Mphasis Ltd: Mortgage Weakness To Weigh On Q2; Expect Growth To Pick Up In H2

BUY

CMP: Rs2265 

Target Price: Rs2800

We interacted with Mr. Manish Dugar, CFO, to get his perspective on the demand environment, revenue growth, and margin outlook.

* Deal win momentum, deal pipeline buildup, and client conversation remain steady. The company highlighted pockets of weakness - mortgage, deferment in spending on horizon-3 initiatives, and furloughs announced by few clients - which may weigh on near-term growth.

* Focus on proactive large deal origination, steady expansion in competencies, client mining, new logo additions, and steady increase in deal sizes and tenure led to healthy deal TCV wins and revenue conversion. The company expects Q2 growth to be better than Q1.

* Mphasis remains confident of delivering EBITM within the guided range of 15.25-17% for FY23. EBITM was 15.3% in Q1 and is expected to remain stable with an upward bias, considering better utilization, offshore shift, flattening pyramid, pricing benefits, and lower ESOP charges.

* Weakness in mortgage business and furloughs in few accounts are likely to weigh on near-term revenue growth. We retain Buy with a TP of Rs2,800 at 25x Jun'24E EPS, given continued wallet share gains and steady expansion in addressable markets with competency build-up.

WinZO Rolls Out 2nd Edition Of Its “National Level Scholarships” - B.O.S.S

Highlights

The only gaming company to announce such an industry-academic initiative 

Partners with 4 IIM’s – Ahmedabad, Bangalore, Kolkata and Lucknow 

Exercise spread over 1000 students across 4 campuses 

Announces a corpus of INR 50 lakhs for the scholarships 

Top 3 winners to get additional prize money of INR INR 4 lakhs & INR 3 lakhs each, over and above the scholarship amount 

Scholarship amount to be used by students to fund their education/entrepreneurship ideas 

WinZO, India’s largest social gaming platform returned with season 2 of its most anticipated National Level Scholarship program - B.O.S.S (Battle of Super Scholar). With the addition of two new top B-schools IIM Bangalore and IIM Lucknow along with IIM Ahmedabad and IIM Calcutta, the second edition was even bigger compared to the inaugural 2021 edition. WinZO is the only gaming company to launch such an industry academic program to promote entrepreneurship in the online gaming sector of India. 

Commenting on the launch Bharath Reddy, Placement Coordinator of IIM Ahmedabad said that “We are happy to host WinZO with this type of unique engagement activity and also are delighted to see their quest to promote the value of entrepreneurship and innovation through WinZO BOSS”. 

WinZO B.O.S.S season 2 involves over 1000 applicants, and there are remunerations and prizes worth INR 50 lacs up for grabs. Winners can use the scholarships to fund their higher education needs/entrepreneurship ideas. Along with it, the top 20 participants were made to experienced the working environment at WinZO’s headquarters in Delhi to present their ideas to the leadership team and gain insights into the company’s operations.  

Brahmateja Pothukanoori, Winner of B.O.S.S season 2 said “I am happy to be part of this edition of WinZO BOSS, this was one of the very first offline events that we experienced here at campus. I had a chance to interact with leaders from every domain such as Product, Technology and Marketing. I am very much fascinated by WinZO’s scale and approach to be a unit economics business which is a rare find today”. 

Sanketh Mahajan from IIM Calcutta was declared runner up in this season. The top 5 finalists will be provided with Pre-Placement Offers from WinZO with INR 10 lakh each with the top three receiving an additional INR 4 lakhs and INR 3 lakhs each.  

During Interactions with the finalists of WinZO B.O.S.S season 2 Saumya Singh Rathore, Co-Founder, WinZO said, “2000s was a decade for social media and 2010s for E-Commerce; 2020s is going to be the decade for culturally relevant interactive entertainment products. India today is interestingly positioned as a hotbed of Global gaming innovation owing to its power of a billion+ digital consumer market and the best in the world digital payments system backed by the UPI. Clubbed, it is an once in a lifetime opportunity to establish Bharat as a global industry leader, and such disruption can only be possible when the best minds of the country come together to build on this opportunity. BOSS is an initiative in the same direction. It is time to Make in India for the World. We at WinZO believe in creating entrepreneurs who can build products that would forever change the way we experience the world around us”.  

