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Economic Times
a day ago
- Business
- Economic Times
The Barbell Advantage: Positioning for stability and opportunity in Indian fixed income
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The global fixed income backdrop is shifting as the US Federal Reserve looks poised to deliver its first rate cut of the current cycle this September. Markets place the odds of a 25 basis point cut at nearly certain levels, with the target fed funds range expected to move from 4.25–4.50% down to 4.00–4.25%.With signs of slowing labour markets, muted inflation pressures, and the potential for up to three cuts before the end of the year, this marks a clear pivot from the Fed's long pause since December US yields have moved materially, Indian bond yields have tended to react, largely via sentiment and capital easing cycles in the US have often led to benign moves in Indian yields, though the scale and speed vary depending on domestic now, the global shift towards easing, if sustained, can encourage flows into emerging market debt such as India's — a factor that can help anchor local yields, especially in the absence of major fiscal Indian bonds have held up in the face of global volatility. The RBI has already front-loaded policy easing since February, cutting the repo rate by a cumulative 100 basis points to 5.50%.This was complemented by large liquidity support, with a further 100 basis point CRR cut to be phased in from September to November, adding approximately INR2.5 lakh crore of liquidity into the banking has been running below the 4% target, with CPI in July printing at just 1.55%, though the RBI's projections point towards a gradual climb, crossing 4% in early forecasts remain steady at 6.5% for FY26, supported by rural consumption recovery and government-led capital expenditure As many market participants have also observed, the local yield curve has steepened in recent months, especially between the 10-year and 15-year maturities, as limited 10-year supply and cautious sentiment have pushed intermediate yields bonds have been relatively more stable. This steepening has occurred even though the underlying global and domestic macro backdrop arguably favours a constructive duration fixed income investors, the next 12–18 months seem to offer opportunities at both ends of the maturity spectrum. In the near term, credit spreads in high quality corporate bonds remain stable and 1–5 year AAA-rated corporate bonds with short-duration accrual strategies can deliver steady income while benefiting from the downward drift in short-term rates as CRR cuts inject part of the portfolio plays defence while locking in yields that may compress other leg of positioning is to maintain core exposure to long-duration government bonds , particularly in the 14–15-year segment and selectively at the very long steepening at the longer end seems to be overdone relative to fundamentals, and a normalisation of sentiment or moderation in supply could see spreads Fed easing and global growth softness push US and Indian yields lower, this part of the book stands to benefit from capital this barbell approach — accrual-oriented short duration plus strategic long duration — aligns with an outlook where local rates are near the end of their easing cycle but global conditions remain supportive for RBI may hold through October and consider one final 25 basis point cut in December, but even without it, abundant liquidity and anchored inflation expectations should keep yields remain — from renewed inflation pressures, higher long-bond supply, or global shocks — but the balance of probabilities favours a stable to stronger bond market therefore, can use the current steepness in parts of the curve to add duration selectively while earning carry from shorter corporate a patient strategy for a cycle that appears closer to its bottom in India yet is still in its early stages globally.(The author is Managing Director and Head of Investment Strategy & Solutions, Waterfield Advisors.)(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
a day ago
- Business
- Time of India
The Barbell Advantage: Positioning for stability and opportunity in Indian fixed income
