Latest news with #NuvamaResearch
Mint
16 hours ago
- Business
- Mint
Realty firms are on a high after last year's spending spree to buy land
Listed residential real estate companies are focusing on increasing their capital expenditure (capex) towards acquiring new land parcels. On an aggregate basis, developers utilised around 35% of their sales and pre-sales collections on land-related capex in 2024-25—the highest in recent years, showed an analysis by Nuvama Research. A combination of favourable factors is giving realty firms the financial muscle to aggressively invest in land acquisitions, including healthy collections for most developers. Aggregate collections and operating cash flows were up 24% year-on-year each in FY25, showed Nuvama data. Also, realtors were on a fund-raising spree during FY25, garnering over Rs22,000 crore through qualified institutional placements (QIPs) and rights issues. Plus, deleveraging efforts have made their balance sheets leaner, giving more legroom for expansions. Investing in new land parcels is crucial for project launches, which, in turn, is required to drive growth in pre-sales or bookings. In FY25, many realty projects faced delays in launches due to approval-related challenges, including key geographies such as the Mumbai Metropolitan Region, the National Capital Region, and Bengaluru. Central and state elections during FY25 added to approval delays. However, latest management commentaries suggest this problem is gradually easing. Despite RBI's rate cut, demand remains a worry For FY26, except for DLF Ltd, key listed realty developers have guided for double-digit pre-sales growth of 18-22% and have robust launch pipelines. The combined launch pipeline of nine listed developers under the coverage of Kotak Institutional Equities is around 140 million up 30% year-on-year, with a potential gross development value of ₹1.7 trillion, indicating investments in land-related capex are likely to stay elevated. While realty companies are making all the right moves to buoy supply, concerns linger on demand moderation, which may impact absorption of new housing units and pre-sales. In the past year, the Nifty Realty index has declined by 4% versus the benchmark Nifty 50's nearly 8% rise. The Reserve Bank of India's latest 50 basis points cut in repo rate is sentimentally positive for the real estate sector. It is expected to translate into cheaper home loan rates, boosting demand for the beleaguered affordable housing segment. But post the covid-19 pandemic, many realty companies have increased focus on premium and luxury housing offerings where demand is relatively less sensitive to interest rates movements. So, meeting FY26 pre-sales targets on a high base and timely launches remain the key upside triggers for realty stocks.
India Gazette
20 hours ago
- Business
- India Gazette
Indian companies profit growth slows in FY25, capex weakens amid soft demand: Nuvama
Mumbai (Maharashtra) [India], June 9 (ANI): The profit growth of Indian companies slowed down in the financial year 2024-25, as soft demand, weak top-line performance, and slowing capital expenditure weighed on overall corporate performance, says a report by Nuvama Research. According to the report, the aggregate profit after tax (PAT) for companies in the BSE500 index (excluding Oil Marketing Companies) grew just 10 per cent year-on-year in Q4FY25, and 9 per cent for the full FY25, down from a stronger 21 per cent growth recorded in FY24. The report said 'Q4FY25 PAT growth for BSE500 (ex-OMCs) rose to 10 per cent YoY (Q3FY25: 8 per cent), though top line stayed weak, due to cost rationalisation (wage bill growth just 5 per cent) and a low base'. In Q4FY25, profits grew 10 per cent from the same quarter last year, slightly better than the 8 per cent growth seen in Q3FY25. This was achieved mainly through cost-cutting measures, including a modest 5 per cent growth in wage bills, and the benefit of a low base. While sectors like metals, telecom, chemicals, and cement posted improved profits, segments such as public sector banks and industrials, which had led growth in FY24, saw a slowdown. The report also pointed out a significant drop in capital expenditure (capex) growth. Despite strong operating cash flows, India Inc's capex grew just 6 per cent in the