TCS to invest Rs 690 crore to set up Innovation Park in Kochi
Tata Consultancy Services (TCS) has agreed to invest Rs 690 crore to set up an Innovation Park in Kochi. The Kerala state government has allocated 36.84 acres of land to TCS for setting up a unit for Electronics Hardware & IT/ITES in KINFRA Electronics Manufacturing Cluster at Kakkanad, Kochi. The first phase of the project will commence operations in the financial year 2023-24 (FY24). The campus will have a capacity to cater to 10,000 employees once it becomes fully operational.
Online food delivery apps such as Zomato and Swiggy will now have to collect and deposit 5% Goods & Services Tax (GST) on food deliveries instead of restaurants they pick orders from. The rule was approved by the GST Council to stop revenue leakages that were occurring under the current structure, as many restaurants were avoiding GST payments on food deliveries. There will be no extra tax burden on end consumers taking food delivery from restaurants registered with GST.
Wipro launches co-innovation space with Google Cloud in Bengaluru
Wipro Ltd has launched the Wipro-Google Cloud Innovation Arena in Bengaluru to accelerate the adoption of cloud services. The cloud collaboration space will provide in-house technical expertise and ensure seamless cloud adoption. It will also accelerate innovation to drive business transformation for customers. The arena will also showcase the talent, tools, and best practices requires to develop and deploy applications on Google Cloud.
Phoenix Mills looks to double its portfolio of retail properties by FY26
Mall developer Phoenix Mills Ltd is looking to double its portfolio of retail properties by the financial year 2025-26 (FY26). The company also wants to add 1 million square feet each year post FY26. Currently, Phoenix Mills has 6.9 million sq. ft of malls in cities such as Mumbai, Pune, and Bengaluru.
Tata Motors launches Safari Hold Edition at Rs 21.89 lakhs
Tata Motors Ltd has launched a special edition of its flagship model Safari, priced at Rs 21.89 lakh, to further spruce up the range ahead of the festive season. The Safari Gold Edition comes in two carefully crafted special colour schemes— White Gold and Black Gold. It is set to be showcased at the upcoming second leg of the VIVO IPL 2021.
Zydus Cadila gets USFDA approval for antidepressant drug
Zydus Cadila has received final approval from the US Food and Drug Administration (USFDA) to sell new generation anti-depressant Vortioxetine in the US market. The drug works by increasing serotonin (the key hormone that stabilizes our mood and happiness) in the brain. It is classified as a selective serotonin reuptake inhibitor and serotonin receptor modulator. The pharma company will manufacture the drug at the group’s formulation manufacturing facility at the SEZ, Ahmedabad.
Moratorium to give Bharti Airtel, Jio cash relief of Rs 16,000 crore per year: Report
According to industry analysts, a potential annual cash flow relief of over Rs 16,000 crore from the four-year moratorium allowed on statutory payouts will give telecos Bharti Airtel and Reliance Jio the financial headroom to participate aggressively in the 5G airwaves sale (spectrum auctions) early next year. Airtel will opt for the four-year deferred option for adjusted gross revenue (AGR) and spectrum payments. Vodafone Idea, weighed down by Rs 1.9 lakh crore of debt and with a cash balance of Rs 920 crore, is also expected to opt for the deferred payment option.
Supreme Court to review 2019 verdict in Adani Power case
The Supreme Court has decided to reconsider its 2019 judgment, which affirmed Adani Power-Mundra’s call to terminate the power purchase agreement (PPA) signed with Gujarat Urja Vikas Nigam (GUVNL). A five-judge bench issued notices on a curative petition filed by GUVNL after noting that the plea raises significant questions of law. Apart from Adani Power (Mundra), notices have also been issued to Gujarat Electricity Regulatory Commission (GERC) and an NGO, Consumer Education and Research Society.
Cadila Healthcare Q1 Results: Net profit rises 29% YoY to Rs 587 crore
Cadila Healthcare Ltd reported a 29.34% YoY increase in consolidated net profit to Rs 587.2 crore for the quarter ended June (Q1 FY22). Net profit declined by 13.5% when compared to the previous quarter. Its revenue from operations rose 14.5% YoY to Rs 4,025.4 crore during the same period. Revenue from its India business grew 43% YoY to Rs 1,943 crore, while US sales declined by 11% YoY to Rs 1,451 crore in Q1.
