eMudhra Limited Reports Strong Full Year Results With Healthy Revenue Growth At 38.3% y?o?y

eMudhra Limited (BSE: 543533, NSE: EMUDHRA), a digital trust, digital security and paperless transformation solution provider, today announced its financial results for Q4 FY23 and full Year FY23 ended on March 31, 2023, as approved by its Board of Directors.

Commenting on the full year results, V. Srinivasan, Executive Chairman, eMudhra Limited said, “We are pleased to report another quarter of consistent performance and a strong full year result with revenue growth of 38.3% y?o?y, EBITDA growth of 34.6 % y?o?y and PAT growth of 48.8% y?o?y. 

As a solution provider focussed on securing enterprise transition to zero trust and going paperless, the importance of cryptographic identities cannot be overstated. These identities provide a secure and tamper?proof method of verifying the identity of users and devices as part of digital data and document exchange, allowing for greater control and traceability within an organization’s security architecture. 

Both the cybersecurity and paperless office segments of our solutions business over time will represent large addressable markets globally as they are sector agnostic. Given the relatively early stage at which the industry is, we anticipate demand for these lines of business to continue, driven by levers such as strong customer experience, cost savings and enabling stronger cyber security posture for enterprises. 

Our Enterprise solutions saw healthy growth both in India and International markets driven by adoption of both our eSignature workflow platform for “Paperless Office” and our cybersecurity suite of offerings including emCA and emAS. Over the past year, our solutions have been deployed across a range of mission critical use cases from paperless transformation of various industries such as BFSI, Pharma, Manufacturing, eGovernment, etc. to enhancing cybersecurity for use cases in Government and Defence, Card Payments, ePassport implementation, and for securing Connected Vehicles, Smart Grids and Blockchains. 

Our products have matured over the last several years as a result of significant R&D and implementations for several large?scale marquee customers, positioning eMudhra as a one stop shop in the Identity, Authentication and eSignature space; providing us an edge when we go to global markets. As we continue to make investments into expanding the range of our solutions and the depth for specific industries such as BFSI and Pharma, we also continue to hire leaders and work with global IT research companies to expand our reach and coverage to address growth opportunities in key markets such as North America,  Middle East and Africa and Asia Pacific. 

On trust services, we enjoy a strong brand in India resulting in healthy growth and stickiness for our retail and direct to consumer sale of digital signature certificates. During Q4 FY23, to address the pricing pressure from master partners, we also broad based our sale of digital signature certificates to a much larger set of sub partners thereby broad basing our revenue and also improving its quality. 

We also saw significant uptick in revenue for our new products such as eSign and SSL/TLS certificates which present significant growth opportunities going forward. As many emerging markets continue to look at the model built as part of Digital India to drive digital transformation, we continue to evaluate setting up trust services in other geographies to offer models similar to eSign which can be plugged into a digital identity framework for signing. 

To summarize, we feel confident that our mature products, marquee reference customers and focus on R&D and strong leadership team has helped build a unique positioning in this space to tap opportunities as enterprises and governments embark on their transition to zero trust”.

Financial Highlights

·         Revenue for the year was INR 2,540.54 million, an increase of 38.3% from the previous year.

·         Gross profit for the year was INR 1,941.35 million, representing a gross margin of 76.4%.

·         EBITDA for the year was INR 926.09 million, with an EBITDA margin of 36.5%.

·         EBIT for the year was INR 767.64million, with an EBIT margin of 30.2%.

·         PAT for the year was INR 611.98 million, with a net margin of 24.1%.

·         Adjusted PAT (adjusted for ESOP benefit expenses) for the year was INR 643.62 million

·         Earnings per equity share (of face value Rs. 5) for the year was INR 8.35, an increase of 41.5% from the previous year.

·         The company had cash and cash equivalents (including deposit and liquid investments) of INR 1,193.25 million at the end of the year and is debt free.

·         Dividend recommended by the Board, 25% of face value.

Key Metrics

·         Enterprise Revenue split between India and International is 48.6% and 51.4% respectively.

·         Enterprise Revenue split between Partner and Direct is 25% and 75% respectively.

·         Enterprise Revenue split between Cyber Security and Paperless segments is 62% and 38%    respectively.

·         Trust Service Revenue split between Retail, Channel and New Products (eSign/SSL) is 35.3%, 48.2% and 16.5% respectively.

·         # of DSCs issued in FY 2023 is 2.9 million, representing a growth of 21.0%

·         # of Retail Customers in FY 2023 is 249,000, representing a growth of 30.4%

·         Employee headcount at 763, with a total R&D staff of 271

·         Operating Cash Flow at 67.9% of PBT. 

Key Project Wins

·         Rollout of eSignature workflow (emSigner) along with document vault capabilities for a mid? market electronic/appliance retailer in US as a replacement to their existing eSignature platform. emSigner will be used as an integrated offering to manage both document signature and document movement for securitization journey resulting in improved customer experience as well as operational efficiency.

·         Rollout of our Certificate Discovery product for a very large public sector Bank in India that will enable key and certificate lifecycle management across users, devices, etc. allowing the bank to secure their infrastructure using PKI technology.

·         Rollout of emAS identity and access management solution along with MFA and SSO for the defence forces. They are using the SSO and MFA capability to securely login into more than 300+ internal applications. PKI infrastructure is being leveraged to validate user credentials at scale. 

·         Defence forces provided with end?to?end encryption of large data loads being communicated between the stations. Provided hybrid encryption approach of generating keys centrally in the HSM and made the same available for users through secure key exchange protocols. 

·         emSigner workflow platform deployed for a large customer that is the primary electricity generation, transmission, and distribution company in one of the biggest kingdoms in the middle East. Integrated with ERP system, they are leveraging the solution to digitally sign invoices at scale among other workflows that have been digitized using emSigner. 

·         Acquisition of a significant customer (a large State?owned entity that is a Trust Service and eStamping provider) in the Indonesian market for driving eSignature and eStamping use cases with introduction of Mobile based digital signatures in the Indonesian market.

·         Deployed emSigner banking instance for a large bank in the middle east to drive paperless operations in both customer facing and internal banking workflows. Solution integrated with core banking application to digitize many departments including retail banking, loans, credit card,  corporate and investment banking, etc. Issuing organization certificates to digitally sign documents across the workflows for compliance and legal non?repudiation. 

·         Issuing Digital Certificates using emCA for Smart meters deployment in the Eastern Europe for a gas distribution company. This deployment showcases eMudhra’s reach and presence in the European market and demonstrates its capability to deploy PKI for high volume connected devices. 

·         Expansion into the African market by setting up a root Certificate Authority (CA) in Kenya. This strategic move aims to bolster the digital landscape of the region by providing reliable, secure, and compliant digital identity solutions.

·         Implementation of CA solution (emCA) for payments and security for a Central Bank in the Middle East. This is helping the Central Bank establish a secure card payment infrastructure using PKI as the backbone and be compliant with global payment security standards.

Research and Innovation

·         Launched emDiscovery  ?  a Certificate Lifecycle Management Platform providing a centralized dashboard for discovering, renewing and provisioning different types of digital certificates that organizations use. This product effectively strengthens eMudhra’s positioning as a one stop shop player in the space.

·         Continued focus on R&D of products across IoT certificate management as the awareness and need for cybersecurity increases in the context of identifying and securing devices, which are extensively used in Smart Cities, Smart Electric Vehicles, etc.

·         Launch of several new features in emSigner including unique capabilities for the Banking industry to manage complex eSignature workflows for corporate banking and integrations into systems such as Core Banking, Trade Finance, etc.

·         Integrations with leading ERP, CRM and HRMS systems allowing enterprises to quickly kickstart their journey of paperless transformation using digital signatures for cost reduction.

·         emAS has been significantly strengthened to offer strong user provisioning, and identity and access management capabilities allowing acquisition of customers in Defence, Smart Cities, Banking and eGovernance.

·         emCA’s capabilities have been enhanced to allow issuance of certificates to credit/debit cards for securing payments as part of POS terminal authentication and ePassports including modules for enhanced identity management with demographics, terminal authentication and acceptance of other country passports.

Other Business Highlights and Recognitions

·         IDC ranks eMudhra #1 in Digital Identity and Trust category ? India in 2022

·         Recognized as a vendor for eSignatures in the Gartner ‘Market Guide for Electronic Signature’

Also recognized as a vendor for PKI and Certificate Management in the Gartner Report Titled ‘How to Select DevSecOps Tools for Secure Software Delivery’ & mentioned as a Strong Performer in Gartner® Peer Insights™/Voice of Customer: Electronic Signature Report for the Asia/Pacific Regio eMudhra Certified as a ‘Great Place to Work’ for FY 2023

·         Launch of trust services in Kenya and UAE with focus on driving adoption of digital signatures in initial set of use cases in eGovernance and BFSI

·         Expansion of Sales teams including leadership hires in North American market and on?ground teams in Saudi Arabia, Qatar, Kenya and Indonesia.

