Budget FY26: Customs Duty Cuts on Raw Materials Likely

Budget FY26: Potential Customs Duty Cuts on Raw Materials to Boost Manufacturing

Customs Duty Reduction Expected

The government may reduce customs duty on raw materials used in manufacturing medical equipment, electronic goods, and footwear in the upcoming Budget, according to tax experts. This move is aimed at boosting local manufacturing.

Focus on Rate Rationalization

Deloitte India Partner, Harpreet Singh, stated that key demands from the Customs side for the 2025-26 Budget, scheduled for tabling in Parliament on February 1, include rate rationalization, simplification of the regime, and improved litigation and dispute management. Singh anticipates potential duty cuts on raw materials in sectors like electronics, home appliances, healthcare products, and pharmaceuticals, aligning with the government's manufacturing push.

Sectors Likely to See Rationalization

The sectors that could see rationalization include healthcare, medical equipment manufacturing, white goods, electronics, footwear, and toys. The 2024-25 Budget had announced a comprehensive review of the Customs Duty rate structure for simplification, removal of duty inversion, and reduction of disputes.

Simplified Duty Structure

To reduce classification disputes, the Budget had announced a review of the customs duty rates. Currently, there are over a dozen customs duty rates, and the government is considering reducing the number of rate slabs to 4 or 5. Anurag Sehgal, Managing Director at Price Waterhouse & Co. LLP, suggests that goods may be categorized as value-added, primary, or raw material/intermediary, with corresponding slab rates.

Call for Simplification and Amnesty Scheme

Sivakumar Ramjee, Executive Director at Nangia Andersen LLP, emphasized the need for simplifying the customs duty structure to minimize rate multiplicity, correct duty inversions, and reduce classification disputes, supporting sustainable manufacturing practices. He believes a streamlined rate structure would support domestic manufacturing and align with the ‘Make in India’ initiative. Ramjee also anticipates the introduction of an amnesty scheme to resolve long-standing customs disputes.

Manoj Mishra, Partner at Grant Thornton Bharat, mentioned that approximately ₹50,000 crore is locked up in customs disputes, and an amnesty scheme would help facilitate dispute settlement. The government is being urged to implement a one-time dispute settlement scheme in Customs law to resolve these outstanding issues.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Senco Gold Announces 1:2 Stock Split, Sets Jan 31 Record Date

Senco Gold Announces 1:2 Stock Split, Sets Record Date

Stock Split Details

Senco Gold Limited, a major jewellery retailer in India with 166 retail stores across the country and one in Dubai, has announced a 1:2 stock split. The company has been operating for more than 85 years and is recognized as the second Most Trusted Jewellery Brand by TRA for the fourth consecutive year. Following the announcement of the record date for the stock split, Senco Gold's shares closed the day 1.85% down at ₹1027.20, with a market capitalization of ₹8,402.75 Cr.

Record Date for Stock Split

In a stock exchange filing, Senco Gold stated that the Board of Directors has fixed the record date as January 31, 2025, for the sub-division/split of the equity shares. This means that one equity share with a face value of ₹10 will be split into two equity shares with a face value of ₹5 each.

Business Update: Q3 & 9M FY25

In October 2024, the company achieved its highest-ever monthly revenues of over ₹1000 Cr. In Q3FY25, it recorded revenues of over ₹2000 Cr in a single quarter. The revenue has surpassed ₹6000+ Cr on a trailing twelve-month (TTM) basis, demonstrating progress towards a full-year growth of 19%-20%. While retail growth remained consistent at 19% YoY in Q3, the company's overall sales grew 22% YoY in Q3 and 19% YoY in 9M.

Fundraising Through QIP

The company raised ₹459 Cr through a Qualified Institutional Placement (QIP) and distributed equity shares at a price of ₹1,125 per share. The offering saw strong interest from both new and existing investors. The equity share capital base has grown from 7.77 Cr to 8.18 Cr shares due to this allocation.

Store Expansion

Senco Gold has opened 12 showrooms in the past nine months, including 7 of its own, bringing the total showroom count to 170, including 69 franchisee showrooms. During the quarter, four new showrooms were opened in Gwalior (MP), Dehradun (UK), Barakar (WB), and Chandaneshwar (Odisha).

