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19 January 2024 : Important Financial News in India

FINANCE MARKET HEADLINES TODAY
FINANCE MARKET HEADLINES TODAY

Source: Economic Times, “Today’s ePaper”
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Table of Contents

Sony Calls Board Meeting Today for Zee Merger Call

Sony Group Corp is convening a board meeting to deliberate on a significant merger proposal with Zee Entertainment Enterprises, a key player in India’s media and entertainment sector. This merger, estimated at $10 billion, is a critical strategic move for Sony’s operations in India. The merger would not only reshape the landscape of the Indian media industry but also signifies Sony’s commitment to expanding its footprint in one of the world’s largest and most dynamic markets. The potential amalgamation of these two giants could lead to a new era of media dominance in India, offering a diverse range of content and services to a vast audience. It also reflects the ongoing consolidation in the global media industry, as companies strive to become more competitive and adaptive in the rapidly changing digital world.

Clear Skies in Sight, Consumer Cos Ready Their Summer Playlist

Manufacturers of consumer products like air-conditioners, beverages, and soaps are gearing up for increased production in anticipation of the summer season of 2024. This proactive approach is based on early weather predictions suggesting a stable season with minimal disruptions, unlike the previous year. The implication here is significant for the consumer goods sector, as stable weather conditions often lead to consistent consumer demand patterns, allowing companies to optimize production and supply chain strategies. This readiness to meet potential demand surges underscores the importance of weather forecasts in business planning and the adaptive nature of the consumer goods industry.

Cyrus’ Sons Join Board of SP Holdco

Firoz and Zahan Mistry, the sons of the late Cyrus Mistry, have been appointed as directors at one of the holding units of the Shapoorji Pallonji (SP) Group, which is currently undergoing a reorganization. This move marks a generational transition in the leadership of the conglomerate, aligning with the broader trend of succession planning in family-owned businesses. The SP Group, known for its diversified business interests, is reverting to its traditional family holding structures, SC Finance and SP Finance, as part of its business recasting. The induction of the next generation into key roles indicates a blend of legacy and new perspectives in the group’s future strategy.

Modest Tax Revenue Target Likely for FY25

The Indian government is likely to set a modest increase in its net tax revenue target for the fiscal year 2025, aiming for a 9-11% growth over the current year’s budget estimates. This conservative approach, expected to be revealed in the interim budget on February 1, reflects a cautious fiscal strategy in light of the economic landscape. The target is a crucial indicator of the government’s revenue expectations and plays a significant role in shaping its expenditure and investment plans. It also gives insights into the government’s assessment of the economic environment and its impact on tax collections.

It’s Not Placements As Usual for IIMs

India’s premier business schools, the Indian Institutes of Management (IIMs), are facing challenges in securing placements for all their students during the current season. This situation is attributed to the global economic slowdown and a recalibration following a period of over-hiring in the post-Covid era. The difficulties faced by the IIMs, traditionally known for their high placement rates, highlight the broader impacts of the global economic environment on employment trends. This scenario also emphasizes the need for adaptability in career strategies for graduates and the significance of economic cycles in influencing job markets.

FPI Selloff in HDFC could Boost Weight in MSCI Index

The recent selling of HDFC Bank shares by foreign portfolio investors (FPIs) might lead to an increased weight for the bank in the MSCI index. This potential re-evaluation arises because the index, which tracks stock performance globally, adjusts its weightings based on market dynamics and shareholding patterns. A significant selloff by FPIs could alter the ownership structure of HDFC Bank, thereby impacting its representation in the index. Such a shift in the MSCI index can influence global investment flows, as many funds track this index for their investment strategies.

SBI Raises ₹5,000 cr Through AT-1 Bonds

The State Bank of India (SBI) has successfully raised ₹5,000 crore by issuing additional tier-1 (AT-1) bonds. AT-1 bonds are a type of perpetual debt instrument that banks use to strengthen their core capital base. This move by SBI indicates a proactive approach to bolster its long-term non-equity capital, particularly in light of the robust credit demand in the economy. The issuance of these bonds is a strategic financial decision that enhances SBI’s ability to sustain and expand its lending activities.

IndusInd Bank to Open 4 more Branches in Ayodhya

IndusInd Bank is planning to open four additional branches in Ayodhya, a city of religious and historical significance in India. This expansion aligns with the bank’s growth strategy and taps into the potential economic uplift surrounding the upcoming consecration of the Ram Temple in Ayodhya. The move suggests a strategic positioning by IndusInd Bank to capitalize on the increasing economic activities and the expected influx of visitors and investments in the area.