·         eMudhra continues the Chairmanship of Asia PKI Consortium and actively engages in the advancements of PKI adoption and awareness. During the year, various MoUs have been signed with global organizations including African Alliance for e?Commerce (Africa), Arab Information and Technologies Organization (AICTO, The League of Arab States) and European Telecommunication Standards institute (ETSI, Europe).

·         eMudhra continues its Board Member position in the European Cloud Signature Consortium. In March 2023, our nomination to the CSC Technical Committee was approved. The committee is in charge of taking strategic decisions for the technical work and takes the lead for specific topics aimed towards the advancement of Online Signature Specifications through CSC APIs.

·         eMudhra was elected to chair and convene the panel on Digital Signature Certificates in the Bureau of Indian Standards (BIS), in Oct 2022.

About eMudhra

eMudhra is a global organization aimed at empowering secure digital transformation by offering trust services and developing solutions around identity, authentication and digital signatures. eMudhra is a global trust service provider and largest certifying authority in India having managed over 50mn digital identities. eMudhra is a Board Member of the Cloud Signature Consortium, Chair of the Asia PKI Consortium and is a principal member of the CA/Browser Forum.  eMudhra has a strong marquee client list including Fortune 100 clients, and over 800+ large enterprises who use its products and solutions for their secure digital transformation initiatives. eMudhra has about

763 employees in offices across 7 countries serving customers in over 20 countries.

9 In 10 SMB Marketers In India Are Investing In AI And Automation To Stay Resilient In Challenging Economy

* Nearly one in three (32%) SMBs say they have shifted their marketing spends towards more digital solutions over the past five years. 

* Marketing investment remains strong, currently sitting at over one quarter (26.1%) of annual business revenue.

* To help SMBs build their brand with simplified marketing solutions, LinkedIn has launched the Quick Mode tool within Campaign Manager.

New research into small and medium sized businesses (SMBs) conducted by LinkedIn, the world’s largest professional network, has revealed that despite the economic upheaval, Indian SMBs remain optimistic about the value of marketing. 

With the average yearly marketing investment in Indian SMBs currently sitting at slightly more than one quarter (26.1%) of annual business revenue, only a small 3% of SMBs plan to reduce their marketing budgets in the next 12 months. This reflects the overall confidence among SMBs in India, who view marketing as a crucial tool for business growth and are willing to maintain or even increase their marketing budgets to drive revenue and remain competitive in the market.

Looking ahead in 2023, some of the top priorities of businesses are to expand their customer base (44%), increase business revenue and market share (43%), and build brand loyalty (36). To achieve this, many businesses (90%) have started and/ or will continue to invest in new technologies such as AI as part of their marketing strategy. 

SMBs tapping into creative opportunities to build brand equity and awareness 

Despite dynamic economic conditions, many SMBs are optimistic and looking to innovate and automate within their businesses. However a large cohort (91%) say they face challenges when it comes to creative marketing solutions. Top challenges include finding a balance with solutions for existing audiences and new audiences (41%), remaining creative with rapidly evolving tools (39%), a lack of creative talent and knowledge within their businesses (30%), and uncertainty about deploying long term creativity (28%). 

As four in ten (41%) SMBs are implementing new creative solutions or technology in their marketing strategy moving forward due to the economic downturn/changing budgets, it’s clear that there is an appetite to explore new ways to connect with customers. 

Considering the broader benefits of creativity, Ashutosh Gupta, India Country Manager, LinkedIn, adds: “Building memorable brands and harnessing creativity is critical for small business marketers, particularly in these challenging conditions. With India’s SMB sector expanding rapidly, small businesses must effectively balance short-term activations with long-term brand building solutions to differentiate themselves from competitors and achieve sustainable growth. Business owners who smartly leverage creativity, AI, and automation will be able to do more with less budgets and create true value for their customers.”

Despite business challenges, SMBs firmly believe in brand building and connecting with customers through marketing, indicating that they're playing the long game. In fact, the majority (94%) are confident their business has successfully built brand awareness through their marketing and referrals. SMBs are smartly leveraging technology and timely innovations in generative AI to get ahead and weather the economic uncertainty. 

To ensure they come out of this moment positively, more than a third (35%) believe that leaning into marketing is smart, as they feel companies that recover faster following periods of economic uncertainty are the ones that maintained or increased their spends during a downturn. 

Indian SMBs bank on AI technologies to advance business priorities 

The research found that most SMBs are looking at ways to innovate for the future, particularly through the use of marketing-tech tools. More specifically, nine in ten (90%) are investing in areas such as marketing automation, AI and online communities as part of their budget, with over nine in ten (93%) agreeing that ChatGPT could help their business with marketing.

However, some SMBs are found not investing in marketing-tech tools likely due to unfamiliarity with ChatGPT/AI, 42% of whom said they need to learn more about the product.

Discussing the rise in SMBs using marketing automation, Gupta said, “Time is a precious resource for SMBs. Small business staff often has to juggle multiple demands, which leaves little time for strategic tasks and thinking. With AI and automation tools, businesses can free up staff time for higher-level work, deploy creative marketing strategies, optimise ROIs, and meet business objectives effectively."

Helping SMBs build their brands with Quick Mode for Campaign Manager

SMB marketers are expected to take on more responsibilities with fewer resources and spread their expertise across broad workstreams. With limited time, learning new tools can be a challenge. To make it easier for new SMB advertisers to easily create and launch their first advertising campaigns on LinkedIn, the platform has introduced Quick Mode, a simplified way to build campaigns within Campaign Manager. 

The feature makes it easier than ever for new users to create and run advertising campaigns on LinkedIn, reducing the barrier to entry and enabling them to focus on higher value work like reaching the right audiences and building their brands. 

Instead of needing to figure things out for themselves, SMBs can use Quick Mode to achieve their brand building goals more efficiently and with more confidence. This means that they can spend more time on other areas of the business. 

Toyota Kirloskar Auto Parts Thanks Government of India For Issuing SOPs Relating To PLI Scheme For The Auto Sector

Toyota Kirloskar Auto Parts (TKAP), welcomes the important announcement by the Ministry of Heavy Industries (MoHI) towards Standard Operating Procedures (SOPs) for the Auto Sector Production Linked Incentive (PLI) scheme. With this, companies can now submit applications for testing and certification of Advanced Automotive Technology (AAT) products enabling them to be considered for incentives under the PLI Auto scheme.

Toyota Kirloskar Auto Parts Private Limited (TKAP), established in 2002, is engaged in the manufacture and sale of automotive rear axles, propeller shafts, and transmission units. Recently, the company set up an advanced manufacturing facility to produce e-Drives which is a key part of electrified powertrain for supply to Toyota Kirloskar Motor Private Limited and for export to Japan and other Asian countries. Over the years, TKAP has grown rapidly to emerge as a significant manufacturer of Drive Train parts and assemblies (x-Ev Transmission) in the Toyota group.

Aligned with Toyota’s commitment towards achieving ‘Mass electrification’ with ‘Make in India’ not only for India but also exports, the group recently invested INR 4,100 crores involving Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) which includes investment towards setting up of the new e-Drive (electrified component) manufacturing line in Bidadi near Bengaluru. The new facility, first in Asia outside of Japan, has an annual installed capacity of 135,000 units making it the best-case point of India’s emergence as a global manufacturing hub which is of strategic importance.

Acknowledging Government’s dynamic approach in promoting localization through well-thought out PLI schemes, K N Prasad, Managing Director, Toyota Kirloskar Auto Parts, said, "We thank the Government of India for the announcement of SOPs for the Auto Sector PLI scheme. The SOPs released from MOHI, consist of simplified procedures with minimum paperwork as a standing testimony from MOHI to realize “Ease of doing business”. This definitely reduces the burden on the applicant and helps to speed up the overall process of application and approval process.

At present, most of the advanced automotive technology components are being imported because of non-existent supply chain base. One of the key factors to get incentives under this PLI scheme is minimum domestic value addition criteria, and this will encourage more localisation and will boost domestic manufacturing sector and reduce dependence on imports, thereby creating more job opportunities. It would also contribute to the overall economic growth of the nation and enhanced export capabilities.

TKAP is extremely proud to contribute to the localization of advanced technology in the Indian Automotive Sector. Our recent investments in TKAP have helped in creating job opportunities and contributing to the development of the local community.”

