Valor Estate Completes Strategic Land Sale and Reduces Debt Significantly

Key Takeaways from the Announcement

• Valor Estate sold a 22,135 sq. meter land parcel to Prestige Estate; proceeds were used to reduce significant debt.
• Horizontal Ventures Pvt. Ltd. took ₹20.17 crore from Man Vastucon LLP. This helped increase the revenue flow.
• Valor's Debt-to-Equity Ratio is now at 0.34x (0.23x for real estate), the lowest in the industry.

The land parcel measuring 22,135 square meters in Village Mahajanwadi, Thane district, was sold for ₹262.42 crore. This is a vital step for Valor Estate on its journey to attainment of reduced debt burdens.

Valor Estate's subsidiary, Horizontal Ventures Pvt. Ltd., has an economic interest of 92.85% and received an additional ₹20.17 crore from Man Vastucon LLP, which includes an ongoing revenue-sharing arrangement related to property.

The entire consideration has been received, allowing Horizontal to redeem Non-Convertible Debentures (NCDs) totalling ₹234.68 crore. This transaction has substantially reduced the company’s debt, bringing the standalone secured debt at Valor Estate to zero and the consolidated secured debt to ₹1,650 crore, including ₹535 crore from hospitality ventures. The company’s Debt-to-Equity Ratio, as of September 30, 2024, stands at 0.34x, or 0.23x specifically for the real estate business, positioning it among the lowest in the industry.

This sale aligns with Valor Estate's strategic objective to achieve a debt-free status at the consolidated level in the near future.

About Valor Estate Limited

The company was incorporated in 2007, and the principal business activity had been construction, development of real estate, and undertaking related activities. The projects were mostly located in and around Mumbai at different stages of planning and under construction.

Key Takeaways from the Announcement

• HCLTech and ServiceNow have launched an AI & Cloud Native Lab in Noida, adding to HCLTech’s global AI Lab network.  
• Labs will help clients leverage GenAI and agentic AI for enterprise service management and industry-specific solutions.  
• The initiative reflects the companies' 12-year collaboration to advance AI capabilities for businesses.  

The new AI Lab builds on the 12-year partnership between HCLTech and ServiceNow, focusing on leveraging GenAI and agentic AI to drive efficiencies in enterprise service management (ESM) and vertical-specific applications. Clients can explore proprietary assets, including HCLTech’s AI Force and Enterprise AI Foundry, along with accelerators like ValueNow for GenAI readiness, ComplyNow for security assessments, and AchieveNow for optimising AI outcomes.  

Jagadeshwar Gattu, President of Digital Foundation Services at HCLTech, remarked, “This collaboration reflects our commitment to helping clients adopt and scale AI capabilities early, unlocking efficiencies and driving business transformation.” Michael Park, SVP and Global Head of AI GTM at ServiceNow, added, “Our expanded partnership will accelerate AI adoption in India and the UK, empowering customers to maximise productivity and profitability.”  

Commenting on the announcement, Michael Park, SVP and Global Head of AI GTM at ServiceNow, said “Our expanded partnership with HCLTech will help us to accelerate AI adoption for more customers in the UK and India,” “These Labs will help empower customers to take control of their AI investments and unlock new levels of productivity and profitability across the enterprise.” 

About HCLTech  

HCLTech is a leading global technology company with over 218,000 employees across 60 countries, delivering cutting-edge digital, engineering, cloud, and AI solutions. With consolidated revenues of $13.7 billion for the 12 months ending September 2024, HCLTech serves clients across industries including financial services, healthcare, manufacturing, telecom, retail, and public services. 

Key Takeaways from the Announcement

• Sanjay Dwivedi is appointed as Group CEO of Balaji Telefilms while retaining his role as Group CFO, bringing 30 years of expertise in finance and operations to lead the group’s strategic growth.
• Vimal Doshi has been promoted to COO – Motion Pictures, where he will oversee operations, marketing, and new project development, bolstering Balaji’s film division.
• Balaji Telefilms remains committed to maintaining its legacy in TV production, and innovative films, and expanding digital offerings through its platform, ALT Digital.

A 30-year veteran in the Media & Entertainment and FMCG sectors, Dwivedi has played a pivotal role in Balaji's growth since joining the group in 2013. Over the years, he has spearheaded critical financial initiatives like fund-raising activities, tax optimisations, and Treasury management and has worked extremely closely with the Board and senior leadership.

