Know what stocks veteran bulls are eyeing, what the bears are ganging up against, major deals and all the inner goings-on from Dalal Street
 

Concentrated positions in SAIL futures are on the rise as a section of high networth individuals are sticking to their bullish view on the stock. Ten entities now account for roughly 40 percent of outstanding positions in futures. And they are getting good support from arbitrage schemes of mutual funds looking for risk-free profits.

To make the most profit by deploying the least capital, HNIs bullish on any stock prefer to load up on futures. And when liquidity in that stock's futures rises, arbitrage funds enter the fray by taking the opposite side of the trade: selling futures. It is a win-win for both parties. The conspiracy theory is that in some instances, HNIs are teaming up with arbitrage funds and assuring them of a rollover of the futures positions at an attractive rate of interest. The straightforward theory is that arbitrage funds are simply going by criteria of liquidity and returns while selecting stocks. Whichever the case, arbitrage funds also need to buy an equivalent quantity of shares to balance their position and lock in the profit. And when multiple arbitrage funds get drawn to such a play, the supply of shares in the system reduces, putting anupward pressure on the stock price.
The outlook on metals in general has turned positive of late, but copper and aluminium are the bigger favourites compared to steel.
Rising gold prices were supposed to drive Manappuram shares higher, as gold loan NBFCs in general would be able to lend more money for the same quantity of gold and earn higher profits. Manappuram’s March quarter numbers showed a healthy rise year-on-year, but the sequential comparison showed that high gold prices and reduced competition from banks is not aiding topline and bottomline growth to the extent as was expected. Some of the bull operators have trimmed their exposure to the stock for now, as evident from the more than halving of concentrated holdings in futures to below 10 percent.

Dr Reddy’s shares have been struggling for direction post Q4 earnings, but operator circles are not giving up the fight. The challenge they are facing is that the ADRs are quoting at a discount to the domestic market price. That makes it a cheaper option for foreign investors to buy in the ADR market, where volumes are decent. For the last couple of weeks, the stock has been firm in the first half of the session but struggles to sustain at higher levels once European markets open around noon.

Investments to be made towards mine enhancement, new mine bids and acquisitions

NMDC, the country’s largest iron-ore miner, has earmarked ?50,000-crore capex, as it plans to double production to nearly 100 million tonnes (mt) over the next five-six years. The investments are to be made towards mine enhancement, including seeking permissions for deeper drilling, new mine bids and acquisitions, addition of equipment, setting up of slurry pipelines and expansion of other allied facilities.

According to Amitava Mukherjee, Chairman and Managing Director (Additional Charge) and Director (Finance), NMDC, approvals are expected by “next year-(fiscal) end,” with nearly ?2,500 crore of capex expected in FY25.

Bunching up or peaking of capex — to around ?8,000-9,000 crore each year, is expected from the “year after next” for “three to four years” — FY27 to FY30.
 

“So we are on track to double production to 100 mt over the next five-odd years, around FY30/31, with a capex outlay of ?50,000 crore. Some approvals have been received and we will float tenders for equipment soon, while some projects are in the DPR stage. We plan to get all the approvals – board level, EC clearances, and even ministerial approvals – in place by next year. Capex peaking – around ?9,000 crore a year – will happen for three to four years from the year after next (FY26),” he said during the earnings call.

Apart from expansion of existing mine capacities, NMDC would also look at bidding and acquisition of new iron-ore mines.

The other part of the capex plans include setting up of conveyor belts (of around ?1,000 crore) and slurry pipelines (expected to cost ?10,000 crore), pellet plants at ?2,000 crore, building stockyards (for which consultants like Deloitte, McKinzie and BCG have been engaged) at a cost of ?10,000 crore.
 

NMDC operates mines in Chhattisgarh and Karnataka. In FY24, NMDC iron-ore production stood at over 45 mt, and in FY25, it has guided for a 11 per cent increase in production to 50 mt, FY26 production guidance is another 8 per cent increase to 54 mt.

“Incremental addition to iron-ore production will come from both Karnataka and Chhattisgarh mines, and required permissions (including environmental clearances) for ramp up of production up to 53 mt has been obtained,” he said. “Beyond FY26, we have yet not worked out the production guidance,” he added.

