Latest news with #569
Gulf Today
22-05-2025
- Business
- Gulf Today
Bayt Al Khair spent Dhs10,504,184 on humanitarian initiatives last month
Bayt Al Khair revealed that its total expenditure for April 2025 amounted to Dhs10,504,184, bringing the cumulative spending for the first four months of 2025 to Dhs85,954,842. Humanitarian support programmes topped the list, with expenditures totaling Dhs39,698,079 during the same period. These programmes aim to alleviate the hardships faced by individuals struggling with their livelihoods, addressing deficiencies beyond their financial capabilities. This expenditure is in addition to the monthly cash assistance projects targeting low-income Emirati families, which amounted to Dhs5,569,620 during the same period. The emergency assistance project falls under the "Fazaa" community solidarity programme, dedicated to relieving the burdens of modest families and those facing sudden crises or disabilities, enabling them to overcome their challenges and resume their normal lives. Through this initiative, "Bayt Al Khair" also provides humanitarian support to patients, both citizens and residents, via the "Treatment" project, which spent Dhs13,192,508 by the end of April. Additionally, the programme assists individuals burdened by debts they cannot repay through "Al Gharimin" project, which has expended Dhs3,118,087 so far.
Zawya
05-05-2025
- Business
- Zawya
New report warns of a looming sugar shortage in Kenya
The United States Department of Agriculture warns of a looming sugar shortage in Kenya blamed on shrinking farms and declining processing, opening a window for increased imports that will stabilise retail prices. The agency, through its Foreign Agriculture Service (FAS) division, says the country faces a 19.8 percent drop in sugar production to 650,000 metric tonnes in the 2025/2026 marketing year (MY), from 810,000 metric tonnes in the 2024/2025 marketing year. A marketing year is a period designated for reporting and analysis of production, marketing and disposition of a commodity. The agency, in its latest Sugar Annual report for Kenya dated April 18, 2025, forecasts that Kenya's sugar retail prices will increase as supply tightens due to closure of local mills for annual maintenance, but will stabilise when imports start coming in. In January this year, the local sugar market saw pressure on prices, as ex-factory prices increased by five percent, rising to Ksh6,569 ($50.92) per 50kg bag from Ksh6,233 ($48.31) in December 2024. Wholesale prices rose nine percent to Ksh7,177 ($55.63) per 50kg bag while retail prices climbed to an average of Ksh157 ($1.21) per kilogramme, from Ksh149 ($1.15) per kilogramme in December. Currently, cane price is set at Ksh 5,300 ($41.08) per metric tonne. According to the US agency, Kenya's area under cane harvesting is expected to drop to 150,000 hectares in the 2025/2026 marketing year, from 190,000 ha, due to a lower proportion of mature plantations, which resulted from overly aggressive harvesting in the 2024/25 year. Kenya's main cane-growing regions are in the Western and Lake Victoria Basin region, with about 93 percent of the cane produced by some 320,000 small-scale farmers, on less than one-hectare individual holdings, while large plantations that are owned by millers produce the remaining seven percent. According to the Kenya's Sugar Research Institute, cane yields range between 50 metric tonnes to 70 metric tonnes per hectare, due to regional variability, including weather conditions, crop husbandry practices, and cane varieties. But, in the 2024/2025 period, the average cane yield decreased substantially to 51 metric tonnes per hectare from 56 metric tonnes per hectare in the previous year, due to dry weather conditions that preceded harvesting in some of the cane growing regions. The agency says this year (2025/2025) millers would have to scramble for cane to utilise their installed capacity amidst increasing cane shortages. In 2024, Kenya's retail sugar prices averaged Ksh138 ($1.06) per kilogramme, down from Ksh197 ($1.52) in 2023, prompting the government to ban sugar imports from the Common Market for Eastern and Southern Africa (Comesa) and East African Community (EAC) trading blocs. Read: Kenya bans sugar imports from outside Comesa, EAC trade blocsNow sugar imports are expected to increase 37.93 percent to 600,000 metric tonnes in the current marketing year (2025/2026), from 435,000 metric tonnes in the 2024/25 period to offset the supply deficit.'Sugar consumption is anticipated to increase 1.6 percent to 1.25 million, due to rise use in households and in the hospitality sector, driven by higher disposable incomes, and the growth in the hospitality sector,' the report says.'Sugar imports are also expected to surge by 38 percent, to offset the anticipated local supply deficit. Imports are expected to come from the Comesa and EAC countries because of tariff advantages.'Duty-free imports from the Comesa countries are however subject to a limit of 350,000 metric tonnes per year, due to a safeguard that has been granted to Kenya. The safeguard, which has been in force since 2002, was extended by two years in November 2023 and expected to expire in November this year. Sugar imports from non-Comesa and EAC countries face a 100 percent tariff, unless a specific waiver is granted by the government of Kenya. In September 2024, Kenya imposed a ban on sugar imports from outside Comesa and EAC, citing an increase in local production, with the country expected to produce more than 800,000 metric tonnes in the year. The 2023 had been an unusual year, beginning with a severe drought that led to reduced sugar output, necessitating significant imports to bridge the supply gap. The average annual consumption of table sugar in Kenya is about 950,000 metric tonnes, with the shortfall covered by imports from Comesa and EAC under existing trade protocols. Under the EAC revised four band Common External Tariff structure that came into force on July 1, 2022, sugar is among items considered to be 'sensitive' and which attract higher duty of above 35 percent to protect local industries from competition. Kenya's cane marketing is currently undertaken through 17 operational mills, four of which are government-owned, with total installed capacity of about 1.7 million tonnes. State-owned mills' market share, estimated at eight percent, has been dwindling due to technological and operational inefficiencies, including obsolete milling technology, mismanagement, high debt portfolios, and the collapse of cane development programmes. Private millers have been expanding their market share by investing in modern cane processing equipment and prompt pay to farmers. Some of the private millers have also invested in cane development programmes that include input supply and extension services to their contracted farmers. Average sugar extraction rates are also higher in private mills at 10 percent, compared to 5.6 percent in government-owned mills. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Yahoo
31-01-2025
- Business
- Yahoo
Motilal Oswal Financial Services Ltd (BOM:532892) Q3 2025 Earnings Call Highlights: Robust ...
