Niva Bupa Health Insurance is set to launch its IPO with total issue size of ₹ 2200 crore, which comprises fresh issue of ₹800 crore and offer for sale of ₹1400 core.
IPO Subscription Period
Open Date: November 7, 2024
Close Date: November 11, 2024
Allotment Date: November 12, 2024
Listing Date: November 14, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹70 – ₹74 per Share
Face Value: ₹10 per Share
Minimum Lot Size: 200 shares
Investment Requirement:
Retail Investors: Minimum ₹14,800 (200 shares)
Small Non-Institutional Investors (sNII): 14 lots (2800 shares) – ₹207,200
Big Non-Institutional Investors (bNII): 68 lots (13,600 shares) – ₹1,006,400
Incorporated in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector.
Niva Bupa offers a variety of health insurance policies catering to individuals and families, covering hospitalization, pre- and post-hospitalization expenses, and additional benefits like annual health check-ups, daycare treatments, and ambulance services.
Popular plans include Health Companion, ReAssure, and GoActive, which provide customizable options to meet diverse healthcare needs. The company’s products are broadly categorized into
Retail products designed for individuals and families.
Group products intended for employers and employees.
As of March 31 2024, the company had 14.73 million active lives insured. As of March 31, 2024, the company is present across 22 states and four union territories in India.
Financial Highlights
Revenue Growth: Decreased by 21% from ₹413.07 crores (FY 2023) to ₹328.71 crores (FY 2024)
Profit After Tax (PAT): Rose by 650%, reaching ₹81.85 crores in FY 2024
Net Worth: ₹2049.6 crores
Total Borrowing: ₹250 crores
Key Performance Indicators (KPIs):
ROCE: 13.69%
RoNW: 5.68%
P/BV: 6.14
EPS (Pre-IPO): ₹0.48
EPS (Post-IPO): ₹-0.42
P/E Ratio (Pre-IPO): 153.7x
P/E Ratio (Post-IPO): -177.74x
IPO Objectives
The company proposes to utilise the Net Proceeds towards the following objects:
Augmentation of its capital base to strengthen solvency levels and
General corporate purposes
Subscription Status (As of November 8, 2024, 7:02:07 PM)
Retail: 0.76x
QIB: 0.83x
NII: 0.35x
Overall Subscription: 0.69x
Total Applications Received: 20,51,35,135 shares for 29,72,97,298 shares bid.
Recommendation
Apply (for Long-term investment) Niva Bupa Health Insurance Ltd. stands as one of the larger players in India’s health insurance sector, boasting strong financial performance and a well-diversified portfolio. However, the high Price-to-Earnings (PE) ratio indicates overvaluation, which could limit immediate upside. For those considering applying, tepid investor sentiment around the IPO suggests a relatively lower likelihood of strong listing-day gains. Long-term investors, however, may find potential in adding this stock to their portfolios, given the sector’s growth trajectory and Niva Bupa’s established market position.
Swiggy, one of India’s leading food delivery and hyperlocal service platforms, has officially launched its much-anticipated Initial Public Offering (IPO), marking a significant milestone in the company’s journey since its founding in 2014. Swiggy’s IPO, valued at ₹11,327.43 crore, includes a fresh issue worth ₹4,499 crore (11.54 crore shares) and an offer for sale of ₹6,828.43 crore (17.51 crore shares). The IPO opened for subscription, with a price band set at ₹371-₹390 per share. Retail investors need a minimum investment of ₹14,820 for 38 shares, while employee allocations include a 750,000-share reservation at a ₹25 discount. Allotments will be finalized on November 11, with listing on the BSE and NSE anticipated for November 13, 2024. Founded in 2014, Swiggy is a leader in food delivery and hyperlocal services in India, with a significant presence through services like Instamart for grocery delivery, capturing a broad online market share.
IPO Subscription Period
The Swiggy IPO opensfor subscription from November 6, 2024, and will close on November 8, 2024. The finalization of the allotment is expected by November 11, 2024, with refunds being initiated the same day.
Pricing and Lot Details
The Swiggy IPO offers an opportunity to invest in one of India’s top food and grocery delivery platforms, with the IPO open from November 6 to November 8, 2024. Key details for potential investors include:
Price Band: The IPO price is set between ₹371 and ₹390 per share.
Lot Size: Investors must purchase a minimum of 38 shares, totaling approximately ₹14,820 for retail investors at the highest price.
Issue Size: The IPO aims to raise around ₹11,327.43 crore, comprising a fresh issue of ₹4,499 crore and an offer for sale of ₹6,828.43 crore
Face Value: Rs. 1 Per Equity Share
The Swiggy IPO has a structured bidding system for different investor categories. Here’s a breakdown of the investment requirements for retail investors and high-net-worth individuals (HNIs):
Reservation Structure
The reservation structure for Swiggy’s IPO is divided as follows:
Qualified Institutional Buyers (QIBs): 75% of the issue is reserved for QIBs. This segment includes mutual funds, foreign institutional investors, and other large financial entities.
Non-Institutional Investors (NIIs): 10% of the issue is allocated for non-institutional investors, often high-net-worth individuals (HNIs) who invest in larger lot sizes.
Retail Investors: 15% of the IPO is reserved for retail investors, with a minimum bid of 38 shares per lot, allowing for smaller individual investments.
Employee Reservation: Swiggy has reserved up to 750,000 shares for employees, offered at a ₹25 discount per share within the IPO price band of ₹371-₹390
This structure balances institutional and retail participation, while the employee reservation encourages internal engagement in the company’s growth.
Key Dates & Timelines
Swiggy IPO Timeline (November 2024)
IPO Open Date: Wednesday, November 6, 2024
IPO Close Date: Friday, November 8, 2024
Basis of Allotment: Monday, November 11, 2024
Initiation of Refunds: Tuesday, November 12, 2024
Credit of Shares to Demat Accounts: Tuesday, November 12, 2024
Listing Date on BSE and NSE: Wednesday, November 13, 2024
Book Running Lead Managers
The Swiggy IPO is being managed by a group of Book Running Lead Managers (BRLMs), including:
Avendus Capital Pvt Ltd
BofA Securities India Limited
Citigroup Global Markets India Private Limited
ICICI Securities Limited
J.P. Morgan India Private Limited
Jefferies India Private Limited
Kotak Mahindra Capital Company Limited
The registrar for the IPO is Link Intime India Private Limited, which will handle the processing of applications and allotments
Promoters Information
Swiggy’s promoters are primarily its three co-founders: Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
Anand Kripalu – Independent Director and Chairman since December 2023. He holds a B.Tech from IIT Madras, a PG Diploma from IIM Calcutta, and an advanced management program from The Wharton School. Kripalu is the Global CEO of EPL Limited and has held senior roles at Diageo’s United Spirits, Cadbury Schweppes, Hindustan Lever, and DCM Data Products. He has received the “Lifetime Achievement Award” at the Indian Marketing Awards.
Sriharsha Majety – Managing Director and Group CEO of Swiggy. He holds a B.Tech from BITS Pilani and a post-graduate diploma from IIM Calcutta. With over 10 years at Swiggy, he was named ‘Entrepreneur of the Year 2019’ at The Economic Times Awards for Corporate Excellence.
Lakshmi Nandan Reddy Obul – Whole-time Director and Head of Innovation at Swiggy. He holds a Master’s in Physics from BITS Pilani and has over 10 years of experience with Swiggy. Before joining the company, he worked in business consulting at Intellecap.
The major institutional investor is Prosus, a subsidiary of the South African conglomerate Naspers, which holds approximately 33-40% of the company, and is looking to reduce this shareholding through the IPO.