Commenting on making India a global hub for electrification, Mr. Vikram Gulati, Country Head and Executive Vice President of Toyota Kirloskar Motor, said, “We strongly believe that India is well positioned to play an important role in contributing to the growing global shift towards electrification. Given the capability of Indian auto industry and the strong continued Government support, we are well on the way to make visible progress in establishing India as a critical manufacturing hub of advance, clean, green and efficient vehicles along their parts, at competitive prices. Schemes like the Production Linked Incentive (PLI) is playing a vital role in attracting investments in advanced and greener technologies.”

SBI Card FY23 PAT Grows By 40 Percent YoY To 2,258 Crore

The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Q4 FY23 and financial year ended March 31, 2023. 

Performance Highlights Q4 FY23 

Total Revenue increased by 30% YoY at ?3,917 Cr in Q4 FY23 vs ?3,016 Cr in Q4 FY22 

PAT increased by 3% YoY at ?596 Cr in Q4 FY23 vs ?581 Cr in Q4 FY22 

ROAA at 5.4% in Q4 FY23 vs 7.0% in Q4 FY22 

ROAE at 24.6% in Q4 FY23 vs 30.4% in Q4 FY22 

Capital Adequacy Ratio at 23.1%; Tier 1 at 20.4% 

Business Highlights 

New accounts volume at 1,371K accounts in Q4 FY23 up by 37% vs 1,002K accounts in Q4 FY22 

Card-in-force grew by 22% YoY at 1.68 Cr as of Q4 FY23 vs 1.38 Cr as of Q4 FY22 

Spends grew by 32% YoY at ?71,686 Cr in Q4 FY23 vs ?54,134 Cr in Q4 FY22 

Receivables grew by 30% YoY at ?40,722 Cr in Q4 FY23 vs ?31,281 Cr in Q4 FY22 

Market share - #2 for both, Cards-in-force and Spends, in industry; for FY23 Card-in-force is at 19.7% (FY22: 18.7%), Spends is at 18.2% (FY22: 19.2%)  

Profit & Loss Account for the Quarter ended March 31, 2023 

Total income increased by 30% at ?3,917 Cr in Q4 FY23 vs ?3,016 Cr in Q4 FY22. This movement was a result of the following key factors: 

Interest income increased by 32% at ?1,672 Cr in Q4 FY23 vs ?1,266 Cr in Q4 FY22 

Fees and commission income increased by 25% at ?1,786 Cr in Q4 FY23 vs ? 1,427 Cr in Q4 FY22 

Finance costs increased by 90% at ?507 Cr in Q4 FY23 vs ?267 Cr in Q4 FY22. 

Total Operating cost increased by 26% at ?1,980 Cr in Q4 FY23 from ?1,577 Cr in Q4 FY22.  

Earnings before credit costs increased by 22% at ?1,429 Cr in Q4 FY23 vs ?1,172 Cr in Q4 FY22 

Impairment losses & bad debts expenses increased by 60% at ?630 Cr in Q4 FY23 vs ?393 Cr in Q4 FY22 

Profit after tax increased by 3% at ?596 Cr in Q4 FY23 vs ?581 Cr in Q4 FY22.  

Profit & Loss Account for the financial year ended March 31, 2023  

Total income increased by 26% at ? 14,286 Cr in FY23 vs ? 11,302 Cr in FY22.  

Finance costs increased by 60% at ? 1,648 Cr in FY23 vs ? 1,027 Cr in FY22.  

Total Operating cost increased by 27% at ? 7,448 Cr in FY23 vs ? 5,844 Cr in FY22, increase         is driven by higher business growth.  

Earnings before credit cost increased by 17% at ? 5,190 Cr in FY23 vs ? 4,430 Cr in FY22.  

Impairment losses & bad debts expenses decreased by 4% at ? 2,159 Cr in FY23 vs ? 2,258 Cr in FY22.  

Profit after tax increased by 40% at ? 2,258 Cr in FY23 vs ? 1,616 Cr in FY22. 

Balance Sheet as of March 31, 2023 

Total Balance Sheet size as of March 31, 2023 was ?45,546 Cr as against ?34,648 Cr as of March 31, 2022. 

Total Gross Advances (Credit card receivables) as of March 31, 2023 were ?40,722 Cr, as against ?31,281 Cr as of March 31, 2022.  

Net worth as of March 31, 2023 was ?9,902 Cr as against ?7,824 Cr as of March 31, 2022. 

Asset Quality 

The Gross non-performing assets were at 2.35% of gross advances as of March 31, 2023 as against 2.22% as of March 31, 2022. Net non-performing assets were at 0.87% as of March 31, 2023 as against 0.78% as of March 31, 2022.  

Capital Adequacy 

As per the capital adequacy norms issued by the RBI, Company’s capital to risk ratio consisting of tier I and tier II capital should not be less than 15% of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. As of March 31, 2023, Company’s CRAR was 23.1% compared to 23.8% as of March 31, 2022. 

The tier I capital in respect of an NBFC-ND-SI, at any point of time, can’t be less than 10%. Company’s Tier I capital was 20.4% as of March 31, 2023 compared to 21.0% as of March 31, 2022. 

Ageas Federal Life Insurance Net Profit Grows By 21% In FY2022-23, Reaches INR 114 Crore

Records eleventh consecutive year of profit 

Total premium up by 4% at INR 2289 crore, Ind NBP up 5% 

VNB margin improved by 39% to 31.23% during FY 2022-23 

AUM during FY2022-23 rise 9% to INR 15,129 crore 

Ageas Federal Life Insurance, one of India’s leading private life insurance companies announced its financial results for the 12-month period ending March 31, 2023, reporting a Net Profit of INR 114 crore. This is the 11th consecutive year of profit for the private Life Insurer since it first declared profit in FY2012-13. Ageas Federal’s total premium rose by 4% to INR 2,289 crore in FY 2022-23 from INR 2,207 crore in FY2021-22.  

An understanding of customers’ evolving needs and catering to them with the appropriate products and solutions has helped Ageas Federal to improve its VNB margin by 39% to 31.23%. Superior customer service and a focus on developing long-lasting relationships with its customers has borne fruit with the 13th month persistency reaching 80% and the Company being in the top quartile of all persistency buckets.   

The average turnaround time (TAT) in resolving complaints for FY 2022-23 was 2 days which is among the best in the life insurance industry and considerably lower than the industry average of 5 days. This was the ninth consecutive financial year end where the pending complaints were nil at the end of the year.  

Ageas Federal has focused on further digitalising the claims process to make the journey better and more efficient. The average TAT from intimation to settlement for individual death claims was 8 days in FY 2022-23 as compared to 16 days in FY 2021-22. The claim settlement ratio for individual death claims in FY 2022-23 was 96.06% and the repudiation ratio was 3.11%.  

Commenting on the Company’s performance during the year, Mr. Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance said, “During the year, Ageas Federal became the first life insurance company in India to have 74% stake held by a foreign shareholder with Belgium-based, Ageas Insurance International NV increasing its overall stake to 74% from the earlier held 49%.  

To drive the next phase of growth and become more future-ready, the organisation has embarked on a Transformation Journey centring around 8 pillars. Through these 8 pillars, we aim to achieve our strategic objectives of building a multi-channel business model; shaping our products to fulfil customer needs; focusing on digitalisation and data analysis to drive growth; re-imagining the customer journey; and nurturing a culture of sustainability. 

In line with these objectives, we further strengthened our relationship with Federal Bank, our shareholder and bancassurance partner by implementing an end-to-end microservices-based application enabling digital acquisition and processing of insurance. We also focused on growing our proprietary channels - agency, group, online, and DST in a smart, calibrated manner.  

Catering to the evolving needs of customers, we took advantage of the ‘use-and-file’ framework extended by the regulator to launch new products and revamp existing ones. We also launched an automated underwriting platform and introduced OCR (Optical Character Recognition) aimed at achieving faster TATs and higher FTR (first time right) for customers. Further focusing on customer centricity, we have embarked on the journey of using the Net Promoter Score (NPS) with the objective of delivering better business outcomes through transformational strategies driven by customer insights,” Mr. Shahane added.  

Godrej & Boyce Launches India’s First-Ever Safety App ‘i-Report’ For Material Handling Operations In India

~ The app is equipped with over 1000 plus trained operators stationed at 200+ locations

~ Godrej RenTRUST is India’s largest rental equipment provider investing significantly to promote safety on the shop floor and warehouses. 

Godrej & Boyce, the flagship company of the Godrej Group, announced that its business Godrej RenTRUST, India’s largest warehouse rental equipment player, has launched an innovative safety solution, the i-Report app, to enhance safety in material handling operations in India. This is India’s first-ever safety application for material handling operations. The app will help reduce the gap in the industry's safety policies and standards by offering a 360-degree safety solution through remote and real-time incident reporting, audit, training, and consultation to their customers and business partners. The Safety App will be available in over 200 locations across 22 states and will be manned 24 X 7, by 1000+ trained operators.