Operating Revenue: INR1,345 crores, up by 43% year on year. Operating Profit After Taxes: INR525 crores, up by 38% year on year. Assets Under Advice: Over INR6 lakh crore, up by 62% year on year. Annual Recurring Revenue: 56% of group revenues for the third quarter. Fee-Based Revenue Contribution: Increased from 30% to 41% year on year. Net Worth: INR11,569 crores, up by 40% year on year. Annualized Return on Equity: 36%. Interim Dividend: INR5 per share. Wealth Management Assets Under Advice: INR308,000 crores, up by 67% year on year. Wealth Management Revenue: INR570 crores, up by 30% year on year. Wealth Management Profit After Tax: INR190 crores, up by 16% year on year. Retail Cash Business Broking Volumes ADTO: INR3,230 crores, up by 19% year on year. Distribution AUM: INR32,000 crores, up by 38% year on year. Distribution Revenues: INR104 crores, up by 90% year on year. Net Interest Income Growth: Nearly 40% year on year. Asset Management AUM: Over INR130,000 crores, up by over 100% year on year. Private Wealth AUM: INR150,000 crores, up by 34% year on year. Private Wealth Revenue: INR278 crores, up by 63% year on year. Private Wealth Profit: INR97 crores, up by 57% year on year. Capital Market Revenue: INR151 crores, up by 70% year on year. Housing Finance AUM: INR4,343 crores, up by 15% year on year. Housing Finance NII: INR88 crores, up by 10% year on year. Treasury Investments: INR8,464 crores, up by 44% year on year. Warning! GuruFocus has detected 3 Warning Signs with BOM:532892. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motilal Oswal Financial Services Ltd (BOM:532892) achieved a significant milestone by servicing over 10 million customers, indicating strong market presence. The company's operating revenue for Q3 FY25 increased by 43% year-on-year to INR1,345 crores, showcasing robust growth. Assets under advice crossed the INR6 lakh crore mark, up by 62% year-on-year, reflecting strong asset management performance. The Wealth Management business saw a 67% year-on-year growth in total assets under advice, reaching INR308,000 crores. The Asset Management business reported a 362% year-on-year increase in gross flows, demonstrating strong momentum and distribution network expansion. The company experienced a decline in market share for cash ADTO and F&O premium due to market corrections and regulatory changes. The lending book in Wealth Management and Private Wealth Management showed a marginal dip, linked to market volatility. The Private Wealth Management business saw a dip in overall assets due to mark-to-market adjustments, despite positive net flows. The broking industry faces challenges from increased compliance costs and norms, potentially impacting smaller players. The Housing Finance business reported a 15% year-on-year growth in AUM, which may be considered modest compared to other segments. Q: This quarter, there was a shift towards more direct revenue in Wealth Management, and a decline in market share for cash ADTO and F&O premium. Can you explain this shift and any changes in F&O pricing due to regulation? Also, why has distribution income increased in Private Wealth Management without a corresponding AUM increase? A: Ajay Menon, Whole-Time Director, explained that the shift in market share is due to market trends and regulatory changes in F&O lot sizes, which affected pricing. The decline in AUM is attributed to market corrections, as explained by Shalibhadra Shah, CFO, while distribution income increased due to transactional products not included in AUM. Q: In Wealth Management and Housing Finance, the lending book has decreased. Is this due to market volatility, and what are the sustainable margin levels? Also, why are credit costs negative in Housing Finance? A: Shalibhadra Shah, CFO, noted a marginal dip in the lending book due to market corrections, but NIIs increased due to improved spreads. Negative credit costs resulted from recoveries of previously written-off assets, with strong asset quality maintaining low provision costs. Q: Can you provide a breakdown of AUM in the Private Wealth business? A: Shalibhadra Shah, CFO, detailed that ARR assets are INR32,000 crores, with transaction-bearing assets at INR116,000 crores, including INR46,000 crores in custody assets. Q: How does customer vintage affect revenue in broking and wealth management? Does client revenue increase with age? A: Shalibhadra Shah, CFO, confirmed that revenue increases with customer vintage due to improved cross-sell ratios, although exact vintage numbers are not disclosed. Q: How have market volatility and scheme performance affected net flows and SIP registrations in Asset Management? A: Shalibhadra Shah, CFO, reported strong net flows and SIP registrations, with January being a particularly strong month. The company is expanding distribution channels and increasing sales teams to maintain growth. Q: What is the strategy for launching new NFOs in the AMC business, especially during market weakness? A: The company continues to launch new funds, with a focus on thematic and passive strategies. Despite market weakness, the strategy of launching one NFO per month remains unchanged. Q: What is the focus segment for Private Wealth, and how much of AMC AUM is distributed within the group? A: Shalibhadra Shah, CFO, stated that 15% of AMC AUM is distributed within the group. Ashish Shanker, CEO of Private Wealth Management, mentioned that the focus is on families with a financial net worth of INR25 crores, onboarding with INR3 crores plus. Q: How is the company addressing market share decline in brokerage, and what is the long-term strategy? A: The company focuses on quality clients and advisory services, with a strategy to grow market share through digital channels and distribution alignment, while avoiding discount brokerage models. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
