WHAT HAPPENED LAST WEEKSectors at a glance…

23rd-28th April 2018

CONTENTS

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AUTO & AVIATION, by Nandan P. Hegde

INFRASTRUCTURE, RE & CEMENT, by Ankit Babel & Jeet Bajaj

POWER & ENERGY, by Priya K. N. L.

IT & TELECOM, by Rishi Gaurav Ravula & Jagarati Dadhich

METALS & MINING, by Hemant Kothari

BANKING, by Tanvi Gangan

CONSUMER DURABLES, by Koshica Oberoi

CHEMICAL & PAINTS, by Ashish Agarwal & Vignesh

FMCG, by Sree Harsha Lakkireddy

TEXTILES & APPAREL, by Debdeep Mandal

PHARMACEUTICALS, by Vaibhav Pawar

AUTO ANCILLARY, by Rakshith Govindarajulu and Ananda Kannan

NBFC, by Subhajit Bhattacharjee

REFERENCES

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AUTO & AVIATION- WHAT HAPPENED LAST WEEK- By Nandan P. Hegde

Mahindra & Mahindra’s Farm Equipment Sector launches Novo tractors

Mahindra & Mahindra’s (M&M) remains the top gainer in the auto sector this week withgains of 7.61 percent and overall monthly gains of 15.67percent. M&M has also launched itsnew advanced farming tractor called NOVO, priced 9.99 lakh onwards. The tractor is designedand developed inhouse by M&M’s farm equipment Sector(FES). It has both 2WD and 4WDvariants offered in open station design. Speaking at the launch, Rajesh Jejurikar, president –Farm Equipment Sector, Mahindra & Mahindra, said: “At Mahindra our purpose is to pioneeraccessible technology which transforms lives of farmers, worldwide. As a part of Farming 3.0initiative, the focus is on cutting edge technology and superior farming solutions." Withanother average monsoon season predicted for this year, the sales are likely to pick up somesteam in the upcoming quarters.

Maruti’s Q4 profits miss the street estimates

Maruti Suzuki India Ltd. posted its 15th straight hike in quarterly earnings. It missed theanalyst expectations due to higher effective tax rate and lower than expected margins.Margins rose marginally to 14.2 percent. This was lower than expected, mainly due to risingadvertising costs and commodity costs. The topline grew by 15.5 percent when compared tosame quarter last year. The board has recommended a dividend of 80 INR/share.

Aditya Ghosh to step down from IndiGo’s CEO

position

As IndiGo plans for the next phase of growth, analysts are not surprised with thisdevelopment. Gregory Taylor who is leading the revenue management team will take overthe CEO’s position. Rahul Bhatia, promoter of the company, will be the interim CEO. In hisletter to the employees Mr. Ghosh told he is all set to embark on his own venture but, did notelaborate on the same. The company has been developing its management team from early2017. A large number of expatriates who have experience in large airlines of developedcountries have been brought onboard. IndiGo has also created many new leadershippositions. Wolfgang Prock-Schauer former CEO of GoAir, has joined IndiGo as chief operatingofficer. He has experience of working in European airlines. Willy Boulter joined as chiefstrategy officer last week. Boulter has experience of working in Etihad, Virgin Atlantic, andCathay Pacific. Michael Swiatek has recently joined as chief planning officer and is responsiblefor network planning. Among Indian airlines, Jet Airways has numerous foreigners at crucialroles. Low cost carrier Air Deccan in its heydays had hired executives from European airlineRyanair.

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INFRASTRUCTURE & CEMENT- WHAT HAPPENED

LAST WEEK- By Ankit Babel & Jeet Bajaj

SAT quashes monetary penalty of INR 860mn by

SEBI on DLF, top officials

The Securities Appellate Tribunal (SAT) set aside the monetary penalty imposed in 2014 onreal estate giant DLF, on the latter’s chairman, Kushal Pal Singh, and some of its subsidiaryentities. The order was imposed by the Securities and Exchange Board of India (SEBI), thetotal penalty being INR 860 million on the company and on seven of its top officials.“The tribunal by a majority decision set aside the order passed by the whole time membersof SEBI by holding that the appellants have not violated the SEBI Act and the regulationsframed there under,” presiding officer J P Devadhar said in the SAT order.

NCLT reserves order in Binani Cement insolvency

case

The Kolkata bench of the National Company Law Tribunal (NCLT) on Tuesday reserved itsorder in the case of Binani Cement Ltd’s insolvency proceedings after hearing all petitions,except that by the bankruptcy resolution professional alleging fraudulent transactionsinvolving the promoters. UltraTech Cement and Dalmia Bharat Cement have been in adeadlock for the takeover of Binani. In its plea, UltraTech Cement on Tuesday cited the“precedent” set in the bankruptcy resolution case of Bhushan Steel & Power Ltd when NCLTadmitted UK’s Liberty House bid after deadline. NCLT’s ruling on Monday gives Liberty Housea chance to be in the race where Tata Steel was announced as the highest bidder. This,UltraTech Cement hopes, will make its case stronger. UltraTech lost out to Dalmia BharatCement in the race for Binani.

As general elections draw near, things look up for

cement firms

India is the second largest cement producer globally. The industry has added 110 milliontonnes of capacity in last five years. However, financial year 2017-18 has been a relativelytough one for the industry due to a ban on sand mining, use of pet coke and diminishedmarket concentration of industry leaders. Slower progress in infrastructure projects and lowofftake from housing and industrial users also slowed down growth. However, with generalelections nearing, it is expected that there would be a greater thrust by all agencies tomarquee projects such as Bharatmala, the Smart Cities Project and the Housing for All by2022 scheme. Cement demand is expected to grow by 6-7 per cent to reach 307 milliontonnes during FY2018-19. Higher government spending on infrastructure, pent-up demand,

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particularly in rural housing and low-cost housing, and rising per capita income are expectedto spur this growth. Infrastructure projects, especially in the areas of power, telecom,irrigation, roads, metros and railways, besides dedicated freight and industrial corridors aretogether expected to generate strong demand for cement.