Mr. Anil Lingayat, Executive VP & Business Head, Godrej Material Handling, stated, "We firmly believe that safety and customer-centricity form the bedrock of any successful business. Unrecorded incidents on the shop floor have been a concern for the industry. This is now set to change as all stakeholders will be able to proactively identify hazards and eliminate them. With the advent of this innovative application, Godrej RenTRUST is poised to set a new standard for safety initiatives in the Indian material handling industry, and further promote the culture of safety across manufacturing facilities and warehouse premises, suitably enabled with technology.”

Godrej RenTRUST has over the last 3 years, invested heavily in innovation, digitization, and technology. A significant share of this investment has been to promote safety at warehouses and manufacturing facilities. India has a booming warehouse market. The last couple of years has especially witnessed, a surging demand for well-equipped, modern warehouses that prioritize safety which is essential for a more productive workforce. Injuries incurring in warehouse operations can pose grave risks to the well-being of staff, while also disrupting workflow and incurring significant expenses.

Presently, there are no digital record-keeping mechanisms or safety protocols in place in Indian warehouses, leading to preventable accidents. The introduction of the 'i-Report’ Safety App marks a vital step in bridging this gap, enabling hazard identification and the provision of safety guidelines to mitigate accidents on the shop floor and in warehouses.

The state-of-the-art app was officially launched on the occasion of the 33rd Safety Foundation Day celebrated at Godrej & Boyce on 12th April 2023

With this app, all sites, crew, and customer representatives can easily log safety hazards, while a team of three dedicated safety supervisors will monitor the app. The process will only be closed once the safety officer of Godrej & Boyce confirms that the steps taken to close the hazard are safe and sustainable to prevent any such occurrence in the future.

The development of 'i-Report,' reflects the company's unwavering commitment to promoting safety and customer-centricity for this growing sector.

Sabine Nitzsche- Named New Chief Financial Officer Of Vitesco Technologies

* Sabine Nitzsche appointed as new Chief Financial Officer by the Supervisory Board with effect from November 1, 2023 

* Professor Siegfried Wolf, Chairman of the Vitesco Technologies Supervisory Board: “With Sabine Nitzsche, we have appointed a very successful and recognized manager to head the financial resort 

* Gratitude, accolades, and recognition for outgoing Executive Board member Werner Volz 

At its meeting the Supervisory Board of Vitesco Technologies Group AG appointed Sabine Nitzsche (50)- as new chief financial officer. 

Sabine Nitzsche succeeds Werner Volz (64), who assumed the role as managing director and chief financial officer in the course of the carve-out (January 1, 2019) and spin-off with consecutive listing (March 9, 2021) of the former Continental division Powertrain and later Vitesco Technologies Group AG and will enter into his well- deserved retirement. Both will share the month of October to guarantee a flawless transfer. 

“With Sabine Nitzsche, we have appointed a very successful and recognized manager to head the financial resort. The Supervisory Board wishes her all the best and every success in her new role,” said Professor Siegfried Wolf, chairman of the Vitesco Technologies Supervisory Board. 

“I am looking forward to working with Sabine Nitzsche,” said CEO Andreas Wolf adding: “On behalf of the whole Executive Board, I want to warmly welcome her to Vitesco Technologies. We are convinced that with her broad professional experience, she will be successful as head of finance.” 

Sabine Nitzsche started her professional career at Infineon in 1994. She passed through several operational functions in procurement as well as in project management before gaining experience in the 

Advanced Mask Technology Center (development and manufacturing of photolithography masks) in 2003, first in financial strategic business and later as director business administration. In 2011, her career path led her to Globalfoundries (US-based global semiconductor solutions contract manufacturer), where she took over the CFO position for the EMEA division in 2018 after seven years of financial divisional management. Finally, her path led back to Infineon in 2021, then in the role of CFO for the Automotive business segment. 

On the occasion of today’s meeting, both the Supervisory Board and the Executive Board also paid final tribute to the outstanding achievements of the outgoing Executive Board member Werner Volz. 

"On behalf of the Executive Board and the global Vitesco Technologies team, I would like to thank him for his many years of extraordinary commitment and valuable contribution at the helm of our company, whose financial management he took over during a challenging business phase and has always driven forward meticulously and extremely successfully since the spin-off with subsequent stock listing. I greatly appreciate that he will continue to be available to us with his knowledge and experience until the end of October and thus until the end of the third quarter”, Andreas Wolf said. 

Professor Wolf adding: "He deserves our praise and appreciation for the always trusting and collegial cooperation over the past years. In particular, I would like to pay special tribute to Mr. Volz for his achievements in connection with the spin-off of Vitesco Technologies, the securing of a financing base for the coming years and the creation of a distinct cost culture in the company." 

"Vitesco Technologies is a great company with excellent prospects for the future. Together we have made the company independent and taken it public. The past years have been intense and challenging, but at the same time a great and always fulfilling experience for me - both individually and as part of a team. Now I am looking forward to my next, very private, phase in life and wish Vitesco Technologies continued success,” Werner Volz closed. 

Furlenco Unveils A New Brand Identity, Offering Unmatched Flexibility For Furniture Rental And Purchase

* Furlenco rebrands and aims to flip the furniture world with new options to access furniture

* Upgrades technology infrastructure, for seamless customer experience

Exemplifying the freedom and flexibility of choice it offers to customers, Furlenco, India’s leading furniture and lifestyle brand, today unveiled its new brand identity, signifying a bigger, better, and bolder persona. Along with a bolder outlook, Furlenco’s new logo highlights its brand ethos and vision. The mint blue colour denotes the brand’s fresh, vibrant and lively characteristics offering flexibility for future innovation.

As part of the new identity, Furlenco has diversified its product portfolio to cater to the ever-evolving needs and has enhanced the tech-stack to provide a seamless experience for consumers. The largest furniture rental company in the country, Furlenco 2.0, in its new avatar has expanded its services to offer customers more options to access furniture by allowing them to rent, purchase new or refurbished furniture, and even sell it back when they no longer need it. Its diverse range of options empowers consumers to customize the furniture and shape their indoor experience.

Nitesh Mohandas, Chief Business Officer of Furlenco, stated, “Always moving fast and first, Furlenco has created furniture with innovative designs and trendy aesthetics. The first to build the rental category, we are now poised to further disrupt the furniture market by providing people with a bouquet of services to rent, buy new or refurbished items and sell back. Besides expanding our product and service offerings, we are taking a nuanced approach by helping customers view furniture as core building blocks in creating their dream homes. Naturally, we are thrilled to announce our rebranding to provide customers with more services than before. Since customer empathy constitutes the cornerstone of all our endeavours, we will continue working towards making Furlenco 2.0 a truly customer-friendly platform.”

In the coming months, Furlenco will venture into many novel categories with a mission to be India’s largest furnishing solutions. With the aim of reaching a wider audience and offering furnishing solutions, the company is planning to expand its products and services.

About Furlenco

Furlenco - India’s leading furniture and lifestyle brand was established in 2011. With flexibility and accessibility at its core offerings, Furlenco today provides its consumers with the freedom of choice (to choose any furniture they want), access (however they want), and change (by returning or selling back). 

Customers can currently access the latest offerings on www.furlenco.com

Armed with a team of experts and award-winning designers, they make sure every product is designed and crafted with utmost care and attention while keeping style and sustainability at the core. Furlenco’s knowledge base, design expertise and industry experience along with the advantage of having its logistics and warehouses, is what truly makes it a front-runner in the furniture and home lifestyle space.

Healthcare Provider Apollo Announces Expansion Of Its Genomics Institute

Apollo, the world’s largest vertically integrated healthcare provider, today announced the expansion of the Apollo Genomics Institute with the launch of the facility in Chennai. Doubling down on its investments in genomics, Apollo Genomic Institute was earlier launched in Mumbai and Delhi. By the end of 2023, Apollo aims to open three more genomics facilities in Hyderabad, Bangalore and Ahmedabad respectively.

India has made huge progress in terms of combating The Apollo Genomic Institute in Chennai will host a range of genomic services including genetic evaluation, clinical diagnostics, obstetric genetics, cancer genomics, prenatal genetic screening capabilities and more, empowering patients with information to manage and prevent genetic disorders. communicable diseases over the years; however, the increase in the number of genetic disorders in the recent past have been overlooked. With genomics, these diseases can be identified before they manifest; in turn, enabling early intervention and preventive care. The Apollo Genomics Institute aims to transform medical practice by bringing genomic services within the reach of every clinician & patient.

