Sun Pharma Q2FY22: Focus on core business continues, to maintain momentum in speciality biz

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

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Sun Pharma reported a healthy set of earnings for the quarter ended September 30. The company’s net profit came in at Rs 2,047 crore for the quarter, exceeding Street estimates by a wide margin. The net profit increased 12.9 percent on a year-on-year basis.

CS Muralidharan, Sun Pharma’s chief financial officer (CFO) said the growth in revenue is based on the strong performance for key markets across all geographies – India, the US, emerging markets and the rest of the world.

The company’s EBITDA margin improved to 27.3 percent in the September quarter, from 25.6 percent in the corresponding period a year ago.

He said the company refrained from giving any guidance for the current fiscal or for the next financial year because of the uncertainty due to the COVID-19 pandemic. “However, we maintain that we would continue to focus on our core businesses and gain traction in speciality business in the United States, and in our other key businesses in India, emerging markets and the rest of the world,” he told CNBC-TV18.

The speciality business for the company did well and was around $157 million in terms of total sales. Murlidharan said the key factor has been the substantial and sequential year on year growth of psoriasis treatment Ilumya. And other products also contributed well, he said.

“We continue to maintain this momentum in terms of speciality growth engine. In the last six to eight quarters in terms of revenue, the speciality business has been improving quarter on quarter and sequentially and year on year. We expect the same momentum to continue in future and focus on our core business and ensure that we are able to gain more prescriptions in the future and build this business,” he stated.

Also Read: Dr Reddy’s Q2 Results: Net profit jumps 30% to Rs 992 crore, beats Street estimates

However, he said the US operations are a matter of concern as the country is still not back to normal due to COVID-19. Therefore, in these uncertain times, it would be very difficult to give any guidance in terms of the next two quarters for US business, he said.

He said there is no guidance on margins as well but the company has indicated that the expenses will inch up as normalisation is being reached across various geographies. “Slowly, the normalisation of operations is happening in various parts of the globe where we are operating and they will come with a positive impact on the top line growth, which will also help us to enhance our margins, as we enhance our top line,” he said.

Also Read: Cipla Q2 results: Net profit rises 7.6% to Rs 712 crore; beats estimates

However, for the last five to six quarters, margins have been around 25 percent plus expect Q4 FY21. So, in the absence of any margin guidance, Sun Pharma is re focusing on improving further topline, cost efficiency in operations overall, and thereby trying to expand margins in uncertain times, he said.

For the full interview, watch the video

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JSPL to be debt free by Q1 FY23, says MD VR Sharma

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

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The debt levels of Jindal Steel and Power Ltd (JSPL) will be at Rs 5,000 crore by the end of March and by the end of June 2022, we will be completely debt-free, VR Sharma, MD of the company told CNBC-TV18.

“Out of our accruals, we will be in a position to pay back. Then in the month of June, that is by the end of the first quarter of financial year 23 or latest by the month of July, we will be a net debt-free company,” he said.

The company has reported a net profit of Rs 2,584 crore for the quarter ended September — 67 percent higher than that of the corresponding quarter in the previous financial year. It had reported a net profit of Rs 836.6 crore in the second quarter of FY21.

Also Read: JSPL aims to reduce debt below Rs 10,000 crore by FY22-end

For the first half of the year, the company has accrued volumes of about 3.95 million tonnes and is planning to add 4.2 million tonnes in the second half of the year. “Put together we will be doing volumes of around 8.15 million tonnes in this particular financial year,” he said.

“Domestic sales versus exports – exports we are maintaining around USD 150 per tonne to EBITDA in the domestic sales, now it is little softer. We are concentrating on rains, on speciality plates. We are only in the finished goods now,” he stated.

Also Read: Tata Steel top pick in sector; positive on JSPL, SAIL, JSW Steel: Edelweiss Securities

The company will continue increasing its exports but the overall yearly annual goal is 32-35 percent.

In Q2FY22 JSPL reported EBITDA per tonne around Rs 21,500. “We will be mainlining it, it will be more than Rs 21,000 in the times to come,” he said.

When asked if the company is looking at equity infusion, he replied, “We don’t need any equity from foreign partners today. Whatever we want to grow, we have the resources available. We are not jumping on any immediate growth, we are going slow and steady and we will be investing our accruals.”

Also Read: Go India Advisors says JSPL, Tata Steel have advantage over other steel companies; here’s why

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Maruti Suzuki sales fall; Tata Motors reports 94% rise on Dhanteras

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

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Car market leader Maruti Suzuki India on Wednesday said it sold around 13,000 units on the day of Dhanteras, lower than last year hampered by supply constraints due to semiconductor shortage, although Tata Motors stated its deliveries grew 94 percent. Automobile dealers’ body FADA on Tuesday termed the current festive season the worst in terms of business in a decade for its retail partners across the country as chip shortage impacted supplies in passenger vehicles creating a huge shortage of vehicles in SUV, compact – SUV and luxury segment.