The pharma company has also applied to the Drugs Controller General of India (DCGI) for Emergency Use Authorisation (EUA) for its Covid-19 vaccine, ZyCOV-D.
L&T to divest entire stake in hydroelectric power project to Renew Power
Larsen & Toubro (L&T) has announced the divestment of a 100% stake in the 3×33 megawatt (MW) run of the river hydroelectric power plant owned by L&T Uttaranchal Hydropower Ltd (LTUHPL) to Renew Power Services Pvt Ltd. The sale consideration is Rs 985 crore. This move is in line with the declared L&T focus of divesting non-core assets and improving shareholder value.
Pidilite Industries Q1 Results: Net profit jumps 721% YoY to Rs 220 crore
Pidilite Industries Ltd reported a 721.77% YoY jump in consolidated net profit to Rs 220 crore for the quarter ended June (Q1 FY22). Net profit declined by 28.13% when compared to the previous quarter. Its total income rose 116.4% YoY (but declined by 13.7% QoQ) to Rs 1,942.91 crore during the same period. Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, and polymer emulsions in India.
RBL Bank gets accredited as an Agency Bank to RBI
RBL Bank has been empanelled by the Reserve Bank of India (RBI) as an ‘Agency Bank’ to conduct banking business for the Centre and state governments. The authorization will enable the private sector lender to handle a broad range of transactions related to government business, such as distributing subsidies, pension payments, and collecting taxes. With RBI’s accreditation, RBL Bank will be in a position to offer the government cost and time-efficient products and solutions.
Kitex Garments Q1 Results: Net profit rises 62% YoY to Rs 20.5 crore
Kitex Garments Ltd reported a 62.13% YoY increase in consolidated net profit to Rs 20.51 crore for the quarter ended June (Q1 FY22). Net profit jumped 148.3% when compared to the previous quarter. Its total income rose 71.9% YoY (or 39.5% QoQ) to Rs 159.04 crore during the same period. Kitex Garments is a leading manufacturer of fabric and readymade garments in India.
KFC, Pizza Hut operator Sapphire Foods files IPO papers with SEBI
Sapphire Foods India Ltd has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds via an initial public offering (IPO). The company primarily operates KFC and Pizza Hut outlets in India, Sri Lanka, and the Maldives. The IPO will be entirely an offer for sale (OFS) of up to 1.75 crore equity shares by promoters and existing shareholders. Sapphire Foods is the largest franchisee of Yum! Brands in the Indian subcontinent. It is backed by prominent investors such as Goldman Sachs, Samara Capital, and Edelweiss.
India Cements Q1 Results: Net profit more than doubles to Rs 37 crore
The India Cements Ltd reported a 120% YoY jump in standalone net profit to Rs 37.4 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 35% YoY to Rs 1,022.5 crore during the same period. EBITDA stood at Rs 165 crore, recording a growth of 3.77% YoY. The company’s cement production rose to 1.88 million tonnes (MT) in Q1 FY22, compared to 1.34 MT in Q1 FY21.
Zomato divests stake in subsidiary NexTable for $100,000
Food tech startup Zomato has divested its stake in step-down subsidiary NexTable Inc for $100,000 (~Rs 74.2 lakh). The company’s step-down subsidiary, Zomato Inc, had entered into a stock purchase agreement with three individuals— Justin Doshi, Thusith Desilva, and Robert Tyree— for the sale of shares held by it in NextTble. US-based NexTable is a cloud-based restaurant reservation and table management platform.
Bajaj Electricals Q1 Results: Net loss at Rs 22 crore
Bajaj Electricals Ltd (BEL) reported a consolidated net loss of Rs 21.87 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 15.93 crore in Q1 FY21 and a net profit of Rs 54.6 crore in the previous quarter (Q4 FY21). The company’s total income rose 22.3% YoY (but declined by 26.3% QoQ) to Rs 875.36 crore in Q1 FY22. BEL is a leading consumer electrical equipment manufacturing company based in Mumbai.
BSE issues clarification on circular regarding additional price surveillance measures
Bombay Stock Exchange (BSE) has issued a clarification on its circular on additional price surveillance measures that had triggered a major sell-off in midcap and smallcap stocks over the past two days. BSE clarified that the add-on measures that sought to limit movement in stock prices beyond their price-band limit on a weekly, monthly, and quarterly basis is only limited to X, XT, Z, ZP, ZY, Y group shares exclusively listed on BSE. The new surveillance measure will only be applicable on shares worth Rs 20 or above and having a market capitalisation of less than Rs 1,000 crore.
