Latest news with #HindujaGroup
Khaleej Times
5 days ago
- Business
- Khaleej Times
IndusInd Bank gets promoter backing amid financial recovery
In a move to restore confidence, IndusInd International Holdings (IIHL), the promoter of IndusInd Bank, has pledged to strengthen the bank's equity capital following scrutiny over accounting discrepancies in its derivatives trading. The assurance comes as the bank, which operates a representative office in Dubai catering to non-resident Indian (NRI) services, navigates a challenging period marked by a significant financial misstatement. Ashok P. Hinduja, chairman of IIHL, expressed unwavering support for the bank's leadership, stating, 'I have unequivocal trust in the chairman and board of directors for their swift and appropriate actions to address discrepancies and related concerns.' This commitment underscores IIHL's long-standing role as a steadfast supporter of IndusInd Bank over the past three decades. The IIHL, with significant shareholding from UAE-based residents, is backed by the Hinduja Group, a 110-year-old multinational conglomerate, with multiple business interest in the UAE and the Middle East. The group has topped the Sunday Times UK Rich List at £35.3 billion for the fourth successive year in 2025. In the UAE, the group has diversified business interests ranging from petrochemicals, and finance to bus/truck manufacturing. In Ras Al Khaimah, the group's Ashok Leyland operates a commercial vehicle assembling facility. The lender reported a profit of $309.5 million for the fiscal year 2025, a sharp 70 per cent decline from the previous year's $1.07 billion, primarily due to a $235 million hit from accounting irregularities in derivative transactions. On March 10, 2025, the bank disclosed the misstatement, which impacted 2.35 per cent of its net worth, equivalent to approximately Rs15.77 billion. The announcement triggered a 27 per cent plunge in the bank's stock price on March 11, erasing nearly Rs200 billion in market capitalization and leading to its inclusion in the Futures & Options (F&O) ban list. Despite the setback, the Reserve Bank of India (RBI) intervened to reassure stakeholders, affirming that IndusInd Bank remains 'well-capitalised' with a 'satisfactory' financial position. The RBI directed the bank's board to implement corrective measures, prompting a partial recovery in share prices. Data from the bank's latest financial disclosures indicate a capital adequacy ratio well above regulatory requirements, providing a buffer for operational stability. IIHL, which has 600 globally dispersed high-net-worth individual (HNWI) among its stakeholders, is poised for ambitious growth. The promoter aims to expand its Banking and Financial Services (BFSI) business to a $50 billion valuation by 2030 through strategic acquisitions in India, Europe, and the Middle East. This follows IIHL's recent $1.17 billion acquisition of Reliance Capital in India, signaling its intent to bolster its financial services portfolio. Hinduja emphasised IIHL's readiness to inject additional equity if needed for business expansion, stating, 'Though the bank's capital adequacy is healthy, we remain committed to supporting IndusInd Bank's growth.' He highlighted the board's remedial actions, which are expected to enhance transparency and governance, rebuilding stakeholder trust. 'The coordinated efforts of management, under the board's guidance, have ensured robust business health and sustained customer confidence,' Hinduja added. The RBI's orderly approach to addressing the issue has been praised, with Hinduja noting its history of providing effective guidance to the banking sector. As IndusInd Bank implements corrective measures, the promoter's backing and the regulator's oversight signal a path toward recovery. Hinduja described the situation as 'a new dawn with a sanitised slate,' positioning the bank to reclaim its longstanding reputation for reliability and trust in the financial sector.
