CREDIT INSIGHT June 4, 2021 - Principal Mutual Fund
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CREDIT INSIGHT June 4, 2021
Monthly Credit Update
Fixed Income: Investment Process
• Monthly Asset
Allocation Matrix
• Benchmark & Peer
Group Analysis
• Daily Performance
Attribution
• Rates: Access to best • Portfolio Laddering • Limit monitoring/
ofInternal/External & compliance
Proprietary • Monthly Review of Risk
• Credit: Exhaustive top Fund Areas
down process combined Management • Global Supervision of
with "bottom up" Risk Processes
issuer selection
Risk
Research
Management
Highlights of the Credit Research Process
Board approved Internal Credit Risk Assessment Policy
“Credit Tracker” list of approved Credits: LT & ST: Bottom Up Approach
Inclusion and sustainability of a credit in the record/list is determined by the established credit
process, which includes two broad areas :
• Approval for new credits (through credit note)
• Review and monitoring of existing credits
“Early in- Early Exit” Identify new promising credits early on, take shorter exposures
Access to in house Equity Team expertise on sector/stock coverage where we take exposureKEY CREDIT NOTES
Housing
Ultratech Reliance Development
Cement Ltd Industries Ltd Finance Corporation
Ltd
Cholamandalam
LIC Housing Bajaj Finance
Investment &
Finance Ltd Ltd
Finance Ltd
The Ramco Astec Lifesciences Larsen And Toubro
Cements Ltd Limited Limited
Grasim Industries
L&T Finance
Limited
LimitedULTRATECH CEMENT LTD
Rating: CRISIL AAA (stable)/A1+ , India Ratings ltd AAA(stable),A1+
Rating change in last month: No change
Sector: CEMENT & CEMENT PRODUCTS
About: Ultratech Cement ltd (‘UCL’) is India’s largest manufacturer of grey cement, ready mix concrete and white
cement in India. It has 12 integrated plants, one clinker plant, 20 grinding units, seven bulk terminals, and
two white cement and putty plants. Its operations span across India, the UAE, Bahrain, Bangladesh and
Sri Lanka. UCL has a market share of 24% in India with 113.35 million tonne per annum (mtpa) capacity.
Operating efficiency is superior, driven by strong consumption norms, efficient logistics (because of pan-
India presence), and captive power capability. During fiscal 2021, UCL, , had a net profit of ` 5462 cr with
operating income of ` 44726 crore, against a net profit of ` 5810 crore with operating income of `41476
crore in fiscal 2020. Adjusted debt/EBITDA was down to 0.5 in Mar'21 from 0.8x in Mar'20
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 44,726 41,476 36,775 30,595 25,092
Operating Income 44,726 42,026 37,303 31,003 25,326
OPBDIT 11,568 9,268 6,784 6,153 5,176
PAT 5,462 5,810 2,432 2,224 2,714
Net Cash Accruals 8,162 8,095 4,185 3,701 3,712
Equity Share Capital 289 289 275 275 275
Adjusted Networth 32,383 27,243 20,866 22,319 22,929
Adjusted Debt 17,784 22,898 22,818 19,480 8,474
OPBDIT Margin (%) 25.9 22.1 18.2 19.8 20.4
Net Profit Margin (%) 12.2 13.8 6.5 7.2 10.7
ROCE (%) 15.5 13.3 10.7 11.5 11.9
PBDIT / Interest &
Finance Charges (x) 8.3 5.0 4.7 5.2 8.6
Net Cash Accruals /
Adjusted Debt (x) 0.5 0.4 0.2 0.2 0.4
Adjusted Debt / Adjusted
Networth (x) 0.5 0.8 1.1 0.9 0.4
