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- Kedaara Capital's Manish Kejriwal speaks to NDTV Profit at #WEF2024
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00:00 All time high in 2023 funds worth rupees 9.58 lakh crore mobilized
00:05 Civil aviation minister Jodhra Aditya Sindhia addresses the flight delays in the capital due
00:13 to fog informs via social media that the authorities were forced to shut the airport
00:19 operations as flights can't operate in zero visibility. Qatar pauses gas shipments via
00:28 Red Sea after US airstrikes hauls at least five LNG vessels that were headed towards the passage
00:35 at the southern end of the Red Sea.
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01:15 That that was a glimpse of the 76th Army Day celebrations held in Lucknow.
01:20 The Indian Army will observe the year 2024 as the year of tech absorption. Hello and welcome. You're
01:26 watching The Reporter on NDTV Profit. I'm your host Pragati Oberoi. On this show we bring you
01:32 the market headlines along with national and global updates. But before we delve deep into
01:37 the show let's see how the markets fared during the day. My colleague Harsh joins us with a quick
01:42 wrap of all the market action. Right it's been a good day for Indian markets a great start to the
01:50 week. We've closed both 22,000 we've breached 22,100 as well. We've closed just below the 22,100
01:57 mark. We in fact briefly were above 22,100 clocked around 22,115 before closing in there. Good 0.9%
02:04 almost a percent higher on the nifty bank as well as one percent plus on the sensex as well. A solid
02:10 750 point rally on the sensex. Let's quickly look at the heat map where the nifty 50 is concerned.
02:15 Largely what you'll see is it was led by tech oil and gas and banking that was the key and of course
02:22 you had the big boys participate both HDFC RIL both of them clocking in solid gains for the day
02:28 2.4% higher on HDFC bank 1.6 on RIL. Where the Bajaj twins were concerned they were they closed
02:35 the lowest you add in HDFC life which closed lower. The poor results also inviting some new
02:41 host of research reports which have led that stock lower. But outside of that it was a fairly good
02:48 day of trade. Let's quickly pick up on the contributories you're seeing largely almost
02:54 nearly 100 points made by both HDFC and RIL out of the 200 odd point rally that we saw on the nifty
03:01 today. In fact from the bottom as well we where the nifty graph is concerned from the bottom as
03:07 well we saw a good rally but outside of those two big contributors to the nifty we also had the IT
03:14 pack chipping in. In terms of the losers not too many where the nifty is concerned. The advance
03:20 decline looked absolutely flat one is to one where the advance decline is concerned the nifty mid cap
03:25 and small cap also closing higher. But of course it was largely the larger caps which are performing
03:32 in trade today and the advance decline indicates that. Also let me quickly switch focus with regard
03:38 to sectors it was a day another day of IT where the sectoral indices were concerned the nifty IT
03:44 continued to gain ground one and a half plus percent higher on the nifty IT. The PSU pack was
03:49 buzzing oil and gas energy all of which were in the green nifty pharma gained a percent or thereabouts
03:54 among the losers nifty media and nifty metal were the top losers. That was the quick market
03:59 wrap for you now in line with the market action Tata consumer shares hit record high on capital
04:06 foods and organic India acquisition deals. Let's go across to Sessa Sen for more on this. Sessa
04:11 what does this mean for Tata consumer and the companies that it has now acquired?
04:19 Right so we've spoken to Ajay Gupta who is the founder of capital foods and he had
04:24 mentioned that you know one of their investors needed to exit and hence they had to take the
04:29 decision of kind of you know getting in touch with Tata consumer and selling 75 percent stake
04:37 for now and eventually the remaining 30 remaining 25 percent within the next three years. Now Ajay
04:44 Gupta will in his personal capacity hold five percent and it's a dream run for me to hand over
04:51 the brand to someone like Tata group that is what he said and I quote he the group also expects to
04:58 beat the current growth trajectory which is about 15 to 20 percent and also the estimated FY24
05:05 turnover is pegged at 870 crore. Listen into the conversation.
