BUSINESS
Is it time to press the panic button on urban FMCG demand stress?
Rural demand may be recovering but its bigger counterpart in cities appears to be under pressure. What are the likely reasons and should investors be worried?
BUSINESS
What Zomato’s $1 billion fundraising plan means for the consumer market
A funding frenzy has gripped the Quick Commerce market but Zomato’s September quarter results show that scaling up comes with benefits
BUSINESS
DMart’s value proposition is getting trumped by Quick Commerce's convenience
A slowdown in like-for-like sales growth partly due to growth of online commerce in metros is a sign that DMart’s business model is due for another rejig
BUSINESS
Warm outlook for FMCG companies has suddenly turned a tad cold
Weather-related demand disruptions, rising input costs that are not being passed on due to competition, a risk of sales growth and margins missing the target are some risks that have built up
BUSINESS
Has the outlook for steel companies turned brighter?
China’s steady drip of stimulus measures has led to iron ore prices rising by nearly 23 percent in a week. Why that may be good news
BUSINESS
Even before China’s stimulus, the steel market may have started healing itself
While China’s monetary measures are more substantial than earlier ones, falling steel output in the largest steel producer may have already begun trimming surplus output
BUSINESS
Strengthening of group audits should benefit investors
When consolidated financials are more material than standalone financials, the audit quality of group entities gains importance. The accounting regulator is seeking to reform how that’s done
BUSINESS
Chart of the Day: Will higher duties curb edible oil imports?
Farmers and processors may be the intended beneficiaries of the duty hikes but it comes at a cost given there isn’t sufficient domestic output to support demand
BUSINESS
FMCG margins to gain from lower costs, but sales growth faces a big risk
Commodity prices remaining stable or soft is what FMCG majors would like, when material costs decline sharply there’s an acute risk of smaller players stealing a march over the bigger ones
BUSINESS
Mario Draghi’s recommendations to strengthen CBAM pose a risk to domestic metal producers
A part of his report on improving the EU’s economic competitiveness deals with the Carbon Border Adjustment Mechanism, identifying risks in the design for EU producers and then recommending changes that could hurt exporters such as India
BUSINESS
The policy twists that lie in wait for investors in sugar mills
A new sugar control order is in the making, even as the govt has removed caps on sugar diversion for ethanol in the new season but is it all hunky-dory?
BUSINESS
Chart of the Day: Kirana’s FMCG channel share is steady in 2024, so where’s the threat?
Overall market share appears stable but the real story lies in other metrics such as growth within online shopping, and the number of shopping trips and spend per trip
BUSINESS
Chart of the Day | Imports playing bigger role in domestic aluminium consumption
Between FY19 and FY24, the share of imports in domestic aluminium consumption has stepped up and even within imports the share of non-scrap aluminium has risen
BUSINESS
Retrospective effect of SC mining judgement casts shadow over companies’ earnings
Affected metal and mining companies should come forward to report their estimated liability, so that investors get clarity on the expected hit, both from retrospective and prospective liabilities
BUSINESS
Chart of the Day | Will ethanol deliver for sugar mills in FY25?
Initial estimates point to a slight cut in the sugarcane output. The government too appears to be signalling mills to diversify into alternate feedstocks for ethanol, perhaps, a sign of times to come
BUSINESS
India’s steel producers are caught between China and a hard place
China’s weak economy is pressuring iron ore prices and in turn depressing global steel prices and instead of cutting output its steel producers are exporting more, thereby turning the heat on Indian steel producers
BUSINESS
ITC’s cigarettes business helps it sail through rough seas
As the company’s FMCG business faces rough weather due to a heatwave and the general malaise in consumption, the cigarettes business lends a shoulder to sales and profit growth
BUSINESS
SC judgement allowing states to tax mineral rights poses risk to industry
States' ability to tax mineral rights is likely to see costs for miners and user industries increase, but much depends on whether the impact can be absorbed or will be ruinous for margins
BUSINESS
Chart of the Day | Corporate Tax Rates: Old 30 percent tax rate is giving the new 22 percent rate a run for its money
While the new lower 22 percent tax rate still accounts for more than half of corporate income offered to tax, its share has fallen. The 30 percent tax gained ground with income under this tax rate rising by 60 percent, twice that of the 22 percent tax rate
BUSINESS
No major consumption boost in Budget, but Street remains optimistic
The Budget 2024 did not contain measures that could directly benefit consumer demand, preferring to invest in building blocks that could lead to future consumption opportunities
BUSINESS
Rural Consumption: Where are the gaps, asks Economic Survey 2023-24
The key takeaway from the Survey about rural consumption is that it is doing as well as it can and the main efforts should be focused on providing the masses with the right infrastructure, business opportunities, diversifying away from problem areas and encouraging more private investment in agriculture
BUSINESS
What Asian Paints' results say about its tryst with competition
The paint major’s volume sales growth disappointed and margins shrank, but competition was not to blame, said its management. The festival season should give more robust answers to how it is faring in the face of competition
BUSINESS
The value from Patanjali Foods’ acquisition of promoter business lies in the future
While Patanjali Foods will turn into a more complete FMCG company post-acquisition, the transaction structure involving a royalty and slower market growth implies the gains will not be instant
BUSINESS
Moneycontrol Pro Panorama | China’s shadow on global manufacturing refuses to shorten
In today’s edition of Pro Panorama: New Budget’s priorities, China hand in inflation, rains playing a cat and mouse game, road ahead for Indian bonds, and more
