BASIX appoints S Ramachandran as country business manager

Micro-finance company Basix Group has appointed S Ramachandran as the country business manager

Hyderabad-based Basix Group, the oldest micro-finance conglomerate, has appointed S Ramachandran as the country business manager (CBM). Mr Ramachandran, until recently, served as the chief financial officer of the group. As Basix' CBM, he will be responsible for the next phase of business growth of the company.

Sajeev Viswanathan, managing director and CEO, Bhartiya Samruddhi Finance, said, "A keen focus on business is very critical to ensure that we meet and exceed our clients' expectations. And, to enhance this focus, I am delighted to appoint S Ramachandran as Basix' CBM." Bhartiya Samruddhi Finance (BSFL) is the flagship company of the Basix Group, and is registered with the Reserve Bank of India (RBI) as a non banking financial company.

Mr Ramachandran will have the geographical responsibility of all business verticals (profit & loss and social performance) across India. Basix has created four zones - east, west, north and south. Mr Ramachandran, a 10-year Basix veteran, has served in various capacities across the organisation.
 

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COMMENTS

E V Krishna Murthy

6 years ago

he has been recognised very late.

Earnings analysis: Sintex, Castrol, Exide...

Though net profits have jumped, operating profit growth for the first few companies that have declared results has been a mixed bag

SINTEX INDUSTRIES (2Q)
Net sales: Rs 9.2bn (estimated range was Rs 8.2bn - Rs 10.23bn)
Net profit: Rs 1bn (estimated range was Rs 686mn - Rs 1.12bn)

Results were in the middle of the estimated range for sales and on the higher side for profits. Some of the highlights of the results were

  • Better than expected margins (monolithic - 23%, custom moldings - 27% and prefabs - 25%)
  •  An increase in working capital
  •  Good growth in the monolithic business, as expected
  • Earnings upgrades by some brokers (who were on the lower end of the estimate scale)
  •  Cash flows likely to be under pressure. Historically too, Sintex has not generated positive cash flows. However, going by the promoter's plans to take a stake in a 1000MW power plant which they are putitng up, invest in oil and gas exploration, get into construction business, and buy a custom-molding company overseas, cash flows are likely to be tighter than before.
  • Among subsidiaries, Bright Brothers' revenue rose 50% yoy to Rs 660mn and Neif rose 25% to Rs 2.2bn
  • Revenue from water tanks remained stagnant at Rs 440mn
     
    In the September quarter, Sintex's promoter shareholding went up to 34% from 30% in June-10 and 30% in Sept-09; FII shareholding increased significantly to 33% (29%, 28%); and DII share came down by quite a lot to 14% (18%, 22%).

CASTROL INDIA (Q3)
Net sales: Rs 6.4bn (estimated range Rs 6.4bn - Rs 7.2bn)
Net profit: Rs 1.2bn (estimated range Rs 1.1bn - Rs 1.5bn)

Results were at the lower end of the range for both sales and profits. Here are a few highlights:

  • Volumes fell a little more than expected but net realisations made up for the loss because of the 4% price hike the company took in July.
  • Operating margin dip was a little lower than the expected 500bps due to lower advertisement costs and the higher realisations. Operating margins were at 26%. The automotive segment reported a growth in margins while the industrial segment showed a dip
  • Raw material costs increased 11% qoq

In the September quarter, Castrol's FII shareholding went up to 6.3% from 5.8% in June and 5.2% yoy. However, the DII share came down to 7.3% from 7.8% in June and 8% yoy. Promoter share was steady at 71%.

EXIDE INDUSTRIES (Q2)

Net sales: Rs 11.2bn (estimated range Rs 11.4bn - Rs 12.3bn)
Net profit: Rs 1.6 (estimate Rs 1.8bn)

Both net sales and net profit came in at the lower end of the range.

