India Equity Analytics

Weekly Update

India Weekly Report As on 25 Jun 21

COMPANY TAKEAWAYS

APOLLOHOSP: 4QFY21 Result Flash 23-Jun-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 2922 2760 2868 -2% 4%
EBITDA 380 390 412 8% 6%
PAT 210 134 170 -19% 27%

EBITDA M% 13.0% 14.1% 14.4%

PAT M% 7.2% 4.9% 5.9%

APOLLOHOSP: 4QFY21 Concall Highlights 24-Jun-21

Management Participants:
Ms. Suneeta Reddy – MD
Ms. Sangita Reddy- Joint MD
Ms. Shobana Kamineni- Executive Vice Chairperson
Dr. K. Hariprasad- President of the Hospitals Division
Mr. A. Krishnan- Group CFO
Mr. Chandra Sekhar- CEO of AHLL
Mr. Sanjiv Gupta - CFO of Apollo 24/7
Mr. Obul Reddy - CFO of Apollo Pharmacy
• Company has seen revival in footfall in Non-Covid business.
• Surgical discharges continue to gain momentum in Q4FY21 and grew at a rate
of 32% in sequential quarter basis.
• During the quarter, company acquired majority stake in Medics, Lucknow.
• Company also acquired remaining 50% stake in Apollo Gleneagles, Kolkata
APOLLO HOSPITALS ENTERPRISE renamed Apollo Multispecialty Hospital Ltd.
• The company’s board approved the transfer of pharmacy distribution business
LTD
(Excluding Hospital based pharmacy), including online technology platform
Apollo 24/7 on a slump sale basis, and its 25% holding in Apollo Medicals Pvt.
Ltd to it’s newly formed wholly-owned subsidiary Apollo HealthCo Ltd, for a
consideration of Rs 1,210 crore.
• Company sees huge potential in Apollo HealthCo. Revenue Potential is close to
2.3 Bn in next 5 years.
• Management guided in next 3 years, EBITDA of Apollo HealthCo will be
neutral.
• Apollo 24*7 currently has 10 Mn users and By FY25, management guided that
company will reach 80-100 Mn user.
• Pharmacy Retail has 7% market share. Company expects it to grow to 30% in
next 5 years.
• In June, company has administered around 2 Mn vaccines and will be doing
around 8 Mn vaccinations in next 2-3 months. Apollo has done more than 45%
of all private vaccination in the country and will continue to ramp up
vaccination.
• Company has around Rs 5000 cr in back-end business of Apollo hospital and is
expected to grow by 18-20%.
• Company will continue adding 300-350 pharma stores in FY22.
• Capex Outlook: Company will be doing Capex of Rs 200-250 cr in Hospital
Business.
• Company has invested Rs 200 cr in HealthCo and will continue another capex
of Rs 100-150 cr in short term.
• Company is looking for acquisition opportunities.
• On Proton segment, company targets EBITDA of Rs 50 cr for FY22 and Rs 100
cr for FY23.
Please refer to the disclaimers at end of the report
 COMPANY TAKEAWAYS

APOLLOHOSP: Restrcuturing of the Organisation 24-Jun-21

• Apollo has transferred its back-end offline pharmacy business (excluding
hospital-based pharmacies), digital healthcare platform Apollo 24/7, its
investment in retail pharmacy business (Apollo Medicals Private Ltd), and the
"Apollo 24/7" brand, the "Apollo Pharmacy" brand and private label brands
into the healthcare group's 100 percent subsidiary Apollo HealthCo Limited.
• Apollo said that the offline pharmacy business will continue to grow to 5,000
stores and maintain a healthy revenue growth rate of 18-20 percent in the
next 3 years. The margin trajectory of this business remains intact.
• In addition, the digital healthcare platform Apollo 24/7, is delivering medicines
in 2 hours in over 10,000 pin codes combined with the highest availability of
medicines.
• Apollo 24/7, continues to scale rapidly with an "asset light approach" and with
the aspiration to achieve 100 million registered users in five years
• Management said the omni-channel approach has allowed them to serve over
27 crore people over the last 500 days.
• Post external capital raise at AHL, APOLLOHSOP is expected to retain
APOLLO HOSPITALS ENTERPRISE dominant majority shareholding in AHL and a slump sale consideration of Rs
LTD 1,210 crore will be received by APOLLOHOSP.

