#SALES #GROWTH
In FY24, the sales stood at โน14,691 cr, an increase of 9% on a YoY basis. The sales volume during the period stood at 28.8 MTPA v/s 25.7 MTPA in FY23. The sales realization per ton during the period was flat YoY and stood at โน5,101. It added 6 MTPA of cement capacity during the year and capacity as on 31st March 2024 stood at 44.6 MT. The closing capacity is excluding the acquisition of cement assets of Jaiprakash Associates. They have ongoing work for 1 MT at Ariyalur, TN and 1 MT at Kadapa, Andhra Pradesh is under trials. The group continued to retain a strong presence in the Southern, Eastern and North-Eastern markets while increasing sales volume in the region of West and Central India. In 9M FY25, sales volume grew by 4% YoY to 20.8 MT. Revenue from operations during the period was โน9,889 cr, a YoY de-growth of 4.8%, leading to a realization decline of ~8.4% to โน4,754 per ton as against โน5,192 per ton in 9M FY24.
In FY24, the sales stood at โน14,691 cr, an increase of 9% on a YoY basis. The sales volume during the period stood at 28.8 MTPA v/s 25.7 MTPA in FY23. The sales realization per ton during the period was flat YoY and stood at โน5,101. It added 6 MTPA of cement capacity during the year and capacity as on 31st March 2024 stood at 44.6 MT. The closing capacity is excluding the acquisition of cement assets of Jaiprakash Associates. They have ongoing work for 1 MT at Ariyalur, TN and 1 MT at Kadapa, Andhra Pradesh is under trials. The group continued to retain a strong presence in the Southern, Eastern and North-Eastern markets while increasing sales volume in the region of West and Central India. In 9M FY25, sales volume grew by 4% YoY to 20.8 MT. Revenue from operations during the period was โน9,889 cr, a YoY de-growth of 4.8%, leading to a realization decline of ~8.4% to โน4,754 per ton as against โน5,192 per ton in 9M FY24.
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#EBITDA #GROWTH
In FY24, the EBITDA stood at โน2,639 cr, up by 13.4% YoY. EBITDA per tonne was โน916 v/s โน901 in FY23. The improvement was primarily due to decline in power and fuel cost of 21% YoY. EBITDA was impacted due to decline in cement prices. In 9M FY25, the company generated an EBITDA of โน1,614 cr as against โน1,985 cr in 9M FY24. EBITDA per ton declined by 22% to โน773 per ton due to increase in other expense and freight expenses during the period. Increase in other expense and freight was driven by higher maintenance in Q2 FY25 and discontinuation of tolling agreement with JP associate due to which the company had to service the central region through its eastern plants, respectively. Lead distance during Q3 FY25 was 269 km and in Q3 FY24 was 287 km.
In FY24, the EBITDA stood at โน2,639 cr, up by 13.4% YoY. EBITDA per tonne was โน916 v/s โน901 in FY23. The improvement was primarily due to decline in power and fuel cost of 21% YoY. EBITDA was impacted due to decline in cement prices. In 9M FY25, the company generated an EBITDA of โน1,614 cr as against โน1,985 cr in 9M FY24. EBITDA per ton declined by 22% to โน773 per ton due to increase in other expense and freight expenses during the period. Increase in other expense and freight was driven by higher maintenance in Q2 FY25 and discontinuation of tolling agreement with JP associate due to which the company had to service the central region through its eastern plants, respectively. Lead distance during Q3 FY25 was 269 km and in Q3 FY24 was 287 km.
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#PAT #GROWTH 5 Year CAGR 19.6%
In FY24, the PAT registered was โน854 cr, as compared to โน529 cr in FY23. However, net consolidated PAT for FY24 was โน826 cr v/s โน1,035 cr in FY23 in which the profit from share associates were โน554 cr. Finance cost increased to โน386 cr mainly due to an increase in gross debt during the year, and further higher weighted average cost of total borrowings from 5.9% p.a. in FY23 to 8.3% p.a. in FY24 on account of an increase in bank interest rates. In 9M FY25, PAT declined by 51% to โน260 cr due to an exceptional item pertaining to advances paid to JP Associate for tolling agreement which was to be adjusted at the time of acquisition, however, due to uncertainty in recovery a provision โน113 cr has been created.