About Swiggy Limited.
Swiggy is a leading Indian technology-driven platform offering a variety of convenience services, including Food Delivery, Instamart for grocery delivery, Dineout for restaurant reservations, and SteppinOut for event bookings. As a pioneer in the hyperlocal commerce sector, it has quickly established itself as a leader in food delivery and quick commerce in India. The platform also includes services like Genie for product pick-up/drop-off and other hyperlocal activities.
Swiggy’s business model is enhanced by its membership program, Swiggy One, and several in-app payment solutions, including Swiggy Money, Swiggy UPI, and Swiggy-HDFC Bank credit card. The company also provides valuable services to restaurant and merchant partners through analytics-driven tools, supply chain solutions, and last-mile delivery services. By mid-2024, Swiggy employs 930 tech professionals, leveraging its technological capabilities to drive growth and operational efficiency.
The Indian food services market, which Swiggy operates within, is poised for significant growth, fueled by urbanization and rising consumer incomes. The online food delivery segment, in particular, is expected to grow from ₹640 billion in 2023 to ₹1,400-1,700 billion by 2028. Swiggy is positioning itself to capitalize on this, with a large user base in top cities and expanding reach in smaller towns. The rising Average Order Value (AOV) and increasing consumer demand for convenience further boost Swiggy’s success prospects.
Despite its strong competitive advantages, such as an innovative platform, a loyal user base, and synergies from its wide partner network, Swiggy faces challenges. These include the need to maintain user acquisition, scale operations, and address the supply-side constraints in India’s largely unorganised restaurant market. Swiggy’s strategy to overcome these risks focuses on retaining and growing its user base, expanding its partner network, and enhancing its technology infrastructure.
The company is also focused on expanding its quick commerce operations, improving brand recall, and optimizing its delivery network. However, Swiggy must address key risks, such as dependence on restaurant and merchant partners, managing Dark Stores efficiently, and overcoming the cultural preference for home-cooked food, which can limit the expansion of food services in certain regions.
IPO Objectives
The company intends to allocate the net proceeds from this issuance towards the following strategic purposes:
Debt Repayment: A portion of the funds will be directed towards repaying or pre-paying some or all of Scootsy’s borrowings, thereby strengthening its overall financial position.
Expansion of Dark Stores: Funds will be utilized to support the expansion of Scootsy’s Dark Store network, enhancing its ability to provide faster services in the Quick Commerce segment. This includes making necessary lease or license payments for new store locations.
Technology and Infrastructure Investment: A significant portion of the proceeds will be invested in technology upgrades and cloud infrastructure, aimed at improving operational efficiency and supporting long-term business growth.
Marketing and Branding: Funds will be allocated to marketing and promotional initiatives designed to increase brand awareness and expand Scootsy’s visibility across different market segments.
General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, allowing for flexible allocation in response to evolving business needs.
Subscription Status
Subscription Status as of 08 Nov’24’
Retail Individual Investor
1.14 times
Non-Institutional Investor
0.41 times
Qualified Institutional Buyers
6.02 times
Employee
1.65 times
Overall
3.59 times
Recommendation
Swiggy is a consumer-first technology company that provides a unified platform for food delivery, grocery shopping (Instamart), and on-demand deliveries. The company’s revenue from operations for FY2024, FY2023, and FY2022 were ₹11,634.35 crores, ₹8,714.45 crores, and ₹6,119.78 crores, respectively. However, Swiggy posted negative EBITDA figures for the same periods: ₹-1,835.57 crores in FY2024, ₹-3,910.34 crores in FY2023, and ₹-3,233.76 crores in FY2022. Similarly, the Profit After Tax (PAT) was negative, with ₹-2,255.95 crores in FY2024, ₹-4,192.17 crores in FY2023, and ₹-3,631.23 crores in FY2022.
For its IPO, Swiggy is issuing shares with a pre-issue EPS of ₹-10.70 and a post-issue EPS of ₹10.07. The pre-issue P/E ratio is -36.44x, while the post-issue P/E ratio is -38.72x, significantly lower than the industry’s average of 634.50x. Additionally, the company’s Return on Equity (RoE) for FY24 is -30.16%.
The Grey Market Premium (GMP) shows no expected listing gains (0%). Given the company’s financial performance and IPO valuation metrics, we recommend avoiding Swiggy’s IPO for both short-term listing gains and long-term investments.
Indian Railway Finance Corporation Limited (IRFC) was incorporated on December 12, 1986, as a Public Limited Company dedicated to supporting the financial needs of the Indian Railways. After receiving a Certificate of Commencement of Business on December 23, 1986, IRFC was classified as a Public Financial Institution in 1993 and later registered with the Reserve Bank of India (RBI) in 1998 as a non-banking financial institution. Over time, it evolved into a non-deposit accepting asset finance NBFC in 2008 and was subsequently reclassified as an NBFC-ND-IFC (Infrastructure Finance Company) by the RBI in 2010.
IRFC, under the administrative control of the Ministry of Railways (MoR), operates as the dedicated financing arm of the Indian Railways, securing funds from both domestic and international markets to finance its growth. Since inception, it has been crucial in funding rolling stock acquisitions and railway infrastructure projects for Indian Railways and related entities like Rail Vikas Nigam Limited (RVNL) and IRCON.
The President of India, through the MoR, holds 86.36% of IRFC’s equity, with the remaining 13.64% owned by public shareholders, highlighting the company’s strategic importance. IRFC’s primary business is to borrow funds and finance assets that are leased to Indian Railways on long-term finance leases. It focuses on acquiring rolling stock assets—such as locomotives, coaches, wagons, containers, and cranes—and leasing infrastructure projects, thus ensuring steady financing for expansion and modernization. The leasing model typically spans 30 years, divided into a primary 15-year period where IRFC recovers the principal and borrowing costs, followed by a secondary 15-year period at a nominal lease rate.
In the 2020-21 fiscal year, IRFC financed a substantial 67.43% of Indian Railways’ capital outlay (Rs. 1,55,161 crore), contributing Rs. 1,04,369 crore to infrastructure needs, highlighting its pivotal role in India’s rail infrastructure. Notably, IRFC also supports initiatives like the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy, launched in December 2021 to develop additional terminals for rail cargo, further solidifying its role in india’s logistics and transport infrastructure. Over three decades, IRFC has been instrumental in enabling capacity enhancement for the Indian Railways, helping the organization keep pace with India’s growing transportation demands.
Industry Outlook
India’s rail network is advancing at an unprecedented pace, positioning it to become the third-largest rail network globally in the next five years, with a projected 10% share of the global rail market. Two pivotal government initiatives are set to drive private investments: private passenger trains operated by private entities across the network and a comprehensive railway station redevelopment program.
These initiatives are anticipated to attract over US$ 7.5 billion in private investment in the coming five years. Under the National Infrastructure Pipeline (NIP), Indian Railways has allocated more than ₹13.67 lakh crore for investment by 2025, accounting for 12% of the total planned infrastructure investment. The Draft National Rail Plan further envisions ₹38.22 lakh crore in capital expenditure for the rail sector by 2050. With the introduction of the semi-high-speed Vande Bharat trains, Indian Railways aims to operate 75 trains over 10-12 lakh kilometers by 2025-26.
The government’s focus on infrastructure is fueling railway development, with an ambitious plan to invest ₹50 lakh crore (US$ 715.41 billion) by 2030. This emphasis, coupled with favorable policy frameworks, is expected to encourage participation from both domestic and International private players, further boosting passenger and freight transport and supporting long-term sector growth.
