Wipro Q2FY20 results were better than our estimates on the revenue and profitability front.

SBI Life’s GWP increased 33.3% YoY/53.0%QoQ to INR 10,243 Cr. New Business Premium (NBP) rose by 33.3% YoY (up 47.8% QoQ).

TV18’s consolidated revenue from operation declined by 6% YoY (down 5.84 QoQ) to INR 11271 Mn

HUL reported revenue growth of 6.7% YoY (down 2.6% QoQ) at INR 9,852 Cr

Company Background Fine organic (FOIL) is in the oleo chemical (derived from vegetable oils)-based additives business largely present in two additives viz. food and plastic together constitute ~70% to the overall revenues of the company. Further, the company is also present in other additives like paints, rubber, cosmetics, etc that contribute to rest of the topline. FOIL has total capacity of 101,300 MTPA at Ambernath1 (49500) Ambernath 2 (5000MTPA), Ambernath3( 32000MTPA) , Badlapur (6400 MTPA) and Dombivali (8400 MTPA). The Company has a dedicated research and development ('R&D') centre located in Mahape, Navi Mumbai. As per management, the company holds around 90% market share in both domestic food and plastic additives industry, which has been growing at 10% CAGR while growth in the international market is pegged at ~5-6% CAGR. The Company is the first largest producer of to introduce slip additives in India. Investment Rationale Strong positioning in the Food and Plastic additive market Nearly five decade of expertise as a food additives producer, Fine organic has pioneered in developing wide range of unique speciality additives for a variety of applications that are connected to humans in their daily life. These include applications in foods, plastics, cosmetics, coatings and rubber etc. FOIL has a range of 400 plus products used in plastic, food and others industries. The company also increased its presence in the export market with around 150 distributors across more than 70 countries. The share of export as on FY19 stood at ~55% in the overall revenue. Moreover, in order to cushion against geographical risk, the company has well diversified revenue profile globally. The pie of North & South America is at 20-25%, Europe at 20-22%, Middle East& Africa at ~30-40% and Asia at 20-25%. Additionally, FOIL’s export revenue is pegged in US$, which cushion it against adverse currency movements, except in Europe, where sales are denominated in Euro. The company derives 50% of revenue through annual contract, while rest 50% comes from short term contracts (about three months) through distributors. In terms of RM, the company derives~70% of key vegetable oils from domestic market, while rest is imported from Malaysia and Indonesia. Further, given FOIL’s additives comprise ~0.5-1% in terms of weight for any finish product, it helps the company to pass on any raw material price fluctuation to end user, ensuring stability in the gross margins. We believe this also aids the company to maintain its EBITDA/ ton. The management expects sustainable capacity to aid top line growth in the medium term. Fresh capacity addition to drive next leg of growth FOIL currently operating at optimum utilization level ( 92-95%), which has restricted volume growth even as demand for its products remains strong. To tap increasing demand in Additive industry, the company is going for capacity expansions which could lead to volume growth, aided by higher realizations and a stable rupee. FOIL is expanding capacity by 42,000 MTPA of which 32,000 MTPA in Ambernath for plastic, rubber and cosmetic additives got commissioned in Q2FY20, which we believe open up new avenue of revenue growth. Moreover, another 10,000TPA capacity dedicated to food additives at Patalganga near Karjat, expected to be operational by FY21E. The company has earmarked a capex of INR1.5-1.6bn for Ambernath while INR550-600mn is for Patalganga, which would be funded through 70:30 debt: equity ratio. FOIL is expected to maintain 3.5-4x asset turn on the upcoming capacity. Hence, we expect incremental revenue of INR5-6bn at peak utilization level from these plants in next three to four years. We modeled 25%/55%/80% capacity utilization in FY20/FY21/FY22 respectively from Ambernath facility (32,000MTPA) and 50% utilization from Patalganga facility in FY22E respectively. Company Background Fine organic (FOIL) is in the oleo chemical (derived from vegetable oils)-based additive

TCS Q2FY20 topline was almost in line with estimates (missed by 1%); but the bottom line was better than our expectations.

Infosys Q2FY20 results were in line with our estimates on the revenue and profitability front.

ITC has achieved a big milestone by reducing its dependence on core tobacco business and has now, shifted to diversified consumer business, which the company was also focusing on from a quite some time. Moreover, it Aspires to achieve `1lakh cr revenue from FMCG by FY2030.

ariff hike by Jio – an expected move! • Reliance Jio levied a tariff of INR 6 paisa/min for calls made to users of other telecom operators in order to recover InterconnectUsage Charge (IUC) payable to other operators.