FPIs Breaching Exposure Levels to Reveal ODI Holder Details

Foreign portfolio investors (FPIs) are now required to disclose the identities of holders of overseas derivative instruments (ODIs) if they exceed specified exposure levels. This regulatory measure aims to enhance transparency in the financial market, particularly concerning investments that are often complex and opaque. The move is significant for market integrity and could affect investment strategies of FPIs, as they now need to be more forthcoming about their ODI holders’ identities.

Oracle Financial Services Soars 27%, Analysts Still Optimistic

Shares of Oracle Financial Services Software (OFSS) surged by over 27%, reaching all-time highs, driven by positive market reactions to their impressive third-quarter results. The spike in OFSS’s stock price reflects investor confidence and bullish sentiment in the market, encouraged by the company’s performance that exceeded expectations. This trend highlights the impact of corporate financial results on investor behavior and market dynamics.

Indian Economy Poised to Sustain Growth Momentum: RBI Report

According to a report by the Reserve Bank of India (RBI), the Indian economy is set to continue its growth trajectory in 2024. However, challenges such as the slow revival of the rural economy and moderate private consumption growth underline the need for targeted measures to achieve inclusive growth. The report emphasizes the importance of controlling inflation to around 4% as a key strategy for sustaining economic momentum.

Vulnerability to Climate Change Making Food Inflation Structural: RBI Economists

RBI economists have pointed out that the persistent impact of climate change, particularly on monsoon patterns, is making food inflation a structural issue. Traditionally considered beyond the scope of monetary policy, persistent food price shocks due to climate-induced anomalies may necessitate rate actions to prevent uncontrolled inflation expectations. This perspective underscores the growing importance of environmental factors in economic policymaking.

Epack Durable Raises Rs192 cr from Anchors

Epack Durable has raised Rs192 crore from anchor investors ahead of its Rs640.5 crore Initial Public Offering (IPO). The company allocated approximately 83.5 lakh shares at Rs230 per share to both domestic and foreign investors. This pre-IPO funding is a significant milestone for Epack Durable, indicating investor confidence and setting a positive precedent for its upcoming IPO.

NSE World’s Largest Derivatives Exchange

For the fifth consecutive year, the National Stock Exchange of India (NSE) has retained its status as the world’s largest derivatives exchange group in 2023. This ranking is based on the volume of contracts traded and is a testament to the NSE’s prominent position in the global financial markets. The data, sourced from the Futures Industry Association, underscores NSE’s pivotal role in the derivatives trading landscape.

South Indian Bank Q3 Net Nearly Triples

South Indian Bank reported a near tripling of its net profit in the quarter ending December 2023, reaching Rs305 crore. The bank experienced a 15% rise in interest income and a 29% increase in interest expenses. This financial performance, detailed in stock exchange filings, reflects the bank’s robust growth and operational efficiency in a challenging economic environment.

HDFC Bank Plans Singapore Branch

HDFC Bank is planning to open its first branch in Singapore, marking a significant step in its international expansion. This move follows the bank’s merger with Housing Development Finance Corp (HDFC) last year. The establishment of a branch in Singapore signifies HDFC Bank’s ambition to extend its global reach and tap into new markets, reflecting the growing trend of Indian banks expanding overseas.

LTIMindtree’s Bumpy Ride May Not be Over

LTIMindtree, a prominent player in the IT services sector, is facing a challenging period, with expectations of muted performance in the March quarter. The company is grappling with delays in project ramp-ups from clients, primarily due to economic uncertainties in key Western markets. This scenario indicates a cautious approach from clients in initiating or expanding projects, reflecting broader economic concerns that impact IT service providers. LTIMindtree’s situation highlights the sensitivity of the IT sector to global economic conditions and client spending patterns, which can significantly influence revenues and growth prospects.

IndusInd’s Q3 Net Up 17% on Strong Retail Loan Demand

IndusInd Bank has reported a 17% increase in net profit year-on-year, primarily driven by a surge in consumer loan demand. This performance indicates a robust appetite for retail lending, which includes personal loans, home loans, and vehicle financing, among others. The bank’s ability to capitalize on this demand, coupled with strong other income (a category that includes fees, commissions, and trading profits), has contributed to its profitable growth. This positive outcome in a challenging economic environment underscores the bank’s operational efficiency and strategic focus on retail lending.