Adjusted Debt / PBDIT (x) 1.4 2.3 3.2 3.1 1.4
Current Ratio (x) 1.2 0.9 0.9 1.0 1.6
Total Outside Liabilities /
Adjusted Networth (x) 1.3 1.5 1.7 1.4 0.8
Cash Flow from
Operations _ 6,906 4,212 3,990 4,009
Operating Income /
Gross Block (x) _ 0.9 0.9 0.9 1.0
Gross Current Asset Days 196 79 85 82 78
Debtors Days 21 20 25 26 23
Inventory Days 44 46 43 48 43
Creditors Days 242 130 104 106 99RELIANCE INDUSTRIES LTD
Rating: CRISIL AAA (stable)/A1+, ICRA AAA (stable)/A1+, India Ratings AAA (stable)/A1+, CARE AAA
(stable)/A1+
Rating change in last month: No change
Sector: ENERGY
About: Reliance Industries Limited (RIL) is one of India's largest private sector companies (maket cap > 14lakh
crores as on 31st Jul 2020), with diverse interests, including petrochemicals, oil refining, and upstream oil
and gas E and P.. In the recent past, RIL has diversified into newer businesses which includes organized
retail and digital services. RIL operates one of the most complex refineries globally which improves its
flexibility in terms of crude sourcing resulting in relatively high Gross Refining Margins (GRMs). RIL’s
strength in the petrochemicals business has also grown following large-scale capacity expansions,
including the refinery off-gas cracker, in the previous fiscal and healthy ramp up of operations. The
company’s digital services venture, where it has made sizeable investments, has been gaining
subscribers at a healthy pace since inception. RIL has recently raised a record amount of equity capital
from marquee investors globally which shows the immense strength in its newer businesses which
includes telecom, retail and digital services.
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 245,667 334,933 369,988 289,283 240,363
Operating Income 245,667 334,933 369,988 289,283 240,363
Operating Margin (%) 13.6 15.6 15.8 18.0 18.1
Profit After Tax 31,944 30,903 35,163 33,612 31,425
Net Profit Margin (%) 13.0 9.2 9.5 11.6 13.1
Net Worth 447,672 403,633 390,627 298,660 266,159
Total Debt 193,750 262,345 161,720 122,946 114,970
Debt-Equity ratio (x) 0.4 0.7 0.4 0.4 0.4
HOUSING DEVELOPMENT FINANCE CORPORATION LTD
Rating: CRISIL AAA (stable)/A1+ , ICRA AAA (stable)/A1+, CARE AAA (stable)/A1+
Rating change in last month: No change
Sector: FINANCIAL SERVICES
About: Housing Development Finance Corporation Limited (HDFC), India’s premier housing finance entity, is in
existence for over 40 years. With a presence in banking, insurance and asset management, the HDFC
Group is an important part of the Indian financial services sector. HDFC’s has a strong franchise and has
demonstrated ability to grow in the competitive mortgage finance market, its focus on prime salaried
customers within the home loan segment and its good asset quality indicators over credit cycles. HDFC
has a strong capitalization, moderate gearing and good profitability indicators. During FY2020, HDFC
reported an asset base of Rs. 5,16,800 compared to an asset base of Rs. 4,58,776 crore in FY2019. HDFC
reported Profit After Tax (PAT) of Rs. 17,769 crore during the year ended March 31, 2020 compared to Rs.
9,632 crore during the year ended March 31, 2019.