Mukherjee anticipates demand for iron ore to remain strong, especially on the back of improving domestic consumption of steel. Iron-ore is a key steel-making feedstock.

According to him, apart from NMDC Steel Ltd – the steel unit of NMDC, other big steel-makers JSW and JSPL have already sought additional supplies from the PSU iron-ore mines.

“So if you look at our large clients, JSPL is asking for additional supplies, which we are unable to provide; for JSW, we are supplying 60 per cent of their demand, and 80 per cent of RINL’s demand,” he added.

New Delhi: The Government has issued a directive to telecom operators to block all incoming international spoofed calls that display Indian mobile numbers, according to an official statement released on Sunday.

The Department of Telecom (DoT) has reported that fraudsters are making international spoofed calls, displaying Indian mobile numbers to deceive Indian citizens and commit cyber-crimes and financial frauds.

These spoofed calls, which appear to originate within India, are actually made by cyber-criminals from abroad by manipulating the calling line identity (CLI). Such calls have been misused in numerous cases, including fake digital arrests, FedEx scams, narcotics in courier scams, impersonation of government and police officials, and false notifications about mobile number disconnections by DoT or TRAI officials.

"DoT and Telecom Service Providers (TSPs) have devised a system to identify and block such international spoofed calls from reaching any Indian telecom subscriber. Directions have now been issued to the TSPs to block these incoming international spoofed calls," the statement explained.

Previously, TSPs were already blocking incoming international spoofed calls using Indian landline numbers, following DoT's directives.

"Despite our best efforts, some fraudsters may still succeed through other means. To combat this, we urge everyone to report suspected fraud communications using the Chakshu facility on Sanchar Saathi," the statement added.

In related news, the DoT recently issued directives for telecom operators to re-verify 6.8 lakh mobile numbers within 60 days, which are suspected to have been obtained using invalid, non-existent, or fake documents. This action follows advanced AI-driven analysis that flagged these connections as potentially fraudulent.

ONGC will slow down its deleveraging over the next 12-24 months, eroding headroom for the state-owned firm's 'bbb+' standalone credit profile, S&P Global Ratings said on Monday
 

New Delhi: An increase in investments at Oil and Natural Gas Corporation (ONGC) Limited is expected to slow down its deleveraging process over the next 12-24 months, impacting the headroom for the state-owned firm's 'BBB+' standalone credit profile, according to S&P Global Ratings on Monday.

S&P noted that ONGC's financial results for the fiscal year ending March 31, 2024, aligned with expectations. Despite a 2-3 percent decline in domestic oil and gas production volumes and lower realizations in fiscal 2024, the company's EBITDA grew to Rs 1.1 lakh crore from Rs 93,600 crore in fiscal 2023.

"We attribute the higher EBITDA to the strong performance of downstream subsidiaries - Mangalore Refinery and Petrochemicals Ltd (MRPL) and Hindustan Petroleum Corp Ltd (HPCL), which together accounted for about 30 percent of the group's EBITDA during the year. We forecast ONGC's EBITDA will remain at about Rs 1 lakh crore over fiscal years 2025 and 2026," S&P stated.

ONGC's integrated operations are expected to support earnings resilience. The firm's production volumes are anticipated to rise gradually over fiscal years 2025 (April 2024 to March 2025) and FY2026, as the company scales up oil and gas production from its block in the Krishna Godavari (KG) basin in India.

"We expect output from the group's international assets, held through ONGC Videsh Ltd (OVL), to grow by 2-5 percent during this period," S&P added.

The higher output should help mitigate the impact of moderating oil prices, based on S&P Global Ratings' Brent crude oil price assumption of USD 85 per barrel for the rest of 2024 and USD 80 per barrel for 2025 and 2026.

"Our base case also assumes the average realization on the company's domestic gas production will be USD 9.5 per metric million British thermal unit (mmBtu) for the next two years. This is given the mix of output from nomination fields and difficult acreages, and India's administered gas price formula," the rating agency noted.

S&P forecasts ONGC's annual capital expenditure to increase to Rs 57,000-58,000 crore annually over the next 12-24 months, up from about Rs 52,000 crore in fiscal 2024 (April 2023 to March 2024).

