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Festo Launches ₹500 Crore Facility to Boost Automation
Business, Equities, Markets - January 14, 2025

NBFC & HFC Loan Growth to Slow in FY25 Amid Softer Demand and RBI Norms

NBFC & HFC Loan Growth to Slow in FY25 Amid Softer Demand and RBI Norms

Overview
A Jefferies study projected that the loan growth of Indian Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) (apart from Infrastructure Finance Companies (IFCs)) would slow to 17% in FY25 from 21% in FY24. According to the research, this moderation is the result of softer macroeconomic conditions, which have led to a decline in loan demand. It predicted that growth would level off and settle at healthy levels in FY26e. It predicted that growth would level off and settle at healthy levels in FY26e. With the exception of IFC, we anticipate that sector loan growth will slow to 17% in FY25e (compared to 21% in FY24) and level off around these levels in FY26e. Additionally, according to an article published in the Economic Times, most lenders recorded reduced credit growth in the three months due to a combination of factors, including slower consumer demand, risk aversion toward unsecured loans, and lackluster deposit growth until late into the December quarter.

RBI’s guidelines on lending to NBFCs led to a slowdown in credit growth
According to the research, this moderation has been aided by a cyclical downturn in industries like automobiles as well as decreased lending to unsecured and microfinance loans (MFI), in accordance with RBI advice.

In November of last year, the RBI released guidelines on the NBFC’s lending criteria which increased risk weights on bank funding to NBFCs. This acted as the preliminary reason behind the slowing down in credit growth. The shadow banks diversified their funding sources as a result of this action. These days, NBFCs are more often using the domestic capital market to raise money through bonds and the international market to access dollar bonds and syndicated loans. Put this in figures, compared to a 19% increase in the same time in 2023, lending growth to the NBFC sector fell to 7.8% year-over-year in the two weeks ended November 29, 2024. As a result of this slowdown, sectoral deployment data issued by the RBI showed that credit growth to the services sector decreased from 22.2% year over year to 14.4%.

In absolute terms, credit to the NBFC sector was Rs 15.75 trillion at the end of the two weeks ending November 29, 2024, as opposed to Rs 15.48 trillion at the end of the two weeks ending March 22, 2024, according to RBI data. In its most recent “trend and progress report,” the RBI emphasized that NBFCs must further diversify their funding sources as a risk mitigation tactic because, notwithstanding recent moderation, their reliance on banks is still significant.

Jefferies report further stated that during 1HFY25e, growth moderation was comparatively milder in other areas, although it has been significant in unsecured PL, consumer lending, and MFI.

According to the RBI’s Financial Stability Report, shadow bank loan growth slowed to 6.5% on a half-year-on-half-year (H-O-H) basis in September 2024 after the RBI increased risk weights on NBFC lending to specific consumer credit categories and bank lending to NBFCs. The RBI claims that the upper-layer NBFCs segment, which is mainly made up of NBFC-Investment credit companies and has a large percentage of retail lending (63.8%) in its loan book, was where the effects of the credit moderation were most noticeable. Nonetheless, middle-layer NBFCs—apart from government-owned NBFCs—maintained strong credit growth, particularly in portfolios of retail loans.

Additionally, private placement is the preferred method for bonds listed on reputable exchanges, and NBFCs continue to be the biggest issuers in the corporate bond market. NBFCs tried to diversify their funding sources by issuing more listed non-convertible debentures (NCDs) in the face of a slowdown in bank direct lending. In order to diversify their funding sources and keep total expenses under control, NBFCs are now taking out more foreign currency loans. Nevertheless, the RBI has issued a warning that, to the extent that these NBFCs remain unhedged, the increase in foreign currency borrowings may present currency concerns.

Asset Under Management of NBFCs on a decline
According to the research, NBFCs’ Asset Under Management (AUM) growth is anticipated to decrease to 20% in FY25 from 24% in FY24. HFCs might, however, experience better AUM growth, increasing from 11% in FY24 to 12–13% in FY26. Further, economic activity is expected to rise in FY26, which would help stabilize growth in the sector.For the FY25–27 period, the coverage AUM (excluding IIFL) is expected to grow at a CAGR of 19%, which is slightly higher than the 18% predicted for FY25. As of September 2024, the growth in loans for Housing Finance Companies (HFCs) and NBFCs has decreased from 22% in March 2024 to 20%.

Further, the slowdown has been most noticeable in consumer financing, MFI loans, and unsecured personal loans, while growth in other areas has slowed down somewhat in the first half of FY25. About 30% of NBFC and HFC lending is provided by infrastructure finance companies (IFCs), whose share of the sector’s asset under management (AUM) growth slowed to 15% in September 2024 from 18% in March 2024.

Sectoral credit growth trends to follow in 2025
By segment, incremental growth trends in 2025 are probably going to differ. Auto loans and other segments are forecast to stabilize and possibly pick up if macroeconomic conditions improve as planned, the research noted, even if growth in unsecured loans and MFI loans is predicted to remain muted throughout the first half of the year.

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India’s Steel Demand Set to Rise 8-9% in 2025

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Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity
Business, Equities, Markets - January 13, 2025

Adani Group Announces Rs. 65,000 Crore Investment in Chhattisgarh's Energy and Cement Sectors

Adani Group Announces Rs. 65,000 Crore Investment in Chhattisgarh’s Energy and Cement Sectors

On 12th January, 2025, the Adani Group announced an investment in projects related to energy and cement worth Rs. 65,000 crore in the state of Chhattisgarh. The announcement was made by chairman of Adani Group Gautam Adani, when he met Chief Minister of Chhattisgarh, Vishnu Deo Sai at CM’s official residence located in Raipur, capital of Chhattisgarh on 12th of January.