More steam left in Dalmia Bharat, analysts expect

earnings to grow by 50%

One would tend to imagine that after having returned almost 42 per cent in the past oneyear, much higher than the - 4 to 5 per cent returns seen in top cement stocks such asUltraTech Cement, Ambuja Cements and Shree Cement, investor comfort in Dalmia Bharatmay not be very high. However, if analysts are to be believed, the days ahead are equallygood for Dalmia Bharat, one of India’s oldest cement companies. The company continues toexpand its capacities and regional footprint and is currently among top cementmanufacturers not only in terms of capacity, but also in profitability.

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POWER & ENERGY- WHAT HAPPENED LAST WEEK- By Priya K. N. L.

Moody’s Positive Outlook for Oil and Gas Sector

A recent report of Moody’s Investor Service stated that the upstream (Exploration andProduction) sector of oil and gas will see a growth of around 18-22 percent EBIDTA in thisyear. Moody’s Vice President Amol Joshi said that oil and natural gas production will increaseby around 10 percent this year continuing the trends of 2017.The report also stated that the cost of capital could rise by 10 to 15 percent due to anincrease in drilling and completion costs in 2017. It also had a mention with regard to mergersand acquisitions in 2018 to be more of strategic ones after a series of M&As in 2017.Despite its positive outlook, the report said that the debt balances will remain significantlyhigh, especially in large companies and still in line with 2014 levels.

Rise of Fuel Prices a Concern: Dharmendra Pradhan

Oil Minister Mr. Dharmendra Pradhan said that the rising oil prices are concern to thegovernment as it is imperative to maintain a balance between the fiscal and consumer prices.However, he did not clarify as to when or how the Centre will intervene to ease the pressure.The prices of petrol and diesel have risen by INR 11.54 per litre and INR 12.6 per litre in Delhisince July 1, 2017 as rates jumped in the international market. The rise is a combination ofvarious factors including higher oil demand and fear of sanctions on Iran and Venezuela’spoor production. Crude oil has risen by around 55 percent from July 1, 2017.Pradhan mentioned that the consumers are of highest interest to the government and that itis continuously watching and monitoring the situation. He also mentioned that India is keenon creating a network with other large oil consumers like China and Korea so as to have astronger voice in decisions regarding oil prices and productions in the future.

Brent Oil Prices highest since 2014

The prices of Brent Oil reached its peak this week since 2014 due to expectations of renewedUS sanctions against Iran. This is also supported by the continued supply cuts by OPEC amidsthigher demands. The oil price soared above $75 per barrel, the highest since November 2014.“Crude prices are now sitting at the highest levels in three years, reflecting ongoing concernsaround geopolitical tensions in the Middle East, which is the source of nearly half of theworld's oil supply,” ANZ bank commented on the present scenario.

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IT & TELECOM- WHAT HAPPENED LAST WEEK- By Rishi Gaurav Ravula & Jagarati Dadhich

IT

TCS

This week came with great achievements for Tata Consultancy Services (TCS):It has become the second ever company to join the coveted hundred billion dollar club, afterReliance Industries.TCS's market cap has surpassed the Gross Domestic Product or GDP of more than 120countries.TCS's shares have gained over 25% since January compared to the around 14% rise seen forits nearest rival, Infosys.

Sasken Technologies

Another IT firm Sasken Technologies declared its quarterly and yearly financial results.Quarterly Result:40% reduction to Rs. 25.98 crore in consolidated net profit in the March 2018 quarter. Salesrose 9.42% to Rs. 128.74 crore in the quarter ended March 2018 as against Rs. 117.66 croreduring the previous quarter ended March 2017.Financial Year Result:Net profit declined 2.68% to Rs. 82.42 crore in the year ended March 2018 as against Rs.84.69 crore during the previous year ended March 2017. Sales rose 7.65% to Rs. 503.02 croreas against Rs. 467.28 crore during the previous year ended March 2017.

Wipro

The quarter for Wipro was mainly impacted by two factors - bankruptcies of two clients, andan additional impact on the healthcare and life sciences business as more clients exited theexchange market.Wipro quarterly results:Consolidated net profit of Rs. 1,800 crore for the fourth quarter of FY18 is reported by thefirm, down 6.7% sequentially from Rs. 1,930.1 crore.Revenue from operations grew 0.7 percent for the quarter to Rs. 13,669 crore. Rupeerevenue from IT services was Rs. 13,412 crore, up 1.3 percent sequentially from Rs. 13,235crore in the last quarter. The company completed a buyback of Rs. 110,000 million inDecember 2017.

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Persistent Systems

Quarterly Results:A rise of 1.3 percent in its net profit at Rs. 73.71 crore in the quarter ended March of 2017-18. Growth in Revenues during the quarter of 3.5 percent from a year ago to Rs. 752.55 crore.The financial year 2017-18 Results:Profit up by 7.2 percent at Rs. 323.09 crore. Revenues increased by 5.4 percent from a yearago to Rs. 3,033.70 crore. Persistent Systems reported better than expected numbers forQ4FY18 on revenue and PAT fronts.

Cyient Ltd

Cyient Ltd has acquired AnSem N.V., for a consideration of $17 million through its subsidiaryCyient Europe Ltd. The all-cash deal lets Cyient buy 100 percent equity in the target firm.AnSem background: Incorporated in 1998, AnSem is headquartered in Leuven, Belgium. It isan application-specific integrated circuit (ASICs) design company which serves companies inautomotive, medical, industrial, smart home and smart grid sectors. AnSem has revenue ofabout $10 million in 2017 and operating margins of over 20 percent.

