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Time of India
2 days 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.
Time of India
24-04-2025
- Business
- Time of India
Sugar industry slams centre over stagnant ethanol prices
Pilibhit: The Indian sugar industry has voiced frustration over the Centre's failure to revise ethanol prices in line with the cabinet-approved formula that links rates to the annually updated Fair and Remunerative Price (FRP) of sugarcane. Since 2014-15, ethanol prices for sugarcane juice and B-heavy molasses had been aligned with FRP—a mechanism reaffirmed by the cabinet for the 2022-23 ethanol supply year. Under the model, Oil Marketing Companies (OMCs) were expected to reflect ethanol price changes in retail fuel prices to ensure transparency. However, industry bodies say this formula has been ignored in 2023-24 and 2024-25. Despite an 11.5% hike in FRP—from Rs 305 to Rs 340 per quintal—ethanol prices remained unchanged. With FRP expected to rise to Rs 355 in 2025-26, producers are left uncertain about future pricing. "This disconnect is discouraging for ethanol producers," said Deepak Ballani, Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). "Despite the govt's target of 30% ethanol blending by 2030, stagnant prices are eroding industry confidence." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo Prices of ethanol derived from sugarcane juice have remained fixed at Rs 65.6 per litre, and B-heavy molasses-based ethanol at Rs 60.7, since 2023-24. Meanwhile, ethanol from maize is priced significantly higher at Rs 71.8 per litre—despite comparable quality—further frustrating sugar producers. The gap has contributed to a sharp fall in sugar diversion for ethanol production , dropping from 38 lakh tons in 2022-23 to 21.5 lakh tons in 2023-24. "The sugar industry has invested nearly Rs 40,000 crore to double its distillation capacity to 850 crore litres annually," Ballani said. "But without price revisions, this growth is unsustainable." He added that restoring a structured pricing mechanism would not only stabilise the sector but also strengthen India's renewable energy efforts and help cut fuel imports.
Express Tribune
16-02-2025
- Business
- Express Tribune
Consumers deprived of full relief on petroleum prices
Listen to article The government has adjusted transport charges and margins for oil companies, partially offsetting the relief in petroleum product prices announced earlier, Express News reported. Due to these changes, consumers lost Rs 1.42 per litre in petrol relief and Rs 0.50 per litre in diesel relief. According to official documents, freight charges on petrol increased by Rs 1.42 per litre, raising the total freight cost to Rs 5.79 per litre from the previously set Rs 4.37 on February 1. The petroleum levy on petrol remains unchanged at Rs 60 per litre, while the Oil Marketing Companies (OMC) margin remains at Rs 7.87 per litre. Similarly, dealer margins on petrol remain fixed at Rs 8.64 per litre. For high-speed diesel, freight charges and additional margins have also been raised. Freight charges on diesel rose by Rs 0.27 per litre, increasing from Rs 2.65 to Rs 2.92 per litre, while the extra margin on diesel was raised by Rs 0.23 per litre. The adjustments come a day after the government announced a reduction in petroleum prices, cutting petrol prices by Rs 1 per litre and high-speed diesel by Rs 4 per litre.