Adani Power is regarded as India’s top private producer of thermal power. In the previous month, the company was considering investing Rs 20,000 crore in establishing a coal-fired power plant in the state of Bihar.

The action of Adani Group to invest in Chhattisgarh acts as an expansion of scope of Adani Group’s investment areas. Earlier, it was limited to only states such as Maharashtra and Gujarat.

Aim of the investment plan in Chhattisgarh
The plan aims to increase the company’s power plants in the three cities of Chhattisgarh state which includes Raipur, Raigarh, and Korba. It aims to increase the state’s power generating capacity to around 6,120 MW. It will not only expand the power generation capacity of the State but also acts as a key for economic growth. It will help in creating a significant amount of job opportunities in the state and particularly in these three cities.

Along with this investment, the group has also allocated Rs. 5000 crore with the intention of expansion and development of the cement plants in the Chhattisgarh state. The aim is to intensify its manufacturing capabilities in the cement sector. The firm Adani Cement already has two integrated units in the state. It is located at Bhatapara and Jamul. The firm has already made public that it will expand its integrated unit in Bhatapara.

The investment plan in Chhattisgarh is giving Adani an advantage by giving them a chance to explore this unexplored potential in energy and infrastructure sectors. It will help in strengthening its shares in these sectors.

CSR initiatives
Adani Group also gave commitment to the government of Chhatisgarh that investment worth Rs. Rs. 10,000 crore will be given for the upcoming 4 years. This investment will be used for supporting social programs such as education, skill development, healthcare and tourism sectors. These initiatives will be undertaken by the aid of Adani Foundation.

Potential Collaborations
The meeting between the chairman of Adani Group and CM of Chattishgarh also discussed potential areas of collaborations for them. It includes areas such as manufacturing equipements related to defence sector and also on creation of data centres. It also explored potential in the establishment of a global capability centre in the state of Chhattisgarh. This exploration in various sectors will certainly encourage future development of the state in various sectors.

The overall investment plan of Adani Group in the state of Chhattisgarh consists of energy, cement, CSR, and other various sectors is anticipated to be around 75,000 crore. This will lead to creation of new employment opportunities and also boosting economic growth in the state of Chhattisgarh. It is not only an important step for Adani group in terms of expansion but for Chhattisgarh in terms of progressive growth.

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Air India aims to double international transit traffic in next 3 years

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Gold Prices Plunge as Israel-Iran Ceasefire Triggers Market Volatility
Business, Equities, Markets - January 13, 2025

Indian Gem & Jewelry Market Set to Grow from $85 Billion to $130 Billion by 2030

Indian Gem & Jewelry Market Set to Grow from $85 Billion to $130 Billion by 2030

Overview
Currently valued at USD 85 billion, the Gem & Jewellery Export Promotion Council (GJEPC), the leading trade association for the gem and jewelry sector, projects that the Indian market would grow quickly to USD 130 billion by 2030.

De Beers Group Collabaration
GJEPC chairman Vipul Shah stated at a press conference that the organization has so far spent Rs 150 crores on generic diamond advertising worldwide. In order to bolster this endeavor, GJEPC and De Beers inked a formal Memorandum of Understanding on January 7th, 2025 to promote diamonds through the Retail Alliance in India.

The world’s top diamond firm, De Beers Group, and GJEPC announced the start of a strategic partnership aimed at enhancing the natural diamond narrative in the Indian gem and jewelry industry. The Indian Natural Diamond Retailer Alliance, or INDRA, is a partnership that will empower independent shops in India by providing them with capabilities that go above the norm, such as using artificial intelligence to develop tailored retailer marketing.

From September 11–13, 2025, GJEPC will hold its first exhibition in Saudi Arabia. This event would facilitate to bolster bilateral trade between India and the GCC region by way of opening up previously unheard-of possibilities for cooperation and positive change. Mr. Shah claims that this will pave the way for further trade between India and the GCC on a bilateral basis.

Shah further added that by leveraging the nation’s vibrant youth, the emergence of organized players, and the growing demand for bridal, everyday wear, fashion, and entry-level jewelry, INDRA is positioned to capitalize on this momentum. This program embodies a common goal of raising consumer demand, empowering retailers, and educating stakeholders—all while emphasizing the natural diamonds’ eternal value.

India is the world’s second-largest market for diamond jewelry retail sales, according to Sandrine Conseiller, CEO of De Beers, and it has room to develop in terms of diamond production and commerce. India still has a lot of unrealized potential, though, given its thriving economy, expanding youth population, and numerous well-known diamond companies. The current percentage of natural diamond penetration in the retail jewelry industry in India is just about 10%, far lower than that of more developed jewelry markets like the US. Within the next three years, plans are underway to raise it to fifty percent. We will contribute to the expansion of consumer demand for all forms of natural diamond jewelry, including bridal, daily wear, and entry-level items, through our new partnership with the GJEPC, Conseiller stated further.

He further highlighted the current state of affairs by stating that the global diamond jewelry business is valued at $89 billion. Regarding the US and India, the US is the biggest consumer of polished diamond and custom jewelry, while India is a significant market for these items. By 2030, India’s GDP is expected to have grown from its current value of 3.5 trillion dollars to $7.9 trillion. The jewelry and gem industries are among the coveted products that have seen significant growth in the Indian market.

