NBCC India Share Q4 Results - Final Dividend

NBCC Results 2021
by Nikita Bhoota 30/06/2021

NBCC India Limited on Tuesday reported PAT at Rs79.64cr in the fourth quarter ended March 31, 2021, compared to Rs78.98cr during the same quarter last year. Yearly PAT rose to Rs221.80cr in FY21 compared to Rs78.23cr in FY20.

The company's net sales rose to Rs2,624.68cr in Q4FY21 compared to Rs2568.73cr in Q4FY20. During FY21, net sales declined to Rs6,739.94cr compared to Rs8,027.50cr in FY20.

The company board has recommended the final dividend of Rs0.47 per paid up equity share of Rs1/- each i.e. 47% for the FY21, subject to the approval of Shareholders in the ensuing Annual General Meeting.

The board in a meeting on Tuesday also approved the appointment of M/s Chandra Wadhwa & Co., Cost Accountants as Cost Auditor of the Company for the FY22. It has also taken note of closure of NBCC Gulf LLC, Sultanate of Oman (A subsidiary of NBCC).

At around 11.13 AM, NBCC (India) Ltd was trading at Rs54.25 per piece up by Rs1.35 or 2.55% from its previous closing of Rs52.90 per piece on the BSE.

NBCC (India) Limited, formerly National Buildings Construction Corporation Ltd., provides civil engineering construction services. The Company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering, Procurement and Construction (EPC). The PMC segment offers management and consultancy services for civil construction projects, including residential and commercial complexes, re-development of government colonies, education and medical institutions, infrastructure project roads, water supply systems, storm water systems and water storage solutions. The Real Estate Development segment focuses on residential and commercial projects, such as corporate office buildings and commercial complexes. The EPC Contracting segment covers chimneys, cooling towers, roads, border fencing, water and sewage treatment plants, and solid waste management systems. The Company provides services from concept to commissioning.


Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

Source: This content is originally posted on indiainfoline.com

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All about Reliance and ADNOC deal

Reliance ADNOC Deal
by Nikita Bhoota 30/06/2021

Reliance Industries (RIL) and Abu Dhabi National Oil Company (ADNOC) have signed an agreement to set up a new petrochemical complex in Ruwais, Abu Dhabi, to produce Chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC).

Under the terms of the agreement, this integrated plant will have a capacity to produce 940,000 tonnes of Chlor-alkali, 1.1 million tonnes of ethylene dichloride, and 360,000 tonnes of PVC annually, RIL said in a statement on Tuesday.

According to media reports, it would cost upwards of Rs 30,000 crore to set up the petrochemical facility.

Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC. This has a wide range of applications across housing, infrastructure and consumer goods. Chlor-alkali can also enable the production of caustic soda, essential for the production of aluminum.

“The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa,” the RIL statement added.

Among other global partnerships, RIL has joined hands with BP for oil exploration and fuel retailing business. It also has a pact with Saudi Aramco for its refinery business.

The proposed facility will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ, another arm of the Abu Dhabi government. The TA’ZIZ is an industrial service and logistics ecosystem that drives, supports, and enables the growth of the Ruwais Industrial Complex and Abu Dhabi’s chemicals, advanced manufacturing and industrial sectors.

The project will manufacture ethylene dichloride, a key building block for the production of PVC in India. This is a significant step in globalizing Reliance’s operations,” RIL’s Chairman and Managing Director, Mukesh Ambani said.

An RIL executive said this is the first step of the internationalisation push that Ambani announced during his company’s 44th annual general meeting.

“Tenders for the initial design of the seven TA’ZIZ chemicals derivatives projects have been awarded and work is ongoing. Final investment decisions for the projects and awards of related Engineering Procurement Construction (EPC) contracts are being targeted for 2022,” the statement added.

At 11:20 am, Reliance Industries Limited stock gained 0.85% trading at Rs 2,105 on BSE.


Disclaimer: The above report is compiled from information available on public platforms. These are not buy or sell recommendations.
 

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RVNL Share Q4 Results - Final Dividend

RVNL Results Final Dividend
by Nikita Bhoota 30/06/2021

Rail Vikas Nigam Ltd or RVNL reported 32.16% higher consolidated revenues for the Mar-21 quarter at Rs5,577.92cr. On a sequential basis, net sales revenues were up 49.44% compared to total revenues in the Dec-20 quarter at Rs3,732.44cr.

