Latest news with #VarunGupta
Time of India
a day ago
- Business
- Time of India
Defence stocks have legs well beyond current market cycle: Groww AMC CEO Varun Gupta
Indian investors are showing a new level of maturity, embracing market volatility and shifting steadily toward long-term, goal-based investing. In an interview with ETMarkets, Varun Gupta , CEO of Groww Asset Management, discusses the rise of SIPs, the growing appeal of passive and thematic funds, and why defence isn't just a tactical play but a structural story with strong legs. Edited excerpts from a chat: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Tan An Hoi: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo SIP flows have remained remarkably resilient despite global volatility. What's your read on the psychology of the Indian retail investor right now? Are we seeing a structural shift in behaviour? We're certainly witnessing a structural shift in investor behaviour. The resilience of SIP flows amid global volatility reflects a growing maturity among Indian retail investors. There's a deeper understanding now that equity, despite short-term swings, is a powerful tool for long-term wealth creation. Volatility is no longer seen as a threat but as a feature of the market and investors are increasingly embracing mutual funds as an accessible, diversified route to participate in equity markets. Passive funds have seen strong traction. Where do you see smart beta and sectoral ETFs fitting into retail portfolios? Are these still underappreciated in India? Passive investing is gaining strong ground in India. Investors now recognize that passive strategies offer low-cost, diversified exposure — not just to broad markets but also to specific themes and sectors. Smart beta and sectoral ETFs are also beginning to find their place in retail portfolios. While still underappreciated relative to global markets, interest is rising fast — evidenced by the increasing number of smart beta fund launches. In fact, our recent smart beta NFOs have seen encouraging traction, signaling growing retail appetite for such nuanced strategies. Live Events With so many passive products now in the market, what role does product innovation play in differentiating offerings? What's your take on balancing simplicity versus sophistication for the average investor? Product innovation plays a critical role in standing out in an increasingly crowded passive space. At our end, we focus on identifying emerging themes and gaps in the market to create structured investment tools where few options currently exist. While some investors prefer straightforward products to get started, others look for more nuanced strategies. Our approach is to offer a thoughtful suite of solutions that caters to both ends of the spectrum, ensuring every investor finds something aligned to their needs and level of experience. Defence as a theme has suddenly caught fire in investor portfolios. Is this a case of tactical play, or do you believe defence has legs as a long-term structural story? While defence has certainly attracted attention as a tactical theme, we believe it's a structural story in the making. With strong government support, improving financials of domestic players, and significant strides in indigenous technology, the sector is poised for long-term growth. The momentum may have brought it into the spotlight, but the fundamentals suggest it has legs well beyond the current market cycle. What are the risks of thematic concentration in portfolios, especially when flows seem to chase recent outperformers? How do you approach this from a fund strategy standpoint? Thematic investing can be powerful, but concentrated exposure always carries risk — especially when flows chase recent outperformers without considering long-term fundamentals. From a strategy standpoint, while we do consider investor interest, we only launch thematic funds where we see strong, long-term structural drivers. We avoid riding short-term trends that lack staying power. For us, it's about building products that align with enduring shifts in the economy, not fleeting market momentum. Additionally, we believe as thematic products grow in number and complexity, the role of financial advisors becomes even more important — helping investors navigate these options, assess suitability, and maintain a balanced portfolio aligned with their long-term goals. There's a lot of noise around geopolitical tensions and their impact on global supply chains. How are these dynamics shaping your global macro outlook and sector preferences? Geopolitical tensions and recent tariff actions have certainly added to global uncertainty. Amidst this, we believe India stands out with strong structural drivers and relative resilience. We've positioned our portfolios to focus on domestic themes that are less exposed to external shocks. We're constructive on sectors that benefit directly from India's growth story, as we see the country well-placed to navigate — and even benefit from — evolving global dynamics. Amid rising valuations in certain pockets, how are you balancing risk and return while allocating across sectors? In our active portfolios, we follow a disciplined QGaRP philosophy to balance risk and return. This approach blends quality and growth but always invests through the lens of valuation — ensuring we don't overpay, even for strong stories. Especially in an environment with rising valuations in select pockets, we remain highly conscious of the risk-reward equation and maintain a sharp focus on portfolio construction that's both resilient and opportunity-driven. How do you see the mutual fund industry evolving over the next few years—especially with new players, fee compression, and increased retail awareness? The mutual fund industry is clearly evolving, driven by rising retail awareness and the entry of new players. We believe this growing participation is a healthy sign of deepening market maturity. In fact, we're a beneficiary of this trend. As penetration increases, we believe the overall pie will expand — creating space for better products, more innovation, and stronger investor outcomes. While fee compression is a reality, it also pushes the industry to become more efficient and value-driven, ultimately benefiting both investors and the ecosystem at large. Importantly, as more products and players enter the market, we believe the role of financial advisors will become even more critical. They will continue to play a key role in decluttering information, helping investors make sense of an increasingly complex landscape, and guiding them toward informed, goal-based decisions.