second half of FY25, compared to 20 per cent growth seen in FY23 and FY24. While this cautious approach might be seen as positive from a governance and valuation standpoint, it also reflects weak demand conditions and may pose risks to future earnings. Mid- and small-cap (SMID) companies, which had underperformed large-cap companies for most of FY25, showed some profit recovery in Q4FY25, supported by cost control and a low base. However, for the full year, their performance aligned more closely with large caps, after outperforming them in FY24. The report described FY25 as a 'year of reconciliation' where several trends from FY24 moderated. Profits, revenues, and capex all grew by around 8-10 per cent, returning to pre-COVID trends. Looking ahead, the outlook for FY26 remains uncertain. The report noted that earnings estimates for FY26 have been downgraded by 2 per cent, and one-year forward earnings per share (EPS) projections have stagnated, similar to trends seen before the pandemic. Nuvama said the Street currently expects 15 per cent earnings CAGR for FY25-27, but flagged downside risks due to weak demand, slowing credit growth, corporate cost-cutting, and uncertain export conditions. In summary, FY25 marked a slowdown for India Inc, with all major financial indicators reconciling with a subdued top-line performance, and the outlook for FY26 remains cautious. (ANI)
Time of India
a day ago
- Business
- Time of India
Indian companies profit growth slows in FY25, capex weakens amid soft demand: Nuvama
The profit growth of Indian companies slowed down in the financial year 2024-25, as soft demand, weak top-line performance, and slowing capital expenditure weighed on overall corporate performance, says a report by Nuvama Research . According to the report, the aggregate profit after tax (PAT) for companies in the BSE500 index (excluding Oil Marketing Companies) grew just 10 per cent year-on-year in Q4FY25, and 9 per cent for the full FY25, down from a stronger 21 per cent growth recorded in FY24. The report said "Q4FY25 PAT growth for BSE500 (ex-OMCs) rose to 10 per cent YoY (Q3FY25: 8 per cent), though top line stayed weak, due to cost rationalisation (wage bill growth just 5 per cent) and a low base". Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo In Q4FY25, profits grew 10 per cent from the same quarter last year, slightly better than the 8 per cent growth seen in Q3FY25. This was achieved mainly through cost-cutting measures, including a modest 5 per cent growth in wage bills, and the benefit of a low base. While sectors like metals, telecom, chemicals, and cement posted improved profits, segments such as public sector banks and industrials, which had led growth in FY24, saw a slowdown. Live Events The report also pointed out a significant drop in capital expenditure (capex) growth. Despite strong operating cash flows, India Inc's capex grew just 6 per cent in the second half of FY25, compared to 20 per cent growth seen in FY23 and FY24. While this cautious approach might be seen as positive from a governance and valuation standpoint, it also reflects weak demand conditions and may pose risks to future earnings. Mid- and small-cap (SMID) companies, which had underperformed large-cap companies for most of FY25, showed some profit recovery in Q4FY25, supported by cost control and a low base. However, for the full year, their performance aligned more closely with large caps, after outperforming them in FY24. The report described FY25 as a "year of reconciliation" where several trends from FY24 moderated. Profits, revenues, and capex all grew by around 8-10 per cent, returning to pre-COVID trends. Looking ahead, the outlook for FY26 remains uncertain. The report noted that earnings estimates for FY26 have been downgraded by 2 per cent, and one-year forward earnings per share (EPS) projections have stagnated, similar to trends seen before the pandemic. Nuvama said the Street currently expects 15 per cent earnings CAGR for FY25-27, but flagged downside risks due to weak demand, slowing credit growth, corporate cost-cutting, and uncertain export conditions. In summary, FY25 marked a slowdown for India Inc, with all major financial indicators reconciling with a subdued top-line performance, and the outlook for FY26 remains cautious.
