Blog

Indegene reports robust profit growth for Q1FY25

New Delhi, India, 02 August 2024: Indegene Limited, a leading digital-first commercialization services company, announced financial results for the quarter ended June 30, 2024.

• Achieved revenue of INR 6,765 million in Q1FY25 with growth of 11.4% vs Q1FY24
• Robust EBITDA growth of 14.5% in Q1FY25 vs Q1FY24
• Became a zero-debt company

1. Based on average exchange rate of ₹83.4 per USD for quarter ended June 30, 2024, ₹83.0 per USD for quarter ended March 31, 2024, and ₹82.2 per USD for quarter ended June 30, 2023, respectively.
2. Based on INR revenue. YoY growth for quarter June 30, 2023, based on unaudited financials.
3. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) represents profit/(loss) for the period before income tax expense, finance costs, depreciation and amortization expense, interest income and any exceptional items.

“In Q1FY25, we achieved revenue growth of 11.4% and robust EBITDA growth of 14.5% vs Q1FY24. We continue to see momentum and growth with our largest client and a few of our Top 20 clients with increased activity and volume levels tracking the larger pipeline of impending new product launches”, said Manish Gupta, Chairman and CEO, Indegene Limited. “Based on our conversations with our top clients, we anticipate similar momentum across the industry. Further, compared to last year, our pipeline is heathier and the quality of conversations with clients is much better, which gives us confidence about driving robust growth in the medium term.” 

“Our Q1FY25 EBITDA margin of 19.6% and PAT margin of 13.0% is an improvement of 50 bps and 170 bps vs Q1FY24. Indegene is now a zero-debt company with repayment of loans, and we anticipate the financial leverage to drive stronger PAT growth going forward”, said Suhas Prabhu, CFO, Indegene Limited. “Also, we continue to strengthen our technology and automation initiatives, which we believe will have a positive impact on the margin in the future. Further, we anticipate that the EBITDA margin would have a similar trajectory as FY24 with a stronger H2 compared to H1.”

Resolution nods under IBC up by a record 42% in fiscal 2024

The Insolvency and Bankruptcy Code (IBC) clocked the highest ever resolutions in fiscal 2024, with 2691 cases getting the National Company Law Tribunal (NCLT) nod for resolution plans, a 42% growth over 189 in fiscal 2023.

Of the 269 cases, ~88% are from the backlog of earlier years’ admissions. This has been driven by greater investor interest in turnaround of stressed assets as seen in the resolution plan submissions. Appointment of new NCLT members has also aided in higher number of resolution cases.

The moderation in recovery rates2 and stretched timelines played spoilsport, though. The year saw resolution plans with recovery rates of ~27% of admitted claims, lower than ~36% realised in fiscal 2023. Resolution timelines stretched to ~850 days compared with ~825 days in the previous fiscal (see chart 1 in annexure).

With demand durability likely across most sectors, the number of acceptable resolution plans received by lenders under NCLT has increased. Real estate and manufacturing contributed to ~65% of total plans approved for fiscal 2024.

Resolution count in the real estate and manufacturing sectors increased by ~200% and 22%, respectively, in fiscal 2024, compared with fiscal 2023. In the real estate sector, healthy demand growth for residential real estate in fiscal 2024 and expectation of healthy growth over the next two fiscals have sparked interest among resolution applicants. In manufacturing, resolutions for mid-sized and small companies3 were in focus as many larger companies are already resolved.

Says Mohit Makhija, Senior Director, CRISIL Ratings, “The higher case resolution momentum is a result of continuous efforts to improve the resolution throughput rate of IBC through structural reforms, the most prominent being the appointment of 15 additional NCLT members in the later part of fiscal 2023. Progress on other initiatives announced in recent budget, like implementation of unified IT platform for data storage and dissemination through common dashboards to all stakeholders will help in strengthening the data management structures necessary for enhancing higher resolution capabilities over the medium term.”

At the same time, delays in admission of cases by NCLT due to the burden of ongoing cases, along with multiple cross litigations between stakeholders, objections filed by promoters and deferred case hearings, are stretching the resolution timelines.

One of the hurdles in maximising recovery and reducing resolution timelines is the load of ongoing cases at NCLT — ~4,400 cases as of March 2024. Lack of a common mediation platform for both promoters and lenders to discuss and find solutions for a quicker settlement was another hurdle

To reduce the resolution timeline, the Insolvency and Bankruptcy Board of India (IBBI) is mulling the introduction of formal out-of-court solutions such as Insolvency Mediation4, as per the recommendation of the expert committee constituted by IBBI in January 2024. This process would entail mediation pre- and post-admission to seek consensus among stakeholders for settlement, thereby preserving the business value of the stressed company through faster resolutions.

Says Sushant Sarode, Director, CRISIL Ratings, “Delay in resolution not only impairs the asset value but also reduces the chance of its revival. Resolutions over the past three fiscals indicate that a one-year delay in resolution depletes the recovery rate by 800-1,000 bps (see chart 2 in annexure). Hence, initiatives such as Insolvency Mediation and increasing NCLT benches are steps in the right direction towards reducing timelines for resolution, and thereby enhancing recovery rates for lenders.”

Dubai Welcomes A Record 9.31 Million Visitors in H1 2024

National, 2nd August 2024: Dubai welcomed 9.31 million international overnight visitors from January to June 2024, a 9% increase over the 8.55 million tourist arrivals in the first half of 2023, according to data published by Dubai Department of Economy and Tourism (DET).