Photo Caption :- Left to Right - Prof. Sandi Deans NHS Genomic Medicine UK, Ms. Preetha Reddy Executive Vice Chairperson  Apollo Hospitals Group Thiru. R.N Ravi.

Brakes India Forays Into Lubricants With The All-New Brand Revia

* The engine oils will cater to both passenger car and commercial vehicle segments.

Brakes India, one of the most trusted names in the automotive sector for safety & quality, forays into the lubricants segment, in the all-new Revia brand. Leveraging Brakes India’s strong distribution network and 60+ years of rich legacy, the company is diversifying into the engine oil space catering to both passenger cars and commercial vehicles segments with its newest brand.

S Sujit Nayak, Vice President and Head, Aftermarket Business, Brakes India said, “Established for over 6 decades, Brakes India is known in the automotive industry for safety components from TVS Girling, TVS Apache and TVS Sprinter. We are very excited to launch the engine oil in our new brand - Revia.”

Revia engine oil has a wide product portfolio with 9 grades of engine oil - 5 for Passenger cars and 4 for commercial vehicles. The company also offers the premium fully synthetic range for SUVs and MUVs. Revia 15W40 CK4 engine oil is compliant with latest BS6 norms and caters to all new generation engines.

Speaking of the product range, Sujit explained, “Revia engine oil is formulated to provide maximum engine protection and efficiency under extreme driving conditions. Advanced additives in Revia engine oil like HyperZDP technology for passenger cars and turbo boosters for commercial vehicles, boosts engine longevity and performance.”

Speaking about the scope for growth in this market, Sujit explained, “With growing demand for efficient lubricants, evolving BS standards and growing vehicle population, the engine oil segment is poised for growth.”

About Brakes India: 

Brakes India was founded in 1962 and is a leading supplier of braking systems in the Indian market and a global supplier of ferrous castings, for passenger vehicles, light commercial vehicles, heavy commercial vehicles & tractors. Promoted by the TSF Group, whose heritage dates to 1936, the company has a strong in-house R&D capability that includes state-of-the-art test facilities and a high-speed test track built to international standards. Brakes India has world-class manufacturing operations with a reputation of providing high quality products and an expansive supply chain, serving marquee OEMs across the globe. The world-renowned iron foundry produces over 180,000 tons of safety critical castings from India and Oman. Its trusted brands TVS-Girling, TVS-Apache and TVS-Sprinter are leading names in the spare parts segment. With revenues in excess of INR 5,000 crore, the company wears numerous feathers in its hat such as National Awards for Energy conservation; Leadership and Excellence Award in Safety, Health & Environment, TPM Excellence Award and the prestigious Deming Application Prize to name a few. 

Cooperation Minister Advises NDDB To Make India “Dairy To The World” With Cooperatives At Centre

Amit Shah, Hon’ble Minister of Home Affairs & Cooperation, Government of India appreciated National Dairy Development Board (NDDB)’s initiatives in the Indian Dairy Sector and asked the Dairy Board to further strengthen cooperative dairying by playing a major role in establishing viable dairy cooperatives in uncovered Panchayats/ villages having potential for dairying.

The Hon’ble Minister also highlighted the need for multi-commodity cooperatives, common brand for export of produce of cooperatives, promotion of organic produce, better capacity utilisation of milk processing facilities by cooperation among cooperatives, self-reliance in manufacturing dairy machinery & also export of indigenous dairy equipment through IDMC Ltd, a subsidiary of NDDB. Hon’ble Union Minister also mentioned that the subsidiary companies of NDDB have to play a lead and stellar role in achieving these.

Shri Meenesh Shah, Chairman, NDDB welcomed the Hon’ble Union Minister in the presence of Cooperation Secretary Shri Gyanesh Kumar, Joint Secretary Shri Pankaj Kumar Bansal and NDDB Board of Directors Ms Varsha Joshi, Additional Secretary (Dairy Development), Department of Animal Husbandry & Dairying, GoI, Shri Shamalbhai Balabhai Patel, Chairman, Gujarat Cooperative Milk Marketing Federation Ltd., Shri Nihal Chand Sharma, Chairman, Himachal Pradesh Cooperative Milk Producers Federation Ltd and Dr NH Kelawala, Vice Chancellor, Kamdhenu University.

The Hon’ble Cooperation Minister also acknowledged NDDB’s initiatives to strengthen dairying in neighbouring countries and African nations, and said India needs to become “Dairy to the World” through export of quality milk and milk products to further enhance farmers’ income. This will help fulfill Hon’ble Prime Minister’s goal of Vasudhaiva Kutumbakam.

Chairman, NDDB briefed the Hon’ble Minister about India’s dairy sector, NDDB’s ‘Farmers First’ vision for undertaking all its initiatives following cooperative strategies, scientific dairy husbandry practices adopted by farmers, efforts of NDDB’s subsidiaries to strengthening dairy cooperatives thereby improving the livelihood of crores of farmers and thus furthering the objectives of NDDB. Chairman and Board of Directors of NDDB thanked the Hon’ble Minister for his guidance and assured him of full support towards the development of the dairy sector.

About National Dairy Development Board (NDDB)

National Dairy Development Board (NDDB) is a statutory body under the Ministry of Fisheries, Animal Husbandry & Dairying, Government of India. It was established in 1965 to promote, finance, and support the development of the dairy sector in the country with help of its subsidiaries – Mother Dairy Fruit and Vegetable Pvt Ltd, Indian Immunologicals Ltd, IDMC Ltd, NDDB Dairy Services, NDDB Mrida Ltd and NDDB CALF Ltd.

Seclore Puts Risk Into Focus With New Data Classification And Risk Insights Capabilities That Protect Most Critical Assets

* Company pioneering data-centric security offers new functionality that will provide customers expanded visibility and actionable insights to help secure data wherever it goes.

Today Seclore, the leading provider of data-centric security solutions, announced the release of new Digital Asset Classification and Risk Insights capabilities delivering security risk visibility and insights for the most sensitive digital assets within the enterprise, such as intellectual property, and customer and employee personally identifiable information. 

"In today’s digital age, data is the lifeblood of businesses. Digital assets, be it IP or PII, are the company’s crown jewels,” said Vishal Gupta, Chief Executive Officer at Seclore. “Yet too many organizations rely on traditional security approaches that rigidly secure perimeters and devices but leave organizations without a clear understanding of who has their data, where it is, and how it’s being used. Our new Digital Asset Classification and Risk Insights functionalities provide organizations powerful visualizations, detailed logs, and actionable insights so security teams can confidently protect data, no matter where it travels inside or outside the enterprise.”

The expanded capabilities enable enterprises to precisely classify, understand, protect, and control their data across any user, device, application or cloud in order to prevent data theft and achieve compliance. Legacy classification solutions have existed in the market for decades, but most are standalone tools that require users to have separate tools to protect and control the digital assets. The new Digital Asset Classification capability from Seclore, combined with its new risk insights, enables enterprises to simultaneously classify and protect their most sensitive digital assets and visualize where the greatest risks lie in real time.

“At MODON, we are always looking for ways to increase the security of our sensitive information without introducing friction for authorized users. The new Seclore classification capabilities that we tested have the ability to apply controls based on level of sensitivity, without restricting collaboration or slowing down operations,” said Majid Ahmad Bin Sawad, Director, Cyber Security at MODON. “The Seclore Digital Asset Classification would give our customers so much control over their sensitive digital assets, so they know they don’t get into the wrong hands or fall into non-compliance.”

Cross-Enterprise Risk Visibility and Actionable Insights

The new Digital Asset Classification and Risk Insights functionalities expand the visibility of sensitive assets and provide insights into risk exposure by:

Enabling security teams to create custom classification categories and apply labels and sub-labels to digital assets and emails based on their level of confidentiality.

Discovering sensitive information and providing users with suggested classification labels at the time of asset or email creation, or while the digital asset is in use. 

Providing insights into classification and risk trends in real time through three interactive dashboards:

Risk Insights: Key insights of increasing or decreasing risk activity, including data extraction activities, risky unauthorized attempts, and access by external users. Snapshot current risk and prevented risk regarding data extraction risk trends and geographic breakdown. 

Digital Asset Classification: Breakdown of classification activities taken across the enterprise, classification activities by label, percentage of suggested classification labels accepted or ignored, and whether additional protection was applied to classified documents. 

Protection: Authorized activities and unauthorized attempts taken on digital assets by domain, classification label, and geographic location, as well as actions taken on documents (open, share, print, screenshot, protect, unprotect, etc.).

Enforcing granular controls and reporting capabilities that align with regulations and industry standards, such as GDPR, SDAIA, HIPAA, and PCI-DSS.