The global fixed income backdrop is shifting as the US Federal Reserve looks poised to deliver its first rate cut of the current cycle this September. Markets place the odds of a 25 basis point cut at nearly certain levels, with the target fed funds range expected to move from 4.25–4.50% down to 4.00–4.25%. With signs of slowing labour markets, muted inflation pressures, and the potential for up to three cuts before the end of the year, this marks a clear pivot from the Fed's long pause since December 2024. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo Whenever US yields have moved materially, Indian bond yields have tended to react, largely via sentiment and capital flows. Previous easing cycles in the US have often led to benign moves in Indian yields, though the scale and speed vary depending on domestic conditions. Right now, the global shift towards easing, if sustained, can encourage flows into emerging market debt such as India's — a factor that can help anchor local yields, especially in the absence of major fiscal shocks. Live Events Domestically, Indian bonds have held up in the face of global volatility. The RBI has already front-loaded policy easing since February, cutting the repo rate by a cumulative 100 basis points to 5.50%. This was complemented by large liquidity support, with a further 100 basis point CRR cut to be phased in from September to November, adding approximately INR2.5 lakh crore of liquidity into the banking system. Inflation has been running below the 4% target, with CPI in July printing at just 1.55%, though the RBI's projections point towards a gradual climb, crossing 4% in early 2027. Growth forecasts remain steady at 6.5% for FY26, supported by rural consumption recovery and government-led capital expenditure . As many market participants have also observed, the local yield curve has steepened in recent months, especially between the 10-year and 15-year maturities, as limited 10-year supply and cautious sentiment have pushed intermediate yields higher. Ultra-long bonds have been relatively more stable. This steepening has occurred even though the underlying global and domestic macro backdrop arguably favours a constructive duration view. For fixed income investors, the next 12–18 months seem to offer opportunities at both ends of the maturity spectrum. In the near term, credit spreads in high quality corporate bonds remain stable and attractive. Pairing 1–5 year AAA-rated corporate bonds with short-duration accrual strategies can deliver steady income while benefiting from the downward drift in short-term rates as CRR cuts inject liquidity. This part of the portfolio plays defence while locking in yields that may compress further. The other leg of positioning is to maintain core exposure to long-duration government bonds , particularly in the 14–15-year segment and selectively at the very long end. The steepening at the longer end seems to be overdone relative to fundamentals, and a normalisation of sentiment or moderation in supply could see spreads compress. If Fed easing and global growth softness push US and Indian yields lower, this part of the book stands to benefit from capital gains. Together, this barbell approach — accrual-oriented short duration plus strategic long duration — aligns with an outlook where local rates are near the end of their easing cycle but global conditions remain supportive for bonds. The RBI may hold through October and consider one final 25 basis point cut in December, but even without it, abundant liquidity and anchored inflation expectations should keep yields well-supported. Risks remain — from renewed inflation pressures, higher long-bond supply, or global shocks — but the balance of probabilities favours a stable to stronger bond market backdrop. Investors, therefore, can use the current steepness in parts of the curve to add duration selectively while earning carry from shorter corporate exposures. It's a patient strategy for a cycle that appears closer to its bottom in India yet is still in its early stages globally. (The author is Managing Director and Head of Investment Strategy & Solutions, Waterfield Advisors.)
Yahoo
27-03-2025
- Entertainment
- Yahoo
Digital Surges Ahead as India's Media and Entertainment Sector Hits $29 Billion, Annual FICCI-EY Report Reveals
India's media and entertainment sector hit INR2.5 trillion ($29.4 billion) in 2024, according to the annual Federation of Indian Chambers of Commerce and Industry (FICCI)-EY report. Titled 'Shape the Future: Indian Media and Entertainment is Scripting a New Story,' the report reveals that digital media overtook television for the first time, becoming the industry's largest segment and accounting for 32% of total revenue, ending a two-decade reign by TV. More from Variety Kamal Haasan to Chair India's FICCI Media-Entertainment Committee South as Tamil Nadu Ramps Up Film Infrastructure Kamal Haasan, Ajith Kumar Lead Netflix's Power-Packed South Indian Slate for 2025 'Pushpa 2,' 'Kalki 2898 AD' Lead as Indian Box Office Shrinks 3% to $1.37 Billion in 2024 Advertising revenues grew 8.1%, reaching an all-time high of $14.9 billion. Digital platforms led the charge, with ad spends on e-commerce, short video, and social media driving digital advertising to $8.18 billion, now comprising 55% of the total ad market. Print