RBI Releases List of Upper Layer NBFCs for FY25; Includes Tata Capital, Bajaj Finance

The RBI has published its list of upper-layer NBFCs for FY25, which includes major firms like Tata Capital, Bajaj Finance, and LIC Housing. Piramal Enterprises is excluded due to ongoing restructuring.

Key Companies Included in the List

The list features 15 companies that are now categorised under the upper layer. Some of the prominent companies included in the list are:

These companies have been identified based on the RBI’s scoring methodology, which assesses factors such as size, financial strength, and market impact.

On October 22, 2021, the RBI introduced the Scale Based Regulation (SBR), a framework designed to classify NBFCs into four categories: base layer, middle layer, upper layer, and top layer.

After an NBFC is categorised as NBFC-UL, it will be required to adhere to stricter regulatory standards for a minimum of 5 years from its classification, even if it fails to meet the criteria in the following years.

Exclusion of Piramal Enterprises

Despite qualifying for identification as an NBFC-Upper Layer according to the RBI’s scoring criteria, Piramal Enterprises Limited has not been included in the list for FY25. This exclusion is due to an ongoing reorganization process within the business group.

Tata Sons Pvt Ltd’s Status

Tata Sons Pvt Ltd has been included in the list of NBFC-Upper Layer. However, the inclusion is subject to the outcome of its ongoing application for de-registration, which is currently under review by the RBI.

Share Price Performance

At 10:25 AM on the NSE, Bajaj Finance’s share price declined by 0.31% to ₹7,237.00, while LIC Housing Finance’s share price also saw a drop of 0.31%, trading at ₹564.70. Shriram Finance was down by 0.47%, at ₹544.25, whereas Piramal Enterprises rose by 1.16%, reaching ₹1,036.70.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HCL Tech Share Price in Focus; Trades Ex-Dividend Today, January 17, 2025

HCL Technologies shares remained in focus as the stock traded ex-dividend today, providing a combined payout of ₹18 per share. Investors must have bought before January 17, 2025, to qualify for the dividend.

Dividend Details

The ₹18 per share dividend includes a fourth interim dividend and a ₹6 per share special dividend to mark the company’s 25th anniversary of being publicly listed. Eligible shareholders will receive the payout on January 24.

Past Corporate Actions

HCL Technologies has a history of paying regular interim dividends to its shareholders. The company declared an interim dividend of ₹12 on September 17, 2024, with an ex-dividend date of October 22, 2024. Earlier in June 2024, no interim dividend was declared.

Other notable payouts include ₹18 on March 20, 2024, and ₹12 on December 15, 2023, with ex-dates falling in May 2024 and January 2024, respectively. The company also paid interim dividends of ₹12 in September 2023, ₹10 in June 2023, and ₹18 in March 2023. These regular payouts reflect the company’s commitment to rewarding its shareholders.

Q3 FY25 Financial Overview

HCL Technologies reported a solid performance in Q3 FY25, with a 5.08% year-on-year (YoY) increase in revenue, reaching ₹29,890 crore, and a 5.54% YoY rise in net profit to ₹4,591 crore.

Compared to the previous quarter, the company saw a 3.56% growth in revenue and an 8.41% increase in profit, demonstrating strong quarter-over-quarter performance.

Operating income rose by 8.56% sequentially and 3.14% YoY, while Earnings Per Share (EPS) for Q3 increased by 5.61% YoY, reaching ₹16.93.

Despite the growth in profits and revenues, HCL Technologies experienced a slight rise in selling, general, and administrative expenses, up by 0.32% compared to Q2 and 4.5% YoY. Additionally, depreciation and amortisation costs grew by 3.18% sequentially, though they decreased by 9.1% compared to the same quarter last year.

Share Price Performance

HCL Technologies share price traded 0.06% lower at ₹1,773.15 at 10:00 AM on the NSE. The stock opened at ₹1,773 down from ₹1,792.25 at its previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Reliance Industries Share Price Climbs 2% on Strong Q3 Results; Jio’s ARPU Shows 10% CAGR

Reliance Industries (RIL) share price rose 2.65% to ₹1,300 at 9:40 AM on the NSE, driven by strong Q3 results and a 10% CAGR in Jio’s ARPU over the past 5 years. The full impact of the July 2024 tariff hike is expected to materialise soon.