  •  A fall in margins (qoq) was perhaps the most disappointing aspect of the results due to an increase in operating costs; but the management has given a postive guidance and said that margins will improve sequentially from here as capacity constraints ease (new two-wheeler battery facility at Ahmednagar, additional lines at two of its four-wheeler battery facilities commissioned in September). Ebitda margins declined 422bps yoy and 110bps qoq to 22%
  • The lead recycling advantage is not coming through as expected
  •  Qoq decline in revenues was also disappointing
  • As expected, consumer UPS batteries did well, but telecom and OE industrial segments declined
  •  Net cash levels at Rs 7bn
  • Results include high other income at Rs 196m and and exceptional income of Rs 469mn from transfer of leasehold land
  •  Capex spend maintained at Rs 4bn for FY11 -- much higher than the ~Rs 1bn in FY10 -- free cash is expected to dip substantially this year
  • High levels of cash and investment on the balance sheet indicate that QIP money is still largely unused

In the September quarter, Exide's promoter shareholding remained constant at 46%; FII shareholding increased to 15.4% (14% in June-10, 9% Sept-09) and DII share dipped to 16.6% (18%, 20%).
 

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Coal India IPO: Government behemoth also plans to target overseas reserves

The pricing of the world’s biggest coal producer’s IPO appears to be competitive, say analysts

Yesterday (http://www.moneylife.in/article/8/9954.html) we had reported on how Coal India Ltd (CIL) is planning to come out with what could eventually be India's largest Initial Public Offering (IPO). The government plans to raise around Rs15,000 crore from this offer. It is diluting 10% stake in CIL through the public offer. At present, the Centre owns a 100% stake in the company.

"This IPO would break all previous records and we intend to increase the public participation in the company," said coal minister Sriprakash Jaiswal. CIL's IPO will surpass Reliance Power's IPO, which had raised Rs11,500 crore.

The offer comprises a net offer to the public of 568,472,796 shares and 63,163,644 shares, which are reserved for the company's employees.

According to market experts CIL's IPO is likely to fetch more investment from foreign institutional investors (FIIs) as the price is fairly fixed.

"The Coal India IPO has been priced attractively. This will ensure inflow of money into the Indian market, especially from FIIs. The IPO will act as a catalyst to bring more FII investment into the market," ICICI Prudential Asset Management Company's deputy managing director Nilesh Shah said on the sidelines of an event.

The issue will also bring back retail investors, he said.

"Similar to the Maruti Suzuki IPO, the Coal India IPO will also attract more investors to India. The Indian market will be driven by flows from FIIs in the coming years," Mr Shah said.

"The IPO is reasonably priced. Investors would like to have exposure to the company's unique business as it enjoys a monopoly status today," Bajaj Allianz's Chief Investment Officer (CIO) Sashi Krishnan said.

Birla Sun Life Insurance Company's Chief Investment Officer Vikram Kotak also said that the offer is "not costly" and the market is seeing huge investments coming in.

All the three companies are planning to invest in the IPO.

"We have not yet finalised our plans for investment but we are looking at the possibility," Mr Krishnan said.

Talking about the production loss due to the Naxalite movement, Partha Bhattacharyya, chairman, CIL, said, "Even though we are facing the Naxalite problems, particularly in Jharkhand, we have not slowed down our production, but it is hampering the transportation of coal."

"We are facing environmental hurdles for a long time; however, we have managed to maintain our production target. Once the projects are approved by the ministry of environment & forests, production will increase faster," said Mr Bhattacharyya.

The company is also planning to acquire two overseas assets with an investment of $1.2 billion, added the chairman.

In India, there is a 2.5% gap in demand and supply and CIL expects 20% annual growth in imports, said Mr Bhattacharyya. CIL also expects about 15% growth in sales and 25% in net profit for FY11 by increasing sale of high-quality products, said AK Sinha, director of finance, CIL.

The state-owned company is also planning to increase its coal-washing capacity to increase the quality of coal, added Mr Bhattacharyya. In India, about 75% of power is generated from coal and demand is expected to grow by 11% every year, said Mr Bhattacharyya.

This apart, the Adani Group is in talks with CIL to form a partnership for developing its Australian mines. Adani recently bought the mines for Rs12,600 crore.

"Talks have opened up between an Adani Group firm and Coal India Ltd. The Adani Group is seeking to rope in CIL for development of coal assets it recently bought in Australia for Rs12,600 crore. There could be an equity partnership as well," a market source privy to the development said.

Coal India is the largest coal-producing company in the world, based on the company's raw coal production of 431.26 million tonnes (MT) in fiscal 2010. As of 31 March 2010, the company operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines, which include both open cast and underground mines.

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