“Demand and bookings have been good. We tried our best to deliver as many vehicles as possible. However due to supply side constraints we closed a little lower than last year, at around 13,000 units,” Maruti Suzuki India Senior Executive Director (Marketing & Sales) Shashank Srivastava told PTI. On the other hand, homegrown auto major Tata Motors had a good day on Dhanteras on Tuesday.

“On the auspicious day of Dhanteras, our deliveries nearly doubled as compared to last year, owing to strong demand for our ‘New Forever’ range, including the newly launched Punch and the EVs. Across India, our deliveries grew by 94 percent,” Tata Motors President, Passenger Vehicles Business Unit Shailesh Chandra said. He, however, did not disclose the exact sales number for the day.

Multi-brand certified used car company, Mahindra First Choice Wheels Ltd said it delivered a record 1,028 units on Dhanteras through its over 1,100 dealerships across more than 300 cities in India. “This year’s festive season has been remarkable as the brand has registered 40 percent growth. We are overwhelmed with the traction on our e-commerce platform which has contributed 25 percent to our overall sales during this festive period,” Mahindra First Choice Wheels Managing Director and CEO Ashutosh Pandey said in a statement.

On the outlook, he said, “We are sure that this demand will continue to surge till the end of the financial year and we look forward to supporting the consumers to find their vehicles through our strong online and offline channels.”

MG Motor India had stated that it delivered over 500 units of its mid-sized SUV Astor to customers during the auspicious day. This is particularly special considering acute shortage of chips, MG Motor India said in a statement adding it was trying “its best to improve the availability to meet its initial target of 4,000-5,000 deliveries by December-end 2021”.

Federation of Automobile Dealers Associations (FADA), which represents over 15,000 auto dealers that own over 26,500 outlets across the country, had on Tuesday said that the chip shortage situation has impacted offtake in the passenger vehicle segment.

“This is the worst festive season which Indian Auto Retail has seen in the last decade. Chip shortage is impacting supplies in PV creating a huge shortage of vehicles in SUV, compact – SUV and luxury segment,” FADA President Vinkesh Gulati had said.

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New Zealand vs Scotland, ICC T20 World Cup 2021, Highlights: Kiwis seal 16-run victory to keep semifinal hopes alive

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

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Hello and welcome to another day of pulsating action from the ICC T20 World Cup 2021 being hosted at the UAE and Oman. We have another double-header lined up today as New Zealand take on Scotland in this game followed by India vs Afghanistan at 7:30 PM IST.

Things are really heating up in the Super 12 stage as the teams battle for a berth in the semifinals. New Zealand need a win to keep up the pressure on Afghanistan who currently occupy second spot. Scotland meanwhile will be playing for pride after back-to-back defeats and will be eager to impress against a strong Kiwi unit.

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

Diwali 2021: Chocolate sales improve, but India Inc isn’t buying enough

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

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On the eve of Diwali, chocolate makers have begun reporting a sales spike spurred by vastly improved consumer demand. While the increase can be attributed to the reopening of offices and retail establishments, several companies say that the corporate segment still isn’t pulling its weight when it comes to placing orders.

Brand Amul marketed by the Gujarat Cooperative Milk Marketing Federation (GCMMF) says chocolate sales have seen a 30 percent year-on-year growth in the festive season. “This year, we are seeing demand at 30 percent more than last year,” R S Sodhi, managing director at GCMMF exclusively told CNBC-TV18.

At Amul, 90 percent of chocolate sales are accounted for by the consumer segment, despite the pace of growth in the corporate segment outdoing that of the consumer segment. “The corporate sector may be 40 to 50 percent in terms of growth, while the consumer segment is slightly less than 30 percent,” Sodhi added.

Also Read: Follow these tips to make the most of your Diwali cash gifts; check here

While only 10 percent of Amul’s sales are from the corporate segment, the faster pace of growth here will help the company as it projects a growth of 30 to 40 percent in sales volumes, annually.

‘Companies not buying enough chocolate’

With businesses and retail stores opening up just in time for the festive season, pan-India, it comes as no surprise that the offline sales of chocolate have hit top gear. This comes as great news for several chocolate brands since the optimum recovery in this segment relies on equal contributions from online and offline sales channels in both the consumer and corporate categories.

However, a few companies say that while these green shoots are encouraging, India Inc still isn’t buying as much chocolate as it used to pre-COVID.