Of this, the company is expected to spend Rs 33,000-35,000 crore annually primarily to arrest declining output from its matured fields in India. The remaining funds will be allocated to its downstream subsidiaries, MRPL and HPCL, to enhance refining and petrochemical capacities.

"ONGC's planned capital investments are likely to consume about 60 percent of the company's operating cash flow. This, combined with ONGC's stated financial policy on shareholder distributions, will leave limited headroom for the company to undertake sizable additional investments, in our view.

"We expect ONGC's ratio of funds from operations (FFO)-to-debt to remain at 45-55 percent in fiscals 2025 and 2026, compared with about 55 percent in fiscal 2024, assuming the acquisition of ONGC Petro additions Ltd (OPaL) will be completed in fiscal 2025. This leaves limited headroom to our downside trigger of 40 percent FFO-to-debt for the 'BBB+' rating," S&P explained.

S&P noted that its rating on ONGC (BBB-/Stable) remains constrained by the sovereign credit rating on India (BBB-/Stable/A-3).

Indian Oil has signed an MoU with the Indian Army for the deployment of hydrogen fuel cell technology for heavy-duty e-mobility
 

New Delhi: Indian Oil has taken a significant step towards sustainable transportation by handing over a state-of-the-art green hydrogen fuel cell bus to the Indian Army for use in the Delhi-NCR region. On this notable occasion, a Memorandum of Understanding (MoU) was signed between Indian Oil and the Indian Army to spearhead the deployment of hydrogen fuel cell technology for heavy-duty e-mobility.

This strategic partnership aims to promote sustainable and eco-friendly transportation solutions, as emphasized in an official statement by Indian Oil.

The handing over and signing ceremony took place at the prestigious National War Memorial, India Gate, New Delhi, attended by Chief of Army Staff (CDS) General Manoj Pande (PVSM, AVSM, VSM, ADC); Indian Oil's Chairman SM Vaidya, along with senior officials from both Indian Oil and the Indian Army.

During the event, General Pande highlighted the long-standing collaboration, stating, "The partnership between Indian Oil and the Indian Army spans over six decades and is built on an unbreakable bond of trust. The Indian Army is committed to exploring and adopting innovative technologies that enhance our operational capabilities while ensuring environmental sustainability. We will be testing one of the hydrogen buses, and I must thank Indian Oil for choosing the Indian Army as their partner."

Expressing his enthusiasm, Indian Oil's Chairman remarked, "It is indeed a very momentous day today that a bus which is part of the green hydrogen fuel cell bus fleet will now be operated by the Indian Army. This collaboration with the Indian Army is a landmark step towards a greener and more sustainable future. Indian Oil is currently operating 15 fuel cell buses in the Delhi-NCR region, accumulating a total mileage of 300,000 kilometers, i.e., 20,000 kms on each bus.”

According to Indian Oil, this initiative aims to advance hydrogen and fuel cell technology for heavy-duty e-mobility, positioning the Indian Army as a pioneer in evaluating this technology in collaboration with Indian Oil, India's premier energy company. The project will assess the performance of fuel cell electric buses for public transit in the challenging climatic conditions of the Delhi NCR region, analyzing the impact of local fuel and air quality on the performance of fuel cell systems and vehicles. Additionally, it will evaluate the effectiveness, longevity, and operational reliability of fuel cell buses intended for public fleet utilization.

"This initiative marks a pivotal step in the journey towards sustainable transportation, setting a precedent for future collaborations aimed at advancing green hydrogen and fuel cell technologies in India," Indian Oil further added.

Indian Oil, ONGC and GAIL have been slapped with fines for the fourth straight quarter for failing to meet listing requirements of having the requisite number of directors on their board
New Delhi: For the fourth consecutive quarter, state-owned oil and gas behemoths, including Indian Oil, ONGC, and GAIL (India) Ltd, have incurred penalties for not meeting listing requirements regarding board composition.

The stock exchanges imposed an aggregate fine of Rs 34 lakh on major entities such as Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Oil and Natural Gas Corporation (ONGC), Oil India Ltd (OIL), gas utility GAIL, and Mangalore Refinery and Petrochemicals Ltd (MRPL). These fines stem from non-compliance with the stipulation of having the requisite number of directors on their boards during the January-March 2024 quarter, as indicated in stock exchange filings.

