Suzlon Energy Limited (SEL), a leading name in the renewable energy sector, has announced a restructuring of its step-down subsidiaries. The company has merged two of its wholly owned subsidiaries—Suzlon Energy B.V. (SEBV) and SE Blades Technology B.V. (SBT)—into AE Rotor Holdings B.V. (AERH), effective February 14, 2025.

This strategic move aims to streamline Suzlon’s group structure and enhance operational efficiency.

Entities Involved in the Merger

The transaction involves the following subsidiaries of SEL:

1. Suzlon Energy B.V. (SEBV)
   • Relationship with Suzlon: Step-down wholly owned subsidiary
   • Net worth (as of March 31, 2024): ₹0.10 crore
   • Gross total income (FY24): Nil
2. SE Blades Technology B.V. (SBT)
   • Relationship with Suzlon: Step-down wholly owned subsidiary
   • Net worth (as of March 31, 2024): ₹(28.55) crore
   • Gross total income (FY24): Nil
3. AE Rotor Holdings B.V. (AERH)
   • Relationship with Suzlon: Step-down wholly owned subsidiary
   • Net worth (as of March 31, 2024): ₹(174.65) crore
   • Gross total income (FY24): ₹6.78 crore

Reason for the Merger

To optimise the group’s structure, to de-layer and to improve operational efficiencies, SBT and SEBV have been merged into AERH. 

Nature of the Transaction

The merger falls under related party transactions as all three entities are step-down wholly owned subsidiaries of Suzlon Energy Limited. However, since the amalgamation does not involve any consideration exchange, the arm’s length provision is not applicable.

Impact on Shareholding Structure

As AERH already held full ownership of SEBV and SBT, the merger does not result in any change in the shareholding pattern of Suzlon Energy Limited.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s largest IT services company, Tata Consultancy Services (TCS) is gearing up to distribute salary hike letters for the financial year 2025. News reports indicate that the increments will range between 4%-8%, with revised salaries expected to be reflected in April 2025.

This announcement comes shortly after Infosys, another IT giant, declared that its employees would receive their salary increments by the end of February 2025. The development highlights a shift in salary trends across the IT sector, as companies navigate economic headwinds and changing business dynamics.

IT Industry’s Shift from Double-Digit Hikes

The IT sector has witnessed a decline in salary hikes from the double-digit growth rates seen during the COVID-19 period. In FY22, TCS offered an average hike of 10.5%, whereas in FY24, the increments were 7-9%. The latest salary revision for FY25 is expected to be even lower, reflecting the broader trend of cost optimisation within the industry.

As of February 18, 2025, TCS holds a market capitalisation of ₹14.02 lakh crore, reinforcing its position as India’s largest IT company.

Salary Hikes Tied to Return-to-Office Compliance

One of the key factors influencing salary increments this year is compliance with the return-to-office (RTO) mandate. TCS has reportedly linked salary hikes and variable pay to employees’ adherence to its hybrid work policies. Employees who have followed the RTO policy are more likely to receive higher increments, indicating a shift in corporate priorities towards workplace presence.

In February 2025, TCS also released its quarterly variable pay (QVP) for the October-December quarter. While many junior and mid-level employees received 100% of their variable pay, senior employees saw lower payouts, ranging between 20-40%.

A Changing Landscape for IT Salaries

With global economic conditions remaining uncertain and companies prioritising cost efficiency, salary increments in the IT sector are expected to remain conservative in the near future. The trend suggests that performance-based pay, adherence to workplace policies, and overall industry health will play a crucial role in determining employee compensation going forward.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

StarBigBloc Building Material Ltd, a wholly-owned subsidiary of BigBloc Construction Limited, has announced the acquisition of land for a greenfield AAC Block manufacturing facility in Indore, Madhya Pradesh. This strategic move is expected to enhance the company’s presence in central India, catering to the growing demand for sustainable construction materials.

Share price of BigBloc Construction was down by 4.84% as of 12:55 PM on February 18, 2025. 

Land Acquisition Details

The company has secured approximately 57,500 sq. mts. of land at Gram Nimrani, Tehsil Kasrawad, District – Khargone, Madhya Pradesh for this expansion. The total cost of the land acquisition, including stamp duty, is estimated at ₹6 crore. The new facility will focus on the production of AAC Blocks, a widely preferred eco-friendly building material known for its lightweight, thermal insulation, and fire resistance properties.

Existing Operations and Expansion Plans

Currently, StarBigBloc operates an AAC Block manufacturing plant in Kheda, near Ahmedabad, with an installed capacity of 250,000 cubic meters per annum. This facility serves key regions, including:

• Most parts of Gujarat
• Udaipur in Rajasthan
• Indore in Madhya Pradesh

During Q3-FY25, the capacity utilisation of this plant stood at 75%, reflecting strong demand in existing markets. The new Indore facility is expected to strengthen market penetration in Madhya Pradesh and its surrounding regions.