SBI Taps ARCs for Sale of Hindusthan National Glass Loan

The State Bank of India (SBI) is engaging with asset reconstruction companies (ARCs) to sell its ₹1,272 crore loan to Hindusthan National Glass, currently under corporate insolvency proceedings. This move is part of SBI’s strategy to manage its non-performing assets (loans that are not yielding returns) by transferring them to ARCs, which specialize in acquiring and restructuring distressed assets. This transaction reflects the ongoing efforts by banks to clean up their balance sheets by offloading bad loans, a crucial step in maintaining financial health and operational efficiency.

Central Bank, 10 Others File Bids for Future Ent Assets

The debt-laden Future Enterprises Limited (FEL) has attracted interest from eleven entities, including the lead creditor Central Bank of India, for either complete or partial acquisition of its assets. These entities range from stressed asset aggregators to non-banking finance companies and investment firms. This development indicates significant interest in the distressed assets of FEL, highlighting the potential for value extraction from such acquisitions. The participation of diverse entities in the bidding process demonstrates the varied strategies employed in the distressed assets market.

ESMA Likely to Seek Board Help to Resolve Stalemate with RBI

The European Securities and Markets Authority (ESMA) is considering approaching its board for assistance in resolving a regulatory deadlock with the Reserve Bank of India (RBI). This stalemate concerns issues impeding billions of dollars in bond and derivatives trades by European banks in India. The resolution of this conflict is crucial for maintaining smooth financial relations and trade flows between Europe and India. It underscores the complexity and importance of international financial regulations and the need for harmonious regulatory frameworks across jurisdictions.

FPI Ownership of Indian GSecs Surges to a Record

Foreign Portfolio Investment (FPI) in Indian government securities (GSecs) has reached a record high, particularly under the Fully Accessible Route (FAR). FAR allows unrestricted foreign investment in specified government bonds. This surge in FPI ownership, ahead of the inclusion of these bonds in a global index in June, signifies international investor confidence in Indian sovereign papers. Such investments are critical for the Indian economy, as they bring in foreign capital, influence bond yields, and reflect the global perception of India’s economic stability and growth prospects.

SAEL Set to Close $1 Billion Fundraise from Foreign, Domestic Investors

SAEL Ltd, a company transforming agricultural waste into energy, is nearing a significant milestone in securing $1 billion funding from investors in the US and Europe. This substantial fundraise highlights the growing interest in sustainable and renewable energy projects, especially those converting waste to energy. The involvement of major foreign investors underscores the global appeal of eco-friendly energy solutions and the potential for such initiatives to attract substantial international capital. For SAEL, this funding could enable significant expansion and innovation in its operations, contributing to energy sustainability and waste management.

Global Capability Centres Shell Out Premium to Hire Top Talent

Global Capability Centres (GCCs) in India are increasing the salaries of their top executives, including CXOs, reflecting their evolution and growing importance within multinational corporations. GCCs, offshore units providing support and services to their parent companies, have moved up the value chain, necessitating the recruitment of high-caliber talent. This salary uptrend signifies the burgeoning role of GCCs in global business strategies and the competitive market for top executive talent in India.

Sterling and Wilson’s Q3 Net Loss Narrows, Reports Strong Orders

Sterling and Wilson Energy reported a narrowed net loss in the December quarter, indicating an improvement in its financial health. This positive shift is attributed to higher revenues, demonstrating the company’s ability to secure strong orders and enhance operational efficiency. Such a financial turnaround is significant for the company’s future growth and stability, reflecting its resilience in a challenging business environment.

Air India’s $200m Tech Overhaul to Elevate Passenger Experience

Air India is on the verge of completing a $200 million technological overhaul aimed at enhancing passenger experience and improving fleet management. This investment in technology is a strategic move to better handle flight disruptions and optimize operations amid frequent supply chain challenges. It signifies Air India’s commitment to improving service quality and operational efficiency, crucial in the competitive airline industry.

Metals, Mining Cos to Outshine Steel makers in Q3

Metal and mining companies are expected to report mixed earnings for the December quarter, with miners likely benefiting from higher prices and volume growth, in contrast to steelmakers facing increased imports and production costs. This scenario illustrates the diverse impacts of market conditions on different sectors within the metals and mining industry and highlights the variable factors influencing profitability.