Full-year revenues for FY21 were 6% higher at Rs15,404cr. The company operates in the rail infrastructure business and it saw its net cash from operations turning around from negative to Rs657cr in the FY21 fiscal year. Rail investments have started right earnest in the current quarter.

Net profits for the Mar-21 quarter were up 26.40% at Rs.312.63cr. This growth in profits was largely driven by growth in the top line of the company. The company has also implemented cost controls which his evident from the sharp fall in other expenses.

Net margins in the Mar-21 quarter stood at 5.60%, which was slightly lower than 5.86% in the corresponding Mar-20 quarter and sharply lower than 7.53% in the sequential Dec-20 quarter. 

The company has also declared a final dividend of Rs.0.44 per share, subject to approval.

RVNL recently had came up with it's OFS on March 24th 

Rail Vikas Nigam Limited (RVNL) is a special purpose vehicle (SPV) engaged in undertaking development projects. The Company is focused on mobilizing financial resources and implement projects pertaining to the reinforcement of the Golden Quadrilateral. The Company is a non-budgetary initiative for creating and improving rail communication links to ports by the construction of bridges and development of multi-modal transport corridors.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations. 

 

Source: This content is originally posted on indiainfoline.com

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Difference Between Convertible and Non-Convertible Debentures

Convertible Vs Non-Convertible Debentures
by Nikita Bhoota 01/07/2021

Debentures, along with bonds, are one of the most popular debt instruments. Usually, when companies, and sometimes even the government, wishes to raise funds from the public, they issue debentures. 
 
There are different types of debentures, which are categorised based on redeemability, transferability and convertibility. Based on the convertibility, debentures are further classified into two types – convertible debentures and non-convertible debentures. 
 
Another lesser-known debenture type is the partially convertible debenture. In this case, the company that issues the debenture dictates the percentage of the debenture that may or may not be converted into company stocks. 
 
Let us look at the difference between convertible and non-convertible debentures. The comparison can be drawn on different parameters, which are discussed below. 
 
Definition
 
Convertible debentures are a type of debentures that can be converted into equity shares of the company. 
 
Non-convertible debentures are defined as the type of debentures that cannot be converted into equity shares of the company. 
 
Rate of Interest

The convertible debentures have a lower interest rate than non-convertible debentures since the holders have the advantage of converting them into equity shares
 
The non-convertible debentures have a higher interest rate. However, these debentures are considered a little risky than convertible debentures and bonds.

Maturity value

The maturity value of convertible debentures mainly depends on the company's stock price at the time of issuing the debenture. If the stock price is high, it will give higher returns, and low stock prices mean it will provide low returns. A vanilla convertible bond provides the investor with the choice to hold the bond until maturity or convert it to stock. If the stock price has decreased since the bond's issue date, the investor can hold the bond until maturity and get paid the face value.
 
On the other hand, the maturity value of the non-convertible debentures remains fixed, and they give fixed returns on maturity. 
 
Status

This is one of the significant distinguishing factors between convertible and non-convertible debentures. 

If you hold convertible debentures, you can enjoy either the status of being a creditor to the company or the owner of the company. 

Whereas, if you hold non-convertible debentures, your status will be the creditor of the company. 
 
Final Word

Now that you are aware of the difference between convertible and non-convertible debentures, carefully assess your investment goals before making the final decision. Generally, experts suggest that it is best to put 5 to 10% of investment savings in the convertible debentures and invest the rest in the traditional bonds and other investment options. 
 
You can consider investing in IIFL Home Loan Bonds. It is issued by IIFL Home Finance Limited, the non-banking finance arm of the IIFL Group. It has a long-term AA+/Negative credit rating by Brickwork and an AA/Stable rating by CRISIL. Click here to know more about IIFL Home Loan Bonds.  
 
DISCLAIMER: IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Limited), subject to market conditions and other considerations is proposing a public issue of secured and/or unsecured, redeemable non-convertible debentures and has filed the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus and Tranche I Prospectus both dated June, 2021 are available on our website www.iifl.com/home-loans, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trust group.in and www.equirus.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021. The unsecured, redeemable, non-convertible debentures will be in the nature of subordinated debt and shall be eligible for Tier II capital. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated June 29, 2021, including the section on “Risk Factors” beginning on page 19 of the Shelf Prospectus dated June 29, 2021. 