Memorandum of Understanding with DHL Express
Additionally, GJEPC inked a Memorandum of Understanding with DHL Express, the world leader in international express services, to enable the effective transportation of jewelry made in India throughout the world, as part of an effort to increase gem and jewelry exports through e-commerce, Mr. Shah stated.

Mr. Shah maintained his optimism for 2025 in terms of exports. In the near future, demand for jewellery and diamonds is set to rise as US President Donald Trump is back at the White House there is increasing optimism that the geopolitical environment will stabilize, commerce will pick up and at the same time, supply chains are set to streamline. But, according to Mr. Shah, GJEPC is constantly looking into new markets while bolstering its position in current ones.

West Bengal as a global centre for costume and fashion jewelry
GJEPC intends to turn Singur, West Bengal, into a major hub for the export of fashionable jewelry and costumes worldwide. Women make up approximately 20% of the workforce in the manufacturing facilities in and around Singur, Hooghly, where about 1 lakh skilled Bengali artisans labor. The growth of Singur as an export hub would also benefit the local cottage industry. Recently, Singur began producing high-quality imported gypsum as well. The Hooghly district’s Singur is perfectly situated in the middle, near five train stations, and along the NH-2, which connects to Kolkata International Airport.

The artisanal heritage of Singur is based on the well-known craftsmanship of Kolkata, which provides a wealth of artistic abilities that Singur’s jewelry makers can utilize. He continued by saying that Singur’s manufacturers have a strategic chance to address this need and improve their worldwide visibility as a result of the US shifting global trade dynamics and shifting procurement away from China.

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Air India aims to double international transit traffic in next 3 years

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Jindal Steel & Power Q1 FY26: Profits Surge on Operational Gains and Strategic Growth
Business, Equities, Markets - January 13, 2025

India's Steel Demand Set to Rise 8-9% in 2025

India’s Steel Demand Set to Rise 8-9% in 2025

With a demand rise of 8–9% in 2025, India will continue to surpass other significant steel-consuming economies, according to CRISIL’s Market Intelligence & Analytics research. The survey also stated that increased demand from engineering, packaging, and other industries will fuel this need, as well as a move toward steel-intensive development in the housing and infrastructure sectors.

Domestic Supply still muted
However, the report notes that domestic supply will continue to be a “point of concern,” noting that demand in India is thought to have climbed by 11%. Weaker output growth in 2024 was also caused by competitive imports and a drop in exports. To put it in figures, 3.2 million tonnes of finished steel were made available outside of domestic production as a result of a 6.4% decrease in exports and a 24.5% increase in finished steel imports. Furthermore, this additional material availability satisfied 2% of the total demand for finished steel.

According to the research, India has seen a sharp rise in the import of finished steel in recent years from all major exporters. For instance, there is little to no amount of hot-rolled coils and strips (HRC) as well as cold-rolled coils and strips (CRC) supplied by China which has been a long-time supplier of alloy, stainless, and galvanized and coated steel. However, imports of HRC surged 28 times between 2022 and 2024, while imports of finished steel from China increased 2.4 times.

Notably, HRC is used as a raw material to make a variety of downstream goods with added value. Since these imports are frequently less expensive than domestic HRC, domestic steel prices are under pressure.

In a similar vein, HRC imports rose 16.6 times in 2024 compared to 2022, while total finished steel imports from Japan increased 2.8 times. At the same time, when HRC imports sored 27-fold, Vietnam’s finished steel imports increased 8-fold. South Korea’s proportion in India’s completed steel import basket decreased due to its very moderate import growth.

Domestic Steel prices fall
In contrast, domestic steel prices fell in 2024 as a result of increased material supply brought on by a rise in net imports. The topline growth of domestic mills was slowed by a 9% decrease in HRC pricing and a 7% reduction in CRC prices. Nonetheless, the study indicates that low volatility and declining coking coal prices have lessened margin pressure to some extent.

In 2024, the spot price of coking coal for the Premium Low Volatility grade, which is of Australian origin, dropped by 12%, although iron ore prices are expected to have increased by 9% to 10% over that time. Interestingly, the cost of Chinese HRC exports decreased by 12% in 2024 and remains cheaper than that of local mills.

Steel Prices in 2025
According to the analysis, if the industry’s suggested safeguard charge is imposed, steel prices in 2025 would be significantly higher than in 2024, with the impact being more noticeable in the first half of the year.

HD Kumaraswamy, the Union Steel Minister, recently told a news agency that the government was thinking of putting a 25% ‘safeguard duty’ on steel imports. It follows concerns expressed by a number of industry participants regarding low-cost steel imports from China and other nations.

Vishal Singh from CRISIL stated regarding the steel prices saying that steel prices are set to remain soft in 2025 amid global steel prices going on a downtrend. Prices could increase by 4-6% if the safeguard duty is implemented. Additionally, flat steel costs will drop as mills boost production volume from recently commissioned capabilities, but they will still be higher than the average price for 2024.

Global Steel Demand
In 2024, the demand for steel globally saw a slight decline of 1% as per the report published by CRISIL. Despite favorable regulatory changes and the delivery of assistance packages, demand in China, the world’s largest producer and consumer of steel, fell 3.5%, driven mostly by a fall in steel demand from the real estate sector.

The demand for steel from the US, Japan, and Europe also saw an estimated 2-3% decline in demand. Demand growth in emerging nations like Brazil and India, however, prevented a sharp drop in worldwide demand. According to estimates, demand has grown by 2.7% in other steel-consuming economies, 5.6% in Brazil, and 11% in India.