In FY24, the PAT registered was โน854 cr, as compared to โน529 cr in FY23. However, net consolidated PAT for FY24 was โน826 cr v/s โน1,035 cr in FY23 in which the profit from share associates were โน554 cr. Finance cost increased to โน386 cr mainly due to an increase in gross debt during the year, and further higher weighted average cost of total borrowings from 5.9% p.a. in FY23 to 8.3% p.a. in FY24 on account of an increase in bank interest rates. In 9M FY25, PAT declined by 51% to โน260 cr due to an exceptional item pertaining to advances paid to JP Associate for tolling agreement which was to be adjusted at the time of acquisition, however, due to uncertainty in recovery a provision โน113 cr has been created.
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#EBITDA #MARGIN
In FY24, the EBITDA margin registered was 18%. Power and fuel cost per ton decreased by 21% YoY to โน1,135 due to softening in commodity prices and change in fuel mix, logistics cost per ton increased by 2.3% YoY to โน1,113 and raw material cost per ton increased by 3.8% YoY to โน776. In 9M FY25, the company reported an EBITDA margin of 16.3% as against 19.1% in 9M FY24. As a percentage of operating revenue, cost of raw material per tonne decreased by 80 bps to 15.8% and power and fuel cost decreased by 90 bps YoY to 21.5%. In the period, employee cost increased by 40 bps YoY to 6.8%, freight cost increased by 240 bps YoY to 23.4% and other expense increased by 180 bps YoY to 16.2%.
In FY24, the EBITDA margin registered was 18%. Power and fuel cost per ton decreased by 21% YoY to โน1,135 due to softening in commodity prices and change in fuel mix, logistics cost per ton increased by 2.3% YoY to โน1,113 and raw material cost per ton increased by 3.8% YoY to โน776. In 9M FY25, the company reported an EBITDA margin of 16.3% as against 19.1% in 9M FY24. As a percentage of operating revenue, cost of raw material per tonne decreased by 80 bps to 15.8% and power and fuel cost decreased by 90 bps YoY to 21.5%. In the period, employee cost increased by 40 bps YoY to 6.8%, freight cost increased by 240 bps YoY to 23.4% and other expense increased by 180 bps YoY to 16.2%.
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#PAT #MARGIN
PAT margin stood at 5.83% during FY24 v/s 5.81% in FY23. The margins remained flat on YoY basis. Effective tax rate during the year stood at ~20% as against ~18% in FY23. In 9M FY25, PAT Margin for the period was 2.63% as against 5.14% in 9M FY24. During the period under consideration effective tax rate was 26%.
PAT margin stood at 5.83% during FY24 v/s 5.81% in FY23. The margins remained flat on YoY basis. Effective tax rate during the year stood at ~20% as against ~18% in FY23. In 9M FY25, PAT Margin for the period was 2.63% as against 5.14% in 9M FY24. During the period under consideration effective tax rate was 26%.
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#ROCE
In FY24, ROCE stood at ~7.2%, there was a decrease in PBIT. The capital employed increased in mainly due to increase in long-term borrowing from โน3,210 cr to โน4,413 cr in FY24.
In FY24, ROCE stood at ~7.2%, there was a decrease in PBIT. The capital employed increased in mainly due to increase in long-term borrowing from โน3,210 cr to โน4,413 cr in FY24.
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#ROE stood at 5.34% in FY24. The consolidated net profit decreased due to lower profits on account of sale of business resulting to non-recognition of share of profit from JV/Associates, which is partly offset by increased in sales volume and decline in costs, saving in exceptional items as compared to last year.
