Tata Premier League: Tata Steel beats TCS in net score - Economic Times

Tata Steel reclaimed its profit-leadership credentials in the Tata Group after being overshadowed for a decade by Tata Consultancy Services (TCS), underscoring the bottom-line impact of an unprecedented global commodities upcycle that has coincided with robust economic recovery in India.

Record inflation in Europe and the US in the aftermath of ultra-loose monetary policies has boosted commodity companies, while technology services have encountered higher competition and lower-than-expected profit expansions due to spiralling costs and an unceasing global war for top talent.

Through FY22, Tata Steel reported a consolidated profit after tax of ₹41,749 crore. The crown jewel of the coffee-to-cars conglomerate since its public listing a decade-and-a-half ago, TCS reported a net profit of ₹38,327 crore.

To be sure, the market capitalisations of both entities are still at the opposing ends of the earnings-based valuation spectrum. At nearly ₹13 lakh crore, TCS is India's second-most valuable company, while Asia's oldest steel maker is valued at around ₹1.6 lakh crore.

Tata Steel on Tuesday reported a 37% increase in consolidated net profit at ₹9,835 crore in the last quarter of FY22 on the back of improved sales volume across its businesses. "In India, steel demand rose by 4% QoQ. The performance was broad-based with all segments doing well in terms of demand," said TV Narendran, chief executive officer of Tata Steel.

EU Revenues Surge by 54%
The company reported its highest ever consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) of Rs 63,830 crore, with an Ebitda per tonne of Rs 21,626 for FY22. "Coking coal prices touched $500 a tonne and the steel market continues to be volatile...," Narendran said during the media conference on Tuesday.

The board of directors of Tata Steel has recommended a dividend of Rs. 51 per fully paid equity share and Rs 12.75 per partly paid equity share. The company also announced a 10:1 recommended stock split. "The company is announcing splitting of the shares to Re 1 per share face value in a 10:1 split," Tata Steel Group CFO Koushik Chatterjee said. The company's European operations delivered better-than-expected performance as a transformation programme helped leverage the strong business environment, Narendran said.

European operations reported an Ebitda per tonne of Rs 18,135. Overall revenue for the EU operations increased by 54% YoY to GBP 8.9 billion (or equivalent of $11.12 billion).

The company's gross debt stood at Rs 75,561 crore at the end of FY22, with net repayment of Rs.15,232 crore. Net debt declined to Rs 51,049 crore and net debt to Ebitda improved to 0.80 times, the company said in a statement. Its consolidated free cash flow was at Rs. 27,185 crore. "We will be deleveraging at the same rate of $1 billion a year...last year we surpassed the target. We will grow as well as deleverage," Narendran said.

Capex for FY22 was around Rs 10,522 crore which was within the guidance of Rs 10,000-Rs 12,000 crore. "We are estimating guidance of around Rs 12,000 crore for FY23...around Rs 8,500 crore will be for India operations and the rest for EU operations," said Narendran.

The company's India operations achieved the highest-ever annual crude steel production of 19.06 million tonnes (MT), with a growth of 13% Yoy. The company reported the highest ever deliveries of 18.27 MT during the financial year under review. "Automotive sales were up 27% yoy, branded products and retail were up 11% yoy, while industrial products & projects were up 11% yoy," the company said in the statement.

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Tata Premier League: Tata Steel beats TCS in net score - Economic Times
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Adani Wilmar acquires Kohinoor brand from McCormick Switzerland for undisclosed amount - CNBCTV18

Edible oil major Adani Wilmar Ltd (AWL) on Tuesday said it has acquired several brands including the renowned Kohinoor Brand – domestic (India region) from McCormick Switzerland GMBH for an undisclosed amount.

The acquisition would give AWL exclusive rights over the brand 'Kohinoor’ basmati rice along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India.

"The addition of Kohinoor’s domestic Brand Portfolio strengthens Adani Wilmar’s leadership position in the food FMCG category by augmenting a strong product basket with the premium brand along with the potential to scale value-added products," the company said in a press release.

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"It also leverages the reach of Kohinoor brand to drive synergies for AWL across geographies and complements the reach of its flagship brand ‘Fortune’ in the food FMCG domain," it added.

Further, the company said, "The acquisition will fuel the next level of growth to AWL and widen the portfolio to cater to premium customer segments across rice and other value-added food businesses.

