Wednesday, 28 October 2020

Punjab National Bank Launches TMSAC portal and 2020 Vigilance Manual

 Photo Caption:

Left to Right: Sh. Vijay Kumar Tyagi, CVO, PNB, Sh. Suresh N Patel- Vigilance Commissioner, CVC, Sh. Agyey Kumar Azad, ED, PNB, Shri Suresh N Patel, Vigilance Commissioner, Sh. CH. S.S. Mallikarjuna Rao, MD & CEO, PNB, Sh. Vijay Dube,  ED, PNB & Sh. Sanjay Kumar, ED, PNB

 Date: 28.10.2020

Kolkata, 28th October 2020: As a part of the Vigilance Awareness Week (VAW), the nation’s leading public sector bank, Punjab National Bank (PNB), today launched the PNB Tracking & Monitoring Staff Accountability Cases (TMSAC) portal and PNB’s 2020 Vigilance Manual. The ceremony was graced by the presence of Shri Suresh N Patel- Vigilance Commissioner, Central Vigilance Commission and Shri P. Daniel - Secretary-in-charge of Central Vigilance Commission along with Shri CH S.S. Malikarjuna Rao - Managing Director and Chief Executive Officer of PNB.

Addressing the occasion, Shri Suresh N Patel, Vigilance Commissioner, said, “We must remember that newcomers learn from the existing ecosystem, and if  we have good practices across the organization, they learn quickly and imbibe them for life. Thus, organizations must ensure an atmosphere of learning. While there should be fairness and transparency in the workplace, we must also seek severe penalty for those who lack integrity.”

“Being an ex-banker, I clearly understand the importance of honesty and integrity in a bank. I really appreciate PNB’s initiatives of setting up a robust portal and an efficient manual to stay updated and create awareness regarding preventive vigilance. It will not only help the existing employees but also benefit the new joinees to understand the bank’s policies. Such initiatives bring fairness and transparency in the organization and help solving issues at a lightning speed,” he added.

Shri Patel said being the second largest public sector bank, PNB had a great responsibility towards the society, the nation and customers at large hence it was imperative to have the best practices and create an employee friendly environment.

Commenting on the occasion, Shri CH SS Malikarjuna Rao, Managing Director, and Chief Executive Officer of PNB said, “Celebrating the Vigilance Awareness Week raises the importance of risks in our working as well as personal life and ensures that the threat perception is properly assessed and dealt with. In the case of an organization, what we need are processes and guidelines that can be disseminated to the entire organization to assess risks. Through the Vigilance Awareness Week, we are reiterating our commitment to preventive vigilance and to thwart the impact on the organization with better experience and understanding.”

Shri Vijay Kumar Tyagi, Chief Vigilance Officer, PNB concluded the ceremony with the Vote of Thanks “PNB is observing a VAW between 27th October to 2nd November. The celebration of Vigilance Awareness Week was started way back in 1999 by the CVC. CVC's fundamental strategy is to observe VAW every year to encourage all stakeholders to prevent corruption in public life collectively. The theme for this year is "सतर्क भारतसमृद्ध भारत  Satark Bharat, Samriddh Bharat" creating vigilant and prosperous India.”

He added that thanks to the efforts of institutions like CVC, today, we have better frameworks and guidelines that seek organizations to refocus and reinforce the onboarding process of Management Trainees and Probationary Officers so that they understand the threats and risk perceptions before they take up bigger responsibilities. “The entire ecosystem is contributing to harmonizing the guidelines further so that the threat to the operational framework is eliminated,” he said.

The user-friendly TMSAC portal tracks and monitor the complaints/NPA reference at various stages on a real-time basis. The portal will help the Bank identify the internal fraud in advance, take instant action, and improve the internal processes. It will create a bridge between the concerned officers and divisions for sharing of information and will also track relevant information onward submission through DFS and RBI. This will inculcate a sense of honesty and integrity among the employees and control the internal systems making it more transparent.

The Vigilance Manual helps to have a better understanding of the vigilance functions and the guidelines. The new initiatives like Preventive Vigilance Monitoring Portal, training sessions to promote vigilance awareness, do’s and don’ts and the recent policy changes have also been covered under the new manual.