For FY21, core PBT / core operating profit grew a healthy 15%/17% YoY to INR126b/INR146b, despite an
additional ESOP charge of INR3.4b. Strong disbursement growth (on a low base) of 60% YoY, stable QoQ
spreads at 2.3%, GNPA at 1.98%, and a reduction of 74bp QoQ in stage 2 assets were the key positives for
the quarter. In Mar’21, for the Individual Lending business, collection efficiency (CE) stood at 98.0% on an
overall basis (97.6% in Dec’20) – similar to pre-COVID levels.Parameter (` Crore) Mar-2020 Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Share Capital 346 344 335 318 316
Reported Networth 86,158 77,355 65,265 39,817 34,243
AUM 442,262 402,257 358,721 296,388 260,230
Total assets 525,341 458,770 398,905 336,354 288,749
Total borrowing 419,102 365,266 319,716 279,732 237,639
Interest Income 42,683 38,194 32,542 30,378 27,767
Interest expenses 31,076 27,897 23,544 20,934 19,374
Total income 49,636 42,827 40,598 33,662 31,402
PAT 17,770 9,632 10,959 6,869 6,625
Gross NPA 2 1.18 1.12 0.8 0.7
Net NPA 1.49 0.84 0.8 0.54 0.48
Overall CAR 17.59 19.08 19.16 15.79 16.55
LIC HOUSING FINANCE LTD
Rating: CRISIL AAA (stable)/A1+ , ICRA A1+, CARE AAA (stable)
Rating change in last month: No change
Sector: FINANCIAL SERVICES
About: LIC is the single-largest shareholder in LIC Housing with a stake of 40.31% as on Mar 30, 2020. It is India's
second-largest housing finance company, with 9 regional offices, 23 back offices, and 273 marketing units
in India, and 2 overseas representative offices (1 each in Dubai and Kuwait), as on March 31, 2020. LIC
Housing benefits from LIC's strong brand equity, access to its agency network for origination of loans, and
funding support. LICHF reported 4Q20 Net Income of ` 4.2bn (down 39% y/y; ROE: 9.5%) on lower
margins and higher operating cost with a positive offset on credit costs. Operating profit at ` 8.9B was
down 18% y/y Asset quality worsened slightly with Stage 3 Assets rising to 2.8% (+10bps q/q). AUM
growth was 8% y/y with individual loan growth at 9.4% y/y. High leverage (~12x) and relatively low Tier 1
capital vs. peer group (Tier 1: 12.5%) are the key negatives. These get offset by Stage 2 assets which
declined ~100bps QoQ to 4.7% and LICHF's access to diverse funding sources remains robust as seen in
almost ` 270B capital raising (48% of incremental borrowings) done via debt markets in F20 given the
parentage
Parameter (` Crore) Mar-2020 Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Share Capital 101 101 101 101 101
Reported Networth 18,193 16,259 14,241 11,077 9,146
AUM 207,993 192,995 166,164 143,515 124,371
Total assets 218,333 202,110 172,600 150,244 129,969
Total borrowing 192,014 177,576 150,374 132,077 114,784
Interest Income 19,606 17,256 14,730 13,918 12,279
Interest expenses 14,817 12,892 11,144 10,231 9,303
Total income 19,682 17,341 14,820 14,080 12,484
PAT 2,402 2,431 2,003 1,931 1,661
Gross NPA 2.86 1.54 0.78 0.43 0.45
Net NPA 1.99 1.08 0.43 0.14 0.22
Overall CAR 13.89 14.36 15.49 15.64 17.04CHOLAMANDALAM INVESTMENT & FINANCE LTD
Rating: CRISIL AA+ (stable)/A1+, ICRA AA+ (stable)/A1+, CARE AA+ (stable), India Ratings AA+(Stable)
Rating change in last month: No change
Sector: FINANCIAL SERVICES
About: • CIFCL, a non-banking finance company, is a part of the Chennai-based Murugappa Group of
companies. Incorporated in 1978, CIFCL operates through 999 branches across 27 states with assets
under management of Rs. 57,494 crore as of June 2019. The company’s core business segments
include vehicle finance (75%) and HE loans (21%).
• CIFC reported a 4QFY21 PAT of INR2.4b. Disbursements/AUM grew 43%/16% YoY, while asset quality
was stable. In FY21, CIFC delivered NII/PPOP/PAT growth of 32-44% YoY. It also increased its total
provision buffer by 90bp to 3.6% in FY21.
• GNPL ratio increased 100bp QoQ to 3.8%. Stage 2 loans declined 20bp QoQ to 6.2%, despite
classification of ~2% of restructured loans under Stage 2.
• Chola continues to mobilize funds at attractive rates. High liquidity on-balance sheet and strong ALM
position augur well amidst lower collections over the next few months.
Parameter (` Crore) Mar-2020 Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Share Capital 164 156 156 156 156
Reported Networth 8,172 6,176 5,098 4,313 3,657
AUM 55,434 52,637 42,271 27,813 25,352
Total assets 63,970 57,408 44,095 31,578 28,393
Total borrowing 55,005 50,567 38,330 24,207 22,576
Interest Income 8,124 6,565 5,236 4,634 4,177
Interest expenses 4,592 3,589 2,659 2,137 2,030
Total income 8,637 6,932 5,472 4,662 4,193
PAT 1,052 1,186 918 719 568
Gross NPA 3.86 2.47 3.43 4.7 3.5
Net NPA 2.26 1.16 1.83 3.2 2.1
Overall CAR 20.69 17.36 18.24 18.64 19.68BAJAJ FINANCE LTD.