[The securities traded on BSE are classified into different groups. You can learn more about it here]
Manufacturing PMI contracts for the first time in 11 months in June
Manufacturing activity in India contracted for the first time since July 2020 amidst disruptions caused due to the second wave of the Covid-19 pandemic. A decline in orders, business closures, and the Covid-19 crisis triggered a sharp fall in output among Indian manufacturers in June 2021. The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 48.1 in June, compared with 50.8 in May. PMI is a month-on-month calculation, and a value of below 50 represents a contraction when compared to the previous month.
Dr Reddy’s denied approval for Phase 3 trial of Sputnik Light in India
The Subject Expert Committee (SEC) of the Central Drugs Standard Control Organisation (CDSCO) has denied permission to Dr Reddy’s Laboratories to conduct the Phase-3 trials for the Sputnik Light Covid-19 vaccine in India. Reports suggest that the immunogenicity data related to Sputnik Light were not so great, and the SEC did not find any scientific rationale for conducting further trials. Sputnik Light was developed by the Russian Ministry of Health and Gamaleya Research Institute. The vaccine is yet to be approved in India.
India’s largest car manufacturer, Maruti Suzuki India Ltd, posted a 217% month-on-month (MoM) jump in total sales to 1.47 lakh units in June. It had sold only 46,555 units in May. The company’s mini & compact vehicles segment and utility vehicle segment registered a strong rebound in sales growth.
Tata Motors Ltd registered a 78% MoM increase in domestic sales to 43,704 units in June 2021. The automaker’s passenger vehicle division posted a 59% MoM rise in sales to 24,110 units.
Mahindra & Mahindra’s passenger vehicles division posted total sales of 32,964 units in June, an increase of 89% over May. M&M’s farm equipment segment posted a two-fold jump in sales to 48,222 units.
Two-wheeler manufacturer Bajaj Auto posted a 27.3% MoM increase in total sales to 3.46 lakh units. However, the company’s two-wheeler exports declined by 14% MoM to 1.54 lakh units.
TCS expands partnership with Royal London to transform pensions platform
Tata Consultancy Services (TCS) has expanded its strategic partnership with Royal London to help them transform their pensions platform estate and deliver market-leading services to members and customers. Royal London is the largest mutual life insurance, pensions, and investment company in the UK. As part of the expanded partnership, TCS will work with Royal London to support its ambitious plans to transform into a data-driven insurer and help them drive deeper customer relationships.
SEBI bars Biocon official from securities market for 3 months in insider trading case
Market regulator SEBI has restrained an official of Biocon Ltd from accessing the securities market for three months for violation of insider trading norms. In 2017, Biocon had announced information relating to its collaboration with Sandoz, and the period of Unpublished Price Sensitive Information (UPSI) was from December 20, 2017, to January 18, 2018. Shreehas P Tambe, Senior Vice President of Biocon, traded in the shares of the company between December 19-27 in 2017, in violation of market norms. He is facing a total fine of Rs 2 lakh, which has to be paid within 45 days.
L&T Construction secures ‘significant’ orders for various businesses
Larsen & Toubro (L&T) announced that its construction arm has secured significant orders (in the range of Rs 1,000-2,500 crore) across various segments. Its water and effluent treatment business has won an order from the Uttar Pradesh State Water & Sanitation Mission (SWSM) to implement rural water supply projects under the Jal Jeevan Mission. Meanwhile, the buildings and factories business has received an order from a reputed developer to construct residential towers in Mulund (Mumbai).
Alembic Pharma gets USFDA approval for generic Nitrofurantoin capsules
Alembic Pharmaceuticals Ltd has received approval from the US Food & Drug Administration (USFDA) for generic Nitrofurantoin capsules. The drug is indicated for the treatment of urinary tract infections. According to IQVIA data, the capsules had total sales of $23 million (~Rs 171 crore) for the 12 months ended March 2021. The pharma company has received a total of 146 abbreviated new drug applications (ANDA) approvals from the USFDA.