Financial Performance and Reasons for Tepid Earnings – BigBloc Construction Ltd (Q3 & 9M-FY25)

1. Revenue Performance:
   • Q3-FY25 Revenue: ₹568 Mn (down 7.6% YoY from ₹615 Mn in Q3-FY24)
   • 9M-FY25 Revenue: ₹1,601 Mn (down 8.7% YoY from ₹1,753 Mn in 9M-FY24)
2. Profitability:
   • EBITDA:
     • Q3-FY25: ₹61 Mn (down 62.3% YoY)
     • 9M-FY25: ₹235 Mn (down 46.1% YoY)
   • EBITDA Margins:
     • Q3-FY25: 10.74% (down from 26.34% in Q3-FY24)
     • 9M-FY25: 14.68% (down from 24.87% in 9M-FY24)
3. Net Profit (PAT):
   • Q3-FY25 PAT: ₹3 Mn (down 96.5% YoY from ₹86 Mn)
   • 9M-FY25 PAT: ₹35 Mn (down 84.1% YoY from ₹220 Mn)

Reasons for Tepid Earnings Performance

Lower Demand Due to Festive & Political Season: Q3-FY25 demand declined due to Diwali and Maharashtra state elections, affecting sales and order execution.

Lower Capacity Utilisation: Overall capacity utilisation stood at 53%, with Umargaon plant scaling up gradually and Siam Cement BigBloc at only 11%.

Subsidiary Loss Impact: Siam Cement BigBloc reported a ₹46.8 Mn loss, significantly impacting overall financial performance.

Increase in Costs: Operating expenses rose 11.9% YoY in Q3-FY25 and 3.7% YoY in 9M-FY25, while higher finance costs (₹110 Mn vs ₹65 Mn) weighed on profitability.

Technology Upgradation & Expansion Costs: Umargaon plant upgradation in October 2024 led to lower output, while Wada plant’s Phase 2 expansion doubled capacity but added investment costs.

One-Time Costs & Higher Depreciation: Depreciation rose 51.9% YoY in Q3-FY25 and 38.2% YoY in 9M-FY25, with new product launches and JV costs further impacting margins.

Competitive Pricing Pressure: Increased competition in the AAC block industry resulted in lower pricing power and compressed EBITDA margins.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

In a significant stride towards strengthening India’s advanced battery manufacturing capabilities, the Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited. 

The agreement, signed on February 17, 2025, grants Reliance New Energy a 10 GWh capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). This follows a global competitive tender process and aligns with the government’s larger objective of promoting self-reliance in battery production.

The share price of Reliance Industries was trading 0.12% higher as of 12:34 PM on February 18, 2025.

The National Programme on Advanced Chemistry Cell (ACC) Battery Storage

This latest agreement marks another key milestone in the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, which was approved by the Cabinet in May 2021 with a total outlay of ₹18,100 crore. The scheme targets a total manufacturing capacity of 50 GWh, of which 40 GWh has now been allocated to four selected firms. The first round of bidding, conducted in March 2022, awarded 30 GWh to three firms, with Programme Agreements signed in July 2022.

The PLI ACC scheme is designed to provide technology-agnostic incentives, enabling firms to establish state-of-the-art battery manufacturing facilities. The objective is to enhance domestic value addition, reduce dependence on imports, and ensure that India’s battery production remains globally competitive.

PLI ACC Scheme’s Role in Strengthening India’s Energy Sector

At the signing ceremony, senior MHI officials reiterated that the PLI ACC scheme is expected to play a pivotal role in boosting India’s clean energy and e-mobility sectors. Beneficiary firms have the flexibility to adopt advanced technologies and optimise production inputs, allowing them to cater to the growing demand for electric vehicle (EV) batteries and renewable energy storage solutions.

Furthermore, the Union Budget for FY 2025-26 has introduced additional measures to accelerate domestic battery manufacturing. Notably, 35 additional Capital Goods for EV battery manufacturing have been exempted from Basic Customs Duty (BCD). This strategic move aims to promote the production of lithium-ion batteries within India while further reinforcing the government’s commitment to strengthening domestic manufacturing and fostering a self-reliant energy ecosystem.