NOTJUSTLEX PRESENTS ADVANCED WORKSHOP ON DRAFTING AND NEGOTIATION OF INVESTMENT AGREEMENTS


NotJustLex has curated a special workshop on Advanced workshop on drafting and negotiation of investment agreements.

This advanced workshop by NotJustLex has been structured for working professionals but anyone having basic knowledge of Company Law, Law of Contracts, FEMA Regulations (including FDI Policy) Sr SEBI Regulations and professionals who are eager to learn can apply and register.

This course is designed to equip you with the necessary skill-set!

To stay relevant in the field, one must participate in the opportunities that have come to fore to improve continually.

Workshop Highlights

3.     Structuring of Investment Transaction(s), covering regulatory and tax issues

·        Direct Investment Structure (in operating/holding companies)

·        Offshore HoldCo Investment Structure

·        Swap Structures

·        Structures for investment in listed companies

·        Structures for investments in Start-ups

2. Drafting & Negotiation of Transaction Documents

·        NBTS/HoT/MoU

·        SPA, SSA, SHA, JVA, Investment Agreements (for CODS, COPS, OCDs, OOPS)

·        Ancillary Agreements: Option Agreement Incentive Arrangements, Promoter Employment Agreement, Side Letters, etc.

3. Mock Negotiation Session

 

Lead Instructor: Abhishek Sinha, Founder, NotJustLex; Ex-Partner Khaitan & Co & Shardul Amarchand Mangaldas. Other Industry Experts will also join for some of the sessions.


To register, visit: www.notjustlex.com/events/

Limited Seats: Only 15 (FCFS Basis)

Registration Fees- INR 8000/-
All Sessions: Live and Interactive

Duration- 10hrs (each session will be for 2 hours) Mock negotiation will be separate

Join the next batch starting from 30th October 2020

 

For queries and more information, feel free to write at: info@notjustlex.com

Usha set to woo consumers this festive season; launches 10 new fan variants


New range comprises ceiling, wall, exhaust, and pedestal fans to further strengthen category

28 October 2020, New Delhi: India’s trusted consumer durables brand, Usha International, today launched 10 new fan variants that include ceiling, wall, exhaust, and pedestal fans, adding to its already robust portfolio.

These innovative, best-in-class products spanning categories, aim to cater to a diverse range of consumer needs. Usha’s new ceiling fans include – AIROSTRONG AngleAIROSTRONG Curve, Swift AlphaSwift Alpha Chrome, and Bloom Bellflower. Enhancing its pedestal and wall fans range, the company has introduced the Colossus and Pentacool series, and also launched Striker – the high-speed plastic exhaust fans range.

Talking about the new launches, Mr Rohit Mathur, President - Electric Fans & Pumps, Usha International, said “Developed as a result of consumer insights, these new fans underscore that we, at Usha, recognize that every household has a different need. To ensure we serve all our consumers, we have further strengthened our already robust portfolio with 10 new products that boast innovative technology and high-performance capabilities. We aim to evolve in tandem with consumer preference to nurture the trusted relationship we have with homes across the country.”

 

The new fans launched by the brand have been carefully designed keeping in mind India’s new-age consumer, and enhance the décor of any room they are placed in. Priced competitively and available in multiple colour variants, all products come with a two-year warranty making it a compelling buy.

Dr. Reddy’s Q2 & H1 FY21 Financial Results

Hyderabad, India, October28, 2020: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE:DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter and the half year ended September30, 2020.The information mentioned in this release is on the basis of consolidated financial statementsunder International Financial Reporting Standards (IFRS).

H1 Performance Summary

 

Rs. 9,314 Cr

Revenue

[Up: 8% YoY]

54.9%

Gross Margin

[H1 FY20: 54.9%]

Rs. 2,589 Cr

SGNA expenses

[Up: 2% YoY]

Rs. 834 Cr

R&D expenses

[9.0% of Revenues]

 

Rs. 2,430 Cr

EBITDA

[Down: 5% YoY]

 

Rs. 1,741 Cr

Profit before Tax

[Up: 8% YoY]

 

Rs. 1,342 Cr

Profit after Tax

[Down: 24% YoY]

 

Q2 Performance Summary

 