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#COMPANY #POTENTIAL
โข India is the second largest producer and consumer of cement, with a capacity of ~600 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. From the fiscal year 2013-2022, Indian cement manufacturers have significantly increased their capacity by 217 MTPA. Of this, despite pandemic related interruptions, the last five fiscal years up to 2022 saw an additional 109 MT increase in capacity. As per Crisilโs estimate, Indian cement companies plan to expand and increase their capacity by 145-155 MT between FY23 and FY27 at a 4-5% CAGR on a high base. A 6-7% CAGR in cement demand during these five fiscal years will support the increase in supply. โข With plans to invest โน143 lakh crore on infrastructure between 2024-2030, Indiaโs infrastructure sector emerges as a potent driver of economic growth, presenting substantial opportunities for cement industry stakeholders. โข In the Union Budget for FY26 the central government made an allocation of ~โน11.2 lakh cr towards infrastructure. This is viewed as a positive boost to infrastructure and construction companies. โข Pradhan Mantri Awas Yojana (Housing for all) is a government initiative launched in 2015 aimed at providing affordable housing to eligible beneficiaries by 2024. The programme has two components: PMAY (Urban) and PMAY (Gramin), offering financial assistance to urban poor households and rural households, respectively. It provides credit-linked subsidies and interest subsidies to make housing more affordable. PMAY has been successful in providing affordable housing to millions of beneficiaries, particularly economically weaker sections, low-income groups and women. With continued focus on housing for all, the union cabinet has approved the proposal for extension of the Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) till FY29 for construction of additional 2 crore houses. For FY26, the government has allocated a budget of โน 54,832 crore towards the same.
โข India is the second largest producer and consumer of cement, with a capacity of ~600 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. From the fiscal year 2013-2022, Indian cement manufacturers have significantly increased their capacity by 217 MTPA. Of this, despite pandemic related interruptions, the last five fiscal years up to 2022 saw an additional 109 MT increase in capacity. As per Crisilโs estimate, Indian cement companies plan to expand and increase their capacity by 145-155 MT between FY23 and FY27 at a 4-5% CAGR on a high base. A 6-7% CAGR in cement demand during these five fiscal years will support the increase in supply. โข With plans to invest โน143 lakh crore on infrastructure between 2024-2030, Indiaโs infrastructure sector emerges as a potent driver of economic growth, presenting substantial opportunities for cement industry stakeholders. โข In the Union Budget for FY26 the central government made an allocation of ~โน11.2 lakh cr towards infrastructure. This is viewed as a positive boost to infrastructure and construction companies. โข Pradhan Mantri Awas Yojana (Housing for all) is a government initiative launched in 2015 aimed at providing affordable housing to eligible beneficiaries by 2024. The programme has two components: PMAY (Urban) and PMAY (Gramin), offering financial assistance to urban poor households and rural households, respectively. It provides credit-linked subsidies and interest subsidies to make housing more affordable. PMAY has been successful in providing affordable housing to millions of beneficiaries, particularly economically weaker sections, low-income groups and women. With continued focus on housing for all, the union cabinet has approved the proposal for extension of the Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) till FY29 for construction of additional 2 crore houses. For FY26, the government has allocated a budget of โน 54,832 crore towards the same.
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#COMPANY #OUTLOOK
โข The company expects installed cement capacity to reach ~49.5 MTPA by the end of FY25 (excluding the acquisition). The companyโs aim is to be a pan-India cement manufacturer, with a 130 MTPA cement manufacturing capacity by 2030. โข With an equivalent focus on building long-term raw material security, they are also participating in new limestone auctions and had won some of them, including the one in Rajasthan in North India. In line with their strategic priorities, they won two coal blocks in East India. This will help them to partially safeguard against the external rate volatilities. โข They are progressing well on the commitments to have 100% renewable energy (RE) by 2030 and complete fossil fuel replacement by 2035. As on Q3 FY25, they have signed 299 MW of long term RE power agreements under group captive arrangement. By the end of FY25, they envisage to have total operational RE capacity of 267 MW, including 57 MW from group captive arrangements and other captive capacities. On consumption basis, the management expect RE power share to be 40%-45% by the end of FY25. โข To make use of the opportunities unfolding before them and to realize their ambition of becoming a pan-India pure play cement company, they had decided to embark on a strategic growth drive. The growth plan includes capacity expansion through brownfield and greenfield projects as well as expansion of existing facilities, acquisitions and debottlenecking of production at an investment of โน9,000 cr over the next three years. The management will produce a more definitive plan by July 2025. โข In line with its strategy to exit non-core business, on 25th April 2023, Dalmia Cement (Bharat) Limited, a subsidiary of the company, entered into a binding agreement to sell its entire investment of 1.87 crore equity shares of โน10 each (42.36% of share capital) of Dalmia Bharat Refractories Limited at a consideration of โน800 crore to M/s Sarvapriya Healthcare Solutions Private Limited, a promoter group company. Sarvapriya had paid โน160 crore (20%) immediately on signing the contract and one tranche of nonconvertible debentures (NCD) of โน320 crore (40%) plus due interest of redemption was received in FY24. The 2nd tranche of โน320 crore (40%) was due for redemption in September 2024.