APOLLOHOSP: Management Interview Highlights 24-Jun-21

Management Participant:
Ms. Suneeta Reddy- MD
• 50% of the bed was alloted for covid which has now come down to 5%.
• Company guided Q1FY22 will be better than last year Q1.
• The company’s board approved the transfer of pharmacy distribution
business, including online technology platform Apollo 24/7 on a slump sale
basis, and its 25% holding in Apollo Medicals Pvt Ltd to its newly formed
wholly-owned subsidiary Apollo HealthCo Ltd, for a proposed consideration of
Rs 1,210 crore.
• This amount will be used to grow the Hospital entity.
• APOLLOHOSP will continue to hold 80% in Apollo HealthCo as company finds
partner or investor.

ASHOKLEY: 4QFY21 Result Flash 24-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 3838 4814 7000 6674 82% 45%
EBITDA 183 254 534 411 192% 111%
PAT -57 -19 241 166 NA NA

EBITDA M% 4.8% 5.3% 7.6% 6.2%

PAT M% -1.5% -0.4% 3.4% 2.5%
ASHOK LEYLAND LTD
• Exceptional gain of: Rs.37 crores
• Relating to discontinued products of LCV division in 4QFY21 - Rs.43 crores
(Gain)
• Gain on sale of immovable property - Rs.7 crores
• Impairment in value of equity instrument in subsidiaries Rs.12 crores (loss)
• VRS given Rs.0.6 crores (loss)

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

ASHOKLEY: 4QFY21 Concall Highlights 25-Jun-21

Management Participants:
Mr. Vipin Sondhi – MD & CEO
Mr. Gopal Mahadevan – CFO
Mr. K M Balaji- General Manager (Corporate Finance)
• Demand: The industry has again received a setback due to lockdown in
Apr/May 21 and initiatives are expected to be taken by government indicating
investment led growth in truck industry.
• Q4 performance posted a good recovery with MHCV and in LCV, strong pickup
in volumes. All other businesses including Aftermarket and Power Solutions
have done exceptionally well.
• The Company’s MHCV market share improved to 28.9% in 4QFY21 from 26.7%
in 4QFY20.
• The company has done CAPEX of Rs.621 Crores and investment of Rs.360
ASHOK LEYLAND LTD Crores in FY21.
• Going forward, the company sees good opportunities to continue to grow the
Exports, Defence, Power solutions, LCV and Parts business as it expands the
reach and products of the core MHCV business.
• The new businesses, Electric Vehicle (EV) and Customer Solutions (CSB) will
assist in complementing the core business.
• RM prices are at all time high and are expected to be at similar levels for few
months and some softening expected in 2QFY22.
• The focus on digital will help leverage the benefits of efficiency and cost.
Customer requirements will be at the core of all the digital initiatives.
• CAPEX: In FY22, expected capex is around Rs.750 Crores and investments of
Rs.200-250 Crores (if needed in HLFL) FY22.
• HLFL is doing very well with operating efficiency is of 90%. ROE of 11.6%,
GNPA of 4%, NPA of 2% and Overall provision for COVID is done of around
Rs.200 Crores.

BASF to acquire 49.5% of Vattenfall's Dutch offshore wind park HKZ

25-Jun-21
• BASF will buy 49.5% of Vattenfall's future offshore wind park in the
Netherlands, both companies said, as the German chemicals giant raises its
investments in renewable energy to offset carbon emissions at production
sites across Europe.
• BASF will pay Sweden's Vattenfall 300 million euros ($358 million) for the
BASF INDIA LTD stake in Hollandse Kust Zuid, with its total investment there amounting to 1.6
billion euros.
• Vattenfall won permits for the wind farm in Dutch government tenders in
2018 and 2019.
• Construction of the park will start in July, with the project expected to become
fully operational in 2023, pending approval by the authorities and with its
performance also hinging on the further development of renewable energy
regulation.
• The project, with 140 wind turbines and a total capacity of 1.5 gigawatts (GW),
will become the world's largest wind farm and supply power to BASF's plant in
Antwerp, Belgium, and to other European sites.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• Shipping a significant part of power output to Vattenfall's Dutch customers, it