05:10 We are going to handle the business. We're going to work on the I have spent 27 years in the
05:20 business and the Tatas are very gracious that they want to use our knowledge that we have we have
05:29 done in the in the last 20 years 27 years on the culinary business specifically
05:34 and in the next three years time we exit on third year so there are no conditions as such.
05:39 Every time is a good time for us one of our investors needed an exit and hence we had to
05:49 do something like this really speaking and and we also believe we also believe we've created
05:56 iconic brands in chains in Smith and Jones with the help of the Tata distribution the TCBL
06:02 distribution which is close to 10 times larger than us we benefit from from this entire integration
06:09 that happens. That was the capital foods management. Now HCL tech also recently announced
06:16 their third quarter earnings and NDTV profit brought you the fastest coverage on that.
06:21 My colleague Tushar Singh caught up with the company's CFO Pratik Agarwal on their Q3 earnings
06:27 and why the company exactly narrowed down their FY24 guidance. Here's a slice of the conversation
06:32 for you. This quarter was certainly a sixer of a quarter but we don't think we'll be able to hit
06:43 another six in the immediately next quarter. So we have kind of tempered down the higher end of
06:53 the range instead of five to six percent we toned it down to five to five and a half percent. I think
07:00 what is to be kept in mind is five to five and a half percent is better growth much better growth
07:07 than all of our large cap IT peers and secondly even to deliver this five to 5.5 range our
07:18 services business has to deliver 1.6 percent to 3.5 percent sequential growth which is what we are
07:28 pencilling in and we expect to be in the higher end of that range for the services business as
07:34 well. So Mr. Agarwal why do you think that the January March quarter will not be as good as the
07:40 October December period can you give us some guidance on it as so to speak. Very simple it's
07:46 the seasonality of the product business the software business December quarter tends to be
07:52 a peak it has been a peak in any of the last three four five years if you look at it and March quarter
07:59 the seasonality in the software business is not going to be there it's going to be a software
08:05 is going to decline as it typically does in the March quarter compared to December
08:10 so that's the simple reason for that. Okay but you are confident about maintaining your
08:16 operational profitability at 18 to 19 percent so what are the marginal levers still in play
08:20 for you for that confidence sir. I think our run rate in the last two quarters has already built a
08:28 solid foundation so we were at 18.5 percent in the last quarter and with the software seasonality
08:35 this quarter is 19.8 so we are on a good trajectory and we hope to continue our good run so we are
08:46 pretty much in the near the middle of the range so far in the three quarters
08:53 and with the fourth quarter we don't expect anything different. That was HCL Tech CFO
09:01 speaking to NDTV Profit. Now it's time for an update on the bond market. Corporate bond
09:06 issuances through private placements touched an all-time high in 2023 with funds worth 9.5 lakh
09:13 crore rupees mobilized through this. For more insights on this my colleague Mimansa who also
09:19 tracks the banking space very closely joins in. Hi Pragati. So companies as well as banks have
09:26 increasingly been raising funds through corporate bonds on a private placement basis due to a
09:32 stellar growth in the credit demand in 2023 but the liquidity conditions which have been in deficit
09:38 for the last few months have compelled these companies and banks to move to different sources
09:44 of funding. So corporate bonds have been a go-to avenue for these companies to raise funds. So like
09:51 you said the funds mobilized through these bonds were at rupees 9.58 lakh crore in 2023.
09:59 This is 26 percent higher from last year and at a record high. Even the total number of issuers rose
10:06 to 920 in 2023 from 863 issuers with banks leading the pack with issuances worth rupees 4.71 lakh
10:15 crore. If you look at the private and public sector bifurcation private sector accounted for
10:20 59 percent of the total amount mobilized through corporate debt while the government sector was
10:26 able to secure 41 percent of the total amount raised. So why private placement basis because
10:32 it is an alternative to an initial public offer for a company which is seeking to raise
10:37 capital for expansion and right now the trend is that a lot of banks are looking for
10:43 diversifying their sources of funding amid deficit liquidity in the banking system.
