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News18
9 hours ago
- Business
- News18
How Brands Are Acting on Plastic and Sustainability This World Environment Day
Last Updated: Indian businesses are stepping up their game this World Environment Day by reducing plastic use, slashing carbon emissions, and championing circularity. As the world unites under the 2025 World Environment Day theme of #BeatPlasticPollution, India Inc. is responding with urgency and innovation. From global fast-food giants to e-commerce powerhouses and sporting goods retailers, a common thread ties them all together: sustainability is no longer a side note, it's at the heart of business transformation. 'At KFC India, sustainability is always on our bucket list," the brand states with confidence. With a legacy dating back to 1995, KFC has transitioned to 100% responsibly sourced packaging. In the past year alone, the brand has eliminated 3500 MT of plastic and converted 80% of its packaging to recyclable and compostable formats. KFC's efforts extend beyond packaging. Their restaurant designs align with global green standards and feature 11 'Green Building Must Haves." In a landmark achievement, two of its restaurants have been awarded by the Indian Green Building Council: Bhawarkua, Indore (Gold rating) and Rayya, Punjab (Platinum rating) — the latter being the highest possible certification. From maximizing natural daylight to implementing water-saving fixtures and energy-efficient systems, KFC is cooking up a greener QSR future. Pure Storage: Slimmer Systems, Lighter Footprint 'Sustainability is integral to our innovation strategy," says Ramanujam Komanduri, Country Manager, Pure Storage India. By engineering storage solutions that consume up to 85% less energy and 77% less space than legacy systems, Pure Storage is significantly reducing data center footprints. Their Evergreen model—which extends hardware life via modular upgrades—also cuts down e-waste. This World Environment Day, the company is doubling down on reducing reliance on plastic-intensive components and championing energy efficiency. Flipkart is embracing a low-carbon, circular economy model. Since 2021, it has reduced packaging weight, transitioned away from single-use plastics, and now sources recycled materials for cartons. With a fleet of over 13,000 EVs and green warehouses aligned with IGBC standards, Flipkart is driving toward a cleaner last mile. Their innovations include replacing bubble wrap with shredded waste, enabling the reuse of 6 million cartons monthly, and slashing plastic mailer content from 40% in 2021 to 7-8% in 2025. More than 26,000 tons of paper have been diverted from landfills, and biofuel use has dropped by over 30%. 'Sustainability is embedded in how we build, operate, and grow," notes Nishant Gupta, Head of Sustainability. Decathlon: The Future of Sports is Circular Decathlon India is pioneering circular retail. 'We are rethinking how sport is consumed in a world that demands more responsible choices," says Annie George, Leader, Sustainable Development. The brand aims to triple its circular business impact by 2027 by keeping over 300,000 products in use and out of landfills. Their new initiative, Second Life Bazaar, launched on World Environment Day, empowers customers to repair, reuse, or trade sports gear, thereby cultivating a culture of conscious consumption. Whether it's refurbishing a bicycle or reusing a tennis racket, every action helps build a future rooted in longevity and access. Green Goals, Real Results These brands are not just making sustainability pledges—they're delivering measurable outcomes. As the world focuses on beating plastic pollution, these industry leaders are proving that bold environmental action is good for the planet and business. From compostable containers to electric fleets and circular commerce, India's corporate sector is taking decisive steps towards a sustainable future. First Published: June 05, 2025, 07:33 IST
Time of India
2 days ago
- Business
- Time of India
Indian companies post satisfactory Q4 results despite global challenges: Bank of Baroda Report
Corporate performance of Indian companies in the fourth quarter of financial year 2025 remained satisfactory despite a tough global economic environment , according to a recent report by Bank of Baroda. The report highlighted that most companies are optimistic about their future growth prospects, and there is potential for further improvement once consumption demand picks up in FY26. It said "Corporate performance in Q4 FY25 was on the whole satisfactory and there is scope for an upward movement once consumption pick up in FY26. Importantly, despite a challenging global environment, companies remain positive on future growth prospects". The Bank of Baroda report pointed out that certain sectors are already showing signs of recovery. Sectors linked to infrastructure are experiencing steady growth even though they are being compared