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Khaleej Times
29-05-2025
- 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.
Yahoo
27-05-2025
- Business
- Yahoo
Aditya Birla Fashion and Retail Ltd (BOM:535755) Q4 2025 Earnings Call Highlights: Strong ...
Equity Capital Raised: USD 490 million through QIP and preferential issuance. Cash Availability: INR 2,350 crores at consolidated level for ABFRL. ABLBL Revenue (Q4 '25): INR 1,942 crores, normalized growth of 4%. ABLBL EBITDA (Q4 '25): INR 330 crores, 18% Y-o-Y growth, margin expanded by 200 basis points to 17%. ABLBL Full Year Revenue ('25): INR 7,830 crores, normalized EBITDA margin of 16.2%. ABLBL Net Debt: INR 781 crores. Lifestyle Brands Revenue (Q4 '25): INR 1,639 crores, 5% Y-o-Y growth, EBITDA margin expanded by 50 basis points to 20%. ABFRL Revenue (Q4 '25): INR 1,719 crores, 9% Y-o-Y growth. ABFRL Comparable EBITDA (Q4 '25): INR 199 crores, up 103% Y-o-Y, reported EBITDA at INR 295 crores, margin at 17.2%. Pantaloons Revenue (Q4 '25): INR 885 crores, EBITDA margin expanded by 480 basis points to 15.1%. Ethnic Wear Revenue (Q4 '25): INR 564 crores, 19% Y-o-Y growth, EBITDA margin expanded by 700 basis points to 10.1%. Designer-led Ethnic Portfolio Growth (Q4 '25): 46% Y-o-Y, EBITDA margin exceeding 20%. Digital-first Brand Portfolio Growth (Q4 '25): 27% Y-o-Y growth. Warning! GuruFocus has detected 5 Warning Signs with BOM:535755. Release Date: May 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Aditya Birla Fashion and Retail Ltd (BOM:535755) successfully completed the demerger, creating two focused fashion powerhouses, which are now set on independent high-growth trajectories. The company raised USD 490 million of equity capital, strengthening its balance sheet with INR2,350 crores cash available for growth. Both entities delivered robust profitability, with ABLBL achieving a 200 basis points margin expansion and demerged ABFRL more than doubling its EBITDA. Pantaloons segment achieved significant EBITDA margin expansion of 480 basis points, reaching 15.1%, marking its sixth consecutive quarter of margin improvement. The Ethnic wear segment reported a robust 19% Y-o-Y growth in Q4, with profitability improving sharply and EBITDA margin expanding by 700 basis points to 10.1%. The industry faced strong macro headwinds with sustained impact on consumer discretionary consumption, affecting overall performance. Revenue performance was marginally impacted by the closure of Forever 21's offline operations. TCNS saw a revenue decline during the quarter due to ongoing distribution rationalization. The company is still working on turning around loss-making businesses like TCNS and Tasva, which are currently suppressing overall margins. The Style Up brand, while showing growth potential, may initially dilute margins due to its expansion strategy. Q: What will drive the margin expansion for the demerged ABFRL, and what are the sustainable margins for Pantaloons? A: The largest uptick in margins will come from turning around currently negative EBITDA businesses, such as parts of the ethnic businesses and digital-first brands. For Pantaloons, the margin expansion is driven by gross margin improvements, better product planning, and lower markdowns. The sustainable margin for Pantaloons is expected to improve by at least 300 basis points over the next couple of years. - Ashish Dikshit, Managing Director Q: Is the current cash balance sufficient to fund the planned expansion and investments for the demerged ABFRL? A: Yes, the demerged ABFRL is well-capitalized with over INR 2,000 crore in gross cash, which is sufficient to fund planned expansions and investments over the next three to four years. Additionally, there are plans to raise separate capital for the Tomorrow business. - Ashish Dikshit, Managing Director Q: What is the CapEx expectation for the demerged ABFRL in the next few years? A: The ongoing CapEx is expected to be around INR 400 crores annually. This includes expansion plans for various segments such as Style Up, Pantaloons, Tasva, and TCNS luxury. Galeries Lafayette will require a one-time CapEx of about INR 100 crores this year. - Ashish Dikshit, Managing Director Q: How is the company planning to differentiate Style Up in the competitive value fashion space? A: While specific differentiation strategies were not detailed, the company has identified opportunities in the value fashion space that align with its growth thesis for Style Up. The focus will be on opening new stores with a strong emphasis on capital productivity and market presence. - Ashish Dikshit, Managing Director Q: What are the growth expectations for the Sabyasachi brand, and how does the company plan to expand it? A: Sabyasachi is expected to grow at an early double-digit rate, with long-term growth closer to 20% over four to five years. Expansion will be selective, focusing on organic growth rather than aggressive store additions. The brand is positioned as India's only true luxury brand with potential for global growth. - Ashish Dikshit, Managing Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
26-05-2025
- Business
- Times
BGF pledges to invest £3bn in growth companies
Britain's most active equity investor has committed itself to investing more than £3 billion in growth companies over the next five years. BGF, a bank-owned investor in private businesses, said the pledge represented an increase in the amount of capital it invested over the previous five years of £700 million. The organisation, formerly known as the Business Growth Fund, said at least £300 million would go to businesses led by women. It is also understood to be in talks with the pension industry over how it could help to deploy capital that could arise from the so-called Mansion House reforms, which are intended to encourage more pension fund money into UK companies. The fund, which has 370 active businesses in its portfolio, was set up to expand the number and type of British companies taking on equity capital. It only acquires minority stakes of up to 40 per cent and, unlike traditional private equity, does not use debt to drive returns.
Times
12-05-2025
- Business
- Times
RetailBook investment platform wins funds to survive downturn
A platform enabling retail investors to take part in share issues normally reserved for institutional investors has raised fresh capital to tide it over until more favourable conditions return to the moribund stock market. Augmentum Fintech, an investment trust, and other investors have sunk £4.5 million into the platform, RetailBook, whose existing backers include Rothschild & Co, Hargreaves Lansdown, Jeffreys and Peel Hunt. RetailBook recently hired the equity capital markets team at Primary Bid, a rival that pioneered the practice of giving investors the chance to invest in flotations and secondary share issues alongside professionals. • 'In the UK there's a lot of growth to be had, a lot of opportunity' For years, private investors have missed out on share issues as companies omitted retail