will be the first offshore wind park to be built without locking in subsidies for
the electricity beforehand.
• BASF - which aims to reduce its greenhouse gas emissions by 25% by 2030 and
achieve net-zero emissions by 2050 - will get the electricity from its ownership
share through a long-term power purchase agreement (PPAs).
• PPAs are an increasingly popular financing tool in wholesale power markets
BASF INDIA LTD that offers investors guaranteed revenue streams and gives customers supply
security.
• BASF said it intends to bring in financial co-investors further along the line to
free up some of its initial capital outlay.
• BASF and Vattenfall sector peer RWE (RWEG.DE) announced a potential 4
billion euro ($4.9 billion) deal in May which entails the construction by RWE of
a 2 GW offshore wind park by 2030 to supply BASF's Ludwigshafen chemicals
complex.

BHARTIARTL: 21-Jun-21
• Bharti Airtel and Tata Group, today announced a strategic partnership for
implementing 5G networks solutions for India.
• Tata Group has developed a ‘state of the art’ O-RAN based Radio & NSA/SA
Core and has integrated a totally indigenous telecom stack, leveraging the
BHARTI AIRTEL LTD Group capabilities and that of its partners.
• TCS brings its global system integration expertise and helps align the end-to-
end solution to both 3GPP and O-RAN standards, as the network and
equipment are increasingly embedded into software.
• Airtel will pilot and deploy this indigenous solution as part of its 5G rollout
plans in India and start the pilot in January 2022.
• The 5G solutions, once commercially proven in Airtel’s diverse and brownfield
network will open export opportunities for India.
• Bharti Airtel, TCS announce collaboration to build 5G networks in India

Ceat launches new tyre range for compact SUVs 25-Jun-21

• SecuraDrive range would cater to the fast-growing compact SUV segment
• The new range of tyres offers numerous benefits like precise steering control
and cornering stability.
• The tyres offer superior braking, low in-cabin noise and a comfortable drive.
CEAT LTD • “The compact SUV segment has seen exceptional growth of over 50 per cent
in the last five years and is expected to grow at a CAGR of 20 per cent in the
next 3-4 years
• The SecuraDrive range would initially be available exclusively at all Ceat
Shoppes and subsequently, at dealers in key markets across the country. The
tyres would be available in five sizes.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

Cement prices improve across India in June; southern India sees maximum
hike 22-Jun-21
• Demand is being driven by state government projects in areas such as schools,
roads and affordable housing and Tier 1 and Tier 2 cities with the restart of
CEMENT SECTOR infrastructure projects
• Cement prices have improved across India in June. The latest dealers channel
check by Kotak Institutional Equities showed that all-India prices rose 4% to
₹376 per 50-kilogram bag, on a month-on-month (m-o-m) basis. This was led
by an 11% m-o-m rise in prices in southern India to ₹415 per bag.

CENTURYPLY to set up new unit in Punjab 22-Jun-21

• CenturyPlyboards is considering setting up a new unit in Punjab for the
CENTURY PLYBOARDS (INDIA) manufacturing of veneer and plywood.
LTD • The investment required for the expansion project is approximately Rs.75
Crores which will be raised through internal accruals.

DABUR 24-Jun-21
• The Company announced a fresh investment of Rs. 550 cr. for a new
manufacturing facility in Madhya Pradesh, which it said would be one of its
largest plants in the world.
• The new plant would be involved in the production of making foods, ayurvedic
medicines and health supplements would provide direct and indirect
employment to 1,250 people in the first phase and over 3,000 people
subsequently.