Time of India
23-05-2025
- Business
- Time of India
In-depth: Satco-telco partnerships to unlock new revenue streams, expand 5G to India's remote regions
NEW DELHI: India's telecom landscape is undergoing a significant transformation with the emergence of satellite broadband as a complementary connectivity solution to terrestrial networks. Traditionally dominated by mobile and fiber networks, the industry is witnessing growing collaboration between telecom operators and satellite communication ( satcom ) providers, driven by the need to extend high-speed internet access to remote and underserved regions where terrestrial infrastructure remains limited or unviable. Global satcom players like Elon Musk's SpaceX, and Eutelsat OneWeb are entering the Indian market through strategic partnerships with leading Indian telecom players such as Reliance Jio and Bharti Airtel , to foray into regions in the country that are either unpenetrated or underpenetrated by broadband services. Notably, Bharti Enterprises holds a stake in the global satellite company Eutelsat OneWeb. Other contenders in India's satellite communication space include Amazon's Project Kuiper, Reliance Jio-SES, and Apple partner Globalstar . These alliances are expected to foster hybrid network models integrating terrestrial and satellite technologies, potentially reshaping the broadband ecosystem and accelerating the rollout of 5G and other advanced services. The partnerships are also expected to unlock new business opportunities for the sector. The joint working of telecom carriers and satcom providers could support strategic co-existence, driven by increasing association around hybrid network architectures. This synergy could give rise to vertically integrated satellite-terrestrial solutions, redefining connectivity paradigms and challenging conventional broadband delivery models, according to experts. 'This will allow Starlink to navigate regulatory and localisation hurdles more efficiently by leveraging the telcos' existing infrastructure, manufacturing ecosystems and distribution networks,' said Varun Gupta, senior analyst, Counterpoint Research. He added that integrating Starlink's LEO network with their mobile networks could pave the way for Jio and Airtel to unlock new revenue streams in enterprise, government, and remote connectivity segments while also minimising satellite deployment capex through shared infrastructure. The integration of satellite broadband into the telco ecosystem represents a strategic advancement towards a more connected and inclusive digital future, and the collaborative approach not only broadens the reach of broadband services but also drives innovation and growth within the industry. 'Satellite-based broadband services are not positioned to displace traditional networks but to enhance them by extending coverage and adding capacity, particularly in underserved and remote areas of India.'said Purushothaman KG, partner and head - technology transformation & telecom, KPMG in India. Rural broadband and enterprise services are among the sectors that could see some level of competition between telcos and satcos, with both eyeing cash potential. Satcom, however, would be better suited for use cases such as remote backhaul, maritime and aviation connectivity, energy and mining operations, and disaster recovery. Telcos can leverage LEO satellite capacity for high-throughput, low-latency backhaul and network resilience, especially in geographies where terrestrial deployment is challenging and not economically feasible, Gupta added. Globally, too, the partnerships between the two sectors are increasingly becoming common, particularly in markets such as France, Spain, Australia and Thailand. Most recently, billionaire Elon Musk's Starlink has started its satellite internet service in India's neighbouring country, Bangladesh, with two broadband packages – Starlink Residence and Residence Lite – priced at 6,000 taka ($47) and 4,200 taka ($33) per month, respectively. This, in addition to a one-time cost of 47,000 taka ($372) to set-up the necessary equipment. Satellite Backhaul: Complement to 5G Services Satellite communication is also emerging as a critical backhaul alternative for extending 5G coverage in rural and remote areas. Rather than replacing terrestrial infrastructure, satellites, particularly Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) systems, will complement fiber and microwave links by filling coverage gaps. LEO/MEO satellites offer lower latency and higher throughput than traditional satellite systems, making IP-based 5G backhaul viable for service-critical use cases such as disaster recovery, border security and remote tower