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Time of India
a day ago
- Business
- Time of India
ET MSME Awards 2025: How AI will rewrite the rules for India's small businesses
Live Events Picture this: an auto parts manufacturing unit in Gurugram that's stuck in a familiar trap, the kind where orders pile up while bank managers demand endless paperwork for working capital comes a breakthrough that changes everything: an artificial intelligence (AI)-enabled credit platform that approves the entrepreneur's loan within just a few hours, based on their point-of-sale transaction is no hypothetical situation. Across India, banks, both private and public, are deploying algorithms that nearly double as relationship managers. AI is dismantling a significant barrier that has held back the country's 66 million-plus micro, small, and medium enterprises (MSMEs) for transformation is most dramatic in credit access. AI-powered loan disbursals are based on decisions taken within minutes, with automated systems handling credit analysis and document checks, slashing processing times by days. Fintech platforms leverage point-of-sale (PoS) card swipe data to provide credit to MSMEs, offering businesses short-term unsecured loans monthly based on their PoS machine transactions for 18-36 months, going up to lakhs of rupees. What once required months of documentation now happens automatically as businesses conduct their daily impact is staggering. According to a report by CRIF High Mark, credit to India's MSME sector crossed ₹40 lakh crore as of March 2025, reflecting a 20% year-on-year AI's reach extends far beyond financing . In June 2024, Meta and NASSCOM launched the ' AI Enablement for MSMEs ' initiative, which validated what industry experts have long known: India's small business sector represents one of the world's largest untapped markets for AI factory floors across the country, small manufacturers are gradually discovering that intelligent automation doesn't require massive investments. For instance, textile units in Coimbatore can install computer vision systems for quality control at a fraction of what manual inspections cost. Such systems can accurately spot fabric defects, catching flaws that human eyes may miss during long shifts. Predictive analytics too can be deployed to optimise raw materials and prevent supply chain units that have adopted such technologies report shorter production cycles, better quality control, reduced wastage, and more agility in responding to market shifts. These gains are not only technological upgrades; they are redefining competitiveness for Indian industry in global Chennai's bustling industrial corridor, where small machine shops can use AI-powered sensors to predict when ageing Computer Numerical Control (CNC) machines need maintenance. These systems analyse vibration patterns, temperature fluctuations, and production data to schedule repairs during planned downtimes rather than costly emergency logistics revolution is equally transformative. Spice traders, for instance, can use AI route optimisation to coordinate deliveries across states. What once required hours of manual planning can now happen automatically, taking into consideration traffic patterns, fuel costs, and delivery priorities. This translates to shipping more orders with the same fleet. AI models can also predict which logistics operators will deliver the fastest, with the least risk of return to in the food processing sector too can use AI to their advantage. Pickle manufacturing units may use machine learning to optimise flavour profiles based on regional preferences, sales data, seasonal variations, and customer feedback to suggest recipe modifications. The outcome could be increased sales in targeted traditional service businesses are finding AI applications. A small accounting firm in Pune , for example, may use natural language processing to automatically categorise expenses and flag potential tax deductions in client documents. What previously required junior accountants to manually review thousands of receipts now happens common thread across these scenarios isn't cutting-edge technology, but practical problem-solving. Businesses aren't considering AI for its own sake; they're considering it to solve specific operational challenges that have constrained growth for years. MSMEs need tools that solve real concerns such as credit access, cash flow, quality control, and operational efficiency. The best AI implementations are almost invisible: they just make everything work Centre too is taking notice. Recent policy initiatives recognise AI's potential to level the playing field between large corporations and small businesses. Unlike previous technology waves that often favoured enterprises with substantial IT budgets, AI tools are increasingly accessible through cloud platforms and subscription the math: a chemical manufacturer can implement swift, quality inspection AI for less than ₹30,000 monthly. A logistics company can access route optimisation for the cost of fuel savings in the first MSMEs are discovering with swift loan approvals, AI isn't about replacing human judgement, but about augmenting capabilities. Businesses still rely on relationships, craftsmanship, and local market knowledge. Now, those strengths are amplified by algorithms that handle routine decisions faster and more consistently than humans ever that said, the journey isn't without obstacles. Indian MSMEs still lag global benchmarks in AI adoption, but experts say affordable solutions can boost productivity by 30%. This gap represents both a challenge and an enormous opportunity. Countries like China and South Korea have seen small businesses achieve remarkable efficiency gains through AI adoption, which suggests that India's MSMEs are sitting on untapped real story of AI in India's MSME sector will be technological empowerment on the ground. After decades of being technology takers, small businesses are gradually becoming intelligent users of sophisticated tools, competing not just on cost and relationships, but on operational excellence powered by emerging ET MSME Awards 2025 , which has IDBI Bank as banking and lending partner, is open for nominations. Register before August 31, 2025.