to a high base from last year. In the case of consumer-related sectors like FMCG and consumer durables, strong rural demand and seasonal factors have played a key role in supporting recovery. The services sector has also continued to grow at a steady pace, driven by strong demand. The report noted that stable commodity prices, low inflation in India, a favourable monsoon outlook, trade agreements, government spending on infrastructure, and tax benefits are expected to be important drivers of growth and demand in the coming months. According to the report, in Q4 FY25, aggregate net sales of a sample of 1,893 companies increased by 5.4 per cent, while net profits rose by 7.6 per cent. Expenses and interest costs remained under control, which helped improve the debt repayment ability of companies. However, some slowdown in sales was seen in large sectors such as oil and gas, textiles, and iron and steel. This had a negative impact on the overall performance of the sample. But the report suggested that this is likely a one-time occurrence and not a long-term concern. Similarly, the BFSI (banking, financial services, and insurance) sector, which performed strongly last year, saw some moderation in growth. This has been linked to a slowdown in credit growth. Overall, the report painted a positive picture of India Inc.'s performance in Q4 FY25 and suggests that companies are well-positioned to benefit from improving demand and supportive policy measures in the next financial year.
India Gazette
2 days ago
- Business
- India Gazette
Indian companies post satisfactory Q4 results despite global challenges: Bank of Baroda Report
New Delhi [India], June 3 (ANI): Corporate performance of Indian companies in the fourth quarter of financial year 2025 remained satisfactory despite a tough global economic environment, according to a recent report by Bank of Baroda. The report highlighted that most companies are optimistic about their future growth prospects, and there is potential for further improvement once consumption demand picks up in FY26. It said 'Corporate performance in Q4 FY25 was on the whole satisfactory and there is scope for an upward movement once consumption pick up in FY26. Importantly, despite a challenging global environment, companies remain positive on future growth prospects'. The Bank of Baroda report pointed out that certain sectors are already showing signs of recovery. Sectors linked to infrastructure are experiencing steady growth even though they are being compared to a high base from last year. In the case of consumer-related sectors like FMCG and consumer durables, strong rural demand and seasonal factors have played a key role in supporting recovery. The services sector has also continued to grow at a steady pace, driven by strong demand. The report noted that stable commodity prices, low inflation in India, a favourable monsoon outlook, trade agreements, government spending on infrastructure, and tax benefits are expected to be important drivers of growth and demand in the coming months. According to the report, in Q4 FY25, aggregate net sales of a sample of 1,893 companies increased by 5.4 per cent, while net profits rose by 7.6 per cent. Expenses and interest costs remained under control, which helped improve the debt repayment ability of companies. However, some slowdown in sales was seen in large sectors such as oil and gas, textiles, and iron and steel. This had a negative impact on the overall performance of the sample. But the report suggested that this is likely a one-time occurrence and not a long-term concern. Similarly, the BFSI (banking, financial services, and insurance) sector, which performed strongly last year, saw some moderation in growth. This has been linked to a slowdown in credit growth. Overall, the report painted a positive picture of India Inc.'s performance in Q4 FY25 and suggests that companies are well-positioned to benefit from improving demand and supportive policy measures in the next financial year. (ANI)
Mint
2 days ago
- Business
- Mint
Stock market outlook: Experts see Nifty 50 at 26K peak despite unlikely recovery in the near-term
India Inc.'s Q4 FY25 earnings season was broadly in line with Street expectations, reflecting subdued growth and offering limited optimism for a near-term recovery. Companies in the BSE-500 index posted a 8.7% year-on-year (YoY) increase in net profit, while the Nifty 50 companies reported a more modest 3.7% growth in net income. The fourth quarter was marked by modest operating performance across most sectors and muted commentary from company managements. This suggests that a strong revival in credit, consumption, or investment demand is unlikely in the immediate future. According to Kotak Institutional Equities, the earnings before interest, tax, depreciation and amortization (EBITDA) of Nifty 50 companies grew by 9.2% YoY in Q4. For the full fiscal year 2025, net income and EBITDA of the Nifty 50 rose by 6.4% and 4.5%, respectively. The Nifty 50 is currently trading at 20.2 times one-year forward price-to-earnings ratio (PER), slightly below its five-year average of 21.7x. This positions the market in a relatively neutral valuation zone. 