connectivity. However, their higher cost per Mbps limits widespread deployment, confining usage to areas where terrestrial solutions are infeasible. While unsuitable for mass backhaul, satellite integration is pivotal for last-mile connectivity in off-grid or difficult terrains. This blend of satellite and terrestrial networks is key to realising a truly 'inclusive and resilient digital infrastructure in India', Purushothaman said. Way Forward These partnerships between telcos and satellite firms are not merely transactional but strategic and will enable telcos to secure satellite capacity and provide satellite operators with vital market access. This co-existence strategy is a testament to the industry's forward-thinking approach and the collaborative approach not only broadens the reach of broadband services but also drives innovation and growth. However, the mass adoption of satellite broadband is unlikely in the next two years, as mobile broadband still dominates the market. 'By the end of 2030, satellite broadband will likely remain limited to difficult terrains and hard-to-reach areas, while the majority of the population will be served by fiber and FWA networks,' Gupta said. He concluded that the growing demand for digital services in sectors including education, healthcare, and government initiatives will drive satcom adoption in underserved areas, while land-based networks will continue to be the primary connectivity medium for scenarios that need broader coverage. Indian telecom regulator TRAI has recently released its regulations for the administrative allocation of satellite spectrum. Communications Minister Jyotiraditya Scindia on Tuesday said that India's satellite network rollout will be among the fastest globally, mirroring the rapid deployment of 5G in the country. He said the current $2.3 billion satcom market could grow nearly tenfold to $20 billion by 2028. 'This kind of growth—almost 10x in just three years—is unmatched anywhere else in the world,' Scindia said.- The Space economy is projected to reach $44 billion by 2033, increasing its global market share from 2% to 8%, according to the Indian National Space Promotion and Authorization Center (IN-SPACe). Starlink recently received a Letter of Intent (LoI) from the Department of Telecommunications (DoT) for a satellite communication license. It now awaits final approvals from the space regulator and spectrum allocation to begin services. Meanwhile, Bharti-backed Eutelsat OneWeb and Jio-SES have secured all regulatory clearances and are now waiting for spectrum allotment to commence commercial satellite broadband operations.
Time of India
20-05-2025
- Business
- Time of India
Smartwatch boom cools off in 2025
Smartwatch shipments in India have declined for five consecutive quarters, dropping 33% year-on-year in Q1 2025. The industry is shifting from budget devices to premium features, with fewer new models being launched. Experts predict a correction year, focusing on the ₹5,000-10,000 price segment, expecting a slight shipment growth by year-end after a significant drop in 2024. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Smartwatches, once among the fastest growing consumer electronics segments, are now finding fewer takers in India. Shipments fell for the fifth consecutive quarter by 33% on-year in the January-March period, amid a shift from volume-driven sales of budget devices to a focus on premium quarter also saw a decline in the number of active brands in the segment and new models trackers said 2025 will be a year of correction for the industry where brands will focus on higher-end price segments to fuel growth. Shipments are expected to grow 2% on-year by the end of the year, after declining 34.4% on-year in top brands, launches have gone down from around five to six new models per quarter last year to an average of two to three models in Q1 2025, Counterpoint Research research firm said the overall installed base relative to smartphone users, estimated to be around 15-20%, has not changed significantly since last contribution of the sub-₹5,000 budget segment to overall shipments fell from 95% in Q1 2024 to 91% in Q1 2025, with the premium segment seeing sharper growth. The ₹5,000-10,000 price segment is emerging as the area of focus, which grew 17% on-year in Q1, in what is being seen as a year of correction for the industry, said Anshika Jain, research analyst, Counterpoint Research."Organic consumer demand and search queries have gone down for smartwatches. The attach ratio has peaked and is no longer increasing. The repeat purchase ratio is also much lower compared to products like TWS (truly wireless stereo) earbuds," Varun Gupta, co-founder, Boult Audio, told ET.
