Author: Ajay Vaishnav

Exclusive | Behind the scenes: $20 billion Godrej family separation-Sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In one of the largest and most complex family separations in the Indian conglomerate space, the Godrej family has sealed the deal after five years of hectic negotiations. Sources indicate the enterprise value of the family ownership in the group is worth $20 billion, arrived at as the final deal.

CNBC-TV18 has accessed exclusive details of the family realignment, which impacts Godrej Properties, the usage of the Godrej brand and the upcoming share sale to remove cross-holdings.

Industry stalwarts Uday Kotak, Cyril Shroff, Zia Mody and Nimesh Kampani were involved by the Godrej family to advise on the separation in 2019 when CNBC-TV18 first broke the story on the family split.

Uday Kotak spoke exclusively with CNBC-TV18 and shared, “the Godrej family is a family of high integrity and high quality. They are subtle, but they do things in style. Even the next generation will flourish in the future.”

Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas, said, “It was a complex and long-drawn process, but the Godrej family was very respectful in genuinely taking professional advice. Godrej family had a dignified approach and aimed at preserving family harmony. The family was quite cognisant of the dignity of their brand and family values through the process.”

People with direct knowledge of the development told CNBC-TV18 that a “massive” role was played by the advisors to the deal in settling the matter in-house.

Key Disputes

Insiders to this transaction share with CNBC-TV18 that the advisors played a crucial role in resolving most disputes between the family members to close the deal amicably. The important points of dispute between the family members involved—Godrej brand usage and Vikhroli land ownership leading to the relative valuation of listed and unlisted companies in the group.

Vikhroli Land Ownership

While a large part of the initial dispute started with the ownership of this large land parcel in the outskirts of Mumbai in Vikhroli, the two family factions have continued with the arrangement of Godrej Properties retaining the RoFR or Right of First Refusal whenever the owner Godrej & Boyce decides to develop the land.

A bulk of the negotiation revolved around this issue and sources indicate that a re-work in the arrangement would have required a shareholders’ approval from Godrej Properties.

Sources with direct knowledge suggest that “the MoU is substantially retained but obligations on Godrej Properties have been upgraded as part of the separation agreement.” Another source pointed out that the “material impact of the obligations on Godrej Properties will need to be seen in the fine print.”

Valuation

A source shares that the relative valuation of the listed & unlisted entities of the Godrej Group was the most complex matter in the discussions.

A source with direct involvement shared, “Around $20 billion is the enterprise value of the family ownership of the group as per the valuations agreed upon.”

Godrej Brand

Sources suggest that it has been agreed that Godrej Enterprises Group GEG and Godrej Industries Group GIG can use the Godrej brand name since it’s their family name, but logo differentiation will have to be actioned. Sources indicate “Jamshyd Godrej’s, GEG will change the logo and the time period for this transition is likely to be one year.”

Realignment Of Shareholding

“There is going to be no trigger for an open offer in the process of separation through share un-entanglement.” A source shared, adding that, “share cross holding will get resolved via inter-se family share transfers on the exchanges in the listed companies of the group.”

Each of the family factions has retained control of their group companies, and the process over the next few months will see shares change hands to execute the separation, sources shared with CNBC-TV18.

The Turning Point

Sources share that while there were many sticky issues to discuss, COVID-19 had stalled the entire process, and the discussions were slow and sporadic during the pandemic.

The pick-up in the final resolution of the issues took a turn when Adi Godrej decided to step aside from the discussions at the same time as he stepped down as chairman of Godrej Industries in August 2021. Adi Godrej is said to have advised the family to settle the matter conclusively.

Another source says, “Jamshyd Godrej, in some ways, was the final glue who brought about the consensus amongst the next generation of the family.”

It has been a mammoth task to conclude a large family separation, and a lot of directly linked sources suggest that after several years, the “fatigue factor” also drove the transaction to a harmonious settlement in the end.

Queries sent to Godrej Group regarding all the details mentioned have not yet received any comment.

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Jindal Stainless announces ₹5,400 crore strategic investments for capacity expansion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a bid to become one of the largest steel producers in the world, Jindal Stainless announced major expansion and acquisition plans to augment its melting and downstream capacities as part of a three-pronged investment strategy worth nearly ₹5,400 crore.