Source: This content is created and hosted originally on www.indiainfoline.com and provided here for our customers' information. 
 

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Different Types of Debentures and Their Use

Types of Debentures
by Nikita Bhoota 01/07/2021

The term 'Debenture' comes from the Latin word, 'debere,' which literally translates to borrow. Debentures are essentially a company's debt. They are medium to a long-term loan or debt availed by the companies to raise capital. These securities are repayable after a fixed period, and the companies pay the holder a fixed interest rate at a specific interval, usually monthly, quarterly, or annually. Generally, the companies pay the debenture interest before paying the dividends. 

Types of Debentures

A company can issue different types of debentures based on their objectives and requirements. And, the debenture categorization depends on redemption mode, tenure, convertibility, security, tenure, coupon rate, etc. Let us look at some of the most common types of debentures issued by companies. 

  • Convertible debenture

These are a type of debentures where the investors have the right to convert their debenture holdings into equity shares of the company. Generally, the rights of the debenture holders, the conversion rate, and the trigger date for conversion are defined at the time of issuing the debentures. 

  • Non-convertible debenture

The debentures which do not have the option to be converted into equity shares are non-convertible debentures. 

  • Registered debenture

In the case of registered debenture, the company that issues the debenture enters the holding details, including the number of debentures issued, name and address of the investor, in the register of debentures. In such cases, if the debenture holder transfers their holdings to other investors, the details are recorded in the register of debenture holders and the register of transfer. 

  • Unregistered debenture

The unregistered debentures are also commonly referred to as bearer debentures. In these cases, the company does not maintain any records. The company pays the principal amount and the interest to the bearer of the instrument irrespective of whose name is written on it. Another significant feature of this type of debenture is that it is easily transferable in the market. 

  • Redeemable debenture

These are a type of debentures where the redemption date is explicitly mentioned on the company's debenture certificate. On the redemption date, the company is legally obliged to return the principal amount to the debenture holder. 

  • Irredeemable debenture

Unlike the redeemable debenture, which has a specific redemption date, these debentures continue for infinity, and there is no fixed date when the company needs to pay the debenture holder. It is redeemable only when the company goes into liquidation. 

Now that you are aware of the different types of debentures; it would help to understand the uses of debentures. 

The companies issue debentures with the aim to raise funds from the public. The companies use such funds for various purposes, including research and development and growth in the market. Companies prefer issuing debentures, which are essentially debt instruments over equity shares, for two reasons. One, issuing debentures does not lead to ownership dilution. Two, the cost of raising funds through debentures is much cheaper than the cost of raising funds through equity shares. In most cases, the companies issue registered secured NCDs as it protects the investors against their investment.

Suppose you want to add debentures to your financial portfolio. In that case, you can consider subscribing to the IIFL Home Loan Bonds issued by IIFL Home Finance Limited, the 100% subsidiary of IIFL Finance Limited. The IIFL Home Finance bonds have AA+/Stable rating from CRISIL, indicating a high degree of safety regarding timely servicing of the financial obligations. Click here to know more about the IIFL Home Loan Bonds.

DISCLAIMER:
IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Limited), subject to market conditions and other considerations is proposing a public issue of secured and/or unsecured, redeemable non-convertible debentures and has filed the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus and Tranche I Prospectus both dated June, 2021 are available on our website www.iifl.com/home-loans, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trust group.in and www.equirus.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021. The unsecured, redeemable, non-convertible debentures will be in the nature of subordinated debt and shall be eligible for Tier II capital. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated June 29, 2021, including the section on “Risk Factors” beginning on page 19 of the Shelf Prospectus dated June 29, 2021. 

Source: This content is created and hosted originally on www.indiainfoline.com and provided here for our customers' information. 
 

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What are Pros and Cons of Investing in NBFC NCDs

Pros and Cons NCDs
by Nikita Bhoota 01/07/2021

What are the Pros & Cons of Investing in NBFC NCDs?