Business Segments
Indian Railway Finance Corporation (IRFC) continues to focus on several key business segments that align with its role as the financial backbone of Indian Railways. These segments are as follows-
Rolling Stock Financing: This is IRFC’s largest business segment, primarily dedicated to funding the procurement of rolling stock assets like locomotives, passenger coaches, and wagons. By supporting Indian Railways in addressing the growing transportation demand, IRFC plays a crucial role in capacity enhancement across the network.
Railway Infrastructure Projects: IRFC finances essential infrastructure projects, including dedicated freight corridors, multi-modal logistics parks, and station redevelopment. These efforts align with the National Infrastructure Pipeline (NIP) to strengthen logistics and connectivity nationwide, supporting economic and industrial growth.
High-Speed Rail Corridors and Modernization: A critical area for IRFC is the funding of high-speed and semi-high-speed rail projects. The Vande Bharat trains and other initiatives aim to establish multiple high-speed corridors by FY26, significantly reducing travel time on key routes. IRFC ensures timely funding for these transformative projects.
Energy and Green Projects: With sustainability as a priority, IRFC supports green energy initiatives within Indian Railways, including solar and wind power installations along rail networks. These projects align with the Indian Railways’ goal of achieving a net-zero carbon footprint by 2030, advancing India’s commitment to environmental sustainability.
Joint Ventures and Special Purpose Vehicles (SPVs): IRFC collaborates through joint ventures and SPVs with state entities and private players to enhance freight and passenger capabilities. These projects leverage public-private partnership (PPP) models to create backward and forward linkages within Indian Railways, boosting efficiency and innovation.
Through these key segments, IRFC strategically supports the modernization and expansion of Indian Railways, contributing significantly to national infrastructure goals and promoting a sustainable rail network.
Key Subsidiaries and Their Information
As of FY25, Indian Railway Finance Corporation (IRFC) continues to operate without any major subsidiaries directly associated with its core business operations. However, IRFC collaborates closely with various entities, particularly in public-private partnership (PPP) arrangements and special-purpose vehicles (SPVs), aimed at enhancing rail infrastructure projects and rolling stock for Indian Railways. These partnerships align IRFC with infrastructure development initiatives, especially as the government prioritizes rail network expansion and modernization across India.
Q2 FY25 Highlights
Revenue from Operations has been ₹6,899 crore, marking a 2% YoY increase. Net Profit (PAT) of ₹1,612 crore, showing a 4% YoY growth from ₹1,544 crore in Q2 FY24.
Operating Profit of ₹1,650.6 crore, reflecting a 4.5% YoY increase from ₹1,579.53 crore. Total Expenses stood at₹5,287.55 crore, reflecting a slight 1% rise compared to ₹5,217.60 crore in Q2 FY24.
IRFC’s net worth increased to ₹51,464.12 crore in Q2 FY25, a significant rise from ₹46,883.22 crore in the same quarter of FY24, reflecting the company’s improved financial position. The debt-equity ratio stood at 7.83 in the September 2024 quarter, down from 8.67 in Q2 FY24, indicating a slight reduction in leverage and improved financial stability.
Indian Railway Finance Corporation (IRFC) has set November 12, 2024, as the record date to determine the shareholders who are eligible for the interim dividend. This means that shareholders registered as of this date will be entitled to receive the interim dividend declared by the company.
The IRFC Board has approved the financing of 20 Bogie Open Bottom Rapid (BOBR) rakes under the General-Purpose Wagon Investment Scheme (GPWIS) of the Ministry of Railways (MoR) to NTPC for up to ₹700 crore under a Finance Lease. IRFC has entered into Memoranda of Understanding (MoUs) with RITES and IIFCL to form strategic collaborations aimed at enhancing its operational and financing capabilities for future railway projects.
Dabur India Ltd. is a prominent Indian consumer goods company with a strong portfolio in the fast-moving consumer goods (FMCG) sector, particularly in health, wellness, and personal care products. Established in 1884, Dabur has become a trusted household name and is recognized for its Ayurvedic and natural product offerings, catering to a broad spectrum of customer needs across India and over 100 international markets. Ayurveda-based healthcare is Dabur’s core strength. The brand’s portfolio includes products such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, and Dabur Lal Tail, which are deeply rooted in Ayurvedic formulations. The company has acquired 51% stake in Badshah Masala.
Industry Outlook
The FMCG sector has witnessed a significant shift toward health, wellness, and immunity-boosting products, accelerated by the COVID-19 pandemic. Consumers are increasingly seeking products with natural ingredients and Ayurvedic formulations for both preventive and curative healthcare. The FMCG sector in India is benefiting from expanding consumer spending in both urban and rural areas. Rising disposable incomes, population growth, and increasing awareness of branded, quality products have fuelled FMCG demand. The demand for personal care items free of chemicals, synthetic ingredients, and additives is expected to grow, allowing Dabur to expand its market share in segments such as oral care, skin care, and hair care.
Business Segments
Health Care: It includes many product categories in its portfolio like Dabur Chyawanprash, Honey, Pudin Hara, Dabur Lal Tail, etc. which is huge brands in India and they all are used for consumers’ health benefits and healthy routines. This segment is a core business contributes about 31-35% of Dabur’s revenue.
Personal Care: It is used by many consumers as daily routine for their personal care, the products like Dabur Amla, Dabur Red Paste, and Vatika. And there are other international brands of Dabur which has presence outside India for personal care, oral care, skin or hair care, etc.
Food & Beverages: This segment includes a very popular packaged soft drink brand called Real, its yearly turnover is more than ₹1000 crore. And the Badshah Masala brand, which is a huge private company is acquired 51% stake for ₹590 crore.
Geography: The international business accounts for almost 25% revenue of the company. The geography distribution of International market is Middle East- 24%, Africa- 24%, Europe- 15%, America- 15% and Asia-22%.
Quarterly Highlights
Revenue of ₹3029 crore in Q2 FY25 down by 6.54% YoY from ₹3204 crore in Q2 FY24.
EBITDA of ₹553 crore in this quarter at a margin of 18% compared to 21% in Q2 FY24.
Profit of ₹418 crore in this quarter compared to a ₹507 crore in Q2 FY24.
Business Highlights
The heavy monsoon and flooding impacted the beverage category in this quarter, but edible oils and ghee have grown by 70% and the Badshah has continued its growth with the gains in market share.
UAE and Egypt saw a strong double digit growth, so Dabur is investing in capacity expansion to service increased demand.
Winter season is great for the company as its many products are related and beneficial to use in this particular season like Chyawanprash products, Honey, Oils, etc. which will increase their quarterly revenue.
Dabur has merged Sesa Care Private Ltd with annual turnover of ₹133 crore, which can help Dabur premiumize the Ayurvedic portfolio to attract higher margins.