WinZO had also launched a a $26 million game developer fund earlier in which over 1000 companies expressed interest. The fund aims to promote interactive entertainment goods with finance and a broad distribution network, including games, the gaming industry, content production, live-ops, and security. 

Hailing WinZO’s efforts towards promoting the industry ecosystem, Debayan Ganguly, Placement Coordinator of IIM Calcutta said that “We are excited to host WinZO on campus with second edition of BOSS with such an engaging activity. We have a huge alumni base of our students in this organisation and even the Co-founder Paavan Nanda hails from the same campus and it has always been a privilege to host such a young startup on the campus”. 

In addition to financial support and fast paced conditions for growth, WinZO attracts talent through quality of life and ownership experience for its employees. Yash Mehta, winner of B.O.S.S season 1 said that “I came across WinZO BOSS last year and won the case competition. I let go of my traditional campus offer at IIM Calcutta because I would not have got this type of exposure and ownership in any other organization”.  

Maintaining a steady growth rate with a strong focus on delivering unit economics, WinZO has become the market leader in social gaming and interactive entertainment in the country today. It is the only vernacular platform that hosts 100+ skill-based games across 6+ formats and 12+ vernacular languages. With a registered userbase of over 90 million, of which around 80% hail from Bharat (Tier II-V). WinZO is directly and indirectly employing over 1 lakh individuals and looking to grow this number to 5 lakhs in the next 18 months. 

By 2030, the size of the global mobile gaming market is anticipated to reach $338 billion, expanding at a CAGR of 12.3%. “We understand its intrinsic obligation and as the market leader in India to position it at the centre of this enormous opportunity by supporting the country's gaming and interactive entertainment technology sector and fostering an innovative environment. In line with the Hon’ble  Prime Minister Shri Narendra Modi's Make in India and Digital India objectives, WinZO seeks to promote the creation of AAA game titles and entertainment IPs of the highest calibre in India.” Soumya added. 

About WinZO:

WinZO is the largest social gaming and interactive entertainment platform in India. Launched in early 2018, the Company partners with third party developers to host games on their Android app, where users can enjoy personalized multiplayer gameplay experiences. The platform is available in 12 languages such as English, Hindi, Gujarati, Marathi, Bengali, and Bhojpuri, with over 85 million registered users. The WinZO platform facilitates over 3.5 billion micro-transactions per month across a portfolio of 100+ games. WinZO is focused on building an enthusiastic community of gamers and gaming influencers in Tier II to V cities in India. The Company envisions a future where the WinZO platform can deliver a culturally relevant and enjoyable experience in the Indian gaming ecosystem, monetized through a unique micro-transaction model.  

Download the WinZO app from www.winzogames.com  (Android) or Apple App Store. 

Zee News Announces 21-Day Contest Gyaan Bhi Inaam Bhi To Its Viewers

Zee News – most coveted and trusted news channel, announced its new campaign “Gyan Bhi Inaam Bhi” contest in order to provide a comprehensive contest experience to its viewers, which commenced on 14th August.

The contest is a part of Zee Media's efforts to adopt new ways to engage with the viewers and signify the growing popularity of news consumption. The national channel is posting questions throughout the day till 8:00 p.m., on zee news channel. The interested participants can answer by sending an SMS with the message "ZN, space, option (A/B)" to "57575". 

The campaign has an integrated 360-degree marketing approach, leveraging multiple touchpoints for optimising reach and consumer engagement. The campaign is live across all ZMCL channels as well as multiple external Hindi GEC & movie channels. More than 20 Digital properties have been targeted and heavy promotions on trade with Print Ads, Radio, and OOH are planned.