Due to improved financing circumstances and pent-up demand from several important steel-consuming economies, which would boost manufacturing operations, the world’s steel demand is predicted to increase by 0.5% to 1.5% in 2025.

Growth will also be supported by the expected recovery in residential construction in economies including the US, EU, and Korea, which coincides with the loosening of financing requirements. According to the research, India would remain at the top of the demand rankings.

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Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

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Air India’s Mega Aircraft Deal: Financing India’s Largest Fleet Expansion via GIFT City and Global Leasing Hubs
Business, Equities, Markets - January 13, 2025

Air India aims to double international transit traffic in next 3 years

Air India aims to double international transit traffic in next 3 years

Air India’s Chief Commercial Officer (CCO) Nipun Aggarwal stated that currently Air India’s total international passengers close to 10 percent use Indian airports as transit hubs. Annually, around 130 million passengers fly over India. In this, the transit traffic of about 10 percent and 7.5 percent is handled by Dubai and Doha, respectively. Compared to this, Delhi handles less than 1 percent of this transit traffic in current times. According to Aggrawal, this could act as a significant growth opportunity. Air India’s total international traffic is expected to grow by 15 percent to 20 percent in the next three years. This is Air India’s aspiration and commitment to achieve the goal.

Expansion plan of international transit traffic
Aggrawal states that the airline has already increased its transit traffic to the west and now it is time to increase the connectivity in the east of India as well. With a particular focus on Southeast Asia to attract more international-to-international (I2I) traffic.

He further states that Indian airlines have largely failed to notice the unexplored potential in the Europe-Australia corridor. Air India has adjusted their flight schedules to ensure smooth and convenient connectivity of Western destinations such as Frankfurt, Paris, London with Eastern destinations such as Melbourne and Sydney.

Rebuilding Widebody planes
Since the year 2019 -20, Air India’s business class and premium economy cabins have recorded an increase in revenue by 2.3 times. While, the revenue generation of the economy class has recorded an increase by 1.6 times. By taking into consideration the category-wise revenue generation, the company plans to increase the number of seats in business as well as premium economy cabins which is also known as front-cabins in its widebody planes. Once the upgrade is finished, the number of front-cabin seats available will be doubled compared to the present number of seats available. Also, the revenue will also increase from these planes. The airline plans to start rebuilding of widebody planes by the month of July.

Expansion plans of Direct Flights
Air India has repeatedly rejected increasing bilateral rights with countries such as Qatar and UAE. It believes that these countries’ airlines use their hubs to carry a significant share of traffic from India to countries in North America and Europe. Also, the current bilateral rights of India with Dubai and Doha hubs is more than sufficient fr the purpose of origin-destination (point-to-point) traffic.

In the near future, Air India intends to increase its shares in traffic by increasing direct flights to North America and European countries. The company understands that in order to achieve a big share of the international market, there is a need to strengthen Delhi and Mumbai hubs.

Wet Leasing planes
Wet Leasing planes refers to not only leasing aircraft but also its crew, insurance and maintenance unlike dry leasing which only allows renting aircraft. In the month of December 2024, the government of India allowed airlines to wet lease planes on new routes. It was started to satisfy the rising demand and to give a temporary solution to slow deliveries of new aircrafts. The CCO of Air India stated that the company is not involved in wet leasing.

The reason for not using wet leasing planes is due to its operational challenges associated with it, particularly occurring while creating a sustainable flight network. The wet leasing method is quite useful in times of sudden rise in demand. Air India’s purpose is not at present to satisfy this current surge in demand but to focus on long-term growth. The company has already put orders for new planes.

Sales Channels of Air India
Air India’s website or app contributes to 20 percent of its international ticket sales. While, the domestic sales channels contribute to 40 percent of sales and the remaining sales of Air India’s international ticket is carried through foreign sales channels. It is difficult to identify a strategy to increase sales through foreign sales channels as it changes market to market. Also, the company focuses on maximising returns and not on focusing on one particular sales channel and its revenue.

Impact of Rupee depreciation
The current rupee depreciation has significantly burdened the cost structure of Air India. The reason for that is the company’s many expenses are done in dollar-denomination except employee related expenditure.

Due to its presence in operating many international flights and also charging in foreign currencies give it a somewhat natural protection from currency fluctuation. Despite this, it is facing challenges in profitability and fares due to around half of the tickets being sold in Indian currency. Also, depreciation of currency not only affects fares prices but also demand. This challenge is faced by the entire Indian aviation industry. Air India is taking efforts to resolve this issue by increasing productivity and also implementing measures to ensure efficiency in operations.

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Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Automobile News, Autos, Business, Equities, Markets - January 13, 2025

JLR Leads Tata Motors’ Q3FY2025 Recovery, But Domestic Challenges Persist

JLR Leads Tata Motors’ Q3FY2025 Recovery, But Domestic Challenges Persist

Jaguar Land Rover Ltd (JLR), the global subsidiary of Tata Motors Ltd, has shown signs of recovery in Q3FY2025, driven by improved wholesales and a better product mix. However, challenges in Tata Motors’ domestic business and uncertainties in the global auto market may limit the upside.

JLR: A Positive Turnaround in Q3FY2025
After a subdued performance in the first half of FY2025, JLR’s wholesales grew by 3% year-on-year (YoY) in Q3FY2025, reflecting an improvement in demand across key developed markets. While demand for premium and luxury vehicles remained tepid in retail channels, higher wholesale dispatches and an improved average selling price (ASP) indicate better revenue and profitability prospects.