RIL Reports Growth in Net Profit for Q3

Reliance Industries posted a 7% year-on-year (YoY) increase in consolidated net profit, reaching ₹18,540 crore for Q3. The company’s total revenues also grew by 7% YoY to ₹2.43 lakh crore.

The company’s depreciation increased by 2% YoY to ₹13,181 crore, while finance costs saw a 7% rise YoY, mainly due to an increase in the debt balance. Despite this, net debt remained mostly unchanged, the company said in a press release on the stock exchange.

The positive results in the quarter were primarily driven by robust performance from the company’s key businesses: Jio, Retail, and Oil-to-Chemicals (O2C). Refining margins in O2C showed a strong recovery on a sequential basis.

Jio Platforms Shows Strong Growth

Jio Platforms, Reliance’s digital division, reported a 26% YoY increase in net profit to ₹6,861 crore. Revenues for the segment grew by 19% YoY, amounting to ₹38,750 crore. This growth was attributed to a partial impact of tariff hikes, increased home connections, and a boost in non-connectivity digital services.

EBITDA for Jio Platforms surged nearly 19% YoY to ₹16,585 crore. However, margins decreased slightly by 30 basis points to 50.1%. Average revenue per user (ARPU) increased to ₹203.3, slightly below analysts’ expectations.

Jio continued to lead the industry in customer engagement, with per capita data consumption at 32.3 GB per month, contributing to a 22% increase in total data traffic.

The company also reported a net subscriber addition of 3.3 million in Q3, and monthly churn moderated to 2%. The impact of the tariff hike from last year is expected to continue playing out over the coming quarters.

Reliance Retail Reports Strong Performance

Reliance Retail, the consumer-facing segment of the business, posted a 9% YoY revenue growth, reaching ₹90,333 crore in Q3. Sequential growth was even stronger, up by 18%, driven by improved customer engagement during the festive period, product launches, and promotions.

EBITDA for Reliance Retail rose by 10% YoY to ₹6,632 crore, and EBITDA margins improved by 20 basis points to 8.3%. Profit after tax (PAT) for the segment grew by 10% YoY to ₹3,458 crore.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Infosys Share Price in Focus; Reports 11.4% Profit Growth in Q3 FY25, Raises Revenue Forecast

Infosys share price traded 4.13% lower at ₹1,848.75 at 9:25 AM on the NSE, amid a broader market decline. The company saw an 11.4% rise in Q3 FY25 net profit to ₹6,806 crore, driven by increased discretionary spending in major markets according to the regulatory filing.

Revenue Growth and Guidance Update

Revenue for the quarter surged 7.6% YoY, reaching ₹41,764 crore, surpassing the previous year’s figure of ₹38,821 crore. Sequentially, revenue grew by 1.9% from ₹40,986 crore in Q2.

In constant currency terms, revenue grew 6.1% YoY and 1.7% QoQ. Based on this performance, Infosys revised its full-year revenue growth forecast to 4.5%-5%, up from the previous estimate of 3.75-4.5%.

While the overall outlook remains positive, Infosys expressed caution about certain segments like communications, manufacturing, and high-tech, which could face challenges in the upcoming quarters.

Positive Outlook and Business Segments

Infosys’ CEO, Salil Parekh, highlighted the improving discretionary spending, particularly in the US and Europe, as a key factor behind the strong performance.

The company experienced growth across several verticals, with financial services increasing by 6.1% year-on-year, manufacturing growing by 10.7%, and life sciences rising by 6.3%.

Parekh highlighted that the company’s unique approach to GenAI is opening up new opportunities. Infosys has developed four specialised language models for sectors including banking, IT operations, cybersecurity, and enterprise.

Steady Client Demand and Headcount Growth

The company reported a total contract value (TCV) of $2.5 billion, reflecting a steady demand from clients. Infosys also expanded its workforce, adding 5,591 employees in Q3, bringing its total headcount to 323,379.