The company recently signed a definitive agreement with Jaiprakash Associates (JPA) for the acquisition of a cement manufacturing unit with a production capacity of 9.4 MTPA, clinker with a capacity of 6.7 MTPA and a thermal power plant of 280 MW at an Enterprise Value of โน5,836 cr. These plants are strategically located and will provide them with an entry into the highgrowth market of central India. The company discontinued its tolling arrangement in Central India with JPA after it entered insolvency proceedings. As of January 2025, the National Asset Reconstruction Company Limited (NARCL) remained the sole bidder for JPAโs assets. The company has continued to serve the Central market through its eastern plants, as it remains optimistic about acquiring JPAโs assets and aims to maintain its market presence in the region.
โข The company expects installed cement capacity to reach ~49.5 MTPA by the end of FY25 (excluding the acquisition). The companyโs aim is to be a pan-India cement manufacturer, with a 130 MTPA cement manufacturing capacity by 2030. โข With an equivalent focus on building long-term raw material security, they are also participating in new limestone auctions and had won some of them, including the one in Rajasthan in North India. In line with their strategic priorities, they won two coal blocks in East India. This will help them to partially safeguard against the external rate volatilities. โข They are progressing well on the commitments to have 100% renewable energy (RE) by 2030 and complete fossil fuel replacement by 2035. As on Q3 FY25, they have signed 299 MW of long term RE power agreements under group captive arrangement. By the end of FY25, they envisage to have total operational RE capacity of 267 MW, including 57 MW from group captive arrangements and other captive capacities. On consumption basis, the management expect RE power share to be 40%-45% by the end of FY25. โข To make use of the opportunities unfolding before them and to realize their ambition of becoming a pan-India pure play cement company, they had decided to embark on a strategic growth drive. The growth plan includes capacity expansion through brownfield and greenfield projects as well as expansion of existing facilities, acquisitions and debottlenecking of production at an investment of โน9,000 cr over the next three years. The management will produce a more definitive plan by July 2025. โข In line with its strategy to exit non-core business, on 25th April 2023, Dalmia Cement (Bharat) Limited, a subsidiary of the company, entered into a binding agreement to sell its entire investment of 1.87 crore equity shares of โน10 each (42.36% of share capital) of Dalmia Bharat Refractories Limited at a consideration of โน800 crore to M/s Sarvapriya Healthcare Solutions Private Limited, a promoter group company. Sarvapriya had paid โน160 crore (20%) immediately on signing the contract and one tranche of nonconvertible debentures (NCD) of โน320 crore (40%) plus due interest of redemption was received in FY24. The 2nd tranche of โน320 crore (40%) was due for redemption in September 2024.
The company recently signed a definitive agreement with Jaiprakash Associates (JPA) for the acquisition of a cement manufacturing unit with a production capacity of 9.4 MTPA, clinker with a capacity of 6.7 MTPA and a thermal power plant of 280 MW at an Enterprise Value of โน5,836 cr. These plants are strategically located and will provide them with an entry into the highgrowth market of central India. The company discontinued its tolling arrangement in Central India with JPA after it entered insolvency proceedings. As of January 2025, the National Asset Reconstruction Company Limited (NARCL) remained the sole bidder for JPAโs assets. The company has continued to serve the Central market through its eastern plants, as it remains optimistic about acquiring JPAโs assets and aims to maintain its market presence in the region.