'Markets could see a phase of consolidation in the near term, as the percentage of BSE200 stocks trading above +1 standard deviation from their long-term average has increased significantly — from 10.6% to 30.3%,' said Seshadri Sen, Head of Research and Strategist at Emkay Global Financial Services. He added that while near-term global and geopolitical concerns have largely played out, a constructive trade agreement with the US could offer support. Emkay Global has maintained its Nifty 50 target of 26,000 for March 31, 2026, based on a long-term average PER of 20x on FY27 estimated EPS of 1,304. Meanwhile, Kotak Institutional Equities highlighted the Indian equity market's current dilemma — caught between high valuations, domestic growth challenges, and global macroeconomic headwinds on one side, and the hopes of an eventual recovery in economic and earnings growth on the other. 'We observe stretched valuations across most sectors and stocks—barring BFSI and a few exceptions — against a backdrop of weak volume growth and increasing disruption risks,' Kotak said in a note. Seshadri Sen remains constructive on the broader markets. While concerns around reciprocal tariffs have largely eased, he expects investor attention to shift toward the progress on bilateral trade agreements. 'We forecast Nifty EPS growth of around 12–13% in FY26. Green shoots of recovery in discretionary consumption may emerge as the impact of monetary easing becomes more pronounced. The market witnessed a V-shaped rally following the tariff pause, and we expect the beta rally to continue. Any meaningful correction should be considered a buying opportunity,' Sen said. He views current Nifty 50 levels as fundamentally justified, with scope for further upside as the earnings cycle begins to inflect. Supportive monetary policy — characterized by rate cuts, liquidity support, and relaxed lending norms — provides additional comfort. Emkay Global maintains its overweight stance on the Discretionary, Technology, and Telecom sectors, reflecting confidence in their growth potential amid an evolving macroeconomic landscape. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
3 days ago
- Business
- Mint
It will be tougher to generate market-beating returns over medium term, says ICICI Pru AMC's Shah
The Indian market is entering a phase of subdued returns over the medium term as it will be tougher to generate alpha or excess returns over an underlying benchmark, according to Anand Shah of ICICI Prudential Asset Management Co. 'I think the biggest event (ahead) will be the end of the 90-day tariff pause— that remains the key event," said Shah, chief investment officer-portfolio management services and alternative investment funds at India's second-largest asset manager. Also Read | ICICI Prudential: Street is pinning hopes on margin recovery The real challenge for equities is sentiment and behaviour, he said. While corporates and banks remain cautious, markets have priced in overly optimistic global outcomes—risking disappointment, as seen since September 2024, he said. Edited excerpts: How do you interpret the current market volatility? There is noticeable uncertainty surrounding Trump's tariff policies. In the short term, the market will always be volatile on either side. And with every result, you will have a different reaction. The more important aspect is the medium-term. If you look at the period from 2010 to 2020, the GDP growth rate was normal—around 11 to 12% CAGR (compound annual growth rate). However, India Inc. was suffering. So, India Inc.'s profitability from 2010 to 2020 was very low—in the single digits, around 2 to 3% CAGR. Also Read | ICICI Prudential has growth cover in place If I break that down further, the NSE 500 profits-to-GDP fell from 4.7% in 2010 to almost 2.7% in 2018–19, and then to 2% in 2020, which was a Covid year. But that sharp drop in profits-to-GDP meant GDP grew, but profits did not. If I break that down even more, that fall was sustained by the ₹60,000 crore capital-intensive businesses between 2015 and 2019 across about 19 sectors. The profit growth we saw from corporate India in 2020 to 2024, and likely up to March 2025, has been quite strong. And that, too, was led by the cyclical, capital-intensive businesses and the banks. Whereas the defensive sectors—FMCG (fast-moving consumer goods), IT, pharma—were actually beneficiaries of lower commodity prices. They were doing well all the way up to 2020, and even into 2021. But from 2021 till date, they have been big underperformers. They had become very expensive by the end of 2021. Another segment of the market—more cyclical and value-oriented—started to perform better. So that sort of reversal is happening in the market in