“Corporate (segment) is not at the peak when compared to pre-COVID levels,” says Vimal Sharma, founder and CEO, Smoor. “While offices were open, there was a significant quantity and volume of gifting. This year, even though corporate sections are bouncing back, the focus is still mainly on direct door-to-door deliveries,” he said.

Although premium chocolate brands like Fabelle and Smoor have registered a growth of 40 to 50 percent in sales this season over last year’s gloom, they are reporting only a 50-50 sales ratio from their corporate and consumer segments. For a brand like Smoor, that number was 70-30 in favour of the corporate segment, pre-COVID.

Online chocolate sales stay strong

The good news though is that despite the reopening of physical retail stores, online sales at most brands continue to stay steady. “In the pre-gifting period, online sales for us started becoming quite a dominant channel, and was anywhere in strong double digits – somewhere around 40-odd percent plus. This was the sales contribution from all online channels stitched together for us,” said Anuj Rustagi, Chief Operating Officer at ITC Foods, which markets the company’s Fabelle chocolate.

“Even with the bounce-back in offline business, we are seeing that there has not been a drop in online business at all. So, we are maintaining the same revenue.” Sharma added, with offline sales bouncing back, it gives an incremental revenue growth of 30 to 40 percent.

So, what are consumers buying this Diwali, anyway? Dark chocolate is a hands-down favourite with sales accounting for 70 percent of revenues in some brands, while sales of sugar-free, almond-based and milk chocolate are also holding their own.

Chocolate miniatures continue to be a hit, as do tiny candies like Amul’s Choco Poco. In the gifting category, celebration boxes like the ones marketed by Cadbury’s remain a classical hit among consumers. Not surprisingly, white chocolate remains the least preferred product category among Indian consumers.

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eClerx Services jumps 15% post Q2 results; top gainer on Nifty500

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

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Shares of eClerx Services jumped over 15 percent on Wednesday after the company reported strong quarterly numbers.

At 1339 IST, shares of the company were trading 9 percent higher at Rs 2,340.95 on the BSE. The stock was the top gainer on the Nifty 500 index and hit an all-time high of Rs 2,474.75 today.

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eClerx Services shares are trading higher than 5, 20, 50, 100 and 200 day moving averages which hints at a bullish trend in the stock.

So far in 2021, the stock has soared 166 percent whereas the Nifty500 index has risen 33 percent during the same period.

eClerx Services provides business process management, automation and analytics services to a number of Fortune 2000 enterprises.

The company reported a profit of Rs 100.7 crore in Q2 FY22 as compared to Rs 61.4 crore in Q2 FY21, while revenue from operations jumped to Rs 523.3 crore in the reporting quarter from Rs 360.8 crore in the year ago period.

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In dollar terms, operating revenue increased by 43.1 percent to $69.3 million as compared to $48.5 million in the corresponding period last year.

The total delivery headcount as of September end stands at 13,469, an increase of 60 percent year-on-year.

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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

Illuminate your financial future this Diwali with these benefits of life insurance plan

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

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Leaving the pandemic blues behind us, let’s prepare to welcome the cheer of festivals and the brightness they bring upon us. During the festival of lights, Diwali, we usher in fortune and ‘bring in new’ things. Some of us plan to purchase a house or renovate it, some may buy that new dazzling car, go on a family trip, buy gifts of near and dear ones etc. If you remember your childhood days then do you recall of possessing a piggy bank to save money on Diwali?

Money savings has been a vital part of our culture. So, why not this Diwali take a step to equip and secure your financial goals to celebrate life’s milestones with happiness. One can only enjoy the celebrations if you are in best of your wealth and health.

The protection needs and requirement of self and family differ from individuals to individuals. So, it becomes important that one should chart their financial goals and a sequence to realize the same, specially keeping in mind the uncertain times and situations.

With number of financial tools one can opt from, life insurance plans today offer guaranteed savings income and comprehensive protection which can be hyper customized as per your monetary needs.

Identify what works best for you: Life insurance plans offer flexibility to opt from several benefit options like short to long-term income and up-to whole life income (until 100 years) to match your life stages. For e.g. if you want to save money for retirement then you may want to opt for long-term income option. Assess your needs as per your life’s different stages and select an option aligning with your financial path. This will give you optimal flexibility to choose a policy term and premium payment term, while ensuring that you accomplish your goal without any unsettling life event.

Assuring your returns: Tailor your life insurance plan to fill in your ‘piggy bank’ and stay invested for longer time. The pandemic led financial stress on individuals and family has propagated the thought of having second source of income to tackle the pecuniary burden. A life insurance plan offering guaranteed savings will stream a stable flow of remuneration throughout a selected benefit payout period. Such offerings address any financial concerns without jeopardising one’s way of living.