Stock Price Analysis

According to A R Ramachandran, an Independent Research Analyst, "Senco Gold stock price is slightly bearish on the Daily charts with strong resistance at 1075. A Daily close below support of 994 could lead to a target of 868 in the near term."

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Sigachi Industries Declares Q3 Results, Appoints New Chairman

Sigachi Industries Announces Q3 Results, Appoints New Chairman

Strong Q3 Performance

Sigachi Industries' shares closed Friday's trading session on the NSE 4.15% higher at ₹51.97 per share, with a market valuation of ₹1.66KCr. This followed the Board of Directors' announcement of the company's financial performance for the quarter ended December 31, 2024. The company's consolidated net profit for the third quarter (Q3 FY2025) jumped more than 30% YoY to ₹21.35 crore, compared to a net profit of ₹16.11 crore in the same quarter last year. The company's revenue from operations was ₹139.41 crore, up 25% YoY from ₹110.94 crore in the same quarter of the previous year, driven by a spike in customers.

Financial Highlights

The total income improved from ₹112.65 crore in Q3 of the previous fiscal year to ₹141.43 crore in the current quarter. Over the course of the quarter, the expenses rose to ₹114.72 crore. In a stock exchange filing, Sigachi Industries announced the "Appointment of Mr. Amit Raj Sinha, Managing Director & Chief Executive Officer of the Company as Chairman of the Board of the Company."

Warrant Conversion and Fund Collection

52,52,190 equity shares of Re.1/- each were issued to non-promoters upon the conversion of 5,25,219 warrants at an issue price of ₹261/-per share of ₹10/-(post-split: ₹26.10/- per share of Re.1/- each) on August 30, 2024. As of December 31, 2024, the company had collected ₹123.52 crores in compensation for the ₹286.45 crores allotted for convertible warrants.

GAIN Certification

Sigachi Industries Limited recently received audit certification from the Global Alliance for Improved Nutrition (GAIN). By adhering to GAIN's stringent guidelines and standards, Sigachi reaffirms its commitment to producing safe, high-quality, and nutritionally enhanced products. Intertek audited and certified Sigachi's Sultanpur, Hyderabad plant on behalf of GAIN. Sigachi is considering leveraging its BaseBlend® brand to serve the global premix market, with a 9000 MT/installed capacity that is GAIN Certified and a presence in 65 countries worldwide (in the food and pharmaceutical excipients sector).

Company Overview

The pharmaceutical firm Sigachi Industries Limited has been in business for over 33 years and is listed on both the NSE and the BSE. The company is involved in the development of APIs, O&M services, vitamin and mineral nutrition blends C and D, and excipients. Sigachi has five state-of-the-art facilities across Telangana, Gujarat, and Karnataka, and has reached customers in 62 countries so far. The company's headquarters are in Hyderabad, India, with a subsidiary in the United Arab Emirates.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Stocks Ex-Dividend, Bonus & Split: Watch These This Week

Stocks to Watch: Ex-Dividend, Bonus, and Split Announcements This Week

Understanding Dividends, Stock Splits, and Bonus Issues

A dividend is a portion of a company's profits distributed to its shareholders. Companies can also choose to reinvest profits, repay debts, or reserve them for future use. A stock split occurs when a company increases the number of its shares by dividing existing ones, while the overall market value of the company remains unchanged. A bonus issue, also called a scrip or capitalization issue, involves granting additional shares free of charge to existing shareholders.

Stocks Going Ex-Dividend This Week

Here are the stocks that will trade ex-dividend in the coming week:

1. Angel One Limited

   Angel One Limited, with a market capitalization of ₹22,165.58 crore, closed at ₹2456 per share on Friday, 1.07% lower than its previous close. The company is issuing an interim dividend of ₹11 per equity share, representing a 110% payout over the face value of ₹10 per share. The record date for the dividend is set as January 21, 2025. The company has a dividend yield of 1.37%.

2. Bhansali Engineering Polymers Limited

   Bhansali Engineering Polymers Limited, with a market capitalization of ₹3,083.36 crore, closed at ₹123.90 per share on Friday, 1.04% lower than its previous close. The company is issuing an interim dividend of ₹1 per equity share, representing a 100% payout over the face value of ₹1 per share. The record date for the dividend is set as January 22, 2025. The company has a dividend yield of 3.22%.

