Here are some of the major updates that could move the markets tomorrow:
Tata Motors Q2 Results: Net loss narrows at ₹944 crore
Tata Motors Ltd reported a consolidated net loss of ₹944.61 crore for the quarter ended Sept (Q2 FY23). It posted a net loss of ₹4,441.57 crore in Q2 FY22. Its revenue from operations rose 29.7% YoY to ₹79,611 crore in Q2 FY23. The automaker’s domestic commercial vehicles business registered a 19% YoY growth in sales. The passenger vehicle (PV) business continued its strong momentum with wholesales at 1.42 units in Q2, up 69% YoY.
Adani Ports to acquire 49.38% stake in Indian Oiltanking for ₹1,050 crore
Adani Ports & Special Economic Zone Ltd (APSEZ) has entered into a definitive agreement to acquire Oiltanking India GmbH’s 49.38% equity stake in Indian Oiltanking Ltd (IOTL). IOTL is one of India’s largest operators of liquid storage facilities. This agreement also includes the acquisition of an additional 10% equity stake in IOT Utkal Energy Services Ltd, a subsidiary of IOTL.
BEML Q2 Results: Net profit rises 52% YoY to ₹16.26 crore
State-owned BEML reported a 52.5% year-on-year (YoY) rise in consolidated net profit to ₹16.26 crore for the quarter ended Sept (Q2 FY23). Its total income fell 20.4% YoY to ₹806.11 crore during the same period. Total expenses stood at ₹789.84 crore in Q2, down 21% YoY. BEML manufactures a variety of heavy equipment for earth moving, transport, and mining.
Sun Pharma signs pact with SPARC to commercialise medication in US
Sun Pharmaceutical Industries has signed a licensing agreement with Sun Pharma Advanced Research Company (SPARC) to commercialise benzyl alcohol and propylene glycol-free phenobarbital sodium powder for injection in the US market. The drug is used to treat neonatal seizures. Under the terms of the license agreement, Sun Pharma will pay SPARC an upfront payment of $10 million.
Barbeque Nation Q2 Results: Net profit jumps 143% YoY to ₹7 crore
Barbeque Nation Hospitality Ltd reported a 143% YoY jump in consolidated net profit to ₹7.1 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 40.3% YoY to ₹310 crore during the same period. The growth in Q2 was supported by improvement in the dine-in business. Both Toscano and BARQ’s international businesses posted robust performance.
TVS Motor signs pact with Amazon India to scale up EV deployment
TVS Motor Company has signed an agreement with Amazon India to scale up electric vehicle (EV) deployment and strengthen their commitment to achieving net-zero carbon. As part of this collaboration, a fleet of electric two-wheelers and three-wheelers from TVS Motor will be deployed for Amazon’s last-mile deliveries. The two entities will examine EV use cases for various Amazon business groups for its network and logistical requirements.
Godrej Properties Q2 Results: Net profit rises 54% YoY to ₹55 crore
Godrej Properties Ltd reported a 54% YoY increase in consolidated net profit to ₹55 crore for the quarter ended Sept (Q2 FY23). Its total income rose 13% YoY to ₹327 crore during the same period. The real estate developer witnessed total bookings worth ₹2,409 crore and a total booking volume of 2.71 million sq. ft in Q2. It launched four new projects and phases across three cities.
Tata Power RE to set up 150 MW solar project in Solapur
Tata Power Renewable Energy Ltd (TREPL) has received a Letter of Award from the Maharashtra State Electricity Distribution Corp Ltd (MESDCL) to set up a 150 MW solar project in Solapur. The company secured the order through tariff-based competitive bidding followed by an e-reverse auction. With this order, the total renewables capacity of TPREL has reached 5,786 megawatts (MW).
IRDAI grants final approval to Bharti AXA-ICICI Lombard deal
ICICI Lombard General Insurance Co. Ltd has received final approval from the Insurance Regulatory and Development Authority of India (IRDAI) for the demerger of the general insurance business of Bharti AXA General Insurance to itself by way of a scheme of arrangement. The demerger and transfer of the general insurance business will be effective within three days from the date of final approval. IRDAI has also granted approval to ICICI Bank for reducing its stake in ICICI Lombard to 30%.
