Ramkrishna Forgings:

The company incorporated Ramkrishna Titagarh Rail Wheels Ltd. along with Titagarh Rail Systems Ltd. Ramkrishna Titagarh Rail has been incorporated to manufacture and supply forged wheels. Both companies will hold 50% stakes in Ramkrishna Titagarh Rail.

Inox Wind:

The wind energy solutions provider said its board members have approved the merger of Inox Wind Energy into the company. The merger is subject to various regulatory approvals and compliances. The appointed date for the amalgamation is set as July 1, 2023. As per the proposed amalgamation, Inox Wind will issue 158 equity shares for every 10 equity shares to shareholders of Inox Wind Energy, and also issue 158 share warrants with an issue price of Rs 54 each, to shareholders of Inox Wind Energy, for every 10 share warrants with an issue price of Rs 847 each held by them.

Zee Entertainment

Zee Entertainment Enterprises SEBI has barred the company’s Chief Executive Officer Punit Goenka and Essel Group Chairman Subhash Chandra from holding the position of a director or a key managerial position in a company’s board.

HFCL:

The digital network solutions provider has bagged an order worth Rs 80.92 crore from Delhi Metro Rail Corporation (DMRC). The company will set up a fibre optics transmission system (FOTS) for three priority corridors of Phase IV of Delhi Metro Rail Project. The order is expected to be executed within 156 weeks from the date of notice to proceed. Thereafter, the company has to provide warranty support for 104 weeks.

News Alert

India’s IIP growth in April rises to 4.2% from 1.7% in March. India’s CPI inflation in May falls to 4.25% from 4.70% in April India’s CPI inflation in May of 4.25% is below expectations of 4.4%. India’s CPI inflation in May is lowest in 25 months

INDIA CPI (YOY) (MAY) ACTUAL

4.25% VS 4.70% PREVIOUS; EST 4.31% INDIA INDUSTRIAL PRODUCTION (YOY) (APR) ACTUAL: 4.2% VS 1.1% PREVIOUS; EST 1.4% INDIA MANUFACTURING OUTPUT (MOM) (APR) ACTUAL: 4.9% VS 0.5% PREVIOUS; EST 1.6

Mahindra & Mahindra Financial Services

*Mahindra & Mahindra Financial Services (MMFS) has been scaling new highs for the past few months.* Its monthly operational update for May brings cheer with disbursements rising as much as 39.6% YoY and 9.9% QoQ to Rs 4,150 crore. Healthy loan disbursal and stable collections have led to a 3.3% YoY increase in its AUM to Rs 85,500 cr. May’23 disbursement volumes indicate robust demand. MMFS also said its stage-3 and stage-2 assets continued to remain range-bound in May compared with March. Its gross and net stage-3 assets stood at 4.5% and 1.9%, respectively in Q4FY23. Asset quality of its remaining range-bound during the seasonally slower 1Q is seen as a positive. As such, its asset quality metrics have shown a consistent improvement in the past few quarters. Gross and net stage-3 assets stood at 15.5% and 7.8% in Q1FY22, respectively (stage-3 assets are loans that are overdue for more than 90 days). Under the Vision 2025 plan, it has taken multiple initiatives to improve its asset quality metrics, including diversifying its product mix and its customer base by catering to an affluent rural and semi-urban customer segment. Under this plan, it intends to maintain its stage-3 assets below 6% in the coming years. With strong collection efficiency and improving asset quality, management expects credit costs to remain benign going forward. Some near-term risks loom. For one, how the monsoon pans out could have a significant impact on its disbursements. Impact of monsoon on growth and asset quality is a key monitorable. Also, the trend of NIM is another factor to monitor. Most expects the metric to compress ahead on account of the increase in cost of funds. However, management expects to maintain NIM at 7.5% in CFY aided by lending to high-yield segments such as pre-owned vehicles and tractors. In FY23, its NIM stood at 7.6%.