DABUR INDIA LTD DABUR: 23-Jun-21

• Dabur to drop paper packaging for toothpastes, it will be the first company to
do away with paper cartons for toothpaste. The above initiative was a result of
consumer feedback.
• The company will be moving towards removing outer paper cartons from its
flagship toothpaste brand Dabur Red Paste and the pilot is being rolled out in
key modern trade outlets in a joint initiative with Reliance Retail.
• Also rolling out a carton-free low unit price (LUP) pack for rural India.
• The Above initiative resembles previous actions undertaken by other FMCG
Company wherein Unilever, introduced similar practices such as removing
plastic layers from Dove soap boxes and cutting down on single-use plastic in
Ponds talc packaging.
• This move is expected to result in an annual saving of 150 tonnes of paper.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

DIXON: Management Interview Highlights 23-Jun-21

Management Participant:
Mr. Atul Lall- MD
• PLI scheme is the game changer for the company.
• Management guided that under the IT product PLI Scheme Company is the
strong contender and it has also signed the MoU with one of the largest global
brands for laptops.
DIXON TECHNOLOGIES (INDIA) • Under IT product PLI scheme management would manufacture laptops and
LTD revenue generated in couple of years from this would be Rs 1500 to 2000 crs.
• Company is also looking forward for the Telecom PLI and also partnered with
Bharti group for IOT devices, Routers, modems etc.
• Management guided that TV segment grew very well from 2.1 mn to 2.7 mn
despite the washout in 1QFY21 and going forward the order book is very
healthy.
• Capacity for 1mn LED monitor would be operational in next 2 months and
commercial production would start soon and the revenue generated from this
product in 3 years would be around Rs 1000 crs.

FMCG Update 24-Jun-21

• FMCG companies are witnessing an increase in sales after Unlock 2.0 with
easing of curbs on trading and movement by state governments and local
authorities due to falling number of COVID cases. States began lifting
restriction in the first week of June.
• Companies are witnessing a tailwind in sales, particularly in their health &
hygiene portfolio - both in urban and rural markets.
FMCG SECTOR • As per DABUR Management as several states are unlocking and local markets
are opening up, consumer demand is showing an uptick. The drop in COVID
cases has not only boosted consumer sentiments but also helped the supply
chain recover from the COVID-19-induced disruptions. Seeing a tailwind for
healthcare portfolio, particularly in rural India, with demand growing for
Chyawanprash, Honey and immunity-building Ayurvedic products.
• As per JYOTHYLAB Management from the FMCG perspective, most of the
goods were in the essential category and the company business was normal.
• After lockdown has been opened, seeing a better traction though there is a
fear of a third wave.

HDFCBANK: 23-Jun-21
• HDFC Bank To hire 500 people over two years in two entities the lender is
setting up to strengthen its technology infrastructure. The “Digital Factory”
arm will build new businesses based on upcoming tech stacks or applications,
HDFC BANK LTD while the “Enterprise Factory” will upgrade legacy infrastructure. The bank will
also develop IP technologies and move to a native cloud architecture in
collaboration with technology companies, fintech and large IT firms.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

HDFCBANK: 20-Jun-21
• Company's board has given approval to buy more than 3.55 crore shares in
group firm HDFC ERGO General Insurance Company for over Rs 1,906 crore
from the parent company Housing Development Finance Corporation (HDFC).
HDFC BANK LTD • The aggregate consideration for purchase of 3,55,67,724 shares of HDFC ERGO
is Rs 1,906.43 crore, i.e. Rs 536 per share which is 4.99 percent of the
outstanding issued and paid- up capital.
• The transaction is expected to be closed by September this year.

HEROMOTOCO: Hero MotoCorp hikes bike, scooter prices by up to Rs 3,000

from July 1 23-Jun-21
• The price hike has been necessitated to partially offset the impact of
continuous increase in commodity prices.
HERO MOTOCORP LTD • Hero MotoCorp had restarted production at all its manufacturing plants across
the country from May 24 onwards. Co. has initiated single shift production at
three of its plants -- Gurugram and Dharuhera in Haryana and at Haridwar in
Uttarakhand on May 17.
• The company continues to drive cost savings programs aggressively, in order
to minimise the impact on the customer.

