In the interim, this could increase net debt to Rs 19.6 bn with net debt/Ebitda of 1.4x/1.3x in FY21/22E; RoCE may decline by ~500bp to ~13%. However, FRL should be able to reduce leverage with adjustment of Rs 6.2 bn advance
The bank’s CASA ratio declined 120bp y-o-y but was up 20bp q-o-q to 39.5%, implying 21.5% y-o-y (+5.1% q-o-q) growth in CASA deposits. Term deposits increased at ~27.8% y-o-y (+4.1% q-o-q), in line with management guidance.
The acquisition has been made for more than 25% of the voting rights; therefore, an open offer for purchase of up to 43.4 m equity shares, representing 26% share capital of Snowman at Rs 44/share has also been made.
Century– rebranding & revamping of assets to improve margins: The company has already started to turn around its recently acquired Century’s (CTIL) assets. While utilisation declined to 48% in Q2FY19 due to weak operation
FY15-19 was utilised for capex (Rs 118.7 bn; mainly for acquisitions of IPRs) and business takeovers (Rs 72.5 bn), leading to high intangibles (Rs 85.3 bn, 20.6% of NW) and goodwill (Rs 90.6 bn, 21.9% of NW).
With the demand environment showing signs of stability and inventory under control, the BS6 transition is likely to be less problematic (unlike BS4). We believe that the BS6 transition would pose a bigger challenge for 2Ws th
According to our oil & gas sector analyst, the glut in global gas supply is likely to continue, given increasing gas supply from the US and Qatar and plateauing consumption in China along with possible lower imports from Japa