Classification-Driven Protection & Control

The Digital Asset Classification functionality introduces new protection and control capabilities for sensitive digital assets and emails, enabling organizations to apply more protection with less friction.

Classification-driven Protection: Enforce protection policies by classification label and team, including which actions can be taken and domain controls, for scalable and easy asset protection across the enterprise. 

Dynamic Watermarks: Thwart exfiltration of sensitive information with customizable watermarks, including identifiable information like name or email address.

Visual Labeling: Apply visual classification labels to inhibit unauthorized sharing and consumption of sensitive assets. 

The Digital Asset Classification and Risk Insights functionalities are now available in English and Arabic in the Seclore platform and are included with Seclore’s core data protection and control solution offering.

Tech Mahindra Ltd Records Disappointing Operating Performance

BUY

CMP: Rs1003 

Target Price: Rs1170

TechM delivered a weak operating performance in Q4FY23. Revenue stood flat QoQ at USD1,668mn (0.3% CC QoQ), driven by CME (1.8%), while Enterprise declined by 0.7% QoQ. EBITM declined 80bps QoQ to 11.2%. Revenue growth was led by CME (0.7% in USD), Manufacturing (1.5%), BFSI (0.3%), and Others (2.7%), while Retail, Transport and Logistics declined 10.4% sequentially. Among geographies, Europe led the growth, at 3.5% QoQ, while Americas and RoW declined 0.3% and 2.9%, respectively. Net new deal wins came in at USD592mn, lower than the prior quarters, reflecting cautious approach by clients considering macroeconomic uncertainties. Management highlighted the macro environment remains challenging and the company is witnessing slower decision making, with discretionary spend and transformational deals witnessing an additional layer of decision making. Management expects growth to remain soft in H1FY24 and anticipates improvement in H2FY24, based on its conversations with clients. Increasing offshoring, pyramid rationalization, structural actions to divest non-profitable businesses, and optimizing sub-contracting cost remain the levers for margin expansion in the medium term. We have cut our EPS estimates for FY24/25 by 7.3-13.7% to factor in the Q4 miss and lower margin assumptions. Considering inexpensive valuations and a ~5% dividend yield, we retain our Buy rating on the stock with a TP of Rs1,170 at 16x Mar-25E EPS (earlier Rs1,270).

Result summary: TechM reported revenue of USD1.67bn, flat QoQ (CC 0.3% QoQ), a tad below our expectations of USD1.69bn. CME delivered resilient performance on account of continued strength in 5G and network. Enterprise reported weak performance on account of the decline in Retail, Transport and Logistics and flat performance in BFSI and Technology. EBITM declined 80bps QoQ to 11.2% due to currency headwinds (-60bps) and higher SG&A expenses (-90bps), partly offset by operating efficiencies and lower subcontracting costs (+70bps). Net profit stood at Rs11.18bn. Headcount declined for the second consecutive quarter, down by 4,668 in Q4 to 152,400. Utilization at 86% was flat sequentially. The number of USD5mn and USD10mn clients increased by 1 and 3, respectively. Revenue from the top-5 clients declined for the fourth consecutive quarter, down 5% QoQ. Net new deals for the quarter came at USD592mn, the lowest in the last nine quarters. The company declared a final dividend of Rs32/share, taking the total dividend for FY23 to Rs50/share. What we liked: Resilient CME performance, attrition moderated to 15% in Q4 vs. 17% in Q3. What we did not like: Margin miss and back-ended growth recovery expectations in FY24.

Earnings call KTAs: 1) Management stated macro uncertainties prevail and some customers are slowing down their spending. Discretionary spends and transformation deals are going through an additional level of decision-making. The pipeline is skewed more towards cost-takeout deals. 2) Robust pipeline, positive client conversations, and encouraging technology metrics give medium-term optimism to the management. 3) Management expects some carry-forward impact of price hike benefits in FY24, but it is limited compared to FY23. 4) Wage hikes would be staggered across quarters in FY24. 5) TechM expects revenue growth and margin trajectory to be better in H2FY24 vs. H1FY24, which is likely to be soft. 6) Margin levers are flattening pyramid, offshore shift, exiting low-margin business, automation, better business and geo mix, and optimization of sub-contracting costs. 7) SG&A grew in Q4 due to continued investments in business taking a longer-term view. Management expects SG&A costs to normalize to ~13.5% of revenue. 8) LTM attrition trended downwards to 14.8% for Q4 vs. 17.3% for Q3. 9) DSO stood at 96 days. 10) Hedge book at Q4-end stood at USD2.3bn.  

Coforge Records Steady Performance; Profit Miss On One-Offs

HOLD

CMP: Rs4051  

Target Price: Rs4000

Coforge reported weaker-than-expected operating performance in Q4, due to a margin miss. Revenue growth in constant currency terms came ahead of expectations; however, impact of lower cross-currency tailwinds (+30bps) and hedge loss (-70bps) led to a slight miss on reported USD revenue. Revenue grew by 4.7% CC QoQ, with growth being broad-based across verticals, geographies and service lines. Adj. EBITDAM expanded 110bps QoQ to 19.6%, but missed Management guidance and our expectations. Coforge delivered a robust deal intake of USD301mn in Q4FY23 (vs. USD345mn in Q3), taking the order book, executable over the next 12 months, to USD869mn – a 20.7% YoY growth. Despite headwinds from mortgage weakness, BFS grew 4.5% CC QoQ. Insurance recovered in Q4, delivering 5% CC QoQ growth. Backed by a healthy large-deal intake, all-time high executable order book, anticipated broad-based growth and diversified business offerings, Management has guided for 13-16% CC revenue growth for FY24. It expects gross margin to expand by 50bps in FY24 and adj. EBITDAM to be at levels similar to that in FY23 (~18.3%). We have tweaked our EPS by 0.5-1.2% over FY24E/25E, factoring-in the Q4 performance and FY24 guidance. We retain HOLD, with TP of Rs4,000/share (Rs3,970 earlier), at 21x Mar-25E EPS.

Result summary: Revenue grew by 5.0% QoQ (4.7% CC) to USD264.4mn in Q4, against our expectations of USD264.6mn. Adjusted EBITDAM (excluding ESOP costs and acquisition-related expenses) expanded by ~110bps QoQ to 19.6%. EBITM expanded by ~100bps QoQ to 15.5%, coming in 50bps below our expectations of 16%. Adjusted profit (excluding the one-off) was up 2% QoQ to Rs2.33bn, below our expectations due to the operating performance miss. Reported profit stood at Rs1.15bn and was impacted by one-off expenses – provision of Rs523mn on account of expenses incurred on ADR listing and Rs803mn towards the gift (Apple iPad) to all employees, to commemorate achievement of the USD1bn revenue milestone. Order bookings were healthy, with total fresh order intake of USD301mn (The Americas: USD130mn; EMEA: USD113mn; RoW: USD58mn), including two large deals signed in Q4 (one each in BFS and Travel). What we liked: Healthy FY24 revenue growth guidance, broad-based revenue growth, healthy deal intake, an all-time high NTM executable order book, moderation in attrition. What we did not like: Margin guidance miss.

Earnings-call KTAs: 1) Q4 was the 5th consecutive quarter of the company signing an over USD300mn order intake. 2) Company is making necessary investments in the front-end team and capabilities, to drive revenue to the next milestone of USD2bn. It expects adjusted EBITDAM to be at least 150bps higher vs FY23, when the company hit the USD2bn revenue mark. 3) Adjusted EBITDAM for FY23 stands at 18.3%, missing the guidance of 18.5-19%, which Management attributes to the higher hedge losses. 4) Salary hike is expected to be lower than last year’s, and will be effective April-23. Management guided for adjusted EBITDAM of ~16.5% in Q1FY24. 5) Company re-assessed future projections of taxable profits of one of its foreign subsidiaries and recorded deferred tax assets on losses of that subsidiary amounting to Rs108mn, consequent to certain amendments made in the customer agreement. 6) Gross margin expanded by ~70bps QoQ to 34.1% in Q4, driven by improved utilization, offshore shift and absence of furloughs. 7) Utilization saw ~120bps sequential improvement and stood at 81.5%. 8) LTM attrition (excl. BPS) came in at 14.1%, improving by 170bps QoQ. 9) Offshore mix stood at 50.7%; Management expects this to top-out at 54-55%. 10) Company does not have significant exposure to US regional banks, barring Fifth Third Bank, with which its relationship is primarily in operations management. 11) It expects ~USD1.7mn expense recognition in Q1FY24 towards the USD1bn revenue milestone celebration.