Financial Summary and Key Ratios
SWOT Analysis
Strengths:
Established brand with a strong legacy
Diverse and comprehensive product portfolio
Extensive and well-established distribution network
Weaknesses:
Limited presence in developed markets
Fluctuating raw material costs
Exposure to regulatory risks
Opportunities:
Growth potential in Tier 2 and Tier 3 markets
Opportunities for product innovation and premium offerings
Tata Power Company Limited is India’s largest integrated private power company, with a significant global presence and a legacy spanning over a century. With an installed generation capacity of 6,075 MW in India, Tata Power actively engages across all segments of the power sector, including Generation, Transmission, Distribution, Power Trading, and Power Services. The company has been a pioneer in India’s power industry, establishing numerous thermal and hydro plants since its founding in 1919. Tata Power’s historic milestones include India’s first 500 MW multi-fuel generating unit at Trombay in 1984 and successive expansions into renewable energy sources such as wind and solar. As of March 31, 2022, Tata Power’s installed capacity reached 13,515 MW, with approximately 34% derived from clean energy sources. In the renewable energy sector, Tata Power is among India’s largest players. It developed the country’s first Ultra Mega Power Project of 4,000 MW at Mundra in Gujarat, based on super-critical technology. Tata Power also operates a diverse range of consumer-facing businesses, including solar rooftop installations, solar pumps, EV charging infrastructure, and home automation solutions. Through Tata Power Renewable Energy (TPREL), it acquired Welspun Renewables Energy, a leading solar portfolio in India, comprising approximately 1,140 MW in renewable projects. Recently, Tata Power’s strategic expansions have included distribution network acquisitions in Odisha, the installation of microgrids, and smart energy solutions with IoT-based home automation tools. In 2023, Tata Power, through Resurgent Power Ventures, acquired NRSS XXXVI Transmission Limited and South East U.P. Power Transmission Company Limited, further strengthening its transmission assets and reinforcing its position in India’s evolving power landscape.
Industry Outlook
The energy industry outlook for FY25 and beyond is robust, driven by accelerating demand for renewable energy, supportive government policies, and a growing interest from industries and consumers in sustainable solutions. India’s power sector is undergoing a significant transformation, targeting 500 GW of renewable capacity by 2030. This ambitious goal creates vast opportunities for companies like Tata Power to expand their solar, wind, and hybrid capacities. Solar and wind energy are set to lead this transition, supported by cost reductions, increased efficiencies, and policy incentives. The government’s Production-Linked Incentive (PLI) schemes and focus on domestic manufacturing are expected to enhance the renewable supply chain, thereby decreasing reliance on imports for critical components such as solar cells and modules. This aligns perfectly with Tata Power’s mphasis on solar manufacturing and internal capacity expansion, positioning the company to benefit from both domestic demand and export opportunities. Tata Power’s outlook remains strong, driven by aggressive renewable energy expansion and operational stability. The company is enhancing its solar manufacturing capabilities with a 4.3 GW facility, targeting an annual run rate of 2-2.5 GW in solar capacity while focusing on utility-scale and rooftop projects. In transmission and distribution, Tata Power is advancing critical projects with an EPC order book valued at ₹15,000 crore, including the Bhivpuri Pumped Storage Project, which is expected to boost long-term revenue by FY29. Additionally, its Delhi distribution network benefits from a regulatory asset liquidation plan, improving cash flows. Despite temporary disruptions at the Mundra coal plant, Tata Power has shown resilience and high operational availability.
Business Segments
Tata Power operates through several key business segments that contribute to its overall growth and diversification in FY25. Here are the primary business segments:
Renewable Energy:
Solar Power: Tata Power has made significant investments in solar energy, with a focus on expanding its solar generation capacity. The company aims for an annual run rate of 2-2.5 GW in solar capacity, focusing on utility-scale and rooftop solar projects.
Wind Power: Tata Power continues to enhance its wind energy portfolio, contributing to its overall renewable capacity. The company is committed to increasing its wind energy output as part of its sustainability initiatives.
Hybrid Projects: Tata Power is developing advanced hybrid projects that combine solar, wind, and energy storage solutions. These projects are designed to optimize energy production and enhance overall efficiency.
Conventional Power Generation:
This segment includes the generation of electricity through coal and natural gas. Tata Power’s Mundra coal plant is a significant contributor to this segment, although it faced temporary operational disruptions due to adverse weather conditions.
Transmission and Distribution:
Tata Power is actively involved in expanding and enhancing the transmission and distribution of electricity across India. This includes several critical projects, such as high-voltage transmission lines and pumped hydro projects. The company is focused on improving grid reliability and expanding its network to meet growing energy demand.
EPC (Engineering, Procurement, and Construction):
Tata Power provides EPC services for various projects, particularly in the renewable energy sector. The company’s current EPC order book is valued at ₹15,000 crore, reflecting its strategic focus on internal project execution over third-party work. This approach aims to maximize operational efficiency and resource allocation.
Electric Vehicle (EV) Infrastructure:
Tata Power is expanding its footprint in the electric mobility sector by investing in EV charging infrastructure. The company is well-positioned to capitalize on the growing demand for EVs in India, which will drive increased energy consumption and grid enhancements.
Key Subsidiaries and Their Information
Here are some of its prominent subsidiaries and their functions:
Tata Power Renewable Energy Limited (TPREL) is a cornerstone of Tata Power’s strategy to aggressively expand its renewable energy portfolio. Specializing in solar and wind power generation, TPREL plays a vital role in helping Tata Power meet its ambitious renewable energy targets. Recently, TPREL has been increasing its solar and wind capacity across India, furthering the company’s commitment to achieving a fully renewable future.
Another significant subsidiary is Tata Power Solar Systems Limited, which focuses on manufacturing solar panels and providing EPC (Engineering, Procurement, and Construction) services for large solar projects. Tata Power Solar is crucial to Tata Power’s solar expansion plans, both for utility-scale and rooftop projects. The subsidiary is enhancing its production capabilities with a new 4.3 GW manufacturing facility, which will support Tata Power’s growth ambitions in the solar sector.
On the distribution side, TP Ajmer Distribution Limited is responsible for electricity distribution in Ajmer, Rajasthan. As part of Tata Power’s push to strengthen its distribution network, this subsidiary has been focused on modernizing infrastructure and improving service quality. Similarly, Tata Power Delhi Distribution Limited (TPDDL) is a key distribution subsidiary serving parts of Delhi. Known for its operational efficiency, TPDDL benefits from a regulatory asset liquidation plan that is expected to enhance cash flows and strengthen financial performance.
Maithon Power Limited contributes to Tata Power’s thermal power generation, operating a coal-based power plant that supplies electricity to the grid, thus ensuring a balanced energy portfolio. Although Tata Power has a strong renewable focus, Maithon Power provides stability and a reliable power supply within the company’s generation mix.
Tata Power has also made significant inroads in Odisha with TP Central Odisha Distribution Limited, TP Western Odisha Distribution Limited, TP Southern Odisha Distribution Limited, and TP Northern Odisha Distribution Limited. These subsidiaries focus on improving power distribution across various regions of Odisha, where Tata Power aims to enhance reliability and service quality in historically underserved areas.
Walwhan Renewable Energy Limited is another critical player in Tata Power’s renewable portfolio, managing a range of solar and wind assets across India. This subsidiary contributes substantially to Tata Power’s overall green energy capacity, supporting its shift toward renewable sources.
Trust Energy Resources Pte. Limited, based in Singapore, plays a supportive role by managing fuel logistics and securing fuel for Tata Power’s thermal plants, thus ensuring steady operations at its coal-based facilities.
Tata Power EV Charging Solutions Limited drives the company’s push into the electric vehicle infrastructure sector. As the demand for EVs in India grows, this subsidiary has been actively expanding Tata Power’s EV charging network nationwide, establishing the company as a leading player in India’s nascent but rapidly growing EV ecosystem.
Together, these subsidiaries underscore Tata Power’s multi-faceted approach, blending renewable expansion, efficient distribution, EV infrastructure development, and reliable thermal generation to create a sustainable and resilient energy business.
Q2 FY25 Highlights
Revenue: Q2 FY25 revenue saw a marginal 1% YoY decline (₹15,247 crore vs. ₹15,442 crore in Q2 FY24), indicating stable demand but possibly some short-term challenges. However, H1 FY25 revenue grew by 5% YoY (₹32,057 crore vs. ₹30,446 crore in H1 FY24), reflecting steady growth over the half-year.
