Planify Feed

Financial Performance: Five Star Business Finance declared its Q2 results, showcasing a robust performance with topline growth of 35.32%  (y-o-y) and a profit increase of 34.38%. Compared to the previous quarter, revenue increased 5.39%, while profits rose 6.51%. The company's Selling, General, and administrative expenses reported a rise of 1.65% (q-o-q) and an 18.01% increase (y-o-y), indicating a strategic investment in operational growth amidst rising costs. Operating income also reflected strong performance, with a 5.38% increase q-o-q and an impressive 40.14% growth(y-o-y). This surge showcases the company’s effective management and operational efficiency. Earnings per share (EPS) for Q2 stood at ₹9.62, which is a significant increase of 36.71% compared to the same quarter last year, affirming the company's commitment to delivering value to its shareholders.

• ​HDB Financial Services is one of the leading, diversified retail-focused non-banking financial companies (“NBFCs”) in India in terms of Total Gross Loan book size. It has filed preliminary papers with the capital market regulator SEBI to raise Rs 12,500 Cr through an Initial Public Offering (IPO).
  
  
• The proposed IPO includes a fresh issue of equity shares worth Rs 2,500 Cr and an offer for sale (OFS) of Rs 10,000 Cr by HDFC Bank Ltd.
  
  
• The funds raised from the Fresh Issue will be used for the following purposes:
  
  
  • Augmentation of Tier I Capital: A significant portion of the net proceeds will be allocated to enhance the company’s Tier I Capital base. This increase is intended to support the company’s future capital requirements, particularly for lending and business expansion, while ensuring compliance with the capital adequacy norms established by the Reserve Bank of India (RBI).
  • Offer Expenses: Some of the proceeds will be used to cover expenses associated with the offering, including fees for listing, audits, and marketing related to the public offering.
    
    
• Their lending products are offered through three business verticals: Enterprise Lending, Asset Finance, and Consumer Finance. As of September 30, 2024, their Total Gross Loans reached Rs 986.2 billion, demonstrating a compound annual growth rate (CAGR) of 20.93% from March 31, 2022, to September 30, 2024. Our assets under management were Rs 902.3 billion as of March 31, 2024, showcasing a CAGR of 21.18% from FY22 to FY24.
  
  
• In FY24, they generated a profit after tax of Rs 24.6 billion, which marked a CAGR of 55.98% from FY22 to FY24. The growth in their Total Gross Loans, combined with their operational efficiencies and strong asset quality, enabled them to achieve a Return on Average Assets of 3.03% and a Return on Average Equity of 19.55% for FY24.
  

• ​Financial Highlights: In Q2 and H1 FY25, the company showcased impressive growth, achieving a year-on-year increase of 25% to Rs 5,023 Cr in Q2 FY25 and 35% to Rs 9,974 Cr in H1 FY25. A significant reduction in total expenses by 8% to Rs 1,303 Cr in Q2 FY25 led to an impressive EBITDA margin rise to 74% in Q2 FY25, up from 64% in Q2 FY24, resulting in a 57% increase in net profit to Rs 3,137 Cr. The exchange continued to dominate the cash market with a 93% market share, while it attained a remarkable 98% and 100% share in currency futures and options, respectively, despite losing about 10% in the equity options segment. Furthermore, the NSE maintained its status as the world's largest derivatives exchange for the 5th consecutive year, reflecting its ability to handle substantial volumes, which enhances its competitive edge and facilitates ongoing volume growth that supports both revenue and profitability.
  
  
• Operational Developments: Recent initiatives have focused on enhancing infrastructure to support increasing trade volumes, ensuring optimal uptime and reliability for users. These advancements aim to improve user experience, attract new traders, and facilitate high-frequency trading systems. Alongside this, the company has prioritized digital transformation, implementing enhancements that streamline processes, boost security, and accelerate transaction speeds, in line with global trends in technology adoption among stock exchanges. Additionally, the National Stock Exchange (NSE) has emphasized its global expansion, actively engaging with international investors and stakeholders to diversify its investor base. This strategy not only aims to integrate international markets but also seeks to create new revenue channels, thereby reducing reliance on the domestic market and promoting cross-border trading opportunities.
  
  
• Future Prospects: The NSE is focusing on several strategic initiatives aimed at driving growth and ensuring sustainability within the financial trading ecosystem. Firstly, the expansion into new markets will involve exploring derivatives and investment vehicles across various asset classes, offering the potential for diversification and growth. Technological advancements, particularly in AI and machine learning, will optimize trading and back-office operations, enhancing risk management and operational efficiency, thereby potentially boosting revenue. Furthermore, with the evolving regulatory landscape, the NSE’s proactive approach to compliance and risk management is vital for maintaining investor trust and ensuring operational resilience while mitigating legal and operational disruptions.
  