Rating: CRISIL AAA (stable)/A1+ , ICRA AAA (stable)/A1+, CARE AAA (stable)/A1+,India Ratings AAA
(stable)/A1+
Rating change in last month: No change
Sector: FINANCIAL SERVICES
About: Bajaj Finance Limited (BFL) is an NBFC-D-SI with a diversified loan portfolio and a pan-India presence.
While the companychol was originally set up to provide finance for the purchase of two-wheelers and
three-wheelers manufactured by Bajaj Auto, it diversified into other segments over the years. Currently, it
operates across six broad categories – Consumer Lending, Commercial Lending, Rural Lending, SME
Lending, Deposits and Partnerships & Services. Under the category of Partnerships & Services, the
company offers products like health insurance, extended warranty, comprehensive asset care, co-
branded credit cards and wallets. On a consolidated basis, BFL reported a net profit after tax of ` 5264cr
in FY 20 on total managed assets of ` 147153cr vs PAT of 3,995 crore in FY2019 on a total managed asset
base of ` 1,27,608 crore as on March 31, 2019. The reported CRAR was 25.01 including Tier 1 of 21.27% as
on March 20. The company is rated AAA by all the rating agencies rating it. Bajaj Finance (BAF)’s 4QFY21
PAT grew 42% YoY / 18% QoQ to INR13.5b. For FY21, the company reported AUM/NII/PPoP growth of
4%/3%/6% YoY. However, PAT declined 16% on the back of aggressive cleanup stress due to COVID. The
proforma GNPL ratio declined from 2.9% to 1.8% QoQ. BAF wrote off ~INR15b worth of loans (1.0% of
loans). The company has a provisioning coverage ratio of 58% on GS3 and 181bps on GS1&2. BAF
continues to carry COVID-related provisioning of INR8.4b. The company has largely maintained liquidity
on the books (at 12.5% of borrowings) – contrary to the management’s guidance for a further reduction
in the coming months to a run-rate of 7–8%.
Parameter (`Crore) Mar-2020 Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Share Capital 120 115 115 109 54
Reported Networth 31,813 19,564 15,817 9,600 7,427
AUM 113,667 95,447 75,746 41,397 42,949
Total assets 137,828 108,346 81,499 65,041 47,979
Total borrowing 104,210 87,438 64,457 50,298 37,025
Interest Income 20,668 15,346 11,511 9,001 6,767
Interest expenses 8,074 6,037 4,649 3,853 2,959
Operating expenses
(incl. depreciation) 5,360 4,200 3,660 2,510 1,920
Total income 23,221 17,056 12,397 9,953 7,277
PAT 4,836 3,890 2,455 1,837 1,278
Gross NPA 2 1.54 1.41 1.68 0.44
Net NPA 0.79 0.73 0.45 0.44 0.28
Overall CAR 25.01 20.66 23.98 20.3 19.5
Source: CRISIL Research. Financials are displayed as per the standard adjustments done by CRISIL.THE RAMCO CEMENTS LTD
Rating: CRISIL A1+, ICRA AA+ (stable)/A1+
Rating change in last month: No change
Sector: CEMENT & CEMENT PRODUCTS
About: The Ramco Cements Ltd. is a leading cement player with capacity of 17.7 million ton spread across Tamil
Nadu, Andhra Pradesh, Karnataka and West Bengal. Established in 1957, it manufactures, and markets
cement under the Ramco brand predominantly in South India. The company also has windmill capacity of
125.95 megawatt (MW; post the transfer of 33.23 MW to a newly formed subsidiary, Ramco Windfarms
Ltd, in fiscal 2014) and captive thermal power plants with capacity of 175 MW. Gearing was 0.6 time
(based on gross debt) as on March 31, 2021. The company revenue were `5268cr for FY 21 (vs ` 5285cr in
FY 20) and PAT of ` 761cr in FY 21( vs ` 590 cr in FY 20).
