Latest news with #Mahakumbh
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Business Standard
an hour ago
- Business
- Business Standard
India's GDP expands 7.4% in Q4 to meet annual growth estimates of 6.5%
India's economic growth rebounded to a four-quarter high of 7.4 per cent in the January-March period of 2024-25 (FY25), aligning with the annual growth estimate of 6.5 per cent, according to provisional estimates of gross domestic product (GDP) released by the National Statistics Office (NSO). The final-quarter performance outpaced expectations, beating both the Reserve Bank of India's (RBI's) forecast of 7.2 per cent and a Reuters poll of economists that had projected 6.7 per cent growth. Nominal GDP for the full financial year rose 9.8 per cent to ₹330.7 trillion, slightly above the ₹324.1 trillion estimated in the Union Budget. This boost helped the government perform marginally better on fiscal deficit, which stood at 4.77 per cent of GDP in FY25, against the revised estimate of 4.84 per cent. Gross value added (GVA) grew at a slower rate than GDP — at 6.8 per cent — in the March quarter, widening the gap between GDP and GVA due to a surge in net taxes (taxes minus subsidies), as government subsidy payouts contracted during the period. Now, economists believe uncertainty because of the tariff war triggered by US President Donald Trump's policies and weak urban demand will shape India's FY26 growth outlook, even as further policy rate cuts by the RBI will support economic recovery. 'The momentum of the economy, which picked up in the fourth quarter, is continuing into the first quarter (of FY26), and that's a good sign,' said V Anantha Nageswaran, chief economic advisor in the finance ministry, while briefing reporters after the release of GDP data. He said high-frequency indicators for April showed strong industrial and commercial activity, and noted that interest rate moderation and recent tax relief measures would likely support consumption. Sakshi Gupta, principal economist at HDFC Bank, noted that while FY25 GDP growth moderated from the previous year's 9.2 per cent, the economy recovered from the sluggish performance in the first half of FY25. 'Average growth for H2 stood at 6.9 per cent versus 6.1 per cent in H1FY25. Growth in the second half was supported by a rise in government capex and construction activity, healthy agriculture performance, and continued momentum in the service sector,' she said. Agriculture grew 5.4 per cent in the March quarter, buoyed by strong reservoir levels and robust rabi sowing. Manufacturing expanded 4.8 per cent — a three-quarter high rate — helped by subdued input cost inflation. The labour-intensive construction sector surged 10.8 per cent, marking a six-quarter high. The services sector expanded 7.3 per cent, with public administration, defence, and other government services leading the way with 8.7 per cent growth. However, segments like trade, transport, communication, and broadcasting recorded slightly slower growth at 6 per cent, down from 6.2 per cent a year earlier, despite the festival boost from events like the Mahakumbh. Financial, real estate, and professional services also slowed to 7.8 per cent from 9 per cent in the same quarter a year ago, possibly reflecting weaker credit and deposit growth. Public sector-driven services remained strong, as both central and state governments pushed to accelerate projects in the final three months of FY25. Net exports turned positive in the March quarter after three consecutive quarters of drag. 'The 8.3 per cent growth in exports in FY25 was mainly due to better performance of services, given that exports of goods were virtually flat,' said Madan Sabnavis, chief economist, Bank of Baroda. On the supply side, private final consumption expenditure growth moderated to 6 per cent, while government consumption spending declined 1.8 per cent, partly due to the high base of a year ago. Investment demand, measured through gross fixed capital formation, rose by 9.4 per cent in the March 2025 quarter. 'The seasonal rush by both Union and state governments to meet their capex targets, along with the private sector (there has been an increase in capex intentions based on the latest NSO survey data), appears to have provided succour to the investment demand in Q4FY25,' said Paras Jasrai, associate director, India Ratings. 'The pickup in investment demand is significant but needs to be watched for a sustainable trend in view of economic uncertainty and weak foreign investment demand as indicated by the net FDI inflow.' Rajani Sinha, chief economist, CareEdge Ratings, said the uneven pace of consumption recovery remained a key 'monitorable'. 'The strength in rural demand is expected to continue on the back of favourable monsoon prospects, healthy reservoir levels and upbeat agricultural output. However, the softness in urban demand continues to be an area of concern,' she said. Sinha also warned that despite the US placing reciprocal tariffs on hold for 90 days, global economic uncertainty was likely to persist. 'This is likely to weigh on the private investment impulses. Given this context, a broadbased and durable consumption recovery, along with a revival in the government's capex, becomes increasingly critical for a revival in the private capex cycle. Factoring all of these aspects, we expect GDP growth in FY26 to be 6.2 per cent,' she added.