Regionally, JLR’s performance was bolstered by strong demand in the US and parts of Western Europe. However, challenges persisted in the UK and China, where demand moderated. An increase in the contribution of JLR’s power brands to 70% of total sales, up from 64% six quarters ago, highlights a favorable shift towards premium models, which bodes well for margins.

Supply-side constraints that impacted JLR in earlier quarters have eased, as evidenced by reduced inventory levels and higher dispatches. Analysts anticipate a sequential improvement in JLR’s EBITDA margin for Q3FY2025, though it may still lag YoY levels. Importantly, the company remains on track to achieve £1 billion in free cash flows (FCF) for FY2025, supported by a net-cash balance sheet—a significant positive for Tata Motors’ consolidated financials.

The premium product mix in JLR’s sales continues to boost profitability prospects. As JLR’s power brands increasingly dominate the sales portfolio, the company benefits from higher margins. This trend, along with easing supply constraints, has led to improved inventory management. Analysts believe that these positive developments mark a crucial step in rebuilding investor confidence.

Domestic Business: A Mixed Bag
While JLR’s revival brings optimism, Tata Motors’ domestic operations face headwinds. The commercial vehicle (CV) segment has seen flat volume growth, reflecting a challenging demand environment. Meanwhile, Tata Motors’ passenger vehicle (PV) business has been losing market share, with electric vehicle (EV) sales failing to meet expectations amidst rising competition.

The domestic PV market is undergoing a significant transformation, with multiple new entrants and rising competition in the EV space. Tata Motors, despite its early lead in EVs, faces challenges in maintaining its growth momentum. Increased competition from both established players and startups is pressuring market share. Additionally, the company’s focus on expanding EV offerings has yet to deliver the desired results in terms of volume and profitability.

In the CV segment, economic factors such as rising interest rates and uneven demand recovery are limiting growth. Infrastructure development and government spending on large projects, which typically boost CV sales, have been slower than anticipated. Consequently, Tata Motors’ CV business has struggled to deliver strong results this quarter.

Consolidated Outlook: Recovery with Caution
Improved operating leverage in JLR and the standalone entity is expected to drive a recovery in Tata Motors’ Q3FY2025 consolidated profit margins and net profit compared to Q2FY2025. However, the path to sustainable growth will hinge on several factors:

Global Luxury Auto Market: The global premium car market’s recovery remains uneven, with concerns around whether discounts will be needed to stimulate demand in 2025. Prolonged economic uncertainties and geopolitical risks could further impact consumer sentiment in key markets like Europe and the US.

EV Ramp-Up: Both JLR and Tata Motors’ domestic EV businesses need to accelerate growth to capture emerging opportunities. JLR’s transition to electric models will require significant investments and strategic partnerships to ensure competitiveness in the evolving global market.

Macroeconomic Uncertainty: Changes in US policies on duties, taxes, and oil prices could impact demand dynamics in key markets. Rising energy costs and inflationary pressures could further complicate the operating environment for global automakers.

While JLR’s progress in Q3FY2025 is encouraging, sustaining this momentum will require consistent execution and strategic clarity. Tata Motors must address its domestic challenges while leveraging JLR’s global recovery to build a stronger consolidated performance. The coming quarters will be critical in determining whether Tata Motors can achieve sustainable growth and enhance shareholder value.

Tata Motors’ ability to navigate these challenges will define its performance in 2025 and beyond. Its strategic focus on premium vehicles, EV transition, and operational efficiency will be key to overcoming headwinds and delivering long-term growth. Investors and stakeholders will closely monitor the company’s efforts to address domestic market weaknesses while capitalizing on JLR’s improving trajectory in global markets.

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Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

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AstraZeneca Pharma India Q1 2026: Strong Growth and Resilience
Business, Equities, Health, Market News, Markets - January 13, 2025

Indian Pharma's 2025 Budget Wishlist: Growth, Innovation, and Challenges

Indian Pharma’s 2025 Budget Wishlist: Growth, Innovation, and Challenges

From making a few reasonably priced generic medications, the Indian pharmaceutical sector has advanced to become the global center for the production of pharmaceuticals and vaccines. In addition to meeting 25% of the UK’s pharmaceutical needs, India distributes pharmaceutical items to more than 200 countries, 50% of Africa, and 40% of the US generic market. With over 60,000 products in 60 therapeutic categories and more than 500 APIs, India is the world’s third-largest manufacturer of pharmaceuticals by volume and fifteenth by value. With a focus on biopharmaceuticals and biosimilars, Indian businesses have not only increased access to healthcare around the world but have also established themselves as reliable partners in enhancing healthcare systems around the world.

Numerous measures have been taken by the Indian government to facilitate and promote innovation and development in the Pharma sector, especially in cell and gene therapies such as a boost in funding and infrastructure investments. For instance, the Pharma MedTech Sector’s Scheme for Promotion of Research and Innovation (PRIP) was introduced to strengthen research and innovation capabilities. This program has sanctioned a total spending of INR5,000 crore (about US$604.5 million) between 2023 and 2028 and supports innovative research in pharmaceutical as well as the medical technology field. These findings are likely to make the environment of India regarding research vibrant as well as more cooperative.

Despite these encouraging growth dynamics and government support, however, many challenges have to be met before the potential of this industry can be seized in the future. The available R&D funding is less than satisfactory, and state-of-the-art testing facilities, intellectual property protection, and insufficient incentives for investment in industry-wide ventures are required. So, Pharma Inc.’s expectations comprised largely of increased public healthcare funding and incentives for pharmaceutical research and development, with some tax exemptions towards more life-saving medications in this 2025 budget.