In their individual disclosures, the companies outlined the fines levied by both BSE and NSE for either lacking the required number of independent directors or the mandated woman director during the quarter ending March 31, 2024. They emphasized, however, that the responsibility for director appointments lies with the government, not the companies themselves.

This issue has persisted across the preceding three quarters as well.

IOC, HPCL, BPCL, GAIL, OIL, and MRPL each reported a fine of Rs 536,900 for the fourth quarter, while ONGC was fined Rs 182,900.

Listing regulations mandate that companies must have independent directors in proportion to executive or functional directors, in addition to having at least one female director on the board.

ONGC acknowledged the fine resulted from a shortfall of one independent director on its board. IOC explained that the Ministry of Petroleum and Natural Gas, Government of India, holds the authority to appoint directors, including independent ones. Consequently, the shortfall was not due to any fault or oversight on the part of the company.

IOC asserted that it should not be liable for the fines and requested their waiver, noting that past waiver requests had been favorably considered by the exchanges.

HPCL and BPCL issued similar statements, while GAIL emphasized that appointments are beyond the control of company management. OIL stated it has formally requested the ministry to appoint independent directors. MRPL highlighted its ongoing efforts to secure the necessary board appointments, which are actively under consideration.

In the third quarter (October-December 2023), the companies were fined Rs 542,800 each. Similar fines were imposed in the second quarter (July-September 2023).

For the first quarter (April-June 2023), ONGC faced a fine of Rs 3.36 lakh, IOC Rs 5.36 lakh, and GAIL Rs 2.71 lakh. HPCL and BPCL each incurred fines of Rs 3.6 lakh, while Oil India was penalized Rs 5.37 lakh.

The market's mood is expected to remain upbeat, albeit highly volatile, as it approaches the exit poll as well as the general election results, according to experts.

The market had another spectacular week ending on May 24, with benchmark indices reaching new all-time highs. A robust 2 percent rally was driven by select index heavyweights, buoyed by better-than-expected March quarter earnings across key segments ahead of the crucial Lok Sabha election results due on June 4. The market sentiment was further bolstered by a combination of factors: a significant easing in Foreign Institutional Investor (FII) selling, consistent buying by Domestic Institutional Investors (DIIs), the Reserve Bank of India's (RBI) substantial dividend payout, and positive domestic macroeconomic data. Notably, there was a record rise in exports and employment reached an 18-year high in May, which further supported the bullish trend.

As the market approaches the exit polls and the announcement of the general election results, the mood is expected to remain upbeat, albeit with high volatility. Experts suggest that participants will also be closely monitoring the monthly auto sales data and the GDP numbers for the March quarter from both India and the US.

During the week, the Nifty 50 surged by 2 percent, or 455 points, reaching 22,957, while the BSE Sensex climbed 1,404 points, or 1.90 percent, to close at 75,410. The broader markets had a mixed performance: the Nifty Midcap 100 index rose by 1 percent, whereas the Smallcap 100 index declined by 0.7 percent.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, anticipates that the market will continue its gradual upward trajectory but expects some volatility in the coming week as the elections and the earnings season draw to a close. Investors are advised to stay vigilant and consider the dynamic factors at play, including geopolitical events, economic indicators, and corporate earnings, which are likely to influence market movements.

With ministers Michael Gove and Andrea Leadsom opting out, a total of 78 Conservative MPs have quit the election race, beating the previous record of 72 from 1997. Sunak's party is far behind in opinion polls after high inflation, low economic growth and a series of political scandals.

London: Ahead of Britain's upcoming general election on July 4, Prime Minister Rishi Sunak's problems are exacerbating as he is facing a mass exodus of senior Conservative MPs, who have opted to not stand for re-election as the embattled party is predicted to suffer its worst-ever defeat to the opposition Labour Party. A whopping 78 members of the Tories have quit the electoral race, further casting a shadow over Sunak's popularity in the party and his prospects in the election.