10:49 For that update it's time for a short break but we have lots more lined up for you on the other side.
10:55 So stay tuned.
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14:36 Welcome back you're watching the reporter on NDTV Prophet. Now straight to an update from Davos.
14:52 Kedara Capital's Manish Kejriwal remains positive on India while speaking to NDTV Prophet's Neeraj
14:57 Shah in Davos. He said that India has been insulated from the global market for a long time.
15:04 He added that the Indian infrastructure market is a lucrative opportunity for global funds.
15:10 The thirst of capital was sort of quenched by in the past by the soft banks, the alpha waves of
15:18 the world that's drying up a little bit but the more later private equity like ours all the global
15:24 guys like the black students of the world as well as the markets themselves will be our largest
15:29 competitor the private equity but for the entrepreneur what a fantastic choice to have.
15:34 We are in a phenomenal situation right now so I think there's credibly a significant interest in
15:40 India and that interest I think is genuine but now let me peel the thing one more what's happening
15:46 right when you see what's happening in China and people often ask is all the capital going to China
15:52 coming to India that's not the case and that will not be the case right China has its own place
15:57 there is a temporary slowdown it's also a very large market there's lots of geopolitical
16:03 complications China will be back so I don't think we can substitute for China we can be in addition
16:10 to China we can take more and more market share from an Apple's manufacturing of iPhones into
16:17 India from China. That was an update from Davos now recently the Home Ministry asked the CBI
16:24 to investigate corruption in the Aam Aadmi Party's Muhalla clinics. Metropolis Healthcare has now
16:29 clarified that it followed all procedures for medical samples under the project. My colleague
16:35 Monal joins in to tell us more. Thanks Pragati. Yes so Metropolis is trying to give us a view
16:44 on what is happening on the back side of the whole Muhalla clinics scam. It said that it has however
16:51 followed all medical procedures that are required to be done on the sample that it has received
16:56 under the scheme and that this whole Muhalla clinics samples that come into them are tested
17:03 based on all the information that is shared with them by the Muhalla clinic. So they are saying
17:09 that interacting and collecting samples is not in their work and that is done by the clinics
17:17 the front-facing clinics. Their revenue they've said is around four crores from the whole project
17:23 from February to December for now and they've only received around 1.3 crore and the company
17:29 is trying to dissociate itself from the project itself saying that the assignment is not commercially
17:35 viable and this is majorly due to the prolonged delays in receiving the dues. So this is majorly
17:41 what's happening on Metropolis and on this the stock has also reacted today it's 3.4 percent
17:46 positive. So all in all we have to see what is going to happen on the Muhalla clinics front but
17:53 Metropolis seems to be in the clear. Right Monal thanks so much for bringing us those updates.
17:58 Meanwhile on the sidelines of Pixel Facilities launch in Bengaluru my colleague caught up with
18:04 ISRO chairman S Somnath who spoke about the facility and what it means for the private
18:09 space manufacturing in India. He also spoke about the evolving space policies and the new innovations.
18:15 See with the opening up of the space sector in 2020 and also the release of the 2023 space policy
18:25 it enables non-governmental entities and private sector to come into space in
18:29 in all the sectors building rockets to building satellites applications and create business and
18:35 value in space sector. So today's inauguration of the Pixel's integration facility for satellites
18:40 an example of this growing interest in the domain of space in the private sector.
