Plant capacity downgraded by 20 % due to wear & tear after just 10 years of operation – a rather strange kind of disclosure if only because I have not seen anyone else do it so far.

HMIL recently launched the EXTER and Grand i10 NIOS Hy-CNG Duo. with its catchy tagline “Space Bhi. Mileage Bhi.,”

Tarun Garg, Whole Time Director & Chief Operating Officer stated, “As a brand committed to delivering innovative and sustainable mobility solutions, we are thrilled to see the growing contribution of our CNG-powered powered vehicles, which accounted for 13% of our total sales in September 2024.” The introduction of Hy-CNG dual-cylinder technology has received very positive customer feedback, with the CNG powertrain’s contribution in the EXTER and Grand i10 NIOS rising to 25% and 20% respectively.”

The EXTER & Grand i10 NIOS Hy-CNG Duo are powered by 1.2 l Bi-Fuel (Petrol with CNG) engine paired with 5 Speed Manual Transmission delivering a mileage of 27.1 km/kg and 26.9 km/kg respectively (ARAI Tested). The company fitted CNG system which is strategically placed under the luggage board, bringing out the practical usage of the boot space and sufficing the travel needs of the customers.

Demerger:

• Splitting a company into two separate entities. Shareholders get shares in both companies.
• Shareholders keep their ownership in both the parent and new company.
• No new capital raised; focuses on restructuring.

IPO:

• Selling shares of a company to the public for the first time to raise capital.
• Existing shareholders may see their ownership percentage decrease as new shares are issued.
• Raises money from public investors for growth or debt repayment.

Tata Communications concall analysis (Q2 FY25)

1. Financial Performance:

   • Revenue: ₹5,767.4 crore, up by 18.4% YoY.
   • Net Profit: ₹223.3 crore, up by 1.3% YoY.
   • EBITDA margin: 19.4% for Q2 FY25.
   • The company saw revenue growth driven by its data and digital portfolio, with data revenue increasing by 21% YoY.
   • Digital services revenue surged 52.4% YoY to ₹2,221 crore, accounting for 46% of data revenue.
   • Core connectivity grew by 3% YoY to ₹2,613 crore.

2. Cost and Profitability:

   • Interest costs were higher due to increased short-term borrowings and changes in borrowing mix.
   • There was a one-off tax payout of ₹113 crore during the quarter.
   • Net debt as of 30th September 2024 stood at ₹10,483 crore, with a net debt to EBITDA ratio of 2.37x.
   • Free cash flow for the quarter was negative at ₹194 crore, mainly due to higher working capital requirements.

3. Operational Highlights:

   • IoT fabrics segment saw a growth of 58% YoY.
   • Order book increased by 25% YoY, with the international segment having the highest order booking in the last five years.
   • Cloud and security revenue remained flat sequentially, but saw positive momentum within the BFSI segment.
   • Tata Communication Transformation Services (TCTS) saw a revenue decline of 26.4% YoY due to the termination of a loss-making contract. However, EBITDA improved by 36.3% QoQ.

4. Strategic Initiatives and Outlook:

   • The company is focusing on organic and inorganic growth opportunities and has an active M&A pipeline.
   • It is investing in AI-cloud services, which are in the early stages of development.
   • EBITDA margins are expected to remain stable at ~20% for the rest of the year

This performance overview and strategic direction show Tata Communications’ continuous efforts in leveraging digital and cloud services while navigating financial and operational challenges.