IGL: 4QFY21 Result Flash 24-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 1553 1446 1551 1632 0% 7%
EBITDA 377 501 492 506 31% -2%
INDRAPRASTHA GAS LTD PAT 253 335 331 355 31% -1%

EBITDA M% 24.3% 34.6% 31.7% 31.0%

PAT M% 16.3% 23.2% 21.3% 21.8%

LIC Housing Finance to raise over Rs 2,334 cr from LIC as equity capital
25-Jun-21
• LIC will infuse equity capital worth about Rs 2,334.70 crore in its subsidiary LIC
Housing Finance by picking up an additional stake in the company.
• LIC Housing Finance (LIC HFL) will issue shares at Rs 514.25 apiece to its
LIC HOUSING FINANCE LTD promoter Life Insurance Corporation of India (LIC) on a preferential basis.
• The board of directors of the company in its meeting last week had approved
preferential shares up to 4,54,00,000 through a private placement to LIC.
• The issue price of the equity share of the face value of Rs 2 each shall be Rs
514.25 apiece, which is the price calculated as per Sebi regulations, 2018.
• LIC's shareholding in the housing financier post the allotment of shares will go
up to 45.24% from over 40.31% currently.
• The company will seek shareholders' nod for the preference issue to LIC in its
extraordinary general meeting next month on July 19.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
MATRIMONY: Management Interview Highlights 24-Jun-21
Management Participant:
Mr. Murugavel Janakiraman- Founder and CEO
• MATRIMONY is the only profit-making Matchmaking Company, believe over a
period of time the market will give better valuations; Co. continue to focus on
business, innovate & launch new products.
• Covid has led to increased digital adoption in the Matrimony business and expects
the momentum to continue.
• Growth has been broad-based across geographies in India and across Tier II and
Tier III markets.
• Increase in marketing expenses had led to impact on profits.
• Profits grew by nearly 40% last year and expect profits to grow at a much better
pace than last year.
MATRIMONY.COM LTD • Profit growth will be supported by operating leverage, matchmaking gross margins
and EBITDA margins are likely to improve and expect double digit growth to
continue.
• LAUNCHES IN 2021
• Launched Bhojpuri Matrimony
• Launched IIMIITMatrimony.com
• Created a new brand identity - WeddingBazaar.com, one of India’s largest wedding
marketplace from the earlier avatar of MatrimonyBazaar.com
• Total marriage related spends every year pre-covid USD 50 Bn
• 2024 Estimated Revenue of Matchmaking/Dating segment USD 260 Mn
• Online Matchmaking: 6% of marriages
• 80% of marriages in India are arranged as of 2016

MCDOWELL-N: 21-Jun-21
• United Spirits, is entering into the craft spirits segment by launching a new whiskey,
its first local brand launch in nearly two decades.
• The new brand United's Epitome Reserve is part of company’s wider strategy to
build a premium craft spirits portfolio in India. With the new brand, the company is
UNITED SPIRITS LTD entering a new category, which will cater to the premium needs of consumers.
• Craft spirits are essentially handcrafted and produced by a small distillery, which
often makes use of locally sourced ingredients and materials. The new product will
be India’s first small batch and artisanal 100% rice whisky, which has been distilled
in Punjab and matured in Goa.
• On the Pricing front, despite being an Indian-made foreign liquor, the brand has
been priced similar to the high end scotch segment and sold at a few outlets in top
cities such as Mumbai, Delhi, Goa and Bengaluru.

MINDAIND: Minda Industries forays in Uzbekistan, to buy 51% stake in UZ Chasys

23-Jun-21
• The company has won the bid to acquire a 51% stake in UZ Chasys in Uzbekistan for
a purchase consideration of 83.1 billion Kyrgystani Soms (equivalent to Rs 58 crore).
• The Uzbekistan government is divesting their 51 per cent stake in UZ Chasys
through an auction process.
MINDA INDUSTRIES LTD • UzChasys specialises in manufacturing automobile headlights and lamps. It is a
leading supplier to original equipment manufacturers (OEMs) in Uzbekistan and has
significant exports as well.
• The Uzbekistan automotive market is expected to grow significantly in coming years
along with the introduction of new models which will benefit UZ Chasys.
• The acquisition will further expand Minda's geographical footprints.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

MINDAIND: Management Interview Highlights 24-Jun-21

Management Participant:
Mr. Sunil Bohra- ED & Group CFO
• Sentiments have started looking good for the industry as COVID-19 related
restrictions have started easing.
• The personal mobility demand is much more than pent-up demand and the
company is working for catering to that demand.
• It is mainly looking at 2W and 3W components because these segments would
MINDA INDUSTRIES LTD be the first to kick off.
• The company has about Rs.7000 of a kit-value for a 2W model and which
could go up from Rs 9000 to Rs 30000 kit-value per vehicle, considering the
products that are in the pipeline and in production.
• The company is investing on building EV capability and is gearing up for that
opportunity.
• The company’s contracts with OEMs has price escalation clause to cover RM
inflation.

