S&P downgrade may impact TCS, other IT stocks
S&P Global Ratings has revised the outlook for Tata Consultancy Services to Stable from Positive. The global rating major affirmed the 'A' long-term credit rating on the company, saying that TCS is likely to face slower growth in revenue and profitability over the next 12-18 months.
The rating agency still expects TCS to benefit from its good market position, service delivery capabilities and client relationships to tap demand for digital and workplace solutions, to mitigate the weaknesses.
“The stable outlook reflects our view that TCS will maintain its good competitive position, robust cash holdings, and strong operating cash flows over the next 12-24 months. We also expect the company to pursue conservative financial policies toward acquisitions and shareholder distributions," S&P Global said.
Not only TCS, even other IT companies' stocks may come under pressure.
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A fund infusion of Rs 120 crore from “marquee, high networth investors” is likely to boost the share price of VA Tech Wabag. In a note to the stock exchnges, the company said its board on Tuesday considered the Letters of Consent received from “marquee, high networth investors” and approved capital infusion aggregating to Rs 120 crore.
The proposed investors include Rekha Rakesh Jhunjhunwala, Sushma Anand Jain, Anand Jaikumar Jain and Basera Home Finance Ltd.
The issue of equity shares on preferential basis to the proposed investors is subject to approval at the annual general meeting scheduled to be held on September 23, the company said.
“We would like to extend a warm welcome to all the potential incoming investors, each of whom enjoys a high level of respect and credibility in the financial markets ecosystem. This is the first time the company has proposed to raise equity capital since its IPO in 2010,” MD, Rajiv Mittal, said.
JMC Projects to build on Rs 554-cr order
JMC Projects (India) has secured new orders worth Rs 554 crore. The civil engineering and EPC company bagged a Rs 315-crore order for a building project in South India, and another Rs 239 crore order for a factory project in Maharashtra
SK Tripathi, CEO & Dy. Managing Director, said the company has won orders of around Rs 4,000 crore till date in FY21 despite the challenging market conditions, demonstrating JMC's 'impeccable reputation for domain expertise, prudent tendering and client confidence.'
Shareholders and investors will closely monitor the execution of the projects.
FDC may turn healthy as it eyes Covid-19 segment
FDC on Tuesday announced the launch of Favipiravir-PiFLU and Favenza, which will be used to treat mild to moderate cases of Covid-19 in India. With the third largest number of cases globally at close to three million, and a growing daily increase rate, the economy and populace have been hit hard by the pandemic over the past two quarters.
Earlier this year, the Drug Controller General of India (DCGI) approved the use of Favipiravir, an off patent, oral anti-viral drug that has been shown to quicken clinical recovery in Covid-19 patients with mild to moderate symptoms. It is a broad spectrum anti-viral agent, and selectively inhibits RNA polymerase of influenza and Sarcov-2 virus and prevents viral replication.
GOCL Corp's promoters to cut stake
Hinduja Capital Ltd, Mauritius, promoter of GOCL Corp Ltd, will cut its shareholding in the company by about 1.1 per cent to 73.83 per cent in a bid to expand its business in the defence sector.
"This will enable the company to take up and expand its business in the defence sector," GOCL Corp informed the exchanges on Tuesday. The shareholding of Hinduja Capital, which has been classified as foreign direct investment, needs to be below 74 per cent for it to be eligible for defence contracts.
The stake sale will take place in the open market through the stock exchange mechanism by way of bulk or block deals. The promoter plans to complete the sale within a week.