Wipro Ltd Records Stable Operating Performance; Weak Guidance

BUY

CMP: Rs374  

Target Price: Rs470

Wipro reported stable operating performance in Q4. Revenue was marginally below our estimate, while margins were broadly in-line. Management remains cautious about growth prospects, citing slowdown in select sectors (BFSI, Technology) and weakness in discretionary spend. Wipro has signed 15 large deals worth USD1.1bn TCV in Q4 and total deal intake was USD4.1bn (book-to-bill at ~1.5x). Management highlighted that the deal pipeline remains robust and the pipeline is more skewed towards cost takeout and vendor consolidation deals. The company is not witnessing any material project cancellations, although it has seen some ramp downs due to lower discretionary spends. Among verticals, BFSI and Technology are witnessing softness, with Retail and CPG also affected. Oil & Gas and Healthcare continue to be resilient. The cautious approach by clients due to macro uncertainties is leading to softness in near-term spending which is reflected in the weak Q1FY24 guidance. Wipro has guided for sequential revenue decline of 1% to 3% (in CC terms) in IT Services (including India SRE) for Q1FY24. It announced a buyback of Rs120bn at Rs445 per share (~5% of equity). Despite the strong deal intake over the last few quarters, Q1 revenue growth guidance missed expectations, and divergence between deal intake and revenue conversion remains puzzling. We cut our EPS estimates for FY24/25 by 1.3%/3.4%, factoring-in the Q4 performance, buyback and weak Q1 guidance. We maintain BUY on the stock, with TP of Rs470/share at 17x Mar-25E EPS (earlier, Rs480).

Result Summary: Wipro reported revenue of USD2.82bn, up 0.7%/3.7% QoQ/YoY (0.6%/6.5% QoQ/YoY in CC terms), a tad below our estimate of USD2.84bn. Financial services, manufacturing, communications, consumer, and technology witnessed sequential decline of 2.4%, 0.3%, 4.4%, 0.9%, and 2.7%, respectively, while ENU and Health grew 5.9% and 2% QoQ in CC terms. Among geographies, Americas 1, Americas 2 and Europe saw a decline of 1.5%, 0.3% and 0.6% QoQ, respectively, while APMEA grew by 0.7% QoQ. IT Services’ EBITM remains flat QoQ at 16.3%, in line with our estimates. PAT grew by a marginal 0.7% QoQ to Rs30.7bn, but fell short of our estimate of Rs31.8bn. Headcount declined for the second consecutive quarter, down by 1,823 to 256,921. Attrition also declined, for a fourth straight quarter, with LTM attrition at 19.2% in Q4. What we liked: In-line operating performance, attrition moderating to 19.2%, healthy deal intake. What we did not like: Weak guidance for Q1FY24.

Earnings-call KTAs: 1) Company is not facing any client-specific issues, projects cancellation, or delivery issues, etc. Softness is largely due to delay in decision making amid macro uncertainties and weak discretionary spending. 2) The macro environment remains uncertain and some recent events led to greater cautiousness. Management is watchful of how the situation pans out and believes that growth will come back once clarity emerges. 3) Company is not seeing a radical change in the deal closure cycle. Slowdown in discretionary spending in BFSI and Technology is evident. Pockets of consulting business like security, SAP, etc are faring well. The consulting business is cyclical and the first to get impacted during a slowdown, but also the first to improve. 4) Expects EBITM to remain near the current levels in the short term and recovery should trend towards ~17% with growth. 5) Wage hike would be similar to last year’s and is likely in Q2FY24. Variable pay would be ~80% on an overall basis. 6) Voluntary attrition decreased by 330bps QoQ to 14.1% on a quarterly annualized basis. 7) Net cash at the end of Q4 was USD3.1bn. With Q1 cash generation, it may remain above USD1.5bn post the buyback. 8) Wipro on-boarded over 22,000 freshers in FY23.

Enabling Veterans Of Indian Army With Employable Skills; Enhancing Learning Experience At Public Schools

Learning Links Foundation commenced a social impact initiative in November 2022 through two unique projects, the Veteran Skilling Project, and the School Transformation Project. These projects are supported by Fiserv Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology solutions and delivered in partnership with United Way Mumbai.

The Veteran Skilling project aims to enhance employable skills of the veteran community and create new career opportunities for them. This project was delivered in close coordination with the Army Welfare Placement Organization and select military establishments. The School Transformation project supports infrastructural upgradation in three government schools, one each in Bengaluru, Chennai and Pune, with the help of respective state departments of education.

“At Fiserv we believe we can do well by doing good, which is why Corporate Citizenship is part of our larger strategy of creating shared value for all. We are committed to engaging with the communities where we live and work, and cultivating a diverse inclusive culture where everyone is recognized and supported. Our relationship with Learning Links Foundation is founded on our shared idea that education and skilling are the path to an empowered society. Together, we hope to deliver abilities and opportunities across an ever-widening scope of our society. Giving Back is an integral part of our culture at Fiserv, and we shall continue to do so in the most impactful ways we can “, says Lt. Col. Sachin Wakankar, SM (Retd), Director of Communication and Corporate Citizenship at Fiserv in India.

Veteran Skilling Project

80 veterans completed the Veteran Skilling Project at Army Service Corps Center (South), Bengaluru. These veterans received skill enhancement training aligned with their prior work experience, thus helping them secure re-employment post superannuation from active military service. Over 50 veterans were trained in ‘Electric Vehicle Business Management’, receiving hands-on training on retrofitting and maintenance of electric vehicles. Nearly 30 veterans were trained on ‘Tally’ software, equipping them for accounting assignments across corporates. These training programs have been customized to include 60 hours of training including classroom sessions, practical training, guest lectures and field visits. Programs such as these have helped several veterans secure employment and successfully pursue entrepreneurial ventures.

“These skilling programs have been very well received by our veterans and have motivated them to undertake start-ups and become entrepreneurs/self-employed with the help of acquired skills and knowledge. We thank Fiserv for the wonderful opportunity provided to our Veterans”, says Maj. Gen Ajay Singh, SC, SM (Retd.) Managing Director, Army Welfare Placement Organization (AWPO).

School Transformation Project

At the other end of the support spectrum the School Transformation Project addresses the principle infrastructural needs of primary and secondary schooling.  Learning Links Foundation is working with public schools and state administration to transform existing government schools into innovative learning spaces. Designed to be a comprehensive solution, the project builds an effective learning environment promoting all-around growth for the studentship and encouraging working environment for the educators. The project brings upgraded infrastructure through experiential STEM (Science, Technology, Engineering and Mathematics) laboratories, inviting libraries, improved sanitation facilities, safe drinking water, sports kits and an impressive school façade, benefitting over 1500 students and 30 teachers. The three schools identified for infrastructure enhancement are:

(i) GMPS Parangipalya, HSR Layout, Bengaluru, Karnataka

(ii) Panchayat Union Primary School (PUPS), Nanmangalam, Chennai, Tamil Nadu

(iii) Sarthi Vidyalaya, Kharadi, Pune, Maharastra

About Learning Links Foundation:

Learning Links Foundation is a not-for-profit organisation that is operating with a vision to foster purpose and progress by unlocking lifelong learning. Established in 2002, the Foundation has worked extensively in the education and skill development sectors across India. To know more, visit www.learninglinksindia.org

About Fiserv:

Fiserv, Inc. (NASDAQ: FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World’s Most Admired Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.

About United Way Mumbai:

United Way Mumbai (UWM) is a non-profit organization working in urban and rural communities across the country to identify and implement the most impactful solutions to community problems. As a leader in the Indian development sector, UWM works closely with a network of 500+ non-profits and many corporates for their CSR programmes, workplace giving campaigns and other events. This includes designing CSR policy and strategies, due diligence of non-profit partners, programme implementation, employee volunteering, impact assessments and financial and programmatic reporting. Over 21 years, UWM has partnered with 300+ companies and 100,000+ individual donors, investing INR 843 crore in community development projects. UWM's expertise lies in identifying, designing & implementing high-impact projects in Education, Health, Income, Environment and Public Safety. 

LTIMindtree Reports Strong FY23; Full year Constant Currency Revenue Up 19.9% & Order Inflow At USD 4.87 Billion

LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced its consolidated results today for the fourth quarter and full year ended March 31, 2023, as approved by its Board of directors.

“We are pleased to report a strong FY23, with a broad-based full year revenue growth of 19.9% in constant currency,” said Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree. “This industry-leading performance positions us well to deliver continued profitable growth in FY24. As we move to unified systems & processes, we are ready to exploit the synergies. Our Q4 revenue came in at a healthy USD 1.06 billion - up 13.5% year-over-year in constant currency and 11.9% in reported USD terms. Our order inflow for the quarter came in at USD 1.35 billion, helping us close the full-year order inflow at USD 4.87 billion. We added 31 new clients for Q4 and increased our count of USD 50 million plus customers by 2 to 13. Our full-year operating margin was at 16.2% and the basic EPS was at INR 149.1. Client requirements have changed over the last quarter, and we are now meeting the new requirements to deliver cost savings which are being directed to fund in flight transformation programs.”