Cabinet ministers Michael Gove and Andrea Leadsom became the latest Tory frontliners to announce their decision to not stand for re-election in this summer’s polls. Gove’s announcement was anticipated among fears of strong anti-incumbency for the Conservative MPs after 14 years in power. Leadsom released her own letter shortly after, writing to Sunak about her decision to not stand for re-election.

"No one in politics is a conscript. We are volunteers who willingly choose our fate. And the chance to serve is wonderful. But there comes a moment when you know that it is time to leave. That a new generation should lead," said Gove in his announcement on social media, speaking about the "toll office can take." It puts the total number of sitting Tories saying they will not stand again at 78, beating the previous record of 72 from 1997, according to the Guardian.

Former prime minister Theresa May is also among the senior MPs stepping away, with former defence minister Ben Wallace already having announced his decision to leave frontline politics. Amid the exodus, Sunak is also under fire for taking a "day off" by stepping away from the campaign trail and spending the day at home in his constituency and in London, holding discussions with his closest advisers.

While one source was quoted as saying that the idea that Sunak was hoping to reset his campaign was “ridiculous”, another campaign operative claimed that “prime ministers don’t normally spend the first weekend of the campaign at home talking to their advisers”. On the other hand, Sunak's Labour rival Keir Starmer is in full campaign swing planning to use the day at public events designed to focus on his argument that the Conservatives have damaged the economy.

Elon Musk said that AI capabilities have advanced rapidly over the past few years, advancing so quickly that regulators, companies, and users are still figuring out how to utilize the technology responsibly.
New Delhi: 

Elon Musk, CEO of Tesla, stated that artificial intelligence (AI) will eventually eliminate all jobs, but he believes this is not necessarily a bad development, reported CNN. Speaking at a startup and tech event in Paris on Thursday, Musk said, "Probably none of us will have a job,".

Elon Musk was speaking remotely via webcam at the Viva Tech event where he predicted a future where jobs would be "optional."

He said, "If you want to do a job that's kinda like a hobby, you can do a job." Musk added, "But otherwise, AI and the robots will provide any goods and services that you want."

Musk highlighted that for this scenario to succeed, there would need to be a "universal high income," which should not be confused with universal basic income, however, he did not elaborate much on this concept.

The Universal basic income (UBI) refers to the government providing a certain amount of money to everyone, regardless of their earnings.

"There would be no shortage of goods or services," Musk stated. He highlighted that AI capabilities have advanced rapidly over the past few years, advancing so quickly that regulators, companies, and users are still figuring out how to utilize the technology responsibly.

In the past also Musk expressed his concerns about AI. During his keynote on Thursday, he described the technology as his "biggest fear". He cited the "Culture Book Series" by Ian Banks, a utopian fictionalized depiction of a society run by advanced technology, as the most realistic and "the best envisioning of a future AI."

Musk questioned whether people would feel emotionally fulfilled in a future without jobs.

"The question will really be one of meaning - if the computer and robots can do everything better than you, does your life have meaning?" Musk said.

He added, "I do think there's perhaps still a role for humans in this - in that we may give AI meaning."

He also advised parents to control and limit the amount of social media their children consume, saying that social media platforms "are being programmed by a dopamine-maximizing AI."

Industry experts are continuously raising concerns over how various industries and jobs will be transformed as AI proliferates in the market.

CNN reports that in January, researchers at MIT's Computer Science and Artificial Intelligence Lab found that workplaces are adopting AI more slowly than some had expected and feared. The report also noted that many jobs previously identified as vulnerable to AI were not economically beneficial for employers to automate at that time.

Experts largely believe that many jobs requiring high emotional intelligence and human interaction, such as mental health professionals, creatives, and teachers, will not need replacing.

New Delhi: Daljeet Singh Khatri is set to be the next Director (Finance) of Housing & Urban Development Corporation Limited (HUDCO), a prestigious public sector undertaking under the Ministry of Housing & Urban Affairs (MoHUA). This recommendation came from the Public Enterprises Selection Board (PESB) Panel on Friday.

Currently, Khatri serves as Executive Director at REC Limited, bringing a wealth of experience and expertise to his new role. He was selected for the position from a competitive pool of 11 candidates, all of whom were interviewed by the PESB selection panel during its meeting on May 24. The panel included candidates from PFC Limited, HUDCO, REC Limited, CONCOR, HPCL, and Maharashtra State Electricity Distribution Company Limited (MSEDCL).