AWL is poised to become a formidable player with the addition of the Kohinoor brand in the India region. The Kohinoor brand portfolio comprises of; “Kohinoor” - for premium Basmati rice; “Charminar” - for affordable rice and “Trophy” for HORECA segment."

Angshu Mallick, chief executive officer and managing director of Adani Wilmar, said, "Adani Wilmar is pleased to welcome the Kohinoor brand to the Fortune family. Kohinoor is a trusted brand which represents the authentic flavours of India and is loved by consumers.

This acquisition is in sync with our business strategy to expand our portfolio in the higher-margin branded staples and food products segment. We believe the packaged food category is under-penetrated with significant headroom for growth. The Kohinoor Brand has a strong brand recall and will help accelerate our leadership position in the Food FMCG category."

First Published: May 03, 2022, 05:02 PM IST

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Adani Wilmar acquires Kohinoor brand from McCormick Switzerland for undisclosed amount - CNBCTV18
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Titan misses estimate, Q4 net profit falls 7.2%, as jewellery business hits topline growth - Moneycontrol

Titan Company Limited on May 3 reported a 7.2 percent fall in its on-year net profit to Rs 491 crore for the quarter ended March, which was sharply below analysts' estimate of Rs 618 crore.

The company's revenues in the reported quarter grew merely 2 percent on-year to Rs 7,276 crore, which was above the street expectation of Rs 6,935 crore.

The company's board has recommended a dividend of Rs 7.5 per share for the financial year ended March 31, 2022.

"Despite frequent disruptions in the quarter owing to the COVID wave-3 and other geo-political factors, the quarter has been satisfactory in terms of growth and profitability," Managing Director CK Venkataraman said in a press statement.

The muted topline performance of the company in the quarter was because of the jewellery business where sales fell 4.1 percent year-on-year to Rs 6,132 crore due to partial store closures caused by the outbreak of Omicron variant of COVID-19 earlier in the quarter.

Other segments, however, fared well with watches and wearables business reporting 12 percent on-year growth to Rs 622 crore. The eyecare operations also reported growth of 6 percent on-year to Rs 134 crore.

The operating performance of the company was underwhelming as operating profit declined 1.6 percent on-year to Rs 782 crore, which was sharply below analysts' expectations.

The company's operating margin in the reported quarter shrank 40 basis points on year to 10.7 percent.

The jewellery division, however, reported a earnings before interest and tax of Rs 780 crore as against Rs 703 crore in the year-ago quarter. However, operating performance of other divisions declined sharply on a year-on-year basis.

"The Company is well prepared and looking forward to an exciting Q1 with all its stores ramped up for a much-awaited Akshaya Tritiya festival this year," Venkataraman said.

Titan said that it added 269 stores during the year taking its overall retail presence including that of arm CaratLane to 2,178 stores.

On May 2, shares of Titan ended 2.9 percent lower at Rs 2,386 on the National Stock Exchange. Indian stock market is closed on May 3 on account of Eid celebrations.

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Titan misses estimate, Q4 net profit falls 7.2%, as jewellery business hits topline growth - Moneycontrol
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FabIndia, Aether Industries and Syrma SGS among eight IPOs cleared by Sebi; Inox Green withdraws draft... - Moneycontrol

Eight more companies are now ready to launch their initial public offerings (IPOs) as they have received the nod from the Securities and Exchange Board of India (Sebi). However, Inox Green Energy Services has decided to scrap its IPO plans by withdrawing draft papers.

FabIndia, Capillary Technologies, Harsha Engineers, Infinion Biopharma, Aether Industries, Syrma SGS Technology, Asianet Satellite Communications, and Sanathan Textiles have received approval from the capital markets regulator to go ahead with their IPO plans.

Leading ethnic wear and lifestyle retailer FabIndia had filed its draft papers in January this year for its maiden public offer that comprises a fresh issue of Rs 500 crore and an offer for sale of 2.5 crore equity shares by promoters and investors. The firm is backed by marquee investor Azim Premji's investment arm Premji Invest (PI Opportunities Fund-I).

Also read - Venus Pipes IPO opens for subscription on May 11

Along with promoters, investors PI Opportunities Fund I, and Prazim Trading and Investment Company will offload more than 1.47 crore lakh equity shares via offer for sale. The company may also raise Rs 100 crore through its pre-IPO placement before filing its red herring prospectus.  Accordingly, if the said fund raising is undertaken, the fresh issue size may get reduced to the extent of the amount raised.