Rs. 4,897 Cr

Revenue

[Up: 11% QoQ; 2% YoY]

 

53.9%

Gross Margin

[Q1 FY21: 56.0%; Q2 FY20: 57.5%]

 

Rs.1,311 Cr

SGNA expenses

[Up: 3% QoQ; Down: 1% YoY]

 

Rs.436 Cr

R&D expenses

[8.9% of Revenues]

 

Rs. 1,267 Cr

EBITDA

[Up: 9% QoQ; Down: 12% YoY]

 

Rs. 862 Cr

Profit before Tax

[Down: 2% QoQ; Up: 12% YoY]

 

Rs. 762 Cr

Profit after Tax

[Up: 32% QoQ; Down: 30% YoY]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


*Q2 FY21 YoY sales growth of 20% adjusted for proprietary products out-licensing income in previous year

 

 

Commenting on the results, Co-chairman & MD, G V Prasad said “We are pleased to report continued growth across all the markets and improved productivity which is reflected in the healthy EBITDA margin and RoCE. Our research teams are working on several potential remedies for COVID in addition to the already launched products.”

 

 


All amounts in millions, except EPS              All US dollar amounts based on convenience translation rate of I USD = Rs. 73.54

 

 

Dr. Reddy’s Laboratories Limited and Subsidiaries

 

Consolidated Income Statement

Particulars

Q2 FY21

Q2 FY20

YoY
Gr %

Q1 FY21

QoQ
Gr%

 ($)

 (Rs.)

 ($)

 (Rs.)

 ($)

 (Rs.)

Revenues

666

48,967

653

48,009

2

601

44,175

11

Cost of Revenues

307

22,558

277

20,389

11

264

19,420

16

Gross Profit

359

26,409

376

27,620

(4)

337

24,755

7

Operating Expenses

 

 

 

 

 

 

 

 

Selling, General & Administrative expenses

178

13,107

180

13,217

(1)

174

12,786

3

Research and Development expenses

59

4,359

50

3,662

19

54

3,980

10

Impairment of non-current assets

11

781

48

3,560

(78)

 

 

Other operating income

(2)

(149)

(2)

(135)

10

(2)

(118)

26

Results from operating activities

113

8,311

99

7,316

14

110

8,107

3

Net finance income

(3)

(237)

(3)

(231)

3

(8)

(605)

(61)

Share of profit of equity accounted investees

(1)

(73)

(2)

(117)

(38)

(1)

(77)

(5)

Profit before income tax

117

8,621

104

7,664

12

120

8,789

(2)

Income tax

13

998

(44)

(3,261)

(131)

41

2,996

(67)

Profit for the period

104

7,623

149

10,925

(30)

79

5,793

32

Diluted Earnings Per Share (EPS)

0.62

45.83

0.90

65.82

(30)

0.47

34.86

31

 

As a % to revenues

Q2 FY21

Q2 FY20

Q1 FY21

Gross Profit

53.9

57.5

56.0

SG&A

26.8

27.5

28.9

R&D

8.9

7.6

9.0

EBITDA

25.9

29.9

26.3

PBT

17.6

16.0

19.9

PAT

15.6

22.8

13.1

 

EBITDA Computation

Particulars

Q2 FY21

Q2 FY20

Q1 FY21

($)

(Rs.)

($)

(Rs.)

($)

(Rs.)

Profit before Income Tax

117

8,621

104

7,664

120

8,789

Interest income (net)*

(0)

(1)

(3)

(226)

(4)

(306)

Depreciation

30

2,188

31

2,306

29

2,120

Amortization

15

1,084

14

1,033

14

1,020

Impairment

11

781

48

3,560

 

 

EBITDA

172

12,673

195

14,337

158

11,622

 

* Includes income from Investments

All amounts in millions, except EPS              All US dollar amounts based on convenience translation rate of I USD = Rs. 73.54 

Key Balance Sheet Items

Particulars

 As on 30th Sep 2020

 As on 30th Jun 2020

 As on 30th Sep 2019

 ($)

 (Rs.)

 ($)

 (Rs.)

 ($)

 (Rs.)