Growing Investments in India’s Battery Ecosystem

The Government of India continues to encourage innovation and investment in battery technology by providing an enabling environment for foreign direct investment (FDI) and the development of a robust domestic supply chain. As a result, the initiative has become a catalyst for Indian cell manufacturers, with over 10 companies already setting up battery manufacturing facilities beyond the PLI beneficiaries. The total additional planned capacity now exceeds 100 GWh, further cementing India’s position as a key player in the global battery manufacturing landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Boubyan Bank, a leading Islamic bank in Kuwait, has taken a significant step towards modernising its transaction banking capabilities. The bank has successfully implemented the second phase of Intellect Global Transaction Banking’s (iGTB) eMACH.ai Digital Transaction Banking (DTB) solution. 

Intellect Global Transaction Banking (iGTB) is the transaction banking business unit of Intellect Design Arena Ltd. This move is part of Boubyan Bank’s strategy to become the principal bank for corporate clients in Kuwait, offering enhanced digital solutions for businesses across various industries.

The share price of Intellect Design Arena was trading 3.60% lower as of 12:26 PM on February 18, 2025.

Industry-Specific Solutions for Enhanced Financial Management

The eMACH.ai platform provides tailored financial solutions for industries including oil and gas, telecom, fintech, real estate, manufacturing, and trading services. Each sector benefits from digital innovations designed to improve operational efficiency and financial oversight:

• Telecom – Streamlined cash flow management and financial visibility for billing and revenue collection.
• Fintech – Scalable, secure financial services supporting rapid growth and digital transactions.
• Real Estate – Enhanced receivables reconciliation and improved cash flow management.
• Trading Services – Real-time financial insights for optimised working capital and seamless cross-border transactions.
• Oil and Gas – Advanced liquidity management and cash flow tracking to navigate market fluctuations.

Key Offerings Driving Market Differentiation

Boubyan Bank’s adoption of Intellect’s eMACH.ai Wholesale Banking platform enables a host of digital banking features designed to enhance corporate banking services:

1. Liquidity Management – Automated cash position tracking across multiple accounts and entities for optimal liquidity utilisation.
2. Receivables Management – Streamlined cash inflows with automated reconciliation, improving transaction tracking and operational efficiency.
3. Digital Receivables Solution (EPay) – A payment link QR code solution accelerating debt collection, strengthening financial supply chains.
4. Enterprise-Grade Mobility Solutions – Secure access to financial tools, enhancing operational efficiency for businesses.
5. Seamless Treasury Operations – Full digitisation of payments and treasury functions through ERP and Treasury Management System integration.

Pioneering Innovation in Kuwait’s Banking Sector

Boubyan Bank’s investment in digital transformation aligns with its long-term strategy of enhancing customer experience and expanding its corporate banking capabilities. According to Abdul-Salam Mohammed Al-Saleh, CEO – Corporate Banking, Financial Control, Treasury and Legal Affairs, “Digitisation will enable our customers in Kuwait to enjoy the benefits of modern transaction banking and cash management services while we ensure these solutions meet our Sharia principles and beliefs as well. This go-live is another milestone showcasing our commitment to our commercial customers by providing comprehensive cash management and transaction banking capabilities to further strengthen our leadership position in the market.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Mahanagar Gas Limited (MGL) holds a dominant position in the gas distribution sector in Greater Mumbai. The company primarily thrives on its compressed natural gas (CNG) business, which forms the bulk of its revenue. Additionally, MGL supplies piped natural gas (PNG) to industrial, commercial, and residential consumers, expanding its footprint in the clean energy sector.

BMC’s Directive to Switch to Clean Fuel

In a significant development, the Brihanmumbai Municipal Corporation (BMC) has mandated that all eateries, bakeries, hotels, and roadside vendors transition to clean, natural, and eco-friendly fuel sources by July 8, 2025. This directive follows Mumbai’s consistent struggle with deteriorating air quality, especially post-monsoon in October 2024.

The move also aligns with the Bombay High Court’s (HC) order from January 9, which granted a 6-month period for commercial establishments to make the switch. The civic body has made it clear that strict action will be taken against those failing to comply with the new guidelines.

Impact on Businesses and Pollution Control Measures

According to the BMC, burning wood and coal releases hazardous emissions that worsen air quality and contribute to an increase in respiratory illnesses. The directive is aimed at reducing these emissions and promoting the use of cleaner alternatives like CNG and PNG.

Civic officials estimate that bakeries alone contribute nearly 6% of Mumbai’s total pollution, and over the past six months, 29 bakeries have already transitioned to using natural fuel. The new regulation is expected to accelerate this shift, impacting a large number of businesses across the city.

MGL Poised to Benefit from Increased PNG Adoption

As commercial establishments move towards CNG and PNG, MGL stands to benefit from increased demand. The directive could drive higher consumption of PNG, reinforcing MGL’s position as the leading gas distributor in Mumbai.

Reflecting the positive sentiment, MGL’s share price rose by 0.88% as of 9:53 AM on February 18, 2025. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.