Daily Research Report || April. 27, 2023

The government paid incentives totaling Rs 2,874 crore to PLI beneficiaries up until March across eight sectors, including drone manufacturing, information technology hardware, pharmaceuticals, bulk drugs, and telecommunications (telecom). Claims under the production-linked incentive (PLI) scheme totaled Rs 3,420 crore in 2022–23 (FY23). This equates to 1.4% of the $1.97 trillion that has been set aside for the programme over a five-year period. Over the following two to three years, the incentive payout is expected to reach its pinnacle.

The introduction of 200 small-scale compressed biogas (CBG) projects, state-led development, increased commercial selling rates, and a number of different policy initiatives, according to the government, can still support a crucial national plan to increase CBG production in India. At a recent conference in Delhi with industry stakeholders, the Ministry of Petroleum and Natural Gas (MoPNG) stated that it will not change its goal of building 5,000 commercial CBG plants by 2024–2025 as part of the Sustainable Alternative Towards Affordable Transport (SATAT) programme.

The Commerce Department is seeking to change several regulations under the current Special Economic Zone (SEZ) statute to permit use of vacant premises in IT/ITES for non-SEZ uses while the fate of the Development Enterprise and Services Hub (DESH) Bill is still up in the air. When the change is put into effect, it will enable for simpler escape by partially de-notifying specific floors or structures to free up land that is not in use.

In FY24, India's gross domestic product (GDP) growth will be 6%. In its monthly economic commentary, The Indian economy continues to show strength and stability even though the global macro economy is still dominated by contradictions and financial system instability concerns are becoming more prominent. Most lead indicators are resilient in the beginning of 2023, with incremental data from February 23 and March 23 performing better than January 23.

India's Voltas Ltd reported a 21.2% decline in fourth-quarter earnings as the manufacturer of air conditioners and refrigerators continued to be impacted by the cancellation of some international contracts. Consolidated net profit decreased from 1.83 billion rupees a year earlier to 1.44 billion rupees ($17.62 million) in the quarter that ended March 31. Due to the cancellation of a few contracts in Dubai and Qatar last year, Voltas had to make provisions totaling 2.44 billion rupees during the quarter. For the three months ending March 31, revenue from operations increased by roughly 10.9% to 29.57 billion rupees from 26.67 billion rupees a year earlier.

The March quarter saw contract manufacturing services provider Syngene International's earnings after tax increase by 21% to Rs 179 crore. In the same time the previous year, the company had posted a Profit After Tax (PAT) of Rs 148 crore.  According to a statement from Syngene International, operating revenue increased to Rs 994 crore in the fourth quarter from Rs 758 crore in the same time the previous year.  The firm recorded a PAT of Rs 464 crore for FY23, up 17% from Rs 396 crore in the year 2021–2022.

On the strength of a significant rise in net interest income (NII), Bajaj Finance's (BFL's) consolidated net profit increased by 30% year over year (YoY) to Rs 3,158 crore in the fourth quarter of the fiscal year 2022–23 (Q4FY23). In the same time last year, it earned a profit of Rs 2,420 crore. The non-banking financial company's net profit increased by 64% YoY in FY23 from Rs 7,028 crore in FY22 to Rs 11,508 crore. Subject to shareholder approval, the company's board proposed a dividend distribution of Rs 30 per share (1,500% of face value; Rs 2 apiece) for FY23.

Net Sales for KPIT Technologies Limited were Rs 1,017.37 billion in March 2023, up 56.09% from Rs 651.77 billion in that month last year. Quarterly Net Profit was 111.60 crores in March 2023, up 41.49% from 78.88 crores in that same month the previous year. EBITDA was Rs. 134.45 crore in March 2022 and is now Rs. 188.56 crore in March 2023, an increase of 40.25%.  KPIT Tech's earnings per share (EPS) rose from Rs. 2.92 in March 2022 to Rs. 4.13 in March 2023.