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Economic Times
2 days ago
- Business
- Economic Times
Early retirement: How financial planning helped this seasoned market veteran retire early at 55
ET Bureau Ajit Menon, CEO of India's 25th largest mutual fund house PGIM At 55, CEO of India's 25th largest mutual fund house PGIM, Ajit Menon is walking away from a successful career managing Rs.26,693 crore in assets—not because he has to, but because he planned to. His secret weapon? A 12-year partnership with a financial adviser helped map his path to early retirement. Here's why even seasoned market veterans need someone to dispassionately do their wealth planning. Yes. I am simply following our family's financial plan, which we began with our adviser about 12 years ago. I now want to focus more on retail brand building and retirement, while making time for family and personal interests. Was early retirement always a goal, or did it evolve? It evolved. As a CEO of a mutual fund company, you had deep knowledge of markets—why did you still choose to work with a financial adviser? Health and wealth are two areas where we tend to be emotionally invested. Surgeons are not allowed to operate on near and dear ones for the risk of making an error due to being emotionally invested. Similarly, you could make errors of judgment in managing your own money, regardless of how skilled you are. That's why working with a trusted, qualified adviser is often the wiser choice. What surprised you the most about the financial planning process when you became the client? Did a planner uncover any blind spots in your financial behaviour, despite your own professional expertise? Yes. Selecting the proper health and life insurance solutions, factoring in commute time in our buy-versus-rent decision, and providing for pension for our long-time housekeeper from my wife's income. More innovative use of credit card spending and using forex cards, optimising for tax, writing a comprehensive will, and all of these added tremendous value to feeling more confident. Can you share one key advice your financial planner gave you that made a difference? To consider what will keep us happy, not happier. That's a comparison trap with no end. Setting expectations in a way that helps prevent our financial goal posts from shifting made a difference. Were there moments when your professional knowledge conflicted with your adviser's recommendations, and how did you handle those situations? Not in our case. When your adviser is dealing with hundreds of households that have similar hopes, dreams and challenges, that experience has practical applications that help sharpen solutions compared to conventional knowledge. What habits or disciplines helped you the most in building long-term wealth? Trusting the process of the financial plan. Keeping track of the oversized items on the budget. Not second-guessing product choices allocated for each goal. Letting equity investments compound without interruptions. How did you prepare your family for this transition—financially and mentally? My wife, Alinaa, has been involved in the process, as her income is allocated across various goals. My brother and my adviser are the executors and witnesses to our will. My parents are aware of the details of my financial plan and are pleased that I will have time away from my busy schedule. What does the next decade look like for you? Are there new passions you're exploring? Yes. From helping a local community around a farm land we own to pursuing my creative passions, there is much to do. If you could go back to your 40-yearold self, what financial or life advice would you give? You should have appointed your adviser earlier. Use the top-up SIP (systematic investment plan). Read more. Meet more people. How do you think retirement—and financial independence—will look different for the next generation of leaders? The next generation prioritises health significantly better than the previous one. That's the first step to being sorted on most challenges, including financial ones. How do you define 'enough'—and does that evolve over time? It does, but the first step of budgeting is key. Aiming for happiness, rather than being overly happy, helps. Looking back, which decisions or strategies are you most proud of, and which would you approach differently today? I married my best friend. She is my most significant support. In hindsight, the best strategy. Having a good adviser is a close second. And I would guard against concentration, in real estate or equity. PGIM evolved into a respected fund house after the DHFL crisis. How did you manage the ups and downs? We focused on transparency, clear differentiation, and knowing what not to do. Our launches are built for the long term—and all are growing. Talented colleagues and a work culture that values diverse opinions and flexibility helped immensely. No trending terms available.