Over the years, the RBI (Reserve Bank of India) has significantly tightened the guidelines for NBFCs (Non-Banking Financial Companies) on how they can raise money through NCDs (Non-convertible Debentures). When the interest rates start going down, many savvy investors prefer locking in their funds in NCDs issued by non-banking financial companies as they offer lucrative interest rates for a more extended period. 

What are NBFC NCDs?
Non-convertible debentures are a popular way of raising funds for the NBFCs. If you review the NCD market, you will find that most of the borrowers are from the NBFC segment over the years. It is a debt instrument and popularly used by the NBFCs and other companies to raise long-term capital through the public issue of shares. The NCDs have a fixed tenure, and the investors receive regular interest at a specific rate on their investment. 

Types of NCDs

There are two types of non-convertible debentures, which are discussed below. 

  • Secured NCD

As the name suggests, the secured non-convertible debentures are a much safer investment option among the two kinds of NCDs. Such NCDs are backed by the company’s assets. This means if for any reason the company fails to pay interest to the investors, they can recover their dues by liquidating the company’s assets. However, the interest rate for secured NCDs is low. 

  • Unsecured NCD

Unsecured NCDs are a riskier investment option than secured NCDs as the company’s assets do not back them. Therefore, if the company fails to pay, the investors have no choice but to wait until they receive the payments. However, the interest rate offered by unsecured non-convertible debentures is higher than secured NCDs. 

Pros and Cons of NBFC NCDs

Pros

  • Every NBFC that aims to raise money through NCD is rated by agencies like Fitch Ratings, CRISIL, ICRA and CARE. Therefore, you can be sure that the information provided is verified and the chances of fraud are zero. 
  • Since the non-convertible debentures issued by the NBFCs are closely monitored and regulated by the Reserve Bank of India, it is beneficial for the investors. The interest rate keeps fluctuating on other investments, and therefore, in such conditions, the NCDs offer attractive returns for a more extended period. 
  • Generally, the NBFCs NCD rate of interest is higher by up to 150-175 basis points than the interest you may receive from investments in bank fixed deposits. And, since most NBFCs that issue NCD are reputed and well capitalised, you can be sure that there is minimal risk in investing in them as an investor. 
  • Another significant advantage of investing in NBFC NCD is that when the market starts falling, the investors tend to enjoy capital appreciation. 
  • The NCDs typically have a first or second charge on the issuer’s assets. Thus, they are a relatively secure and safer investment option compared to other forms of unsecured investments. 

Cons
While there are many advantages of the NCD investment, as an investor, you must be cautious about the risks involved in NCD before investing. The common risks include-

  • Non-banking financial companies are a heterogeneous class of assets; there are high-class and low-quality NBFCs. As an investor, you must be careful about investing in NCDs issued by the NBFCs and decide only after reviewing the credit rating of the NCD. Credit rating is essentially an expert opinion on the repayment capacity of the issuer, and it is advised to invest only in high-rated NBFCs to minimise the risk. 
  • NBFC as an industry is quite vulnerable to various rules and regulations. The NBFCs in India learnt this lesson the hard way in 1998 when the Reserve Bank of India imposed strict regulations on NFBCs in terms of asset classification. And, the sector continues to remain vulnerable to macro regulatory risks. 

Final Word
Thus, NBFC NCDs investment has many pros and cons. So, if you are looking to invest in NCD, do your due diligence in understanding its various aspects before deciding. But generally, experts suggest that NBFC NCDs are an ideal investment option only for those investors who have a high-risk appetite and are willing to lock their funds at a higher returns rate. 
 
DISCLAIMER: IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Limited), subject to market conditions and other considerations is proposing a public issue of secured and/or unsecured, redeemable non-convertible debentures and has filed the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus and Tranche I Prospectus both dated June, 2021 are available on our website www.iifl.com/home-loans, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trustgroup.in and www.equirus.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Shelf Prospectus and Tranche I Prospectus both dated June 29, 2021. The unsecured, redeemable, non-convertible debentures will be in the nature of subordinated debt and shall be eligible for Tier II capital. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated June 29, 2021, including the section on “Risk Factors” beginning on page 19 of the Shelf Prospectus dated June 29, 2021. 

Source: This content is created and hosted originally on www.indiainfoline.com and provided here for our customers' information.