Reduction in Custom Duties for life-saving drugs
Executives in the healthcare sector stated that increasing the number of life-saving medications free from import duties and GST will help make them more affordable for patients. They want the benefit to extend to all cancer drugs. The government was pushed by hospital owners to lower customs taxes on necessary medical supplies and equipment. Depending on the kind of medication and whether it is imported or not, India has different tax rates for necessary medications.

Modification in Section 115BAB
Anil Matai, director-general of the Organization of Pharmaceutical Producers of India (OPPI), stated that expanding the application of Section 115BAB of the Income Tax Act, 1961 to businesses exclusively involved in pharmaceutical research and development, acknowledging the high-risk, long-gestation nature of R&D, and offering a 200% deduction rate on R&D expenses.
According to Section 115BAB, a corporation that manufactures or produces any kind of item or a thing that aids in conducting research to or distributing such items is eligible for a 15% concessional tax rate. According to Deloitte, businesses engaged solely in research-related activities will be eligible for a concessional tax rate under section 115BAB, rather than being limited to research pertaining to the company’s manufactured or produced goods, given that the government wants to encourage research, innovation, and development in India.

Removal of Section 194R
The Income Tax Act’s Section 194R permits businesses to deduct taxes from any type of gift or incentive and remit it to the government. In the pharmaceutical industry, it stands for drug samples that businesses give to physicians and medical facilities. The additional administrative load placed on businesses by having to keep track of smaller transactions is one of the main causes of the demand. The process is made more complicated by the requirement that the business deducts the tax imposed under Section 194R on behalf of the beneficiary, such as a hospital.
Thus, the removal of Section 194R which is marketing samples, would facilitate streamlining business operations, according to Sudarshan Jain, Secretary of, the Indian Pharmaceutical Alliance (IPA).

Other additional expectations
Furthermore, efficiency and simplicity in doing business will be achieved when Advance Pricing Agreement (APA) processes, such as fixing deadlines for quick settlement of the case, as well as making sure renewals are done within time, are free of procedural redundancies. Going ahead, the necessity of expanding public funding for health programs and incorporating the Ayushman Bharat scheme’s missing middle class is of crucial importance.
To promote innovation and investment, the industry group has also urged for removing turnover conditions for safe harbor laws for R&D and requiring deadlines for appeals, especially those handled by the Income Tax Appellate Authorities (TAA).
Further, it would be encouraging if the Union Budget restored 200 percent weighted deductions for R&D expenditures, expanded the patent box regime to include income from patents abroad, and allocated at least 10% of the National Research Fund to life sciences, according to Sudarshan Jain, Secretary, IPA.

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Copper holds near five months low as weak demand outlook dominates

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Affordable housing to take a hit in the upcoming Budget
Business, Equities, Market News, Markets, Real Estate, Real Estate News - January 13, 2025

Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

The Indian Real Estate Industry is seeking stamp duty cuts, revised home loan limits and improved affordable housing norms in the upcoming Union Budget 2025-2026. The realtors are seeking these changes through Pradhan Mantri Awas Yojana (PMAY), eco-friendly policies, single-window clearance, and more.

Some of the industry leaders and consultancy firms in India such as Raheja, Gaurs, Kanodia, Anarock, Justo, Reach, Urban Space and Eros have put forth their expectations for changes to real estate sector norms in the upcoming budget.

Affordable housing
President of CREDAI-NCR and Chairman and Managing Director of Gaurs Group, Manoj Gaur stated that one of the crucial demands of the real estate sector is adjustment of stamp duty. The reason for this is that the stamp duty rate has increased significantly in recent years. It is adversely affecting home buyers giving them financial pressures. He also emphasised on considering changing the current tax deduction limit of Rs. 1.5 lakh under Sector 80(c) to Rs. 5 lakh as it will help in easing home ownership.

He recommends changing the affordable housing criteria of price limit of Rs. 45 lakh to carpet area-wise criteria. In this, the focus should be on the carpet area of 60 square metres in metro areas and 90 square metres in non-metro areas. He also advocates reintroduction of the 100 percent tax holiday for affordable housing projects before 31st March 2022. This will promote both affordable housing and also India’s mission of ‘Housing for all’.

Commercial Real-estate Sector
The vice-president (Sales) of Raheja, Mohit Kalia stated that the needs for reforms in the commercial real-estate sector. The government’s actions to encourage entrepreneurship promotes the start and growth of business. It not only helps in boosting economic growth and creation of job opportunities but also aids in thriving the business of commerical real-estate sector. Along with this, the sector requires policies that will support in sustaining the growth and success of the sector. He also states that the adjustment in interest rates in a way that makes advances affordable will help in increasing demand in the sector. Also, the implementation of the single-window clearance system can make approval processes faster and easier. These steps will help in strengthening the overall real estate ecosystem.

Tax Relief on Construction Materials
The Kanodia of Delhi-NCR advocates tax relief and GST reduction on construction materials in order to achieve lower project costs and also encourage developers to initiate new ventures with better efficiency.

The Kanodia Group’s founder Gautam Kanodia stated that the upcoming Budget 2026 has a strong prospect to strengthen the real estate industry and also to play a more crucial role in the development of the country’s economic framework.

Revision of Home Loan Limits
The founder and Chairman of Reach, Harinder Singh Hora advocated raising the deduction limit in home loans to Rs 5 lakh from the current Rs. 2 lakh in order to encourage investment opportunities and to attract more investors.