Additionally, Vimal Doshi former EVP of Distribution & Syndication at Balaji Motion Pictures-will now serve as the newly designated COO for Motion Pictures. In a diverse career spanning over 26 years of working in the film industry and over ten years at Balaji, Doshi has made huge contributions to projects such as theatrical distribution, syndication, and strategic partnerships. He will oversee operating, marketing, distribution, and new project development in the film division in the new role.

Commenting on the leadership changes, Mrs Shobha Kapoor, Managing Director of Balaji Telefilms, said, “We are thrilled to elevate Sanjay and Vimal to these pivotal roles. Sanjay’s exceptional leadership and strategic expertise make him an ideal fit for leading the group as CEO. Vimal’s extensive industry experience will drive the growth of our motion pictures division, especially with exciting films in the pipeline. Under their guidance, I am confident Balaji Telefilms will achieve new milestones and create value for all stakeholders.”  

These strategic changes reflect Balaji Telefilms' commitment to strengthening its presence across television, film, and digital platforms while continuing to deliver impactful entertainment content.  

About Balaji Telefilms Limited  

Balaji Telefilms is a premier entertainment company in India, with good content from television, films, and digital. It has been the undisputed leader in the television space for more than two decades under the leadership of Mrs Shobha Kapoor and Ms Ektaa R Kapoor, with iconic shows like Kyunki Saas Bhi Kabhi Bahu Thi, Kasauti Zindagi Kay, and Naagin under its belt. To name its current hits, there are Kundali Bhagya, Kumkum Bhagya, and Bhagya Lakshmi.

In films, Balaji has delivered critically acclaimed and commercially successful titles such as The Dirty Picture, Ek Villain, and Dream Girl. The company’s digital platform, ALT Digital Media Entertainment, offers premium original content across diverse genres, targeting a digitally savvy audience.  

With a commitment to innovation and quality, Balaji Telefilms continues to set benchmarks in the entertainment industry and remains a household name across India.  

Key Takeaways from the Financial Performance 

• Revenue reached ₹178.1 crore, an 8.8% increase quarter-over-quarter, showcasing strong performance.
• PAT increased by 9.3% QoQ, reaching ₹2.5 crore, with an EPS of ₹2.45, benefiting shareholders.
• Total revenue was ₹341.8 crore, a 0.8% YoY growth, with EBITDA steady at ₹30.9 crore, demonstrating robust operational efficiency.

The EBITDA for the quarter stood at ₹15.7 crore, maintaining a stable EBITDA margin of 8.8%. Profit After Tax (PAT) saw a 9.3% rise, reaching ₹2.5 crore, demonstrating effective cost management.

In H1 FY25, BSL achieved a total revenue of ₹341.8 crore, marking a 0.8% increase year-over-year, with steady operational efficiency as EBITDA remained at ₹30.9 crore. PAT for H1 FY25 stood at ₹4.8 crore, showcasing the company’s resilience and adaptability in the market. 

Speaking on the financial results, Mr. Nivedan Churiwal, Managing Director of BSL Limited, commented, “We are delighted to deliver strong financial results in Q2 FY25, with operating revenue reaching ₹178.1 crore, marking an 8.8% growth on a quarter-over-quarter basis. The company's EBITDA for Q2 FY25 totalled ₹15.7 crore, maintaining a stable EBITDA margin of 8.8%, highlighting BSL's consistent ability to manage operational expenses efficiently. For the quarter, PAT was ₹2.5 crore, reflecting a 9.3% increase from the previous quarter. The half-year FY25 revenue also climbed to ₹341.8 crore, up by 0.8% year-over-year, with EBITDA and PAT at ₹30.9 crore and ₹4.8 crore, respectively, demonstrating strong demand in the market and sound operational execution. We have successfully maintained our growth trajectory by expanding into new markets and strengthening connections with our current customer base, creating a strong foundation for further growth. We have a positive outlook for the upcoming quarter, anticipating improved performance in the domestic and international textile sector, and remain hopeful for continued advancement. Our commitment to enhancing shareholder returns remains unwavering, as we are well-equipped to seize emerging opportunities while adeptly addressing current challenges."

About BSL Limited

BSL Limited is a textile manufacturing company, founded in 1971. Since then, the organisation has grown into a fully integrated spinning, weaving, processing, and manufacturing setup. This year, the company will manufacture over 20 million meters of fabric for markets in India and over 60 other countries. BSL continues to be acknowledged for high-quality synthetic and worsted fabrics using the latest technology of the world to assure delivery of quality, BSL Suiting, and Geoffrey Hammonds. LNJ Bhilwara Group is a diversified conglomerate in which it has interests across textiles, energy, IT services, and more in equal measures.