TELECOM

Bharti Airtel

The telecom sector has been seeing a race to the bottom on the pricing front since the entryof Mukesh Ambani-led Reliance. Bharti Airtel reported its lowest quarterly profit in almost 15years, hurt mainly by ‘below cost, artificially suppressed pricing’. With the 8th consecutivedecline, net profit plunged 77.8% to ₹82.9 crore in the fourth quarter ended March 31, from₹373.4 crore a year earlier. Total revenue fell 10.5% to ₹19,634 crore in the quarter. For thefull year, Bharti Airtel’s net profit fell by more than 71% to ₹1,099 crore, while revenuedeclined 12.3% to ₹83,688 crore. Its overall customer base rose 12.1% to 413.8 million across16 countries. Its consolidated net debt rose 3.83% sequentially to ₹95,228 crore. Bhartideclared a final dividend of ₹2.5 per share for the year ended March 31. Together with aninterim dividend of ₹2.84 per share, total dividend for the year comes to ₹5.34 per share.

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METALS & MINING- WHAT HAPPENED LAST WEEK- By Hemant Kothari

India to increase capacity to 150 MT of steel by 2020

India's steel demand is expected to grow 5.5% in 2018 and 6% in 2019. For meeting thisdemand, the government is planning to roll out a red carpet for international players to setgreenfield steel projects in India to meet the demand. JSW steel plans to double its capacityin about five years. Also, India’s largest iron ore (primary raw material for steel making)mining company NMDC will increase its mining capacity to 50 MT.

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Hindustan Copper signs MOU with MOIL

Hindustan copper LTD has signed a MoU with MOIL. As per the agreement, MOIL will procureits entire requirement of Silica sand used for backfilling of its mine from Hindustan CopperLtd. This MoU will promote synergy among Public Sector Enterprise.

Liberty House offers Rs.18,500 crore for Bhushan

Power & Steel

Liberty House has offered Rs.18,500 crore to acquire Bhushan Power & Steel, which is

Rs.1500 crore more than Tata Steel bid. However, Tata Steel will challenge the tribunal decision of allowing this late bid by Liberty House.

Q4 result announcements this week

Below is the list of companies that have announced their Q4 result this week

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Company PAT(in crore) % Change(QoQ)

Tata Metaliks 54.65 35.3

Jindal Stainless 114.74 (28.7)

Jindal Stainless Hisar 96.11 59

BANKING- WHAT HAPPENED LAST WEEK- By Tanvi Gangan

AXIS Bank Posts Loss of Rs. 2,189 cr Loss in Q4- First Ever loss for private sector

Q4 results of Axis bank showed a sky-high rise in the provisions made for bad loans to Rs.7,180 crores from Rs. 2,581 crores reported a year earlier thereby posting a loss of Rs. 2,189crores. This is the first ever loss for the private sector lender and has come as a shock for theinvestors since analyst had forecasted a profit of Rs. 660 crores, down from the year-earlierprofit of Rs. 1,225 crores.

HDFC Continues its Stellar performance in Q4FY18

HDFC’s net profit grew 20 percent YoY continuing their stellar track record of consistentgrowth in earnings of over 25 percent in last 10 years while maintaining asset quality. NII (NetInterest Income) has increased by 17.7 percent and NIM (Net Interest Margin) stood at 4.3percent while gross NPA during this quarter slightly deteriorated to 1.3 percent. The banksNPA ratio decreased to 0.4 percent compared to previous quarters number of 0.44 percent.

Infra lending may take a backseat as RBI refuses to

budge on new NPA rules

Following the revised framework for the resolution of stressed assets that aims at quickreporting of defaults, coming out with resolution plans for defaulting companies and time-bound referrals of defaulting firms to the National Company Law Tribunal (NCLT), banks arelikely to become more cautious and risk-averse to long-term funding especially to theinfrastructure sector. Since most of the restructuring happens in long-term projects in theinfrastructure sectors.

YES Bank Q4 Results 2018

India’s fifth largest private sector lender Yes Bank Ltd reported a rise of 29 percent in thestandalone net profit to Rs. 1,179.44 crores for the quarter ended 31st March 2018 led to anupsurge in the interest earned. Following the earnings release YES bank stock skyrocketed byaround 8% on Thursday. Gross NPA improved to 1.28% compared to previous quarters no. of1.72%. Non-interest income grew by 13% YoY. Operating profit increased by 33% compared toprevious year. NIM is at 3.5% compared to 3.4% of previous year. Advances grew by 53.9%YoY; retail banking advances grew 99.1% YoY while deposits increased by 40.5% YoY.

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CONSUMER DURABLES- WHAT HAPPENED LAST

WEEK- By Koshica Oberoi

Blue Star expects improved profits

Blue star is expected to report net profit of INR 37.40 crore, which is up by 0.6percent Year-on-Year basis. It is expected that the net sales will increase by 20 percent Year-on-Year. It isestimated that the scorching summer will boost the room air-conditioner sales by 15 percent.A low base of previous year may also provide support. The industry is expected to grow witha CAGR of 15percent during FY 18-20.

PC Jewellers’ shares dip

PC Jewellers share fell by about 20 percent in this past week. Management said it has no ideafor such a fall in the prices of the company’s equity. There is no change in the managementcontrol and growth strategy of the company. The company’s fundamentals are said to remainstrong.

Crompton unveils new range of fans & A.C.s

Crompton Greaves Consumer Electricals Ltd. unveiled a new range of fans and air-conditioners as a part of its product portfolio expansion. Company witnessed a rise in itsmarket share in the fan business to 27 percent and under the LED lighting business, to 9percent.

