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Reuters
6 days ago
- Business
- Reuters
India's JK Lakshmi Cement posts quarterly profit drop on weaker prices
May 27 (Reuters) - India's JK Lakshmi Cement ( opens new tab reported a lower fourth-quarter profit on Tuesday, as rising costs and softer prices overshadowed volume growth in a seasonally strong period. Standalone net profit after tax fell 3% to 1.38 billion rupees ($16 million) during the January-March quarter. Revenue from operations rose 5.5%, while costs increased 6%. For further earnings highlights, click here. The weather in India in the first three months of the year is usually favourable for construction and cement mills typically cash in on this demand by boosting their volumes. Prices also began to recover in the past few months, reversing from declines logged for the bulk of last year. Still, the average price for the quarter was 2% lower on-year, data from brokerage Ambit Capital showed. Rival Shree Cement ( opens new tab marginally missed fourth-quarter profit view as higher costs bit into record volumes, while cost controls helped Dalmia Bharat ( opens new tab offset a hit from soft prices and lower volumes. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 85.3750 Indian rupees
Time of India
23-05-2025
- Business
- Time of India
Waiver of AGR dues to help Vodafone Idea stay afloat in telecom sector: Ambit Capital
NEW DELHI: A potential Central government decision to waive interest on unpaid adjusted gross revenue (AGR) dues, penalty and interest on penalty would enable Vodafone Idea (Vi) to raise bank debt, enabling India's third-largest telecom carrier to carry out capital expenditure (capex) and hold on to its nearly 200 million subscribers, said Ambit Capital . 'The government has consistently maintained its intent to maintain a 3+1 structure in the telecom industry. With the Supreme Court now providing clarity on potential relief, the government has no choice but to act,' the brokerage said in a research note Friday, which ETTelecom has reviewed. 'Waiver of interest on unpaid AGR dues, penalty and interest on penalty would help the company raise bank debt, giving VI an opportunity to expand its network, carry out capex and hold on to its ~200 million users,' it said. According to Ambit, with the government unwilling to increase its stake in the telco beyond 49% and promoters unable to commit additional capital, the conversion of Vi's dues into equity is an 'unviable alternative'. It said deferring dues would 'merely postpone the issue' without resolving it. Should the government choose this route, Vi may struggle to secure bank loans essential for funding its growth capex. ET, in its May 23, 2025, edition, reported that Vi has revived debt-raising talks with banks that had stalled over uncertainty around the telco's regulatory dues. The telco has been discussing fundraising with lenders since 2024, but the pace has picked up particularly after the Supreme Court on May 19 dismissed the company's plea seeking a ₹45,000 crore waiver on penalties and interest linked to its ₹83,400 crore adjusted gross revenue (AGR) liability. 'Without AGR relief, our calculation confirms what Vi argued in the SC. Repayment of current statutory dues would lead Vi to run out of its cash reserves by March 2026,' Ambit said. 'Thus, supportive action before the payment date of March 2026 is the most likely outcome.' Vi plans to invest ₹50,000-₹55,000 crore in capex through FY28, mainly in 4G modernisation and 5G roll-outs, which is crucial for the struggling telco to bolster its networks and prevent subscriber port-outs to its stronger rivals, Reliance Jio and Bharti Airtel . Between March 2024 and February 2025, the telecom joint venture between India's Aditya Birla Group (ABG) and the UK's Vodafone Group Plc, raised around ₹26,000 crore via equity, including ₹4,000 crore from vendors. Vi has previously said it has been in discussions with lenders for over a year to secure ₹35,000 crore in bank financing, including ₹10,000 crore in non-fund-based credit. Ambit Capital estimates that despite tariff hikes in July 2024, Vi's annualised 3QFY25 cash EBITDA of ₹9,800 crore isn't sufficient to pay off ₹16,900 crore due in FY26. 'In June 2025, Vi will likely receive ₹64bn (₹6,400 crore) equity funding from Vodafone PLC as an indemnity payment. But the same isn't sufficient for Vi to raise bank loan funding of Rs250bn (₹25,000 crore), which is necessary for the company to carry out its target ₹500-550bn (₹50,000-55,000 crore) FY25-28 capex,' the brokerage said. As of December 31, 2024, Vodafone Idea's bank debt was ₹2,330 crore. At the same time, government dues related to spectrum and AGR liabilities were at ₹2.15 lakh crore, excluding interest. Under the 2021 telecom relief package, large repayments were deferred until October 2025.