Jindal Stainless entered into a joint venture for developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA), the company said in a statement. This will increase the company’s melting capacity by over 40% to 4.2 MTPA at an investment of more than ₹700 crore.

Secondly, Jindal Stainless has set aside around ₹1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to be able to process an increase in melting capacity. Besides, the company earmarked nearly ₹1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.

Thirdly, the company will acquire a 54% equity stake in Chromeni Steels Pvt. Ltd (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal. The transactions entail an outlay of around ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase.

At a press briefing, Jindal Stainless Managing Director Abhyuday Jindal said, “With these acquisitions and investments, we have orchestrated a clear growth plan to become one of the leading players in the world. The Indonesian JV will get us the best of speed and raw material security, and the augmentation of the Japur lines will offer enhanced value for domestic and export customers. The cold rolling mill at Chromeni will expand our outreach, both in India as well as abroad, and strengthen our presence in the value added segment in the long term.”

Jindal Stainless has an annual turnover of $4.3 billion or ₹35,700 crore in FY23 and has 3 million tonnes of annual melt capacity, the statement added.

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Exclusive | A blend of subtlety and style: Uday Kotak praises Godrej Family settlement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Veteran banker Uday Kotak, who was one of the four key advisors to the Godrej family separation, told CNBC-TV18, “The Godrej family is known for their high integrity and quality. They have a subtle yet stylish approach to everything they do.”

Reflecting on his longstanding relationship with the Godrej group on the occasion of the amicable family separation, Kotak remarked, “Kotak Bank and I have had a close relationship with the Godrej family since 1993. We had the privilege of taking the first company from the Godrej Group, Godrej Soaps, public. Over the years, we have provided advice on various group and family matters.”

The family negotiations lasted for five years and involved tackling complex issues such as the relative valuation of listed and unlisted companies, Vikhroli land ownership, and the usage of the Godrej brand.

Kotak, along with Cyril Shroff, Nimesh Kampani, and Zia Mody, served as advisors to the family, as reported by CNBC-TV18 in June 2019.

Following five years of negotiations, the family reached a consensus on all matters to finalise the split in the Godrej Group.

Assessing the potential of the separated groups post-split, Kotak sounded confident that “the next generation will flourish in the future.”

Several people directly involved in the separation process confided in CNBC-TV18 that the advisors played a “massive and critical role” in the successful resolution of such a complex discussion, which concluded amicably.

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April Auto Sales LIVE Updates: Bajaj Auto’s sales up 17% YoY, Mahindra sees 13% rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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April Auto Sales LIVE Updates: Some automobile companies reported their April sales numbers. With waiting periods in the cars or passenger vehicles segment going down, modest growth is expected in the segment. In contrast, two-wheelers are likely to have witnessed good growth on the back of marriage season, according to analysts. The truck segment shall see mid-single-digit growth, analysts indicated.

Here’s how the leading automakers in India performed in April:

Bajaj Auto

Bajaj Auto reported a rise in sales that surpasses estimates, primarily driven by a robust domestic performance. The total sales have seen a year-on-year (YoY) increase of 17%, reaching 3.88 lakh units.

The domestic sales have matched the total sales growth, with a 17% YoY increase, amounting to 2.49 lakh units. However, the company’s exports, while up by 18% YoY at 1.39 lakh units, have remained a concern as they were lower than the estimates.

Mahindra & Mahindra

Mahindra & Mahindra (M&M) reported a higher than estimated increase in sales. The total auto sales have seen a year-on-year (YoY) rise of 13%, reaching 70,471 units.

The SUV segment continues to lead the auto sales, with an 18% YoY increase, amounting to 41,008 units. This growth in the SUV segment has significantly contributed to the overall rise in auto sales. Meanwhile, the company’s tractor sales have also seen a modest YoY increase of 2%, with 37,039 units sold.

Ashok Leyland

Commercial vehicle manufacturer Ashok Leyland announced a 10% rise in total wholesale figures for April, reaching 14,271 units. This is an increase from the 12,974 units sold in the same month the previous year. The company’s domestic sales also saw a growth of 9%, with 13,446 units sold last month, compared to 12,366 units in April 2023.

