Avantel Q2 Consol Net profit up 42% Y-o-Y to Rs 22.89 Cr

Key Takeaways from Avantel Limited’s Financial Performance:

• Avantel Limited reported a 42.44% increase in consolidated net profit, reaching Rs 22.89 crore for the quarter ended September 2024, up from Rs 16.07 crore last year.
• The company’s revenue from operations jumped 42.5% year-on-year to Rs 77.42 crore in Q2 of FY 2024-25.
• Profit before tax (PBT) rose to Rs 31.50 crore, a 41.89% increase compared to Rs 22.20 crore in Q2 FY24.
• Total expenses increased 42.71% year-on-year to Rs 46.41 crore, with significant rises in material and employee costs, although finance costs decreased.

The company’s revenue from operations increased by 42.5% year-on-year to Rs 77.42 crore in Q2 of FY 2024-25. Profit before tax (PBT) also rose to Rs 31.50 crore, up 41.89% from Rs 22.20 crore in Q2 FY24.

Total expenses grew by 42.71% year-on-year to Rs 46.41 crore in Q2 FY25. The cost of materials consumed was Rs 25.77 crore (up 82.38%), while employee benefits rose to Rs 16.08 crore (up 82.31%). However, finance costs decreased to Rs 0.71 crore, down 52.98% from the previous year.

About Avantel Limited:

Avantel has been supporting the strategic sector for three decades, providing unique products and solutions to the Indian Defence Services and related organisations. In its early years, the company focused on manufacturing essential components for radios. Since the early 2000s, Avantel has shifted its focus to offering system-based solutions across four key areas: Satellite Communications, HF Communications, Electronic Warfare, and Radar systems. Currently, the company is working on expanding its product range by developing SCA-compliant Software Defined Radios, High Power HF systems, Air Defence Radars, and Small Satellites.

Key Takeaways from CG Power Acquisition:

• CG Power has signed an agreement to acquire the Radio Frequency (RF) components business from Renesas Electronics Corporation.
• The deal, executed on October 4, 2024, is valued at approximately USD 36 million and includes intellectual property and select employees.
• The acquisition requires approvals from the Committee on Foreign Investment in the United States and is expected to be completed within six months.
• The move marks CG Power's entry into the semiconductor design sector, strengthening its position in a high-growth market.

The asset purchase agreement was executed on October 4, 2024, with Renesas Electronics America Inc. and its affiliated entities.

The acquisition will be made through one or more subsidiaries to be established by CG Power. It involves acquiring intellectual property, tangible assets, and select employees from the RF components business, which generated annual revenue of approximately USD 56 million in 2023.

The acquisition is subject to regulatory approvals, including from the Committee on Foreign Investment in the United States. It is expected to be completed within six months, and the transaction will be funded in cash, amounting to about USD 36 million, subject to customary adjustments.

About CG Power and Industrial Solutions Limited: 

CG Power and Industrial Solutions Limited is an engineering conglomerate headquartered in Mumbai, India, recognized as a leader in the Electrical Engineering Industry. Founded in 1937, the company has pioneered the management and application of electrical energy, maintaining its leadership position for over eight decades. CG Power offers a diverse portfolio of products, solutions, and services for power and industrial equipment, catering to various industries both in India and globally.

With world-class manufacturing facilities across nine locations in India and one in Sweden, CG Power has established a comprehensive network that includes five regional offices and 14 branch offices, employing approximately 3,113 people. The company’s extensive offerings range from induction motors, drives, transformers, and switchgears to traction motors and propulsion systems for the Indian Railways. Recently, CG Power has also ventured into consumer appliances, such as fans, pumps, and water heaters. Its portfolio is structured into two primary business lines: Industrial Systems and Power Systems, enhancing numerous aspects of industrial and personal life.