3. Havells India Limited

   Havells India Limited, with a market capitalization of ₹98,931.41 crore, closed at ₹1578 per share on Friday, 1.33% higher than its previous close. The company is issuing an interim dividend of ₹4 per equity share, representing a 400% payout over the face value of ₹1 per share. The record date for the dividend is set as January 22, 2025. The company has a dividend yield of 0.57%.

4. Mastek Limited

   Mastek Limited, with a market capitalization of ₹8,486.41 crore, closed at ₹2748.15 per share on Friday, 0.26% higher than its previous close. The company is issuing an interim dividend of ₹7 per equity share, representing a 140% payout over the face value of ₹5 per share. The record date for the dividend is set as January 24, 2025. The company has a dividend yield of 0.68%.

5. Waaree Renewables Technologies Limited

   Waaree Renewables Technologies Limited, with a market capitalization of ₹10,886.99 crores, closed at ₹1044.35 per share on Friday, 3.01% lower than its previous close. The company is issuing an interim dividend of ₹1 per equity share, representing a 50% payout over the face value of ₹2 per share. The record date for the dividend is set as January 24, 2025. The company has a dividend yield of 0.09%.

Bonus Issue Announcement

Here are the companies to watch in the coming weeks that have announced bonus shares:

• B N Rathi Securities Limited

  B N Rathi Securities Limited, with a market capitalization of ₹237.17 crores, closed at ₹228.60 per share on Friday, 8.10% lower than its previous close. The company has announced a bonus issue in a 1:1 ratio, granting shareholders one additional share for every one share they hold. The record date for this is set for January 24, 2025.

  The company has also announced a stock split in a 1:2 ratio, dividing each ₹10 share into two ₹5 shares. The record date for this split is January 24, 2025.

Stock Split Announcement

Here are the companies to watch in the coming weeks that have announced stock splits:

• Insolation Energy Limited

  Insolation Energy Limited, with a market capitalization of ₹7,046.57 crores, closed at ₹3198 per share on Friday, 1.14% lower than its previous close. The company has announced a stock split in a 1:10 ratio, dividing each ₹10 share into ten ₹1 shares. The record date for this split is January 24, 2025.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Burmans Launch Open Offer for 26% Stake in Religare Enterprises

Burmans Launch Open Offer to Acquire 26% Stake in Religare Enterprises

Open Offer Commences January 27

The Burman family's open offer to acquire an additional 26% stake in Religare Enterprises Ltd (REL) is scheduled to begin on January 27, following regulatory approvals. This move comes after the Reserve Bank's approval last month. The Burmans, known for their association with FMCG giant Dabur, aim to increase their stake in the non-banking financial company.

Current Stake and Target Acquisition

Currently, the Burmans hold a 25.12% stake in REL through four entities: M.B. Finmart Private Ltd, Puran Associates Private Ltd, VIC Enterprises Private Ltd, and Milky Investment & Trading Company. The open offer targets the acquisition of up to 9,00,42,541 fully paid-up equity shares, each with a face value of ₹10.

Offer Details and Timeline

The open offer represents 26% of the expanded voting share capital of REL. According to the tentative schedule, the offer will close on February 7. This strategic move by the Burman family was initially announced in September 2023 as part of a ₹2,116-crore proposal to REL shareholders.

Concerns Raised by REL's Independent Directors

Despite this initiative, REL's independent directors have raised concerns. They allege fraud and other breaches by the Burman family entities and have approached regulators such as SEBI, RBI, and the Insurance Regulatory and Development Authority for intervention. The Burman family is not only associated with Dabur India but also with other entities such as Eveready Industries. Their decision to increase their stake in REL reflects their continued interest in expanding their influence within the financial sector.

This acquisition attempt highlights the Burmans' strategic approach to consolidating their position in REL. Market participants and regulators will be closely monitoring the outcome of this open offer.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Netweb Technologies Q3 Profit Up 16% to ₹30.3 Cr on AI Demand

Netweb Technologies Achieves 16% Profit Growth in Q3 FY25, Driven by AI Demand

Q3 Financial Performance

Netweb Technologies, a domestic IT server manufacturer, reported a 16.56% increase in profit, reaching ₹30.32 crore for the third quarter ending December 31, 2024. This growth was driven by the rising demand for artificial intelligence projects. In the same period last year, the company had recorded a profit of ₹26 crore. Revenue from operations saw a significant rise of approximately 32%, amounting to ₹334 crore during the reported quarter, up from ₹253.4 crore in the December quarter of the previous fiscal year. The company reported it achieved its highest quarterly income and profit after tax (PAT).