In the medium and heavy commercial vehicle segment, the domestic market witnessed a 16% increase in sales. The company sold 8,611 units, a significant rise from the 7,422 units sold in the same month last year. However, the light commercial vehicle segment experienced a slight dip of 2% in sales, with 4,835 units sold, down from 4,944 units in the corresponding month the previous year.

Hero MotoCorp

Hero MotoCorp reported sales of 533,585 motorcycles and scooters in April 2024, a significant increase of 34.7% compared to April 2023, when it sold 396,000 units. This also represents a sequential growth of 9% over March 2024, during which the company sold 490,415 units.

Honda Cars India

Honda Cars India has reported a significant 42% increase in sales for April, selling 10,867 units compared to 7,676 units in the same month last year. The company’s Vice President (Marketing & Sales), Kunal Behl, attributed the lower production volumes in April to the transition of Elevate and City production to six-airbag standard variants.

In the domestic market, the automaker sold 4,351 units last month, a decrease from the 5,313 units sold in April the previous year. However, overseas sales saw a substantial increase, with 6,516 units sold compared to 2,363 units in April last year.

Behl highlighted the significant role of the Elevate model in boosting the company’s export volume, which grew by a remarkable 175% over the same period last year. The dispatches were aligned with the planned production volumes, he added.

Royal Enfield

Royal Enfield, the motorcycle manufacturer, has reported a 12% increase in total sales for April, with 81,870 units sold compared to 73,136 units in the same month the previous year.

The company’s domestic sales saw a 9% rise, with 75,038 units sold last month, up from 68,881 units in the year-ago period.

Meanwhile, Royal Enfield’s exports experienced a significant 61% increase, with 6,832 units exported last month, a substantial rise from the 4,255 units exported in April the previous year.

Maruti Suzuki India

Maruti Suzuki India (MSI) has reported a 4.7% increase in total sales for April, with 1,68,089 units sold compared to 1,60,529 units in the same month the previous year.

Domestic passenger vehicle sales remained steady, with 1,37,952 units sold last month, slightly up from 1,37,320 units in the year-ago period. However, sales of mini segment cars, including the Alto and S-Presso, saw a decline, with 11,519 units sold as against 14,110 units in April the previous year.

Sales of compact cars, such as the Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, also experienced a drop, with 56,953 units sold last month compared to 74,935 units in the year-ago month. In contrast, utility vehicles, including the Brezza, Ertiga, S-Cross, and XL6, saw an increase in sales, with 56,553 units sold last month, up from 36,754 units the previous year.

Hyundai Motor India

Hyundai Motor India has reported a 9.5% year-on-year increase in total sales for April, with 63,701 units sold compared to 58,201 units in the same month the previous year.

Domestic sales saw a modest 1% increase, with 50,201 units sold last month, up from 49,701 units in the year-ago period. This marks the fourth consecutive month of domestic sales exceeding 50,000 units, according to Hyundai Motor India’s COO, Tarun Garg.

Meanwhile, exports experienced a significant 59% increase, with 13,500 units exported in April this year, a substantial rise from the 8,500 units exported in April the previous year. Garg highlighted the role of models like the Creta, Venue, and Exter in driving growth, with SUVs contributing to 67% of the automaker’s domestic sales.

Toyota Kirloskar Motor

Toyota Kirloskar Motor has reported a 32% year-on-year increase in total sales for April, with 20,494 units sold compared to 15,510 units in the same month the previous year. The company’s domestic sales accounted for the majority of these sales, with 18,700 units sold last month. Meanwhile, exports totalled 1,794 units.

This growth was achieved despite a week-long maintenance shutdown from April 6, which was necessary for the upkeep of machinery and equipment to sustain operational efficiencies, productivity, and safety, according to the company.

MG Motors India

MG Motors India has reported a slight 1.45% year-on-year decline in retail sales for April, with 4,485 units sold compared to 4,551 units in the same month the previous year.

The company highlighted the significant role of its electric vehicle (EV) portfolio, which contributed to 34% of the total units sold during this period.

Ola Electric

Ola Electric has expanded its market share to over 50% in April, selling 33,934 electric two-wheelers, despite a broader 52% slump in overall EV two-wheeler sales to 64,013 units from the preceding month, according to data from the Vahan website.

