Month: January 2025

India’s private sector began 2025 on a slower growth trajectory as momentum in the services sector eased and the pace of new business intake softened. Overall output grew at its slowest rate since November 2023, according to an HSBC flash survey.

The latest HSBC Flash PMI data, compiled by S&P Global, highlighted a slowdown in the services sector that offset robust growth in manufacturing during the month. Meanwhile, prices for goods and services rose sharply in January due to mounting cost pressures.

The HSBC Flash India Composite Output Index, which tracks monthly changes in combined output from manufacturing and services, fell from 59.2 in December to 57.9 in January, marking the slowest expansion in 14 months.

Manufacturing gains, services slow down

India’s manufacturing sector outperformed expectations, with the HSBC Flash India Manufacturing PMI climbing from 56.4 in December to 58.0 in January, its strongest showing since July 2024. The index, a composite measure of new orders, output, employment, supplier delivery times, and inventory levels, indicated improved factory conditions. 

The HSBC Flash India Manufacturing PMI Output Index also rose to 60.3 in January, up from 59 in December.

In contrast, the services sector experienced a deceleration, with the HSBC Flash India Services PMI Business Activity Index declining from 59.3 in December to 56.8 in January.

“India’s manufacturing sector started the year strong, with output and new orders bouncing back from a relatively weak third fiscal quarter. The rise in new export orders was especially noticeable, and the easing of input cost inflation is also good news for manufacturers,” said Pranjul Bhandari, chief India economist at HSBC.

However, she cautioned, “The cooling in growth in new domestic business in the services sector, however, highlights a potentially emerging weak spot in the economy. New export business for service providers, on the other hand, looks set to maintain its growing momentum.”

Business confidence improved in January, buoyed by manufacturers’ highest optimism levels since May 2024. However, sentiment among service providers dipped to a three-month low amid concerns about rising competition, the survey noted.

Manufacturers ramped up input purchases, accelerating pre-production inventory growth as supplier delivery times improved. Conversely, stocks of finished goods dropped to their lowest level in nearly three years.

India aims to achieve a $10 trillion economy within the next decade, driven by an expanding manufacturing sector. Priority areas include semiconductors, electronics, electric vehicles, renewable energy, and defence.

To support this vision, the central government has significantly increased capital expenditure, focusing on infrastructure development, job creation, and manufacturing growth.

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Cab aggregating firms Ola and Uber on Friday denied the allegations of implementing a differential pricing model for their services that were availed through Android and Apple phones in India.

The denial comes a day after Centre slapped notices over allegations that Apple users were being charged higher prices for rides of similar distances on the mere ground that consumers using costlier smartphones have greater purchasing power and can pay more than people using Android phones.

Ola said they have clarified allegations against them to the Central Consumer Protection Authority (CCPA) and will further work with the consumer body “to clear any misunderstanding in this regard”.

“We have a homogenous pricing structure for all our customers, and we do not differentiate based on the operating system of the user’s cellphone for identical rides,” an Ola Consumer spokesperson told Reuters.

An Uber spokesperson told Reuters in a statement that the company does not set prices based on the rider’s phone manufacturer.

“We look forward to working with the CCPA to clear up any misunderstanding,” the spokesperson said.

Google and Apple have not responded to the allegations yet.

Union minister of consumer affairs Pralhad Joshi said on Thursday that the CCPA had issued notices to major cab aggregators demanding an explanation for user allegations.

The department of consumer affairs’ move aims to address consumer grievances and ensure fair practices by cab aggregators. The companies must now clarify the pricing mechanism and the factors influencing these fare variations.

The minister said the notice follows an earlier observation against such practices. Last month, Joshi termed differential pricing an “unfair trade practice” that is a “blatant disregard” of consumer rights.

Cab aggregating firms – Uber, SoftBank-backed Ola, Rapido, and all-electric ride-hailing app BluSmart are locked in fierce competition to gain market share in India, one of the largest cab aggregation business markets outside the United States and Canada.

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Interglobe Aviation Ltd., parent company of India’s largest airline by market share, IndiGo, reported an 18% year-on-year decline in its December quarter consolidated net profit at ₹2,449 crore as against ₹2,998 crore seen in the year-ago period. The airline posted a loss of ₹988 crore in the preceding September quarter.

The third quarter performance was driven by strong demand for air travel, continued growth, and lower fuel cost.

The airline’s revenue from operations rose 14% year-on-year to ₹22,111 crore, compared to ₹19,452 in the corresponding quarter of last year.

The topline number was higher than CNBC-TV18’s poll of 21,909 crore; however bottomline was below CNBC-TV18’s poll estimate of ₹3,152 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 0.7% year-on-year to ₹5,178.6 crore, which was higher than last year’s ₹5,143.6 crore.

EBITDA margin of 23.4% was lower than 26% on a year-on-year basis.

IndiGo slipped back into the red in the previous September quarter, reporting a loss of ₹987 crore even as its revenue climbed 14% YoY to ₹16,970 crore.

“We delivered a strong third quarter of financial year 2025, both operationally and financially. We reported a total income of ₹23,000 crore, reflecting a growth of 15% and profit excluding the impact of currency movement of ₹3,850 crore. Including currency impact, we reported a profit of ₹2,450 crore highlighting effective execution of our clear and well-defined strategy. These results were driven by robust demand in the market and our ability to cater to that demand supported by lower fuel prices,” said CEO Pieter Elbers.

The IndiGo CEO said the company touched new milestones as it operated a peak of 2,200 daily flights and served a record 31.1 million passengers during the quarter. “We will continue the growth path to offer our customers with options to conveniently fly to the destination of their choice,” he said.

Available Seat Kilometers (ASK), which measures an airline’s capacity to carry passengers, came in at 4,080 crore as against 3,650 crore, a growth of 12% on-year.