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Business Standard
26-05-2025
- Automotive
- Business Standard
Ashok Leyland shares trade range-bound post Q4 results, declares 1:1 bonus
Ashok Leyland share price today Shares of Ashok Leyland, the Indian flagship company of the Hinduja Group, was trading range-bound in an otherwise firm market even as the company reported a stellar performance for the March 2025 quarter (Q4) and for the full financial year 2024-2025 (FY25). Ashok Leyland delivered the highest-ever quarterly and annual revenues, earnings before interest, taxes, depreciation and amortisation (Ebitda), and profit after tax (PAT). The board has approved the issue of bonus equity shares in the ratio 1:1. At 11:03 AM, Ashok Leyland shares were trading 0.67 per cent lower at ₹238 as compared to 0.51 per cent rise in the BSE Sensex. The stock opened 1.5 per cent higher at ₹243.15 on the BSE, before touching a low of ₹237.10 in the intraday trade. The counter is seeing huge trading volumes, with a combined 9.46 million equity shares having changed hands on the NSE and BSE thus far in the session. Ashok Leyland bonus shares news The board of Ashok Leyland has approved the issue of bonus equity shares in the ratio 1:1 i.e. one equity shares of ₹1 each for every one full paid-up equity share of ₹1 each held by the shareholders of the company as on the Record Date. The bonus issue of shares will be subject to the approval of shareholders. Ashok Leyland Q4 results Ashok Leyland reported a 38.4 per cent year-on-year (Y-o-Y) rise in standalone net profit at ₹1,246 crore for Q4FY25, compared to ₹900.41 crore in the same period last year. Revenue from operations rose 5.68 per cent Y-o-Y to ₹11,907 crore as against ₹11,267 crore posted in Q4FY24. The company's Ebitda rose 12.5 per cent Y-o-Y to ₹1,791 crore in Q4FY25, compared to ₹1,592 crore in the corresponding quarter of the previous fiscal. The Ebitda margin expanded by 90 basis points Y-o-Y to 15.04 per cent in Q4FY25, compared to 14.13 per cent in Q4FY24. Management Commentary The overall Commercial Vehicle (CV) volumes at 195,093 units were very close to the previous high of 197,366. Medium and Heavy Commercial Vehicles (MHCV) buses recorded the highest-ever volume of 21,249 units during the year. Export volume was also one of the highest in many years at 15,255 units, registering a growth of 29 per cent over PY (11,853 units). The Power Solutions and Defence Businesses also posted impressive growth. The robust performance was driven by exceptional contribution from all business segments and well supported by the subsidiaries. The company expects high margin non-cyclical business to continue to grow faster. Besides, the defence order book is at an all-time high and the management is very confident of revenue doubling over the next 2- 3 years. Q1FY26 MHCV volumes might see a decline on a high base, while volume growth is expected from Q2FY26 onwards mainly on account of a favourable base. The company is in a very strong cash position, ending the year with a cash surplus of ₹4,242 crore. "This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are continuing on our premiumization journey with high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realization," the management said. UBS on Ashok Leyland Q4FY25 was another strong quarter for Ashok Leyland with Ebitda beating UBS' and consensus by 1 per cent – 5 per cent. With 2W/cars volume growth moderating and competitive intensity high, MHCV industry is seeing some volume acceleration with strong pricing power considering the duopolistic nature. The MHCV industry has seen a paradigm shift with significant smoothening in cyclicality and operating margins moving to a much higher band. This can already be seen in the current industry down-cycle over FY23-25 where in MHCV truck volume declined mere 10 per cent from peak {vs 50-70 per cent decline in past 3 down-cycles) and Ebitda margins expanding significantly by 460bps to 12.7 per cent for Ashok Leyland. The brokerage, therefore, reiterated its case of re-rating for the MHCV industry. It maintained a 'Buy' rating with a higher share price target of ₹295 (₹285 earlier). ICICI Securities on Ashok Leyland The company maintained a solid 30 per cent plus market share in the domestic M&HCV segment and saw a robust growth in exports (up 29 per cent annually) and non-CV businesses like spares and engines. Operational efficiency improved significantly, reflected in a cash surplus of ₹4,242 crore, enabling strategic investments in product innovation and EVs. The company launched six new products across segments and continued its focus on premiumization and cost leadership. Its EV subsidiary, Switch India, turned Ebitda positive with strong momentum, while the restructuring of Switch UK aims to reduce losses. The management remains optimistic about FY26E, expecting growth across all CV segments, supported by favourable macro conditions, infrastructure push, and rising fleet replacement demand. About Ashok Leyland Ashok Leyland, flagship of the Hinduja group, is the second largest manufacturer of commercial vehicles in India, the fourth largest manufacturer of buses in the world, and the nineteenth largest manufacturer of trucks. Headquartered in Chennai, nine manufacturing plants gives an international footprint – 7 in India, a bus manufacturing facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with the Alteams Group for the manufacture of high-press die-casting extruded aluminium components for the automotive and telecommunications sectors, Ashok Leyland has a well-diversified portfolio across the automobile industry.