As the Director (Finance) of HUDCO, Khatri will join the Board of Directors and report directly to the Chairman. He will hold the overall responsibility for the finance and accounts of the organization, playing a crucial role in evolving and formulating financial policies, as well as their implementation. His strategic leadership is expected to enhance HUDCO’s financial health and drive its mission of fostering sustainable urban development.

Khatri's extensive background in finance and his current executive role at REC Limited make him an ideal candidate to lead HUDCO’s financial strategies. His appointment is anticipated to bring a fresh perspective and strengthen the corporation’s financial governance and operational efficiency.

HUDCO, a key player in urban development, stands to benefit significantly from Khatri’s expertise, particularly in navigating the complexities of financial management in the public sector. His leadership is poised to contribute to the corporation's continued success and its critical role in India's urban development initiatives.

As the production of coal from commercial and captive coal mines increases, the premium realised by CIL through e-auction will continue to decline, said sources
New Delhi: As the production of coal from sources other than Coal India Limited (CIL) — commercial and captive coal mines — increases, the premium realised by CIL through e-auction will continue to decline, said a source in the Ministry of Coal. During FY 2022-23, the average premium realised by CIL through e-auction was 252 percent. During FY 2023-24, the average premium realised by CIL was 72 percent. “This trend is continuing and is likely to see a further decline during FY 2024-25. This would mean cheaper availability of coal for the non-regulated sector. This will help in reduction in the cost of production and accordingly will contribute to checking inflation,” said the source.
 

Captive, commercial coal mines to contribute over 16% to coal production in FY25

The government opened up the coal sector for commercial coal mining in 2020. “The policy of opening up the coal sector without end-user restriction has resulted in faster operationalisation of new coal mines. There are many mines auctioned for commercial purposes, that have got required clearances, faster than stipulated. Accordingly, the share of coal being produced by captive/commercial mines is increasing year on year,” the source said. During FY 2023-24, 153 MT coal has been produced by captive/commercial mines which is 15.34 percent of the total production, whereas in FY 2022-23, these mines produced 122 MT coal which was 13.67 percent of the total production. During FY 2024-25, captive/commercial mines are likely to contribute over 16 percent.

“This is helping in higher availability of coal in the open market. Enhanced production from captive/commercial mines is adding to the self-sufficiency of some of the larger FSA (Fuel Supply Agreement) holders. Therefore, dependency on CIL is reducing. This is helping in the reduction of the auction price of coal,” said the source.

India’s peak power demand hit the season’s high of 236.59 GW on May 23 mainly due to intense heatwave conditions prevailing across most of India

New Delhi: India’s peak power demand hit the season’s high of 236.59 GW on May 23, a day after touching 235.06 GW, mainly due to intense heatwave conditions prevailing across most of India and increased use of cooling appliances like air conditioners and coolers. According to official data, the peak power demand of 236.59 GW was registered during solar hours at 3.59 pm and there was a shortfall in supply of 35 MW. This is the highest peak power demand on record this Summer season and is higher than what the Ministry of Power had projected for May.
 

Earlier this month, the power ministry projected a peak power demand of 235 GW during daytime and 225 GW during evening hours for May and 240 GW during daytime and 235 GW during evening hours for June 2024. In the last Summer season, India had registered an all-time high peak power demand of 243.27 GW in September 2023. The record is likely to be broken this as Mercury continues to soar. The Ministry of Power has projected that the peak power demand is likely to hit 260 GW during this summer.

The official data shows that peak power demand was 224.18 GW in April, when Summer season began in India. During May, peak supply hit 233 GW on May 6 and 233.80 GW on May 21.
In March, the India Meteorological Department (IMD) projected that India is likely to experience a warmer summer and more heatwave days this year, with El Nino conditions predicted to continue at least until May. From March to May, the number of heatwave days is likely to be above normal over most parts, except northeast India, the western Himalayan region, the southwest peninsula and the west coast, it stated.

According to the skillset statistics shared by HUL in its annual report for the year 2023-2024, the company found out that while 92% of its Board had leadership experience, barely 33% were aware about the details of cybersecurity, data governance and information technology.