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Dalmia Bharat Limited 1750-1860
Expected level 2200
Support 1600
Expected level 2200
Support 1600
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HCL Technologies Company details report
HCL Technologies is a leading global IT services company headquartered in Noida, which is ranked amongst the top five Indian IT services companies in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL Tech has focused on transformational outsourcing and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, ER&D (engineering, research & development) services and BPO (business process outsourcing). The company leverages its extensive global offshore infrastructure and operates in 60 countries to provide multi-service delivery in key industry verticals. In 1976, a group of 8 engineers led by Shiv Nadar started a company for making personal computers. The company was re-named as Hindustan Computers Limited (HCL). Later, HCL Tech began as the R&D division of HCL Enterprises. The company originally was focused on hardware but, via HCL Technologies, software and services became the main focus. On 12th November 1991, HCL Technologies was spun off as a separate unit that would focus on software. The business is categorized into 3 segments namely: IT & Business Services (ITBS), ERD Services and HCL Software. ITBS enables enterprises to transform their business through a modernized infra stack across cloud, software-defined network & more. ERD services include engineering solutions for platform & product engineering. They have integrated ITBS & ERD from Q4 FY24 onwards. In 2019, HCL Technologies started a software product division called โHCLSoftwareโ, after completing the acquisition of IBM's software tools. Notable products under HCLSoftware include HCL Notes (personalized email/workflow platform), AppScan (providing developers security from data breaches & fixes), Connections (communication digital enterprise platform), Domino (app development), Commerce Cloud (cloud-based e-commerce management), Actian (analytics), BigFix (enterprise & workspace automation), Digital Experience (digital platform creation), Unica (digital marketing), amongst others. Its products & platforms cater to various industries offering digital transformation, analytics, AI, Gen-AI, automation, cloud, enterprise security & other solutions.
HCL Technologies is a leading global IT services company headquartered in Noida, which is ranked amongst the top five Indian IT services companies in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL Tech has focused on transformational outsourcing and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, ER&D (engineering, research & development) services and BPO (business process outsourcing). The company leverages its extensive global offshore infrastructure and operates in 60 countries to provide multi-service delivery in key industry verticals. In 1976, a group of 8 engineers led by Shiv Nadar started a company for making personal computers. The company was re-named as Hindustan Computers Limited (HCL). Later, HCL Tech began as the R&D division of HCL Enterprises. The company originally was focused on hardware but, via HCL Technologies, software and services became the main focus. On 12th November 1991, HCL Technologies was spun off as a separate unit that would focus on software. The business is categorized into 3 segments namely: IT & Business Services (ITBS), ERD Services and HCL Software. ITBS enables enterprises to transform their business through a modernized infra stack across cloud, software-defined network & more. ERD services include engineering solutions for platform & product engineering. They have integrated ITBS & ERD from Q4 FY24 onwards. In 2019, HCL Technologies started a software product division called โHCLSoftwareโ, after completing the acquisition of IBM's software tools. Notable products under HCLSoftware include HCL Notes (personalized email/workflow platform), AppScan (providing developers security from data breaches & fixes), Connections (communication digital enterprise platform), Domino (app development), Commerce Cloud (cloud-based e-commerce management), Actian (analytics), BigFix (enterprise & workspace automation), Digital Experience (digital platform creation), Unica (digital marketing), amongst others. Its products & platforms cater to various industries offering digital transformation, analytics, AI, Gen-AI, automation, cloud, enterprise security & other solutions.