This overall decline in sales is attributed to April being a seasonally slow sales period and demand tapering down post-festive season. However, Ola Electric’s sales have also come down by 34.8% month-on-month. Last year in April, Ola Electric sold nearly 22,068 units.

TVS Motor sales up 25% in April at 3,83,615 units

TVS Motor Company on Wednesday said its total sales increased 25% year-on-year to 3,83,615 units in April 2024 as compared with the same month last year. The company had dispatched 3,06,224 units to its dealers in the same month last year, TVS Motor Company said in a statement.

Total two-wheeler sales last month stood at 3,74,592 units as against 2,94,786 units recorded in April 2023. Two-wheeler sales in the domestic market grew by 29 per cent to 3,01,449 units last month from 2,32,956 units in April 2023.

Total exports registered a growth of 12% with sales increasing from 71,663 units in April 2023 to 80,508 units last month. Three-wheeler sales declined to 9,023 units in April 2024 from 11,438 units in the same month last year.

Eicher Motors

Eicher Motors’ total VE Commercial Vehicles sales fall 18.1% to 5,377 units against 6,567 units in the previous year.

Atul Auto

Atul Auto’s total sales in April rose to 1,692 units, up from 715 units in the corresponding month a year ago.

Tata Motors sales rise 11.5% to 77,521 units in April

Tata Motors on Wednesday said its total wholesales rose 11.5% year-on-year to 77,521 units last month as compared with 69,599 units in April 2023. The company’s total domestic dispatches rose 12% to 76,399 units last month as against 68,514 units in April 2023, the auto major said in a statement. Total passenger vehicle sales rose 2% to 47,983 units last month from 47,107 units in April 2023. Total commercial vehicle sales stood at 29,538 units last month, a jump of 31% as compared to 22,492 units in April 2023.

April #AutoSales | Tata Motors

⚡️Total Sales Up 11.4% At 77,521 Units Vs 69,599 Units (YoY)

⚡️Total PV Sales Up 2% At 47,983 Units Vs 47,107 Units (YoY) pic.twitter.com/jpclWWEj6O

— CNBC-TV18 (@CNBCTV18Live) May 1, 2024

Escorts Kubota

Escorts Kubota reported a year-on-year decline in the total tractor sales in April. The domestic tractor sales came at 7,168 units, 1.2% lower than 7,252 units sold in April 2023.

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Godrej family split settled: Adi, Nadir retain listed firms; cousin Jamshyd gets unlisted companies, land bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The 127-year-old Godrej Group’s founding family has finalised an agreement to divide the FMCG-to-home appliances-to-real estate conglomerate between two branches, with Adi and Nadir on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other, according to an exchange filing.

The 82-year-old Adi Godrej and his brother Nadir (73) retain control over Godrej Industries and its listed entities, while the cousins Jamshyd (75) and Smita (74) will take ownership of the unlisted Godrej & Boyce along with its affiliates and a substantial land bank, including a prime property in Mumbai.

The development confirms the CNBC-Awaaz newsbreak earlier in the day that the finalised agreement would be released shortly.

Under the agreement, Godrej Enterprises Group (GEG), encompassing Godrej & Boyce and its affiliates spanning various industries, will be helmed by Jamshyd Godrej as chairperson and managing director, with Nyrika Holkar (42), Smita’s daughter, serving as executive director.

The control of this arm, which also holds a significant land bank including 3,400 acres of prime land in Mumbai, will rest with Jamshyd’s family. GEG and its affiliates have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software.

Meanwhile, Godrej Industries Group, comprising the listed firms of the conglomerate, will be chaired by Nadir Godrej and controlled by Adi, Nadir, and their immediate families. Pirojsha Godrej, Adi’s 42-year-old son, will hold the position of executive vice chairperson and will succeed Nadir as chairperson in August 2026, the statement added.

The Godrej family described the split as “an ownership realignment,” of the shareholdings in the Godrej companies.

“The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members… This will help maximise strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders,” the statement said.

Both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage, it added.

To facilitate the split, members from both sides resigned from the boards of companies from opposing sides. Adi and Nadir Godrej resigned from the Godrej & Boyce Board, while Jamshyd Godrej left his seat on the boards of GCPL and Godrej Properties.

Commenting on the future outlook, Jamshyd Godrej said: “Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high-tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses”.

