Sometimes companies experience poor performance and then they make strategic changes to their business and experience a turnaround. Most of the time this performance is finance related and companies manage to make profits after suffering losses for some time.
Here are a few companies with a market capitalization greater than ₹ 5,000 crores that have gone through a turnaround:
Bharti Airtel
Airtel reported a net loss of ₹ 31316 crores in 2020 and ₹ 23327 in 2021. Thereafter it reduced its losses significantly and made a profit of ₹ 5882 crores in 2022.
Jio’s move to provide 4G services in India for free was a major blow to the business of its competitors. While Vodafone India and Idea had to merge to combat competition, Airtel managed a turnaround. This was followed by the pandemic that led t
The company took several measures like charging customers in order to continue to receive incoming calls and paying dues in advance to save interest costs. The company was able to increase its average revenue per user (ARPU) and make profits.
Bharti Airtel is a large-cap company with a market capitalization of 4.52 Lakh crores and its shares closed at ₹ 784.00 apiece on Thursday.
Yes Bank
The mid-sized lender suffered a deep loss of ₹ 22730 crores in 2020 and ₹ 3489 crores in 2021. This was followed by a profit of 1064 crores in 2022.
The bank was set up in 2004 and was India’s fifth largest lender until early 2020. The bank lurched from one crisis to another, including the arrest of its founder amid allegations of governance lapses. Its gross bad loans had risen to 18.87% of its total lending in December 2019 from 2.1% a year earlier.
The bank, however, managed a turnaround as state-owned banks and other private lenders had to step in to rescue it in 2020. Further, in August 2022, it sold up to a 10% stake to the Carlyle Group and Advent International to raise $ 1.1 billion to fund its expansion plan.
Yes Bank is a large-cap company with a market capitalization of 42.97 thousand crores and its shares closed at ₹ 17.15 apiece on Thursday.
Bharat Heavy Electricals Limited
The state-run engineering and manufacturing enterprise reported a loss of ₹ 1494 crores in 2020 and ₹ 2743 crores in 2021. Thereafter it reported a profit of 394 crores in ₹ 2022.
The company’s revenue and profits slipped, due to the weakness in both power and industry segments, according to the company’s filings. Its numbers improved after the effects of the pandemic started to recede.
Bharat Heavy Electricals Limited is a mid-cap company with a market capitalization of 21.50 thousand crores and its shares closed at ₹ 61.45 apiece on Thursday.
Written by Simran Bafna
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