Changes in PMAY
The chairman of Anarock Group, Anuj Puri recommends reintroduction of Credit-linked subsidy Scheme (CLSS) under the PMAY scheme for economically-weaker section (EWS) households, which has ended in the year 2022. This would give financial incentives to first-time homebuyers to purchase affordable homes by providing subsidies on loans for construction of new houses or essential addition to existing properties.

As per the eligibility criterias of PMAY for rural regions provide subsidies to convert ‘kaccha’ into ‘pucca’ homes. The real estate industry players believe that there is a need to update the definition of affordable housing needs, particularly in high-cost cities such as Mumbai. They also advocate raising of current price caps reflecting the higher cost of living and property prices prevailing in these areas.

Given data from Anarock, the sales share of affordable housing decreased to 18 percent in 2024 compared to 38 percent in 2019. This significant decline indicates the pressing need for government intervention. He further stated that there is a need to be more focused on affordable housing and targeted benefits, which was not given much attention for the past two years.

The reason for slowdown in the Indian real estate sector in the year 2024 is the general elections and state elections conducted in the year. The top seven cities in India observed a fall in housing sales by 4 percent which accounts to around 446,000. While, the new launches of properties declined by 7 percent which accounts to around 413,000 units. Despite this, implementation of appropriate steps taken for affordable housing in the year 2025 could lead to revival of growth and also promote the residential segment to regain the high sales and launches achieved in the year 2023.

Rental housing and infrastructure growth
In the year 2024, institutional funding in real estate registered a record of 6.5 billion dollars. It indicates strong investor confidence. The introduction of increasing liquidity measures will help to ensure that real estate projects are completed on time. This is crucial to maintain the growth momentum in the sector. The Director of Eros states that while entering in the year 2025, the policies pertaining to expansion of rental housing and infrastructural growth should be taken for driving urbanisation.

The founder and director of real estate fintech firm Justo, Pushpamitra Das advocates the adjustments in GST on under-construction residential and commercial properties, tax benefits for REITs, extension of SEZ benefits. He also stated that India’s real estate sector plays a significant role in driving economic growth by boosting GDP and employment levels.

Home decor Industry
The co-founder of Urban space, Radhika Koolwal stated that the home decor industry is positive about the measures undertaken to boost growth and innovation. The industry expects the policies undertaken will focus on encouraging domestic manufacturing such as subsidies on raw materials and machinery, tax benefits for MSMEs and startups, reduction in GST rates on home furnishings and decor items in order to achieve more accessibility to quality products to the middle class.

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Mumbai Property Market Soars to New Record in 2024
Business, Equities, Market News, Markets - January 10, 2025

Mumbai Property Market Soars to New Record in 2024

Mumbai Property Market Soars to New Record in 2024

Mumbai has been considered as India’s largest and most expensive market for a long time. In 2024, it again proved this statement right by achieving its best-ever annual performance in terms of deal registrations as well as stamp duty collection. This strong demand growth is boosted by the stable economic conditions and also persistent confidence among buyers.

In the year 2024, Mumbai hit a record of more than 1,41,000 registrations. It made the year 2024 as the best year for property sales in both primary and secondary markets. It surpassed the previous year’s record by 11 percent.

According to the data of the Inspector General of Registration (IGR) and Controller of Stamps, Maharashtra, the total stamp duty collection increased by 12 percent which accounts to Rs. 12,138 crore.

Significance of Mumbai’s Property market
Mumbai’s real estate market continues to exhibit strong resilience and adaptability with the changing times. The consistent rise in registrations and increasing revenue indicate strong demand. Its robust demand is particularly seen more for premium and spacious houses. These preferences indicate the homebuyers change in preference towards quality and value. The strong performance of Mumbai’s real estate market underlines it as a key driver of economic activity and also an interesting long-term investment opportunity.

The market recorded a consistent rise in property registration at higher value in Mumbai. In the month of December, the property registration for real estates priced at Rs 2 crore and above observed a surge of 23 percent compared to its record of 18 percent in the month of December 2023. The real estate priced under Rs. 50 lakh recorded a fall to 25 percent of share compared to previous share of 30 percent. It indicates a shift in homebuyers preferences towards higher-value real estate segments. A strong inclination is observed towards premium properties with a total purchase of 2,879 properties.

The preference for homes having an area of 1,000-2,000 sq ft. increased rapidly to 12 percent of shares compared to earlier shares accounts to only 8 percent. While, the shares for homes above 2,000 sq ft recorded stable growth of 2 percent. In contrast to this, homes till 500 sq ft recorded a sharp fall in registrations which accounts to 51 percent compared to the previous shares of 35 percent. This change in preference in real-estate area-wise signals an increase in preference for spacious homes.

The real estate developers used this strong sales opportunities to capitalise by launching new supply in the market. It resulted in the launch of 96,470 new units in 2024 making the highest volume launch since 2024. It observed a 4 percent year-on-year growth. While, the average residential prices surge by 5 percent year-on-year surpassing the year 2023. The continued demand for real estate kept the price growth and sales momentum steady.

In the month of December, around 12,363 property registrations contributed Rs. 1,131 crore of the revenue to the state government of Maharashtra.

Reasons for the best performance
The report of Knight Frank India on the India Real Estate- Office and Residential Market (July-December 2024) states that Mumbai is leading in terms of residential sales among all the metro cities.

