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How Consolidated and Standalone Revenue Differ?
The performance of businesses is assessed using two key financial metrics: consolidated revenue and standalone revenue. For investors, analysts, and stakeholders, it is crucial to comprehend the distinction between these two phrases.
Hello readers, hope the markets are blessing you with profits! In this session In this article, we will explore the distinctions between consolidated and standalone revenue and their significance. So buckle up!
Understanding Terms and Their Meaning
Before embarking on this escapade, there are a few terms you must know the meaning of.
- Subsidiary– A company is said to be a subsidiary if it owns more than 50 percent of another business. For instance, if firm A owns more than 50% of company B, B is considered to be a subsidiary of A. • Pay attention to the word “more than”; it matters since a stake of 50 changes the essence of ownership.
- Associate– A company is said to be an associate company when it owns between 20% and 50% of another company. Even a stake equal to 50 percent is considered an associate.
For example, if A owns 35 percent of B, it makes B an associate company of A.
Similarly, if A owns a 50 percent stake in B, again B would be considered an associate of A and not a subsidiary. - Wholly owned subsidiary– The term “wholly-owned subsidiary” refers to a business that owns a 100 percent ownership in another business.
For example, if A owns a 100 percent stake in B, B is a wholly owned subsidiary of A.
What is Consolidated Revenue?
The total income generated by a collection of businesses that share common control is referred to as consolidated revenue. It includes both the parent company’s and its subsidiaries revenue.
When a corporation works in several different business segments or has subsidiaries, consolidated revenue is frequently employed. The parent business presents a comprehensive picture of its overall financial performance by combining the revenue numbers of all the entities under its control. Thanks to this, investors can evaluate the group’s overall strength and growth prospects.
To understand this, let us take an example.
B, C, and D are subsidiaries of Company A, a multinational conglomerate that operates in the energy, healthcare, and technology sectors, respectively. In this case, Company A’s consolidated revenue would be made up of the sum of the revenues from all of its subsidiaries, i.e., A+B+C+D.
This will provide a comprehensive analysis of the group’s financial performance.
When evaluating the overall development and financial well-being of a collection of businesses, consolidated revenue is particularly helpful. Investors can assess the benefits and potential dangers of managing several subsidiaries under a single control.
What is Standalone Revenue?
Standalone revenue refers to the income generated by an individual entity or company without considering the revenue of its subsidiaries or any other related entities. One can learn about the performance of a single company by looking at its standalone revenue.. Investors do not receive information regarding the company’s affiliates and subsidiaries as a result.
Let’s take the same example as before. B, C, and D are subsidiaries of Company A, a multinational conglomerate operating in energy, healthcare, and technology. We want to assess A’s performance in revenue compared to its peers. However, comparing consolidated revenue alone won’t suffice. We need A’s standalone revenue for an accurate comparison.
Standalone revenue offers a clearer picture of the financial performance of a single firm. Investors can use it to evaluate an entity’s specific capacity for generating income, its position in the market, and its degree of competitiveness.
Which is better Standalone or Consolidated Revenue?
This is the same as asking which is better, Technical or Fundamental Analysis. The answer is the same, both serve different purposes and are collectively important to make a detailed analysis. Regarding financial analysis, consolidated and standalone data each have specific implications. While Consolidated data gives a broader view, it cannot always accurately reflect how each member of a group is actually performing. Investors can spot trends and patterns across the organization, compare the results of various subsidiaries, and assess how intercompany transactions affect total revenue by using consolidated revenue.
On the other hand, standalone data gives an in-depth picture of the income performance of a single organization. Investors can use it to evaluate the company’s potential for growth, profitability, and market competitiveness. Investors can assess the entity’s capacity to produce sustainable income and make well-informed investment and risk assessment decisions using standalone revenue analysis.
In conclusion, consolidated and standalone revenue have a big impact on financial analyses. Investors can use these measurements to assess a company’s financial standing, future growth potential, and market competitiveness. Investors can get important insights and make wise choices in the evolving corporate environment by examining both consolidated and standalone sales numbers.
