FMCG companies are set to experience a contraction in gross margins and modest-to-flat operating profits in the Dec quarter due to inflation, higher input costs, and pricing increases. Although there's a low single-digit revenue rise, rural markets are performing better amid urban consumption decline driven by high food inflation.
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One97 Communications, the parent company of Paytm, reported a consolidated loss of Rs 208.5 crore for the December 2024 quarter, an improvement from last year's Rs 221.7 crore loss. Revenue from operations declined by 35.8 per cent year-on-year to Rs 1,827.8 crore. Paytm is exploring international expansion with new subsidiaries in the UAE, Saudi Arabia, and Singapore.
Alt, the parent company of Property Share, aims to raise Rs 2,800 crore this year. Key initiatives include SM REITs, alternative investments, and UK warehousing. They plan multiple asset listings and new investment ventures, targeting significant growth in their asset management portfolio.
As geopolitical tensions evolve into new forms, 40 per cent of board members and C-suite executives are are now identifying economic conditions as the most significant risk factor for their organisations over the next two to three years, according to a report by Protiviti.
The Reserve Bank of India (RBI) has updated the fee structure for transactions at ATMs and Cash Recycler Machines, increasing the charges by Rs 2. Effective from May 1, 2025, customers will have a limit of five free transactions at their own bank's ATMs and additional limited free transactions at other bank ATMs based on location.
Electric vehicle maker OPG Mobility, formerly Okaya EV, plans to raise around Rs 400 crore in the next 18-24 months to expand its product portfolio and network. The company is set to launch two electric scooters, one electric motorcycle, and new three-wheeler passenger products this year, while also increasing its sales and service network across India.
India is set to welcome over 120 new mid-market global capability centres (GCCs) by 2026, driven by medium-sized companies leveraging the country’s digital expertise. Over 800 mid-market GCCs currently employ 220,000 people, and the U.S. and Europe dominate the space. Emerging cities are attracting new GCCs, which are vital for sustainable growth and technological advancement.
Equity market movement this week is set to be influenced by macroeconomic data announcements, auto sales data, and foreign investor trading activity. International economic indicators like manufacturing PMI data from China and the US, alongside US jobless claims, will play a crucial role. The weakening rupee and upcoming Q3 corporate earnings will also be closely tracked by investors.
IndianOil chairman Arvinder Singh Sahney stated that recent US sanctions on Russian oil exports will not impact India's energy security. India diversifies its crude procurement from multiple sources such as the Gulf, Africa, and the Americas. Additionally, new suppliers like Brazil and Guyana are emerging, ensuring supply stability. IndianOil posted a 64% drop in net profit in the recent quarter.
Gas consumption in India grew by 11% annually in 2024, causing a rise in LNG imports to meet increasing demand. Sectors such as industry, oil refineries, residential, commercial, and transport saw significant growth. Heatwaves also increased gas use for power generation. This aligns with India's low-carbon economy goals but raises energy security concerns due to declining domestic production.
The Indian rupee hit a record low against the dollar, closing at 84.85. Sanjay Malhotra's appointment as RBI governor sparked speculation of a dovish policy shift, with analysts predicting a rate cut as early as February. This expectation, coupled with India's weak economic outlook, could further depreciate the rupee to 86 by March 2025.