The net proceeds from fresh issue will be utilised for voluntary redemption of NCDs issued by the company and repaying of certain debts, apart from general corporate purposes.

Capillary Technologies India, an artificial intelligence-based cloud-native software-as-a-solution (SaaS) products and solutions provider, is planning to raise Rs 850 crore through its IPO. The offer consists of a fresh issue of Rs 200 crore and an offer-for-sale of Rs 650 crore by promoter Capillary Technologies International Pte Ltd (CTIPL), which holds 98.06 percent shareholding in the company. The draft red herring prospectus was filed in December last year.

In February this year, precision bearing cages manufacturer Harsha Engineers International had filed preliminary papers for a Rs 755 crore initial public offering. The offer comprises a fresh issue of shares worth Rs 455 crore and an offer for sale of shares worth Rs 300 crore by promoters Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah.

Also read - LIC IPO opens on Wednesday, 4 May: Should you subscribe?

The Ahmedabad-based company will utilise the net proceeds of its fresh issue for repaying debts, purchasing machinery, boosting infrastructure and renovating production facilities including office premises in India.

Tech-focused engineering and design company Syrma SGS Technology, and Surat-based specialty chemical manufacturer Aether Industries had also filed their draft papers in December last year

Syrma is expected to raise Rs 1,000-1,200 crore through its IPO as per market sources. The offer comprises an issuance of shares worth Rs 926 crore and an offer for sale of up to 33,69,360 shares by promoter Veena Kumari Tandon.

Click Here To Read Moneycontrol's Exclusive Research Note on LIC IPO

The net proceeds from fresh issue will be used for the development of a research and development facility, expansion of facilities, and long-term working capital requirements.

The planned IPO of Aether Industries consists of a fresh issue of Rs 757 crore and an offer for sale of up to 2.57 million shares by its existing promoter Purnima Ashwin Desai. The company will utilise fresh issue funds for its proposed greenfield project, repaying debts and working capital requirements.

Asianet Satellite Communications is another company that received approval from the capital markets watchdog, after filing preliminary papers in December 2021.

The internet service provider intends to mop up Rs 765 crore through its IPO that comprises a fresh issuance of shares worth Rs 300 crore, and an offer-for-sale of Rs 465 crore by promoter Hathway Investments. The company will repay its debts and expand network infrastructure through fresh issue funds.

Also read - Campus Activewear IPO: Check share allotment status, listing date and grey market premium

Sanathan Textiles, which had filed IPO papers in January this year, is planning to raise funds in the range of Rs 1,200-1,300 crore from the primary market. The offer consists of a fresh issue of Rs 500 crore and an offer for sale of 1.14 crore equity shares by promoters. It is a 100 percent promoter-owned entity.

The company will pay its borrowings through fresh issue funds, and utilise the rest of funds for working capital requirements and general corporate purposes.

Infinion Biopharma had filed draft papers with Sebi in September last year for its IPO that comprises a fresh issue of 45 lakh equity shares. The funds will be utilised for investment in Mobius Biomedical Inc, acquisition of licences for product development of skincare and women's health products and working capital requirements.

The company will also spend fresh issue funds on sales, marketing and distribution expenses for setting up geographical reach, besides general corporate purposes.

However, Inox Green Energy Services, earlier known as Inox Wind Infrastructure Services, withdrew its preliminary papers last week. The company had planned to raise Rs 740 crore through its public issue and had filed papers in February 2022.

With this, a total of 59 companies have received approval from Sebi and are ready to launch IPOs.

So far, eight companies have launched their IPOs including Vedant Fashions, Adani Wilmar, Campus Activewear, Rainbow Children's Medicare and Veranda Learning Solutions. Life insurance major LIC will open its Rs 21,000-crore offer on May 4.