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CHEMICALS & PAINTS- WHAT HAPPENED LAST

WEEK- By Ashish Agarwal & Vignesh

Inorganic Chemicals reports robust performance

Inorganic Chemicals business’ revenue grew by 10 percent year over year to Rs 5.13bn, drivenby capacity addition (25,000MT) and better utilization. Despite increased coal prices, EBITmargin stood at 32.5 percent (31.6 percent in Q4FY17). The broader impact of input priceinflation was absorbed by an increase in the realization by Rs 500/tonne. For FY18, revenueincreased by 5.7 percent YoY to Rs 29.4bn (Rs 27.8bn in FY17), driven by a 21.2 percent yearover year increase in Inorganic Chemicals, partially offset by a 15.0 percent year over yeardecline in Home Textiles. It is expected a 4.9 percent/12.4 percent year over year revenuegrowth in Inorganic Chemicals segment with 30 percent EBIT margin each in FY19/20E on theback of global demand-supply imbalance and sustained demand.

GNFC posts Q4 profit of Rs329 crore

Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), a joint sector enterprise promotedby the government of Gujarat and Gujarat State Fertilizers & Chemicals Ltd (GSFC) has posteda net profit of Rs. 329 crores in the fourth quarter of FY18. This is a rise of 41% from theRs238 crore net profit posted in the corresponding quarter a year ago on a standalone basis.GNFC, which is spearheading Prime Minister Narendra Modi’s pet project of promotingNeem-coated urea across the country, saw its fourth-quarter revenue for 2017-18, increaseby 34% to Rs1,764 crore from Rs1,314 crore in the corresponding period in 2016-17.For the financial year ended in March 2018, the company posted a net profit of Rs790 crore,51% higher than Rs521 crore in FY17. Sales grew by 17% to Rs6,058 crores in the financialyear 2017-18 from Rs5,170 crores in the previous. With the improved financial performance,long-term debt has been fully paid off through a pre-payment of Rs534 crore. The financingcost of the company has been reduced by 51% year over year. The company has alsoannounced a dividend of 75%, the highest so far.

Tata Chemicals looks at Bolivia to feed growingappetite for lithium

Tata Chemicals Ltd is looking at business opportunities related to the exploration and importof lithium from Bolivia to India and possibly to other countries where the company operates.A team of senior executives from the company recently visited the South American nation,which has the largest deposits of lithium in the world and held meetings with governmentofficials there. Tata Chemicals’ interest in lithium is guided by the fact lithium and cobalt arethe two most important commodities needed to develop batteries for electric vehicles (EVs),

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the thrust vehicles for automobile manufacturers in India and across the world. At present, a lithium-ion battery accounts for 40% of the total cost of an electric vehicle. Lithium has other uses such as in mobile phone batteries and solar panels. In the first three-quarters of FY18, revenue of Tata Chemicals declined by 4% to Rs 7,790 crore. Its profit increased by 57% to Rs976 crore during the same period. The Union government in India is focused on promoting electric and hybrid vehicles in the years to come, and vehicle makers such as Suzuki Motor Corp. have already announced its plans to manufacture lithium-ion battery for electric vehicles. According to experts, the biggest hindrance to the adoption of electric mobility in India and across the globe is the scarcity of lithium. Apart from the auto industry, most of the mobile handset manufacturers have plans to manufacture their handsets in India, which would also require lithium.Lithium is tipped to be what oil was in the 20th century, and the demand will only increase in the coming years when lithium-ion battery manufacturing for electric vehicles will gather scale. It is natural for companies to explore options for lithium exploration and battery manufacturer before the race for the metal begins.

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FMCG- WHAT HAPPENED LAST WEEK- By Sree Harsha Lakkireddy

Cotton body sees a stable situation on higher stocks

After reviewing the crop situation for the 2017-18 cotton year, the Indian Cotton Federation(ICF) believes that the situation is more stable than expected. Although the arrivals at marketyards were late, it is at 90,000 bales a day at market yards. It is a good situation forinternational trade. As compared to international prices, the Indian cotton price is low andreasonable. Due to the tight financial situation prevailing in the spinning sector andcomfortable availability of quality cotton, the prices are expected to remain steady. But therealization of Indian farmer is not on expected lines as there is a global surplus in cottonproduction and there are few takers for Indian cotton as the fiber from India is notstandardized.

Duty of up to $92/Tonne likely on chemical import

from 4 nations

India is likely to impose an anti-dumping duty of up to USD 92.23 per tonne on import of achemical used in sectors like personal care, home care, pharmaceutical, agriculture-relatedend applications from Malaysia, Thailand and Saudi Arabia, following a Directorate General ofAntidumping and Allied Duties (DGAD) probe. DGAD has recommended the duty in the rangeof USD 92.23-7.10 per tonne. Finance ministry takes the final call to impose these duties. Theduty, if imposed, will protect domestic players from cheap imports of saturated fatty alcoholsfrom these four nations. Antidumping duty is aimed at ensuring fair trading practices andcreating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.Imposing such duty is permissible under the World Trade Organisation (WTO) regime. BothIndia and China are members of the Geneva-based body.

Azafran enters baby care segment

Organic and natural personal care products maker Azafran Innovacion Ltd has launched itsfirst range of baby care products. The range consists of daily care products such as massageoil, nourishing cream, gentle body wash, shampoo and moisturizing soap. The products areprepared from certified organic ingredients. The Ahmedabad-based company aims to expandits reach through a combination of modern retail stores, multi-brand outlets and tie-ups withmajor retail chains. It plans to cover all metros and towns with a population of 20 lakh andabove. For children above two years, Azafran has introduced D’fend SPF 50 & SPF 30sunscreen creams. Other products include eco-friendly laundry products and organic veggiecrayons made with organic waxes of soya and sunflower and food grade colours.