Nadir Godrej said, “Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause – the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better—continue to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility”.

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Sona BLW posts highest quarterly revenue, EBITDA and net profit led by strong EV segment show

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sona BLW Precision Forgings Ltd (Sona Comstar) announced a robust set of financial results for the quarter and year ended March 31, 2024, on Tuesday, April 30. The automotive tech major’s revenue in the January-March quarter rose 19% on a year-on-year (YoY) basis to ₹885 crore.

A substantive 32% share of this revenue, came from battery electric vehicles (BEV), with BEV revenue experiencing a strong 34% YoY jump.

Sona BLW’s EBITDA came in at ₹248 crore with a margin of 28.0% and a sharp 23% YoY growth. The auto ancillary major’s profit after tax (PAT) stood at ₹149 crores with a net profit margin of 16.7% and growing 24% YoY.

Electric Vehicles (EVs) programs contributed a significant 79% to the net order book, which totaled ₹22,600 crores as of March 31, 2024, highlighting the company’s strong positioning and growth trajectory in the rising segment.

Sona BLW annual financial results

For the full financial year, Sona BLW posted a revenue of ₹3,185 crore, riding on strong 19% YoY growth. Revenue from BEV accounted for 29% of the total revenue and saw a 32% YoY growth.

Sona BLW’s EBITDA reached ₹902 crore with a strong margin of 28.3%, while the profit after tax (PAT) jumped 31% YoY to ₹517 crore with a net profit margin of 16.3%.

Sona BLW’s net order book stands at ₹22,600 crore in FY2023-24, compared to ₹21,500 crore in the preceding financial year.

What Sona BLW management said on results

Commenting on the quarterly and annual financial performance, Sona BLW’s MD and Group CEO Vivek Vikram Singh said, “We achieved our highest quarterly revenue, EBITDA and net profit in Q4 FY24… We closed FY24 with a strong order book, which gives us the confidence to sustain growth momentum in FY25 and beyond. We continue to build on our EV order book, and in Q4, we added one new EV program to supply differential assemblies to an existing customer in North America. Overall, we added 12 new EV programs and four new EV customers during the year, further growing and diversifying our EV order book.”

Sona BLW dividend

The Board of Sona BLW also recommended the final dividend of ₹1.53 per equity share of the Company having face value of ₹10 each for the financial year 2023-24 to the shareholders of the Company. The Board has fixed June 14 as the record date for determining the eligible shareholders and the dividend will be paid on or before 30 days once approved at the 28th AGM of the company.

Sona Comstar’s new CTO

The company also informed that its Group Chief Technology Officer (CTO), Kiran Deshmukh, has decided to retire after nearly four decades with the Sona Group and the last eight years with the company. He will continue until October 31, 2024, to guide the organisation through the transition period.

Sona Comstar has appointed Praveen Chakrapani Rao as the new CTO, effective November 1, 2024.

It also informed exchanges that a new manufacturing plant in Fipasi Industrial Park, Silao, Mexico was recently inaugurated on April 19, 2024.

Sona Comstar was founded in 1995 and is headquartered in Gurugram, India.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI Board meeting: Key amendments for REITs and InvIT investments, VC, MFs and MIIs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Market Regulator SEBI, in its board meeting, approved a series of amendments around REITs and InvITs investments, venture capital (VC) funds, mutual funds, and market infrastructure institutions (MIIs). The decision was taken in SEBI’s 205th board meeting. This is the second board meeting after March 15.

Here’s a list of all important announcements from the SEBI board meeting today:

SEBI on REITs & InvIT investments

SEBI, in its board meeting, approved the proposal to provide a framework for Unit Based Employee Benefit (UBEB) schemes for the employees of investment manager/manager of InvIT/REIT. The investment manager can now receive units of InvIT/REIT in lieu of management fees, for the purpose of providing unit-based employee benefits. Such units shall be allotted directly to the Employee Benefit Trust so that these units are used exclusively for the UBEB scheme.

Flexibility to venture capital funds

SEBI has allowed some relaxations for Venture Capital Funds wanting to migrate to the new SEBI (Alternative Investment Funds) Regulations, 2012 (‘AIF Regulations’) and have not been able to fully liquidate their positions before doing so. Such VC funds will have the option to migrate into AIF Regulations and avail the facilities available for such AIFs to deal with unliquidated investments.