Revenue Passenger Kilometers (RPK), which measures the number of passengers carried by an airline, stood at 3,550 crore as against 3,130 crore, seeing a 13.5% on-year rise.

The airline’s load factor increased by 120 basis points to 86.9% in Q3FY25 compared to 85.8% in Q3FY24.

As of December 31, 2024, IndiGo had a total cash balance of ₹43,780.8 crore comprising ₹28,903.5 crore of free cash and ₹14,877 crore of restricted cash.

The capitalised operating lease liability was ₹49,593.7 crore. The total debt, including the capitalised operating lease liability, was ₹65,138.5 crore.

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Amber Enterprises shares jumped 6.9 per cent on Friday, logging an intraday high at Rs 7,249.95 per share. The buying interest at the counter came after the company swung to profit in Q3 from loss a year ago.  

Around 10:12 AM, Amber Enterprises share price was up 1.7 per cent at Rs 6,892.05 per share on BSE. In comparison, the BSE Sensex was down 0.14 per cent at 76,414.48. The market capitalisation of the company stood at Rs 23,311.33 crore. The 52-week high of the stock was at Rs 8,167.10 per share and the 52-week low was at Rs 2,991.2 per share. 

Amber Enterprises released its Q3 results on Thursday, after market hours, which showed that the company swung to a net profit of Rs 36 crore as compared to a loss of Rs 0.48 crore a year ago.  

The revenue of the company for the quarter under review stood at Rs 2,133 crore as compared to Rs 1,295 crore a year ago which implies a rise of 64.8 per cent year-on-year (Y-o-Y).  

As per the company’s filing, the operating Earnings before interest, tax, depreciation and amortisation (Ebitda) grew to Rs 162 crore, reflecting growth of 97 per cent Y-o-Y. 

Besides, consumer durable and electronic division clocked a quarterly revenue growth of 67 per cent and 96 per cent respectively over previous year.  

“We are pleased to report the robust financial performance for Q3FY25. The Consumer Durable division reported strong growth of 67 per cent Y-o-Y, led by the underlying RAC industry channel inventory filling in anticipation of positive summer season, and aided by deepening of the customer relationships,” said Jasbir Singh, executive chairman & CEO and whole time director, Amber Enterprises India. 

He added: The Railway Sub-systems and Defense division revenue witnessed a 13 per cent decline on a Y-o-Y basis in Q3FY25, impacted by deferral in the offtake of products. However, the delay in Indian Railways offtake is more momentary and with no cancellations of orders. 

“We remain optimistic for the strong growth trajectory of the division over long-term, backed by the order book and products expansion. Overall, with the key strategic initiatives in each division, we are well poised to attain new scale for the company,” Singh said. 

In the past one year, Amber Enterprises shares have gained 78.2 per cent against Sensex’s rise of 7.6 per cent. 

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IT company Cyient shares nosedived 19.99 per cent to hit a fresh 52-week low of Rs 1,402.25 per share on Friday, January 24, 2025. 

The fall in Cyient share price came after the company posted a weak set of results in the December quarter of financial year 2025 (Q3FY25). 

Cyient’s profit fell 31.7 per cent quarter-on-quarter (Q-o-Q) to Rs 122.3 crore in Q3FY25, from 179.1 crore in the September quarter of financial year 2025 (Q2FY25). 

Meanwhile, revenue from operations, rose 4.2 per cent Q-o-Q to Rs 1,926.4 crore in Q3FY25, from Rs 1,849.1 crore in Q2FY25.

Operating performance was weak too. Earning before interest, tax, depreciation and amortisation (Ebitda) dropped 14.4 per cent sequentially to Rs 279 crore in Q3FY25, from Rs 296.7 crore in Q2FY25.

Subsequently, Ebitda margin squeezed 250 basis points (bps) to 14.5 per cent in Q3FY25, from 16 per cent in Q2FY25.  

In Y-o-Y terms, Cyient’s profit dropped 16.9 per cent to Rs 122.3 crore in Q3FY25, from Rs 147.2 crore ion Q3FY24.  

Its revenue from operations rose 5.8 per cent Y-o-Y to Rs 1,926.4 crore in Q3FY25, from Rs 1,821.4 crore.

Operationally, Ebitda slipped 14.4 per cent Y-o-Y to Rs 279 crore, from Rs 326.1 crore in the same quarter a year ago. 

Therefore, margin also contracted 340 bps to 14.5 per cent in Q3FY25, from 17.9 per cent in Q3FY24.  

Analysts at Nuvama have cut FY25E/26E earnings per share (EPS) sharply by -10.8 per cent/-4.5 per cent on lower growth and margins.  

“We are updating FY26E/27E USDINR assumption to 86.5 and rolling over to 20x FY27E PE, yielding a target price (TP) of Rs 1,660 (earlier Rs 1,700); retain ‘Hold’,” Nuvama said in a note. 

About Cyient

Cyient, founded in 1991, is a global engineering and technology company. The company offers a broad range of services across engineering, manufacturing, data analytics, and digital technology, assisting businesses in various industries to design, build, operate, and maintain their products.  

With a focus on innovation, Cyient supports its customers in areas such as network transformation, clean energy, and geospatial data improvement, helping them navigate complex challenges and accelerate their growth. 

Serving over 300 customers worldwide, including 30 per cent of the top 100 global innovators, Cyient has built a diverse portfolio across multiple sectors. The company operates through specialised business units, including aerospace & defense, transportation, industrial & energy, healthcare, and telecommunications. 

Additionally, Cyient’s design-led manufacturing (Cyient DLM) division ensures high-quality production processes, further boosting its ability to meet the evolving needs of its global clientele. 

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