Time of India
4 days ago
- Business
- Time of India
Early retirement: How financial planning helped this seasoned market veteran retire early at 55
At 55, CEO of India's 25th largest mutual fund house PGIM, Ajit Menon is walking away from a successful career managing Rs.26,693 crore in assets—not because he has to, but because he planned to. His secret weapon? A 12-year partnership with a financial adviser helped map his path to early retirement . Here's why even seasoned market veterans need someone to dispassionately do their wealth planning. You are retiring at 55, a relatively early age by corporate standards. Was this a calculated decision rooted in a financial plan? Yes. I am simply following our family's financial plan, which we began with our adviser about 12 years ago. I now want to focus more on retail brand building and retirement, while making time for family and personal interests. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM MCA Data Science MBA Data Science Digital Marketing Technology Others Operations Management Public Policy CXO Design Thinking Cybersecurity Degree Product Management Data Analytics Healthcare healthcare Leadership Management Finance Project Management Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details Was early retirement always a goal, or did it evolve? It evolved. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » As a CEO of a mutual fund company, you had deep knowledge of markets—why did you still choose to work with a financial adviser? Health and wealth are two areas where we tend to be emotionally invested. Surgeons are not allowed to operate on near and dear ones for the risk of making an error due to being emotionally invested. Similarly, you could make errors of judgment in managing your own money, regardless of how skilled you are. That's why working with a trusted, qualified adviser is often the wiser choice. What surprised you the most about the financial planning process when you became the client? Did a planner uncover any blind spots in your financial behaviour, despite your own professional expertise? Yes. Selecting the proper health and life insurance solutions, factoring in commute time in our buy-versus-rent decision, and providing for pension for our long-time housekeeper from my wife's income. More innovative use of credit card spending and using forex cards, optimising for tax, writing a comprehensive will, and all of these added tremendous value to feeling more confident. Can you share one key advice your financial planner gave you that made a difference? To consider what will keep us happy, not happier. That's a comparison trap with no end. Setting expectations in a way that helps prevent our financial goal posts from shifting made a difference. Were there moments when your professional knowledge conflicted with your adviser's recommendations, and how did you handle those situations? Not in our case. When your adviser is dealing with hundreds of households that have similar hopes, dreams and challenges, that experience has practical applications that help sharpen solutions compared to conventional knowledge. What habits or disciplines helped you the most in building long-term wealth? Trusting the process of the financial plan. Keeping track of the oversized items on the budget. Not second-guessing product choices allocated for each goal. Letting equity investments compound without interruptions. How did you prepare your family for this transition—financially and mentally? My wife, Alinaa, has been involved in the process, as her income is allocated across various goals. My brother and my adviser are the executors and witnesses to our will. My parents are aware of the details of my financial plan and are pleased that I will have time away from my busy schedule. What does the next decade look like for you? Are there new passions you're exploring? Yes. From helping a local community around a farm land we own to pursuing my creative passions, there is much to do. If you could go back to your 40-yearold self, what financial or life advice would you give? You should have appointed your adviser earlier. Use the top-up SIP (systematic investment plan). Read more. Meet more people. How do you think retirement—and financial independence—will look different for the next generation of leaders? The next generation prioritises health significantly better than the previous one. That's the first step to being sorted on most challenges, including financial ones. How do you define 'enough'—and does that evolve over time? It does, but the first step of budgeting is key. Aiming for happiness, rather than being overly happy, helps. Looking back, which decisions or strategies are you most proud of, and which would you approach differently today? I married my best friend. She is my most significant support. In hindsight, the best strategy. Having a good adviser is a close second. And I would guard against concentration, in real estate or equity. PGIM evolved into a respected fund house after the DHFL crisis. How did you manage the ups and downs? We focused on transparency, clear differentiation, and knowing what not to do. Our launches are built for the long term—and all are growing. Talented colleagues and a work culture that values diverse opinions and flexibility helped immensely.