Level-playing field for passive mutual fund equity schemes

To create a level playing field for all mutual fund equity schemes, SEBI has approved amendments to allow equity passive schemes, on indices to be specified by SEBI, to take exposure up to the weightage of the constituents in the underlying index. This exposure would be subject to an overall cap of 35% investment in the group companies of the sponsor.

Currently, mutual fund schemes are not allowed to invest more than 25% of their net asset value (NAV) in group companies of the sponsor. This restricts the passive funds from effectively replicating the underlying index, in cases where group companies of sponsor comprise more than 25% of the index. This also puts such AMCs at a relative disadvantage as compared to other AMCs who may not have a sponsor group of companies comprising more than 25% in the underlying index.

Institutional mechanism for deterrence of potential market abuse including front-running at AMCs

Considering the recent front-running instances observed by SEBI, the market regulator approved amendments to mutual funds regulations for enhancing the existing regulatory framework by requiring Asset Management Companies (AMCs) to put in place a structured institutional mechanism for identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities. The mechanism shall consist of enhanced surveillance systems, internal control procedures and escalation processes to identify, monitor and address specific types of misconduct including front running, insider trading, and misuse of sensitive information. In this regard, SEBI has also approved amendments to the Regulations to a) enhance responsibility and accountability of management of AMCs for such an institutional mechanism; and b) foster transparency by requiring AMCs to have a whistle-blower mechanism.

SEBI also approved an exemption to the requirement of recording face-to-face communication, including out-of-office interactions, during market hours. This exemption would be applicable after implementation of the institutional mechanism by the AMCs

Ease of doing business for market infrastructure institutions (MIIs)

SEBI, in its board meeting, also approved a slew of measures to ease out compliance requirements for MIIs like exchanges, depositories and clearing corporations.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exclusive: Godrej Group may finalise family settlement shortly, says CNBC-Awaaz report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Godrej Group may finalise a family settlement shortly, according to a CNBC-Awaaz report on Tuesday, April 30. The family group led by Adi and Nadir Godrej is likely to assume control over the majority of the listed companies within the conglomerate, the report added.

The Godrej family settlement was ‘locked’ today with the elegance and dignity that the family is known for. No controversies, just all clean like their soaps. Good Knight!

— Harsh Goenka (@hvgoenka) April 30, 2024

Meanwhile, control over privately-held Godrej & Boyce is likely to shift to Jamshyd Godrej and Smitha Godrej. The settlement agreement is expected to address critical issues such as royalty, brand usage, and the development of the land bank, the report added.

Control over the group’s unlisted companies and land bank development is poised to be under the purview of Jamshyd Godrej and Smita Godrej. CNBC-Awaaz queries mailed to the Godrej Group remain unanswered.

#CNBCAwaazExclusive | Godrej Group may finalise family settlement shortly. Adi &Nadir Godrej family group likely to control most listed companies & Godrej & Boyce manufacturing company control likely to be with Jamshyd Godrej & Smitha Godrej, sources to @YatinMota pic.twitter.com/WGRNCrDUXb

— CNBC-TV18 (@CNBCTV18Live) April 30, 2024

The Godrej Group: A background

The Godrej Group includes five publicly listed companies: Godrej Consumer Products Ltd, Godrej Properties, Godrej Industries, Godrej Agrovet, and Astec Lifesciences.

Source: BSE

Godrej and Boyce operate as a private entity. Godrej Industries & Associates is led by Adi and Nadir Godrej, while Jamshyd Godrej and his sister head Godrej & Boyce (G&B).

The $4.1 billion Godrej Group was established in 1897 by lawyer-turned-serial entrepreneur Ardeshir Godrej. Approximately 23% of the promoter holding in the Godrej Group is held in trusts that invest in the environment, health and education, as per the company’s website.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maharatna PSU infra firm REC’s profit spikes as lender recovers unpaid dues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infrastructure finance firm REC Ltd, formerly known as Rural Electrification Corporation Ltd, posted a robust performance in the fourth quarter of the financial year 2023–24 on Tuesday, April 30, aided by a notable provision write-back.