Mint
3 days ago
- Business
- Mint
IndiGo promoter Rakesh Gangwal sells $1.35 billion stake in block deal
Mumbai: IndiGo co-founder and promoter Rakesh Gangwal sold shares worth $1.35 billion in the airline through a block deal on Tuesday, according to a term sheet accessed by Mint. On Monday, Mint reported that Gangwal was expected to sell shares worth $803 million via a block deal. However, the transaction size has since grown, according to the latest term sheet reviewed by Mint. Under the updated terms, Gangwal and his Chinkerpoo Family Trust offloaded 22.1 million shares, or a 5.7% stake, at an offer price of ₹ 5,230.5 per share in InterGlobe Aviation Ltd, which operates IndiGo, India's largest airline. This price reflects a nearly 3.5% discount to the stock's Monday closing price of ₹ 5,418 on the BSE. Following the block deal, shares of the company traded at ₹ 5,294 a piece in opening deals, down from the previous close of ₹ 5,418 per share on the BSE on Monday. IndiGo's shares have gained about 18% over the past year. As of 30 March 2025, Gangwal held a 5.3% stake in the company, while the Chinkerpoo Family Trust owned 8.23%, according to BSE data. In contrast, as of November 2015, Gangwal owned 16.89% of IndiGo, and the trust held 15.64%, highlighting the significant reduction in their combined holdings over time. Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co, and J.P. Morgan India Pvt are arranging the trade. Goldman Sachs declined to comment, while Gangwal, Morgan Stanley India, and J.P. Morgan India did not immediately respond to Mint's requests for comment. Gangwal has been gradually reducing his stake in the airline following a settlement agreement with co-founder Rahul Bhatia. He sold a 5.83% stake on 29 August 2024, after offloading an identical stake on 11 April 2024. IndiGo reported a 62% surge in profit in the fourth quarter ended March, driven by a spike in air travel during the Mahakumbh festival in January and February. In its recent earnings call, the company said it has damp-leased six Boeing 737 widebody aircraft to support international expansion, with one already deployed on the Delhi–Bangkok route. The airline is also betting on cargo revenue as a major growth opportunity. Management noted that India currently accounts for a single-digit share of international air cargo, indicating significant upside potential.
Mint
4 days ago
- Business
- Mint
IndiGo promoter Rakesh Gangwal to sell $1.35 billion stake in block deal
Mumbai: IndiGo co-founder and promoter Rakesh Gangwal is expected to sell shares worth $1.35 billion in the airline through a block deal on 27 May, according to a term sheet accessed by Mint. On Monday, Mint reported that Gangwal was expected to sell shares worth $803 million via a block deal. However, the transaction size has since grown, according to the latest term sheet reviewed by Mint. Under the updated terms, Gangwal and his Chinkerpoo Family Trust are set to offload 22.1 million shares, or a 5.7% stake, at an offer price of ₹ 5,230.5 per share in InterGlobe Aviation Ltd, which operates IndiGo, India's largest airline. This price reflects a 3.5% discount to the stock's Monday closing price of ₹ 5,420 on the BSE. As of 30 March 2025, Gangwal held a 5.3% stake in the company, while the Chinkerpoo Family Trust owned 8.23%, according to BSE data. In contrast, as of November 2015, Gangwal owned 16.89% of IndiGo, and the trust held 15.64%, highlighting the significant reduction in their combined holdings over time. Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co, and J.P. Morgan India Pvt are arranging the trade. Goldman Sachs declined to comment, while Gangwal, Morgan Stanley India, and J.P. Morgan India did not immediately respond to Mint's requests for comment. IndiGo's shares have gained about 18% over the past year, closing 1.76% lower at ₹ 5,420 per share on the BSE on Monday. Gangwal has been gradually reducing his stake in the airline following a settlement agreement with co-founder Rahul Bhatia. He sold a 5.83% stake on 29 August 2024, after offloading an identical stake on 11 April 2024. IndiGo reported a 62% surge in profit in the fourth quarter ended March, driven by a spike in air travel during the Mahakumbh festival in January and February. In its recent earnings call, the company said it has damp-leased six Boeing 737 widebody aircraft to support international expansion, with one already deployed on the Delhi–Bangkok route. The airline is also betting on cargo revenue as a major growth opportunity. Management noted that India currently accounts for a single-digit share of international air cargo, indicating significant upside potential. 'Indigo has a sturdy footing in its domestic business while enjoying over 60% market share. While covering over 89 destinations, the company has access to key ground slots at all prime airports,' Axis Securities said in a 16 April report. The brokerage said the low-cost airline can benefit from better infrastructural spending at current key airports and further spending on building new airports at freshly recognised key micro markets.
