FRIDAY CHENNAI ENTERPRISE 10 JANUARY, 2020 5 INBOX BIZ BYTES Muthoot Fincorp IT firms face a dull Q3 Shriram Transport Fin to raise Rs 480 cr u Declining growth & falling margins make it tough for cos bags Rs 3,556 cr | NT Bureau | Mumbai, Jan 10 (Agencies): ‘Growth at tier-I IT Advisory and Securities (India) New Delhi, Jan 10 (PTI): Chennai, Jan 10: Pvt. Ltd said in a note to clients Shares of Indian information companies in India that growth at tier-I IT compa- Shriram Transport Finance Muthoot Fincorp Limited re- technology (IT) services compa- nies in India is estimated to fall Company today said it has cently announced the launch nies have outpaced the broader to 8.6 per cent in Q3, from 10.1 raised $500 million (approxi- market in the past one year. This is estimated to fall to of fi fth Public Issue of Secured per cent in the preceding quar- mately Rs 3,556 crore) through is interesting for two reasons. Redeemable Non-Convertible ter. Of course, this includes a bond issue. The proceeds from One, their revenue growth rate 8.6% in Q3 from 10.1% Debentures (NCDs) to raise huge inorganic contribution to the bond would be used to gen- Rs 250 crore with an option to has been progressively coming revenues of HCL Technologies erate employment, the company retain over subscription up to down in the past three quarters. in the preceding quarter’ pany’s fortunes was to send the Ltd. Excluding the impact of ac- said in a regulatory fi ling. Shr- Rs 230 crore, aggregating to Rs Two, they didn’t benefi t from stock up 22.5 per cent in the past quisitions, growth is expected to iram Transport Finance Com- 480 crore. According to a press the corporate tax cut announced sults, Infosys will do well to clear 12 months, which is about three be lower at around 7 per cent for pany (STFC) said it has ‘suc- release, the funds raised will in September, while fi rms from times the rate at which the Nifty the air to investors’ satisfaction. the top four Indian IT companies. cessfully priced a $500 million primarily be used to augmentt many other industries did. To 500 index rose during the period. Undoubtedly, its shares will What’s more, profi t margins fi xed rate senior secured 144A/ he working capital and requi- say that IT stocks are running Clearly, the lack of decent invest- make up for the massive un- continued to be under pressure, Reg S bond for a 3.5 year tenor site lending. The company has ahead of themselves would be an ment options is resulting in dis- derperformance if the company although the year-on-year de- at 5.100 per cent’. STFC’s bond received board approval to raise understatement. proportionately high valuations manages to do so. While this is cline in margins will likely be transaction also marks the fi rst NCDs in the aggregate amounts The most stark example is that for quality names such as TCS. a company-specifi c issue, the lower in the December quarter international public social bond of upto Rs 900 crore. of Tata Consultancy Services Ltd TCS’s rival, Infosys Ltd, has overarching theme in Q3 results vis-à-vis Q2. Commenting on the proposed (TCS). The market leader’s reve- done better in recent quarters. is one of a further growth slow- According to Nomura’s esti- issuance from India, it stated. NCD issue, chairman - Mut- nue growth stood at 12.7 per cent Its growth stood at 11.7 per cent down. mates, margins for the top four ‘This marks the fourth suc- hootPappachan Group and in constant currency terms in the in the January-March quarter, ‘We believe moderation in rev- IT fi rms were estimated to drop cessful USD bond issuance by managing director - Muthoot- January-March quarter of 2019. and is expected to drop to a more enue growth is underpinned by 70 basis points cumulatively the company since the relaxa- Fincorp Limited, Thomas John Growth is estimated to fall to be- respectable 9 per cent in Q3. But sluggish growth in BFS (bank- in Q3, lower than the 160 basis tion in the external commer- Muthoot said, ‘Muthoot Fincorp low 6.8 per cent in the October- Infosys shares have risen only ing and fi nancial services), retail points drop reported in Q2. All cial borrowings (ECB) guide- has been doing well on the back December quarter, according to about 5 per cent in the past year. and manufacturing, high fur- said, with both revenue growth lines,’ it said. The bond got of a diversifi ed portfolio which analysts at Kotak Institutional The stock has been punished fol- lough activity and client-specifi c rates and margins declining, overwhelming response from is designed to meet needs of the Equities. lowing complaints of wrongdoing challenges for a few companies,’ profi t growth is likely to be weak investors, as per the fi ling. The customers. In-spite of the pre- The market’s response to this by anonymous whistle-blowers. Kotak’s analysts wrote in a note. for the Indian IT sector this re- shares of STFC were trading at vailing market conditions, the dramatic change in the com- While announcing its Q3 re- Analysts at Nomura Financial sults season. Rs 1,147.80 a piece on BSE. company has been experienc- ing a healthy demand for gold and MSME loans. On that ac- AWARDS & ACCOLADES count, we have decided to come Tata Steel production up with an NCD issue to help meet the company’s increasing working capital needs.’ volume climbs marginally Amazon India takes u Gains 1.8% to 4.46 mn tonnes in Q3 step to eliminate New Delhi, Jan 10 (PTI): plastics Tata Steel today said that its production volume in India reg- Amazon.in announced that istered a marginal 1.8 per cent it has accomplished its first increase to 4.46 million tonnes milestone towards elimina- (provisional) in the third quar- tion of single-use plastic from Chennai-based Oscar & Ponni Architects won two national awards ter of the ongoing fi scal. Its pro- its FulfilmentCentres (FC) in in Indian Building Congress in the categories of development of duction volume was at 4.38 MT India. New Greenfi eld Townships at function held in New Delhi recently. (actual) in the year-ago period, In September 2019, the com- Ponni Concessao and Oscar Concessao of Oscar & Ponni Architects the steel major said in a fi ling pany had announced their received the award from Minister for Housing, Urban Affairs & Civil to BSE. Aviation, Hardeep Singh Puri at Vigyan Bhawan. commitment to eliminate sin- Tata Steel India’s sales vol- ‘Tata Steel Europe’s 3QFY20 Domestic steel prices reached gle-use plastic from its fulfil- ume in the third quarter of the production and sales volume a nadir in October 2019 before ment network by June 2020 CORPORATE AFFAIRS ongoing fi scal increased by 17 was fl attish on QoQ basis. Tata improving from November on- and introduced paper cush- per cent quarter-on-quarter Steel South East Asia opera- wards. Steel prices are expect- ions into its packaging. (QoQ) with improved market tions registered lower produc- ed to improve with strong retail Accord- sentiment. Sales volume to tion volume QoQ due to contin- demand and ongoing restocking ing to a SBIA names former Google auto segment was maintained ued sluggishness in Singapore demand at the dealers’ ends, it press re- during the quarter, it said. The and Thailand markets,’ it said. said. Tata Steel Group is among lease, in branded product and retail seg- The Indian economy, it said, the top global steel companies a span exec as operating partner ment grew 23 per cent QoQ, remained weak with declining with an annual crude steel ca- of four New Delhi, Jan 10 (PTI): while industrial products and private consumption growth pacity of 33 million tonnes per months, projects grew 12 per cent QoQ. and low investment growth. annum. the company has success- SB Investment Advisers (UK) Ltd (SBIA) named former Google fully eliminated all the plas- executive Vikas Agnihotri as its fi rst operating partner in India. NAME CHANGE PUBLIC NOTICE tic dunnage and replaced it ‘To continue its expansion in India and bolster portfolio compa- 0,66,1* My client Mr.Rajaraman S/o. with paper cushion in its FCs nies, SBIA has announced the appointment of Vikas Agnihotri I, T. BHASKARAN, 0\ RULJLQDO 6DOH 'HHG'HHG Muthu, Hindu, aged 40 years, across the country. as its fi rst operating partner to foster closer connections with the S/o.Thangaiah, Date 'RFXPHQW 1R 652652 residing at No.9, Perumal Koil region’s technology ecosystem and the SBIA’s global network,’ a of Birth 19/11/1955, $PEDWWXU 6859(< 1R1R Vice president, Customer Street, Annanur, Chennai - 600 109. statement said. Agnihotri joins the company from Google, where 3DWWD 1R$ PHDVXULQJ DQDQ Fulfillment, Amazon India, residing at No.30, That the above said Mr.Rajaram he had a stint of about a decade in various leadership roles. H[WHQWRIVTIWSORWVLWXDWHGDW Akhil Saxena said, ‘The com- Vinobaji Nagar, 10th misplace the original registered In his last role, he served as the interim Country Head and Man- 7KLUXPXOODLYR\DO 9LOODJH $YDGL$YDGL plete elimination of plastic Street, Hasthinapuram document of the property of Plot aging Director of Indian operations. He is also on the board of Mo- 7DOXN :KLOH WDNLQJ D [HUR[ DWDW dunnage is a significant mile- Chennai - 600064, shall No-A, 3809 Sq.ft, Baimas No.41/1, bile Marketing Association, the Advertising Standards Council of 7KLUXPXOODLYR\DO0RRQGUX1DJDU stone for us in our journey henceforth be known as Survey No.71/5, Oragadam Village towards removal ofsingle-use India, and Internet and Mobile Association of India (IAMAI).