2 COMPANIES | 4 JANUARY 2020 1 >

THE TOP FIVE: WORLD’S SAFEST Verdict on AND MOST PUNCTUAL AIRLINES In ~13,572-cr deal, Adani buys Tata-Mistry case won’t 75% in be changed, Could now set eyes PRIVATE PORT The world’s safest and most punctual airlines are in the on NCLT-listed Dighi PLAYERS says NCLAT Asia Pacific region. Qantas Airways was named safest   Capacity FY19 RUCHIKA CHITRAVANSHI airline in the world on a top-20 list published by Port, say analysts (Figures in mt) AirlineRatings.com. AirlineRatings.com said it took New Delhi, 3 January 395 into account factors, including audits by governing and ADITI DIVEKAR Adani Ports 208 industry bodies, crash and serious incident record, Mumbai, 3 January The National Company Law profitability, and fleet age. 110 Appellate Tribunal (NCLAT) on dani Ports and Special EssarPorts 50 Friday reserved its order on a Economic Zone (APSEZ), one petition of the Registrar of THE SAFEST ON-TIME 113 A of the country’s largest private JSW Infra Companies (RoC), Mumbai, AIRLINES AIRLINES port operators, on Friday announced NA seeking to remove adverse obser- acquisition of 75 per cent stake in Notes: Major and private ports vation in its judgment in the Tata 1 Qantas Only one US carrier made capacity is estimated at 2,000 Andhra Pradesh-based Krishna- mt and FY19 saw total cargo Sons versus Cyrus Mistry matter. (Australia) the list in 2019 patnam Port Company for an volume of 1,280 mt, according The two-judge Bench, headed to industry estimates 2 Air New Zealand Airlines Country Punctuality (%) enterprise value of ~13,572 crore. by Justice S J Mukhopadhaya, said (New Zealand) The proposed acquisition is the it would not change its judgment in Garuda Indonesia 95.01 largest by APSEZ so far and would be ADANI PORTS’ DEBT SITUATION the matter, but it would clarify that 3 EVA Air Copa Panama 92.01 funded through internal accruals and Total debt (~ cr) (LHS) Debt/PBIDT (RHS) , CEO, Adani Ports SEZ the observations in the verdict cast (Taiwan) Skymark Japan 90.12 existing cash balance, the Gautam 32,000 12.0 no aspersions on the RoC. Adani-led company said in an “GIVEN THE BEST In the December 18 order, the 4 Etihad Hawaiian US 87.4 3.3 (UAE) exchange filing. 9.9 IN-CLASS NCLAT had passed serious stric- Latam Chile 86.41 “This acquisition would acceler- 24,000 4.2 3.4 2.8 9.0 tures against the RoC, stating that 5 Qatar Airways ate our stride towards FY25 vision of AND THE DISTINCT Tata Sons had hurriedly changed 3.9 (Qatar) Source: Bloomberg handling 400 million tonnes (mt) its status to a private company from cargo. Given the best-in-class infra- HINTERLAND CATERED public “with the help of the RoC”, 16,000 6.0 structure and the distinct hinter- 3.6 BY KRISHNAPATNAM which was illegal. 4.3 land catered by Krishnapatnam 3.9 Mukhopadhaya said the word 3.4 PORT, THIS ACQUISITION IN BRIEF Port, this acquisition will increase 3.3 3.3 2.5 ‘hurriedly’ in the order refers to the our market share to 27 per cent 8,000 3.0 WILL INCREASE OUR company and not to RoC. (from current 22 per cent),” Karan MARKET SHARE TO 27% “Our order was not passed with any Missed debt payment because Adani, chief executive officer of 1,282 mala fide intention, and it doesn't 2,068 2,896 3,592 17,565 11,617 12,976 17,773 22,342 22,214 22,112 27,446 APSEZ, was quoted as saying. 0 3,767 0 (FROM 22%)" cast any aspersions on the RoC,” govt delayed rent: Peninsula Since the acquisition is subject to FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 he said. regulatory approvals, the transaction Compiled by BS Research Bureau Source: Capitaline The appellate tribunal said it Peninsula Land, an Indian property is expected to be completed in 120 would clarify that RoC was only fol- developer, blamed overdue rent from days, said the exchange filing. which handled 54 mt in FY19. enhancement plans over the next few Ports’ logistics arm Adani Logistics lowing the order of the NCLT in the central government for missing a The credit metrics of APSEZ con- “We expect the port to grow to 100 years would also include inorganic that did the stake buy. After this conversion of the company from ~2.35 crore ($330,000) debt payment. solidated are not expected to change mt in around seven years and expect growth route, Adani Ports’ net acquisition, brokerages are of the view public to private entity. “We won't It couldn’t pay State Bank of on with this transaction and the net the Ebitda to double in around 4 debt/Ebitda has been on a roller- that the company would set its eyes change the judgment. However, time because tax departments, which debt/Ebitda, including Krishna- years,” said