PNCINFRA: 4QFY21 Result Flash 25-Jun-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 1158 1322 1644 42% 24%
EBITDA 156 179 232 49% 30%

PNC INFRATECH LTD PAT 76 103 129 70% 25%

EBITDA M% 13.5% 13.5% 14.1%

PAT M% 6.6% 7.8% 7.9%

RELIANCE: AGM Highlights 24-Jun-21

• Jio Institute:
o Jio Institute is all set to commence academic sessions at their campus in Navi
Mumbai this year itself.
o Company has highest Export Rs 145143 cr which is 6.8% India's total
merchandising export
o Company has net debt free balance sheet.
o Company welcomed HE Yasir Al-Rumayyan , Chairman of Saudi Aramco and
Governor PIF on Reliance Industries Board.
o Company will increase payout as earning improves.

RELIANCE INDUSTRIES LTD • Jio Platform:

o Company Serves 425 Mn users as on March'21.
o It has made Rs 57123 cr investment in Additional spectrum.
o Rs 15183 cr invested in expanding network infra.
o Company can add additional 200 mn Customers.
o India has around 300 mn 2G users that has to be upgraded.
o Company announced Google and Jio jointly made phone named Jio Phone
Next and will be available from 10 the Sep and will be most affordable phone.
o Google is forging a cloud partnership with India's Reliance Jio Infocomm Ltd,
helping Reliance Jio with tech solutions for its enterprise and consumer
offerings as it plans to launch 5G services.
o Company has Launched Jio mart on WhatsApp
o 5G standalone network is installed in data centres.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• Reliance Retail
o Leader in Grocery, electrical and apparel.
o Company added 1500 new stores , Total stores stands at 12711.
o Ajio.com contributed to over 25% of apparel business.
o Company cater in around 1300 cities and will continue to expand.
o Jio mart: 6.5 lakh order in a single day , 85% of which are repeat shoppers.
o Jio mart will on board over 1 crore merchant partners over next 3 years.
o Company is making state of the art supply chain infrastructure to deliver
product product anywhere in shortest time.
o Company will expand store footprint multi-fold.

RELIANCE INDUSTRIES LTD • O2C Business:

o Reliance to become India's largest producer of Gas meeting 20% of India's Gas
demand.
o Company plans to build four giga factories to manufacture and integrate all
critical components of a new energy ecosystem
o Company is focusing on green, clean and renewable energy.
o Over the next three years, company will invest over ₹60,000 crore in these
initiatives
o Company will invest an additional Rs 15,000 crore in the value chain,
partnerships and future technologies, including upstream and downstream
industries. Thus, overall investment in the new energy business will be Rs
75,000 crore in 3 years

SBI Cards launches co-branded credit card - Fabindia SBI Card 24-Jun-21
• SBI Cards & Payment Services joined hands to launch an exclusive co-branded
SBI CARDS & PAYMENT contactless credit card - Fabindia SBI Card.
• The card is designed with thoughtfully curated benefits and privileges to offer
SERVICES LTD
a rewarding shopping experience to its premium customers and comes in two
variants - Fabindia SBI Card SELECT and Fabindia SBI Card.

SBIN: SBI to raise up to Rs14,000 cr via AT-1 capital 22-Jun-21

• Fundraising will be through Basel III compliant debt instruments in US Dollar
and/or Indian Rupee during FY 22.
• State Bank of India’s Central Board on Monday accorded approval for raising
fresh Additional Tier 1 (AT-1) capital up to an amount of Rs14,000 crore.
• The fundraising, subject to the Government’s concurrence, will be through the
STATE BANK OF INDIA issuance of Basel III compliant debt instruments in US Dollar and /or Indian
Rupee during FY 22, India’s largest bank said in a regulatory filing.
• During FY21, SBI mopped up Rs6,500 crore via Basel III compliant debt
instruments under AT-1 and Rs20,931 crore via Tier - 2 capital, as per the
bank’s annual report.
• During FY21, the bank redeemed AT-1 Bonds aggregating to Rs200 crore and
Tier-2 Bonds aggregating to Rs16,647.83 crore.
• In the annual report, Dinesh Kumar Khara, Chairman, said: “The bank is
comfortably placed in terms of growth capital. Opportunities for lending in
promising sectors will be explored to diversify the portfolio and contain risk.”