• Revenue- In FY24, the company’s revenue dropped by 15%, decreasing from Rs. 6,644 cr in FY23 to Rs. 5,664 cr. This decline was primarily due to reduced sales in both trading and distribution of pharmaceutical and cosmetic goods, as well as services. However, despite the revenue fall, the company managed to reduce its net loss, which improved from Rs. -5,212 cr in FY23 to Rs. -2,534 cr in FY24. This improvement also reflected in the EPS, which increased from Rs. -9 in FY23 to Rs. -4 in FY24.
  
  
• Financial performance- The company’s overall asset base saw a modest increase of 2%, rising from Rs. 8,256 cr in FY23 to Rs. 8,390 cr in FY24. Additionally, the company’s total equity grew by 6%, moving from Rs. 2,437 cr in FY23 to Rs. 2,588 cr in FY24.

• Revenue-The company’s revenue declined by 10%, falling from Rs. 407 cr in FY23 to Rs. 366 cr in FY24, primarily due to reduced sales in textile products, while revenue from surgical dressings remained relatively unchanged. The net loss widened from Rs. 29 cr in FY23 to Rs. 38 cr in FY24, leading to a decrease in EPS from Rs. -74 in FY23 to Rs. -93 in FY24.
• Financial position- The company's total base increased by nearly 4%, rising from Rs. 727 cr in FY23 to Rs. 753 cr in FY24. However, the total equity saw a slight decline of 1%, from Rs. 268 cr in FY23 to Rs. 268 cr in FY24.
• Future prospects- Fiscal 2025 shows promise with stable cotton prices and improved spreads likely to boost margins. Revenue is expected to grow by 4-6%, supported by steady demand and stable cotton yarn prices, following a decline in FY24. Wider width fabric demand should also enhance margins. The home textile sector is recovering, and India aims to regain global market share. The company's made-ups division is expanding in the US, with ongoing replenishment discussions. Emphasis on sustainable, high-performance products has been well-received, and product development efforts will continue.

• Revenue: In FY24, the company’s revenue increased marginally by 2%, rising from Rs. 254 cr in FY23 to Rs. 259 cr in FY24. This growth was primarily limited due to a 15% reduction in inflationary pricing, despite a 21% increase in volume sales. However, the company managed to improve its bottom-line margins, which grew by 18%, moving from Rs. 9.8 cr in FY23 to Rs. 11.6 cr in FY24. This improvement was a result of a strategic focus on manufacturing efficiency and better management of the supply chain.
• Financial performance: Despite the global challenges such as geopolitical conflicts, increased freight rates, and reduced raw material supplies from major economies, the company maintained its performance. A focus on domestic markets, along with efforts in creditor and debtor management, helped navigate the tough environment, allowing the company to maintain its profitability and prepare for future growth through planned capacity augmentation.

​

Notice is hereby given that the 04th Annual General Meeting (“AGM”) of the members of Deepak Houseware & Toys Limited will be held on Saturday, November 30, 2024, at 02:00 p.m. (IST), through Video Conferencing/Other Audio Visual Means (“VC/OAVM”) to transact the following business:

Ordinary Resolution:

• Adoption of Financial Statements: The resolution seeks the members' approval to adopt the audited financial statements for the year ending March 31, 2024, including the balance sheet, profit and loss statement, and related notes. This is a routine item that ensures transparency and compliance in financial reporting.
• Reappointment of Mr. Deepak Chaudhary as Director: Mr. Chaudhary, retiring by rotation, is up for reappointment. This resolution, required by company law, is intended to confirm continuity in leadership, leveraging his experience to guide the company further.

• Appointment of Mr. Luv Chawla as Director: Mr. Luv Chawla, initially appointed as an Additional Director, is proposed for a regular appointment as a Non-Executive Director. This resolution formalizes his position on the board, bringing his financial expertise to enhance governance.

• Appointment of Mr. Karan Bhatia as Director: This resolution confirms Mr. Bhatia’s appointment as a Director, transitioning him from an Additional Director role. His background in sales and marketing is expected to contribute to the company’s growth strategies and market positioning.

• Appointment of Mr. Anmol Arora as Director: This resolution confirms Mr. Arora’s appointment as a Director, transitioning him from an Additional Director role. His background in sales and marketing is expected to contribute to the company’s growth strategies and market positioning.