the company. coaster ride in the past few years, on the National Company Law since the RoC was never a neces- had leased office space from patnam Port, in FY21 is seen at around With this acquisition, the compa- though it is at a comfortable position Tribunal- (NCLT-) listed Dighi port, sary party, we have no jurisdiction Peninsula, were delaying rent 3.2x, which is in line with the pre- ny has strengthened its position on at present, keeping enough room for which will give the pres- to cast any aspersions over them,” payments, the company said in a filing acquisition of net debt/Ebitda of 3.1x the east coast of India. Adani Ports is more deals. ence in . Justice Mukhopadhaya said. on Thursday. The loan used rent receipts as collateral, a facility in FY19, the company said. operating Ennore and Kattupalli Last week, Adani Ports forayed “Dighi looks like Adani Ports’ The RoC counsel told the appel- where the rent often goes straight to the bank rather than to As of March 31, 2019, debt at (), Vizag (Andhra into cold chain logistics via acquisi- next acquisition as it will give it pres- late tribunal that the judgment was the property owner, it said. Peninsula used its own resources Krishnapatnam Port stood at ~6,000 Pradesh), and Dhamra () ports tion of 40.25 per cent stake in ence in Maharashtra,” said a Mumbai- highly critical of the RoC and to pay the loan and “regularised” the account, the company core. CVR Group-promoted Krishna- and terminals on the east coast. Snowman Logistics from promoter based analyst on the condition of deems them to have done illegal said, in a bid to ease concerns among investors grappling with patnam Port is a multi-cargo facility, Making it clear that its capacity Gateway Distriparks. It was Adani anonymity. acts whereas they were merely fol- a credit crisis that’s hit some property developers hard. The lowing orders of the NCLT while government is poised to miss its fiscal revenue-collection converting the company from pub- targets and exceed its Budget deficit goal as Asia’s third- lic to private. largest economy founders. “Lately, there have been delays “These are our findings, if you in the payment of rent by the government of India which, in Committed have a problem with the operative turn, resulted in delay in payment to SBI on the due date,” JSPL aims to be debt-free by 2023 part of the order, you can approach Peninsula said. BLOOMBERG< to grow the the Supreme Court,” the NCLAT SHREYA JAI with SAIL, on quantity and pricing. chairperson said. New Delhi, 3 January Sharma is hopeful of new business right way, The RoC told the tribunal that Dr Reddy's gets ICRA maintains coming their way with the Centre the current Companies Act does (JSPL) is aim- announcing $102 trillion of National says Oyo not provide any subscription limit shareholders’ nod negative outlook on ing to become debt-free by 2023 and is Infrastructure Pipeline (NIP). “We will for a company to be determined as for amalgamation passenger vehicles banking on housing, real estate sector benefit from the all sectors which the NEHA ALAWADHI private. The law was amended to and mobility infrastructure such, as NIP focuses on roads, housing, New Delhi, 3 January bring about greater ease of doing Rating agency ICRA on Friday Railways, Metro, and freight corridors defence, and ,” he said. business. maintained a “negative” for growth. JSPL, however, will not invest in Oyo on Friday responded to In its petition, the RoC had said outlook on the passenger V R Sharma, managing director of any new project. “We will not spend the New York Times piece there were some factual and legal vehicle and commercial JSPL, said the company was looking any further capital expenditure in any that reported irregularities errors in the judgment, and hence, vehicle segments while at 50 per cent demand growth coming green field project. The company is and dubious business prac- appealed to the appellate tribunal maintaining a "stable" from the housing segment. “With the sticking to its annual target of sur- tices at the firm that offers to amend the order so that it cor- outlook on the two-wheeler revival in the real estate sector and passing 6.5 mt of steel production and budget hotel rooms, saying it rectly reflected the conduct of the OEMs and tractor segments. reduction of rate of interest for hous- sale,” said Sharma. was committed to growing RoC, as not being illegal and acting The negative outlook on the ing sector, there will be a demand Saddled with debt of ~36,000 crore, the firm “the right way”. in accordance with the provisions Dr Reddy's Laboratories (DRL) PV sector was due