EBITDA Growth: Tata Power achieved impressive 23% YoY EBITDA growth in Q2 FY25 (₹3,808 crore vs. ₹3,087 crore in Q2 FY24) and 17% YoY growth in H1 FY25 (₹7,158 crore vs. ₹6,092 crore in H1 FY24). This improvement suggests enhanced operational efficiency and cost management, as well as possibly favorable contributions from higher-margin business segments.
Profit After Tax (PAT): PAT increased substantially by 51% YoY in Q2 FY25 (₹1,533 crore vs. ₹1,017 crore in Q2 FY24) and by 41% YoY in H1 FY25 (₹2,721 crore vs. ₹1,924 crore in H1 FY24). This robust growth in profitability, despite flat revenue, indicates strong financial health, likely driven by effective cost control, better pricing strategies, and growth in high-margin segments.
Robust Order Book: Solar EPC business has a well-diversified order book of ₹15,900 crore.
Installed Capacity Growth: Total installed generation capacity surpassed 15 GW, with a clean and green portfolio of ~12.9 GW (6.4 GW operational, 6.5 GW under construction).
Expanding Transmission Portfolio: Transmission assets now cover 7,049 CKm, with 4,633 CKm commissioned and 2,416 CKm under construction.
Consistent Profit Growth: Achieved its 20th consecutive quarter of PAT growth.
Significant Capex Investment: Incurred ₹5,200 crore in Q2FY25 and ₹9,100 crore in H1FY25 towards growth, targeting a full-year capex of ~₹20,000 crore.
S&P Global upgraded Tata Power’s rating to BBB-/Positive from BB+/Stable.
Added 62 bus chargers and over 11,500 home chargers this quarter.
Signed an MoU with Tata Motors to establish 200 fast-charging stations for electric commercial vehicles in major metropolitan cities across India.
Tata Power’s market cap has exceeded ₹1.5 trillion.
Financial Summary
INR in Cr.
Q2FY25
Q1FY25
Q2FY24
Q-o-Q Growth
Y-o-Y Growth
Total Revenue
15,698
17,294
15,738
-9.23%
-0.26%
Selling General Admin Expenses (Total)
1,041
1,014
995
2.67%
4.61%
Depreciation/ Amortization
987
973
926
1.42%
6.57%
Total Operating Expense
13,530
15,164
13,869
-10.77%
-2.44%
Operating Income
2,168
2,130
1,869
1.78%
15.96%
Net Income Before Taxes
1,773
1,490
1,231
18.96%
44.06%
Net Income
927
971
876
-4.57%
5.83%
Diluted Normalized EPS
3.17
3.03
2.74
4.63%
15.70%
SWOT Analysis
Strengths:
Robust Renewable Portfolio – Strong presence in the renewable energy sector.
High Profitability and Financial Growth – Consistent financial performance and profitability.
Diverse Order Book – A wide range of projects contributing to stability.
Strong Brand and Legacy – Established reputation and trust in the industry.
Weaknesses:
High Debt Levels – Significant debt may pose financial risks.
Dependence on Coal Assets – Reliance on coal could impact sustainability efforts.
Complex Subsidiary Structure – Multiple subsidiaries may complicate management and oversight.
Opportunities:
Expansion in Renewable Energy – Potential for growth in the renewable sector.
Growing EV Infrastructure – Increasing demand for electric vehicle infrastructure presents new avenues for growth.
Government Support for Green Initiatives – Favorable policies and support for green initiatives enhance growth prospects.
Global Expansion – Opportunities to enter new markets internationally.
Threats:
Regulatory and Environmental Compliance – Navigating complex regulations can be challenging.
Competitive Market – Intense competition in the energy sector may impact market share.
Economic and Geopolitical Risks – External factors may affect operational stability.
Interest Rate Volatility – Fluctuating interest rates could impact financing and investment costs.
Narayana Hrudayalaya Ltd. (also known as Narayana Health) is one of India’s leading healthcare providers, headquartered in Bengaluru, Karnataka. Founded in 2000 by renowned cardiac surgeon Dr. Devi Prasad Shetty, the company has grown into a comprehensive healthcare network with a strong focus on affordable and accessible care. Narayana Health specializes in high-quality tertiary and quaternary care across a range of specialties, particularly in cardiology and oncology. Narayana Health operates over 20 hospitals and 7 heart center across India, with a strong presence in both urban and semi-urban areas. The company also has an international hospital in the Cayman Islands.
Industry Outlook
The Indian healthcare industry was valued at approximately $280 billion in 2022 and is projected to reach $532 billion by 2028, growing at a CAGR of around 10-12%. The government’s PLI scheme for the pharmaceutical and medical device industries aims to boost local production and reduce dependence on imports, potentially lowering healthcare costs in the long term. India faces a shortage of hospital beds, with about 1.3 beds per 1,000 people, below the WHO recommendation of 5. While there is progress, addressing this gap, especially in rural areas, remains a priority. About 70% of India’s population lives in rural areas but has limited access to healthcare. Expanding healthcare facilities in these areas and increasing the availability of affordable care are crucial for balanced sector growth.
Business Mix
Owned Hospitals: Its where company owns the hospitals and operates the patients and handle their works. It contributed ₹817 crore in Q2 FY25 revenue of the company.
Operated Hospitals: It has a portfolio of hospitals where it does not own them but operates in it. It has contributed about ₹315 crore in this quarter.
Heart Centers: The Company has its own Heart center in India, where it treats the patients with their extraordinary skills. It has contributed ₹17.5 crore for Q2 FY25.
Other Ancillary Business: It provides equipments to other hospitals for surgery or other operations to perform. It earned a revenue of ₹17 crore this quarter.
Specialty Profile: It includes the treatment and facilities of Cardiac Science, Oncology, Neuro Sciences, Medicines and GI sciences, renal sciences, Orthopedics and others, in their hospitals.
Quarterly Highlights
Revenue of ₹1167.7 crore in Q2 FY25 up by 10.9% YoY from ₹1052.7 crore in Q2 FY24.
EBITDA of ₹308 crore in this quarter at a margin of 22% compared to 24% in Q2 FY24.
Profit of ₹199 crore in this quarter compared to a ₹227 crore in Q2 FY24.
Domestic revenue is ₹1081.6 crore up by 13.5% YoY & International revenue is ₹76.2 crore down by 19.2% YoY.
Business Highlights
The patient footfalls including day care business is 710,000 in Q2 and the Average revenue per Patient is ₹135,000.
Narayana Health has total 40 facilities & 5789 operational beds, from which 2 facilities and 128 beds for Heart centers.
The capex of ₹534 crore is expected for FY25. The capex is used for Facility Improvement, medical equipment purchase and new investment in Land, hospital constructions and clinics, etc.
Financial Summary and Key Ratios
SWOT Analysis:
Strengths
Affordable Healthcare Model – Known for providing cost-effective healthcare solutions.
Extensive Network – A broad reach that enhances accessibility for patients.
Specialized Expertise – Strong focus on specialized medical services and treatments.
Reputable Brand – Trusted brand with a strong reputation in the healthcare industry.
Weaknesses
Geographical Limitations – Presence concentrated in specific regions, limiting reach.
Low Profit Margins – Cost-focused model results in slimmer profit margins.
High Operational Expenses – Substantial running costs impact overall profitability.
Opportunities
Expansion into Tier 2 & 3 Cities – Opportunity to grow in emerging urban areas with increasing healthcare needs.
Rising Demand for Healthcare – Growing population and healthcare awareness drive demand.
International Growth – Potential to expand services globally and tap new markets.
Focus on Wellness Services – Increasing interest in wellness services opens new revenue channels.
Threats
High Competition – Competing with numerous healthcare providers for market share.