Route Mobile signs pact with Sarv Web to acquire email communications platform
Route Mobile Ltd has signed definitive agreements to acquire an artificial intelligence (AI) driven email communication platform, Sendclean, from Jaipur-based Sarv Web Private Ltd. The company has acquired the core intellectual property (IP) for Sarv’s business email technology platform, the team of professionals that built the platform, and customer contracts. This acquisition will help Route Mobile deliver unified and unparalleled cloud-based digital communication solutions to global enterprise clients.
IPO-bound Zomato seeks CCI approval to acquire 9.3% stake in Grofers
Food delivery platform Zomato has sought approval from the Competition Commission of India (CCI) to acquire a 9.3% stake in e-grocery major Grofers. According to documents filed with CCI, Zomato has mentioned that the acquisition will not lead to any impact on the competitive landscape. This acquisition will help Zomato enter the emerging market of online grocery deliveries in India. In May, Economic Times had reported that Zomato and Tiger Global had invested $120 million (~Rs 890 crore) in Grofers.
Affle (India) Ltd has completed the acquisition of Jampp, a global programmatic mobile marketing company. This acquisition will strengthen Affle’s Cost Per Converted User (CPCU) business model and enable it to expand into fast-growing markets such as the United States and Latin America. The total cost of the acquisition was $41.3 million (~Rs 307 crore). Affle (India) provides mobile advertising services through information technology and software development services.
Covid-19 has impacted every stock. Some of them have recovered from the sharp fall of March while others are still struggling to get back to pre-covid levels. On the opposite side, Info Edgehit an all-time high of Rs 3988 on 18th November 2020.How did Info Edge manage to do it even when India is struggling to contain the virus spread? What is the company all about? Let’s read all about it out today.
Company Profile
Recruitment Solutions
Real Estate
Matrimony Business
Education as a Business
Investee Company: Zomato
Future of Info Edge
Company Profile of Info Edge
Info Edge Limited is an Indian consumer internet company founded in 1995 which operates in various business domains. It is a very unique company and is well known for its strong brands across sectors. It also plays a prominent role as a financial investor in brands that have been developed by separate enterprises. Info Edge management directly operates in recruitment solutions, real estate, education and matrimonial division.
The recruitment space comprises naukri.com, naukrigulf.com, iimjobs.com, hirist.com, firstnaukri.com, Quadrangle and jobhai.com. The real estate space is covered by 99acres.com. The education and matrimonial division comprise of shiksha.com and jeevansathi.com. Apart from this, Info Edge has a vast portfolio of an investee company. Some of the most famous companies in which they invest are Zomato, Adda247 and Coding Ninjas. You can find the whole list of companies in which they invest below. Every middle-class Indian would have directly used, or at least seen any of Info Edge’s companies. They also own about 19% of Policybazaar.
Source: Company’s Annual Report 2019-20
Recruitment Solutions of Info Edge
Info Edge’s primary business is in the recruitment space. Earlier, most of the job vacancies were published in a newspaper or other print forms. With the emergence of the internet, the recruitment market started to change. Sanjeev Bikhchandani recognized the potential and started with Indian job search engine “Naukri.com” in 1997. Currently, this brand is a clear market leader in the recruitment industry with a traffic share of more than 70%.
Source: Company’s Annual Report 2019-20
Naukri.com has acted as an early adopter of technology for years. In 2007 itself, they identified the need and role of the data scientists in business. They had set up an Analytics division in those years which helped in improving their matching algorithms. Info Edge has further evolved its recruitment business by enhancing its brand structure. They have developed several sub-brands and different platforms within the recruitment space. A few of these sub-brands are naukrigulf.com, iimjobs.com, Quadrangle and firstnaukri.com.
The main aim of these multi-brands is to support the core brand, which is, Naukri.com. Another reason for this is to make diversified portals so that applicants can get an easier, quicker and better experience. For example, naukrigulf.com focusses on replicating the naukri.com model in the Middle East. Firstnaukri.com focusses on-campus hiring. It allows freshers or newcomers to apply for the jobs.
The recruitment business has two major sources of revenue. 90% of the total revenue comes from recruiters. This refers to the job listing, employer branding, résumé shortlisting, career site management and non-recruitment advertising. 10% of the remaining revenue comes from job seekers in the form of advisory services.