to the uptick till June 2021. The industry is JSPL plans to reduce ~7,000 crore of “We work hard every day of the Companies Act 1956/2013. on Friday said it had slowing economic growth, expecting demand of 12 million debt every year. By 2023, JSPL aims to to ensure that our values are received shareholders’ nod for the sharp decline in tonnes (mt) of rebars in the coming be debt-free or left with a nominal upheld by thousands of com- proposed amalgamation of Dr wholesale despatches quarters,” said Sharma. Rebars are debt. “JSPL also expects to touch mitted employees around THE OBSERVATIONS Reddy's Holdings into the to destock dealership used in construction sector. “THE INDIAN RAILWAYS turnover of ~50,000 crore by 2023,” the world, and we are sub- The Bench The order company. The resolution for inventory as well as tepid JSPL, which signed up for an order IS IMPLEMENTING Sharma said. ject to regular external audits the scheme was approved by retail demand, ICRA for supply of 100,000 tonne of rails In August, JSPL sold off its to ensure proper compliance says it will was not REPLACEMENT OF CURRENT clarify that the passed with 99.98 per cent votes of the said in a release. PTI< from the Indian Railways, is hopeful TRACKS WITH HIGH-SPEED Botswana mine, one of its major and adherence to our code total 131 million votes were cast of demand growth of 25 per cent from international ventures, to Maatla of conduct. With regards to observations any mala fide by equity shareholders of the the national transporter. “The TRACKS. WE ARE DESIGNING Energy for $150 million. The sale was complaints of a small section in the verdict intention, and company, it said in a regulatory From Jan 8, Hotel Railways is implementing replace- SPECIAL PRODUCTS FOR part of the company’s plan to mone- of property owners in India cast no it doesn't cast filing. 21,026 votes, which Leelaventure to ment of current tracks with high- THE RAILWAYS AND ALSO tise its global assets to pare debt at whose payments are disput- aspersions on any aspersions accounted for the rest 0.02 per speed tracks. We are designing spe- METRO RAIL TRACKS” the group level. ed, multiple escalation mec- the RoC on the RoC cent, were posted against the be renamed HLV cial products for the Railways and also V R SHARMA The company has investment and hanisms exist and we con- resolution, it added. The voting the Metro Rail tracks,” Sharma said. business ventures in other Southern tinue to provide resolution,” was conducted according to The two new products in JSPL’s Managing director, JSPL African markets as well, such as said an Oyo spokesperson. the directions of the Hyder- catalogue are 1,080 grade head-hard- Mozambique, Namibia, Zambia, “We are also investing in abad Bench of the National ened or heat-treated rails and 1,175 Tanzania, and Madagascar. However, technology and in building Company Law Tribunal on grade head-hardened rails. The com- cured 100,000 tonnes of rails from with rising debt and global slowdown stronger partner support tea- November 22, 2019. PTI< pany said these are speciality prod- JSPL, the first from the private sector in the coal and steel market over the ms to ensure reconciliations ucts for high-speed tracks. in at least three decades. Early this past few years, JSPL is selling off its happen faster. We expect all “We are supplying to all Railways year, JSPL won another order, international ventures to reduce its hotel owners to partner in Birlasoft CFO Rajeev zones and also to the Eastern for ~665 crore from the Rail Vikas debt burden. Sharma however con- delivering superior guest Gupta resigns, to be Dedicated Freight Corridor. We will Nigam (RVNL, a company under the firmed the company is not looking to experience. We will also con- Hospitality company Hotel sign another agreement with the railways ministry) to supply hive off Oman steel plant, as it tinue to utilise the provisions relieved on March 31 Leelaventure on Friday said Railways soon for bulk supply of rails,” 89,042 tonnes of rails. remains a “cash cow” for JSPL. in our contracts that allow us They say if the parties have a IT firm Birlasoft on Friday said the company name had been Sharma said, adding the quantity and Traditionally, state-owned Steel JSPL owns and operates a 2 mt per to incentivise and recognise problem with the operative its Chief Financial Officer changed to HLV with effect price were being decided by the Authority of India (SAIL) had a annum Steel Melting Shop in Oman thousands of owners who part of the order, they can Rajeev Gupta had tendered from December 27, 2019. Railways. monopoly on supply to IR. The