Staying invested for long has its benefits: Apart from the guaranteed income flow, some life insurance plans will offer accumulated loyalty payouts. One can get these payouts on maturity provided they have paid the premiums within the stipulated timeframe. On a policyholder’s life loss, some life insurance plans do offer accumulated loyalty payouts on sum assured if the policyholder paid all the premiums on time.

Estimate if you are adequately insured: If you plan and understand your needs in advance then this will help you to construe your requirement better and aid you in choosing a sum assured suited to sufficiently achieve your forthcoming financial needs. In life insurance plans riders augment your coverage. Riders such as surgical care, hospital care, critical illness rider, premium waiver rider, and so on are available. This allows you to distinguish your plans and offer broad coverage.

This Diwali, make a clever choice by identifying your present and future financial goals. Begin early savings to reap the advantages of new-age life insurance plans intended to suit your new-age financial needs.

The author, Anil Kumar Singh, is Chief Actuarial Officer at Aditya Birla Sun Life Insurance. The views expressed are personal

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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

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SBI Q2 Results: Net profit up 67% at Rs 7,627 crore; NII beats Street estimates

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

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State Bank of India (SBI) — the country’s largest lender by assets — on Wednesday reported a net profit of Rs 7,626.6 crore for the quarter ended September. That was up 66.7 percent on a year-on-year basis. SBI shares recovered intraday losses after the earnings announcement.

The lender’s net profit missed Street estimates, but its net interest income (NII) — the difference between interest earned and interest paid — exceeded analysts’ forecasts.

Analysts in a CNBC-TV18 poll had predicted the state-run banking behemoth’s quarterly net profit at Rs 7,737.8 crore. 

State Bank of India reported an operating profit of Rs 18,079 crore for the three months to September. That was up 9.8 percent on year but down 4.7 percent sequentially.

Its domestic net interest margin (NIM) — a key measure of profitability for lenders — came in at 3.50 percent in the July-September period, up by 16 basis points on year.

SBI reported net interest income of Rs 31,183.9 crore for the quarter ended September, up 10.7 percent on a year-on-year basis. Analysts polled by CNBC-TV18 had estimated the lender’s NII at Rs 28,751.4 crore.

SBI’s gross non-performing assets (NPAs) came in at 4.9 percent in the second quarter of the current financial year, as against 5.32 percent in the three months to March 31.

Its net NPAs came down to 1.52 percent in the July-September period, from 1.77 percent in the previous three months.

SBI saw loan growth of 6.5 percent in the three-month period on a year-on-year basis, as against analysts’ expectation of 5-6 percent.

Loan growth stood at 0.46 percent sequentially. Analysts polled by CNBC-TV18 had estimated growth to remain flat sequentially.

SBI shares rose as much as 3.9 percent after the lender posted its financial results. At 2:00 pm, the SBI stock was up 3.2 percent at Rs 538.3 apiece on BSE. The headline Sensex index was flat amid choppy trade.

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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

Gold prices ease as investors bet on Fed tapering

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

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Gold prices eased on Wednesday as traders cautiously awaited the outcome of the US Federal Reserve policy meeting where the central bank is likely to announce tapering of its economic support and could address growing inflationary risks.

Spot gold XAU eased 0.4 percent to USD 1,780.30 per ounce by 0750 GMT. US gold futures GCv1 fell 0.4 percent to USD 1,781.80.

The Fed policy announcement is due at 1400 GMT. The central bank is likely to begin paring its monthly asset purchases by USD 15 billion each month until ending them by mid-2022.

Investors will also look out for any clues as to when the US central bank might raise interest rates to contain growing inflationary pressure.

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“In the short-term, gold could remain under pressure because a lot of central banks will be tilted toward normalising monetary policy, gradually tapering their asset purchases, especially given higher inflation,” Hitesh Jain, lead analyst at Mumbai-based Yes Securities, said.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding non-yielding bullion.

“But, if bond markets are right in their expectations for higher inflation and lower growth – stagflation, in the years ahead, that should be quite bullish for gold,” Jain said, noting that subdued longer-term US bond yields reflected concerns of stagflation.

Market participants are also eyeing a Bank of England policy meeting on Thursday after data suggested unemployment is unlikely to rise sharply, bolstering the case for a rate hike.

Also Read | Samvat 2078: Corrections & dips are good opportunities to buy gold: Motilal Oswal’s Kishore Narne

On the technical front, “a decline below USD 1,750 in gold would show a new bearish impulse, while a surpass of USD 1,800 can open space for new recoveries to the next resistance placed at USD 1,820-1,830,” Carlo Alberto De Casa, external analyst at Kinesis Money, said in a note.

Spot silver XAG fell 0.3 percent to USD 23.45 per ounce. Platinum XPT dropped 0.1 percent to USD 1,037.48, while palladium XPD rose 0.3 percent to USD 2,016.97.

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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