Vardhman Textiles Ltd. is one of India’s largest textile manufacturers, recognized for its integrated operations in yarn, fabric, and garment production. Established in 1965 and headquartered in Ludhiana, Punjab, Vardhman has grown into a vertically integrated textile conglomerate with a diverse product range. The company caters to both domestic and international markets, supplying a variety of textile products to some of the world’s leading brands. The clientele lists are GAP, H&M, Walmart, Calvin Klein, Tommy Hilfiger, etc. It is presented in 57 countries.
Industry Outlook
The global textile market was valued at approximately $1 trillion in 2022 and is projected to grow at a CAGR of around 4.4%, reaching $1.35 trillion by 2027. Valued at around $150 billion in 2022, the Indian textile and apparel market is expected to reach $250 billion by 2025 at a CAGR of 10%. Increasing disposable incomes, e-commerce expansion, and demand from emerging markets drive this growth. Rising demand for apparel, home textiles, and technical textiles are also key contributors. Many global brands are shifting sourcing away from China to South Asian countries. India, Bangladesh, and Vietnam are key beneficiaries, with India’s textile exports to the US and EU increasing by over 15% annually. Challenges such as raw material price volatility and energy costs remain, necessitating efficient resource management and technology adoption for sustained growth.
Segment Information
Yarn: Yarn segment includes ranges of specialised greige, dyed and recycled sustainable yarns in various materials like cotton, polyester, acrylic, viscose, and specialized fibres, along with blends. This diverse portfolio allows us to cater to a wide array of customer requirements. In this quarter Yarn segment earned revenue of ₹2454 crore. It sold about 68,461 metric tons of Yarn this quarter.
Fabrics: We specialize in manufacturing fabrics suitable for tops, bottoms and outerwear across kids, men and women categories. Our capabilities extend to piece-dyed, yarn-dyed and printed fabrics, catering to both casual and formal wear. Our facilities feature a mix of advanced European and Japanese machinery and technologies, enabling us to handle a vast range of products from 60 GSM to 400 GSM.
Garments: Vardhman Apparels outlook has always been to satisfy our customers with high quality shirts with our state of the art infrastructure and equipments accompanied by our innovative product that we offer our customers as a futuristic approach. To produce world class garments both for the international and domestic brands, offering wide range of products in all blends. It had earned revenue of ₹112 crore in FY24.
Quarterly Highlights
Revenue of ₹2502 crore in Q2 FY25 up by 4.38% YoY from ₹2397 crore in Q2 FY24.
EBITDA of ₹315 crore in this quarter at a moderate margin of 13% compared to 9% in Q2 FY24.
Profit of ₹197 crore in this quarter compared to ₹136 crore in Q2 FY24.
Business Highlights
Bangladesh is the second largest exporter player for India and even though there were issues with Bangladesh, the company’s sales or exports were not affected much and financials were remained at same levels.
Cotton prices are at lower side of $0.6, and the company has exhausted its inventory so it has started buying cotton from market in Q1 and start of Q2 FY25 at lower prices.
The EBITDA and profitability margins are in downward trend for many years and it is a negative signs as the company’s clients are reliable and strong, the sales are growing but the profits are remaining same.
Financial Summary and Ket Ratios
SWOT Analysis of Vardhaman Textiles
Strengths:
Strong market position in the textile industry.
Wide range of products.
Focus on sustainability and eco-friendly practices.
Sterlite Technologies Limited (STL) is a global leader in end-to-end data network solutions. The company designs and deploys high-capacity fiber cables and wireless networks, collaborating with telecom companies, cloud providers, citizen networks, and enterprises to build and manage cloud-native networks. Founded in 2000 after a demerger from Sterlite Industries, STL has expanded its manufacturing presence across Aurangabad, Pune, Silvassa, and Haridwar. Since its inception, STL has advanced through innovation and strategic acquisitions. In the early 2000s, it significantly increased fiber optic and copper cable capacities and launched several broadband and network access products. STL was recognized as one of India’s fastest-growing technology companies. The company’s global reach expanded through acquisitions, including stakes in Sterlite Infrastructure, Jiangsu Sterlite Tongguang Fiber (China), and Sterlite Conduspar (Brazil). In 2015, it acquired the power transmission business and later demerged it as Sterlite Power Transmission Ltd. in 2016. From 2018 to 2023, STL acquired Metallurgica Bresciana (Italy), IDS Group (UK), and Optotec S.p.A. (Italy), bolstering its role in data networks and optical products. In 2022, STL streamlined its portfolio by divesting assets like IDS Group and telecom software business. The launch of Fiber-to-the-Room (FTTR) services in 2023 reinforces its commitment to delivering high-speed data infrastructure solutions globally.
Industry Outlook
The fiber optics and data network solutions sector is set for robust growth in FY25, driven by the rising global demand for high-speed connectivity, propelled by 5G, AI, IoT, and expanding data centers. Sterlite Technologies Limited (STL) has a promising outlook with multiple key growth drivers across its core markets and product lines. STL anticipates sustained demand for fiber as global clients continue to expand network infrastructure. Analysts project a solid 7% demand growth (excluding China) in the coming years, with North America and India expected to see accelerated growth. With the rapid rise of AI and data centers, STL is well-positioned to benefit from increased fiber requirements. Modern, GPU-dense data centers need up to 36 times more fiber than traditional CPU-based centers. STL’s focus on compact, high-density optical fiber solutions provides 70% more fiber per unit than standard installations, targeting this specific need. The company aims to capture a share of the $5.7 billion investment anticipated in the data center market. At IMC 2024, STL launched its AI-DC portfolio, supporting the “Make in India” initiative and addressing the increasing demand for advanced data center infrastructure. STL is targeting 25% of its revenue from data center and enterprise products in the medium term, aligning with its strategy to leverage the AI and data revolution. Additionally, a growing emphasis on sustainable, energy-efficient infrastructure, in line with ESG standards, is shaping the sector. Increased investments in digital infrastructure and advanced network solutions are expected to propel growth, benefiting companies like STL.
Business Segments
Sterlite Technologies Limited (STL) operates across several core business segments, focusing on comprehensive data network and digital infrastructure solutions.
Optical Fiber and Cable Solutions: STL is a leading provider of high-capacity optical fiber cables and solutions, essential for telecom and network infrastructure. This segment includes high-density, compact fiber cables, which cater to growing data demands, particularly in 5G networks and data centers.
Network Services: STL offers network design, deployment, and maintenance services for telecom operators, cloud companies, and large enterprises. This segment focuses on building and managing end-to-end network infrastructure, including wireless networks, fiber-to-the-home (FTTH), and other network expansions.
Data Center Solutions: This segment includes STL’s newly launched AI-DC (Artificial Intelligence-Data Center) portfolio, which supports the increasing data needs of modern, GPU-dense data centers. STL provides high-density fiber solutions specifically designed for data centers, aiming to capture a significant share of the growing data center market.
Enterprise Network Solutions: STL serves various enterprises by providing tailored digital network solutions, including cloud-native, software-defined networks, which help optimize network performance and scalability for corporate clients.
Digital and System Integration: STL’s digital and integration services support clients in deploying and managing advanced network solutions, integrating software-defined networking (SDN), network function virtualization (NFV), and cloud infrastructure.
Sustainability and ESG-Focused Solutions: STL incorporates energy-efficient, sustainable infrastructure solutions across its offerings, aligning with Environmental, Social, and Governance (ESG) standards.