A leading maharatna public sector undertaking (PSU), REC recorded a provision write-back of ₹711.9 crore, compared to an expense of ₹56 crore in the previous October-December quarter or Q3FY24, which significantly boosted its profit after tax (PAT) to ₹4,016.3 crore, rising by 33.84% on a year-on-year (YoY) basis. REC net profit, or PAT, in Q4FY23 came in at ₹3,00.9 crore.

REC net interest income (NII) surged to ₹4273 crore, marking a significant 25.4% YoY growth over ₹3,407 crore it had posted in Q4FY23.

#4QWithCNBCTV18 | REC reports #Q4 earnings

➡️Net Profit up 34% At ₹4,016.3 Cr Vs ₹3,00.9 Cr (YoY)

➡️ NII up 25% At ₹4,273 Vs ₹3,407 Cr (YoY)

➡️REC profit aided by impairment amount of ₹712 Cr

➡️Credit w.r.t impairment at ₹712 cr vs expense of ₹56 cr QoQ

➡️Gross NPA at… pic.twitter.com/1cJMIy7Ddg

— CNBC-TV18 (@CNBCTV18Live) April 30, 2024

REC reported a substantial addition in Other Income, reaching ₹474.8 crore, soaring by 115.5% YoY.

REC’s operating expenses rose to ₹311.4 crore, reflecting a 130.5% YoY and 83.2% QoQ surge, resulting in a cost-to-income ratio of 6.56%. REC’s loan sanctions were at ₹3,287 crore, down nearly 57% on a YoY basis.

For the entire FY24, the company’s net profit was ₹14,145.46 crore, up from ₹11,166.98 crore in FY23. The income also rose to ₹47,571.23 crore in FY24 compared to ₹39,520.16 crore a year earlier.

REC dividend news and share price performance

The board of the firm also announced a final dividend of ₹5 per share. The ₹5 final dividend is in addition to the interim dividends of ₹11 per equity share, already declared during the financial year 2023-24 in three tranches thereby making total dividend for the financial year ₹16 per equity share on the face value of ₹10 each.

REC share price settled 10% higher today on the NSE, quoting at ₹509 apiece. So far this year, REC shares have surged nearly 20% against a Nifty return of 4%. The one-year return on the stock is 273% against Nifty’s 25%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Chemicals to pay ₹15 dividend; Tata Group firm posts net loss in Q4 on UK write-down

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Chemicals reported on Monday, April 29, a consolidated net loss of ₹850 crore in the quarter ended March 31, compared to a profit of ₹709 crore the Tata Group firm had posted a year ago. The loss is its first quarterly loss in nine years owing to a one-time write-down incurred in its UK operations along with lower prices and demand for soda ash.

Tata Chemicals said it incurred a non-cash write-down of assets aggregating to ₹963 crore as an exceptional loss in respect of its UK operations.

Tata Chemcials’ Q4 revenue from operations dropped 21% to ₹3,475 crore, which is the company’s third consecutive quarter of decline.

#4QWithCNBCTV18 | Tata Chemical reports #Q4 earnings👇

➡️Loss at ₹850 cr vs profit of ₹709 cr (YoY)
➡️Revenue down 21.1% at ₹3,475 cr vs ₹4,407 cr (YoY)
➡️EBITDA down 54.1% at ₹443 cr vs ₹965 cr (YoY)
➡️Margin at 12.8% vs 21.9% (YoY)
➡️Company reported an impairment loss… pic.twitter.com/V8o9GwBtd9

— CNBC-TV18 (@CNBCTV18Live) April 29, 2024

Soda ash—which amounts to two-thirds of Tata Chemicals’ total sales volume—is facing lower demand as falling caustic soda prices make it more appealing for the silicate market, prompting the company to cut prices of its soda ash products at least five times since April 2023, according to a Reuters report.

The company’s board today recommended a final dividend of 150% for 2023-24 (April-March) at ₹15 per share. It has also approved raising ₹2,000 crore via non-convertible debentures.

For the year ended March 31, Tata Chemicals’ consolidated revenue was at ₹15,421 crore. The earnings before interest, tax, depreciation, and amortisation came in at ₹2,847 crore, while profit after tax was at ₹1,310 crore on CY basis.

Shares of Tata Chemicals closed at ₹1,099.5 rupees, down 2%, on the NSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow