Category: Companies

Apollo Hospitals says merger with Keimed will make it an integrated healthcare company

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

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Apollo Hospitals on Saturday, April 27 said the merger of its online pharmacy arm Apollo 24/7 with pharma distributor Keimed will help in a unified pharmacy business and will allow for sustained improvement in margin.

On Friday, April 26, it was reported that Advent International is planning to inject ₹2,475 crore into Apollo Hospitals’ subsidiary, Apollo HealthCo. This investment, amounting to nearly $297 million, marks a strategic manoeuvre by Advent, enabling a merger between Apollo HealthCo’s online pharmacy arm, Apollo 24/7, and pharmaceutical distributor Keimed.

The company said the merger will make Apollo Hospitals an integrated healthcare company and it will also focus on its digital business breaking even in the next six to eight quarters.

The company said Apollo HealthCo will serve 6,000 Apollo Pharmaceis and it will also capture the distribution of around65,000 pharmacies that Keimed distributes to.

The company said it needs CCI and shareholder approval due to Advent and it does not foresee any challenges regarding the same. It added that it was eyeing margin of 7-8% in the 2026-27 financial year.

Apollo Hospitals said 19 entities own Keimed and it has been buying them over a period of time. It said Advent International’s investment of nearly $300 million will suffice the company for the next five years. It added that the cash flow from the company will suffice for its further growth.

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

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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

Boeing credit outlook gets gloomier as Fitch also turns negative

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

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Fitch Ratings became the third major credit grader to turn pessimistic on Boeing Co. as the planemaker’s crisis brings scrutiny to its balance sheet.

The ratings company lowered the outlook on its BBB- rating to negative from stable, according to a statement on Friday. S&P Global Ratings did the same a day earlier, which followed Moody’s Ratings downgrading the aerospace giant to a step above junk Wednesday after it released first-quarter results.

Boeing said it burned through $3.9 billion of cash in the first quarter as it slowed 737 Max production in the wake of a near-disaster involving one of the planes in January. The company predicted another “sizable” use of cash this quarter.

Fitch said its negative outlook reflects “heightened execution risks” at Boeing the next year or two as it normalizes production, navigates seasonal cash-flow swings and repays debt, among other issues. The new outlook also incorporates Fitch’s view that Boeing could issue new debt to guard against early 2025 cash-flow risks.

Boeing Chief Financial Officer Brian West said during a Wednesday conference call that he intends to protect the company’s investment-grade rating, and that the company still has access to $10 billion in untapped credit lines. He added Boeing is monitoring its access to cash and believes it still has “significant market access” if it needs to supplement liquidity.

While downgrading Boeing to the brink of junk, Moody’s also put its outlook at negative, which it defines as meaning a company faces the chance of a ratings downgrade in the medium term. That’s commonly seen by market participants as 18 to 24 months.

Fitch said it could stabilize its outlook if Boeing delivers more than 100 of its already-built 737 Max from inventory and half of its inventoried 787 Dreamliners by early next year while boosting 737 production toward 38 jets per month.g

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

IDFC First Bank Q4 earnings preview: Analysts predict 25.2% surge in NII, 8% dip in PAT

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

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IDFC First Bank is set to report its financial performance for the quarter ended March 2024 (Q4FY24) on Saturday, April 27.

According to a CNBC-TV18 poll, analysts anticipate the bank’s net interest income (NII) to witness a significant uptick, projecting a robust growth of 25.2% year-on-year (YoY) to reach ₹4,502.2 crore. Moreover, sequentially, the NII is expected to climb by approximately 5%.

However, the profitability may take a slight dent as the profit after tax for Q4FY24 is anticipated to dip by 8% to ₹738.6 crore compared to ₹802.6 crore reported in the corresponding quarter of the previous fiscal year.

However, broking firm Motilal Oswal expects deposit growth to be strong at 32.8% YoY, coupled with a sequential increase of 5.3%. Additionally, the firm anticipates a rise in loan growth, pegging it at 23% on a YoY basis.

According to Morgan Stanley, the bank may see improvements in certain key metrics. They anticipate net interest margin (NIM) to witness a positive uptick, potentially improving by 41 basis points. However, this optimism is tempered by expectations of a 17 basis points increase in credit costs compared to Q4FY23.

Meanwhile, the street expects IDFC First Bank’s asset quality to remain stable or improve on a sequential basis. In Friday’s trading session, the stock of IDFC First Bank rose by 1.56% to close at Rs 84.70.

The Mumbai headquartered bank has a market capitalisation of ₹59,964.28 crore and has delivered a negative return of around 1% in the past six months.

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

Software companies put up their worst show since FY18

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

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The combined net profit of the country’s largest information-technology firms grew at the slowest pace in six years after clients across the globe cut back their discretionary spending due to an uncertain business environment. What is more worrying is that the sector is not out of the woods yet as most of them have lowered their margin aspiration for the next year as well.

Six software firms which form part of the Nifty50 Index saw their aggregate earnings increase by 4.1% to ₹1.06 lakh crore in FY24. That compares with the 6.3% rise reported in the previous year. The growth in the bottom line for the year was the lowest after 2018 when they together reported a 3.5% rise, according to data collated by CNBC-TV18. In fact, the net profit has been growing at a single digit over the last seven years, except FY19 and FY22 in which their aggregate profit surged by 13% and 18%, respectively.

While the net profit of Wipro and Tech Mahindra continued to decline for the second year in a row, the growth has almost halved for HCL Technologies. Similarly, Tata Consultancy Services (TCS) reported 9% growth in FY24 against an increase of 10% in FY23. The two largest IT firms — TCS and Infosys — account for 68% of the aggregate profit and close to 60% of the total revenue of the sample.

Also Read: Synopsys to buy engineering software firm Ansys in $35 billion deal

Further, the revenue of these IT companies increased by 5% in FY24 to ₹6.8 lakh crore. In contrast, the six companies — TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra and LTIMindtree — together had reported 19% growth in their top-line in FY23.

Vetri Subramaniam, Chief Investment Officer at UTI AMC, argues that the global picture is more tricky as there has been a very big shift in the kind of expectations for interest rate policy by the US Federal Reserve. According to him, one should watch out for management commentaries of these companies with respect to their growth strategy and hiring. “Tech capex spending in the US hopefully signals better times for the Indian IT sector,” said Subramaniam.

Even though TCS expects the current fiscal year will be better than the previous one, the second-largest outsourcing provider — Infosys has cut its FY25 revenue target to 1 % to 3% on a constant-currency basis. That was a revision from its earlier guidance of 4% to 7% a year ago due to prevailing weak demand in the sector.

Also Read: Alphabet in talks to acquire marketing software firm HubSpot

The gauge for IT stocks — the Nifty IT index has declined as much as 5.2% so far in 2024, against 3.2% gains generated by the benchmark Nifty50 during the same period.

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

Eveready Industries Q4 net profit at ₹8 crore amid sluggish rural demand

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

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Eveready Industries India on Friday (April 26) announced a fourth-quarter profit of ₹8 crore for the period ended March 2024, compared to a loss of ₹14.39 crore in the corresponding quarter of FY’23, amidst a marginal dip in operational revenue to ₹281 crore.

However, sequentially, the profit saw a marginal decline compared to the December 2023 quarter. The company reported revenues for the full FY24 at ₹1,314.2 crore, marking a slight decline of 1% from ₹1,327.7 crore in FY23.

Profit After Tax (PAT) for the year saw a substantial increase of 231% to ₹66.7 crore in FY’24, against ₹20.1 crore in FY’23.

Also Read: SBI Life Insurance Q4 results: Net premium income rises 26%, dividend declared

“Revenue remained moderated primarily due to weak rural demand impacting batteries and flashlights, and industry-wide price deflation affecting the lighting segment.

We believe this to be a temporary phenomenon, and we remain optimistic that FY25 will see a turnaround,” Suvamoy Saha, Managing Director at Eveready Industries, said.

Shares of Eveready Industries India Ltd ended at ₹357.75, up by ₹3.50, or 0.99% on the BSE.

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

Patanjali Foods weighs a proposal to buy non-food business from Patanjali Ayurved

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

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Patanjali Foods Limited received a proposal to buy the non-food business from Patanjali Ayurved Limited (PAL).

The board of directors of Patanjali Foods discussed the initial proposal on Friday, April 26, which it received from Patanjali Ayurved Limited.