Special Resolution:

• Approval of Borrowing Limits: This resolution grants the board the authority to borrow funds beyond the company’s paid-up capital and free reserves up to ₹50 crores. It enables the company to secure additional financing for expansion or operational needs.
  
• Appointment of Mr. Ankit Mittal as Whole-Time Director: With Mr. Mittal's experience as Operations Head, this appointment ensures strong operational oversight and management efficiency. His role is crucial to daily operations, helping the company achieve smoother workflows and higher productivity.
  
• Revision in Remuneration for Mr. Deepak Chaudhary: The resolution addresses a revision in remuneration for Mr. Chaudhary, reflecting his increased contributions as Executive Director. It aligns his compensation with his strategic role in the company’s development and expansion efforts.
  
• Designation of Mr. Deepak Chaudhary as Chairman & Managing Director: This appointment formalizes Mr. Chaudhary’s leadership position, reinforcing his role in guiding strategic initiatives and operational oversight. His experience is vital for maintaining growth momentum in the houseware and toys sector.
  
• Appointment of Mr. Anmol Arora as Whole-Time Director: Mr. Arora’s appointment is intended to strengthen management with his extensive sales and marketing experience. This resolution allows the company to benefit from his customer-centric approach, aimed at enhancing market reach and operational effectiveness.
  
• Appointment of Mr. Luv Chawla as Director: Appointing Mr. Chawla as a non-executive director, this resolution emphasizes strengthening governance with his expertise in finance, enhancing strategic decision-making at the board level.
  
• Appointment of Mr. Karan Bhatia as Whole-Time Director: The resolution proposes Mr. Bhatia's appointment as a Whole-Time Director for three years, with specific remuneration and terms. This supports sustained operational management, leveraging his market knowledge and experience.
  
• Creation of Charge/Mortgage on Company’s Assets: To secure financing, this resolution allows the creation of charges on the company's assets. This is critical for accessing larger loans while adhering to regulatory requirements.

​

• ​Swiggy has transformed from a startup focused on food delivery to a comprehensive digital services provider, offering groceries, essential items, and hyper-local deliveries via its Instamart and Genie services. Swiggy has become a market leader in India by offering convenience and variety to millions, thanks to its innovative approach and ability to cater to customer needs.

• The upcoming Swiggy IPO is expected to open up fresh avenues for growth, possibly positioning the company as one of India's top tech players in terms of value on the stock market. Going public will allow Swiggy to raise a substantial amount of capital to quickly expand Instamart's presence, enhance technology infrastructure, and grow its food delivery market. Moreover, the IPO might involve a sale offer from current investors, allowing them to gain profits on their investment and bringing in new capital for future projects at Swiggy.
  ​
  

• Target achieved: Lotte shares were recommended on April 26, 2024, at ₹440 per share, with a target price of ₹800. This target was reached on October 25, 2024. Currently, the stock trades at ₹880, delivering an impressive 100% return for investors in just six months. The new target for Lotte shares is now set at ₹1,000.
  

Kannur International Airport faced financial setbacks in FY24, with declining revenue, growing losses, and reduced asset and equity values, pointing to financial challenges.

• Revenue Decline: Kannur International Airport's total revenue dropped by 11.91% to ₹99.23 crore, indicating challenges in income generation.

• Increased Losses: The company’s PAT declined by 33.49%, leading to a net loss of ₹168.56 crore, while EPS dropped by 33.51% to -₹12.59, reflecting reduced shareholder value.

• Decline in Assets and Equity: Total Assets and Total Equity decreased by 4.15% and 22.04%, respectively, indicating weakened financial stability.

Hira Ferro Alloys faced a challenging fiscal year in terms of revenue and profitability, but improvements in assets and equity provide a positive outlook for long-term financial stability.

• Revenue and Profit Decline: Hira Ferro Alloys experienced a significant drop in financial performance, with revenue declining by 23.84% to ₹345.6 crore. This decrease in revenue has impacted profitability, as Profit After Tax (PAT) also saw a steep decline of 62.35%, reaching ₹8.2 crore.
• Earnings Per Share (EPS) Impacted: Alongside the drop in revenue and profit, EPS fell by 62.34% to ₹3.54, reflecting lower returns for shareholders and a possible effect of decreased profitability on investor sentiment.

• Growth in Assets and Equity: Despite challenges in revenue and profitability, the company showed resilience in terms of asset and equity growth. Total Assets grew by 10% to ₹1,018.42 crore, while Total Equity rose by 35.98% to ₹706.17 crore, indicating a strengthened balance sheet.

Xerox India demonstrated robust financial growth in FY24, with notable increases in profit, assets, and equity, positioning the company well for future stability.

