HCL profit jumps 226% yoy in Q4; HealthifyMe eyes IPO
Also in this letter:
■ HealthifyMe mulls IPO in 24 months
■ Govt asks EV companies to voluntarily recall defective vehicles
■ William Ackman takes a $400-million loss on Netflix
HCL Tech Q4 results: profit jumps 226% yoy to Rs 3,593 crore
HCL Technologies on Thursday said its consolidated net profits for the quarter ending March stood at Rs 3,593 crore, up 226% from Rs 1,102 crore in the same quarter last year.
The company said its revenue from operations for the quarter came in at Rs 22,597 crore, up 15.05% from Rs 19,641 crore in the year-ago quarter.
The company’s Ebitda (earnings before interest, tax, depreciation and amortisation) fell 4.2% to Rs 5,053 crore in the quarter, from Rs 5,276 crore a year ago.
The board of the company has also declared an interim dividend of Rs 18 per equity share for fiscal 2022-23.
In its FY23 guidance, HCL said it expects revenue to grow between 12% and 14% in constant currency terms.
‘Tis the season: On April 11, TCS announced an increase of 7.4% in net profit for the March quarter. Consolidated net profit for the January-March quarter came in at Rs 9,926 crore, on revenue at Rs 50,591 crore, up 15.8% on-year.
Analysts had expected TCS to report year-on-year revenue growth in the range of 11-16% and profit growth of 8-9%.
Two days later, Infosys said its consolidated net profit rose 12% year-on-year to Rs 5,686 crore in the March quarter. The company reported a 29.8% on-year rise in consolidated revenues at Rs 32,276 crore.
This was higher than street estimates as year-on-year revenue growth was seen in the range of 22.5-25%. But profit growth fell short of the expected 15-19.5% year-on-year.
HealthifyMe mulls IPO, targets $200 million annual revenue run rate by 2024
HealthifyMe cofounder and CEO Tushar Vashisht
Health and wellness platform HealthifyMe is mulling an initial public offering (IPO) in the next 24 months. The company said it plans to clock an annualised revenue run rate (ARR) of $200 million by then.
Jargon buster: Annual revenue run rate is a forecasting method that helps predict the financial performance of a company over a year based on past earnings data.
Bengaluru based-HealthifyMe clocked revenue of $13 million in FY20, $23 million in FY21, and around $50 million in FY22.
Quote: “We are seeing a change in people’s mindset towards using behavioural change apps like HealthifyMe and we plan to touch $200 Million ARR in 20-24 months. We may think of an IPO when we reach there,” Tushar Vashisht, cofounder of HealthifyMe, told us.
Founded in 2012 by Vashisht, Sachin Shenoy and Mathew Cherian, HealthifyMe offers services such as calorie tracking, one-on-one nutrition, fitness coaching, diet tracking, and workout plans.
It has around 30 million users in more than 300 cities, around 2,000 health and fitness coaches on its platform, and around 300 employees.
Offline play: HealthifyMe plans to launch offline centres called ‘HealthifyMe Stores’ in the next three to six months to help its users understand its offerings. The stores may also have health testing facilities.
ETtech Done Deals
■ Edtech startup Newton School said it has raised $25 million (about Rs 191 crore) in a funding round led by investment firm Steadview Capital. Existing investors Nexus Venture Partners and RTP Global also participated in the round. Steadview Capital’s portfolio includes Indian unicorns Nykaa, Polygon, Zomato and Freshworks.
■ Believe Pte Ltd, a Singapore-based manufacturer of Halal-certified skincare, fragrances, make-up, and hair care products, has raised $55 million in a funding round led by Venturi Partners and IIFL AMC. Existing investors Jungle Ventures, Accel, Alteria Capital, and Genesis Alternative Ventures also participated in the round.
