over the reins of power in Andhra Pradesh, the capital city project was rejuvenated with the Centre’s assurance of helping to get loans from multilateral agencies.

According to a WB document, the Department of Economic Affairs at the Centre is the borrower, while the Andhra Pradesh Capital Regional Development Authority is the implementing agency.

Support from the WB and ADB will not only help fill financial gaps in the initial development of the Amaravati Capital City (ACC), but also offer global expertise and technical support to help Andhra Pradesh government in diverse areas such as urban planning and regulations, municipal governance and finance and infrastructure design and delivery, among others in an integrated and holistic manner, the WB project document said.

The World Bank was initially engaged with the ACC project from 2016 but then it did not materialise. The new WB reengagement on Amaravati draws on the lessons of the previous engagement and the ground situation surrounding ACC development, it further said.

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Shares of Motilal Oswal Financial Services (MOFSL) hit a new high of Rs 1,063.40, soaring 14 per cent on the BSE in Friday’s intra-day trade amid heavy volumes on expectations of healthy earnings. The market price of this stock broking & allied services company has doubled or zoomed 109 per cent in less than three months from a level of Rs 508.65 on July 23, 2024. Thus far in the calendar year 2024, it has skyrocketed 238 per cent, as against 12.5 per cent rise in the BSE Sensex.

A sharp rally in the stock price of the company has seen market capitalisation (market-cap) of MOFSL cross Rs 62,000 crore for first-ever time.

At 02:38 pm; with Rs 62,392 crore market cap MOFSL was quoting 12 per cent higher at Rs 1,039.50 on the BSE. In comparison, the benchmark index was up 0.36 per cent at 81,298. The average trading volumes at the counter jumped four-fold, with a combined 14.14 million equity shares changing hands on the NSE and BSE.

MOFSL is a diversified financial services company with focus on managing client’s wealth. MOFSL operates in business segments like capital markets, assets & private wealth management and affordable housing finance. In each of the businesses, MOFSL offers a unique value proposition to its customers, creates its niche in each of the business segments and commands a premium position over peers. MOFSL carries its lending business by running a loan-against-shares book under Motilal Oswal Finvest Limited and retail mortgage-backed lending in the affordable housing segment under Motilal Oswal Home Finance Limited.

MOFSL has been benefitting from the tailwinds in the capital markets space, evident from earnings before interest, taxes, depreciation, and amortisation (EBITDA) ex-treasury income rising from Rs 260 crore in Q1FY23 to Rs 320 crore in Q1FY24 and Rs 480 crore in Q1FY25. This is well backed by better execution, demonstrated by the 320bps/ 250bps year-on-year (YoY) improvement in cash/ option market share, 36 per cent YoY increase in broking lending book, 37.2 per cent YoY increase in wealth management relationship manager count, 21bps/ 20bps increase in equity/SIP market share in asset management company (AMC) and 9.3 per cent increase in housing finance company (HFC) Loan book with 20bps improvement in RoA over the last two years (FY22-FY24).

With a total client base of around 7.3 million at end June 2024 quarter (Q1FY25), the Motilal Oswal Group caters to both retail and institutional clients through over 2,500 business locations, taking the pan-India pin code coverage to 98.0 per cent. As of June 2024, about 89 per cent of MOFSL Group customers had only a single product relationship, indicating potential cross-sale opportunity over the long term with expected financialisation of savings. The Securities and Exchange Board of India also defines MOFSL as a QSB (qualified stock brokers) in India, by virtue of their size and scale of operations, and its impact on investors and securities market.

As per management, investors today are more informed and seek more than just transactional services. Investors now demand personalised investment advice that considers their long-term financial goals.
This shift in investor and consumer behaviour signifies MOSL’s move towards deeper engagement in financial planning, which includes diverse asset classes and effective risk management. The transition to wealth management is not just a change in nomenclature, but a strategic evolution for the company, analysts at ICICI Securities had said in the Q1 result update.

Meanwhile, over FY20-FY24, MOFSL Group delivered 33 per cent compounded annual growth rate (CAGR) growth in operating profit (excluding treasury investments PAT), driven by the wealth management (39 per cent CAGR), capital markets (39 per cent CAGR), asset & private wealth (25 per cent CAGR) and housing finance (35 per cent CAGR) businesses.

With an increasing retail participation in the past three years across discount brokerages, there could be a gradual migration of clients towards full-service providers, benefitting the MOFSL Group due to evolving regulations for discount brokers.
Given volatility in the financial market business, such as private wealth, asset management and wealth management, its volume could see a certain moderation. However, the benefit of a widening of participation in the equity markets would stand to accrue on a recurring basis and operating leverage benefits of an established franchise would continue to play out for MOFSL, India Ratings and Research (Ind-Ra) said in its rationale update dated September 17, 2024.

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Rail Vikas Nigam Ltd (RVNL) shares are in the sportlight as the PSU emerged as the lowest bidder for a Rs 270 crore Maharashtra Metro Rail project involving the construction of 10 elevated stations.

Shares of Rail Vikas Nigam Ltd (RVNL) jumped around 4 percent on October 17 as the public sector firm emerged as the lowest bidder for a project worth Rs 270 crore from Maharashtra Metro Rail Corporation.

The project involves the construction of 10 elevated metro stations and is to be executed within 30 months from the date of contract award.

The project includes the construction of seven elevated metro stations in Reach 3A namely Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur Hingna Bus Station and Hingna. Three elevated stations will also be constructed in Reach 4A at Pardi, Kapsi Khurd, and Transport Nagar.

Earlier this month, RVNL emerged as the lowest bidder for an East Coast Railway project for the third and fourth line between Jarapada & Talcher Road and the construction of a new line between Angul-Balram, which is part of the MCRL Internal Corridor Phase-I doubling project.

The scope of the order involves the execution of balance earthwork in formation, minor bridges, major bridges, P.way linking works, supply of ballast, S&T buildings, level crossings and other miscellaneous works between Jarapada and Talcher road.

This excludes the station yards in connection with the third and the fourth line of the Jarapada-Budhapank project and between Angul and Balram, including yards of MRCL Inner corridor Phase-I doubling.

Shares of RVNL closed nearly a percent higher at Rs 478.45 on the National Stock Exchange (NSE) in the previous session. The stock has risen around 162 percent so far this year, significantly outperforming Nifty’s returns of 14.8 percent.

In the last one year, the counter has risen around 180 percent, more than doubling investors’ capital, compared to Nifty’s gain of 26 percent during this period.

RVNL stock was among mutual funds’ top stock picks for September as it saw MFs buying around 28 lakh shares. Foreign institutional investors were net buyers of RVNL shares during the July-September quarter.

According to the latest shareholding data, FIIs own a 5.05 percent stake or 10.52 crore shares of the railway infrastructure company as of September 30. This is an increase from the 3.13 percent stake or 6.52 crore shares they held at the end of June.

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