Mumbai is considered as the financial hub of India with strong economic growth in finance, commerce and industry. It is supported by infrastructural projects such as the Mumbai coastal Road, Mumbai Trans Harbour Link (MTHL) and Metro Line 3.

The development in the urban landscape due to these infrastructural projects undertaken in Mumbai are acting as a significant key in the progress of the property market. The infrastructural projects help in increasing connectivity between the places. It has boosted the demand in real estate as more and more homebuyers are participating to take advantage of this developed connectivity. The strong government’s capex in these projects has supported increased real estate activities, influencing price dynamics and also in new real estate ventures.
The first half-yearly sales of 2024 was the highest half-yearly since 2012. The second half-yearly sales for the year 2024 recorded an increase in sales by 4 percent compared to the first half-yearly sales of 2024. The reasons for robust sales were festive seasons such as Navratri, Dussehra and Diwali. These festivals for years are reasons for the increase in purchases of real estate. Also, it was further boosted by new launches and attractive payment plans surged the sales activity.

Price dynamics in the 2024
Mumbai’s residential properties rates increased by 5 percent. It recorded the highest average price per square foot of Rs. 8,277. It is the highest among the 8 major cities in India. While, Central Mumbai and South Mumbai recorded the highest residential price surged of 8 percent and 7 percent, respectively.

The current property market in Mumbai is in a strong position to take advantage of this situation and keep on sustaining the growth path during the 2025 as well.

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TCS Q3FY25: Seasonal Challenges Persist, But Positive Outlook Inspires Confidence

TCS Q3FY25: Seasonal Challenges Persist, But Positive Outlook Inspires Confidence

The leading Indian IT company, Tata Consultancy Services (TCS), reported a 12% increase in its consolidated net profit for the December quarter, which came to Rs 12,380 crore on Thursday. This is almost in line with Dalal Street’s forecast of Rs 12,490 crore and represents an increase from the Rs 11,058 crore recorded in the same quarter last year. TCS CFO, Samir Seksaria stated that the company’s great execution, effective cost control, and strategic currency risk mitigation all helped to boost margins and solid free cash flows during the quarter, despite substantial cross-currency volatility. Additionally, long-term company growth should be well supported by focused expenditures in infrastructure and talent.

Details of TCS Q3 Results & Market commentary

Revenue
The IT behemoth TCS reported sales for the December quarter of Rs 63,973 crore in constant currency, up 5.6% from Rs 60,583 crore in the same period last year. Nevertheless, the December quarter’s income was less than the Rs 64,750 crore Dalal Street had predicted. The company’s operating margin for the December quarter was 24.5%, which represented a 40 basis point sequential gain but a 50 basis point year-over-year fall. TCS, meanwhile, stated that at the end of the December quarter, its net margin was 19.4%.
Because of the local currency’s depreciation against the dollar throughout the quarter, analysts had projected an average sequential decline of 0.4% in dollar revenue and a 0.5% increase in rupee revenue. The largest software exporter in the nation, on the other hand, saw a 0.5% quarterly decline in revenue to Rs. 63,973 crore and a 1.7% decline to $7,539 million. The impact of furloughs and seasonal decrease in demand is more pronounced when the top line declines more than anticipated.

Dividend
TCS has announced a total payment of Rs. 76 per share which comprises of a special dividend of Rs. 66 per share and an interim dividend of Rs. 10 per share. This dividend payout would be done on 3rd February, 2025 and the record date is set to be 17th of January, 2025. The stock might receive some boost from this. The company was trading at a trailing price-earnings (P/E) ratio of 30 at Thursday’s closing price of Rs4,036.7 on the BSE, compared to a five-year average P/E of about 33.

Deals
According to TCS’s filing with the exchange, the company’s Total Contract Value (TCV) increased significantly during the December quarter, laying a solid basis for future growth. TCV was $10.2 billion in the December quarter, and the book-to-bill ratio was 1.4. The key drivers of such robust TCV figures include 1.1% hike in consumer business group, 3.4% increase in energy and utilities segment and whooping growth of 40.9% in regional markets.
After two quarters, it surpassed the $10 billion threshold, suggesting a slow but steady rebound in clients’ discretionary spending. Due to geopolitical and economic uncertainty, clients have been focusing more on maintenance projects and less on transformational deals during the last few quarters. In the upcoming quarters, clients are anticipated to place more emphasis on discretionary spending due to the incoming administration in the US, which is the biggest market for Indian IT exports. The consumer business and banking, financial services, and insurance (BFSI) verticals were the main drivers of the TCV progress in the December quarter.

Hiring and attribution
There were 607,354 workers at TCS as of December 31. In IT services, the company’s last twelve months (LTM) attrition rate was 13.0%. According to TCS Chief Human Resources Officer Milind Lakkad, the business promoted more than 25,000 employees in the December quarter, bringing the total number of promotions this fiscal year to over 110,000. Further he added that the company is indulging in investments in the general well-being and upskilling of our staff. This year’s campus hiring is proceeding as planned, and plans are underway to onboard more university hires the next year.
However, the company lost 5,370 workers on a net basis in a row, bringing its total workforce down to 6,07,354. From 12.3% in the prior quarter, the attrition rate gradually increased in the third quarter. The company claimed a renewed pace in new order wins, which can be linked to the growing influence of global capability centers (GCCs) established in India by worldwide clients.

Conclusion
According to analysts, the company’s Q3 FY2 earnings reports are the slowest since it began releasing quarterly figures in constant currency terms in FY 2013, more than ten years ago. It used to report in dollar terms on a quarterly basis.

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