Key Subsidiaries and Their Information
Sterlite Technologies Limited (STL) has a global footprint with several key subsidiaries that support its operations in network solutions, digital transformation, and manufacturing across various regions. Here are some of its prominent subsidiaries and their functions:
Sterlite Tech Cables Solutions Limited – A core subsidiary focused on manufacturing advanced fiber-optic and cable solutions, catering to STL’s global network deployment needs.
STL Digital Limited – Engages in digital solutions and services, playing a critical role in STL’s diversification into digital transformation and enterprise services.
Sterlite (Shanghai) Trading Company Limited – Supports STL’s operations and sales within China, a significant market for optical fiber and telecom solutions.
Sterlite Tech Holding Inc. (USA) – This U.S.-based subsidiary enables STL to expand in North American markets, providing optical and digital solutions to local clients.
Metallurgica Bresciana S.p.A. – An Italian subsidiary specializing in high-end optical and metal cables, acquired to bolster STL’s manufacturing capabilities and expand in Europe.
STL Optical Interconnect S.p.A. – Based in Italy, this subsidiary focuses on optical interconnect products essential for data centers and high-speed networks, enhancing STL’s position in advanced optical solutions.
Sterlite Technologies DMCC (Dubai) – Supports the Middle Eastern and African markets, aligning with STL’s global expansion strategy for network and digital solutions.
Clearcomm Group Ltd (UK) – Acquired to strengthen STL’s services portfolio in the UK, focusing on network deployment and management services for European clients.
Jiangsu Sterlite Fiber Technology Co. Ltd. (China) – A joint venture that manufactures optical fiber solutions, providing STL with a competitive edge in the Asian market.
These subsidiaries are pivotal in driving STL’s growth strategy, enhancing its capabilities in manufacturing, digital services, and global market outreach.
Q2 FY25 Highlights
In Q2 FY25, Sterlite Technologies Limited (STL) reported a revenue of INR 1,413 crore. While optical fiber cable (OFC) volumes decreased on a year-on-year basis, there was an improvement in both volumes and revenues when compared quarter-on-quarter. This reflects a positive trend despite the annual decline in volumes.
EBITDA margin of 10.7%. This decline in margins was attributed to lower optical fiber cable (OFC) volumes on a year-on-year basis. However, there was a positive shift, with improved margins observed when comparing quarter-on-quarter performance. This indicates a recovery in operational efficiency despite the annual volume challenges.
Company reported PAT (Profit After Tax) loss of INR 13 crore, showing improvement as losses reduced on a quarter-over-quarter basis. This indicates the company is making progress, likely through cost optimizations or revenue improvements, signaling a move towards profitability.
As of H1 FY25, the company’s Net Debt stands at INR 2,169 crore, with a Debt-to-Equity ratio of 0.74. This ratio reflects the company’s current leverage and financial stability at the mid-year mark.
Sterlite Technologies Limited (STL) has secured large orders from a leading American customer and a major UK telecom operator for optical connectivity and fiber solutions. Additionally, the company is working with an Indian private telecom player to enable Fixed Wireless Access (FWA) deployment, alongside securing long-term contracts for fiber cable supply from another large Indian telecom provider. STL has also achieved significant deals in Italy for optical fiber cables and specialty cable products.
Financial Summary
INR in Cr.
Q2FY25
Q1FY25
Q2FY24
Q-o-Q(%)
Y-o-Y(%)
Revenue*
1,413
1,218
1,494
16.01%
-5.42%
EBITDA*
151
93
216
62.37%
-30.09%
EBITDA %
0
0
0
38.96%
-25.69%
Depreciation
83
82
85
1.22%
-2.35%
EBIT*
68
11
131
518.18%
-48.09%
Finance Costs
84
71
95
18.31%
-11.58%
Exceptional Items
–
–
–
PBT*(Before share of Associates and JV)
-16
-60
36
73.33%
-144.44%
Tax
-3
-13
12
76.92%
-125.00%
Net Profit* (After minority Interest & share of JV)
-13
-47
28
72.34%
-146.43%
Profit (loss) from discontinued operations
-1
-1
6
0.00%
-116.67%
Net Profit
-14
-48
34
70.83%
-141.18%
Diluted Normalized EPS
-0.26
-0.97
0.71
73.18%
-136.71%
SWOT Analysis of Sterlite Technologies
Strengths:
Global presence and integrated business model
Strong focus on innovation and R&D
Robust order book
Weaknesses:
Heavy reliance on telecom sector
Profitability pressures and high debt
Limited vertical integration in some areas
Opportunities:
Growth from 5G rollout and government digital initiatives
Rising demand for data centers and new tech diversification
Welspun Enterprises Ltd, originally known as MSK Projects (India) Ltd, is an Indian company specializing in civil construction contracts and infrastructure projects. Founded on December 20, 1994, the company initially operated as a partnership under the name M.S. Khurana since 1976, before being rebranded as MSK Projects (India) Ltd in 1995. The company later went public in 2004 with an IPO, listing its shares on the BSE, NSE, and VSE. In 2010, it was renamed Welspun Projects Ltd and eventually became Welspun Enterprises Ltd. Welspun Enterprises engages in a broad range of civil construction projects, such as residential townships, multi-story buildings, industrial plants, and infrastructure development. The company has executed large-scale industrial projects for sectors like petrochemicals, fertilizers, pharmaceuticals, and mining, primarily through Build-Operate-Transfer (BOT) models. It has also expanded into water distribution and surface transport projects, with a significant water supply project underway in Dewas, Madhya Pradesh. Welspun Enterprises has formed strategic subsidiaries, including MSK Projects (Himatnagar Bypass) Pvt Ltd, Super Infrastructure & Toll Bridge Pvt Ltd, and MSK Projects (Kim Mandvi Corridor) Pvt Ltd, for infrastructure and toll projects. The company has secured notable contracts with Bharat Oman Refineries Ltd and Indian Oil Corporation for extensive civil and structural work across various pipeline and refinery projects. In 2010, the company also diversified into the energy sector, marking a significant expansion into renewable energy by securing large-scale solar projects and establishing manufacturing facilities, including a 350,000 MTPA LSAW plant in Anjar, India, and an ERW plant in the United States. Welspun Enterprises is widely recognized for its work on the Delhi-Meerut Expressway project, underscoring its leadership in major infrastructure initiatives across India.
Industry Outlook
The Indian infrastructure sector is on a solid growth trajectory for FY25 and beyond, fueled by extensive government initiatives, increased private sector investments, and the demands of urbanization. Programs like PM Gati Shakti are catalyzing sector growth with ambitious projects, including the construction of 2 lakh km of national highways by 2025, along with expressways and urban infrastructure enhancements. The sector is anticipated to grow at a CAGR of 8-10% over the next five years, with highways projected to expand at over 10% annually. This growth extends to airports, ports, and railways, with high-impact projects such as the Delhi-Mumbai expressway and 12 new greenfield airports underway, boosting logistics efficiency and economic progress. In line with this growth, Welspun Enterprises Ltd. (WEL) is advancing its “Growth & Green” strategy through the DGT Project, which focuses on the collection, treatment, and repurposing of wastewater from Dharavi for reuse—an initiative underscoring sustainability and water reuse. WEL’s board recently approved an additional 9.99% stake in Welspun Michigan (WMEL), bringing ownership to over 60%. This acquisition supports a collaboration with Smart-Ops Water UK to introduce SABRE technology—a cutting-edge wastewater treatment process aimed at addressing untreated sewage in India. With a consolidated order book of ₹15,200 crores and a rich pipeline of projects, Welspun Enterprises is positioned to drive execution and create long-term value across its verticals, capitalizing on the expanding infrastructure opportunities in India.
Business Segments
Welspun Enterprises Ltd operates primarily through two key business segments, contributing significantly to its overall portfolio.