the medium term. For us, if you see the last four years—2020 to 2024—profit growth has been around 35% CAGR for India. This year also looks strong. So over five years, it should be in the 30%+ CAGR range, which is much higher than what we saw in the previous decade. What about the medium-term expectation? For the next few years, which is the medium term, I believe it will be more subdued. So while we had a 20–25% earnings growth rate in recent years—which benefited the market, plus added alpha—that was because if you were in cyclical, capital-intensive, corporate banks, PSUs, you did extremely well compared to the market. Also Read | Charlie Munger shaped investing strategies beyond numbers writes S Naren If you were in defence, you were in base capital-intensive sectors—everything was at 50%, 60%, 70% discount to book value. You had tons of value, and India was trading below the book value in many areas. So that part of the story is also, I won't say completely done, but has played out to a large extent. And to that extent, going forward, we should expect the earnings growth rate to again normalize, around the nominal growth rate of 10–11%, maybe a bit lesser. Alpha-rich opportunities will also be fewer and far between. It will be tougher to generate alpha going forward. So I think we are entering a new phase of the market—still positive, but the returns will be far more subdued than what you have seen in the last few years. What kind of returns do you expect from Nifty 50? Over the 15-year period from 2010 to 2025, GDP growth has averaged around 11.3%, with NSE 500 earnings growing at about 11.6%. While stock performance has been notably strong in the last four years, over the full period, NSE 500 returns have broadly tracked earnings, averaging close to 11%. So, I think the market's long-term growth links closely to nominal GDP and profit growth. EPS (earnings per share) growth is key, and I expect it to be around 11 to 12% at most, which will be reflected in the broader market. From here, stock-picking becomes crucial. You'll need to focus on select sectors and avoid others to generate alpha. Does that imply investors should consider increasing their exposure to fixed income and precious metals? Investors should consider increasing exposure to fixed income and precious metals for a balanced portfolio. Over the long term, diversification remains essential—balancing equities, fixed income and alternatives. Even if the market delivers 10–12% compounding returns going forward, that is still better than most other asset classes. So, maintain the right equity exposure based on your goals and risk profile. If you are significantly overweight on equities, it may be a good time to review your portfolio and consider reducing your exposure. How do you balance between large-, mid- and small-cap segments, especially given the recent sharp recovery and the broader market correction of 20–30%? With alpha-generating opportunities becoming limited, where do you see the potential now—are large-caps set to lead, or do mid- and small-caps still offer better prospects? We were significantly overweight on mid- and small-caps starting in 2022, but we reduced our exposure shortly after. Post-FY24, mid- and small-caps saw a sharp correction, which made those segments relatively less risky. It had been an unprecedented rally, with almost everything doing well. Looking at the data from late February to early April—when the market bottomed—that period presented a good opportunity to increase our exposure to small-caps. On the way down, we selectively added to our mid- and small-cap positions, remaining stock-specific in our approach. Mid-caps, as a basket, still look expensive, while small-caps and large-caps appear more reasonably valued. That said, despite high valuations in certain areas, a few select stocks stood out and were added to our portfolio. What are the factors that we need to watch out for? I think the biggest event will be the end of the 90-day tariff pause—that remains the key event. India has signed a UK FTA (free-trade agreement), and we are also looking forward to a potential FTA with the US. Relatively speaking, some developments are already priced in or at least partially expected—for example, the rate cuts anticipated from the Reserve Bank of India (RBI). That's the third major factor: policy direction and potential rate cuts. Another important area is commodity prices. You cannot ignore crude prices, especially given our import dependence and energy needs. With crude and other commodities coming off (peaks), that is clearly a positive. We are closely watching developments in Russia, Israel, Iran and the US—all of which are influencing global prices. And last, but not least, government spending is helping drive recovery, and a large part of the slowdown in the domestic economy could be attributed to the cautious fiscal stance around elections. What about private capex? Private capex has started