18:46 Not only Pixel there are many other companies who have started already the manufacturing of
18:50 satellites in India. Pixel is not just not manufacturing going to manufacture they've
18:55 already done it they are launched it they are operationalized satellites but now they are
18:58 looking at scaling up numbers and more number of satellites to build in Bengaluru. I'm really happy
19:03 to come over and then have part of this celebration of building their new facilities and I hope that
19:09 this will be flooded with building of the future constellation of satellites especially
19:13 smaller satellites which they are specialized in imaging satellites. What the the the point which
19:19 I said is that it has to create more value it's not just building satellites out of the satellite
19:24 you get data and this data must become finally a useful product in terms of delivering some
19:30 services goods to the people and this aspect also they are putting a lot of value and effort in
19:34 terms of image processing data dissemination and making significant impact in the society.
19:40 I think both these are there in Pixel and I want to congratulate them for the such an initiative.
19:45 So what do you see in terms of more collaboration between the government and private entities going
19:50 ahead in terms of policy changes as well and overall what all has happened over the past four
19:56 five years? See the policies are very clear the publicly funded facilities and infrastructure
20:03 that has been created in space department is at the disposal of the private entrepreneurs
20:07 for making use of them in case they need some support especially technology support
20:11 facility support consultancy all these are possible today with the governmental facilities.
20:17 So that's already happening for Pixel for some of the testings are happening in our facility
20:21 some technology transfers are happening and we will look at it to enhance it in the blue post.
20:26 That was the ISRO chairman for you. Now Pixel co-founder and CEO Awais Ahmed also spoke to
20:32 NDTV profit on why the startup opens its spacecraft manufacturing facility in Bengaluru.
20:38 We are building the world's first constellation of hyperspectral satellites which in the most
20:45 basic sense means that we are able to see things at a 50 times richer detail than satellites up in
20:50 space today are able to do and that was the mission with which we started. Now when we launched three
20:55 demo satellites in the last three four years of our inception we were okay with a small lab where
21:01 we could build one satellite at a time and then launch it but now that we are entering the period
21:06 where we need to scale up we need to launch a total of about 24 to 30 satellites over the next
21:10 two to three years and then expand to hundreds more satellites for ourselves and for different
21:14 organizations and governments and for that we needed a much larger facility. Now we could have
21:19 probably rented clean rooms elsewhere we could have done testing elsewhere but the reason for
21:23 having our own assembly integration and testing facility is it helps control the entire flow of
21:28 how we build satellites. We can do it much faster we can do it much more efficiently and we can do
21:32 it cheaper. So one time investment will mean that we can do 25 satellites small satellites of up to
21:37 100 kilograms at a time here and we can turn them around every four to six months so in a best case
21:43 scenario we can turn around 75 satellites per year from this facility if everything is optimized
21:48 and that means we have full control of our speeds our iterations and everything else which is why
21:52 it was important for us to invest in this and not be dependent on anyone else for our own timelines.
21:57 Last we spoke you said the government is doing a good job in terms of being an enabler policy-wise
22:02 but what is lacking is still a commitment from their end to becoming a buyer a first buyer
22:07 a partner potentially. Are you seeing any progress on that front?
22:11 We are so I think you know 2019-2020 was when the announcement was made for opening up of the
22:15 policy and then in 2021 and 2022 things really started to sort of take off from there. What has
22:23 happened apart from the policy the first thing is the biggest thing is the policy because now there's
22:26 a clear policy everyone knows that private companies are to be supported and sort of
22:30 worked with and so on and so forth but as you said in terms of actually creating an ecosystem for
22:36 buying and selling within the country there's still some way to go however there are programs
22:39 such as the IDEX program that the Ministry of Defense does innovation in defense excellence
22:44 or something along those lines where they give grants to build prototypes and on the basis of
22:48 a successful prototype there is guaranteed procurement at the end of it for many more
22:52 such things which was earlier limited to other defense applications such as you know building
22:56 ammunition and so on and so forth or drones but now it has been extended to satellites
23:00 and that's something that we recently won an IDEX grant for last year for building you know
23:05 multi-payload miniaturized micro satellites so I think it's starting there's still a long way to go
23:09 that was pixels management for you and that's also that we have for you on the reporter
23:15 but for more news and updates please keep watching NDTV profit
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