‘New Jet Owner Must Deposit ₹150cr by Jan 31’

The Supreme Court has ordered the Jalan-Kalrock consortium, successful bidders for Jet Airways, to deposit ₹150 crore with the State Bank of India by January 31. This development adds a financial obligation to the revival process of the grounded airline, signifying the complexities involved in such large-scale corporate recoveries.

‘Property Rates in Top 13 Cities Rise 19% in Q3’

Property prices in India’s 13 prime cities have surged by 18.8% year-on-year, with cities like Gurugram, Greater Noida, and Noida experiencing the highest appreciation. This rise in property rates, reported by the Magicbricks Propindex Report, indicates a robust real estate market and could have implications for housing affordability and investment patterns.

JSL Posts 35% Rise in Q3 Net

Jindal Stainless Ltd (JSL) reported a 35% increase in its net profit for the December quarter, aided by lower expenses. This financial performance demonstrates the company’s effective cost management and operational efficiency, positioning it for sustainable growth in the stainless steel industry.

Jewellers Join the Temple Run, with Mandir Souvenirs

Top jewellers and bullion agents are creating customized gold and silver souvenirs for the consecration ceremony of the Ram Temple in Ayodhya. This move taps into the religious and cultural significance of the event, showcasing the adaptability of the jewelry industry in catering to diverse consumer interests.

‘Strong Festive Demand Saved Phone Sales in 2023’

The smartphone market in 2023 remained stable, thanks to robust demand during the festive season, as reported by market trackers. This stability, despite a potential steep decline, highlights the critical role of seasonal demand in consumer electronics sales.

Aim to Reach 140 mt Coal Stock Target this FY: Secy

The Coal Ministry of India is targeting a coal stock accumulation of at least 140 million tonnes by the end of the current financial year, as stated by Coal Secretary Amrit Lal Meena. This goal is significant as it reflects the government’s efforts to ensure a stable and sufficient supply of coal, crucial for India’s energy security and industrial needs. Achieving this target would likely enhance the country’s readiness to meet energy demands and reduce the risk of power shortages, especially during high-demand periods.

Equity Investments of ₹5,607 cr by Coal India Arms Get CCEA Nod

The Cabinet Committee on Economic Affairs has approved equity investments totaling ₹5,607 crore by Coal India subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd(MCL). These investments are earmarked for establishing two thermal power plants with a total capacity of 2,260 MW. The approval, which includes a 20% variation possibility in the investment, underscores the government’s commitment to expanding India’s power generation capacity and possibly indicates a strategic shift towards enhancing energy production infrastructure.

NHAI may Monetise More Than ₹1-L cr Assets by FY24 End

The National Highways Authority of India (NHAI) is on track to exceed ₹1 lakh crore in asset monetisation by the end of this financial year, expecting to garner about ₹40,000 crore. This would mark the highest receipt from such monetisation efforts since 2018-19. Asset monetisation involves converting assets into economic value, often through leasing or selling. This strategy is crucial for NHAI to fund new infrastructure projects and maintain existing ones, reflecting a sustainable approach to financing large-scale public works.

NHAI Involved in 150 Arbitration Cases

NHAI is currently involved in around 150 arbitration cases related to build-operate-transfer (BOT) projects in toll and annuity. The total claims amount to ₹1,09,000 crore, with 95 arbitral awards already published involving claims of ₹41,100 crore and 62 ongoing cases amounting to ₹83,800 crore. These cases highlight the complex nature of infrastructure projects and the disputes that can arise, particularly in large-scale BOT projects, which are crucial for developing and maintaining India’s highway network.

‘Solution for Food Security First, Other Agri Issues Later’

India has declared its stance at the World Trade Organization (WTO), prioritizing a permanent solution for its food stock procurement measures before negotiating any other agriculture-related issues. This approach emphasizes the importance of food security for India, reflecting the country’s focus on ensuring an adequate and stable supply of essential food items for its population.

States In India Are Expected To See Their Revenues From Alcohol Rise To Nearly 13.3%

States in India are expected to see their revenues from alcohol rise to nearly 13.3% of their own-tax collection in the 2023-24 fiscal year, up from 11.4% a decade earlier. This increase indicates a significant contribution of alcohol sales to state finances, reflecting its role as a substantial revenue generator. The trend could have implications for state policies on alcohol sales and consumption.

Coming Soon: A Portal for Aspiring Exporters to get Info

The Commerce Ministry plans to launch an online platform within the next 2-3 months to assist aspiring exporters. This portal will provide comprehensive information, including custom duties details, facilitating easier access to relevant data for those looking to venture into the export business. This initiative is indicative of the government’s efforts to promote exports and support businesses in navigating the complexities of international trade.