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Mrida launches healthy cookies under its FMCG brand ‘Earthspired’

Earthspired, a Mrida Group brand, has launched a range of healthy millet and amaranthcookies for an occasional healthy snack treat. The brand represents a Healthy, Wholesomeand Straight from rural India business. The 100-gram pack of cookies is available in the pricerange of Rs. 170 to Rs. 200 per pack. These multigrain ‘snack bites’, specially formulatedwithout wheat/refined flour have a judicious combination of millets and amaranth. Milletsare known to have the low glycemic index and have shown to produce lower blood sugarlevels than wheat or rice. Consumption of millets provides more satiety and thus lowerhunger pangs. Millets also hydrate the colon to keep constipation at bay. Mrida sources graindirectly from small and marginal farmers in remote rural India to provide them withsustainable livelihoods and market linkages.Earthspired has 6 different types of cookies available in two ranges: Multigrain Healthycookies and Multigrain Gluten Free cookies without soya. The Multigrain Healthy cookierange comprises Honey Almond Crunch, Coconut Crunch, and Choco-chip Crunch, while theMultigrain Gluten Free category, comprises Amaranth Sweet Crunch, Coffee Crunch, andAmaranth Sweet & Salty Crunch.

Online beauty and wellness product retailer Nykaasecures Rs 75 CrNykaa, an online beauty, and personal care product retailer which offers makeup, skincare,hair care, fragrances, bath and body, luxury and wellness products for women and men hasraised Rs 75 crore fresh funds. The investment also spiked the Mumbai-based company’svaluation at Rs 3,000 crore.

Colgate announces March quarter 2018 results, sales

rise 6.4 %

Colgate-Palmolive Co the world’s largest toothpaste maker saw more demand for its oral, personal and home care products in Europe and North America. Net sales rose 6.4 percent to $4 billion. Net income rose to $634 million, or 72 cents per share, in the first quarter ended March 31, from $570 million, or 64 cents per share, a year earlier.

Bajaj Corp Q4 results

Bajaj Corp, the FMCG Company engaged in personal care products, specifically hair oils,posted its posted 5.22 per cent YoY rise in PAT to Rs. 55.41 crore. The total income is at Rs.222.46 crores as against Rs 206.86 crore in Q4FY17. FY18 posted marginal 2.8 percent total

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income growth while 2.1 percent PAT de-growth. 6.9 percent volume growth in the domesticmarket offset the underperformance in international business.

ITC ties up with NITI Aayog to train 2 lakh farmers to

increase income

FMCG major ITC today said it has joined hands with NITI Aayog to train 2 lakh farmers in 25aspirational districts across Assam, Bihar, Jharkhand, Madhya Pradesh, Maharashtra,Rajasthan and Uttar Pradesh. The partnership is for a period of four years, i.e. up to April2022. The prime objective is to improve net returns from farming through the reduction incosts of production and increasing productivity of major crops in each of the identifieddistrict. NITI Aayog will work in close collaboration with the district administrations and ITC tobuild capacities of relevant government extension staff to create a cohort of master trainers.These trainers will disseminate sustainable agricultural practices and templates for seasonalplanning at gram panchayat level, while the baseline and end line data will be collected by ITCfor impact documentation, mapping of government schemes and programs for improving theefficiency of delivery.

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TEXTILES & APPAREL- WHAT HAPPENED LAST

WEEK- By Debdeep Mandal

Apparel companies declare Q4 earnings

The last week witnessed the fourth quarter earning declaration of many companies.Companies like Raymond managed to pull out a stellar performance in this quarter comparedto previous quarters in spite of the impact that GST had implicated in the low margin textileand apparel sector.

Textile Ministry launches Samarth scheme

The Textile Ministry launched the “Samarth” scheme with the objective to train youthsseeking employment in the textile and apparel sector. The scheme will be focussing on skilldevelopment of nearly 10 Lakh youths in both organized and traditional textile sectors over athree year period in between 2017-20. For the success of this scheme, the Centre hasallocated close to 1,300 Crore INR, which will be utilized across the entire value chain exceptspinning and weaving. The long-term plan is to achieve 300 Billion USD exports in the textilesector by 2025.

GCCI to implement similar model as Amul

The Gujarat Chamber of Commerce and Industry (GCCI) is planning to implement a modelthat would be similar to the line of Amul. According to the GCCI, implementing a similarmodel like Amul would help in increasing monetary benefits to all the stakeholders involvedin the fabric processing value chain. The committee will be focussing on both land andresource utilization to increase productivity and earnings. More importance will be given tomanufacturing of value-added products that will increase margins. The GCCI along with theMaskati Market Kapad Mahajan is organizing an industrial expo “Farm to Fashion” inAhmedabad from 4th May to 6th May. The expo will be covering aspects related toregulatory norms, technological updates, sustainable business practices, environmentalrelated regulations and government incentives.

Textile exports fall, Associations & exporters express

concern

Textile Associations and leading exporters have expressed their concerns about the fall in exports. As per the current figures, the exports have reduced by 13 percent as compared to previous year. There are also serious concerns regarding the integrated goods and services tax

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(IGST) refunds not being processed for the last few weeks. Earlier exporters used to berefunded two to three times a week but since March onwards the processing has stoppedabruptly. This has again been a serious concern for the exporters. The textile associationshave also expressed their dissatisfaction regarding the government’s inability to reduceexport incentives and propose a free trade agreement with the European Union.