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FabIndia, Aether Industries and Syrma SGS among eight IPOs cleared by Sebi; Inox Green withdraws draft... - Moneycontrol
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ISMC Announces Setting Up Of India's First Semiconductor Fab In Karnataka At An Investment Of $3 Billion - Swarajya

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ISMC Announces Setting Up Of India's First Semiconductor Fab In Karnataka At An Investment Of $3 Billion  SwarajyaView Full coverage on Google News
ISMC Announces Setting Up Of India's First Semiconductor Fab In Karnataka At An Investment Of $3 Billion - Swarajya
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GST revenues at all-time high of Rs 1.68 lakh cr in April - The Financial Express

The GST collection in April touched the highest ever level of about Rs 1.68 lakh crore, up 20 per cent from the year-ago period, on improved compliance and recovery in business activity, the Finance Ministry said on Sunday.

During the month, 1.06 crore GST returns from GSTR-3B were filed, of which 97 lakh pertained to March 2022.

The gross GST revenue collected in April is Rs 1,67,540 crore, of which CGST is Rs 33,159 crore, SGST Rs 41,793 crore, IGST Rs 81,939 crore (including Rs 36,705 crore collected on import of goods) and cess Rs 10,649 crore (including Rs 857 crore collected on import of goods), the ministry said.

The gross GST collection in April 2022 is an all-time high and Rs 25,000 crore more than the previous highest collection of Rs 1.42 lakh crore recorded in March.

In April last year, the mop-up from Goods and Services Tax (GST) was about Rs 1.40 lakh crore.

Giving comparable data of April GST return filing, the ministry said there is a “clear improvement in the compliance behaviour, which has been a result of various measures taken by the tax administration to nudge taxpayers to file returns timely, to making compliance easier and strict enforcement action was taken against errant taxpayers identified based on data analytics and artificial intelligence”.

During the month, revenues from import of goods were 30 per cent higher and the revenues from the domestic transaction (including import of services) are 17 per cent more than the revenues from these sources during the same month last year.
The total number of e-way bills generated in March 2022 was 7.7 crore, which is 13 per cent higher than 6.8 crore in February 2022, which reflects the recovery of business activity at a faster pace, the ministry said.

In April 2022, 84.7 per cent of registered businesses paid taxes by filing GSTR-3B, compared to 78.3 per cent in the year-ago period.

Also, 83.11 per cent of GST registered businesses have filed supply or sales return GSTR-1, compared to 73.9 per cent a year ago.

The highest ever tax collection in a single day also happened on April 20 and Rs 57,847 crore was paid as GST through 9.58 lakh transactions.

Deloitte India Partner MS Mani said while the GST collections in respect of March have always been high, the record collections of Rs 1.68 lakh crore reported are on account of multiple favourable factors, including the recent changes on permitting input tax credits only upon timely compliance by the vendors.

“The impact of the continuing focus on ensuring timely compliance by all GST registrants by restricting the input tax credits of the buyers together with enhanced analytics to detect evasion has also contributed significantly to the all-time high collections reported,” Mani said.

Tax Connect Advisory Partner Vivek Jalan said while the high collection depicts that the Indian Economy is coming out of the pandemic in full swing now, it is also a result of the tremendous price rise in input cost and implementation of GSTR 2B wherein the recipient can take only that much credit for input, input services and capital goods for which the supplier has filed his returns.

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GST revenues at all-time high of Rs 1.68 lakh cr in April - The Financial Express
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ISMC to set up Rs 22,900 crore-semiconductor fab plant in Karnataka - The Financial Express

Israel-based ISMC Analog Fab Private Ltd has expressed willingness to set up a semiconductor fabrication plant in Karnataka at an outlay of Rs 22,900 crore.

The company will implement the project over a period of seven years with an employment potential for 1,500 people, a government release said.

Additional Chief Secretary in the department of IT, BT Dr E V Ramana Reddy and Director of ISMC Ajay Jalan signed an memorandum of understanding in the presence of Chief Minister Basavaraj Bommai.

Welcoming the deal, the CM said, “This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka understands that it’s not just the fiscal incentives that matter but availability of conducive ecosystem and overall ease in operations are also important.” Underlining that Karnataka has one of the best infrastructures in the country and an abundant skilled talent pool, Bommai said his government is not only trying to bring down the entry barriers for businesses but also make it easier to exit businesses, “should it be so required”.

“With robust policies, committed team, best in class infrastructure and ever-increasing talent pool of workers, Karnataka is on its way to become premier investment destination. I invite all of you to be a part of this growth story,” he said.

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ISMC to set up Rs 22,900 crore-semiconductor fab plant in Karnataka - The Financial Express
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