New Delhi, February 19, 2024 – The Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) have formed a strategic alliance, signing a Memorandum of Understanding (MoU) to boost renewable energy initiatives across India. This collaboration aims to co-finance and syndicate loans for diverse renewable energy projects, marking a significant step towards achieving sustainable energy goals. Despite this the stock trades negative in the early session.
Strengthening Renewable Energy Financing
In a significant move at IREDA’s New Delhi office, Dr. R. C. Sharma, IREDA’s General Manager, and Shri Rajeeva, PNB’s Chief General Manager, inked the MoU. This event, witnessed by Shri Pradip Kumar Das, IREDA’s CMD, and Shri Atul Kumar Goel, PNB’s MD & CEO, along with senior officials from both entities, sets the stage for a transformative partnership in renewable energy financing.
A United Front for Green Energy
“This strategic partnership between IREDA and PNB represents a major leap in our mission to accelerate renewable energy growth in India,” stated Shri Pradip Kumar Das, CMD of IREDA. By leveraging their combined strengths, IREDA and PNB are committed to offering substantial financial backing to renewable energy projects, thus supporting sustainability and environmental conservation. This initiative aligns perfectly with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.
Broadening Support for Renewable Projects
The MoU includes provisions for joint lending, loan syndication, and underwriting, as well as managing Trust and Retention Account (TRA) for IREDA borrowers. It also facilitates investments in bonds issued by either organization, ensuring competitive terms of sanction and pricing for IREDA borrowings.
Building a Coalition for Clean Energy
IREDA’s collaboration with PNB enhances its portfolio of partnerships with premier financial institutions aimed at co-lending and loan syndication for renewable energy projects across India. Moreover, these strategic alliances underscore the collective drive towards meeting India’s renewable energy aspirations.
Recent development for IREDA
Bhubaneswar, February 11 – IREDA takes a groundbreaking step by partnering with the Indian Institute of Technology, Bhubaneswar, to foster innovation and research in the renewable energy sector. Signed at the 100 Cube Start-up Conclave at IIT Bhubaneswar, this MoU aims to support collaborative innovation, technology transfer, and the nurturing of the start-up ecosystem in renewable energy.
Pioneering Renewable Energy Research
Shri Pradip Kumar Das, CMD of IREDA, and Dr. Debi Prasad Dogra, Independent Director of IIT Bhubaneswar, sealed the partnership in the presence of Shri Dharmendra Pradhan, the Hon’ble Union Minister, and Prof. Shreepad Karmalkar, Director of IIT Bhubaneswar. “Our partnership with IIT Bhubaneswar marks a pivotal milestone in promoting sustainable development and innovation within the renewable energy sector,” said Shri Pradip Kumar Das.
Advancing Clean Energy Development
The collaboration promises to jumpstart joint research initiatives, facilitate technology transfers, and offer comprehensive support to start-ups in clean energy. It also includes capacity-building efforts such as training programs and workshops to bolster IREDA officials’ expertise in renewable energy.
Why IREDA share is going up?
Litsed just a month ago, shares of IREDA have more than doubled in the PSU rally. This increase in stock price is primarily because of the PSU stock growth we witnessed in the early half of Febuary. Moreover, we feel the stock was undervalued at a listing price. Despite the recent up stock currently trades at a PE of 35, this is fairly valued as per the valuations of the competitors. Investors must explore into balance sheet of companies before making a buy or sell decision.
Embracing a Sustainable Future
These partnerships signal IREDA’s commitment to advancing India’s renewable energy capabilities. Through strategic collaborations and fostering innovation, IREDA aims to pave the way for a sustainable and energy-secure future, aligning with national and global clean energy targets. Read more on renewable energy and Tata Power below.
Also follow us on Tradealone for more such timely updates on your favourite stocks.