Infosys Announces Hiring Plans

Infosys has revealed its hiring plans for FY26, with plans to recruit 20,000 freshers. The company also confirmed it is on track to hire 15,000 new campus recruits for FY25, as previously announced.

In Q3, Infosys increased its workforce by 5,591 employees, marking the second consecutive quarter of headcount growth. By the end of Q3 FY25, the company’s total headcount reached 323,379. However, employee attrition rose slightly to 13.7% in Q3, up from 12.9% in the previous quarter.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Stocks To Watch Today on January 17, 2025: Reliance Industries, Axis Bank, Infosys and More in Focus

On Thursday, January 16, 2025, the Indian benchmark indices Sensex gained by 318.74 points, or 0.42%, to close at 77,042.82, while the Nifty 50 surged by 98.60 points, or 0.42%, ending at 23,311.80. Check out a few stocks that might be in focus during the trading session on Friday.

  • Reliance Industries

Reliance Industries reported a 7.4% increase in its net profit for the December quarter, driven by a strong performance in its retail segment and growth in telecom earnings. For Q3 of FY25, the company posted a consolidated net profit of ₹18,540 crore (₹13.70 per share), compared to ₹17,265 crore (₹12.76 per share) during the same quarter last year. This also marked an increase from ₹16,563 crore in the preceding July-September quarter.

  • Axis Bank

Axis Bank, a private sector lender, reported a 4% increase in its standalone net profit, reaching ₹6,304 crore for the third quarter ending December 31, 2024. In comparison, the bank’s net profit for the same period in the previous year was ₹6,071 crore. The bank’s total income for the quarter rose to ₹36,926 crore, up from ₹33,516 crore in the corresponding quarter of the previous year, according to a regulatory filing.

  • Infosys

Infosys, India’s second-largest IT services company, reported an 11.46% increase in its net profit for the third quarter, driven by stronger demand. This surge in profits led the company to revise its annual sales projection upwards for the third time this fiscal year. For Q3 FY25, the company’s net profit stood at ₹6,806 crore, up from ₹6,106 crore in the same quarter last year, according to a statement. Revenue grew by 7.6%, reaching ₹41,764 crore.

  • BPCL

BPCL announced that it has secured a major loan agreement worth ₹31,802 crore with a consortium led by the State Bank of India. The funds will be used to finance the construction of a petrochemical complex and the expansion of its refinery capacity at Bina, Madhya Pradesh. The consortium includes several banks, such as Punjab National Bank, Union Bank of India, Canara Bank, Bank of India, and the Export-Import Bank of India.

  • Havells

Havells, a consumer electrical goods manufacturer, reported a 3% decline in its net profit, which stood at ₹278 crore for the third quarter ending December 31, 2024. This compares to ₹287 crore in the same quarter of the previous year. The company’s revenue from operations grew by 10.8%, reaching ₹4,889 crore, up from ₹4,414 crore in the corresponding period of the prior fiscal year.

  • AstraZeneca

AstraZeneca has been granted approval by the Central Drugs Standard Control Organisation (CDSCO) to import eculizumab concentrate, sold under the brand name Soliris. The approval, issued in Form CT-20, allows the company to sell and distribute the medication in India.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RBI Overhauls Deputy Governors’ Portfolios as Michael Patra’s Term Ends

After the completion of Michael Debabrata Patra’s term, RBI reshuffled the portfolios of its deputy governors. M Rajeshwar Rao now heads the monetary policy department, with other departments reassigned among the governors.

M Rajeshwar Rao Assumes Control of Monetary Policy 

The Reserve Bank of India has reorganised the responsibilities of its deputy governors following the end of Michael Debabrata Patra’s extended term. M Rajeshwar Rao, the senior-most deputy governor, now oversees the monetary policy department.

In addition, he has been assigned other significant departments, including the Department of Economic and Policy Research, the Department of Statistics and Information Management, and the International Department.

T Rabi Sankar, Swaminathan Take Over Additional Responsibilities

As part of the reshuffle, T Rabi Sankar will now handle 13 departments, including Currency Management, Information Technology, Financial Markets Operations, and Financial Markets Regulation.

Meanwhile, Swaminathan Janakiraman has been assigned responsibility for 9 departments, including Supervision, Deposit Insurance, and the Credit Guarantee Corporation.