Cash and cash equivalents and other investments

355

26,074

384

28,227

414

30,446

Trade receivables (current & non-current)

684

50,335

657

48,316

573

42,153

Inventories

559

41,134

532

39,148

476

35,033

Property, plant and equipment

748

55,026

737

54,183

721

53,008

Goodwill and Other Intangible assets

619

45,553

625

45,991

603

44,340

Loans and borrowings (current & non-current)

373

27,429

429

31,582

429

31,545

Trade payables

310

22,833

259

19,038

210

15,434

Equity

2,248

1,65,337

2,199

1,61,748

2,092

1,53,816

 

Revenue Mix by Segment

Particulars

Q2 FY21

Q2 FY20

YoY Growth %

Q1 FY21

QoQ
Growth %

 (Rs.)

 (Rs.)

 (Rs.)

 Global Generics

39,841

32,816

21%

35,075

14%

    North America

18,328

14,265

28%

17,282

6%

    Europe

3,754

2,764

36%

3,551

6%

    India

9,123

7,511

21%

6,260

46%

EM

8,636

8,276

4%

7,982

8%

 Pharmaceutical Services and Active Ingredients (PSAI)

8,505

7,107

20%

8,553

(1%)

 Proprietary Products & Others

621

8,086

(92%)

547

14%

 Total

48,967

48,009

2%

44,175

11%

Cyber Attack Update

On 22nd October 2020, we experienced an information security incident and consequently isolatedthe impacted IT services. This incident involved a ransom-ware attack. We promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident.

As of date, our investigation has not ascertained if any data breaches in the incident pertain to personally identifiable information stored in the Company's systems.

Recovery and restoration of all applications and data is underway. All critical operations are being enabled in a controlled manner.

COVID-19 Update

 

We continue our fight against the current pandemic by ensuring health and safety of our employees and business partnersby adopting adequate precautionary measures. We continued our operations across plants enabling us to serve our patients across markets.

During the quarter we saw gradual recovery in the market demand across India, Russia and other markets after a low demand in Q1 FY 21, although the demand is yet to fully recover to pre-covid levels.

We launched COVID-19 treatment drugs Avigan (Favipiravir) and Remdesivir. We further strengthened our development pipeline for COVID-19 treatment drugs including the vaccine candidate Sputnik V.

Revenue Analysis

Global Generics (GG)

Revenues from GG segment atRs. 39.8 billion:

Ø  Year-on-year growth of 21% and sequential quarter growth of 14%, were driven primarily on account of new product launches, volume traction in the base business and integration of the acquired business from Wockhardt in India. 

North America

Revenues from North America atRs. 18.3billion:

Ø  Year-on-year growth of28%, driven by contribution from new products launched, increase in volumes of our base products and aided by a favorable forex rate, which was partially offset by price erosion.

Ø  Sequential growth of 6%, on account of volume traction in the base business and new product launches, offset by adverse forex movement and price erosion.

Ø  We launched nine new products including Ciprofloxacin & Dexamethasone Otic Suspension, Fulvestrant Injection, OTC Diclofenac and OTC Olapatadine.

Ø  We filed two new ANDAs during the quarter.As of 30thSeptember 2020, cumulatively 94 generic filings are pending for approval with the USFDA (92 ANDAs and 2 NDAs under 505(b)(2) route). Of the 92 ANDAs, 50 are Para IVs and we believe 26 have ‘First to File’ status.

Europ

Revenues from Europeat Rs. 3.8 billion:

Ø  Year-on-year growth of 36% and sequential growth of 6%, primarily on account of new product launches and favorable forex movement.

Ø  We also forayed into a new country Austria, beyond our EU5 markets.

Revenues from India atRs. 9.1 billion:

Ø  Year-on-year growth of 21% and sequential growth of 46% is primarily on account of revenues from the acquired business ofWockhardt and contribution from new products including the Avigan (Favipiravir) and Remdesivir launched for treatment of Covid-19.

Emerging Markets

Revenues from Emerging Markets atRs. 8.6 billion. Year-on-year growth of4%.Sequential growthof8%:

Ø  Revenues from Russia at Rs. 4.0 billion. Year-on-year decline of 3% is primarily on account of weakening Ruble. Sequential growth of 22% contributed by increased volumes with a gradual recovery in market demand after Q1 was impacted due to COVID-19.