PGCIL begins work on first EV charging station in Meghalaya
Power Grid Corporation of India Ltd (PGCIL) has laid the foundation stone for the first-ever electric vehicle charging station (EVCS) at its office complex in Shillong, Meghalaya. The EVCS is being developed under Phase-II of the Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles (FAME) India scheme. Under this scheme, PGCIL will develop 11 EVCS in Shillong— five public EVCS and six at government establishments.
RIL’s arm acquires 57% stake in Strand Life Sciences for Rs 393 crore
Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has acquired a 57.06% stake in Strand Life Sciences for Rs 393 crore. RSBVL will make a further investment of up to Rs 160 crore by March 2023, increasing its total investment to Rs 553 crore. Strand Life Sciences is a pioneer of genomic testing in India. It offers bioinformatics software and clinical research solutions to healthcare providers.
Ashoka Buildcon secures Rs 1,567 crore order for upgrading national highway in West Bengal
Ashoka Buildcon Ltd has received a Letter of Award (LoA) from Adani Road Transport Ltd for upgrading a part of the national highway in West Bengal. The order consists of six-laning of National Corridor NH-19 from Pangarh to Palsit (total design length 67.75 km) in West Bengal on an Engineering, Procurement, and Construction (EPC) basis. The accepted contract price is Rs 1,567.45 crore
Dr Reddy’s signs pact with Citrus Pharma to sell rights to anti-cancer agent
Dr Reddy’s Laboratories Ltd has entered into a definitive agreement with US-based Citius Pharmaceuticals to sell all its rights to E7777 (an engineered IL-2-diphtheria toxin fusion protein) and certain related assets. Under the terms of the agreement, Dr Reddy’s will receive an upfront payment of $40 million (~Rs 290 crore) upon closing the transaction. This will be followed by an approval milestone payment of up to $40 million related to the cutaneous T-cell lymphoma (CTCL) indication approval. E7777 has is an important component of systemic therapy for CTCL and other cancers.
Barbeque Nation raises Rs 100 crore via preferential issue of equity shares
Barbeque Nation Hospitality Ltd has raised ~Rs 100 crore through the preferential issue of equity shares to three different investors. The company’s Stakeholders’ Relationship Committee has approved the allotment of 11.77 lakh fully paid-up equity shares (of the face value of Rs 5 each) at a premium of Rs 844 per share. The shares were allotted to Massachusetts Institute of Technology (MIT), Plan Associates LLC, and Motilal Oswal Equity Opportunities Fund Series-II.
Coal India launches software for better assessment of coal resources
Coal India Ltd (CIL) has launched a software that will help in identifying thin coal seams under the earth’s crust and improve the assessment of coal resources using seismic surveys during the exploration process. The new software helps in enhancing the resolution of seismic signals, leading to the depiction of the thinnest coal seams. The software, named ‘Spectral Enhancement’, was developed by CIL’s research & development arm Central Mine Planning and Design Institute in association with Gujarat Energy Research and Management Institute.
Future Consumer focusing on Digital First model across brand activities
Future Consumer Ltd (FCL) is focusing on changing the orientation of all business and brand activities to make them Digital First, according to the company’s annual report for 2020-21. This move is based on the expectation that consumer behaviour of shifting to online shopping due to the Covid-19 pandemic will remain in the long term. FCL will continue to grow its portfolio of food, home, and personal care products. Key brands including Golden Harvest, Tasty Treat, Karmiq, Desi Atta Company will continue to drive volume and value growth.
JSPL’s shareholders approve 96.42% stake sale in Jindal Power
Jindal Steel and Power Ltd (JSPL) has received shareholders’ approval to divest its 96.42% stake in its subsidiary Jindal Power Ltd (JPL) to Worldone for Rs 7,401 crore. Of the total Rs 7,401 crore, Worldone (a company owned by the Jindal Group) will pay Rs 3,015 crore in cash and takeover liabilities worth Rs 4,386 crore of inter-corporate deposits (ICDs) and capital advances paid by JPL to JSPL. This deal will help JSPL reduce its debt of Rs 6,566.44 crore (as of December 31, 2020) and help it become a net cash firm.