Speaking about the ongoing contest, Joy Chakraborthy, Chief Business Officer, ZMCL, said, "We, at Zee Media, with a monthly reach of 500 million population spread across the nation, have always believed in the philosophy of engaging with the viewers & interacting with them. The Zee News campaign Gyaan Bhi, Inaam Bhi, is aimed at the same direction. I am looking forward to witnessing a large number of participants for this upcoming contest."

Expressing similar sentiments, Anindya Khare, Marketing Head, Zee Media, said, “Gyan bhi Inaam Bhi is an ideal campaign to connect with the audience and gratify them. In adopting such an innovative approach, we are coming out with a campaign which is not only limited to our target audience but also touching base with different age groups through relevant information dissemination.”

About Zee Media Corporation Ltd: Zee Media Corporation Limited is one of India's leading media and entertainment companies with strong presence in the news and regional entertainment genres and is India's one of the largest News Network with 14 news channels in 10 different languages touching more than 183 million viewers and digital properties like zeenews.com and dnaindia.com.

Godrej Agrovet Signs MoU With Assam, Manipur And Tripura Governments Under NMEO-OP Scheme

Godrej Agrovet, one of India’s largest diversified agribusiness company, today announced that it has signed three MoUs (Memorandum of Understand) with Assam Manipur and Tripura state governments for development and promotion of oil palm cultivation in the region under the National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme.

Godrej Agrovet is the largest oil palm processor in India and works directly with the farmers for the entire lifecycle of their crop. The MoUs are in line with Godrej Agrovet’s long-term strategy to be the catalyst in India’s oil mission through sustainable growth of oil palm production and double farmer’s income.

In August 2021, Government of India had launched the National Mission on Edible Oils – Oil Palm (NMEOOP) with planned outlay of ? 11,040 Crore. Under this mission, Government has envisaged to raise area under cultivation of oil palm to 10 Lakh hectares by 2025-26 and 16.7 Lakh hectares by 2029-30 with special focus on the North East region and the Andaman and Nicobar Islands.

As part of the MoU signed, Godrej Agrovet will be allotted land across the three states for promotion and development of sustainable palm oil plantations in the region. The collaboration will bring new opportunities and growth in building oil palm plantation in these three state and would help to provide the required support to the farmers.

Balram Singh Yadav, Managing Director, Godrej Agrovet Limited, said, “With more than thirty years of experience in oil palm business, Godrej Agrovet has been working and educating farmers from North East on sustainable palm oil plantation processes. Currently, we have around 65,000 hectares under palm oil cultivation across the country, which we plan to increase to 1 lakh hectares in the next few years. We are confident that the National Mission on Edible Oils - Oil Palm (NMEO-OP) along with active participation of responsible organisations such as Godrej Agrovet will lead to bridging the gap in India’s oil mission.”

Sougata Niyogi, CEO – Oil Palm, Godrej Agrovet Limited, added, “We have been invested in promoting and developing north east as a growth market for palm oil cultivation for over a decade. According to industry estimates, these states have utilised less than 1% of its potential. These states promise huge opportunity for growth and improving income of the farming household. With our processing plant in Mizoram, we are prepared to sustainably serve the demand of the north east markets. With the signing of these MoUs (with Assam, Tripura and Manipur) we are confident that these states will play a key role in positively contributing towards the nation’s need for sustainable palm oil growth. With active support of the state governments we can develop 15000 hectares in four North Eastern states in the next five years. ”

India is a net importer of palm oil. The lack of domestic production not only puts a pressure on the industry and the allied sectors but also on India’s economy. India follows a sustainable model of palm oil plantation which is based on intercropping and scientific farming processes. Most of the palm oil cultivation in the country is done by converting paddy fields which have been contributing towards surplus produce.

Godrej Agrovet’s palm oil is currently present in Andhra Pradesh, Telangana, Tamil Nadu, Orissa, Goa, Maharashtra, and Mizoram. Its range of products, including crude palm oil, crude palm kernel oil and palm kernel cake, are produced at its six oil palm mills spread across the country.