Time of India
26-04-2025
- Business
- Time of India
Boult Audio's net profit declines by 37 pc in FY24, revenue up 41 pc
New Delhi: Boult Audio , the bootstrapped consumer electronics brand, has reported a 37 per cent drop in its net profit to Rs 2.5 crore for the fiscal year 2023-24 (FY24), compared to Rs 4 crore in FY23. The Delhi-based company, which designs and manufactures wireless earbuds , headphones, smartwatches, and speakers, saw its revenue from operations increase to Rs 697 crore in FY24 from Rs 498 crore in the previous fiscal, as per its financials. Boult also made Rs 5 crore from non-operating revenue, bringing its total revenue to Rs 702 crore. However, the rising expenses, particularly in materials, advertising, and post-supply discounts, outpaced the revenue growth . Boult's cost of material consumed surged by 25 per cent to Rs 402 crore, making up nearly 58 per cent of its total expenses. Advertising expenses jumped by 74 per cent to Rs 162 crore, and post-supply discounts saw an 84 per cent increase to Rs 70 crore, as per an Entrackr report. As a result of these rising costs, Boult's overall expenses climbed by 41 per cent to Rs 699 crore in FY24, according to its financials. This increase in operational costs significantly impacted the company's bottom line, leading to a sharp decline in its net profit. The company's domestic sales saw a growth of 45 per cent, reaching Rs 620 crore, while international sales remained stable at Rs 77 crore, contributing 11 per cent to the total revenue. However, unlike its competitors, Boult has maintained its bootstrapped status and is led by co-founders Varun Gupta and Tarun Gupta, who own a combined 49.5 per cent stake in the company. According to industry experts, while the company is making efforts to build its brand and prepare for high-volume sales, the growing competition in the consumer electronics market and the rising cost pressures have made it difficult for Boult to maintain profitability.
Hans India
25-04-2025
- Business
- Hans India
Boult Audio's net profit declines by 37 pc in FY24, revenue up 41 pc
New Delhi: Boult Audio, the bootstrapped consumer electronics brand, has reported a 37 per cent drop in its net profit to Rs 2.5 crore for the fiscal year 2023-24 (FY24), compared to Rs 4 crore in FY23. The Delhi-based company, which designs and manufactures wireless earbuds, headphones, smartwatches, and speakers, saw its revenue from operations increase to Rs 697 crore in FY24 from Rs 498 crore in the previous fiscal, as per its financials. Boult also made Rs 5 crore from non-operating revenue, bringing its total revenue to Rs 702 crore. However, the rising expenses, particularly in materials, advertising, and post-supply discounts, outpaced the revenue growth. Boult's cost of material consumed surged by 25 per cent to Rs 402 crore, making up nearly 58 per cent of its total expenses. Advertising expenses jumped by 74 per cent to Rs 162 crore, and post-supply discounts saw an 84 per cent increase to Rs 70 crore, as per an Entrackr report. As a result of these rising costs, Boult's overall expenses climbed by 41 per cent to Rs 699 crore in FY24, according to its financials. This increase in operational costs significantly impacted the company's bottom line, leading to a sharp decline in its net profit. The company's domestic sales saw a growth of 45 per cent, reaching Rs 620 crore, while international sales remained stable at Rs 77 crore, contributing 11 per cent to the total revenue. However, unlike its competitors, Boult has maintained its bootstrapped status and is led by co-founders Varun Gupta and Tarun Gupta, who own a combined 49.5 per cent stake in the company. According to industry experts, while the company is making efforts to build its brand and prepare for high-volume sales, the growing competition in the consumer electronics market and the rising cost pressures have made it difficult for Boult to maintain profitability.