Southern India Mill-Owners Association to curtail

production

The Southern India Mill-owners Association has decided to curtail production in its 175 millsacross Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Puducherry. The mills will becurtailing the production by almost 33 percent until the position improves. This step has beentaken due to the heavy accumulation of stocks. The result of this pile-up of stocks is mainlydue to the dip in exports and heavy implementation of taxes on the textile sector by theUnion Government. The Association has requested the Reserve Bank of India to liberalise thecredit facilities for textile mills and yarn trade.

State & Centre to come together to ensure

implementation of schemes

On 26th April 2018, a meeting of state textile ministers was held in New Delhi to discuss theview on the government schemes for the handloom and handicraft sector. During thismeeting, it was decided that steps and cooperation will be required both at the state andcenter level to ensure that all the benefits of all government schemes like the UjjwalaYojana, Swachhta Abhiyan reach the beneficiaries. The focus was also on the development ofthe Indian Handloom Brand launched by the Prime Minister Narendra Modi. As per theplan, all the stakeholders are required to register their products with the Indian HandloomBrand. There was also an emphasis on the literacy of weavers and artisans throughgovernment initiatives taken by the Textile Ministry. This required weavers, artisans and theirfamilies to enroll with NIOS and IGNOU.

Raymond reports 61% jump in profits

Raymond declared its fourth-quarter results. The company’s net profit stood at 54.38 CroreINR and witnessed an increase of 61 percent as compared to previous year period. Thetotal income increased by 9.91 per cent and stood at 1,655.12 Crore INR during the lastquarter as compared to 1,505.75 Crore INR in the corresponding quarter during the previousyear. The company’s net profit jumped to 141.55 Crore INR during the 2017-18 financial yearas against 30.02 Crore INR during the last financial year. The total income increased to

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6,024.91 Crore INR in the period ending March 2018 as compared to 5,509.26 Crore INRin the previous fiscal year. The company’s strong annual performance banked on its strongsales growth and reduction in discretionary expenses.

Vardhman Textiles Ltd to report increased profits

As per ICICI Direct estimates, Vardhman Textiles Ltd fourth quarter Profit after Tax wouldbe somewhere close to 163.7 Crore INR. This is considering an increase of 3.2 percent ascompared to the quarter the previous financial year. Net sales this quarter are expected toincrease by 2.1 percent to 1,642.5 Crore INR as compared to the previous fiscal year.

Grasim Industries BoD to meet on 23rd May for

financial discussions

The Board of Directors of Grasim Industries will be meeting on 23rd May 2018 to review theaudited financial statements of the company for the 2017-18 financial year. Upon review, theboard will be deciding on whether to declare dividends for the 2017-18 financial year to itsshareholders on the outstanding equity shares.

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PHARMACEUTICALS- WHAT HAPPENED LAST

WEEK- By Vaibhav Pawar

More than 70% drug patents granted in India for marginal Improvements

A team of researchers and patent lawyers reveal that almost 72% of drug patents granted byIndia might have skipped elaborate scrutiny, an analysis of patent grants. They pointed outthat Seventy-two percent of granted patents for pharmaceuticals are secondary patents,granted for marginal improvements over previously known drugs for which primary patentsexist. The report also proposed that only fifteen percent of secondary patents were subjectedto elaborate scrutiny, accompanied by a detailed written order of the Indian Patent Controller.The report has been prepared by patent lawyers and researchers Feroz Ali, SudarshanRajagopal, Venkata S. Raman and Roshan John for ACCESSIBSA, which is a tri-continentalproject enabled by a fellowship from the Shuttleworth Foundation. The project focuses oninnovation and access to medicines in India, Brazil and South Africa.

Fortis healthcare receives yet another offer- This timefrom China

Fortis had received an investment offer of 12.5 billion rupees from Hero EnterpriseInvestment Office and the Burman Family Office earlier this month. After two rival takeoverbids, Fortis Healthcare Ltd received an investment offer up to USD 350 million from a Chineseconglomerate Fosun International.Fosun Healthcare in a letter to Fortis said it has offered up to 156 rupees (USD2.38) per Fortisshare and won't hold more than 25 percent stake in the hospital and diagnostics chain.Hero Enterprise and Burman had together tried unsuccessfully to discuss an acquisition ofFortis last month.Fortis first became a target for takeover bids when local rival ManipalHealth Enterprises made an offer of about USD1.2 billion.

Biocon Q4 Results: Growth seen in Biosimilars but

margin below expectations

Biocon's financial results for the March quarter and the recently-concluded financial year arelargely in line with the analyst and market expectations, though margins were found to bebelow expectations. On the biosimilars front though, the company seems to be making goodprogress. In fact, it has kept the results inline. In terms of the financial performance for theyear, Biocon's total revenue for FY18 stood at Rs 4,336 crore with revenue from operations atRs 4,130 Crore. The EBITDA stood at Rs 1,035 crore, with an EBITDA margin of 24 percent forFY18. Core EBITDA margin for FY18 (net sum of licensing, the impact of forex and R&D) stoodat 27 percent. Reported net profit for the year was Rs 372 crore, which represents a net profitmargin of 9 percent.

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Lupin gets USFDA approval for the anti-cholera drug

Pharma Major Lupin has received final approval for its anti-cholera Tetrabenazine tablets, 125mg and 25 mg from USFDA to market in the USA. The share prices of Lupin rose 2% on thisaccount. The drug is indicated for the treatment of chorea associated with Huntington'sdisease. According to IQVIA MAT, Tetrabenazine Tablets, 125 mg, and 25 mg had annual salesof approximately USD 288.1 million in the US in Jan 2018.

