From the
CHAIRMAN'S DESK
Dear Members,
2023-24 has been excellent for the Indian economy. While the global
economy increased at 3.2% for calendar year 2023, India's real GDP grew at 7.6% in
2023-24. I am proud to say that it is the highest growth rate among all major economies in
the world, including China. And this has been so not only in 2023-24, but also in the
previous year.
The Reserve Bank of India (RBI) has forecast India's GDP growth
for 2024-25 at 7% which seems to be conservative .
I, for one, expect higher growth. But even at 7%, it will make India
the fastest growing large economy in 2024-25, for the third year in a row.
As you know, your Company, along with its
subsidiaries, manages a diversified portfolio of businesses that accounts for information
technology (IT) services, business process services (BPS), fast moving consumer goods
(FMCG) including ayurvedic formulations, real estate and sports. Other than IT services,
which constitute its standalone operations, all other businesses are carried out through
subsidiary companies.
Let me first share the highlights of the standalone operations, i.e. IT
consultancy and support services in power generation and distribution sectors.
- It deploys best-in-class IT solutions across existing and emerging
technologies — which is reflected in its having intellectual property rights over
more than 350 applications. These capabilities are enhanced by a strong team with diverse
skills.
- At present, the IT applications focus on the entire range of
activities carried out by power utilities: electricity billing, online consumer services,
monitoring, MIS reporting and the management of generation and distribution assets. In
addition, there are applications that can be utilised across other industries.
- In 2023-24, such IT services were provided to various group entities
including CESC Limited, Haldia Energy Limited, Dhariwal Infrastructure Limited and the
Group's distribution franchisees in Rajasthan and Maharashtra.
Now let me turn to the activities and performance of the subsidiary
entities.
Business Process Services (BPS)
- Your Company is present in BPS through its subsidiary Firstsource
Solutions Limited, a publicly listed entity on Indian stock exchanges. It holds 53.66%
stake in Firstsource.
- Firstsource is a leading provider of transformational solutions and
services across industries such as Healthcare, Banking and Financial Services,
Communications, Media and Technology.
- With about 28,000 employees operating from 40 facilities in the US,
the UK, Mexico, India, Australia and the Philippines, Firstsource is a trusted growth
partner for over 150 leading global brands, including several Fortune 500 and FTSE 100
companies.
As examples
- In Banking and Financial Services, its client list includes 6 of the
top 10 US credit card issuers, 3 of the top 6 retail banks in the UK, 5 of the top 15
mortgage service providers and 5 of the top 15 mortgage lenders in the US.
In Healthcare: 7 of the top 10 health insurance / managed care
companies in the US; and over 1,000 hospitals in the US.
- In Communication, Media and Technology: 1 of the top 2 broadcasting
and media companies in UK, 2 of the top 5 telecom and broadcasting company in the US, and
3 of top 5 consumer tech companies in the US.
- In Utilities: 2 of the top 4 utility companies in the UK.
During 2023-24, Firstsource's total income (including other
income) increased by 3.57% to Rs.6,373 crore. PBT grew at 2.35% to Rs.630 crore. PAT was
at Rs.515 crore.
Fast Moving Consumer Goods (FMCG)
- Your Company has a presence in the FMCG business through its wholly
owned subsidiary Guiltfree Industries Limited (GIL). GIL is present in the packaged snacks
and personal care segments through its brands ‘Too Yumm', ‘Naturali'
and ‘Within Beauty' respectively. GIL also has a 70% stake in Rajkot-based
Apricot Foods Private Limited, which markets snacks under the brand name
‘Evita'.
- Given the huge untapped potential for the packaged snacks segment in
India, your Company believes that the medium to long term fundamentals of the business
remains strong. And it expects increases in business volumes and, therefore, steadily
improving performance.
Ayurveda
- Your Company is present in this segment through its wholly owned
subsidiary, Herbolab India Private Limited. With a 150-year legacy, Herbolab has over 100
proprietary Ayurveda formulations across categories such as immunity, weight management,
respiratory, women's health and men's health — all approved by the Ministry
of AYUSH. This is a vertically integrated business with a state-of-the-art manufacturing
facility at Silvassa (Dadra and Nagar Haveli). It also has an R&D centre in Thane,
Maharashtra.
- Herbolab's products are marketed under the brand ‘Dr.
Vaidya's', which has emerged as one of India's largest Ayurveda brands in
the direct-to-consumer (D2C) space.
- In 2023-24, it launched Apple Cider Vinegar juice and effervescent;
as well as two new brands to tap into newer audiences and markets. These were: (i)
‘three60', with six products, which focuses on relieving stress and its
manifestations such as sleep, gut, focus and performance related issues; and (ii)
‘three60+', with four products, which caters to chronic illnesses such as
arthritis, joint pain and mobility issues.
Real Estate
- Quest Properties India Limited (QPIL), a wholly-owned subsidiary of
your Company, launched Kolkata's first upscale shopping mall, ‘Quest', in
November 2013.
Over the years, ‘Quest' has become an iconic shopping centre
brand, winning several awards and accolades.
- In 2023-24, Quest forayed into beauty retail with launch of an
exclusive ‘Beauty Zone' with modern design and state- of-the art shops covering
around 9,000 square feet.
- QPIL is also developing a residential project in Haldia spread over
3.5 acre of land. The first phase of this project is complete and almost all units have
already been sold.
- QPILs total income grew by about 10.5% to Rs.154.65 crore in 2023-24.
Profit before tax (PBT) increased by about 37.5% to Rs.70.07 crore.
Sports
- Your Company's presence in the sports business is through its
subsidiary companies: APA Services Private Limited, RPSG Sports Private Limited and RPSG
Sports Ventures Private Limited.
- APA's subsidiary Kolkata Games and Sports Private Limited holds
80% stake in ATK Mohun Bagan Private Limited, which operates and manages the iconic
football club Mohun Bagan Super Giant.
- Your Company holds a 51% stake in RPSG Sports Private Limited, which
holds the right to own and operate Lucknow Super Giants — the Lucknow franchise of
the Indian Premier League, the country's preeminent men's T20 cricket
tournament. The remaining 49% stake is held by an unlisted company of the Group.
- Your Company also holds a 51% stake in RPSG Sports Ventures Private,
which holds 100% stake in RPSG Sports South Africa PTY Limited (RPSG SA). RPSG
SA holds the right to own and operate Durban Super Giants — the
Durban franchise of the South Africa T20 League (SA20). The remaining 49% stake is held by
an unlisted company of the Group.
It is now time to share the consolidated financial results of your
Company for 2023-24.
- Total consolidated income (including other income) of your Company
grew by 9.6% to Rs.8,006.5 crore in 2023-24.
- Total expenses, which includes operating and other expenses, employee
costs, depreciation and finance costs, grew at 5.7% to Rs.7,628.5 crore in 2023-24.
- As a result, profit before tax (PBT) more than tripled to Rs.376.8
crore in 2023-24. And profit after taxes (PAT) for the year stood at Rs.197 crore.
All in all, 2023-24 has been a good year for your Company. Given that
we expect a real GDP growth rate of at least 7% in 2024-25, I expect the results to be
just as good, if not better. There are upsides in all the businesses — be it IT, BPS,
FMCG, Ayurveda, Real Estate and Sports. We need to recognise the upsides and leverage
these better. As I am sure your Company will do. Because, good as it has been, it deserves
better.
Thanks once again for your support.
With my best wishes,
Yours sincerely,
Dr Sanjiv Goenka
Chairman