Key Developments at Manorama Industries
Raipur, January 15th, 2024 – Manorama Industries Limited, a front-runner in specialty fats, butters, and exotic products, is hitting the headlines with two major announcements that could reshape its market presence and shareholder value.
1:5 Stock Split: Making Shares More Accessible
The Board of Directors has given the green light to a stock split, changing the face value of its shares from INR 10 to INR 2. What does this mean for investors? Simply put, it’s going to make the company’s shares more affordable and increase their liquidity in the market. A smart move that could attract more investors!
Geographic Expansion and Product Diversification
The company isn’t just stopping at a stock split. They’re setting their sights on bigger, global goals. Manorama plans to strengthen its roots in key international markets by setting up entities in the UAE, Russia, and other strategic locations. This expansion aims to bolster their business operations significantly.
Chocolate & Confectionery: The New Frontier
But there’s more brewing at Manorama. They’re eyeing the lucrative Chocolate & Confectionery sector. Think real chocolate, super compound slabs, compound chocolate, and specialty cocoa products. It’s a natural extension of their existing business line, tapping into both domestic and international markets.
Updates and Developments:
- New Fractionation Plant: The company is gearing up to complete its new fractionation plant’s CAPEX by FY24. This expansion is set to boost its production capacity, solidifying its position in the global market for CBE and specialty butter & fats.
- Credit Rating Upgrade: Manorama’s commitment to growth and excellence has been recognized with an upgraded credit rating by CARE, now standing at ‘CARE A-, Stable’.
- Investor Relations: Ernst & Young LLP has been roped in to manage their investor relations, signaling a step towards strengthening stakeholder communication.
- Manorama Industries share has jumped around 100% in the last 1 year, doubling from 1000 to 2000 rupees per share. It’d be interesting to see how the stock price reacts to this news.
Words from the President
Mr. Ashish Saraf, President of Manorama Industries, expresses confidence in these strategic moves. The stock split, geographic expansion, and foray into new product lines are not just about growth but also about enhancing shareholder value and meeting global demands.
About Manorama Industries Limited (MIL)
Since 2005, MIL has been a leader in the manufacturing of specialty fats & butters. With a focus on R&D and quality, MIL offers customized solutions to top global companies. Their commitment to ESG practices underscores their dedication to sustainable and responsible growth.
EaseMy Trip popularly known for for its travel services, just stepped into the insurance world with the launch of its new arm, EaseMyTrip Insurance Broker Private Limited. This move aims to expand their services and cater to the insurance market’s growing needs. By venturing into insurance, the company plans to leverage its customer base of 20 million users.
EaseMy Trip is looking at Opportunities in the Insurance Market
India’s insurance sector is on the rise, with annual growth rates of 32-34%. By 2027, experts believe that the sector can reach a milestone of US$200 billion. EaseMy Trip sees this as an opportunity to expand its offerings and expand its business horizons.
Pioneering Change in the Industry
The incorporation of EaseMyTrip Insurance Broker Private Limited as a distinct entity under the parent brand signifies the company’s dedication to innovation. Mr. Nishant Pitti, a driving force behind the company, takes the helm as the Director, ushering in a new era for the company.
CEO’s Enthusiasm and Vision
Mr. Nishant Pitti, CEO and Co-Founder of EaseMyTrip, is excited about this leap into the insurance domain. He aims to elevate their customer offerings by providing a comprehensive travel ecosystem that now includes insurance solutions.
A Vision for Innovation
EaseMyTrip Insurance Broker Private Limited is set to redefine the insurance sector. Fueled by innovation and a customer-centric approach, the company aims to meet customers’ evolving needs effectively.
A Glimpse into EaseMyTrip
EaseMyTrip, a prominent online travel platform listed on NSE and BSE, has been flourishing at a remarkable rate. Offering end-to-end travel solutions with no booking fees, it provides access to a vast network of airlines, hotels, and transportation services. Read more Finance news with Tradealone.
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