Zydus Cadila receives final approval from USFDA for

Methylprednisolone and Cinacalcet

Cadila got approval from the US health regulator for Methylprednisolone, used for thetreatment of conditions such as arthritis, blood disorders, severe allergies cancers and eyeconditions. The group company has received final approval from the US Food and DrugAdministration to market Methylprednisolone tablets USP in the strengths of 4 mg, 8 mg, 16mg and 32 mg. It will be manufactured at the group's formulations manufacturing facility atMoraiya, Ahmedabad. The group also received the final approval to market CinacalcetHydrochloride Tablets, which is indicated for the treatment of high blood calcium in patientswith cancer of parathyroid glands and for the treatment of high blood parathyroid hormonelevels seen in patients with chronic kidney diseases on dialysis. Cinacalcet will bemanufactured at the group's formulations manufacturing facility at SEZ, Ahmedabad. TheCadila Group now has more than 185 approvals.

Dr Reddy’s Laboratories gets EIR from USFDA for its

plant in the UK.

Earlier this week Dr Reddy's Laboratories said that it has received an establishment inspectionreport (EIR) from the US health regulator after the audit of its UK facility. The USFDA hasissued an EIR to Dr Reddy's Laboratories' API Mirfield plant as it has decided to close theinspection. Last year, the USFDA had made three observations after inspecting Dr Reddy'sLaboratories' API Mirfield plant, United Kingdom.

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AUTO ANCILLARY- WHAT HAPPENED LAST WEEK- By Rakshith Govindarajulu & Ananda Kannan

Court to decide on Liberty House’s eligibility to buy Amtek Auto Limited

The debt-ridden Amtek Auto Limited (AAL) has received two binding bids- Liberty House (firsthighest bidder) and Deccan Value (second highest bidder). Creditors had voted in favour ofLiberty House for the bankrupt Amtek Auto after it emerged as the highest bidder offeringabout Rs. 4,334 crore. However, the resolution professionals of Amtek Auto have asked thecourts to decide on the eligibility of Liberty House after it emerged that Liberty House hasdefaulted on a $3 Million payment to EXIM bank. The news of default payment came to lightwhen the resolution professional of ABG Shipyard rejected a bid by Liberty House on thegrounds that a company is ineligible, as per Section 29A of the Insolvency and BankruptcyCode that bars defaulters from bidding for bankrupt companies. However, senior officialscommented that Liberty House has cleared the dues with Exim Bank after the institutioninformed the RP of ABG Shipyard, Sunderesh Bhat about its overdue from Liberty House.Amtek Auto’s resolution professional, Dinkar Venkatasubramanian has sought time with thecourt to negotiate with second highest bidder - Deccan Value. Liberty House is set tochallenge the move made by RP that deems it as ineligible before giving an opportunity toclear the dues. ABG Shipyard and Amtek Auto are among the list of 12 companies that theReserve Bank of India directed banks to refer to the bankruptcy court. ABG is facing claimsworth Rs. 18,245 crore and Amtek Auto is facing claims of Rs. 12,722 from financial creditors.

MRF ltd. unveils rain guarding initiatives in

Karnataka

Farmers of Karnataka will be getting rain-guarding materials free of cost from MRF Ltd. Forthis initiative, MRF has identified 7 co-operative societies and rubber processing societies aschannel partners. MRF plans to cover 8,005 hectares of rubber plantation in Karnataka,having more than 32 lakhs rubber trees and benefiting nearly 7,500 farmers. India’srequirement of dry rubber per year is about 10,00,000 MT but only 7,00,000 MT is producedin India and the gap of 3,00,000 MT is imported. Rain-guarding of rubber is expected tosignificantly reduce this gap. MRF is the largest domestic purchaser of dry rubber in India.Along with supporting traditional rubber growing areas such as Kerala and Tamil Nadu, MRFhas a special focus on non-traditional areas that include Karnataka, Tripura, Assam andMeghalaya. MRF together with Rubber board and rubber-producing societies is also planningto implement rain-guarding initiatives in Kerala.

Motherson Sumi plans 3 acquisitions in 6 months

Motherson Sumi Systems Limited (MSSL) is in advanced stages of sealing at least threeacquisitions in the next 5-6 months. MSSL recently announced the deal of acquisition of

21

Reydel Automotive, a supplier of interior parts. One of the acquisitions is for a Europeancompany that has filed for multiple bankruptcies. “The value of the acquisition could be inthe range of $500 million,” a very reliable source informed. The second company underconsideration is in Japan. The acquisition will be in the range of $50 million-$80 million. Thethird target acquisition is in the US, and the valuation is between $200 million and $250million. The company expects to get at least over $2 billion revenue from the organicexpansion expected to complete next year. MSSL has a team of over 120 people to executemerger and acquisition deals across the automobile world. MSSL has banked on inorganicgrowth through a slew of acquisitions and is just 2 years away from achieving its target of $18billion annual turnover. In 2015, MSS set a revenue target of $18 billion by 2020, from $5.5billion in 2015. While releasing the fourth five-year plan in 2015, the company said that ithopes to achieve 65% of the target revenues through existing businesses and the rest throughthe acquisition route. The company has exceeded its last three five-year plans’ revenuetargets.

Auto giants pulling vendors to Gujarat

Automobile giants Suzuki motor corporations (SMC) and Ford India have made biginvestments in Gujarat and are now pulling ancillary units to their place. This is majorly due toshort supply of components including delays in delivery. Ford India has 18 vendor unitslocated in Sanand, Gujarat. But there are few other units which are located outside Gujarat.Ford has developed a vendor development program and requests its vendors to set up theirfacilities in the vicinity of Ford. This helps in the improvement of quality and manufacturingaspects. SMC is also in talks with its vendors, requesting them to set up plants nearby.According to Government sources, 17 ancillary units have made investments towards theBhagalpur industrial estate. This is very near to the SMC plant in Hansalpur, Gujarat. The autoComponent manufacturing association(ACMA) states that these investments are improvingthe number of ancillary units in Gujarat and thus creating a wide scope for improvement anddevelopment. An addition to this list is Tata Motors which already has 28 vendors supplyingthem from Sanand.