• Revenue Growth: Xerox India achieved a slight increase in revenue, up by 0.40% to ₹447.25 crore, showing stability in its core business.

• Significant Profit Growth: PAT increased sharply by 78.24% to ₹18.43 crore, and EPS rose by 42.56% to ₹4.12, indicating strong profitability improvements.

• Asset and Equity Increase: Total Assets grew by 11.64% to ₹437.5 crore, and Total Equity rose by 8.01% to ₹248.51 crore, reflecting strengthened financial stability.

​Do you know Vikram Solar was initially founded as a garment business that transitioned into solar module manufacturing over a decade ago?

​Vikram Solar, with its headquarters in Kolkata, has expanded internationally, operating sales offices in the U.S. and a procurement office in China.  Vikram Solar supplies solar PV modules to 39 countries and has a strong domestic client base, including NTPC, HPCL, and West Bengal State Electricity Distribution Company.

• Vikram Solar’s upcoming IPO is highly anticipated, as it positions the company to expand its footprint in India’s fast-evolving renewable energy landscape. Known for its advanced solar PV modules, Vikram Solar aims to leverage the proceeds from its public offering to increase production capacity and strengthen its R&D capabilities. 
• ​By doing so, the company can capitalize on the robust demand for clean energy, both domestically and internationally. This expansion aligns with India's ambitious goal to reach 300 GW of solar power capacity by 2030, providing Vikram Solar with a critical role in meeting this target.
• The solar industry in India is poised for rapid growth, driven by supportive government policies, including incentives like the Production Linked Incentive (PLI) scheme. Vikram Solar’s IPO provides an entry point for investors interested in gaining exposure to this growing sector. 

• Revenue and Profit Growth: FY24 revenue grew 24% YoY to 0239 crore, with a 3- year CAGR of 44%. Profit reached QI 2.2 crore, and NPM improved to 5.1% (+190bps YOY), signalling sustainable growth.
• Operational Efficiency: The company's asset turnover ratio is 2.5x, with moderate leverage (AIE of 3x) and a strong ROE of 29%. A short cash conversion cycle of 2 months highlights its effective capital management.
• Capacity Expansion: Manufacturing capacity expanded from 8,000 Mtpa in FY20 to 28,500 Mtpa in FY23, with an expected rise to 35,000 Mtpa in FY24, supporting future growth.
• Strategic Clients: Proximity to suppliers and a strong client base, including Indian Railways and KP Power, ensure stability. An unexecuted order book of GI .95 crore offers short-term revenue visibility.
• Investment Opportunity With an FY24 EPS of 020.98 and a PIE of 6, the company's stock appears undervalued, presenting long-term growth potential.

Demerger Announcement

• Approval Received: The demerger has been approved by the NCLT and will take effect in late September 2024.
• Share Distribution: Each SPTL shareholder will receive one share of the new entity, SGL5, for every SPTL share held as of the record date.

Business Performance

• Record Order Book: The GPS business concluded FY24 with an all-time high order book of ₹6,705 Crores, achieving the highest annual EBITDA.
• Project Milestones: Significant progress in key projects is on track for commissioning by Q3-FY25, including major transmission lines expected to generate substantial annual tariffs.

Financial Highlights

• Income Growth: The demerged SPTL reported a total income increase of 47.1% year-on-year, while the GPS Co saw a 94.1% rise.
• Profit Margins: Despite revenue growth, EBITDA margins for Infra business decreased due to higher costs and deferred revenue recognition.

Future Outlook

• Capacity Expansion: A capital expenditure of ₹450 Crores is planned to increase conductor capacity by 45% and expand into solar and EHV cable segments.
• Projected Growth: Anticipated revenue growth of 30% up to FY26, with a PAT growth forecast of 62%, aligns with market demand trends.

Corporate Actions

• New Joint Venture: Formation of a new Transmission Infra JV platform (SGL-32) has been completed, aiming to develop and operate power transmission projects in India.
• Debt Management: Financial closure of ₹1,373 Crores for a transmission project and additional debt disbursements across various infrastructure projects have been achieved.

Awards and Recognition

• Great Place to Work Certification: Sterlite Power has been recognized as a top employer for three consecutive years, reflecting its commitment to employee satisfaction.

Summary of Business Lines

• Infrastructure Development: Focused on greenfield power transmission infrastructure under long-term concession agreements in India and Brazil.
• Global Products & Services: Leading manufacturer of power conductors and cables, with significant export operations.
• Convergence Initiatives: Development of optical fiber telecom infrastructure through OPGW technology, establishing a unique market position.