Grasim Q4 Results: Net profit rises 13% YoY to Rs 2,616 crore
Grasim Industries reported a 13.3% YoY increase in consolidated net profit to Rs 2,616.64 crore for the quarter ended March (Q4). Its revenue from operations rose 26% YoY to Rs 24,398.92 crore during the same period. The company’s viscose (rayon fabric) business posted a 9% YoY growth to Rs 2,583.4 crore. Revenue from the cement business (UltraTech Cement) rose 32.72% YoY to Rs 14,405 crore in Q4. For the financial year ended March 31, 2021 (FY21), net profit grew 5.24% YoY to Rs 6,986.70 crore. The board of Grasim Industries has declared a total dividend of Rs 9 per share.
Zydus Cadila launches breast cancer treatment drug Ujvira
Zydus Cadila announced the launch of Trastuzumab Emtansine, an antibody-drug conjugate (ADC) biosimilar and a highly effective drug for treating both early and advanced HER2 positive breast cancer, under the brand name ‘Ujvira’. HER2 positive breast cancer is considered an aggressive form and constitutes 20-25% of all breast cancers. The drug is being offered at a cheaper rate of Rs 32,495 for a 100 mg vial.
Ramco Cements Q4 Results: Net profit rises 51% YoY to Rs 216 crore
Ramco Cements Ltd reported a 51.08% YoY increase in consolidated net profit to Rs 216.16 crore for the quarter ended March (Q4). Net profit has risen by 4.57% when compared to the previous quarter. Its revenue from operations rose 17.51% YoY to Rs 1,623.71 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 29.71% YoY to Rs 783.64 crore.
Salasar Techno secures order worth Rs 238 crore from PGCIL
Salasar Techno Engineering Ltd has secured an order worth Rs 238.65 crore from Power Grid Corporation of India Ltd (PGCIL). The order consists of the construction of a 201-km transmission line network and four new power substations in Arunachal Pradesh. Salasar Techno is a leading provider of customized steel fabrication and infrastructure solutions in India.
India Cements Q4 Results: Net profit at Rs 44 crore
India Cements reported a consolidated net profit of Rs 43.97 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 11.76 crore in the corresponding quarter last year (Q4 FY20). Its revenue from operations rose 25% YoY to Rs 1,472.45 crore in Q4 FY21. The company’s cement volumes rose 13% YoY to 28.90 lakh tonnes during the same quarter. The board of India Cements has approved a dividend of Rs 1 per share.
Glenmark Pharma gets USFDA approval for Icatibant injection
Glenmark Pharmaceuticals Ltd has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Icatibant injection. The injection is indicated for the treatment of acute attacks of hereditary angioedema (swelling of the skin) in adults 18 years of age and older. According to IQVIA data, the generic version of the injection had sales of approximately $223.4 million (~Rs 1,628 crore) for the 12 months ended March 2021.
Barbeque Nation Q4 Results: Net profit at Rs 6 crore
Barbeque Nation Hospitality Ltd reported a consolidated net profit of Rs 6.1 crore for the quarter ended March (Q4 FY21). It had reported a net loss of Rs 27 crore in the corresponding quarter last year (Q4 FY20). Its revenue from operations rose 19% YoY to Rs 226 crore in Q4 FY21. The company opened one new store during the quarter and is planning to expand its network by opening 20 new stores in the current financial year (FY22). Revenue from its deliveries segment jumped ~470% YoY to Rs 28 crore in Q4 FY21.
Bharti Airtel deploys 11.2MHz spectrum in 1800Mhz band across Karnataka
Bharti Airtel has deployed an additional 11.2MHz spectrum in the 1800MHz band, along with network software tools, across Karnataka to strengthen high-speed data capacity. These network software tools include pre-5G Massive, 4G Advanced, and Carrier Aggregation, which are used to step up high-speed network capacity and coverage. The telecom company has also deployed 5MHz in the 1800Mhz band across Tamil Nadu to boost capacity.
Balaji Amines Q4 Results: Net profit jumps 174% YoY to Rs 84.50 crore
Balaji Amines Ltd reported a 174.17% YoY jump in consolidated net profit to Rs 84.50 crore for the quarter ended March (Q4). Net profit has increased by 12.7% when compared to the previous quarter. Its revenue from operations rose 60.46% YoY to Rs 414.03 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 127.28% YoY to Rs 258.03 crore. The company’s board has recommended a dividend of Rs 4 per share. Balaji Amines is a leading chemicals manufacturing company based in Maharashtra.