which is the country’s first and largest consistently deliver a high- approach the Supreme Court his resignation and would be "Stock Exchanges have The Railways had in 2018-19 pro- Railway Board signs an annual deal such plant. quality guest experience.” relieved of his duties at the noted the change of name of end of March. "...Rajeev the company from 'Hotel Gupta, CFO and key Leelaventure Limited' to 'HLV managerial personnel of the Limited' and the same will be company, has tendered his given effect from January 8, resignation dated January 3, 2020," the company said in a Rishad Premji set to be non-executive chairman at 2020 and he will be relieved regulatory filing. The from the duties effective memorandum and articles of DEBASIS MOHAPATRA continue as the executive chairman. market capitalisation of around ~1.45 trillion, March 31, 2020," Birlasoft said association of the company Bengaluru, 3 January In response to a mail sent by Business is India’s fourth largest IT services company. in a BSE filing. It, however, did stands amended pursuant to Standard, a company spokesperson said: The 42-year-old took over the reins of not specify any reasons for change of name of the Rishad Premji is likely to become the “Wipro will comply with all applicable chairmanship from his father and founder Gupta's resignation. PTI< company, it added. PTI< non-executive chairman at Wipro as the regulatory norms.” To boost corporate Azim Premji in July. Currently, Azim Premji Securities and Exchange Board of India’s governance, and his family own about 74 per cent stake (Sebi’s) directive on separation of chairman Sebi mandated a in the company. and CEO roles comes into effect from April 1. CHANGE OF GUARD separation in the After an MBA at the Harvard Business According to sources, Wipro’s board, roles of School, Rishad Premji worked with GE Reliance Infra’s debt which is scheduled to meet on January 14, is Wipro has already set a clear road chairperson and Capital and Bain & Co, before joining expected to take a decision in this regard. map in the wake up Sebi directive managing Wipro in 2007. He has performed multiple “The shareholder resolution brought out According to the June 6 AGM director. The roles at the firm, from heading investor stands at ~6,073 cr at annual general meeting (AGM) on June, notice, Rishad will move to directive also said relations to strategy, before taking over the 2019, is visibly clear. The company has spelt non-executive chairman’s role the chairperson chairmanship. on December 31, 2019. it out clearly that in view of the (Sebi) should be a non- Persons close to him said he is a quick Friday said its total financial The filing showed that the provisions, Rishad (Premji) will move to the The board meet on January 14 executive director decision-maker, who provides a strategic indebtedness stood at over total amount outstanding was role of non-executive chairman,” said is likely to take a decision in and not related to direction to Wipro in new business areas. ~6,000 crore at the end of ~4,597.06 crore. Amit Tandon, founder and managing this regard the managing They also said Rishad Premji’s move to a non- December 2019. “Of the total amount director of corporate governance and proxy Rishad's stepping into a director or the executive will not impact business The company has submit- outstanding, amount of advisory firm IiAS. “The IT firm has even non-executive role is unlikely to CEO of the operations, as he would continue to give ted to the stock exchanges a default as on date was spelt out what will be compensation in the impact Wipro's strategic direction company. strategic direction as chairman. “As a disclosure of defaults on pay- ~1,048.70 crore,” it added. non-executive role. So, unless there is any Once founder and voice of the industry (being the ment of interest/repayment The total financial indebted- change, he is likely to move to non-executive implemented, former chairman of Nasscom), his of principal amount on loans ness of the listed entity, chairman role.” Rishad Premji will experience and knowledge will come in from banks/financial institu- including short-term and The AGM notice sent out to shareholders be one of the youngest business leaders to handy to provide right direction to the tions and unlisted debt secu- long-term debt, was ~6,073.66 in June also said if the new directive didn't don the role of non-executive chairman at a Indian IT sector,” said Pareekh Jain, founder rities for the quarter ended crore, the filing said. PTI come to effect, Rishad Premji would large cap Indian company. Wipro, which has a of Pareekh Consulting.