■ Mylo, a platform for expecting and new mothers, has announced a funding round of $17 million led by W Health Ventures, a US-based digital health investor, ITC and Endiya Partners. Other investors that participated in the round include Riverwalk Holdings, Alteria Capital and Innoven Capital.
Tweet of the day
Govt asks EV companies to voluntarily recall defective vehicles
The centre has asked electric vehicle manufacturers to voluntarily recall defective two-wheelers.
In a series of tweets, Road Transport Minister Nitin Gadkari said, “Companies may take advance action to recall all defective batches of vehicles immediately.” He said that an expert committee was constituted to enquire into these incidents and make recommendations on remedial steps.
EV battery explosion claims life: The battery of a Pure EV electric scooter burst in a home in Nizamabad town on Tuesday night, killing an 80-year-old man and injuring his wife and grandson. A case has been registered against Pure EV. The report suggested that the battery burst into flames after the owner put the vehicle on charge.
Burning issue: With rising concern about the safety of EV batteries, the government has said it plans to put in place quality controls for such batteries.
This is the third recent incident in which a Pure EV scooter caught fire or exploded. Three scooters made by Okinawa have caught fire since October, resulting in two injuries.
Ola Electric and Jitendra EV are other companies that have seen their electric scooters catch fire in the past three weeks.
Okinawa Autotech will recall 3,215 Praise Pro electric scooters, the first instance of an Indian manufacturer doing so after the spate of recent fires, we reported on April 16.
Ola Electric posts losses of almost Rs 200 crore: Ola Electric posted almost Rs 200 crore in losses for the financial year that ended March 2021 (FY21), according to regulatory filings.
By the numbers: The company clocked operational revenue of just Rs 86 lakh as it didn’t sell a single product during this period. Its biggest expense was employee benefits, which made up close to 70% of total expenses.
Ola Electric’s overall revenue, which included interest earned on bank deposits, was at Rs 106 crore.
William Ackman gives up on Netflix, takes $400 million loss as shares tumble
William Ackman, CEO and portfolio manager of Pershing Square
William Ackman’s hedge fund Pershing Square Holdings Ltd said it exited its Netflix Inc investment as the streaming service’s stock price plunged and the billionaire investor absorbed more than $400 million in losses on the bet.
Taking stock: Netflix shares tumbled 35% on Wednesday to close at $226.19, just 24 hours after the company announced that it had lost subscribers for the first time in a decade.
Ackman, who had become the company’s most prominent backer when he said he bought 3.1 million shares in January, reacted quickly and boldly, selling everything.
Quote: “While Netflix’s business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty,” his hedge fund said in a statement.
Investors sceptical on account sharing crackdown: Netflix Inc’s plans to get tough on account sharing failed to reassure Wall Street that the world’s largest streaming video company had found a way to spark new growth.
Indian smartphone market grows just 2% year-on-year on supply chain woes
India’s smartphone market grew only 2% in the first quarter of 2022 from the same period last year, according to a report by Canalys. This comes as the Indian smartphone industry, like others around the world, has been facing a severe supply crunch.
Uh-oh: Canalys analyst Sanyam Chaurasia believes that the latest data is alarming as the Indian smartphone market saw double-digit growth even during the pandemic.
Top brands feel the heat: The worst-affected brand was Xiaomi, which clocked negative annual growth of 24% while having the largest market share (21%) as of Q1 2022. It was followed by Vivo and Oppo, which saw dips of 15% and 13%, respectively. Xiaomi’s numbers include its sub-brand Poco and Oppo includes OnePlus.
The outlier: The slump did not affect brands such as Realme, Tecno, and Itel, which did relatively well with a decent supply, taking on the market leaders in fulfilling low-end demand in Q1. In fact, Realme was the clear outlier, notching 40% annual growth.
Today’s ETtech Top 5 newsletter was curated by Arun Padmanabhan in New Delhi, Zaheer Merchant and Aishwarya Dabhade in Mumbai. Graphics and illustrations by Rahul Awasthi.
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