Infrastructure: This segment focuses on the engineering, procurement, and construction (EPC) of infrastructure projects, particularly in roads, water supply, and urban development. The company engages in both Build-Operate-Transfer (BOT) and traditional EPC contracts. Some notable projects include the construction of major highways, rural water supply projects under the Jal Jeevan Mission, and various urban infrastructure initiatives. The infrastructure segment has seen robust growth, with sales reaching on TTM basis approx. to ₹32.27 billion in Q2FY25. This segmentation has further diversifications such as water treatment, tunnelling, road constructions, etc.
Oil and Gas: In addition to infrastructure, Welspun Enterprises is involved in oil and gas exploration activities. This includes participation in the upstream oil and gas sector through a joint venture with Adani, focusing on a gas-based economy. The company also undertakes water transmission and distribution, alongside water and wastewater treatment services.
The strategic focus of Welspun Enterprises on sustainable infrastructure development positions it well within India’s growing market, especially with government initiatives aimed at enhancing infrastructure across the nation. The company is actively participating in projects that address critical areas such as water management and urban development, which are pivotal for future growth.
Key Subsidiaries and Their Information
Welspun Enterprises has several key subsidiaries that enhance its infrastructure portfolio. It also operates through various Associates and Joint Ventures.
Welspun Projects (Himmatnagar Bypass) Private Limited focuses on road infrastructure development, specifically the construction and management of bypasses to improve traffic flow.
Welspun Projects (Kim Mandvi Corridor) Private Limited is dedicated to developing vital highway corridors that enhance regional logistics.
Dewas Water projects Works Private Limited specializes in sustainable water supply infrastructure for urban areas, while
Welspun Buildtech Private Limited is involved in the construction of residential and commercial buildings.
Additionally, ARSS Bus Terminal Private Limited focuses on transportation infrastructure by developing bus terminals to improve public transport services.
Grenoble Infrastructure Private Limited supports a wide range of urban and rural development projects.
DME Infra Private Limited works on diverse infrastructure projects across various sectors.
Welspun Sattanathapuram Nagapattinam Road Private Limited handles critical roadway construction and maintenance.
Welspun Aunta-Simaria Project Private Limited is engaged in project management, ensuring timely completion and quality oversight of construction projects.
Welsteel Enterprises Private Limited supplies steel products and services for construction needs.
Welspun – Kaveri Infraprojects JV collaborates on large-scale infrastructure initiatives.
Welspun EDAC JV Private Limited is involved in significant joint venture infrastructure projects, combining expertise from partners.
Welspun Michigan Engineers Limited provides engineering services and contributes to various construction projects, solidifying Welspun Enterprises’ capability to address multiple segments of the infrastructure market.
Q2 FY25 Highlights
Revenue from operations surged by 22.1%, reaching ₹788.5 crore, compared to ₹645.7 crore in the same quarter last year. Total income increased to ₹837.92 crore from ₹692.65 crore year-over-year, while expenses rose to ₹736.33 crore from ₹595.61 crore. Highest-ever H1 Income of ₹ 1,798 Crores achieved in period ending September 2024.
The company’s EBITDA grew by 21.7%, totaling ₹100.5 crore, up from ₹82.6 crore in the previous year. However, the EBITDA margin slightly decreased to 12.7%, down from 12.8% year-on-year.
Consolidated net profit for the September quarter of FY25 fell by approximately 11% to ₹61.56 crore, primarily due to higher expenses. Abhishek Chaudhary has been appointed as the new Chief Executive Officer (CEO), effective November 4, 2024.
The consolidated order book of the company stood at ₹15,200 crore at the end of September 2024.
The board approved the acquisition of an additional 9.99% stake in Welspun Michigan from Patel Engineering for around ₹100 crore.
Welspun Enterprises secured a significant design and build contract worth ₹1,989 crore from the Brihanmumbai Municipal Corporation (BMC). This contract involves designing and constructing a tertiary treated water conveyance tunnel from the Dharavi Wastewater Treatment Facility to the Ghatkopar WWTF.
Financial Summary
SWOT Analysis
Strengths:
Diverse portfolio of projects.
Strong financial backing.
Proven expertise in infrastructure development.
Robust order book with ongoing contracts.
Weaknesses:
High capital expenditure leading to increased debt.
Dependence on government contracts for revenue.
Limited international presence.
Risk of project delays.
Opportunities:
Growing infrastructure sector in India.
Potential for public-private partnerships (PPP).
Expansion into renewable energy projects.
Adoption of technological advancements in project execution.
Threats:
Intense competition in the infrastructure space.
Challenges related to regulatory and environmental compliance.
Vedant Fashions Ltd. is one of India’s leading ethnic wear companies, best known for its flagship brand Manyavar, catering to wedding and celebration wear for men, women, and children. Founded in 2002 and headquartered in Kolkata, Vedant Fashions has grown into a prominent player in India’s organized ethnic wear market, capitalizing on the strong cultural affinity for traditional clothing. The company has a widespread retail network with over 500 exclusive brand outlets across 200+ cities in India. Additionally, Vedant Fashions has expanded internationally, with stores in the USA, UAE, and Canada.
Industry Outlook
The Indian ethnic fashion industry is poised for steady growth, driven by increasing disposable incomes, cultural trends, and a growing preference for branded and organized ethnic wear. The Indian ethnic wear market is expected to grow at a CAGR of around 10% over the next five years, driven by demand for wedding and festival attire. By 2025, the market is projected to reach approximately $20 billion, fuelled by a mix of traditional festivals, weddings, and family celebrations. Additionally, there is rising interest in region-specific attire, which showcases local craftsmanship and heritage.
Segment Information
Men’s Ethnic Wear: In this segment brands like Manyavar and Twamev are involved to cater a men’s wear segment.
Women’s Ethnic Wear: For women wear, in this portfolio Mohey brand makes exclusive for wedding and festive wear for women.
Affordable Wear: To cater for young generations and customers with low price capacity this segment includes Manthan in its portfolio.
Regional & Multi-Cultural Wear: To provide for cultural preference this segment includes Mebaz in its portfolio collections.
Brands
Manyavar: Manyavar is their flagship brand contributing major in the revenue of Vedant Fashions. It is into the Men’s and Boy’s shopping categories, at mid-premium spectrum. It is sold through Exclusive Brand Outlet (EBO), Multi Brand Outlet (MBO) and E-commerce.
Mohey: Mohey is a brand focused on women’s wedding & festive attire, including Lehengas, sarees, gowns and suits.
Twamev: It is a premium brand that caters to high-end customers with luxury wedding and celebrations wear.
Manthan:It is an affordable men’s ethnic wear, designed to capture the growing demand among young age populations and price. sensitivecustomers.
Mebaz: This brand specifically caters to South Indian and multicultural preferences. It is for men, women, and children’s wedding and festive wear.
Quarterly Highlights
Revenue of Rs 267.9 crore in this quarter, up by 22.7% YoY.
EBITDA of Rs 121.7 crore up by 27.5% YoY from Rs 95.4 crore in Q2 FY24. At EBITDA margin of 45.4% in Q2.
Profit is Rs 66.9 crore up by 37.3% YoY from Rs 48.7 crore in Q2 FY24. At PAT margin of 25% in Q2.
Business Highlights
The company has successfully launched a new festive and celebration wear brand Diwas.
A new EBO of 4.7k area is rolling out in Q2 FY25.
Jahnvi Kapoor is onboarded as a new brand ambassador for its women’s wear brand ‘Mohey’.
Vedant Fashions has no borrowings on its balance sheet; it’s a lease liability, which is money taken in advance for a contract.