Following a landmark 2023, when the city hosted 17.15 million international overnight visitors, Dubai maintained its robust tourism momentum into the first six months of this year, putting the city on track for a record performance in 2024. Driven by DET’s efforts in collaboration with stakeholders and partners, the growth in international visitation aligns with the overarching objective to make Dubai the best city to visit, live, and work in.

Global accolades and industry events

The rise in international visitation during H1 is the result of citywide strategies established across key tourism pillars, created, and implemented in partnership with stakeholders across the public and private sectors. Starting 2024 on a high note, Dubai was named the No.1 global destination for an unprecedented third successive year in the Tripadvisor Travellers’ Choice Awards in January, making it the first city to achieve this unique accolade.

From January to June 2024, South Asia has emerged as a major source market, with 1.62 million visitors (17%). North-East and South-East Asia grew from an 8% share at the beginning of the year to a 10% share (896,000) of the total visitors by the end of H1 2024.

Hotels and hospitality

World-class hotels and accommodation continue to be one of the core pillars of Dubai’s destination offering, and adding to the city’s appeal for global visitors, H1 saw a number of high-profile openings including: The Lana, Dorchester Collection’s first Middle East property; SIRO One Za’abeel, Dubai’s first fitness hotel; and Hilton Dubai Creek Hotel & Residences.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said: “Dubai has continued to stay ahead of the curve by further elevating standards with innovative and distinctive world-class infrastructure, experiences and attractions. An exceptional quality of life, safety, and accessibility have been consistently recognised across multiple global indices and we are committed to leveraging partnerships between the public and private sectors to showcase Dubai as a must-visit destination. The unwavering support of our partners and stakeholders will be crucial in driving our strong global and market-specific campaigns this summer, as we look to build on this positive growth throughout the rest of 2024.”

Partnerships, collaborations and campaigns

In collaboration with its stakeholders and partners, DET continues to create new pathways to growth beyond traditional tourism, through investment, entrepreneurship, and attracting global talent, ensuring the city remains a hub of creativity, innovation, and technological advancement.

Among the major attractions to open in the first half of the year was Real Madrid World at Dubai Parks and Resorts, the first theme park in the world to be operating under the branding of the famed Spanish football club. The opening aligns with wider collaborative efforts between the club and Dubai, including a multi-year agreement signed between DET and Real Madrid in October 2023.

Dubai has also established ongoing partnerships with major names in the music and entertainment fields, including Academy Award-winning composer Hans Zimmer, who has become a vocal supporter of the emirate.

A global culinary and cruise hub

Dubai’s position as a world gastronomy capital was further reinforced after the third edition of the MICHELIN Guide Dubai was unveiled in July. The guide featured 106 restaurants, up from 90 in 2023, including four that were awarded two stars, 15 with one star, three with a green star, 18 Bib Gourmands, and 69 MICHELIN-selected restaurants.

International events destination

Dubai’s status as a global entertainment hub is bolstered by a year-round calendar of business, leisure and sporting events, which continue to attract international tourists. Organised by Dubai Festivals and Retail Establishment (DFRE), some of Dubai’s biggest annual events were held during the first half of the year, including Dubai Shopping Festival, Chinese New Year, Ramadan in Dubai, Eid in Dubai, and Dubai Food Festival. The ongoing Dubai Summer Surprises is one of Dubai’s major shopping and entertainment events which makes the city as lively and vibrant in the summer season as it is during all other times of the year, further reinforcing Dubai’s position as a leading summer destination for families. Upcoming events throughout the rest of 2024 include Dubai Fashion Season Fall/Winter, Dubai Fitness Challenge, golf’s DP World Tour Championship, Emirates Dubai 7s, and UAE Union Day.

Sustainability initiatives

The UAE’s ‘Year of Sustainability’ was extended into 2024 and Dubai’s tourism and hospitality sectors continued to spearhead the city’s ecotourism strategy. Released by DET in May, the inaugural ‘Dubai Sustainability Report’ highlighted the development plans and achievements that support global objectives such as the United Nations’ Sustainable Development Goals 2030, and country-wide strategies including the UAE’s Net Zero 2050 initiative.

As part of DET’s ongoing Dubai Sustainable Tourism drive, the Dubai Sustainable Tourism Stamp was awarded to 70 hotels in January, with more to be named in the coming months. The stamp recognises hotels with the highest level of adherence to DET’s ‘19 Sustainability Requirements’, through a three-tier scheme with categories Gold, Silver and Bronze.

Another major citywide sustainability initiative is Dubai Can, which is aligned with efforts to transform the emirate into a leading sustainable destination and the best city in the world to visit, live and work in. Since its launch in February 2022, the Dubai Can initiative, through its ‘Refill for Life’ campaign, has seen the reduction in the usage of an equivalent of more than 20.4 million 500ml single-use plastic water bottles and 10.5 million litres of water dispensed via 50 water fountains located throughout the city. A major milestone for Dubai’s sustainability drive in H1 2024 was the launch of Dubai Reef’s pilot reef modules in April. Part of Dubai Can, Dubai Reef is the world’s largest marine reef development project, with 20,000 modules set to be deployed across 600 square kilometres of Dubai’s waters by 2027.