and radio held ground with stable ad revenue, while digital Out-of-Home advertising jumped 78%, contributing 12% of the OOH segment. India's filmed entertainment sector released 1,823 films in 2024, an increase of 64 over the previous year. Around 500 titles premiered on streaming platforms, though only 60 were direct-to-digital releases. Approximately 200 films were dubbed versions, leaving over 1,600 as original language productions. The country's screen infrastructure expanded by 2%, reaching 9,927 screens — but India's screen density remains among the lowest in the world, especially compared to China or the U.S. The lack of infrastructure continues to constrain theatrical revenues, particularly in Tier III and IV markets where potential audiences remain underserved. Despite these challenges, the year saw South Indian films – led by 'Pushpa 2: The Rule' and 'Kalki 2898 AD' continue to dominate box office returns. A significant share of the top-grossing films came from the Telugu, Tamil, and Kannada industries, which maintained strong theatrical pull across regional markets and increasingly, the Hindi-speaking belt. The strength of dubbed versions and pan-India casting strategies further bolstered the South's footprint. Market leading multiplex chain PVR Inox plans to add 100 new screens in FY25. The report estimates this growth, combined with an uptick in mass-market content and low-cost theaters in smaller towns, could expand India's theatrical audience base from under 100 million to around 175 million people. Still, revenues from filmed entertainment declined 5% to $2.18 billion, as theatrical admissions dropped and only 11 Hindi-language films grossed over INR1 billion ($11.7 million), down from 17 in 2023. Satellite and digital rights values also fell by 10%. Television continued its slide, with revenues falling 4.5% to $7.93 billion. Pay TV homes declined by six million, while Connected TV users grew to 30 million. Print stayed mostly flat at $3.04 billion, with a 1% gain in ad revenue but a 1% decline in subscriptions. Radio posted a modest 9% increase to $292 million), driven by events and alternate revenue streams. Online gaming revenues shrank 2% to $2.71 billion, dragged down by a 28% GST on deposits and a surge in illegal offshore platforms. Transaction gaming dropped 6%, while casual and free-to-play gaming grew 16%. Music fell 2% to $619 million, even though paid subscriptions jumped from 7 million to 10.5 million. Free platforms like YouTube and radio continued to cannibalize premium subscriber growth. The animation and VFX segment, hit hard by the Hollywood writers' strike and reduced international orders, declined 9% to $1.2 billion. Meanwhile, live events surged 15% to $1.18 billion, driven by international tours, weddings, and election-related spending. Out-of-home media rose 10% to $0.69 billion, fueled by premium inventory and transit locations. Looking ahead, the Indian M&E industry is projected to grow at a compound annual rate of 7% and reach $36.1 billion by 2027. Digital media will lead the expansion, climbing to $12.9 billion, while online gaming is expected to grow to $3.69 billion. Animation and VFX are projected to reach $1.72 billion, and live events are forecast to hit $1.95 billion. Filmed entertainment is expected to recover modestly to $2.49 billion, while television will continue its decline, falling to $7.79 billion. By 2027, digital and gaming combined are expected to make up 46% of the total industry revenue, with traditional segments like TV, print, and film reduced to a 41% share. Advertising will contribute 52% of total revenues, while subscription revenue will shrink to 35%. 'In the media and entertainment sector, two forces reign supreme: content and the audience,' Kamal Haasan, chair of FICCI Media and Entertainment South, wrote in the report's foreword. 'As we move into a digital first era, it's our responsibility to serve them both with bold, creative storytelling that reflects the rich diversity of our nation. By harnessing this power, we can ensure the industry thrives and stays relevant in an ever evolving landscape.' Ashish Pherwani, EY India's media and entertainment leader, added: 'Finally, the digital inflection point. And it changes everything.' 'The future is brimming with untapped potential,' said Kevin Vaz, chair, FICCI, media and entertainment committee. Best of Variety New Movies Out Now in Theaters: What to See This Week The Best Celebrity Memoirs to Read This Year: From Chelsea Handler to Anthony Hopkins Oscars 2026: First Blind Predictions Including Timothée Chalamet, Emma Stone, 'Wicked: For Good' and More
Yahoo
31-01-2025
- Business
- Yahoo
KPIT Technologies Ltd (BOM:542651) Q3 2025 Earnings Call Highlights: Strong Revenue and Profit ...