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Business Standard
4 days ago
- Business
- Business Standard
IndiGo shares slip 3% after block trade; check likely seller here
Shares of InterGlobe Aviation dropped over 3 per cent on Tuesday after 2.26 crore shares changed hands at the market open. India's largest airline, IndiGo stock fell as much as 3.5 per cent during the day to ₹5,230 per share, the lowest level since May 8 this year. The stock pared losses to trade 2 per cent lower at ₹5,314 apiece, compared to a 0.74 per cent decline in Nifty50 as of 9:35 AM. Shares of the company fell for the second straight day, and have fallen by 7 per cent from its all-time high, which it hit earlier this month. The counter has risen 16.5 per cent this year, compared to a 5 per cent advance in the benchmark Nifty50. IndiGo has a total market capitalisation of ₹2.05 trillion. IndiGo block deal About 2.26 crore shares, or 5.80 per cent equity, changed hands for ₹11,928 crore on Tuesday, according to reports. The trade happened at the price of ₹5,260.5, lower than the previous day's close. Buyers and sellers were not known immediately. Business Standard earlier reported that promoter Rakesh Gangwal will divest about 3.4 per cent stake in IndiGo for ₹6,831 crore, as part of his long-term plan to gradually reduce stake. The floor price for the transaction had been set at ₹5,175 per share, nearly 4.6 per cent below the last closing price of ₹5,424. Currently, Gangwal and his related entities hold a 13.53 per cent stake in IndiGo. Investment banking firms Goldman Sachs (India) Securities, Morgan Stanley India Company and J P Morgan India are said to be the placement agents for the stake sale Also Read In August last year, Gangwal and his family trust sold a 5.83 per cent stake for about ₹10,500 crore. In March 2024, he offloaded another 6 per cent for ₹6,786 crore. In 2023, his wife Shobha Gangwal sold 3 per cent in August for ₹2,802 crore, and his family a 4 per cent stake for ₹2,900 crore in February. IndiGo Q4FY25 results This was driven by a surge in travel demand during the Mahakumbh in Prayagraj, an extended wedding season, a sharp reduction in the number of grounded aircraft over the last few quarters, and effective cost control.
Mint
4 days ago
- Business
- Mint
IndiGo's promoter Rakesh Gangwal to sell $803 mn stake
IndiGo co-founder and promoter Rakesh Gangwal is expected to sell shares worth $803 million in the airline in a block deal on 27 May, according to the term sheet. Gangwal and his Chinkerpoo Family Trust are expected to offload 13.2 million shares or 3.4% stake at an offer price of ₹ 5,175 per share in InterGlobe Aviation Ltd, which runs India's largest carrier, said the term sheet reviewed by Mint. That's a 4.5% discount to its Monday close price of ₹ 5,418.3 apiece on the BSE. As on 30 March, Gangwal had a 5.3% stake in the aviation company, while the Chinkerpoo Family Trust owned 8.23% in the company, according to data on BSE. As of November 2015, Gangwal owned 16.89% of IndiGo, while the trust held 15.64%. Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co, and J.P. Morgan India Pvt are arranging the trade. JP Morgan declined to comment. Queries emailed to Gangwal, and the two other bankers remained unanswered at the time of publishing. InterGlobe Aviation's shares closed 1.76% lower at ₹ 5,424 crore on the NSE. Since January, the shares have gained 18% in the past year. Gangwal has been reducing his ownership in the company following a settlement agreement with Rahul Bhatia, with whom he founded the airline. Gangwal sold a 5.83% stake in the airline on 29 August 2024, after offloading 5.83% on 11 April 2024. IndiGo's profit surged 62% in the fourth quarter ended March, driven by a spike in air travel during the Mahakumbh in January-February. 'Indigo has a sturdy footing in its domestic business while enjoying over 60% market share. While covering over 89 destinations, the company has access to key ground slots at all prime airports,' Axis Securities said in a 16 April report. The brokerage said the low-cost airline can benefit from better infrastructural spending at current key airports and further spending on building new airports at freshly recognised key micro markets. The airline's recent orders for new A321XLR fleet will enable the company to cover long-haul destinations, enabling further coverage in European nations, Axis Securities said. 'These new deliveries expected by CY27 will further ramp up their transcontinental expansion potential and allow them to compete with other major global airlines.' The company said in its earnings call for the quarter ended March that to support its international expansion, IndiGo has damp-leased six Boeing 737 widebody aircraft, of which one has already been delivered and deployed on the Delhi–Bangkok route. The airline is banking on cargo revenue, which represents a major growth opportunity for Indian airlines, said the management. India currently has a single-digit share in international air cargo, which highlights a significant upside potential, it said.