United News of India
06-07-2025
- Business
- United News of India
AP: Central trade unions campaign against labour Codes
Kakinada, July 6(UNI): Central trade unions have launched auto rickshaw campaign against the four labour codes and also in support of their demand for remunerative prices for farmers. They called upon the people to support the nationwide strike on July 9 in support of their demands including increase of minimum wage to Rs.26,000, constitution of welfare Boards for Hamalis, auto workers and building construction workers. CITU district president Duvva Seshu Babji flagged off the Autos campaign at the Dr Ambedkar statue in Indrapalem locks center here on Sunday . Central trade union leaders including IFTU state vice president J Venkateswerlu, AITUC district general secretary Thokala Prasad, INTUC AP and Telangana state organizing secretary Thalluri Raju, Asha workers union city president Ankadi Padmavati, Mess workers union city president Yechuri Sreenu, CITU district general secretary Chekkala Rajkumar addressed the workers on the occasion They said arrangements were being made to make July 9 nationwide strike a success and in Kakinada district alone 50,000 workers will be participating. They criticized the district administration for keeping silent when several local employees were being removed in Rak ceramics, Pattabhi rice mills and in other industries. They demanded 75 percent of the jobs to locals in industries located in Kakinada and surrounding areas . Banks, Insurance, postal, Port employees also would be joining the strike, they claimed. UNI XC KNR
Business Recorder
23-04-2025
- Business
- Business Recorder
Maple Leaf Cement Company
Maple Leaf Cement Company (PSX: MLCF) was incorporated in Pakistan as a public limited company in 1960. The company is engaged in the manufacturing and sale of cement. Besides catering to local market, the company also exports cement to Afghanistan, Middle East and other African countries. Kohinoor Textile Mills Limited is the holding company of MLCF. Pattern of Shareholding As of June 30, 2024, MLCF has a total of 1047.563 million shares outstanding which are held by 13,778 shareholders. Kohinoor Textile Mills Limited (the holding company) has the major stake of 57.90 percent in the company followed by local general public holding 19.32 percent shares of MLCF. Moradabas & Mutual Funds account for 6.56 percent of the company's shares while Banks, DFIs and NBFIs hold 5.79 percent shares. Around 4.99 percent of MLCF's shares are held by foreign general public and 2.77 percent by Insurance companies. Maple lead Capital Limited 1.15 percent stake in the company. The remaining shares are held by other categories of shareholders. Financial Performance (2019-24) MLCF's topline has posted year-on-year growth over the period under consideration. Conversely, its bottomline eroded in 2019 and 2020 and posted net loss in the latter year. In 2021, MLCF's bottomline registered a staggering turnaround only to slip back in 2022. The subsequent years were characterized by reasonable bottomline growth. MLCF's margins drastically dropped in 2019 and 2020 followed by a sound recovery in 2021. In the following years, while gross margin continued to rise, net margin followed a downward trajectory until 2023 followed by an uptick in 2024. On the contrary, operating margin nosedived in 2022 followed by recovery in 2023 and 2024 (see the graph of profitability ratios). The detailed performance review of the period under consideration is given below. In 2019, MLCF's net sales registered a trivial 1.2 percent year-on-year rise to clock in at Rs.26,005.94 million. While export off-take grew by 21.1 percent during the year, local off-take slid by 4.27 percent, culminating into 2.41 percent year-on-year slide in the overall sales volume of MLCF which clocked in at 3,673,278 metric tons in 2019 (see the graph of domestic and export sales volume). Sluggish local sales were the effect of cuts in PSDP budget as well as low private sector spending in the sector on account of economic uncertainty after the new government held the reins of the country in July 2018. On the other hand, depreciation in the value of local currency proved to be the major driver in boosting export sales. However, the company was not able to maintain its GP margin which plunged from 27.3 percent in 2018 to 18.9 percent in 2019 due to high input cost on account of inflation, hike in energy tariff and Pak Rupee depreciation. Gross profit shrank by 30 percent in 2019. Rigorous branding and dealer engagement activities resulted in 26.77 percent higher distribution expense incurred by the company during 2019. MLCF was able to keep a check on its administrative expense which inched up by