India Gazette
7 days ago
- Business
- India Gazette
Housing registration in Mumbai decline 4% YoY, mortgage rate cut likely to improve sales: Report
Mumbai (Maharashtra) [India], June 3 (ANI): The house registrations in Mumbai decline 4 per cent YoY in May and down 12 per cent MoM to 11,565 units, says a report by Nuvama Research. According to report, despite the decline in the number of registrations, the total value of registrations rose 3 per cent YoY to Rs 177 billion. On a monthly basis, the registration value dropped 5 per cent. In the first five months of 2025 (January to May), Mumbai recorded 61,461 housing unit registrations, which is 6 per cent higher compared to the same period last year. By value, registrations rose 17 per cent YoY to Rs 949 billion. The average ticket size of the registered properties also increased 11 per cent YoY to Rs 14.7 million. In Maharashtra, the number of property registrations in May 2025 stood at 148,080 units. This is a 2 per cent decline YoY but a 2 per cent increase compared to April 2025. The report also said that 80 per cent of the total registrations in Mumbai were residential properties. Compact homes, those below 1,000 square feet, continued to dominate the market. Among these, homes sized between 500 and 1,000 square feet were the most preferred, accounting for about 44 per cent of all registrations. Larger homes, those above 1,000 square feet, made up 17 per cent of total registrations in May 2025, compared to 15 per cent in May 2024. This share remained flat on a monthly basis. The report also highlighted that the central and western suburbs were the most active areas, contributing to 87 per cent of the total registrations during the month. The report noted a 1 per cent YoY increase in the share of registrations from central and south Mumbai. This indicates a rise in demand for premium homes in these areas, likely due to new project launches and ongoing infrastructure development. Highlighting the outlook of the sector the report added that 'A robust launch trajectory and mortgage rate cut are likely to improve sales in Mumbai going ahead'. Overall, year-to-date registrations in 2025 stood at 64,461 units, up 6 per cent YoY. Looking ahead, the report said that a strong pipeline of upcoming housing projects and a possible reduction in mortgage rates could lead to better sales in Mumbai in the coming months. (ANI)
Time of India
7 days ago
- Business
- Time of India
Mumbai home registrations decline 4% annually in May despite rise in property values: Report
The house registrations in Mumbai decline 4 per cent YoY in May and down 12 per cent MoM to 11,565 units, says a report by Nuvama Research . According to report, despite the decline in the number of registrations, the total value of registrations rose 3 per cent YoY to Rs 177 billion. On a monthly basis, the registration value dropped 5 per cent. In the first five months of 2025 (January to May), Mumbai recorded 61,461 housing unit registrations, which is 6 per cent higher compared to the same period last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Chi phí cấy ghép răng là bao nhiêu vào năm 2025 (kiểm tra giá) Cấy ghép răng | Quảng cáo tìm kiếm Tìm hiểu thêm Undo By value, registrations rose 17 per cent YoY to Rs 949 billion. The average ticket size of the registered properties also increased 11 per cent YoY to Rs 14.7 million. In Maharashtra , the number of property registrations in May 2025 stood at 148,080 units. This is a 2 per cent decline YoY but a 2 per cent increase compared to April 2025. Live Events Also Read: Mumbai property stamp duty collection hits May record high led by luxury sales The report also said that 80 per cent of the total registrations in Mumbai were residential properties. Compact homes, those below 1,000 square feet, continued to dominate the market. Among these, homes sized between 500 and 1,000 square feet were the most preferred, accounting for about 44 per cent of all registrations. Larger homes, those above 1,000 square feet, made up 17 per cent of total registrations in May 2025, compared to 15 per cent in May 2024. This share remained flat on a monthly basis. The report also highlighted that the central and western suburbs were the most active areas, contributing to 87 per cent of the total registrations during the month. The report noted a 1 per cent YoY increase in the share of registrations from central and south Mumbai. This indicates a rise in demand for premium homes in these areas, likely due to new project launches and ongoing infrastructure development. Also Read: Mumbai emerges as a global data center hub, ranking 6th in under-construction capacity Highlighting the outlook of the sector the report added that "A robust launch trajectory and mortgage rate cut are likely to improve sales in Mumbai going ahead". Overall, year-to-date registrations in 2025 stood at 64,461 units, up 6 per cent YoY. Looking ahead, the report said that a strong pipeline of upcoming housing projects and a possible reduction in mortgage rates could lead to better sales in Mumbai in the coming months.