SpiceJet-Celestial Hearing Deferred Amid Settlement Talks

The insolvency proceedings against budget airline SpiceJet, filed by its aircraft lessor Celestial Aviation, have been adjourned by the National Company Law Tribunal, Delhi, to February 26. This adjournment, amid ongoing settlement talks between the two parties, indicates a possible resolution outside of formal legal proceedings. The outcome of these talks could have significant implications for SpiceJet’s operations and financial stability.

Akasa to Induct 150 Boeing Planes into Fleet by ’32

Budget airline Akasa Air is set to significantly expand its fleet, with an order of 150 Boeing 737 MAX jetliners, aiming to capitalize on India’s burgeoning domestic aviation market. This ambitious expansion plan indicates Akasa Air’s confidence in the growth potential of the Indian aviation sector and its commitment to establishing a strong presence in the market. The Boeing 737 MAX is a modern, fuel-efficient aircraft, suggesting Akasa Air’s focus on operational efficiency and environmental considerations. This expansion will likely increase competition in the Indian aviation industry, potentially leading to more flight options and competitive pricing for consumers.

Ivanhoe, LOGOS to Line Up over ₹1.1k cr for Logistic Park in Pune

Ivanhoe Cambridge and LOGOS are investing over ₹1,100 crore in developing a logistic park in Pune’s Chakan. This investment, constituting one of India’s largest foreign direct investments in private industrial and logistics development, signifies a strong confidence in the Indian logistics sector. The project aims to enhance the infrastructure for storage and distribution, crucial for the efficiency of supply chains. This development is expected to boost the local economy and create job opportunities, aligning with the increasing demand for organized logistics solutions in India.

IMAX Posts Record India Box-Office Earnings in ’23

IMAX Corporation, a Canadian entertainment technology company, reported record box-office earnings in India for 2023, totaling $23.1 million. This achievement, driven by both Hollywood and Indian films, demonstrates the growing popularity of the IMAX experience among Indian audiences. The increase in admissions and ticket pricing reflects a robust demand for high-quality cinematic experiences. IMAX’s success in India highlights the potential of premium movie formats in the country’s evolving film industry.

Sun Pharma to Buy Remaining 21.5% in Taro for Rs2,892 cr

Sun Pharma, India’s largest pharmaceutical company, announced its plans to acquire the remaining 21.52% stake in Israel-based Taro Pharmaceutical Industries for ₹2,891.7 crore. This acquisition will make Taro a wholly-owned subsidiary of Sun Pharma, indicating a strategic move to consolidate its position in the global pharmaceutical market. The acquisition is expected to strengthen Sun Pharma’s product portfolio and market reach, reflecting its ambition to be a key player in the international pharmaceutical landscape.

Luxury Real Estate Boom is Here to Stay

Despite a significant rise in property prices and mortgage rates, India’s ultra-high-net-worth individuals (Ultra HNIs) continue to show strong interest in the luxury real estate market. According to a survey by India Sotheby’s International Realty (ISIR), 71% of Ultra HNIs are planning to invest in real estate in the next 12-24 months. This trend indicates sustained confidence in the luxury real estate segment, suggesting robust growth and investment opportunities in this sector.

Back Up Green Claims with Data: ASCI to Advertisers

The Advertising Standards Council of India (ASCI) has issued guidelines urging brands to substantiate their environment-friendly claims with strong data or credible accreditations. This directive aims to ensure transparency and accuracy in advertising, particularly in claims regarding environmental sustainability. It reflects a growing consumer awareness and demand for authentic and responsible marketing practices related to environmental claims.

Franchise Route for Govt Retail Stores on the Cards

The Indian government is considering adopting a franchise model to sell Bharat brand products directly to consumers. This approach is aimed at enhancing the reach and accessibility of government-produced goods. By leveraging the franchise model, the government intends to expand its retail presence and improve the consumer experience, potentially increasing the visibility and popularity of Bharat brand products.

MamyPoko Outpaces Pampers to Become India’s Top-selling Diaper Brand in FY23

Japanese personal care group Unicharm has overtaken Procter & Gamble in the Indian diaper market, with its MamyPoko brand becoming the top-selling diaper brand in FY23. The brand’s 28% revenue growth signifies its strong market penetration and consumer preference. This shift in market leadership highlights the competitive dynamics of the Indian personal care market and the success of brands that effectively cater to local consumer needs.