Strategic Growth and International Expansion

Sanjay Lodha, chairman and managing director of Netweb Technologies, highlighted their strategic growth efforts. He stated that the company recorded its highest quarterly income and PAT, and that export revenue contribution stood at 9.0% in Q3 FY25, reflecting their efforts to expand international market presence. He also noted that India’s thriving AI research ecosystem, supported by the government and industry partnerships, offers substantial innovation potential. Netweb is focusing on high-performance computing (HPC), private cloud, and AI to leverage these opportunities.

AI as a Revenue Driver

Artificial intelligence has become a significant revenue source for Netweb Technologies. Over the first nine months of FY25, AI contributed 14.7% to their revenue, showing a year-on-year growth of 136.3%. This underscores the company's commitment to advancing in AI-related projects.

Order Book and Future Outlook

As of December 2024, Netweb Technologies holds an order book valued at ₹360 crore. This positions them well for continued growth and expansion in both domestic and international markets.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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EPFO Members Can Now Update Details, Transfer Funds Online

EPFO Members Can Now Change Details, Transfer EPF Online Without Employer Intervention

New Online Facilities for EPFO Members

Over 7.6 crore members of the Employees' Provident Fund Organisation (EPFO) can now change personal details like name and date of birth online without any verification by the employer or approval by EPFO. This new facility was launched on Saturday. Additionally, EPFO members with e-KYC EPF accounts (Aadhaar seeded) can file their EPF transfer claims online with Aadhaar OTP (one-time password) directly, without needing employer intervention.

Launch of New Services

Union Labour & Employment Minister Mansukh Mandaviya introduced these two new services on Saturday. The minister noted that around 27% of grievances filed by members are related to member profile/KYC issues, which is expected to significantly decrease after this facility rollout. He also stated that large employers will also benefit from reduced workload.

Simplified Joint Declaration Process

The EPFO has simplified the process of joint declaration by allowing employees to self-correct common errors in personal details like name, date of birth, gender, nationality, father/mother's name, marital status, spouse name, date of joining, and date of leaving. This facility is available for members whose UAN (universal account number) was issued after October 1, 2017 (when Aadhaar matching became mandatory). No supporting documents are required in such cases. If the UAN was issued prior to October 1, 2017, the employer can correct details without EPFO approval. Simplified documentation is also available for these cases.

Correction Process for Non-Aadhaar Linked Accounts

Only in cases where the UAN is not linked with Aadhaar, any correction must be submitted physically to the employer and forwarded to EPFO for approval after verification. Previously, the employee had to make an online request with supporting documents, which had to be verified by the employer and then forwarded to EPFO for approval. This process often took an average of 28 days, with only 40% of requests sent within 5 days, and 47% sent after 10 days.

Benefits of Simplification

The simplification will provide relief in 45% of cases through immediate correction using Aadhaar OTP verification and in 50% of cases through the employer. Members who have pending requests with their employers can delete the existing request and self-approve using the new simplified process. This will benefit approximately 3.9 lakh cases that are currently pending with employers.

Simplified EPF Transfer Claims

For EPF transfer claims, members with fully compliant e-KYC EPF accounts can file online claims with Aadhaar OTP directly with EPFO, without the need for employer intervention. It is estimated that more than 94% of the 1.3 crore claims filed during FY 2024-25 will now reach EPFO instantly, significantly reducing the turnaround time for claim processing. Any member with a pending transfer claim with their employer can delete the existing request and submit the claim directly with EPFO. This simplification is expected to reduce member grievances considerably and will also reduce rejections.

The minister also stated that the ministry is taking steps to improve EPFO service delivery to be on par with the banking system.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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RBL Bank Q3 Net Profit Plummets 86%, Asset Quality Improves

RBL Bank Q3 Net Profit Declines 86% to ₹33 Cr; Asset Quality Improves

Q3 Financial Results

RBL Bank Limited announced its financial results for the quarter and nine months ending December 31, 2024, on Saturday, January 18, 2025. The bank's standalone net profit for the December quarter was ₹33 crore, an 86% drop from the ₹233 crore it posted for the same period last year. The bank’s net interest income (NII) increased 3% YoY to ₹1,585 crore, while its net interest margins (NIMs) were 4.90%.