Consumer goods company Hindustan Unilever Ltd. (HUL) is overhauling the skill sets its top leadership—the Board — to keep pace with the changing times and be aligned to the demands of the consumer. 

India’s largest packaged consumer goods company Board will now have to get into the details of cybersecurity, ESG (environmental, social, and governance), data governance among other topics that will impact the firm's growth and talent retention capabilities going ahead.

"In the last few years, the external environment in which the Company operates and the regulatory framework governing it have undergone significant changes. With an ever-increasing focus on cyber security, artificial intelligence, Environmental, Social and Governance (ESG) aspects, risk management, the skills/capabilities required of Directors in the context of business for efficient functioning of the Board has also evolved," said the company in its annual report for the year 2023-2024. 
 

"In view of the above, the Board of Directors based on the recommendation of the Nomination and Remuneration Committee approved and adopted the revised Board Skill Matrix of the Company on 26th February, 2024," the report added.

HUL will become among the first of the large companies which officially adopts an additional set of skill sets that its Board must have. Wile earlier some of the prominent skill sets were defined as a must have for the Board, this is the first time HUL has measured the extent of these skill sets that the directors have.
 

According to the skillset statistics shared in the report, HUL found out that while 92% of its Board had leadership experience, barely 33% were aware about the details of cybersecurity, data governance and information technology. The entire Board was aware and skilled in need for having a "business with a purpose" while 75% had "experience of overseeing large and complex business operations requiring proven administrative and managerial skills".

The company's board currently comprises Nitin Paranjpe, Rohit Jawa, Leo Puri, Kalpana Morparia, Tarun Bajaj, Neelam Dhawan, among others.
 

HUL has a portfolio of over 50 brands, spanning 16 FMCG categories. In FY24, the company reported a turnover of ?59,579 crore. The consumer firm's governance structure is multi-tiered, comprising the Board of Directors, Board Committees, CEO & MD and the management committee.

In April, the company had announced the appointment of B.P. Biddappa to HUL management committee as executive director, human resources and chief people, transformation and sustainability officer for South Asia. Biddappa's role is to lead the people's agenda for South Asia as well as drive the transformation interventions from a business, organization, and sustainability perspective.

The Congress appears set to snatch more than half the seats in Haryana. It could even be a reverse sweep this time.

As the Lok Sabha election turns towards north west India in its final stages, the BJP’s worries are set to get bigger, especially in the three PHD States—Punjab, Haryana and Delhi. While Punjab will vote in the last round a week from now, the penultimate phase will see 10 seats of Haryana and seven seats of Delhi going to polls. Voting will also take place in 40 seats spread across eastern India comprising the Poorvanchal region of Uttar Pradesh and parts of Bihar, Jharkhand, West Bengal and Odisha. The Anantnag-Rajouri seat of Jammu & Kashmir, which was set to vote in the third phase, also goes to the polls.

Of the 58 seats that go to polls in the sixth phase, the BJP had won as many as 40 in the 2019 Lok Sabha election and its NDA allies another five. The Congress, on the other hand, could not win a single seat five years ago, while other INDIA constituents won five. Bahujan Samaj Party and Biju Janata Dal won four each. The subsequent Assembly elections somewhat balanced the equation—INDIA alliance parties led in 22 seats. Although this calculation need not hold in the Parliamentary elections, ground reports suggest that BJP faces headwinds everywhere except Bengal and Odisha.

Haryana and Delhi are in the midst of a blistering heat wave and could possibly be on the verge of an electoral wave as well. On paper, Haryana looks like a safe bastion for the BJP. The party swept all 10 seats, mostly by huge margins, in 2019 and led in eight seats in the subsequent Assembly elections. But many factors have suddenly come together to turn the tide. The farmers’ movement prepared the ground to give expression to latent unease with the ruling dispensation. It induced the dominant peasant community to shift to the Congress.

The BJP’s hopes rested on a Jat/non-Jat divide that does not seem to have materialised, thanks to widespread unease on livelihood issues such as price rise, unemployment and intense disapproval of the Agniveer scheme. Besides, the Congress has carefully balanced the social profile of its candidates by giving only two seats to Jat candidates and thus blunted possible polarisation.