About Godrej Agrovet:

Godrej Agrovet Limited (GAVL) is a diversified, Research & Development focused agri-business Company dedicated to improving the productivity of Indian farmers by innovating products and services that sustainably increase crop and livestock yields. GAVL holds leading market positions in the different businesses it operates - Animal Feed, Crop Protection, Oil Palm, Dairy, Poultry and Processed Foods. GAVL has a pan India presence with sales of over a million tons annually of high-quality animal feed and cutting- edge nutrition products for cattle, poultry, aqua feed and specialty feed. Our teams have worked closely with Indian farmers to develop large Oil Palm Plantations which is helping in bridging the demand and supply gap of edible oil in India. In the crop protection segment, the company meets the niche requirement of farmers through innovative agrochemical offerings. GAVL through its subsidiary Astec Life Sciences Limited, is also a business-to-business (B2B) focused bulk manufacturer of fungicides & herbicides. In Dairy and Poultry and Processed Foods, the company operates through its subsidiaries Creamline Dairy Products Limited and Godrej Tyson Foods Limited. Apart from this, GAVL also has a joint venture with the ACI group of Bangladesh for animal feed business in Bangladesh. Log on to www.godrejagrovet.com. 

Ambuja Cement Foundation’s Industrial Training Institute At Chandrapur, Maharashtra Recognized As Best Industrial Training Institute

* Managed by Ambuja Cement Foundation, CSR arm of Ambuja Cements, under its Skill and Entrepreneurship Development Programme

* The Foundation has imparted skill training to over 88,000 youth with a placement rate of 76% from rural and semi urban areas

Ambuja Pvt. Industrial Training Institute, run by Ambuja Cement Foundation, CSR arm of Ambuja Cements, at Chandrapur, Maharashtra was awarded with the Best Industrial Training Institute (ITI) by the Directorate of Vocational Education and Training. 

The Skill Development & Entrepreneurship Department, Maharashtra honoured the Industrial Training Institute for exceptional performance in the skill development sector. The award had a rigorous three stage process and the team was scrutinized based on infrastructure, training performance, admissions and other skill related activities.

The training centre runs three courses in Electrical, Welding and Fitter Fabrication with each batch of 20 trainees and 5 units for practical training. Apart from the basic curriculum, trainees also undergo soft skill training, computers, market visits, entrepreneurship skills and on the job placement opportunities.

The Foundation’s Skill and Entrepreneurship Development Institute (SEDI) is a unique skilling initiative that focuses on creating sustainable livelihoods for rural youth, making them industry-ready through practical vocational training. The initiative also encourages entrepreneurship among its students and motivates them to start their own venture to improve their economic condition. SEDI is running 43 certified courses at its 35 centres in eight domains such as IT/ITES, electronics, health, construction, beauty and wellness, hospitality and tourism, automobile, capital goods, retail, telecom etc.

Mr. Neeraj Akhoury, CEO India Holcim and MD & CEO of Ambuja Cements Ltd., said, “It is a proud moment for us that our efforts to skill advancement are being recognized by the country. We are really glad that we are able to help communities and serve the society at large. We continue to achieve this aim to transform the lives of people in rural areas and reduce the skills gap our country is facing.”

Ms. Pearl Tiwari, Director & CEO, Ambuja Cement Foundation added that, “Every year, 15 million youth enter the workforce, however industry studies say that more than 75% of them are not ‘job-ready’. In such a scenario SEDI’s achievement of providing vocational training to over 88,000 youth to make them employable, is a matter of immense satisfaction. Foundation is committed to transforming the lives of people in rural areas by creating livelihoods - equipping rural men and women with the necessary skills to find a job.  We look forward to continuing our efforts to bridge the skills gap that India is facing, and contributing to the Government’s Skill India Mission.”

Ambuja Cement Foundation through its Skill and Entrepreneurship Development Institutes (SEDI) has imparted skill training to over 88,000 youth with a placement rate of 76% from rural and semi urban areas across 10 Indian states. With gender diversity as one of its core values, the Foundation has also maintained a healthy 40:60 female-male ratio in each SEDI centre. Moreover, it has trained 3166 women in male dominated technical domains like welder, security guards, electricians, and technicians and has also placed 2153 women in various organisations.