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 5,268 5,285 5,060 4,330 3,852
Operating Income 5,268 5,363 5,139 4,420 3,957
OPBDIT 1,548 1,136 1,031 1,110 1,200
PAT 761 590 496 547 643
Net Cash Accruals 1,116 750 709 754 927
Equity Share Capital 24 24 24 24 24
Adjusted Networth 5,539 4,836 4,383 3,966 3,654
Adjusted Debt 3,102 3,056 1,715 1,165 1,470
OPBDIT Margin (%) 29.4 21.2 20.1 25.1 30.3
Net Profit Margin (%) 14.4 11.0 9.6 12.4 16.2
ROCE (%) 14.1 10.7 11.8 14.4 16.2
PBDIT / Interest &
Finance Charges (x) 18.1 16.1 20.4 18.9 11.9
Net Cash Accruals /
Adjusted Debt (x) 0.4 0.2 0.4 0.6 0.6
Adjusted Debt /
Adjusted Networth (x) 0.6 0.6 0.4 0.3 0.4
Adjusted Debt / PBDIT (x) 2.0 2.6 1.6 1.0 1.2
Current Ratio (x) 0.6 0.7 0.7 0.7 0.7
Total Outside Liabilities /
Adjusted Networth (x) 1 1.1 0.8 0.8 0.9
Cash Flow from
Operations _ 604 531 940 1,021
Operating Income /
Gross Block (x) _ 0.6 0.6 0.6 0.5
Gross Current Asset Days 101 99 90 99 122
Debtors Days 26 27 29 25 35
Inventory Days 59 56 50 62 76
Creditors Days 153 108 84 98 105
Note: No Reported Financials Available
Source: CRISIL Research. Financials are displayed as per the standard adjustments done by CRISIL.ASTEC LIFESCIENCES LTD
Rating: ICRA A1+/AA-(stable)
Rating change in last month: No change
Sector: FERTILISERS & PESTICIDES
About: Astec is engaged in the manufacturing and sale of intermediates, active ingredients and formulations, with
a focus on the agro-chemical sector. The manufacturing is undertaken at four facilities in Maharashtra. In
FY2012, the company also forayed into the CRAMS segment by bagging contracts from reputed global
players Post Godrej Agrovet ltd’s (rated [ICRA]AA (Stable) / [ICRA]A1+) majority stake purchase in the
company in late FY2016, Astec has benefitted in terms of managerial support as well as improved financial
flexibility, resulting in an improved financial performance since FY2017. Astec is expected to continue to
benefit from strong linkages to the Godrej Group, which may aid in its future expansion plans and may
enable it to attract high-quality talent for strengthening its R&D function.
The company reported sales of ` 555cr and PAT of `. 65cr in FY 21 vs sales of ` 522cr and PAT of ` 47cr in FY
20. D/E ratio remained at manageable level of 0.6.
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 555 522 431 357 288
Operating Income 555 529 438 387 298
Operating Margin (%) 20.1 19.5 19.5 24.0 21.1
Profit After Tax 65 47 36 35 19
Net Profit Margin (%) 11.7 9.0 8.1 9.0 6.4
Net Worth 304 243 200 167 134
Total Debt 187 99 176 125 127
Debt-Equity ratio (x) 0.6 0.4 0.9 0.7 0.9LARSEN AND TOUBRO LIMITED
Rating: CRISIL A1+/AAA (Stable) ICRA A1+/AAA (stable) India Ratings A1+/AAA (stable)
Rating change in last month: No change
Sector: CONSTRUCTION
About: L&T is the largest company in the engineering and construction sector in India, with interest in projects,
infrastructure, real estate development, manufacturing, IT and financial services. It provides EPC
services in all major segments such as buildings & factories, transportation and civil infrastructure, power
(generation – thermal, hydro and nuclear, transmission and distribution), water and related, oil & gas and
material handling. The company also undertakes infrastructure development project (roads, metro rail,
power and transmission lines) through special purpose vehicles L&T IDPL, L&T Power Development and
LTMRHL. We factor in the strong financial risk profile characterized by healthy cash accruals supported
by its diversified revenue profile, stable operating profitability, and strong balance sheet marked by low
net-gearing, strong liquidity position, and healthy financial flexibility arising from its exchange-listed