Time of India
05-05-2025
- Automotive
- Time of India
EVs pose threat to manufacturers of engine components, but also open opportunities in advanced tech: Report
The ongoing transition to electric vehicles (EVs) is expected to reshape the auto component industry by increasing content per vehicle and creating new avenues for suppliers, according to a recent report by Ambit Capital. However, it also highlighted that while the rise of EVs poses a threat to manufacturers dependent on internal combustion engine (ICE) components, it also unlocks significant growth opportunities. ''While EV disruption poses existential risk for the suppliers of ICE-dependent components, it opens up several opportunities for the component suppliers to provide a) EV components like li-ion batteries , traction motors , controllers, BMS etc' It added that the component makers can diversify into EV-specific parts such as lithium-ion batteries, traction motors, controllers, and battery management systems (BMS). Additionally, EVs enable the adoption of advanced technologies like regenerative braking, advanced driver-assistance systems (ADAS) , and smart cockpits, further boosting the role of suppliers in the value chain. Another advantage for component suppliers comes from increased demand for certain parts due to EV architecture . Components such as wiring harnesses, electronic control units (ECUs), and differential assemblies are expected to see greater content per vehicle compared to traditional ICE vehicles. EV adoption in India is projected to grow gradually. Electric two-wheeler (2W) penetration is expected to rise from 6.3 per cent in FY25 to 21 per cent by FY29. Similarly, passenger vehicle (PV) penetration is likely to grow from 2.6 per cent to 10.4 per cent during the same period. In contrast, electric three-wheelers (3Ws) are expected to witness rapid adoption, surging from 22.9 per cent in FY25 to nearly 68 per cent by FY29. However, the report cautions that many EV components are currently imported, which may result in intense competition, especially in the early stages of the EV transition. Despite the growth potential, the shift towards EVs also poses key risks. Suppliers heavily dependent on engine and select transmission components may face existential challenges. The report also flagged three key challenges for the auto components industry - the USMCA/tariff regime, economic weakness in the EU, and competition from Chinese players. As India's auto component industry is heavily reliant on exports to the US and EU, these challenges could strain finances in the near term.
Economic Times
05-05-2025
- Automotive
- Economic Times
EVs pose threat to manufacturers of engine components, but also open opportunities in advanced tech: Report
A recent report indicates that the electric vehicle transition will significantly reshape the auto component industry, creating opportunities for suppliers while posing risks to those reliant on internal combustion engine parts. Increased demand for EV-specific components and advanced technologies will boost the role of suppliers. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Renewables The ongoing transition to electric vehicles (EVs) is expected to reshape the auto component industry by increasing content per vehicle and creating new avenues for suppliers, according to a recent report by Ambit Capital However, it also highlighted that while the rise of EVs poses a threat to manufacturers dependent on internal combustion engine (ICE) components, it also unlocks significant growth report said "While EV disruption poses existential risk for the suppliers of ICE-dependent components, it opens up several opportunities for the component suppliers to provide a) EV components like li-ion batteries, traction motors, controllers, BMS etc"It added that the component makers can diversify into EV-specific parts such as lithium-ion batteries, traction motors, controllers, and battery management systems (BMS).Additionally, EVs enable the adoption of advanced technologies like regenerative braking, advanced driver-assistance systems (ADAS), and smart cockpits, further boosting the role of suppliers in the value advantage for component suppliers comes from increased demand for certain parts due to EV architecture. Components such as wiring harnesses, electronic control units (ECUs), and differential assemblies are expected to see greater content per vehicle compared to traditional ICE adoption in India is projected to grow gradually. Electric two-wheeler (2W) penetration is expected to rise from 6.3 per cent in FY25 to 21 per cent by passenger vehicle (PV) penetration is likely to grow from 2.6 per cent to 10.4 per cent during the same period. In contrast, electric three-wheelers (3Ws) are expected to witness rapid adoption, surging from 22.9 per cent in FY25 to nearly 68 per cent by the report cautions that many EV components are currently imported, which may result in intense competition, especially in the early stages of the EV the growth potential, the shift towards EVs also poses key risks. Suppliers heavily dependent on engine and select transmission components may face existential report also flagged three key challenges for the auto components industry - the USMCA/tariff regime, economic weakness in the EU, and competition from Chinese India's auto component industry is heavily reliant on exports to the US and EU, these challenges could strain finances in the near term.
The Print
05-05-2025
- Automotive
- The Print
EVs pose threat to manufacturers of engine components, but also open opportunities in advanced tech: Report
However, it also highlighted that while the rise of EVs poses a threat to manufacturers dependent on internal combustion engine (ICE) components, it also unlocks significant growth opportunities. New Delhi [India], May 5 (ANI): The ongoing transition to electric vehicles (EVs) is expected to reshape the auto component industry by increasing content per vehicle and creating new avenues for suppliers, according to a recent report by Ambit Capital. The report said 'While EV disruption poses existential risk for the suppliers of ICE-dependent components, it opens up several opportunities for the component suppliers to provide a) EV components like li-ion batteries, traction motors, controllers, BMS etc' It added that the component makers can diversify into EV-specific parts such as lithium-ion batteries, traction motors, controllers, and battery management systems (BMS). Additionally, EVs enable the adoption of advanced technologies like regenerative braking, advanced driver-assistance systems (ADAS), and smart cockpits, further boosting the role of suppliers in the value chain. Another advantage for component suppliers comes from increased demand for certain parts due to EV architecture. Components such as wiring harnesses, electronic control units (ECUs), and differential assemblies are expected to see greater content per vehicle compared to traditional ICE vehicles. EV adoption in India is projected to grow gradually. Electric two-wheeler (2W) penetration is expected to rise from 6.3 per cent in FY25 to 21 per cent by FY29. Similarly, passenger vehicle (PV) penetration is likely to grow from 2.6 per cent to 10.4 per cent during the same period. In contrast, electric three-wheelers (3Ws) are expected to witness rapid adoption, surging from 22.9 per cent in FY25 to nearly 68 per cent by FY29. However, the report cautions that many EV components are currently imported, which may result in intense competition, especially in the early stages of the EV transition. Despite the growth potential, the shift towards EVs also poses key risks. Suppliers heavily dependent on engine and select transmission components may face existential challenges. The report also flagged three key challenges for the auto components industry – the USMCA/tariff regime, economic weakness in the EU, and competition from Chinese players. As India's auto component industry is heavily reliant on exports to the US and EU, these challenges could strain finances in the near term. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