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• Capital adequacy
o The capital adequacy of the bank improved during the last financial year on
the back of better capital planning, internal resource generation and
containment of risk in banking books as reflected in 202 basis point (bps)
reduction in credit risk-weighted assets on advances to gross advances ratio.
o The capital adequacy position of the bank improved from 13.06 per cent in
March last year to 13.74 per cent in March 2021. The CET (Common Equity
Tier) 1 capital and AT-1 capital ratios put together increased by 44 bps to
11.44 per cent.
o The bank also increased its Tier-II capital base to 2.30 per cent in March 2021
from 2.06 per cent the previous year.

STATE BANK OF INDIA SBIN: Management Interview Highlights 23-Jun-21

Management Participant:
Mr. Dinesh Kumar Khara- Chairman
• Loan growth is likely to be at 9% in FY22.
• Rs 20K Cr to be transferred to NARCL. The management expect to get 15% in
cash & balance for NPAs transferred to them.
• Not many corporates opted for restructuring last year. Restructuring is likely
to be there from SME sector.
• Recoveries are likely to be better this year.

SUNPHARMA: 22-Jun-21
• Sun Pharma announces settlement of patent litigation for generic Revlimid®
(lenalidomide) in US.
• Sunpharma and Celgene Corporation (wholly-owned subsidiary of Bristol
Myers Squibb) has entered into an agreement , to resolve the patent litigation
regarding submission of an ANDA for a generic version of Revlimid®
(lenalidomide capsules) in the US.
• The market size of gRevlimid is US$7.6 bn.
SUN PHARMACEUTICALS • As per the terms of the settlement, Celgene will grant Sun Pharma a license to
INDUSTRIES LTD Celgene’s patents required to manufacture and sell (subject to USFDA
approval) certain limited quantity of generic lenalidomide capsules in the US
sometime after March 2022.
• In addition, the license will also allow Sun Pharma to manufacture and sell an
unlimited quantity of generic lenalidomide capsules in the US beginning
January 31, 2026.
• DRREDDY, AUROPHARMA, CIPLA, CADILA, NATCO PHARMA and many others
have entered into a similar settlement agreement with Celgene corporation
for gRevlimid.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

Tanla Platforms Limited Set to Go Global, Platform Business to Propel

Growth 24-Jun-21
• With CPaaS being among the leading segments the world over to witness
consolidation and capital infusion, Tanla aims to pursue large greenfield
opportunities and create a niche for itself in this domain.
• The global CPaaS target addressable market by 2023 is expected to be $47
billion, which in effect is the market opportunity for Tanla.
• Tanla Platforms Limited will continue to drive strong performance and create
superior shareholder value to be the defining communication and customer
engagement company of the 21st century.
• Digitalisation is the opportunity of this generation and Tanla is perfectly
TANLA PLATFORMS LTD poised to leverage the opportunities coming its way.
• Tanla would adopt the ‘One Platform’ approach with wisely, the disruptive
CPaaS platform, propelling the growth trajectory overseas. The next
generation suite of solutions built on the Wisely platform will service
customers across all industries and verticals. The platform’s flexibility and
extensibility would be the key differentiator.
• Co. will invest in global expansion to offer their solutions to existing and new
customers and consider bolt-on acquisitions to strengthen their one- platform
offering.
• Tanla commands a leading enterprise revenue market share of 30%.

Tata Motors MD & CEO Guenter Butschek to step down on June 30, will
continue as consultant till end of FY22 24-Jun-21
• Tata Motors had selected former Daimler India Commercial Vehicles, Marc
Llistosella to take over from Butschek from July 1. However, the decision was
TATA MOTORS LTD reversed suddenly and Tata Motors announced that Llistosella will not be
joining the company.
• Girish Wagh is being appointed as the Executive Director to the Board of Tata
Motors from July 1, 2021. Wagh is the president of commercial vehicles
division. The passenger vehicle division will continue to be headed by Shailesh
Chandra.

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