Government Begins Search for New Deputy Governor

With Patra’s departure, the government has commenced the process of selecting a new deputy governor for the RBI. The decision will be made by the Financial Sector Regulatory Appointments Search Committee (FSRASC), which is chaired by the Cabinet Secretary and comprises other financial sector experts.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

RBI Takes Action With Daily VRR Auctions to Manage Liquidity

Starting January 16, 2025, the Reserve Bank of India will conduct daily Overnight Variable Rate Repo auctions to ease the liquidity deficit in the banking system. The first auction today was for ₹50,000 crore to address ongoing liquidity concerns.

Overview of RBI’s Daily VRR Auctions 

The Reserve Bank of India (RBI) has announced a significant move to alleviate the current liquidity strain in the banking system by conducting daily variable rate repo (VRR) auctions on all working days starting today. The initial auction was of ₹50,000 crore concluded today.

These daily VRR auctions will have a reversal on the next working day, except for Fridays when the reversal will occur on the following Monday or the next working day. The auction amount will vary based on RBI’s liquidity assessments.

RBI’s VRR Auction Results

The Reserve Bank of India (RBI) successfully conducted its first daily variable rate repo (VRR) auction today, with a notified amount of ₹50,000 crore. The auction received bids totalling ₹30,760 crore.

The cut-off rate for the auction was 6.51%, which also matched the weighted average rate, indicating a balanced demand and supply at this rate.

Liquidity Deficit Amid GST Outflows

This initiative comes as the banking system faces an increasing liquidity deficit, which stood at ₹2.09 trillion on January 13, 2025. The situation is expected to worsen due to upcoming goods and services tax (GST) outflows later in the month.

RBI’s Effort for Liquidity Stability

RBI’s decision to hold daily VRR auctions is designed to ensure the stability of liquidity conditions in the banking system. Eligible participants, including standalone primary dealers, will be allowed to take part. Market experts believe this daily infusion will help maintain liquidity and offer short-term relief, though further measures might be needed for sustainable liquidity management.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Voltas Completes Transfer of Investment in Weathermaker FZE to UMPPL

Voltas announced the completion of transferring its 100% investment in Weathermaker FZE to Universal MEP Projects Pte Limited (UMPPL), receiving ₹30 crore. The transfer maintains Voltas’ economic interest in the company.

Transfer of Investment Details

Voltas Limited has informed that, following the satisfaction of all conditions precedent and receipt of necessary approvals, it has completed the transfer of its direct investment in Weathermaker FZE – UAE to Universal MEP Projects Pte Limited (UMPPL) on January 15, 2025.

The consideration amount of ₹30 crore has been received by Voltas. Despite the transfer, the company’s economic interest in Weathermaker FZE remains unchanged, as it continues to be a wholly owned subsidiary of Voltas through UMPPL, which is a step-down wholly owned subsidiary.

Additionally, Voltas has confirmed that the transfer of its direct investment in Saudi Ensas Company for Engineering Services and Trading LLC to UMPPL is expected to be completed before March 31, 2025, or by a mutually agreed date.

Q2 FY25 Financial Highlights

Voltas shares fell by 2.58% to ₹1,724.75 after the company reported a 59.91% drop in consolidated net profit to ₹133.99 crore, alongside a 46.78% decline in revenue from operations to ₹2,619.11 crore in Q2 FY25 compared to Q1 FY25.

However, on a year-on-year basis, Voltas saw significant growth, with net profit soaring 265.29% and revenue from operations rising 14.23% for the September 2024 quarter.

Profit before tax (PBT) for Q2 FY25 was ₹205.43 crore, down 54.5% from the previous quarter but up 141.8% from the same period last year.

For the first half of FY25, Voltas reported a 182.11% increase in net profit to ₹468.22 crore, driven by a 33.39% growth in revenue from operations to ₹7,540.13 crore compared to H1 FY24.

The unitary cooling products business continued its strong performance with a 56% volume growth, maintaining its market leadership in both split and window air conditioners with a market share of 21% as of September 2024.