AB InBev Plans Rs400-cr Expansion

AnheuserBusch InBev, the world’s largest beer company, is planning to invest Rs400 crore to expand its brewery operations in Karnataka. This investment by the Belgium-based company is a significant move to enhance its production capabilities in India. It reflects AB InBev’s commitment to the Indian market and is likely to bolster its position in the country’s growing beer industry.

Ajmera-Keystone to Redevelop Hsg Project

Ajmera Realty & Infra India and Keystone Realtors have formed a joint venture to redevelop a housing society in Mumbai’s Bandra west. This collaboration marks a significant development in the real estate sector, focusing on urban redevelopment. It indicates the potential for urban renewal projects in metropolitan areas, addressing the need for modern housing solutions in prime locations.

Flyer Traffic in India to Reach 300m by 2030

India’s domestic air passenger traffic is projected to double to 300 million annually by 2030, as stated by Union Civil Aviation Minister Jyotiraditya Scindia. This forecast underscores the rapid growth potential of India’s aviation sector and the vast untapped market that remains. The anticipated increase in flyer traffic presents significant opportunities for airline companies and related industries while also posing challenges in terms of infrastructure development and sustainability.

Ecomm Clicks Dip in Dec, Trigger Growth Concerns

Ecommerce platforms experienced a notable decrease in sales volume in December, following the festive season. This downturn has raised concerns about growth prospects among online marketplaces and brands. Such a decline post-festive season is not unusual, but the significant drop this time around indicates potential challenges in maintaining consistent sales momentum. This trend suggests that ecommerce entities might need to reassess their strategies to sustain growth beyond peak seasons, possibly through diversifying offerings or enhancing customer engagement year-round.

TN and Telangana on Foxconn-HCL’s Radar for New Chip Facility

The HCL-Foxconn joint venture is actively discussing with the governments of Tamil Nadu and Telangana to establish a semiconductor assembly and testing unit. This move is a significant development in India’s burgeoning semiconductor industry. The establishment of such a facility could be a substantial boost to the local economies of these states and align with India’s broader goal of becoming a key player in the global semiconductor supply chain. It highlights the country’s increasing focus on technological self-reliance and the potential for attracting more foreign investment in high-tech sectors.

Insurtech Startups Limit Expenses to Secure Profits

In an effort to achieve profitability, insurtech startups Digit and Acko are reducing their expenses. This trend mirrors a larger shift in the startup ecosystem towards cost-saving measures and sustainable growth models. By focusing on profitability, these companies are adapting to the changing investment climate, which now emphasizes financial prudence over rapid growth. This shift could lead to more sustainable business models in the insurtech sector and may influence investment strategies in the startup space.

FinAGG Gets $11m in New Fundraising

FinAGG Technologies, a fintech startup offering working capital solutions to micro, small, and medium enterprises, has successfully raised $11 million. The funding round, led by Schroders-backed BlueOrchard and Tata Capital, signifies investor confidence in FinAGG’s business model and the fintech sector’s potential to revolutionize financial services for smaller businesses. This capital infusion could help FinAGG expand its services and reach, thereby supporting the growth of numerous small and medium-sized businesses.

Insurance Infra Firms Make Hay as D2C Cos Bundle Cover

The trend of consumer-facing companies bundling insurance packages with their products and services is creating new opportunities for digital insurance infrastructure startups. This development indicates a shift in the insurance distribution model, where insurance is integrated into the purchasing process of various products, enhancing convenience for consumers and opening new markets for insurance providers.

Margin Guidance won’t Hold up this Fiscal, says LTIMindtree’s Chatterjee

LTIMindtree’s CEO indicated that the company’s margin guidance of 17-18% might be deferred due to muted revenues and the ramp-up of new deals. This delay in achieving the targeted profit margins reflects the challenges in the tech outsourcing sector, including competitive pricing pressures and investment requirements for growth. The company’s focus on growth volumes suggests a strategic emphasis on expanding business over immediate profit margins.

Tata Communications Logs 88% Drop in Q3 Net Profit at ₹45 cr

Tata Communications reported an 88% drop in its net profit for the third quarter, despite a 24.4% increase in revenue driven by its data segment. This significant decrease in profit, juxtaposed with revenue growth, suggests operational or market challenges impacting profitability. The company’s performance in its data segment, however, indicates potential areas of strength and future growth opportunities.

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