Changing the CM on the eve of Lok Sabha polls has not worked. It has left the state government tottering with prominent leaders deserting the BJP. What adds to Congress’s advantage is that the Indian National Lok Dal (INLD) and Jannayak Janta Party (JJP), the two Jat-Centric parties representing the third pole of Haryana politics, have been pushed to the margins this time. The Congress appears set to snatch more than half the seats. It could even be a reverse sweep this time.

Another upset awaits the BJP in neighbouring Delhi where the ruling Aam Aadmi Party and the Opposition Congress have buried their differences for the time being and are, for the first time, jointly fighting the elections against their common foe, the BJP, with a four-three seat arrangement. While the BJP won all seven seats in the 2019 Lok Sabha elections with staggering margins, the AAP had reversed the lead everywhere in the Assembly polls.

Going by the results of the last Parliamentary election, the alliance between AAP and Congress may not be enough to take on the BJP. But, both the parties have had a similar support base—working class, Dalit and Muslim—that makes vote transfer between them easy even without the requisite effort by the respective organisations. Besides, the arrest of Arvind Kejriwal has brought him, rather than Modi to the centre stage, notwithstanding the recent and damaging controversies. The BJP has had to contend with dissatisfaction with its MPs and replace six of its seven sitting MPs.

Piling inventory, spike in cost of imported coking coal strain SAIL’s finances
SAIL’s debt surged 19 per cent year-on-year to ?30,500 crore in FY24, driven by higher inventory, lower-than-expected price realisation from railway orders, and rising cost of imported coking coal. In the first two months of the current fiscal year, its debt climbed another 17 per cent to ?35,000 crore.
In FY21, the state-owned steel-maker’s borrowings were at a high ?35,350 crore, which it lowered to ?13,386 crore in FY22. However, the debt inched up from FY23, primarily on account of metal price volatility and rising raw material costs.
During FY24, SAIL’s borrowing stood at ?29,414 crore at Q1-end (April to June); ?25,490 crore at the end of Q2; ?28,127 crore at Q3-end; and shot up by 6 per cent in the last quarter.
 

According to Praveen Nigam, Executive Director–Finance and Accounts, SAIL was expecting improved realisations with long products witnessing 12-13 per cent price rise between April and May. This would be aided by a softening or stability in coking coal import prices — which are hovering at $239–240 per tonne. Renegotiation of prices with the Railways is underway too.

“All this put together would help pare debt “below ?30,000 crore levels,” Nigam said.
 

Domestic demand is expected to sustain with rthe government’s thrust on infra; the SAIL management has guided for a 13-14 per cent growth in steel consumption and production in FY25.

The company is targeting crude steel production of over 20 mt and saleable steel at 19 mt for the ongoing fiscal.

“We had over 1.6 million tonnes of inventory beginning FY25, and in these two months it was down by 2.09 lakh tonnes. Borrowings were over ?30,500 crore and, in this quarter, borrowings increased on account of high inventory, lower realisation,” Nigam said during the post-earningsinvestor call.

“At present (mid-May) our borrowing is to the tune of ?35,000 crore… coal prices are coming down and we expect them to be softer this fiscal; (incremental) realisation from Railways is expected to increase, and NSR (net sales realisation) will not come down further. So we are hopeful that our borrowings will be below ?30,000 crore levels for the fiscal,” he said.

In Q4FY24, the long net sales realisation stood at ?55,400 per tonne and the price of flat steel product was ?53,700 per tonne. Price of long steel products is expected to be around ?54,600 per tonne in Q1, while for flats it is ?53,500 per tonne.
 

SAIL’s modernisation and capacity addition plans, valued at ?100,000 crore, are set to gain momentum from October. The first phase of tenders for capacity ramp-up at IISCO Burnpur are being considered.

Plans are underway to establish a 4.1-mt greenfield flat steel facility at IISCO, primarily focused on hot rolled coils. Construction of the CRC facility will follow subsequently.

The capital expenditure for FY25 is earmarked at ?6,300 crore.

Under phase-I, SAIL is seeking board approval for the Rourkela steel plant. Additionally, for the 1 million tonnes per annum TMT facility at Durgapur, the pre-feasibility report has been prepared.