subsidiaries. The liquidity position, thus, remains strong with cash and cash balances of ~Rs. 20,000 crore
and unutilized working capital limits of ~Rs. 4,500 crore as on May 31, 2020. The capital structure of the
company remains comfortable with gearing (Total Debt / Tangible Net-worth) of 0.4 times as on March
31, 2021 at a standalone level. L&T reported total operating income of Rs. 73,316 in FY21 vs 81,550cr in
FY20 and PAT of Rs. 11,337cr vs 6,678cr in the previous year
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 73,316 81,520 80,936 73,235 64,661
Operating Income 73,316 83,026 82,559 75,068 66,274
Operating Margin (%) 9.9 8.5 8.8 9.6 10.2
Profit After Tax 11,337 6,679 7,491 5,387 5,454
Net Profit Margin (%) 15.5 8.0 9.1 7.2 8.2
Net Worth 60,310 52,091 49,648 48,780 45,687
Total Debt 23,809 25,785 11,990 10,561 10,558
Debt-Equity ratio (x) 0.4 0.5 0.2 0.2 0.2L&T FINANCE LIMITED
Rating: CRISIL A1+/AAA (Stable) ICRA A1+/AAA(neg) CARE A1+/AAA (stable)
Sector: FINANCIAL SERVICES
About: L&T Finance Ltd is a non-banking finance company (NBFC) incorporated in 1993 and wholly held by LTFH.
Effective April 12, 2021, L&T Infrastructure Finance Company Ltd and L&T Housing Finance Ltd have
merged with L&T Finance Ltd. It had AUM of Rs 44,085 crore as on December 31, 2020, comprising micro
loans (27% of total AUM), farm equipment loans (22%), two-wheeler loans (16%), LAP (1%), real estate
financing (18%), infrastructure loans (11%) and balance in defocused. The gross and net stage 3 assets
were 5.6% and 2.2%, respectively, as on December 31, 2020 (5.5% and 2.4%, respectively, as on March 31,
2020). Networth and gearing were Rs 8,630 crore and 4.6 times, respectively, as on December 31, 2020
(Rs 8,893 crore and 4.9 times, respectively, as on March 31, 2020).. LTFS will remain highly strategically
important to L&T and continue to benefit from the strong support from the parent over the medium
term.
Parameter (`Crore) Mar-2020 Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Share Capital 1,599 1,599 1,599 1,440 238
Reported Networth 8,894 8,900 8,587 6,879 2,135
AUM 43,927 45,383 37,862 28,330 14,069
Total assets 51,832 54,472 42,543 33,239 15,157
Total borrowing 43,255 45,212 34,762 27,848 12,028
Interest Income 8,190 7,023 4,910 3,772 2,257
Interest expenses 3,815 3,363 2,512 1,976 1,161
Total income 8,632 7,370 5,223 4,100 2,311
PAT 366 846 290 16 207
Gross NPA 6.7 3.61 8.59 9.43 5.24
Net NPA 2.61 2.13 2.81 3.99 3.36
Overall CAR 18.31 16.98 17.92 16.42 17.04GRASIM INDUSTRIES LIMITED
Rating: CRISIL AAA (stable)/A1+, ICRA AAA(stable),India Ratings ltd AAA(stable),A1+
Rating change in last month: No change
Sector: CEMENT & CEMENT PRODUCTS
About: Incorporated in 1947, Grasim is the flagship company of the Aditya Birla group. It commenced operations
in 1948 as a textile manufacturer and is the sole producer of VSF in the domestic market. The viscose
segment also comprises the viscose filament yarn business of merged ABNL and acquired rights to
manage and operate Century Textiles and Industries Ltd's ('CRISIL AA/stable/CRISIL A1+') rayon division
with effect from February 1, 2018. The chemical segment comprises caustic soda, allied chemicals, and
epoxy. Also, the company has presence in fertilisers, textile and insulators.
UltraTech, Grasim's 57% subsidiary, is the largest cement producer in India. On August 11, 2016, Grasim
announced a composite scheme of merger of ABNL with itself, followed by demerger of the financial
services business into a separate listed entity, ABCL. Following the merger, effective July 1, 2017, ABCL
was listed in September 2017. Grasim holds 54.24% of equity in ABCL as on 31st March, 2020.