Ø  Revenues from other CIS countries and Romania market at Rs. 2.0 billion. Year-on-year growth of 19% and sequential growth of 43% driven by both base business and new product launches.

Ø  Revenues from Rest of World (RoW) territories at Rs. 2.7 billion. Year-on-year growth of 7% driven by new products. Sequential decline of 20% is on account of lower volumes sold for existing products.

Pharmaceutical Services and Active Ingredients (PSAI)

Revenues from PSAI at Rs. 8.5billion:

Ø  Year-on-year growth of 20% driven by new products, growth in the services business and favorable forex rate.

Ø  Sequential decline of 1% on account of lower volumes of certain products, partially offset by new products and growth in the services business.

Ø  During the quarter we filed DMF for one product in the US.

Proprietary Products (PP)& Others

Revenues from PP& Others at Rs. 622million:

Ø  Year-on-year decline of 92%. Q2 FY 20 was higher due to income from sale of theUS and select territory rightsfor two of Neurologyfranchise products pertaining to PP.

Ø  Sequential growth of 14%.

Income Statement Highlights:

Ø  Gross profit margin at 53.9%:

-          Decline of 360 bps over previous year, which was impacted due to inclusion of revenue from sale of Neurology franchise products in the previous year, partially offset by improvement in productivity and favorable forex rates. Sequentially the margin reduced by 210 bps,primarily on account of lower export incentives, adverse forex and product mix.

-          Gross profit margin for GG and PSAI business segments are at 59.4% and 26.8% respectively.

Ø  SG&A expenses at Rs. 13.1 billion, reduced by 1%year-on-year due to certain one-off expenses last year, which was partly offset by incremental costs post the integration of the acquired divisions from Wockhardt in this year. Sequentially it increased by 3% primarily due to the integration of the acquired divisions from Wockhardt and pickup in sales & marketing activities post un-lock.

Ø  R&D expenses at Rs. 4.4 billion. As % to revenues these are: Q2 FY21: 8.9% | Q1 FY 21: 9.0% | Q2 FY20: 7.6%. Our focus continues on building a healthy pipeline of new products across our markets including development of products pertaining to COVID-19treatment.

Ø  Other operating income at Rs. 149 million compared to Rs. 135 million in Q2 FY20.

Ø  Net Finance income at Rs. 237 million compared to Rs. 231 million in Q2FY20.

Ø  Profit before Tax at Rs. 8.6 billion, increased by 12% year-on-year and reduced by 2% sequentially.

Ø  Profit after Tax at Rs. 7.6 billion. The effective tax rate is ~11.6% for the quarter, which is lower primarily due to recognition of deferred tax assets for one of our subsidiaries.

Ø  Diluted earnings per share is at Rs. 45.83.

Other Highlights:

Ø  EBITDAat Rs. 12.7 billion and the EBITDA margin is 25.9%

Ø  Capital expenditure is at Rs. 2.5 billion.

Ø  Free cash-flow generated during the quarter stood at Rs. 6.0 billion.

Ø  Net debt of the company is at Rs. 1.4 billion as on September 30, 2020. Consequently, net debt to equity ratio is 0.01.

Earnings Call Details (05:30 pm IST, 08:00 am EDT, Oct 28, 2020)

The management of the Company will host an earnings call to discuss the Company’s financial performanceand answer any questions from the participants.

Conference Joining Information


Option 1: Express Join with DiamondPass™


Pre-register with the below link and join without waiting for the operator.

 https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=5122677&linkSecurityString=e52c5aa7d

Option 2: Join through below Dial-In Numbers

Universal Access Number:

 

+91 22 6280 1219

+91 22 7115 8120

Local Access Number:

Available all over India

+91 70456 71221

International Toll Free Number:

USA: 1 866 746 2133

UK: 0 808 101 1573

Singapore: 800 101 2045

Hong Kong: 800 964 448

No password/pin number is necessary to dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.

 

Play Back: The play back will be available after the earnings call, till November4th, 2020. For play back dial in phone No: +91 22 7194 5757 | +91 22 6663 5757, and Playback Code is 97779.

 

Transcript: Transcript of the Earnings call will be available on the Company’s website: www.drreddys.com