Source: Company’s annual report 2019-20
Real Estate – Info Edge
99acres.com, launched in 2005,is one of India’s leading property portals which helps the customers of the real estate industry. Just like in Naukri.com, data science plays a significant role here as well. Machine Learning-based Algorithms aids to improve recommendations across the site which will improve the experience for both sellers and buyers. Just like naukri.com, 99acres.com also holds a leadership position in the market with more than 40% of traffic share.
The real estate industry has been badly hit by the Covid-19 pandemic. The industry was already struggling for a few years due to policy changes such as RERA, demonetization and GST. With Covid-19 restrictions placed earlier, construction activities and site visits reached a complete halt.
Revenue streams for 99acres mostly come from project listings, email campaigns, advertisements, resale of properties and owners monetisation. As of March 31, 2020, the total projects listed, both ready to move in and under construction, were over 170,000. Also, the total listings were around 942,000.
Matrimony Business of Info Edge
Info Edge operates in the online matrimonial industry with the help of jeevansathi.com brand. Even though there are over 1,000 such sites in India, only a handful of those including jeevansathi.com has been able to gain people’s confidence. The companies operating in this market has to deal with a lot of complexities. Issues related to online cheating, quality of data uploaded, match-making algorithms makes it tough for the players to put a strong foot in the market.
Due to many players in the market and the hardship in the business, Jeevansathi concentrates its business to North and West India. This reorientation has helped them to put more focus on the market where they can gain more. The site uses a freemium model to gain traffic. Free of cost services include listing, searching, expressing interest and accepting others’ expression of interest. Revenues are generated when users connect, communicate on the platform, demands services like increase in profile visibility and more.
Education Platform
Shiksha.com is positioned as a platform in the Indian online education business which has a high potential to grow in future. The website makes course and college selection easy for students looking for undergraduate and postgraduate programs. They boast having information for over 14,000 institutions, 40,000 plus courses and have a database of more than 35 lakh students. Shiksha generates revenues in two ways. Firstly, by offering branding and advertising solutions for colleges and universities. Secondly, by providing leads (details of potential candidates) to colleges and their agents.
Investee Company: Zomato
Zomato is India’s big food tech unicorn and one of the largest online restaurant search & discovery platforms. As on 31st March 2020, Info Edge has invested Rs 15,219.8 lakh in Zomato. It is approximately equal to 22% of the total stake in Zomato. While Info Edge has invested heavily in many other companies, analysts consider Zomato to be their biggest asset.
Zomato has three key businesses.
Listings & Reviews: It was launched in 2008 and has more than 15 lakh restaurants listed on the portal.
Food Delivery: This service was launched in 2015. Here, Zomato follows a hybrid model consisting of a combination of self-fulfilled and restaurant fulfilled orders.
Subscription Programs: Zomato Pro, the subscription scheme, was earlier called as Zomato Gold. It has both Indian and International presence and gives more features to the premium customers.
According to reports, Zomato plans to take the public route (IPO) next year. Recent reports stated that HSBC Global Research has valued Zomato at $5 billion. If this happens, the total valuation of Zomato and Info Edge will further increase. At that time, they would have the option to sell their stake and exit. Another option would be to stay with the company and support them to grow further. Fun Fact: Info Edge invested in Zomato when they were called Foodiebay. Later on, Foodiebay changed its name to Zomato.
Future of Info Edge
The pandemic has forced many companies to focus on their survival. But on the other side, companies like Info Edge have new opportunities with more adoption of digital technology by individuals and companies. At a time when most of the nation’s economic activity is going downwards, Info Edge has successfully raised Rs 18,750 million in August 2020, through a Qualified Institutional Placement (QIP).
As mentioned before, Info Edge’s business strategy of venturing into different sectors with an online medium has proven beneficial in these times. Their recruitment and matrimony business is already thriving. One site which they are waiting for things to improve is 99acres.com. It is believed that as the real estate sector of the nation improves, the company’s business on this website will also improve.
We have seen the huge spread of web portals under the umbrella of Info Edge. I believe we all have been a regular visitor on these websites or would have visited a few of them at least once. Whether it’s Zomato, Policy Bazaar, Naukri or others, we all have been a part of their large traffic share. The enormous range of brands under one house allows Info Edge to crawl into different markets and steal the market share. Companies like Info Edge should have a very bright future as the Indian population continue their transformation to the digital world.