Yahoo
12-05-2025
- Business
- Yahoo
Lee Enterprises Inc (LEE) Q2 2025 Earnings Call Highlights: Navigating Cyber Challenges and ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lee Enterprises Inc (NASDAQ:LEE) has shown resilience and focus in recovering from a significant cyber event that disrupted operations. The company is committed to its digital transformation strategy, aiming for $450 million in digital revenue by 2028. Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing industry competitors. LEE launched a suite of innovative AI products to support local businesses, which is expected to accelerate digital revenue growth. The company has executed $40 million in annualized cost reductions, improving margins and lowering costs. The cyber incident significantly impacted quarterly financial performance, including operating revenue and advertising trends. Net loss for the quarter was $12 million, with minimal free cash flow. The cyber event hampered the ability to bill and collect from customers, affecting working capital. Despite recovery efforts, there are lingering impacts on the balance sheet, with increased accounts receivable and payable. First-half results lagged expectations, and the company is working to improve digital revenue growth in the second half of the fiscal year. Warning! GuruFocus has detected 7 Warning Signs with LEE. Q: Net loss totaled $12 million in the quarter and free cash flow was minimal. Does that include the interest deferral? When do we expect to be free cash flow positive? A: The net loss includes the expense associated with our debt, even though the payments were waived. We expect to be free cash flow positive in the second half of fiscal year 2025 due to significant changes in our cost structure and the digital revenue outlook. - Tim Milledge, CFO Q: How did the cyber incident impact your financial performance and operations? A: The cyber incident significantly disrupted our operations, impacting advertising revenue trends and subscription revenue. Despite this, digital revenue grew 4% year-over-year, led by a 20% increase in digital subscription revenue. - Kevin Mowbray, CEO Q: Can you elaborate on your digital transformation and AI product offerings? A: We launched a suite of AI products in March to help local businesses thrive. Our AI Enablement product is designed to prepare businesses for AI transformation in advertising. We also introduced AISocial and Smart as additional tools. - Kevin Mowbray, CEO Q: What measures have you taken to manage costs and improve financial sustainability? A: We executed approximately $40 million in annualized cost reductions in the second quarter, focusing on driving margins and lowering costs, particularly in print. We also lowered anticipated capital and restructuring spending. - Tim Milledge, CFO Q: How is your balance sheet affected by the cyber incident, and what steps are you taking to improve it? A: The cyber incident impacted our ability to bill and collect from customers, affecting our balance sheet. We are working to improve working capital by reducing accounts receivable and payable. Additionally, we are monetizing non-core assets to improve liquidity. - Tim Milledge, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Lee Enterprises Inc (LEE) Q2 2025 Earnings Call Highlights: Navigating Cyber Challenges and ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lee Enterprises Inc (NASDAQ:LEE) has shown resilience and focus in recovering from a significant cyber event that disrupted operations. The company is committed to its digital transformation strategy, aiming for $450 million in digital revenue by 2028. Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing industry competitors. LEE launched a suite of innovative AI products to support local businesses, which is expected to accelerate digital revenue growth. The company has executed $40 million in annualized cost reductions, improving margins and lowering costs. The cyber incident significantly impacted quarterly financial performance, including operating revenue and advertising trends. Net loss for the quarter was $12 million, with minimal free cash flow. The cyber event hampered the ability to bill and collect from customers, affecting working capital. Despite recovery efforts, there are lingering impacts on the balance sheet, with increased accounts receivable and payable. First-half results lagged expectations, and the company is working to improve digital revenue growth in the second half of the fiscal year. Warning! GuruFocus has detected 7 Warning Signs with LEE. Q: Net loss totaled $12 million in the quarter and free cash flow was minimal. Does that include the interest deferral? When do we expect to be free cash flow positive? A: The net loss includes the expense associated with our debt, even though the payments were waived. We expect to be free cash flow positive in the second half of fiscal year 2025 due to significant changes in our cost structure and the digital revenue outlook. - Tim Milledge, CFO Q: How did the cyber incident impact your financial performance and operations? A: The cyber incident significantly disrupted our operations, impacting advertising revenue trends and subscription revenue. Despite this, digital revenue grew 4% year-over-year, led by a 20% increase in digital subscription revenue. - Kevin Mowbray, CEO Q: Can you elaborate on your digital transformation and AI product offerings? A: We launched a suite of AI products in March to help local businesses thrive. Our AI Enablement product is designed to prepare businesses for AI transformation in advertising. We also introduced AISocial and Smart as additional tools. - Kevin Mowbray, CEO Q: What measures have you taken to manage costs and improve financial sustainability? A: We executed approximately $40 million in annualized cost reductions in the second quarter, focusing on driving margins and lowering costs, particularly in print. We also lowered anticipated capital and restructuring spending. - Tim Milledge, CFO Q: How is your balance sheet affected by the cyber incident, and what steps are you taking to improve it? A: The cyber incident impacted our ability to bill and collect from customers, affecting our balance sheet. We are working to improve working capital by reducing accounts receivable and payable. Additionally, we are monetizing non-core assets to improve liquidity. - Tim Milledge, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
