SpiceJet increases as the government increases the borrowing cap for airlines under the credit programme.
On October 6, the finance ministry changed the Emergency Credit Line Guarantee Scheme (ECLGS), increasing the lending cap from Rs 400 crore to Rs 1,500 crore in order to support the aviation industry. As a result, shares of low-cost airline SpiceJet increased.
The updated ECLGS 3.0 states that an airline is qualified for “100% of their fund-based or non-fund-based loan outstanding as on the reference dates or Rs. 1,500 crore, whichever is lower; and of the aforementioned, Rs. 500 crore shall be considered, based on equity participation by the owners.”
Investors were pleased with the news. SpiceJet’s shares, which had fallen because of a number of problems like insolvency procedures and a streak of losses the business recorded, increased by more than 6%. On BSE, the shares changed hands for Rs 40.80. The stock has lost 40% of its value so far this year. The considerably more financially secure InterGlobe Aviation traded up 0.5 percent at Rs 1860. The stock has decreased 8% so far in 2018.
Godrej Consumer shares declines as the business anticipates lower volumes and lower EBITDA in Q2FY23.
Following Marico, the FMCG company Godrej Consumer Products released a discouraging quarterly update, which caused the stock to drop by 5% on October 6. As the FMCG market remained weak during the quarter, the business predicted a mid-single-digit volume reduction with a low single-digit volume CAGR over the next three years.
On October 6th, the benchmark Sensex was at 58,508.33, up 442.86 points or 0.76 percent, and the stock was trading at Rs 850.20 per share on the BSE, down 5.14 percent.
The company anticipates high single-digit sales growth in India. Meanwhile, we anticipate an early double-digit constant currency sales decline in Indonesia due to hygiene performance declining after COVID-19 and a sizable hygiene comparator in the base. We anticipate sales increase in the high single digits (excluding hygiene). “We aim to produce constant currency sales growth in the low-teens,” said Godrej Consumer, whose growth momentum persisted in major nations such as Africa, the United States, and the Middle East (GAUM).
Strong asset growth is reported by Bajaj Finance, but loan bookings disappoint Street.
Despite the company reporting strong AUM (assets under management) growth of 31% for the September quarter, Bajaj Finance’s share price started slightly higher on October 6 and then started to decline. AUM increased from Rs 1.66 lakh crore as of 30 September 2021 to almost Rs 2.18 lakh crore.
The stock was trading at Rs 7,376 as of October 6th on the National Stock Exchange, down 1.5%. It is currently the biggest index loser. Since its June low of Rs 5,200, the stock has increased by approximately 50%.
The company stated in an exchange filing that the number of customers has increased from 52.8 million to 62.9 million since the same time last year. The number of customers increased by 2.6 million in Q2FY23. 6.8 million new loans were booked during the quarter, up from 6.3 million in Q2FY22.
New loan bookings have decreased from 7.4 million in Q1FY23 sequentially. With a target price of Rs 5,000, international brokerage company Macquarie has an underperform call on the stock. Although loan volumes are flat compared to the total volume of FY20, AUM growth is exceeding projections. Loan bookings remain below the 7 million target.
Strong loan and deposit growth in the second quarter lifts IndusInd Bank’s shares 5%.
Following the lender’s robust loan and deposit growth for the September quarter, which improved investor sentiment, shares of IndusInd Bank increased by almost 5%.
The lender reported that their advances increased 18% year over year and 5% quarter over quarter, above most of its competitors. As of September, advances totaled Rs 2,59,647 crore compared to Rs 2,20,808 crore a year earlier.
The CASA Ratio for Q2FY23 increased from 42.1 percent to 42.4 percent, which is the percentage of deposits in current and savings accounts to all deposits made by the bank. On the BSE, the stock increased by 5% to Rs 1,210. As of September 2022, bank deposits increased by 15% YoY, from Rs 2,75,473 crore to Rs 3,15,824 crore. It increased by 4% from quarter to quarter. As of September 30, retail deposits and deposits from small business customers were Rs 1,29,895 crore, up from Rs 1,24,102 crore on June 30.
City gas distributors could experience margin pressure; shares of Indraprastha Gas, Mahanagar Gas, and Gujarat Gas decline
On October 3, after the government increased natural gas prices by a sharp 40% to record highs, in accordance with the high energy prices seen around the world, shares of gas businesses fell.
According to an order from the Petroleum Planning and Analysis Cell of the oil ministry, the rate paid for gas generated from old fields, which makes up around two-thirds of all gas produced in the nation, was raised to $8.57 per million British thermal units from $6.1 on last Friday.
The BSE price of Mahanagar Gas shares was down 3.2 percent at Rs 805.7 as of October 3rd, while Indraprastha Gas shares were down 3.3 percent at Rs 383.6 and Gujarat Gas shares were down 0.6 percent at Rs 499.85.
According to The Economic Times, which cited officials with knowledge of the situation, the companies worry that the price increase will affect sales volume and even the rate of expansion. In the meantime, Harsha Upadhyaya of Kotak Mahindra Asset Management Company stated today in an interview with CNBC-TV18 that the increase in gas prices may affect city gas distribution businesses since it may be challenging to pass on price increases.