Other Income and Deposits

Other income increased 38% year-on-year to ₹1,073 crore in Q3 of FY25 and 29% year-over-year to ₹2,806 crore in FY25. While CASA (Current Account Savings Account) increased 12% year-on-year to ₹35,022 crore, the bank's total deposits climbed 15% to ₹106,753 crore. The CASA ratio during Q3FY25 was 32.8%.

Advances and Asset Quality

RBL Bank stated that its retail advances book increased 19% year-on-year to ₹55,199 crore, while its net advances book climbed 13% YoY to ₹90,412 crore. The bank’s gross non-performing asset (NPA) ratio decreased by 20 basis points to 2.92% from 3.12% year-on-year, while its net non-performing asset (NPA) ratio improved by 26 basis points to 0.53% from 0.80%.

Management Commentary

Mr. R Subramaniakumar, MD & CEO of RBL Bank, remarked that while they remain cautious about short-term challenges from the macroeconomic environment, particularly affecting certain unsecured lending segments, the bank continues to show strong growth in secured retail and commercial banking on the asset side, and in granular deposits on the liability side. He highlighted that the core business remains robust and that a disciplined focus on growth with profitability and customer-centric approach continues to drive meaningful progress. Overall, he noted that they are happy to deliver another quarter of robust operating performance and growth.

Income and Operating Expenses

In Q3 FY25, the bank's other income climbed 38% YoY to ₹1,073 crore; and in 9M FY25, it jumped 29% YoY to ₹2,806 crore. Operating expenses climbed 7% YoY to ₹1,662 crore in Q3 FY25 and 11% to ₹4,941 crore in 9M FY25. RBL Bank’s net total income expanded 14% year-on-year to ₹2,658 crore in Q3 FY25, and it increased 17% year-on-year to ₹7,706 crore in 9M FY25. The operating profit improved 30% YoY to ₹997 crore in Q3 FY25 and 29% YoY to ₹2,766 crore in 9M FY25.

Branch Network

As of December 31, 2024, RBL Bank had 2,011 touchpoints, of which 1,453 were business correspondent branches and 558 were bank branches. A wholly owned subsidiary, RBL Finserve Limited, is responsible for 1,145 business correspondent branches.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Chandrababu Naidu to Promote AP at Davos World Economic Forum

Chandrababu Naidu to Promote Andhra Pradesh at World Economic Forum in Davos

Seeking Investment Opportunities

Andhra Pradesh Chief Minister N Chandrababu Naidu is set to attend the World Economic Forum in Davos, Switzerland, with a focus on promoting Andhra Pradesh to global business leaders and industrialists. His aim is to attract potential investments by highlighting the state's new employment-centric industrial policies and engaging with top executives.

Itinerary and Meetings

Naidu's schedule begins with a departure from Amaravati to Delhi on Sunday, followed by a flight to Zurich early Monday. He will meet India's ambassador to Switzerland in Zurich, and then engage with industrialists at a local hotel. He will also participate in a "Meet and Greet Telugu Diaspora" event to discuss investment opportunities with Telugu industrialists.

Showcasing Andhra Pradesh's Potential

The Chief Minister plans to use the Davos platform to showcase Andhra Pradesh's human resources, infrastructure, government subsidies, stable leadership, and efficient business environment. These factors are expected to attract both national and international companies. Following his engagements in Zurich, Naidu will travel to Davos for a dinner meeting with industrialists and a special meeting with ArcelorMittal executive chairman Lakshmi Mittal.

Discussions and Engagements

During the four-day World Economic Forum event, Naidu will be involved in discussions on green hydrogen and is scheduled to meet chief executives and chairpersons from companies like Coca-Cola, Welspun, LG, Carlsberg, Cisco, Walmart International, and Cognizant Technologies. He has planned at least 10 meetings and conferences daily during his visit.

Accompanying Officials

Naidu will be accompanied by IT Minister Nara Lokesh, Industries Minister TG Bharat, and other officials to assist in promoting Andhra Pradesh's investment potential. Naidu's visit will conclude on the fourth day, after which he will return to Zurich before heading back to India.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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