a paltry 0.42 percent despite increase in the number of employees from 1388 in 2018 to 1569 in 2019. Lower profit related provisioning and unrealized loss on re-measurement of short-term investment drove down other expense by 20.25 percent in 2019. Operating profit marched down by 43.71 percent in 2019 with OP margin slipping from 19.61 percent in 2018 to 10.91 percent in 2019. Finance cost multiplied by 82 percent in 2019 on account of high discount rate and long-term loan obtained for its new production line. MLCF's debt-to-equity ratio soared from 31 percent in 2018 to 37 percent in 2019 as a result of increased borrowings. The consequence was a bottomline slide of 59.66 percent in 2019. MLCF's net profit clocked in at Rs.1,465.30 million in 2019 with EPS of Rs. 2.13 versus EPS of Rs.6.29 registered in 2018. NP margin also eroded from 14.13 percent in 2018 to 5.63 percent in 2019. MLCF's topline rose by 12 percent year-on-year in 2020 to clock in at Rs.29,117.73 million. This was the result of 41.61 percent enhancement in the company's sales volume during the year which clocked in at 5,201,820 metric tons. While local sales volume registered a robust growth of 50.37 percent during the year, export sales volume tumbled by 45.78 percent in 2020. The stunning rebound in the sales volume isn't depicted in the topline because of low retention on account of cut-throat competition in the local industry. 200 percent import duty imposed by India on any goods coming from Pakistan along with reduced demand and prices in the international prices played havoc on company's exports in 2020. Higher landed cost of coal, axle load restriction, Pak Rupee depreciation as well as shift of discharge port from KPT to PIBTL resulted in 41.39 percent hike in cost of sales. As a consequence, MLCF registered gross loss of Rs.699.21 million in 2020. Distribution expense declined by 9.42 percent in 2020 due to slashed advertising and promotional budget. Administrative expense escalated by 6.97 percent in 2020 on account of increased payroll expense despite the fact that the company ended 2020 with a smaller workforce of 1461 employees versus 1501 in the previous year. No profit related provisioning done during the year coupled with no exchange loss and loss on disposal of fixed assets trimmed down other expense by 80.28 percent in 2020. Conversely, exchange gain, gain on disposal of fixed assets and higher interest income drove up other income by 206.95 percent in 2020. Despite keeping a check on operating expense, MLCF registered operating loss of Rs.2287.32 million in 2020. To make things even worse, finance cost amplified by 154.29 percent in 2020 due to higher borrowings for BMR projects. The company eventually recorded net loss of Rs.4,843.27 million in 2020 with loss per share of Rs.5.30. In 2021, MLCF's topline spiraled by 22.1 percent year-on-year to clock in at Rs.35,538.30 million. This was despite the fact that overall sales volume plummeted by 3.43 percent to clock in at 5,023,444 metric tons. While export sales volume mounted by 80.42 percent during the year, it was offset by 6.46 percent slide in local sales volume. Evidently, the superior topline was the effect of improvement in selling prices and resumption of export avenues post COVID-19 restrictions were eased globally. Amid heavy import duty imposed by India on Pakistani goods, the company shifted its focus to Afghan market and received tremendous response. MLCF registered gross profit of Rs.7,402.88 million in 2021 which translated into GP margin of 20.83 percent. Distribution expense spiked by 19.93 percent in 2021 primarily due to branding and sales promotions drives conducted by the company during the year. Administrative expense inched up by 3.67 percent in 2021 due to higher payroll expense despite streamlining its workforce to 1428 employees. The company booked hefty provision for WWF and WPPF, resulting in 482.39 percent hike in other expense in 2021. However, it was offset by 2727.84 percent escalation in other income due to dividend income from subsidiary company. MLCF posted operating profit of Rs.8,783.53 million in 2021 with OP margin of 24.72 percent – higher than its GP margin for the year and also the highest OP margin among all the years under consideration. Finance cost tumbled by 49.90 percent in 2021 due to monetary easing and early payment of its outstanding loan obligations. MLCL posted net profit of Rs.6,254.11 million in 2021 with EPS of Rs.5.69 and NP margin of 17.6 percent – the highest among all the years under consideration. In 2022, MLCF's topline grew by 36.53 percent year-on-year to clock in at Rs.48,519.62 million. This was despite the fact that both local and export sales volume shrank by 0.95 percent