Parameter (`Crore) Mar-2021 Mar-2020 Mar-2019 Mar-2018 Mar-2017
Net Sales 12,386 18,387 20,370 15,651 10,208
Operating Income 12,386 18,661 20,624 15,835 10,345
Operating Margin (%) 12.6 12.8 20.1 19.6 20.8
Profit After Tax 905 1,270 515 1,769 1,560
Net Profit Margin (%) 7.3 6.8 2.5 11.2 15.1
Net Worth 41,745 36,580 40,780 43,513 16,202
Total Debt 4,011 5,068 3,311 2,969 701
Debt-Equity ratio (x) 0.1 0.1 0.1 0.1 0Issuer wise Holding as on May 31, 2021
Principal Principal
Principal Principal
Cash Ultra
Issuer Low Duration Short Term
Management Short Term
Fund Debt Fund
Fund Fund
Astec Lifesciences Ltd. 1 1
Axis Bank Ltd 1 1
Bajaj Finance Ltd. 1
Cholamandalam Investment &
Finance Co.Ltd 1 1
Grasim Industries Limited 1
HDFC Bank Ltd 1
Hindustan Petroleum Corp Ltd 1 1
Housing Development Finance
Corporation Ltd 2 2 1
ICICI Bank Ltd 1
Indian Oil Corporation Ltd 1 1
Indian Railway Finance
Corporation Ltd 1 1 2
Indusind Bank Ltd 1 1 1
L&T Finance Limited 1
Larsen And Toubro Ltd 1 1
LIC Housing Finance Ltd 1 1 1 3
National Bank For Agriculture
And Rural Development 1 1 1 1
National Housing Bank 1 1
NTPC Ltd 1 2
Power Finance Corporation Ltd 1 1
Power Grid Corporation Of India Ltd 1
REC Limited 2 1 2
Reliance Industries Ltd 1 1 1
Small Industries Development
Bank Of India 1 1
The Ramco Cements Ltd. 1 1
Ultratech Cement Ltd 1 1 1DISCLAIMER
Disclaimer:
The investment strategy stated above may change from time to time without any notice and shall be in accordance
with the strategy as mentioned in the Scheme Information Document of the scheme. The views contained herein are
not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Diversification does
not guarantee investment returns and does not eliminate the risk of loss. They are considered to be reliable at the time
of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change
without reference or notification to you. It should be noted that the value of investments and the income from them
may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full
amount invested. Past performance may or may not be sustained in future. The views and strategies described may
not be suitable for all investors. Furthermore, whilst it is the intention to achieve the investment objective of the
investment product(s), there can be no assurance that those objectives will be met. Investors are advised to consult
their Investment advisors for determining their risk appetite and Tax Advisor before taking any investment decision.
The data/statistics/ comments are given to explain general market trends in the securities market, it should not be
construed as any research report/research recommendation.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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This Product Is Suitable For Investors Who Are Seeking~-
Low
yH
i gh
• Income over a medium term investment horizon. RISKOMETER
• Investment in Debt & Money Market Instruments. Investors understand that their principal
will be at moderate risk
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Cash Management Fund derate
Modera
t
Mo High ely
(An Open-ended Liquid Scheme) to Hi
w g
Lo
h
This Product Is Suitable For Investors Who Are Seeking~-
Ver
Low
yH
• Income over a short term investment horizon.
i gh
RISKOMETER
• Investment in debt & Money Market Instruments, with maturity Investors understand that their principal
not exceeding 91 days. will be at low to moderate risk
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Low Duration Fund Modera
derate t
High ely
(An open ended low duration debt scheme investing in instruments such that the Mo
to Hi
Macaulay duration of the portfolio is between 6 months and 12 months) w g
Lo
h
This Product Is Suitable For Investors Who Are Seeking~-
Ver
Low
yH
i gh
• Income over a short term investment horizon.
RISKOMETER
• Investment in Debt & Money Market Instruments. Investors understand that their principal
will be at low to moderate risk
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.You can also read