Kellton Tech Solutions secures contract to build advanced NFT marketplace
Kellton Tech Solutions Ltd has secured a contract to build a cutting-edge Non-Fungible Tokens (NFT) marketplace using new digital technologies (including blockchain). The advanced NFT marketplace will create exceptional user experiences while buying, selling, and auctioning digital artifacts in the form of tokens. This technology infrastructure would offer higher security, efficiency, and performance. Kellton Tech is an IT and outsourcing company based in Hyderabad.
Poly Medicure Q4 Results: Net profit rises 71% YoY to Rs 38 crore
Poly Medicure reported a 71.48% YoY increase in consolidated net profit to Rs 38.84 crore for the quarter ended March (Q4). Net profit has risen by 10% when compared to the previous quarter. Its revenue from operations rose 24.29% YoY to Rs 212.95 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 41.72% YoY to Rs 135.87 crore. The company’s board has recommended a dividend of Rs 2.5 per share.
RDIF, Panacea Biotec launch production of Sputnik V vaccine in India
The Russian Direct Investment Fund (RDIF) and drug firm Panacea Biotec announced the launch of production of the Sputnik V Covid-19 vaccine in India. The first batch of the vaccine produced at Panacea Biotec’s facilities at Baddi (Himachal Pradesh) will be shipped to the Gamaleya Center in Moscow for quality control. In April 2021, RDIF and Panacea agreed to locally produce 100 million doses of Sputnik V vaccine per year.
Barbeque Nation is one of the most well-known restaurants in India. If you have visited their outlet you would be aware of the free birthday cake they serve you! It is a restaurant with great cuisines with a lot of variety. But why suddenly are we talking about delicious food? Well, Barbeque Nation has decided to take the public route and their IPO will hit the market on 24th March 2021. Let’s see in-depth how great the company is and if you should invest in this IPO or not. Ultimately, visiting a restaurant to have food and investing your money is a completely different ballgame.
Company Profile – Barbeque Nation
Barbeque Nation Restaurants was incorporated in 2006 and the first Barbeque Nation Restaurant was established in 2008. Since then, it has developed into one of the leading casual dining restaurant chains in India. Barbeque Nation has a unique concept where they allow guests to grill their own barbecue’s right at their tables. They offer various types of cuisines which attract customers of all ages. They are known for their delightful food, lovely ambience and satisfying service.
The number of Barbeque Nation Restaurants has grown steadily over the years. In 2013, they had 32 restaurants which increased to 79 by 2017. Currently, they are present in 77 cities in India and in 3 other countries. They own and operate 138 outlets in India, 5 outlets in UAE, 1 outlet in Malaysia and 1 outlet in Oman. Barbeque Nation has diversified into another brand which is called “Red Apple.” This brand operates 10 Italian restaurants in 2 cities of India (Bengaluru and Chennai).
Barbeque Nation has 70% of its outlet in metro cities. The rest 30% of the outlets are present in Tier-1 or Tier-2 cities. According to CEO Rahul Agrawal, the company would prefer to expand further keeping this ratio more or less constant. Jubilant FoodWorks is one of the financial investors in Barbeque Nation. They reportedly acquired around 10% of the total stake in Barbeque Nation very recently. Not only Jubilant FoodWorks, but Rakesh Jhunjhunwala is also one of Barbeque Nation’s financial investors. His investment firm Alchemy Capital holds close to a 2% stake or 575,000 shares in Barbeque Nation Hospitality.
About the IPO
Barbeque Nation Hospitality’s IPO will open on 24th March 2021 and will close on 26th March 2021. The total issue size of the IPO is Rs 452.87 crore. The total issue comprises of two parts: A Fresh Issue and an Offer for Sale. The fresh issue and the Offer for sale aggregate up to Rs 180 crore and Rs 272.87 crore respectively. The price band of the IPO is Rs 498 – Rs 500 per equity share. The allotment date and listing date for the IPO are 1st April 2021 and 7th April 2021 respectively.
An investor has to apply for a minimum of one lot which is equal to 30 shares. The maximum number of lots an investor can apply for is 13 or 390 shares. If the issue is oversubscribed, the maximum number of lots you will get is one. The minimum investment required by an investor is Rs 15,000. The maximum investment one can make is Rs 1,95,000.