“The Board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with PAL’s non-food portfolio in any manner on an arm’s length basis,” the company said in a release.

To expand its product portfolio, the company acquired the biscuit business of Patanjali Natural Biscuits Private Limited for ₹60.03 crore in May 2021. The company also acquired the noodles and breakfast cereals business for ₹3.50 crore in June 2021 and the food business in May 2022 for ₹690 crore from Patanjali Ayurved Limited.

Patanjali Foods said that the proposal from Patanjali Ayurved may offer synergies to the company’s product portfolio with a variety of brands. It may also contribute to the growth of the company in terms of revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA).

Additionally, Patanjali Foods Ltd registered single-digit growth in revenue in the quarter ended March 2024 compared to the previous quarter. During the March quarter, the company said the prices of edible oils in India remained stable and rebounded from the low levels witnessed in the previous quarter.

The company’s edible oil segment’s volume during the fourth quarter grew mid-single-digit from the year-ago period. Overall, for the 2024 fiscal year, double-digit growth was reported.

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

Aditya Birla Sun Life AMC Q4 profit jumps 54% to ₹208 crore; to pay dividend of ₹13.50 per share

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

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Aditya Birla Sun Life AMC on Friday reported a sharp 54% jump in net profit to ₹208.4 crore for the January-March quarter of the financial year 2023–24. The Aditya Birla Group firm posted a net profit of ₹135.57 crore in the same quarter of the preceding fiscal.

Aditya Birla Sun Life AMC’s revenue increased 23.1% on a year-on-year (YoY) basis to ₹365.6 crore in the quarter under consideration. It had posted a revenue of ₹297 crore in the year-ago period in the same quarter.

The company’s EBITDA increased by 29.7% to Rs 204.9 crore in Q4FY24, compared to Rs 158 crore it had reported in Q4FY23. The company’s margin in the quarter came in at 56%.

#4QWithCNBCTV18 | Aditya Birla Sun Life AMC reports #Q4 earnings👇

➡️Net profit up 53.7% at ₹208.4 cr vs ₹135.6 cr (YoY)
➡️Revenue up 23.1% at ₹365.6 cr vs ₹297 cr (YoY)
➡️EBITDA up 29.7% at ₹204.9 cr vs ₹158 cr (YoY)
➡️Margin at 56% vs 53.2% (YoY) pic.twitter.com/d0tUnmdlMt

— CNBC-TV18 (@CNBCTV18Live) April 26, 2024

The company’s board of directors, in its meeting, recommended a dividend of ₹13.50 per equity share for FY24. For the year ending March 2023, Aditya Birla Sun Life AMC had declared an equity dividend of 205%, amounting to ₹10.25 per share.

For the entire FY24, the company’s total income stood at ₹1,640 crore, marking a jump of 21% YoY and net profit was at ₹780.36 crore in 2023–24, an increase of 31% from the preceding fiscal.

One of the leading asset management companies in the country, ABSL AMC has quarterly average assets under management of ₹3.32 lakh crore as of March this year.

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

RBI invites applications from eligible small finance banks to become regular banks

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

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The Reserve Bank of India (RBI) on Friday (April 26) invited applications from small finance banks meeting specified criteria, including a minimum net worth of ₹1,000 crore, for becoming regular or universal banks.

The RBI, in November 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. There are about a dozen SFBs, including Au Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank.

An SFB aiming to become a universal bank should have a minimum net worth of ₹1,000 crore as at the end of the previous quarter (audited) and the shares of the bank should have been listed on a recognised stock exchange, the central bank said.

It should also have a net profit in the last two financial years and GNPA and NNPA of less than or equal to 3% and 1%, respectively, in the last two financial years.

Also Read: RBI maintains FPI investment limits in G-Secs at 6%, corporate bonds at 15%

Other conditions include a prescribed CRAR (capital-to-risk weighted assets ratio) requirement and a satisfactory track record of performance for a minimum period of five years.

On shareholding pattern, the RBI said: “There is no mandatory requirement for an eligible SFB to have an identified promoter. However, the existing promoters of the eligible SFB, if any, shall continue as the promoters on the transition to universal bank”.