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#SALES #GROWTH
The sales in FY24 stood at โน1,09,913 cr, a growth of 8%. In cc terms, revenue increased by 5%. Majority of the growth was driven by Financials, Manufacturing and others, while Technology was impacted during the year due to sluggish macro. Region-wise, Europe led the growth followed by Americas, while ROW declined by 7%. The TCV (new) in FY24 was $9,751 million, higher by 10%. In 9M FY25, revenue stood at โน86,809 cr, up by ~7% YoY with growth led by TMPE, Retail, Manufacturing & Tech, respectively. In cc terms, revenue grew by ~5% YoY. Discretionary spend has been improving across verticals. Region-wise, growth has been broad based with slight headwinds in ROW. New TCV de-grew by 3% YoY to ~$6.3 billion with a total of 50 large deals won. De-growth is due to a large base owing to the mega deal.
The sales in FY24 stood at โน1,09,913 cr, a growth of 8%. In cc terms, revenue increased by 5%. Majority of the growth was driven by Financials, Manufacturing and others, while Technology was impacted during the year due to sluggish macro. Region-wise, Europe led the growth followed by Americas, while ROW declined by 7%. The TCV (new) in FY24 was $9,751 million, higher by 10%. In 9M FY25, revenue stood at โน86,809 cr, up by ~7% YoY with growth led by TMPE, Retail, Manufacturing & Tech, respectively. In cc terms, revenue grew by ~5% YoY. Discretionary spend has been improving across verticals. Region-wise, growth has been broad based with slight headwinds in ROW. New TCV de-grew by 3% YoY to ~$6.3 billion with a total of 50 large deals won. De-growth is due to a large base owing to the mega deal.
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#EBITDA #GROWTH
EBITDA for FY24 stood at โน24,198 cr, increasing by 6.9%. Employee costs increased by 13% majorly due to higher wages & employee additions while other expenses were up by 4%. However, outsourcing cost declined by 2%. EBITDA in 9M FY25 stood at โน19,022 cr, an increase of 5% YoY. Employee costs rose by 7% YoY, subcontracting were higher by 3%. Other expenses were higher by 10% YoY. However, profits grew modestly on account of healthy revenue growth.
EBITDA for FY24 stood at โน24,198 cr, increasing by 6.9%. Employee costs increased by 13% majorly due to higher wages & employee additions while other expenses were up by 4%. However, outsourcing cost declined by 2%. EBITDA in 9M FY25 stood at โน19,022 cr, an increase of 5% YoY. Employee costs rose by 7% YoY, subcontracting were higher by 3%. Other expenses were higher by 10% YoY. However, profits grew modestly on account of healthy revenue growth.
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#PAT #GROWTH
The PAT for the company stood at โน15,710 cr in FY24, an increase of 6%. The finance cost for FY24 increased by 57% majorly due to rise in lease liabilities while depreciation costs were up by 1%. Other income during FY24 was higher by 10% to โน1,495 cr. The PAT in 9M FY25 stood at โน13,090 cr an increase of 12% YoY, due to one-time impact of other income coupled with higher operating profits. The finance costs for the company increased by 28% YoY while depreciation was lower by 1%. Other income stood at โน2,036 cr as compared to โน1,079 cr in 9M FY24. The rise was due to gain on divestment of its stake in Statestreet HCL Holding UK Ltd (a joint venture with State Street) done during Q1 FY25. The consideration received for de-consolidation was โน1,439 cr and net gain from the same was โน581 cr.
The PAT for the company stood at โน15,710 cr in FY24, an increase of 6%. The finance cost for FY24 increased by 57% majorly due to rise in lease liabilities while depreciation costs were up by 1%. Other income during FY24 was higher by 10% to โน1,495 cr. The PAT in 9M FY25 stood at โน13,090 cr an increase of 12% YoY, due to one-time impact of other income coupled with higher operating profits. The finance costs for the company increased by 28% YoY while depreciation was lower by 1%. Other income stood at โน2,036 cr as compared to โน1,079 cr in 9M FY24. The rise was due to gain on divestment of its stake in Statestreet HCL Holding UK Ltd (a joint venture with State Street) done during Q1 FY25. The consideration received for de-consolidation was โน1,439 cr and net gain from the same was โน581 cr.
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