Globe Textiles’ Q3 2023: 4x Growth Fuelled by Resilience

 New Delhi, February 08, 2024 – Globe Textiles (India) Limited, a renowned organization in the textile sector, yesterday unveiled its unaudited standalone financial results for the quarter and nine months ending December 31, 2023. Despite facing adversities from natural calamities and regulatory shifts, the company has demonstrated remarkable resilience, reflecting a steadfast commitment to its stakeholders.

  Globe Textiles recorded revenue from operations of INR 9,282.96 lakhs for the quarter ended December 31, 2023, showcasing its consistent revenue stream despite challenges. For the nine months ended December 31, 2023, the company reported revenue of INR 32,761.63 lakhs, underlining its stability in the market.

 The company recorded a profit before tax of INR 198.83 lakhs in the quarter, which is a good sign of growth compared to previous periods. Additionally, Globe Textiles reported a profit after tax of INR 163.83 lakhs for the quarter and INR 444.71 lakhs for the nine months ending on December 31, 2023, indicating its resilience in maintaining profitability. The company’s profit before tax has increased almost fourfold from 47.61 lakhs in the previous comparative quarter.

 Due to heavy rainfall and wind, there was severe damage to property, plant and equipment, and stock of its one unit. However, the Company promptly submitted the insurance claim. The assessment of the total loss is ongoing, emphasizing the company’s proactive approach to mitigating risks.

 With the Indian Parliament’s approval of the Code on Social Security, 2020, Globe Textiles acknowledges the potential impact on contributions towards Provident Fund and Gratuity. The company remains vigilant and will assess and account for the actual impact accordingly.

Commenting on the results, Globe Textiles (India) Limited official spokesperson, expressed, “We are pleased to present our unaudited standalone financial results for the quarter and nine months ended December 31, 2023. Despite challenges posed by natural disasters and regulatory changes, we remain focused on delivering value to our stakeholders.”

 Globe Textiles commits to quality and innovation, the company serves a diverse customer base across domestic and international markets.

Alembic Pharmaceuticals Ltd profit up by 48% to Rs. 180 crores in Q-3 FY24

Mumbai, February 5th, 2024: Alembic Pharmaceuticals Limited reported its consolidated financial results for the third quarter and nine months period ended 31st December, 2023.

Financial Highlights

  • Net Sales grew 8% to Rs.1631 Crores for the quarter.
  • Net Profit up 48% to Rs.180 Crores from Rs.122 Crores
  • EBITDA up 14% to Rs. 269 Crores.

Mr. Shaunak Amin, MD, Alembic Pharmaceuticals Limited said “The India Branded Business was underpinned by a continued incremental improvement in core operations. The Specialty and Animal health segments continued its strong outperformance; whereas the acute performance was relatively satisfactory despite challenging market conditions. The Ex US generics grew 32% in the quarter, whereas the US returned to a 9% growth on the back of 11 launches and 7 approvals.”

Operational Highlights

India Branded Business

  • India Branded Business at Rs. 596 Crores witnessed growth of 9% for the quarter.
  • Gynecology, Gastrointestinal, Anti Diabetic and Ophthalmology therapies outpaced market growth.
  • Relative degree of performance continue to be better than the market in Antibiotic and Respiratory segments on high base of previous year.
  • Animal Health business recorded growth of 32% YoY basis. Basket of strong brands continue to drive outperformance.

International Business

  • US Generics grew 9% to Rs. 474 Crores for the quarter.
  • Ex-US International Formulations grew 32% to Rs. 272 Crores for the quarter.
  • 7 ANDA approvals received during the quarter; 196 Cumulative ANDA approvals.

API Business

  • API business at Rs. 289 Crores for the quarter.

The summary of Total Revenue is as under:                                                   (Rs in Crores)

Particulars Q3 FY24 Q3 FY23 % Change 9M  FY24 9M  FY23 % Change
Formulation            
  India                             596 545 9% 1697 1573 8%
  USA

  Ex- US

474

272

432

206

9%

32%

1308

790

1218

602

7%

31%

API 289 326 (11%) 916 853 7%
Total 1631 1509 8% 4712 4246 11%

Mahindra Finance Q3 FY24 results

Mumbai, January 30, 2024: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services in the rural and semi- urban markets, at its meeting held today, announced the unaudited financial results for the quarter ended December 31, 2023.