Share Price Performance

Volta’s share price traded 2.82% lower at ₹1,579.25 at 12:04 PM on the NSE. The stock opened at ₹1,633.25 higher than ₹1,625.15 at its previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Exide Industries Shares in Focus; Invests in EESL to Fund Lithium-Ion Battery Manufacturing

Exide Industries announced that it has invested ₹149.99 crore in its wholly owned subsidiary, Exide Energy Solutions Ltd. (EESL), to support a lithium-ion battery manufacturing project in Bengaluru.

Investment Details

Exide Industries Limited (EIL) has announced an investment of ₹149.99 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), via a rights issue on January 15, 2025.

This raises the total investment in EESL to ₹3,302.23 crore. The rights issue involved the allotment of 4,16,63,892 equity shares at ₹10 each, with a premium of ₹26 per share, the company said in a statement on the stock exchanges.

The funds raised will primarily support the establishment of a greenfield plant in Bengaluru for manufacturing and selling lithium-ion battery cells, modules, and packs for electric vehicles and stationary applications.

With this latest investment, Exide Industries’ stake in EESL remains at 100%. The transaction is at arm’s length and does not require any regulatory approvals.

About Exide Energy Solutions

EESL, incorporated on March 24, 2022, is focused on battery manufacturing for India’s electric vehicle sector. As of March 31, 2024, the company’s turnover stood at ₹239.14 crore, with a net loss of ₹149.45 crore for FY 2024.

Q2 FY25 Financial Highlights

Exide Industries reported its Q2 results for FY2024-25, showing mixed performance. The company’s revenue increased by 1.8% year-on-year, reaching ₹4,450 crore, and saw a modest 0.32% growth compared to the previous quarter.

However, profit after tax declined by 14.15% YoY, amounting to ₹231.28 crore. Operating income also saw a decline of 8.68% YoY, indicating pressure on margins.

The company’s earnings per share (EPS) fell by 13.92% to ₹2.72, further reflecting the challenges it faced. Rising Selling, General & Administrative (SG&A) expenses, which grew by 9.93% YoY, along with higher operating costs, contributed to the decrease in profitability.

Share Price Performance

Exide Industries share price traded 1.6% higher at ₹380.780 at 11:45 AM on the NSE. The stock opened at ₹388 higher than ₹382 at its previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Shalby Shares in Focus; Arm Receives US FDA Approval for Duraniom

Shalby announced that its step-down Subsidiary Advanced Technologies (SAT) Inc. secured U.S. Food and Drug Administration 510(k) Premarket Notification clearance for its Duraniom Primary Total Knee Replacement device, equipped with TiNbN coating.

FDA Approval Boosts Shalby’s Expansion

The clearance was based on safety and effectiveness data showing that the device is substantially equivalent to legally marketed predicate devices. This is a significant achievement for Shalby Ltd. as it expands its presence in the medical devices market.

Q2 FY25 Financial Highlights

The company’s net profit plunged 87.71% to ₹3.39 crore, despite a 12.42% rise in revenue from operations, which amounted to ₹267.53 crore for Q2 FY25 compared to Q2 FY24.

Profit before tax (PBT) rose 67.86% year-on-year (YoY) to ₹13.70 crore, although it showed a 54.95% decline quarter-on-quarter (QoQ). EBITDA also saw a YoY decline of 31.5%, reaching ₹39.8 crore.

Revenue from the healthcare services segment grew by 7.37% YoY to ₹239.78 crore, while revenue from the company’s implant manufacturing business surged by 89.48% YoY to ₹27.74 crore.

Shalby’s continued focus on expanding its product pipeline, enhancing operational efficiency, and reducing procurement costs is expected to further support its growth trajectory.

About Shalby

Shalby operates the largest chain of multi-specialty hospitals in Western and Central India and is known for its expertise in arthroplasty, having performed more than 145,000 joint replacements over the last 29 years. The company operates under three verticals: hospital business, Shalby Orthopedics Centre of Excellence (SOCE) franchise, and implant business.

Share Price Performance

Shalby share price traded 3.17% higher at ₹229.72 at 11:25 AM on the NSE. The stock opened at ₹227 higher than ₹226.66 at its previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.