Revenue Growth: 20.7% year-to-date growth over last year Q3 FY25. Quarterly Revenue Growth: 17.4% in constant currency, 18.1% year-on-year. EBITDA Margin: 21.1% compared to 20.8% last year. Profit Growth: 38% year-to-date over the same period last year; 20.4% year-on-year for the quarter. Cash Generation: Increased from INR9.6 billion last quarter to INR14.2 billion this quarter. Days Sales Outstanding (DSO): 42 days, typically around 45 days. Interim Dividend: INR2.5 per share compared to INR2.1 per share last year. Deal Wins: USD 236 million during the quarter. Warning! GuruFocus has detected 1 Warning Sign with BOM:542651. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KPIT Technologies Ltd (BOM:542651) reported a strong year-to-date revenue growth of 20.7% and profit growth of 38% over the same period last year. The company has seen significant cash generation, with cash increasing from INR9.6 billion last quarter to INR14.2 billion this quarter. KPIT Technologies Ltd (BOM:542651) has maintained a low attrition rate, about half of the industry average, indicating strong employee retention. The company has a robust pipeline, which has increased by over 20% during the quarter, driven by large deals and broad-based client engagement. KPIT Technologies Ltd (BOM:542651) continues to invest in AI and cybersecurity, enhancing its technological capabilities and future readiness. There is a slowdown in global auto volumes, which could impact demand from clients, particularly in the US and Europe. The transition from electric vehicles (EVs) to hybrids and other alternatives by OEMs may pose challenges in terms of revenue adjustments. The company faces potential risks from the merger of key clients, such as Honda and Nissan, which could impact existing work and growth prospects. KPIT Technologies Ltd (BOM:542651) has experienced an increase in other expenses, which rose by 11% sequentially, impacting overall profitability. The company is cautious about mergers and acquisitions, opting not to pursue QIP in the short term, which may limit expansion opportunities. Q: Between the US and Europe, where do you see demand from clients coming back sooner based on your conversations? Also, how does the shift from EVs to hybrids impact your business with OEMs? A: Demand recovery is led by Europe, followed by the Americas and Asia. The shift to hybrids and other propulsion methods presents a great opportunity for KPIT, as we are involved in both battery electric and hybrid solutions. This trend is positive for us across various markets, including the US, Japan, and India. (Sachin Tikekar, President, Joint Managing Director, Executive Director) Q: Can you provide an update on the Coric initiative and when it might start contributing to revenue? A: We are on track with Coric, having secured a significant OEM client and are in advanced discussions with another European OEM. We expect Coric to contribute to revenue in FY26. (Kishor Patil, CEO, Co-Founder, Managing Director, Executive Director) Q: How do you see the deal pipeline shaping up in the upcoming quarters? A: We have seen significant improvement in deal closures and pipeline build-up, with opportunities across geographies and sub-verticals. We expect this trend to continue, driven by passenger cars, trucks, and off-highway vehicles, as well as collaborations with semiconductor companies. (Sachin Tikekar, President, Joint Managing Director, Executive Director) Q: Regarding the potential Honda-Nissan merger, do you foresee any risks to your existing work with Honda? A: We view the merger as a positive opportunity, potentially expanding our work with Nissan. We are a critical partner for Honda, and this merger could enhance our engagement with both companies. (Sachin Tikekar, President, Joint Managing Director, Executive Director) Q: How are you addressing the margin impact from the growth in ROW (Rest of World) geographies, which are typically lower margin? A: We do not see a negative impact on profitability from ROW growth. We are focusing on AI and automation to improve productivity and are shifting our revenue mix towards higher-margin areas like licenses and outcome-based revenues. (Kishor Patil, CEO, Co-Founder, Managing Director, Executive Director) 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