About Renesas Electronics Corporation Limited: 

Renesas Electronics Corporation Limited is a trusted provider of semiconductor solutions that help create smart, connected devices, improving everyday life and work. As a global leader in microcontrollers, analog products, power solutions, and system-on-chip (SoC) technology, Renesas offers a wide range of solutions for various sectors, including automotive, industrial, home electronics, office automation, and communication technology. Their innovations aim to build a limitless future.

Key Takeaways from the Announcement

• The Ministry of Information and Broadcasting granted approval for the transfer of licenses.
• The scheme became effective from October 3, 2024, with an appointed date of April 1, 2023.
• Network18 will issue new shares to shareholders of TV18 and E18, based on specified ratios.
• Shareholders in physical form must submit required details by October 8, 2024, to receive their shares in dematerialised form, failing which, their shares will be held in trust.

The Ministry of Information and Broadcasting, Government of India, has approved, as reported through a stock exchange filing, the transfer of licenses for News & Current Affairs TV channels under the scheme from TV18 to Network18.

The scheme has, following this sanction, all the previous conditions precedent to the scheme referred to in Clause 25 satisfied and becomes effective from October 3, 2024. The scheme was itself notified with an appointed date of April 1, 2023. Under this amalgamation plan, Network18 shall allot shares amongst the shareholders of TV18 and E18 as part of the share allotment plan.

Network18 will distribute new shares to the shareholders of its subsidiaries, TV18 and E18, under the approved scheme. For every 172 shares of TV18 that are worth ₹2 each, shareholders will receive 100 equity shares of Network18, valued at ₹5 each. Similarly, for every 1 share of E18 worth ₹10 each, shareholders will receive 19 Network18 shares, also valued at ₹5 each. This share distribution is part of the reorganisation process under the Composite Scheme of Arrangement.

The company has declared a record date for determining the qualifying shareholders of TV18 and E18 for the issue of shares, which is October 16, 2024.

Shareholders holding physical shares are requested to send the requisite information to KFin Technologies Limited by October 8, 2024. Lack of receipt of information will make Network18 hold shares for and on behalf of shareholders till the time the relevant information is received.

About Network18 Media & Investments Limited

Network18 Media & Investments is a diversified media and entertainment company involved in digital content, print, and allied businesses. As India’s only media conglomerate with a presence across the full spectrum of content genres—news, entertainment, sports, movies, and live entertainment—Network18 operates across multiple platforms, including TV, digital, cinemas, and on-ground events.

Key Details of the Acquisition

• The acquisition provides for the commencement of activities in research and preclinical development in biologics and ADCs by Jasmin, a société par actions simplifiée established by Pierre Fabre.
• The acquisition aims to expand Jubilant Biosys' service offerings in emerging technologies and establish a stronger R&D presence in Europe to better serve European and US markets.
• The acquisition is expected to be finalised by the end of December 2024.

As per a stock exchange filing, the transaction involves an investment of up to €4.4 million for the 80% stake, with JBIRSPL committing to infuse this amount over a period of two years.

Jasmin was incorporated on September 11, 2024. It will assume Pierre Fabre's R&D Centre. Situated in Saint Julien, France, this centre consists of grounds, buildings, and almost 40 employees from the existing operations of Pierre Fabre's R&D.

The acquisition is not classified as a related party transaction, and there are no interests from promoters or group companies in the entity being acquired. It is subject to customary closing conditions and regulatory approvals, including Foreign Direct Investment approval from the French government.

About Jubilant Pharmova Limited

Jubilant Pharmova Ltd. is a global pharmaceutical company having three main business segments: pharmaceuticals, contract research and development services, and proprietary novel drugs. 

The Radiopharma segment accounted for about 44% of the total revenues for the nine-month period ended FY24. Jubilant Pharmova is the third largest producer of radiopharmaceuticals in the US, with the second-largest network of radiopharmacies in the United States, which operates in 46 locations. Notable products out of those that did particularly well within this time frame during this period include Mertiatide, sulphur colloid, and cardiac-imaging product Ruby-Fill. The company seeks to sustain its leadership in the North American market.