Further, the addition of new promoters or change in promoters would not be permitted for an eligible SFB during the transition period. “There shall be no new mandatory lock-in requirement of minimum shareholding for existing promoters in the transitioned universal bank,” the circular said.

In December 2019, the RBI provided the transition path for SFBs to convert into universal banks.

Also Read: RBI bars Kotak Bank from onboarding new online customers, issuing new credit cards

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

IREDA gets ‘navratna’ status: What it means for the PSU

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

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Indian Renewable Energy Development Agency Ltd (IREDA) has been granted ‘navratna status’ by the Department of Public Enterprises.

#NewsFlash | IREDA granted ‘Navratna Status’ from department of public enterprises pic.twitter.com/LxvfMYYaEa

— CNBC-TV18 (@CNBCTV18Live) April 26, 2024

IREDA’s January-March quarter earnings showed improved margins and better asset quality.

The PSU’s net profit increased by 32% year-on-year, while remaining flat quarter-on-quarter at ₹337 crore.

For the March quarter, IREDA’s assets under management (AUM) grew by 26.8% from last year to ₹59,698 crore. Even when compared to the December quarter, the AUM growth stood at 18%.

IREDA’s share price closed 2.2% higher today (April 26), settling at ₹170.95 on the NSE. So far this year, IREDA shares have given over 63% return, while the one-year return on the stock is 184%.

IREDA made its stock market debut on November 29, 2023, surging 87% from its issue price, making it one of the most successful listings of the year.

IREDA provides financial support to projects generating electricity through new and renewable resources. The government has a 75% stake in the company.

Incorporated in March 1987, IREDA is a ‘miniratna’ public limited government company, administratively controlled by the Ministry of New and Renewable Energy (MNRE).

What is a navratna status and how it is accorded?

The Indian government accords the navratna status to top-tier public sector undertakings (PSUs) and these organisations are authorised to undertake substantial investments of up to ₹1,000 crore without needing approval from the Centre.

These companies have the liberty to invest up to 30% of their net worth within a year, as long as it stays below ₹1,000 crore. They can also engage in joint ventures, form alliances, and establish subsidiaries abroad.

For a company to be accorded navratna status, it should already hold the miniratna category I status and be listed under Schedule A of CPSEs.

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

Advent International to invest ₹2,475 crore in Apollo Hospitals arm

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

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Private equity firm Advent International has revealed its plans to inject ₹2,475 crore into Apollo Hospitals’ subsidiary, Apollo HealthCo. This investment, amounting to nearly $297 million, marks a strategic manoeuvre by Advent, enabling a merger between Apollo HealthCo’s online pharmacy arm, Apollo 24/7, and pharmaceutical distributor Keimed.

The announcement, made on Friday, April 26, outlines Advent’s investment strategy, structured in two tranches of compulsory convertible instruments. These investments aim to secure Advent a 12.1% ownership stake in the merged entity, placing its valuation at an enterprise value of ₹22,481 crore.

Breaking down the valuation further, Apollo HealthCo commands a valuation of ₹4,478 crore, while Keimed holds a value of ₹8,003 crore, according to statements from the hospital chain operator.

Projections for the merged entity paint a promising picture, with an anticipated revenue surge expected to reach ₹25,000 crore over the next three years, as disclosed by Suneeta Reddy, Managing Director of Apollo Hospitals.

Under the newly-formed alliance, Apollo Hospitals is poised to maintain the majority of control, with a commanding 59.2% stake in the merged entity. Meanwhile, Keimed will secure a significant 25.7% ownership interest.

This investment reflects a broader trend of increasing private equity interest in India’s healthcare sector. Private equity firms are increasingly recognising the immense potential within the Indian healthcare landscape, as evidenced by a record-breaking surge of over $4 billion in investments in 2023.

In the tide of healthcare investments, private equity players like Temasek and Blackstone have emerged as titans, reshaping the sector’s landscape.

Temasek’s landmark acquisition of a 41% stake in Bengaluru’s Manipal Hospitals for a staggering $2 billion highlights the scale of transformation underway.

Meanwhile, Blackstone’s foray into the Indian healthcare domain with a $1 billion investment in CARE Hospitals further cements the sector’s allure for global investors.

The table below highlights key PE investments in Indian healthcare:

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