Key financial highlights:

Year ended March 31, 2023

In USD:

-          Revenue at $4,105.7 million (growth of 17.2% Y-o-Y)

-          Net profit at $545.7 million (growth of 3.0% Y-o-Y)

In INR:

-          Revenue at Rs 331,830 million (growth of 27.1% Y-o-Y)

-          Net profit at Rs 44,103 million (growth of 11.7% Y-o-Y)

Quarter ended March 31, 2023

In USD:

-          Revenue at $1,057.5 million (growth of 1.0% Q-o-Q / 11.9% Y-o-Y)

-          Net profit at $135.6 million (growth of 11.6% Q-o-Q / decline of 7.8% Y-o-Y)

In INR:

-          Revenue at Rs 86,910 million (growth of 0.8% Q-o-Q / 21.9% Y-o-Y)

-          Net profit at Rs 11,141 million (growth of 11.3% Q-o-Q / 0.5% Y-o-Y)

Other FY23 highlights:

Clients:

-          728 active clients as of March 31, 2023

-          $1 million+ clients increased by 56, total 383 (increased by 9 in Q4)

-          $10 million+ clients increased by 5, total 81 (no change in Q4)

-          $50 million+ clients increased by 3, total 13 (increased by 2 in Q4)

People:

-          84,546 professionals as of March 31, 2023

-          Trailing 12 months attrition was 20.2%

Deal Wins

·         Selected as the key digital transformation partner by Currys, a UK based retailer of technology products and services. This multi-million-dollar collaboration will enable Currys in strengthening its market position. LTIMindtree aims to enhance Currys' omnichannel revenue stream and drive cost transformation.

·         onsemi, a global leader in intelligent power and image sensing technologies, has chosen LTIMindtree as a strategic service provider for developing its next-generation enterprise IT support platform. This multi-year deal will involve LTIMindtree collaborating with onsemi's IT team to drive innovation and increase efficiency.  The IT transformation is part of onsemi's broader strategy to streamline operations and invest in growth areas, such as electric vehicles, ADAS, alternative energy, and industrial automation.

·         LTIMindtree has been selected by Hellenic Bank, a leading financial institution in Europe, as their exclusive Strategic Sourcing partner for their digital transformation program improving the customer experience through digitalisation, streamlining processes, and offering competitive products.

·         A North American manufacturer of high-performance building solutions chose LTIMindtree for its digital transformation journey. LTIMindtree would be the sole partner helping the client with its hybrid cloud infrastructure and 100+ enterprise applications landscape.

·         Awarded multi-year, multi-million-dollar deal by a financial insurance company to provide them application and data services.

·         Independent testing deal signed with one of the largest property and casualty insurance company in the United States.

·         An American insurance company which is the largest provider of supplemental insurance in the US has partnered with LTIMindtree for a multi-year AMS deal.

·         Chosen by a global leader of engineered products and services for agricultural equipment to provide consulting and testing services.

·         One of the major airlines in the United States has selected LTIMindtree as a partner of choice in an application maintenance deal.

Recognitions

·         Recognized in The Forrester Customer Analytics Services Providers Landscape, Q1 2023.

·         Named as a 'Leader' in ISG Provider Lens™ Google Cloud Partner Ecosystem 2022.

·         LTIMindtree named as a ‘Major Contender’ in Everest Group's Digital Transformation Consulting PEAK Matrix® Assessment 2023.

·         Recognized in 2022 Gartner® Magic Quadrant™ for Oracle Cloud Application Services, worldwide.

·         Recognized in 2022 Gartner® Magic Quadrant™ for SAP S/4HANA Application Services, worldwide.

·         LTIMindtree named as a ‘Leader’ and ‘Star Performer’ in Everest Group's Application and Digital Services in P&C Insurance PEAK Matrix Assessment 2023.

·         Named winner in the 2023 Artificial Intelligence Excellence Awards for LTIMindtree’s Canvas.

·         Earned the 2022 Innovation Awards for OnDemand Enablement Tooling from Duck Creek Technologies in the CBO (Custom Business Object) Remediation and DB Reference Data Remediation categories.

·         Recognized as One of the Best Organizations for Women, 2023, by The Economic Times.

·         Recognized at the DivHERsity Awards 2023 among the Top 5 Most Innovative Practices in the ‘Women L&D Programs’ and the Top 20 Most Innovative Practices in the ‘Women Returnee Programs’ categories.

*GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Announcements

The Board of Directors have recommended a final dividend of ?40 per equity share of par value Rs 1 each for the financial year ended March 31, 2023.

About LTIMindtree

LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by 84,000+ talented and entrepreneurial professionals across more than 30 countries, LTIMindtree — a Larsen & Toubro Group company — combines the industry-acclaimed strengths of erstwhile Larsen and Toubro Infotech and Mindtree in solving the most complex business challenges and delivering transformation at scale. For more information, visit https://www.ltimindtree.com/.  

Tata Steel Signs A Business Cooperation Agreement With MN Dastur & Company Ltd

Tata Steel has signed a business cooperation agreement with MN Dastur & Company Pvt. Ltd. to compliment capabilities in delivering end to end services from exploration of mineral reserves to Bankable Feasibility studies and detailed project reports with support in the area of engineering and infrastructure. MN Dastur shall also work with Tata Steel to deliver integrated projects spanning various minerals and geographies.

On the alliance, D.B Sundara Ramam, Vice President, Raw Materials, Tata Steel said: “We are in the mining business for more than a century with the Natural Resource Division of Tata Steel providing various exploration & mine planning services to our captive mines for sustainable mining. Since last 18 months, we have started offering our mine technical services commercially through Tata Steel Industrial Consulting to the mining industry outside Tata Steel. This agreement with M N Dastur & Company will complement our capabilities & capacities especially in the area of mine infrastructure planning and preparation of bankable feasibility report. Together with M N Dastur and our other esteemed business partners, we intend to raise the standards of such services in India in particular and internationally in general for more scientific and sustainable mine development.”

Tata Steel is the oldest and the largest private sector player in mining in India. It has been in mining space for more than a century and is operating number of mines in iron ore, manganese, chromite and coal. It brings deep knowledge and experience in the mineral exploration, mine planning, scientific mining operations and mineral processing.

Abhijit Ray, General Manager Business Development of M N Dastur & Company said: “We are pleased to start working  in collaboration with Tata Steel to deliver mine infrastructure planning and downstream mineral processing and engineering services. Together with Tata Steel and its partners in area of mine technical services we can provide integrated end to end services covering all aspects of mine planning and mine infrastructure planning including pre-feasibility and feasibility studies.”

About MN Dastur & Company

Founded in 1955 by the visionary Dr. Minu Nariman Dastur, Dastur is today one of the largest independent consulting engineering organizations in the world that enjoys a global reputation built on trust. The organization has a multidisciplinary team of professionals with an in-depth understanding of the latest trends, combining creativity with initiatives.

About Tata Steel

·         Tata Steel group is among the top global steel companies with an annual crude steel capacity of 35 million tonnes per annum

·         It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world

·         The group recorded a consolidated turnover of US $ 32.83 billion in the financial year ending March 31, 2022

·         A Great Place to Work-CertifiedTM organisation, Tata Steel Limited, together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 65,000

·         Tata Steel has announced its major sustainability objectives including Net Zero Carbon by 2045, Net Zero Water consumption by 2030, improving Ambient Air Quality and No Net loss in Biodiversity by 2030.

·         The Company has been on a multi-year digital-enabled business transformation journey intending to be the leader in ‘Digital Steel making by 2025’. The Company has received the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar and IJmuiden Plants.

·         Tata Steel aspires to have 25% diverse workforce by 2025. The Company has been recognised with the World Economic Forum’s Global Diversity Equity & Inclusion Lighthouse 2023

·         The Company has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked amongst top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016

·         Tata Steel’s Jamshedpur Plant is India’s first site to receive ResponsibleSteelTM Certification

·         Received Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17, Steel Sustainability Champion recognition from worldsteel for five years in a row, and ‘Most Ethical Company’ award 2021 from Ethisphere Institute

·         Recognised with 2022 ERM Global Award of Distinction, ‘Masters of Risk’ - Metals & Mining Sector recognition at The India Risk Management Awards for the sixth consecutive year, and Award for Excellence in Financial Reporting FY20 from ICAI, among several others

Photographs: Management and Plant facilities

Logos: Files and usage guidelines

Website: www.tatasteel.com and www.wealsomaketomorrow.com