Time of India
26-05-2025
- Automotive
- Time of India
Ashok Leyland shares in focus after Q4 profit jumps 38% YoY to Rs 1,246 crore
Ashok Leyland shares will be in focus on Monday after the company reported a 38% year-on-year (YoY) rise in standalone net profit for Q4FY25 to Rs 1,246 crore, up from Rs 900 crore in the same period last year. The company's revenue from operations was up by 6% to Rs 11,907 crore over Rs 11,267 crore reported in the corresponding quarter of the last financial year. Sequentially, profit after tax (PAT) grew 63% from Rs 762 crore in Q3FY25, while revenue increased 26% from Rs 9,479 crore in the October–December quarter. The Hinduja Group's flagship said it delivered its highest-ever quarterly and annual revenues and EBITDA. For Q4FY25, EBITDA grew 15% to Rs 1,791 crore from Rs 1,592 crore in the year-ago period. For the full financial year, PAT jumped 26% YoY to Rs 3,303 crore in FY25 from Rs 2,618 crore in FY24. Revenues saw a marginal uptick of 1% to Rs 38,753 crore versus Rs 38,367 crore in FY24. Live Events The company's board has approved the issue of bonus equity shares in the ratio 1:1. The company will inform the record date in due course. Also Read: High conviction picks! ICICI Bank, HAL among 10 large-cap stock ideas from PL Capital Management commentary Dheeraj Hinduja, Chairman, Ashok Leyland said that achieving record-breaking numbers is a matter of immense pride for the company, adding that it reflected the resilience of our business. "With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth,' he said. Ashok Leyland share price target According to Trendlyne, the average target price for Ashok Leyland stands at Rs 256, implying an upside of nearly 7% from current levels. Among the 37 analysts covering the stock, the consensus rating is 'Buy'. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
India.com
24-05-2025
- Business
- India.com
Bombs, guns and a Rs 2000 crore mega deal in...: Meet unknown heroes who saved Anil Ambani's bankrupt business empire; read the inside story
Anil Ambani (File) The year 2020 was a difficult period for everyone across the globe as the Covid-19 pandemic had essentially shut down the world, crippling economies, and bringing world governments to its knees. But apart from the pandemic, the year presented a different threat to Anil Ambani– the younger brother of Asia's richest man Mukesh Ambani– as the Indian industrialist stood at the verge of bankruptcy due to failing businesses and mounting debts. When Anil Ambani declared bankruptcy Chinese banks sued Anil Ambani for failing to repay a Rs 5000 crore loan in London court. Ambani appeared in the court in an online trial and declared he was bankrupt, stating that he did not even have enough money to hire a lawyer, and his wife and son are bearing his daily expenses. Fast-forward five years and today Anil Ambani is making a triumphant comeback in the business world, with many of his companies now debt-free and earning significant profits. But Ambani did not achieve this revival alone, but with the help of two men who essentially brought his Reliance Group business empire back from the dead. Let us find out who these unsung heroes are: How Anil Ambani's sons powered Reliance Group revival? The remarkable comeback story of Anil Ambani was powered by none other than his two sons, Jai Anmol Ambani, and his younger brother, Jai Anshul Ambani. The two brothers, who joined their father's business when everything was going downhill, have revived the Reliance Group with their sharp business acumen. Jai Anmol and Jai Anshul have taken up leadership roles within the indebted Reliance Group, and have helped the Anil Ambani-led company to secure new deals, and cut down the mammoth debt faced by many of the group's companies. Anil's elder son, Jai Anmol Ambani, attempted a revival of Reliance Capital, but despite his best efforts, could not save the debt-ridden firm from going bust and being taken over Hinduja Group's IndusInd International Holdings Ltd (IIHL). On the other hand, Jai Anshul Ambani, the younger son of Anil Ambani, is assisting the Reliance Group in two new ventures, Reliance Nippon Life Insurance, and Reliance Capital Asset Management. While Anshul is still learning the ropes, and steadily becoming more active in the business, his older sibling, Jai Anmol Ambani, who stepped in the business at the age of 18, is emerging as a veteran businessman, shows all signs of being ready to step in his father's shoes and manage, and revive the debt-ridden business empire. Reliance Group signing mega deals under Jai Anmol and Jai Anshul Ambani During recent months, Reliance Group, now under the leadership of Anil Ambani's sons, has taken giant strides towards making the conglomerate profitable again. The once-crumbling business empire of Anil Ambani has cut down debts of many of its companies, and reduced losses, thus attracting new orders as well as potential investors. Recently, Reliance Group acquired a Rs 2000 crore contract for a setting up a solar project in Bhutan, while Reliance Defence– a subsidiary of Anil Ambani-led Reliance Infrastructure Limited– has signed a deal with German arms maker Rheinmetall AG to manufacture ammunition.