picking up, but not in a significant way. While cash flows are improving and interest rates are easing, companies remain cautious. We are still far from the scale seen between 2004 and 2010, when private investment surged—that kind of momentum is missing. Multiple uncertainties have contributed: Covid, the Russia-Ukraine conflict, India's elections, China's slowdown and uncertainty around US policy. All of this is making the private sector hesitant to commit large capital. China plays a key role here. Its excess capacity and export redirection to countries like India are putting pressure on domestic margins, creating further investment hesitation. However, in the medium term, this could present an opportunity. As global supply chains diversify, countries like Vietnam, Bangladesh, Mexico—and potentially India—stand to benefit. In sectors like textiles, India isn't uncompetitive, but tariff differentials with countries like Bangladesh and Vietnam are a disadvantage. Trade deals like the UK FTA could help address this and spur investment. So while near-term caution remains, some of these headwinds could turn into tailwinds for private capex if global and policy dynamics shift in our favour. Given the recent concerns and the noticeable flight of capital from the US, I wanted to get your perspective on how India is positioned within the broader global investment landscape. From the foreign portfolio investor (FPI) inflow point of view, do you see capital moving more aggressively toward China, or do you think the shift will be more balanced — perhaps favouring both India and China equally? Despite the US running a large deficit, the dollar has continued to remain strong. If that were to reverse—if the currency were to weaken from here—financial investors holding US assets, especially equities, could start diversifying out. We're already seeing signs of that. European equities have seen some flows, and in India, while flows are mixed, some have turned positive, with increased interest in Indian equities. China is a more complex story—there's direct uncertainty, and it's hard to say how that will play out. But yes, parts of the markets, like Taiwan, have benefited, and the Taiwanese dollar has appreciated significantly. European currencies like the euro and Germany's economy are also seeing some support. Latin American currencies, too, to some extent, are appreciating, making financial assets there more attractive. If this shift continues, it could support countries like India, helping both the government and RBI stimulate the economy more effectively. Of course, all of this is speculative for now—we're watching closely. The biggest investors remain in US equity and bond markets, and how they react, especially in terms of carry trade positions, will be key. Which sectors are you overweight and underweight on? We continue to be overweight on manufacturing and still like metals. We are also positive on allied businesses like some corporate banks, where we remain overweight. When it comes to the consumption space, we believe it is evolving beyond just products. The data shows that while premium consumption is steady, especially among HNIs (high-net-worth Indians), there is also an emerging class moving up the pyramid. Traditional consumption—like FMCG products such as shampoos and packaged goods—seems to be saturating. Today, discretionary spending is shifting more toward services: financial services, healthcare, travel and organized retail. Even the way people purchase goods is becoming more experience- and status-driven. One thing that you think investors are probably underestimating? I think the biggest risk today is in investor expectations. People have gotten used to a market that hasn't seen any major correction—not even a 10% drop—from June 2022 to September 2024. That's made investors complacent, and that's a bigger risk than any real economic concern. From a macro perspective, India is fine. Economic conditions are stable, the currency is holding up, forex reserves are healthy, and current account deficits are at manageable levels. India remains one of the fastest-growing large economies and the largest democracy, so there are no major structural concerns there. The real challenge for equity markets is sentiment and behaviour. Corporates are being cautious, not overspending, and private capex is still conservative. Banks are also lending carefully, especially for capex-heavy projects. In contrast, market participants have priced in a more optimistic global scenario than what may actually play out—and that can lead to disappointments, as we've seen since September 2024. Minor corrections are not just likely, but healthy. Valuations had become stretched, especially for retail-heavy stocks. Flows have slowed, and if you look at cross-sector investment activity, it has moderated—which is the right thing. The rally of the past four to five years was exceptional, but that can't continue at the same pace.