and 66.31 percent respectively during the year. This culminated into a cumulative sales volume of 4,761,512 metric tons, down 5.21 percent year-on-year. The topline growth was merely the consequence of upward revision in selling prices in the local market to incorporate higher input cost particularly fuel and power charges. The local demand was subdued due to skimpy demand in the housing sector, lesser than the budgeted PSDP spending and slower execution of large-scale projects. Export sales volume suffered as a result of weaker demand from Afghanistan on account of sluggish economic activity after American evacuation from the region. The company couldn't export the excess stock to the rest of the world because of high cost of production in Pakistan which made cement exports uncompetitive when compared to the regional counterparts. The company sourced its coal from local and Afghan market and relied on its in-house power generation. This resulted in 65.82 percent year-on-year rise in MLCF's gross profit in 2022 with GP margin climbing up to 25.30 percent. Distribution expense magnified by 46.36 percent in 2022 due to higher branding & advertising expense as well as travelling & conveyance and payroll expense incurred during the year. A bigger workforce comprising of 1531 employees versus 1428 employees in the previous year meant higher payroll expense which ultimately led to 19.42 percent higher administrative expense incurred during the year. Higher profit related provisioning, exchange loss as well as debtors written off during the year translated into 41.62 percent hike in other expense in 2022. Other income didn't prove to be favorable either due to absence of dividend income from subsidiary company as well as no exchange gain recorded during the year. MLCF also booked net impairment loss worth Rs.209.92 million on its financial assets in 2022 which further deteriorated its operational performance in 2022. Operating profit mustered only 1.61 percent growth in 2022 with OP margin sliding down to 18.39 percent. Finance cost surged by 16.54 percent in 2022. MLCF's debt-to-equity ratio which shrank to 28 percent in 2021 bounced back to 36 percent in 2022 due to increased long-term borrowings to finance its BMR activities. The imposition of super tax pushed up tax expense for the year by 243.52 percent. All these factors trimmed down the company's net profit by 42 percent in 2022 to clock in at Rs.3,626.34 million with EPS of Rs.3.3 and a radically low NP margin of 7.47 percent. In 2023, MLCFs's net sales posted 27.94 percent year-on-year rise to clock in at Rs.62,075.26 million. This was due to higher selling prices to pass on the impact of unprecedented level of input cost particularly, fuel, power, packing material and interest payments. The cumulative sales volume of the company clocked in at 4,273,444 metric tons, down 10.25 percent year-on-year. Local off-take plunged by 10.92 percent due to politico-economic upheaval which put brakes on PSDP spending, demand in housing sector and implementation of large-scale infrastructure projects. Export sales mounted by 17.84 percent in 2022 due to resumption in demand from Afghan market. However, it is to be noted that the demand hasn't attained the American pre-exodus level in Afghanistan. Due to import restrictions, the company couldn't use imported coal although its prices came at par with the Afghan coal due to global recession. The company relied on Darra coal during 2023. Lower coal prices and internal power production resulted in 33.79 percent rebound in MLCF's gross profit in 2023 with GP margin reaching up to 26.46 percent. Distribution expense multiplied by 34.88 percent in 2023 as the company was engaged in rigorous branding and advertising drives. Administrative expense also mounted by 42.12 percent in 2023 as the number of employees reached 1636 which meant higher payroll expense. Significantly higher provisioning for WWF as well as higher exchange loss resulted in 34.11 percent higher other expense incurred in 2023. Other income was up by 159 percent in 2023 as a result of superior interest income and gain on sale of fixed assets. Net impairment loss on financial assets also slid by 8.81 percent in 2023. All these factors translated into 34.48 percent higher operating profit in 2023 with OP margin slightly improving to clock in at 19.33 percent. Finance cost multiplied by 58 percent in 2023 due to more borrowings and higher discount rate. This coupled with the levy of 10 percent super tax in 2023 versus 4 percent in 2022 drastically diluted the growth of MLCF's net profit for the year which clocked in at Rs.449.67 million, up 23.86 percent year-on-year. EPS clocked in at Rs.4.18 and NP margin stood at 7.24 percent in 