India Needs An Estimated 100,000 Eye Transplants Annually

By: Dr. Shibu Varkey, MS, DNB, DO, FRCS (UK) Regional Medical Director, MaxiVision Eye Hospitals

* More awareness required on eye donation to give vision to many

The National Eye Donation Fortnight is observed every year from 25th August to 8th September. It is an initiative which aims to create awareness among people on the importance of eye donation and to motivate them to pledge their eyes for donation after death.

Blindness due to corneal problems affects 4.5 per 1000 individuals in India. Leading causes of corneal blindness are corneal injuries and corneal infections which occur in agriculture and industrial sectors and so the affected individuals are mostly in the age group of 40 to 60 and are the breadwinners of the family. Children can also be affected due to injuries and nutritional deficiencies mainly of Vitamin A

Prevention of corneal blindness by adopting safety precautions to prevent injuries and effective treatment of corneal infections should be the main focus. However, Cornea transplantation is the final solution when all other attempts to treat the affected cornea fails

Currently India needs an estimated 100,000 transplants annually to clear the backlog of corneal blindness. This calls for a fourfold increase in current eye donation numbers. However, the awareness level of eye donation continues to remain low and hospital-based cornea retrieval programs are underutilised.

Anyone irrespective of age or gender can pledge their eyes to be donated after their death, it doesn't matter it the person wore glasses or had cancer or diabetes or blood pressure or any other illness, only few conditions like HIV, hepatitis B and certain rare viral diseases are considered contraindications for eye donation

Since eye donation is done after death, it is important to inform the next of kin of one's decision while still alive. Soon after the death of the donor the relatives should inform the eye bank or hospital to which the cornea was pledged.

It is essential to harvest the corneas within six hours of the donor's death. The eyes of the deceased should immediately be closed and covered with cotton or a wet cloth to prevent damage. Harvesting the corneas is a very short procedure and always a dummy cornea is replaced to prevent disfigurement of the donor's face.

Now with newer techniques and technologies of corneal transplantation, at least 3 persons can benefit from a single cornea that is donated, as against a single person from a single cornea in traditional surgery.

Eye donation is one of the noblest of acts and is supported by all religious texts and holy books. If the two eyes of one's loved ones can give light to 6 persons and if as a result bring 6 families out of despair, then no one should hesitate to call up the nearest eye hospital or eye bank to pledge their eyes today

SIA To Restore Pre-Covid Services To Bengaluru With Special Fares Starting From Rs 21,500

Catering to increased demand, Singapore Airlines (SIA) is pleased to announce a 100 per cent restoration of its pre-Covid services to Bengaluru.  

Starting 30 October 2022, the Airline, which currently flies seven times weekly from the city, will go back to operating 16 times a week. The complete flight schedule can be found in Annexe A. 

To celebrate the occasion, the Airline has also announced a special fare promotion for travel from Bengaluru to popular countries across Asia, including Cambodia, Indonesia, Malaysia, the Philippines, Korea, Thailand and Vietnam.   

Customers can avail of promotional fares when they book tickets between now and 14 September 2022. More details about the promotion can be found here.  

The additional flights from Bengaluru will not only provide greater flexibility for arrival into Singapore, but will also give customers more options and better connections for travel to key onward destinations in the SIA network such as Australia, New Zealand and USA.  

Mr. Sy Yen Chen, General Manager India for Singapore Airlines said, “We have been steadily restoring our operations across India to pre-Covid levels, and Bengaluru is no exception. We have seen healthy demand from the city, and this increase in capacity coupled with special fares to popular holiday destinations, will give our customers many attractive options to pick from when they plan their overseas trips in the coming months.” 

From 30 October 2022, subject to regulatory approvals, Singapore Airlines will have restored 100 per cent of its pre-Covid services to India, i.e. the Airline will operate 96 flights weekly from eight cities across the country.