Standalone:

Key Highlights: Steady performance for the quarter & YTD

  • Leadership position maintained in Tractors, Pre-owned vehicles, Passenger vehicles, and Three-wheelers.
  • Asset growth momentum resilient with Loan Book* at Rs. 97,048 crores… YoY á 25.5%
  • Improved NII margins… QoQ á 6.8% vs 6.5%
  • Improving Asset Quality Trend… GS2%+GS3% ~10%

o   Stage-3 @4% (vs. 4.3% in Sep-2023)

  • Credit Cost improvement… QoQ â 1.2% vs 2.4%

o   On track to achieve 1.5% – 1.7% for FY24

  • Capital Adequacy healthy at 18.3% – Tier-1 Capital @ 16.5%. Provision coverage on Stage 3 loans remained prudent at 62.7%.
  • Total liquidity buffer comfortable at ~Rs. 8,419 crores with a liquidity chest of over 2.5 months.

FY 2024 Q3/9M Standalone Results:

Q3FY24 Results (Rs. Crores) Q3 FY24 Q3 FY23 YoY % Q2 FY24 QoQ% 9M FY24 9M FY23 YoY %
Total Income (TI) 3,490 2,892 21% 3,240 8% 9,856  7,999 23%
Net Interest Income (NII) 1,815 1,650 10% 1,674 8% 5,164 4,757 9%
NII Margin (as % of Avg. Total Assets) 6.8% 7.4% 6.5%   6.7% 7.6%  
Pre-Provisioning Operating Profit (PPOP) 1,062  998 6% 943 13% 3,005   2,808 7%
Credit Costs 328   155 112% 627 -48% 1,481 999 48%
Credit Costs (as % of Avg. Total Assets) 1.2% 0.7% 2.4%   1.9% 1.6%  
Profit After Tax 553  629 -12% 235 135% 1,141  1,300 -12%
ROA (as % of Avg. Total Assets) 2.1% 2.8% 0.9%   1.5% 2.1%  
       
Disbursements 15,436 14,467 7% 13,315 16% 40,916 35,764 14%
Gross Loan Book (YTD) 97,048 77,344 25% 93,723 4%      

Note: During the current quarter, MMFSL updated the ECL model for its retail vehicle loans by including multi-factor macro-economic variables and product classification of loan portfolio. As a result, the Provision towards ECL on financial assets for the quarter and 9m ended 31 Dec 2023 is lower by Rs.86.06 crores.

 Operations:

The quarter witnessed broad-based growth with a recorded disbursement of Rs. 15,436 crores. Year-to-date (YTD) disbursement until December 2023 reached Rs. 40,916 crores, indicating a 14% year-on-year growth. This positive trend in loan growth contributed to the expansion of business assets, now standing at Rs. 97,048 crores. This marks a 25% growth since December 2022.

The collection efficiency for the quarter is recorded at 95%, similar to levels observed in Q3 FY23 and marginal reduction over Q2 FY24. During the quarter, the Company has seen further improvement in its asset quality, with stage 3 assets at 4.0% (vs. 4.3% as of September 2023 and 5.9% as of December 2022). Stage 2 at around 6% (vs. 5.8% as of September 2023 and 8.4% as of December 2022).

To diversify within the Vehicle Finance book, the Company has been investing in used vehicle finance. The company already has 2 partnerships that are steadily growing, namely, ‘car&bike’ and ‘CarDekho’. The disbursements for used vehicles finance have grown 19% YTD until December 2023. The used vehicle finance share in disbursements now stands at 17% YTD December 2023, versus 16% for the same period last year.

Partnerships will play an important role in achieving Company’s vision of providing financial solutions to Emerging India. As on date, the Company has already tied up with 2 large commercial banks, namely SBI and Bank of Baroda and recently with Lendingkart, an NBFC. It also has tie-ups with IPPB (India Post Payments Bank) and CSC (Common Service Centres by Ministry of Electronics and Information Technology) for lead generation. These partnerships will allow the Company to expand its distribution and maximise the fee income potential over the next 2-3 years.

Amidst sustained profitable growth and a strong balance sheet, our capital adequacy remains robust, currently standing at 18.3%. Additionally, we hold a comfortable liquidity position, with a liquidity chest of over 2.5 months.