Sayaji Hotels Limited, Sayaji Housekeeping Services Limited, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani are the promoters of Barbeque Nation Hospitality Limited. Currently, the promoters of the company have 60.21% of the total holdings. The company plans to use the net proceeds from the IPO in two ways. Their first objective is to make prepayment or repayment of all or a part of the company’s outstanding borrowings. The remaining sum of the money will be used to meet general corporate purposes.
Financial Overview
*
30 Nov 2020
31 March 2020 (FY20)
31 March 2019 (FY19)
31 March 2018 (FY18)
Total Assets
908.58
955.45
819.08
723.16
Total Revenue
236.60
850.79
742.54
590.44
Profit/Loss After Tax
-100.64
-32.92
-38.38
-5.8
(Values in Rs crore)
Barbeque Nations is a popular name as mentioned earlier but is still making a lot of losses. Their revenue has zoomed up from FY18 to FY20 but so have been their losses. This clearly shows that the revenue the company is generating is not enough to cut off the cost they are incurring. This fiscal year, their revenue collection has also decreased massively.
Till 30th November 2020, Barbeque Nations generated revenue worth Rs 236.60 crore which is one-fourth of what they collected in FY20. The major reason behind this is the lockdown due to Covid-19 which forced the restaurants to shut down completely. This has forced their losses to increase to Rs 100 crore by November 2020. Not a great sight at all!
As the company is a loss-making company, its net profit margin of -42% does not surprise me at all. Also, their debt-to-equity ratio is also 14%, which is considered to be very high. To sum up, Barbeque Nation looks very weak financially and their short-term future, amidst Covid-19, also does not look promising.
Risk Factors
Covid-19 has had a damning effect on Barbeque Nation. The lockdown induced by the national government forced their restaurants to shut down completely. Even after the lockdown, the restaurants were told to operate at 50% capacity. This has decreased revenue collection massively.
Barbeque Nation depends on third party delivery aggregators for a huge portion of their food delivery services. Any deterioration of their relationship with these third party companies can affect them immensely.
Being in the food business, the company has to continuously focus on people’s changing taste and preferences. Any failure to judge what their customers want can negatively impact their financials.
Barbeque is not exactly a premium restaurant but its prices are still on a higher side. Thus, at this price, they won’t be able to attract customers from small cities.
Due to the pandemic, the company’s expansion plans have taken a huge hit. The opening up of new restaurants was paused but they are hopeful of gathering the pace up again.
IPO Details in a Nutshell
IPO Date
March 24, 2021 – March 26, 2021
Issue Type
Book Built Issue IPO
Face Value
Rs 5 per equity share
IPO Price
Rs 498 to Rs 505 per equity share
Lot Size
30 Shares
Issue Size
Aggregating up to Rs 452.87 crore
Fresh Issue (goes to the company)
Aggregating up to Rs 180 crore
Offer for Sale (goes to promoters)
Aggregating up to Rs 272.87 crore
Allotment Date
April 1, 2021
Listing At
BSE, NSE
Listing Date
April 7, 2021
Conclusion
Till now, Barbeque has been a service-oriented business. They just started to explore the delivery business and still need to do a lot more to reap benefits. Rahul Agrawal has stated that even though they are predominantly in a casual dining business, they are focussing a lot more on the delivery space. The company is backed by some strong investors which give great positive signals to the investors before the IPO. But, we can’t forget the financial performance of the company and risk factors associated with their business in the current situation.
The huge losses incurred by the company is worrying. The surge in Covid-19 cases in a few states also adds to my worry. This demotivates me from thinking of this IPO as a perfect investment. But the current IPO frenzy is helping many investors to record profits. Being a popular brand name is always great for a company. Can this factor aid this IPO to be oversubscribed? We will find it out very soon!
IIFL Securities Ltd., Axis Capital Ltd., Ambit Capital Pvt. and SBI Capital Markets Ltd. are the book-running lead managers to the issue. I will wait till the end of 24th March and see how much the IPO is subscribed to. Do your own analysis about the company and let us know in the comments section if you find any other interesting information. You can find Barbeque Nation red herring prospectus here.