2023. In 2024, MLCF's topline inched up by 7 percent year-on-year to clock in at Rs.66,452.35 million. Local sales posted a year-on-year decline of 6 percent to clock in at 3,890,955 M tons. Conversely, export sales registered 36.36 percent year-on-year growth to clock in at 177,263 M tons. Overall dispatches of the company decreased by 4.8 percent in 2024. Export sales couldn't pick up further as Pakistan's high cost of production particularly on the back of high energy tariff makes Pakistani cement uncompetitive in the international market. Cost of sales ticked down by 0.36 percent in 2024 due to cost optimization measures such as controlling fixed overhead, using alternate fuel and relying on locally available coal. This resulted in 27.65 percent year-on-year improvement in gross profit in 2024 with GP margin attaining its highest level of 31.55 percent in 2024. Distribution expense posted a drastic spike of 173.39 percent in 2024 due to exorbitant hike in freight & forwarding charges as well advertisement & sales promotion budget allocated for the year. Administrative expense escalated by 34.15 percent in 2024 due to higher payroll expense on the back of inflationary pressure as well as workforce expansion from 1636 employees in 2023 to 1808 employees in 2024. Other expense tumbled by 42.79 percent in 2024 due to considerable decline in exchange loss. MLCF incurred 86.60 percent higher net impairment loss on financial assets (trade debts) in 2024. Other income rose by 142.86 percent in 2024 due to higher profit on bank deposits, robust dividend income and hefty gain recognized on investment in mutual funds. Operating profit ticked up by 8.9 percent in 2024 with OP margin jumping up to 19.67 percent. Finance cost surged by 50.44 percent in 2024 due to higher discount rate. This was despite a significant decline in outstanding long-term borrowings in 2024; Net profit posted 17.38 percent year-on-year growth to clock in at Rs.5272.53 million. This translated into EPS of Rs.4.98 and NP margin of 7.93 percent. Recent Performance (1HFY25) During the first half of the ongoing fiscal year, MLCF's topline largely remained intact at the last year's level of Rs.34,748 million. During the period under consideration, local sales volume eroded by 12.29 percent to clock in at 1,812,338 M tons. Conversely, export dispatches posted 53.98 percent growth to clock in at 146,241 M tons. Overall sales declined by 9.38 percent in 1HFY25. Price per bag increased during the period to account for inflationary pressure. Cost of sales dipped by 3.56 percent in 1HFY25 due to global recession bringing them in line with Afghan coal and Darra coal. Besides, the company also depended on its in-house power generation which kept it immune from energy tariff hike. Gross profit inched up by 7.72 percent in 1HFY25 with GP margin clocking in at 34 percent versus GP margin of 31.57 percent recorded in 1HFY24. Distribution expense slid by 14.49 percent in 1HFY25 due to a downtick in fuel prices. Conversely, administrative expense surged by 20.41 percent in 1HFY25 due to market induced rise in salaries & wages. Other expense dropped by 21.91 percent in 1HFY25 due to stable value of local currency which kept a check on exchange loss. Net impairment loss on financial assets grew by 86.44 percent in 1HFY25. Both other expense and net impairment loss was offset by 742.77 percent higher other income recognized during the period probably due to higher return from financial assets. This resulted in 30.92 percent stronger operating profit recorded in 1HFY25 with OP margin clocking in at 25.19 percent versus OP margin of 19.24 percent recorded in 1HFY24. Finance cost grew by 19.94 percent in 1HFY25 despite monetary easing. This was due to a massive Money market loan of 35,000 million obtained during the period to invest in market treasury bills. Net profit improved by 34.85 percent to clock in at Rs.4,268.93 million in 1HFY25 with EPS of Rs.4.08 and NP margin of 12.29 percent. This was against the EPS of Rs.2.95 and NP margin of 9.11 percent registered during the same period last year. Future Outlook MLCF expects a favorable outlook for the cement sector on the back of anticipated increase in government infrastructure projects and a rebound in real-estate demand due to recovery in macroeconomic conditions. Improved demand coupled with cost cutting measures such as in-house power generation and use of alternative energy will buttress MLCF's margins. This coupled with smart investments across different sectors of economy will boost its other income. The company has recently acquired 15.18 percent stake in Agritech Limited besides investing in its subsidiary, Novacare Hospitals (Private) Limited to diversify its investment mix.
