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India Surpasses Japan As Second Largest Steel Producer

India has become the second largest steel producing country as its crude steel production in 2018 surpassed Japan’s production. In 2018, Japan Produced around 104.3 MT steel. India's steel output was at 106.5 MT in 2018, up by 4.9 per cent from 101.5 MT in 2017. This gives a good indication that the government's target of 300 MT capacity by 2030 can be achieved if this growth continues. Majority of this growth is coming from domestic consumption, unlike other nations who are dependent on exports for growth. Over the last three years, India's per capita steel consumption has increased to 68 kg from 58 kg, but still, it is far behind the world's average of around 213 kg. 

Global crude steel production in 2018 grew to 1,808.6 MT as against 1,729.8 MT in the previous year. China with 928.3 MT production is the world’s largest crude steel producers contributing around 51.3 per cent to world production. With increased infrastructure activity in the country, government’s impetus for affordable housing, and the growing auto sector, the demand for steel is expected to grow, going forward 

Strides On Shopping Spree, Also To Divest Australian Biz 

Strides Pharma Science’s step-down subsidiary Strides Pharma Canada has entered into an arrangement to acquire 80 per cent stake in Pharmapar Inc., a Canada-based specialised generics front-end company. Canada is a new market for the company and one of top 10 global pharmaceutical markets. The Canadian generic market is estimated at US$21 billion with a significant share of generics through retail pharmacies, according to IQVIA. This acquisition would cost Strides around CAD 4 million. 

Also, its board of directors and its step-down subsidiary Strides Pharma Global Pte Limited, Singapore have approved to convert their 50:50 JVs with Vivimed to 100 per cent ownership. In addition, to strengthen its position in the US market, the company is acquiring 100 per cent stake in Vensun Pharmaceuticals, Inc. This acquisition would help Strides to get access to additional 16 approved ANDAs and 12 files pending approvals. The base consideration for this acquisition is US$ 18 million. 

Besides these acquisitions, the company has approved the sale of its Australian business including Arrow to the newly merged entity of Arrow-Apotex (Arrotex) after a review of Strides corporate strategy and the Australian market. Consequently, the company would enter into a 10-year preferred supply agreement with the merged entity, which would result in a potential annual EBITDA of AUD 15-20 million. The proceed from this divestment would be utilised to pare US$ 150-160 million of term debt of Strides which will strengthen its balance sheet. Also, it will infuse around US$ 90-100 million as growth capital for other operating markets of Strides. 

Strides Pharma Science is a pharma company having interests in development and manufacture of IP-led niche finished dosage formulations. The company is among the world’s largest manufacturers of soft gelatin capsules. 

L&T Pat Jumps 37 Per Cent 

Larsen & Toubro reported its results for the quarter ended December 31, 2018. The company's consolidated revenue for the quarter came in at Rs 35708.87 crore as against Rs 28747.45 crore in the corresponding quarter last year, registering 24.2% yoy increase. International revenue during the quarter stood at Rs 11,476 crore and constituted 32% of the total revenue, lower than 35% in the previous year. 

The company secured total orders amounting to Rs 42,233 crore during Q3FY19. It has witnessed delays in order awards due to deferment of select prospects in project businesses mainly in transportation infrastructure, heavy civil infrastructure and power business. International orders contributed 27% to the total order book amounting to Rs 11454 crore. The consolidated order book stood at Rs 284,049 crore as on December 31, 2018, up by 5%. The EBITDA for the quarter rose by 27.2% yoy to Rs 3996.31 crore as against Rs 3141.26 crore in the corresponding quarter last year, with a corresponding margin expansion of 26 bps. The EBITDA margin for the quarter stood at 11.2%. 

The PAT for the quarter came in at Rs 2041.62 crore, as against Rs 1489.98 crore in the corresponding quarter last year, an increase of 37% yoy. 

Spencer Retail Lists On Bourses 

The shares of Spencer Retail listed on the bourses on Friday following the demerger of CESC. The listing comes after the restructuring of CESC and seven other subsidiaries of RPS-Goenka Group companies. The company's board had approved a restructuring program in May 2017. The restructuring aims to simplify the company's corporate structure, enhance efficiencies and unlock shareholders’ value. CESC Limited is split into four entities focusing on four sector power generation, power distribution, organized retail and other ventures. Three of the four entities will be listed on the stock exchanges. 

Spencer Retail is an organised food-based multi-format retailer. The company registered operating revenues of Rs 2,073 core in FY18, with 146 stores in 36 cities. It operates ~1.3 mn sq. ft. retail business area. The company has a strong presence in north, south, eastern states. 

CESC is a Kolkata-based integrated power generation company of the RP-Sanjiv Goenka Group. The reported operating revenue of Rs 16,161 crore in FY18. CESC Ventures will take care of BPO, FMCG and real estate businesses of erstwhile CESC. 

Cipla On 52-Week Low Despite Approval For Generic Depo-Provera 

The pharma major Cipla was experiencing selling pressure recently. The company informed the bourses that it has received final USFDA approval for medroxyprogesterone injectable. 

The drug medroxyprogesterone injection is used to prevent pregnancy. Cipla's medroxyprogesterone injectable is generic therapeutic equivalent of Pfizer’s DepoProvera. As per IQVIA data, Depo-Provera has a market size of around US$159 million per annum, as of November 2018. 

Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets. During the recent quarter Q2FY19, the company’s revenue mix comprises of domestic sales (42 per cent0 and International sales (57 per cent). During the recent quarter Q2FY19, the company’s revenue mix comprises of domestic sales (42 per cent0 and International sales (57 per cent).ACs etc. 

V2 Retail Posts Robust Numbers For Q3FY19 

V2 Retail Limited reported its results for the quarter ended December 30, 2018. 

The company's standalone revenue for the quarter came in at Rs 241.07 crore as against Rs 152.35 crore in the corresponding quarter last year, registering 58.2 per cent YoY increase. As per the management, the revenue growth was driven by festive season which included Durga Puja and Navratra, Diwali and wedding season. 

The EBITDA for the quarter rose by 34.7 per cent YoY to Rs 30.55 crore as against Rs 22.68 crore in the corresponding quarter last year, with a corresponding margin contraction of 221 bps. EBITDA margin for the quarter stood at 12.7 per cent. 

The PAT for the quarter came in at Rs 23.59 crore as against Rs 13.66 crore in the corresponding quarter last year, YoY increase of 72.7 per cent. 

During the quarter, the company opened six new stores and closed two stores. It operates 74 stores spread across 17 states and 69 cities with the total retail area of more than 8.75 lakh sq.ft. The company intends to focus on Tier 2 and Tier 3 cities which have large potential.