India Inc has reported a muted start to the financial year 2024-25, with a decline in net earnings and a modest single-digit uptick in revenues. An analysis of 488 companies that have released their results for the June 2024 quarter reveals a 1.6 per cent year-on-year (Y-o-Y) drop in combined net profit -- the weakest performance in the past seven quarters. In stark contrast, the combined net profit of these companies experienced a 13.6 per cent Y-o-Y increase in the previous quarter (Q4FY24) and a 65.2 per cent Y-o-Y rise in Q1FY24.
The banking sector emerged as an outlier when the rest of India Inc witnessed a slowdown in earnings in FY23. The combined net profit of listed public and private sector banks was up 39.4 per cent year-on-year (YoY) last financial year and their share in India's gross value added (GVA) or gross domestic product (GDP) at factor cost rose to a record high of nearly 1 per cent up, from 0.8 per cent a year ago. Listed banks' combined net profit grew to Rs 2.36 trillion in FY23, from Rs 1.69 trillion a year ago. In comparison, India GVA at current prices was up 15.2 per cent YoY at Rs 247 trillion in FY23; it was around Rs 214 trillion a year ago.
Overseas fundraising by Indian firms is experiencing a robust revival in 2024, following a lacklustre 2023. This resurgence is primarily driven by strong demand for high-yield bonds from international investors amid improving liquidity conditions and reduced hedging costs. Indian companies raised ~32,619 crore through overseas bonds in the first half of 2024, surpassing the total amount raised via such instruments in the entire 2023, which stood at ~31,218 crore, according to PRIME Database. In comparison, ~45,237 crore was raised in 2022 and ~1.05 trillion was secured in 2021.
Industry insiders in India warn that any such move in the pharmaceutical sector could be counterproductive for the US as it may face increased drug shortages if tariffs are imposed on such imports.
Rahul Gandhi spoke about his vision of empowering women and giving voice to the people of billion-strong nation.
Employers in India are planning to outpace global adoption in certain future technologies as companies operating in the country are heavily investing in technologies like artificial intelligence (AI), energy technologies, robotics, and autonomous systems, said the World Economic Forum (WEF) in its latest "Future of Jobs" report released on Wednesday. The report, released days before the WEF annual meeting in Davos from January 20-25, notes that 35 per cent employers in India think that adopting semiconductors and computing technologies (compared to 20 per cent globally) will transform their operations while 21 per cent employers think that adopting quantum and encryption technologies (compared to 12 per cent globally) will also transform their operations.
India Inc has said the decision to hike in diesel price was "inevitable" and this would help in fiscal consolidation.
India Inc has learnt to take risks and compete with global players to create wealth, industry experts said on Monday.
RBI moves will further add to corporate woes. Harsh Mariwala, the president of industry body Ficci, said, "I am afraid that with such a hawkish monetary stand, the investment environment would become even more difficult. Growth and employment targets will certainly not be achieved."
"Namaste...Saal Mubarak...Diyas (Dipawali lights)... Diwali... Mumbaikars and Dharavi" were some of the expressions and words that Obama used in his interaction with a select group of leading industrialists.
India Inc may offer an average salary hike of 9.6 per cent in 2024, similar to the actual increase last year, according to a report released by global professional services provider Ernst & Young (EY). The 'Future of Pay 2024' report states that the highest salary hikes are expected in e-commerce (10.9 per cent), financial services (10.1 per cent), and 10 per cent each in professional services and real estate. The expected hike will be lower than the 10.4 per cent seen in 2022. In 2023, the highest salary hikes were seen in e-commerce (10.5 per cent), and 10.4 per cent both in auto/vehicle manufacturing and financial services.
Corporate magnate Ratan Tata on Friday said that Congress general secretary, Rahul Gandhi had opened a door for investments in Jammu and Kashmir.
India Inc's love affair with the health care business has just begun to blossom.
India Inc could be embarking upon a new phase of capital expenditure (capex) cycle, observed analysts, and suggest its revival would lead to a rerating of industrial stocks. Assisted by a property upcycle, analysts at Jefferies said several government initiatives were likely to drive capex. Indicators, they said, include a private project announcement at Rs 25 trillion for 2022-23 (up 150 per cent from pre-pandemic levels) and credit growth at about 16 per cent, which is closer to pre-pandemic highs.
Paras Defence and Space Technologies partners with Northstar Aviation to provide air-to-air refuelling technologies and support services to the Indian armed forces, enhancing mission endurance and operational flexibility.
Has liberalisation squeezed the personality out of India Inc's leaders?
Roughly 40% of this projected outlay is expected to go towards emerging industries, including green hydrogen, clean energy, semiconductors, and electric vehicles.
Today, when corporate governance practice has become a priority issue, a vast majority of India Inc feels there is a need for stronger regulatory review and enforcement, according to a report by the international consultancy firm KPMG.
Listed companies' net profit as a percentage of gross domestic product (GDP) has hit a decadal high and is expected to edge even higher over the next two financial years. According to an analysis by ICICI Securities, India's Inc net profit stood at Rs 8.4 trillion, or 4 per cent of GDP of Rs 210 trillion for the trailing 12-month period ending September. This is the highest since financial year 2011-12 (FY12), when it was at 4.6 per cent.
Though out of 200 firms approached, only 44 responded, nevertheless the 'Carbon Disclosure Project Report 2009' noted the response reflects that not only they were adopting more accurate methodologies but also providing break-down of their greenhouse gas emissions.
Outflows fell 16.4 per cent in April-Sept 2009 compared to the year-ago period.
The year saw India's biggest corporate fraud, falling earnings, stock market crash, job losses and soaring food prices which hit the common man
Riding high on the buoyant economy, an overwhelming majority of the India Inc lists innovation among the top three strategic priorities as compared to their global counterparts, a survey says.
It's been a challenge, especially being glued to the TV set for the late night matches.
India Inc has couter attacked claims by US presidential candidates about the drain of jobs from US to India.
Growth in corporate profits needs to be commensurate with wages to boost the economy, Economic Survey 2024-25 said, noting that sharp disparities between the two pose risk to the economy by curbing demand. The document tabled in Parliament on Friday noted that while the labour share of GVA (gross value added) shows a slight uptick, the disproportionate rise in corporate profitsredominantly among large firmsaises concerns about income inequality.
Mergers and acquisitions are set to become one of the most important trends of 2007 for India Inc, with the total deal value crossing $50-billion mark with one more month still to go. According to data compiled by international consultancy major Grant Thornton, India Inc recorded M&A deals worth $940 million in November, taking the total for first 11 months of 2007 to $50.79 billion.
The sales growth rate has been a 10-quarter low, dragged by slowdown in the key sectors -- capital goods, construction, infrastructure, non ferrous metals, steel and telecom -- that had contributed to India Inc's growth story in the past.
Tata Steel, Suzlon mop up $700 million; Tata Power to raise $250 million. Tata Power also joined the queue on Tuesday and launched its $250-million GDR issue, with an option to retain a higher amount.
Ashok Soota has cited 4 challenges that India Inc is facing. He stressed on a robust risk management strategy for Indian companies. He also stated responding to changes in market environment, resolving legal and regulatory differences and encouraging leadership and accepting cultural diversity as other challenges. Highlighting the challenges faced by the India Inc, experts said globalisation is essential to pursue growth opportunities and leverage comparative advantage.
Indian acquisitions have dropped to $27.3 billion in 2009.