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Business Standard
23-05-2025
- Automotive
- Business Standard
Ashok Leyland posts record Q4 profit, plans ₹1,000 crore FY26 capex
Commercial vehicle major Ashok Leyland, the Indian flagship of the Hinduja Group, has posted its highest-ever quarterly and annual revenue, EBITDA and net profit during the fourth quarter of financial year 2024–25, at ₹1,130.09 crore — up 32 per cent from ₹853.41 crore in the same quarter last year (Q4FY24). The company's consolidated revenue from operations rose 9 per cent to ₹14,695.65 crore during the quarter under review, from ₹13,542.37 crore in Q4FY24. For the full financial year 2024–25, the company reported a net profit of ₹3,100.8 crore, up 25 per cent from ₹2,483.5 crore in FY24. Annual revenue rose 6 per cent to ₹48,535.14 crore, from ₹45,703.34 crore in FY24. Ashok Leyland has lined up a capital expenditure of around ₹1,000 crore for FY26 — similar to the previous year — and expressed optimism about the current fiscal. Its electric vehicle arm, Switch Mobility, is expected to achieve breakeven in FY26. 'Achieving these record-breaking numbers reflects the resilience of our business and the trust our customers place in us. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth,' said Dheeraj Hinduja, Chairman, Ashok Leyland. 'We have a net cash surplus of ₹4,242 crore now, compared to a debt of ₹89 crore during the same time last year. Hence, we have some aggressive plans on product technology and after-sales, as the company is in a better financial position. We would like to have more value addition in our products,' said Shenu Agarwal, Managing Director and Chief Executive Officer. The company's board of directors has approved two interim dividends — ₹2 per equity share in November 2024, and ₹4.25 per share on 16 May 2025. The total dividend for the year amounts to ₹6.25 per share. The board has also approved the issue of bonus equity shares in the ratio of 1:1. 'We are quite optimistic about FY26. We also think that the bus industry has hit pent-up demand. The lowering of interest rates also helped the industry,' Agarwal added. Ashok Leyland's EBITDA for FY25 stood at 12.7 per cent (₹4,931 crore), compared to 12 per cent (₹4,607 crore) in the previous year. The overall commercial vehicle (CV) volumes for FY25 stood at 195,093 units, close to the previous high of 197,366 units. Medium and heavy commercial vehicle (MHCV) buses recorded their highest-ever volume at 21,249 units. Export volume was also among the highest in many years at 15,255 units — up 29 per cent from 11,853 units in the previous year. The Power Solutions and Defence businesses also posted strong growth. The robust performance was driven by exceptional contributions across all business segments, well supported by subsidiaries. 'FY25 has been another landmark year for us. We've set new records in revenue, EBITDA and profitability. Our margin expansion and robust cash generation reflect the strength of our operations. It also gives us immense satisfaction to achieve our medium-term goal of mid-teen EBITDA in Q4. We are continuing on our premiumisation journey with a high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realisation,' said Agarwal.