In a strategic move to further enhance our offerings, we have unveiled plans to enter the insurance sector through partnerships with a few insurance providers, acting as a corporate agency. Initial investments will be directed toward technology, manpower, and certification. The shareholders have approved necessary changes to the Company’s charter (Memorandum of Association) and the Company will now progress to make an application to the Insurance Regulator (IRDAI) for its approval.

Digital transformation is a key transformational metric for Mahindra Finance. The objective is to delight the customer with the most seamless experience, ensure fastest turnaround time, more DIY journeys across our products. In addition, the transformation has a huge focus on data and the power of AI/ML and analytics to drive that customer experience through hyperpersonalization, drive asset quality and improve underwriting. Employee experience is also at the core of this transformation. The Company is progressing well on this journey and many of these initiatives will land in Q4 FY24 and Early FY25.

Consolidated:

FY 2024 Q3/9M Consolidated Results:

Q3FY24 Results (Rs. Crores) Q3 FY24 Q3 FY23 YoY % Q2 FY24 QoQ% 9M FY24 9M FY23 YoY %
Total Income (TI) 4,137   3,353 23%   3,863 7% 11,637 9,296 25%
Profit After Tax 623 664 -6% 287 117% 1,272 1,396 -9%
Disbursements    17,048   14,911 14% 13,881 23% 44,587     37,028 20%

Subsidiaries:

Mahindra Rural Housing Finance Limited (MRHFL)

During the quarter ended December 31, 2023, MRHFL registered income of Rs. 311 crores as against Rs. 338 crores during the corresponding quarter last year, a decline of 8% over the same period previous year. The Profit After Tax (PAT) registered was Rs. 13.4 crores during the quarter ended December 31, 2023, as against Rs. 14.2 crores during the corresponding quarter last year a decline of 5.3% over the same period previous year.

Mahindra Insurance Brokers Limited (MIBL)

During the quarter ended December 31, 2023, MIBL registered income of Rs.330.8 crores as against Rs.123.0 crores during the corresponding quarter last year, a growth of 169% over the same period previous year. The Profit After Tax (PAT) registered was Rs.43.5 crores during the quarter ended December 31, 2023, as against Rs.13.4 crores during the corresponding quarter last year a growth of 225% over the same period previous year.

Mahindra Manulife Investment Management Private Limited (MMIMPL)

During the quarter ended December 31, 2023, MMIMPL registered income of Rs. 16.6 crores as against Rs. 12.0 crores during the corresponding quarter last year, a growth of 38% over the same period previous year. The Company incurred a loss of Rs. 6.3 crores during the quarter ended December 31, 2023, as against loss of Rs. 7.2 crores during the corresponding quarter last year, a decline in loss by 14% over the same period previous year.

The Average Assets under Management (AUM) of MMIMPL for the quarter ended December 31, 2023, was Rs. 15,321 crores across 21 schemes, an increase of 65% over the same period previous year. Of these assets, the Company managed Rs. 13,554 crores of average equity assets in the quarter ended December 31, 2023, a growth of 72% compared to 7,865 crores in the same period last year.

Mahindra Manulife Trustee Private Limited (MMTPL)

During the quarter ended December 31, 2023, MMTPL registered income of Rs. 0.3 crore as against Rs. 0.2 crore during the corresponding quarter last year, a growth of 72% over the same period previous year. The Profit After Tax (PAT) registered was Rs. 0.1 crore during the quarter ended December 31, 2023, as against no profit / no loss position during the corresponding quarter of last year.

Mahindra Ideal Finance Ltd (MIFL)

During the quarter ended December 31, 2023, MIFL registered income of LKR 569 Million as against LKR 491 Million during the corresponding quarter last year, registering a growth of 16% over the same period previous year. The Profit After Tax (PAT) during the quarter ended December 31, 2023, was LKR 24 Million as against LKR 14 Million during the corresponding quarter last year, a growth of 69% over the same period previous year.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended December 31, 2023, MFUSA registered income at USD 20.6 Million as against USD 16.8 Million during the corresponding quarter last year, registering a growth of 22% over the same period previous year. The Profit After Tax (PAT) during the quarter ended December 31, 2023, registered was USD 3.9 Million as against USD 2.7 Million during the corresponding quarter last year, registering a growth of 44% over the same period previous year.

* LKR Closing Exchange Rate: 1 LKR = 0.2568 INR; USD Closing Exchange Rate: 1 USD = 83.15 INR