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22

NBFC- WHAT HAPPENED LAST WEEK- By Subhajit Bhattacharjee

LIC continues its reign

LIC's first-year premium (FYP) income clocked an all-time high of ₹1,34,551.68 crore, a13.46% rise compared to FY17’s FYP of ₹1,24,451.42 crore. The national insurer’s marketshare stood at 69.40% at the end of March’18 as it continued to retain its market leadership.

IDFC’s net profits slump

IDFC reported a 16% slump in net profit in FY18 at ₹589.65 crore against the FY17 net profitof ₹699.09 crore. However, total income in FY18 rose by 7% to ₹11,161 crore compared to₹10,402 crore in FY17.

Nitya Kishore Sahu appointed the new compliance

group head

Religare Enterprises Ltd. appointed former RBI director of Jammu & Kashmir region, NityaKishore Sahu, as new compliance group head. This new development took place after ₹146crore was raised by Religare by issuing convertible warrants. There is an ongoing investigationby the Serious Fraud Investigation Office into the affairs of the company.

Shriram Transport Finance Corporation Ltd. Reports

decline in net profit

Shriram Transport Finance Corporation Ltd. reported a 3% decline in its Y-o-Y net profit. Thiswas mainly due to 47% increase in provisions owing to change in NPA classification norms.The net interest income (NII) increased by 30% in the fourth quarter on a Y-o-Y basis.

Piramal Housing Finance expands base

Piramal Housing Finance, the wholly owned subsidiary of Piramal Finance, expanded itshousing finance business to Pune. They will offer home loans, small ticket constructionfinance and loans against a property to developers in Pune. In the next six months, thecompany aims to expand its housing finance business to cities like Chennai, Nashik,Hyderabad, Ahmedabad and Surat.

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Bharat Financial Inclusion Ltd. to grow loan portfolio

by 50%

India’s largest microfinance firm in terms of outstanding loans, Bharat Financial Inclusion Ltd.,is aiming to grow its loan portfolio by at least 50% by expanding its business to new locationslike Tamil Nadu, Gujarat, Tripura and Assam. The company clocked a 38% increase in its grossloan portfolio which stood at ₹12,594 crore on 31st March 2018.

Contd.

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REFERENCES

AUTO & AVIATION- http://www.business-standard.com,

https://www.bloombergquint.com, https://economictimes.indiatimes.com/et-now/markets

INFRASTRUCTURE, RE & CEMENT- http://www.business-

standard.com/article/economy-policy/sat-quashes-monetary-penalty-of-rs-860-mn-by-sebi-on-dlf-top-officials-118042600047_1.htmlhttps://www.vccircle.com/nclt-reserves-order-in-binani-cement-insolvency-case///economictimes.indiatimes.com/articleshow/63949610.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppsthttp://www.business-standard.com/article/companies/more-steam-left-in-dalmia-bharat-analysts-expect-earnings-to-grow-by-50-118042401146_1.html

POWER & ENERGY-https://energy.economictimes.indiatimes.com/news/oil-and-gas/outlook-for-upstream-oil-sector-positive-in-2018-moodys/63934055https://energy.economictimes.indiatimes.com/news/oil-and-gas/government-concerned-about-rising-fuel-prices-dharmendra-pradhan/63927357https://www.moneycontrol.com/news/business/brent-oil-prices-hit-highest-since-late-2014-on-supply-cuts-potential-sanctions-2555379.html

IT & TELECOM- moneycontrol.com, hinduBusinessline.com,

economictimes.indiatimes.com, business-standard.com, indiainfoline.com

METAL & MINING-https://www.livemint.com/Money/Qi5oQPONim5wu0WPX7WaSM/Indias-steel-demand-a-cloud-and-a-silver-lining.html http://www.metaljunction.com/news/newsdetail/Govt-will-roll-out-red-carpet-to-foreign-steel-cos-Official_1#sthash.zP37Q6NL.dpbshttp://www.business-standard.com/article/current-affairs/nmdc-to-increase-mining-capacity-to-50-million-tonnes-by-2019-20-118042400755_1.htmlhttps://www.livemint.com/Money/Qi5oQPONim5wu0WPX7WaSM/Indias-steel-demand-a-cloud-and-a-silver-lining.html

BANKING- Economic Times, Money Control.com

REFERENCES

CONSUMER DURABLE- Money Control

CHEMICAL & PAINTS- www.livemint.com

FMCG- www.economictimes.com, www.businesstoday.in,

www.moneycontrol.com, www.business-standard.com, https://entrackr.com, https://www.deccanchronicle.com, https://www.thehindubusinessline.com

TEXTILES & RETAIL- India infoline, Money Control, ET

PHARMACEUTICALS- www.livemint.com, www.businesstoday.in,

www.moneycontrol.com, www.pharmabiz.com

AUTO ANCILLARY-https://economictimes.indiatimes.com/industry/banking/finance/motherson-sumi-plans-3-acquisitions-in-6-months/articleshow/63875620.cmshttp://www.thehindu.com/business/Industry/mrf-unveils-rain-guarding-initiative/article23646595.ecehttps://economictimes.indiatimes.com/industry/auto/news/amtek-auto-asks-court-to-decide-on-libertys-eligibility/articleshow/63876002.cms

NBFC-https://economictimes.indiatimes.com/industry/banking/finance/motherson-sumi-plans-3-acquisitions-in-6-months/articleshow/63875620.cmshttp://www.thehindu.com/business/Industry/mrf-unveils-rain-guarding-initiative/article23646595.ecehttps://economictimes.indiatimes.com/industry/auto/news/amtek-auto-asks-court-to-decide-on-libertys-eligibility/articleshow/63876002.cms