UK Restaurants and Bars Cut Hours as costs Soar by £3.4 Billion
Restaurants and bars across Britain are having to slash staff working hours to cushion the blow of a £3.4 billion ($4.3 billion) spike in annual costs, according to the head of the sector’s trade body. Key Points
mintStartups talk up funding winter, but loosen their purse strings
During the ongoing funding winter, several internet majors such as Paytm, Policybazaar parent PB Fintech, Flipkart failedd to control expenses in FY23. Horizontal omnichannel retailers such as Nykaa, Mamaearth parent Honasa Consumer and FirstCry also saw both employee expenses and marketing costs rise anywhere between 23% to 55% during FY23. Key Points
Economic TimesTech firms’ temp worker costs dip as demand falls
Tata Consultancy Services, Infosys, HCL Technologies, and Wipro have all seen a decrease in sub-contractor expenses as a percentage of revenue, signaling improved profitability. These costs had surged during the pandemic but have now fallen below or near pre-outbreak levels. Key Points
mintA cost-benefit analysis can help us make New Year's resolutions that’ll be kept
It is advisable to break goals into doable chunks and estimate marginal differences. The opportunity cost of a resolution is also important to work out. Key Points
mintET analysis: Surging corporate profits to help ease Reserve Bank's inflation fight
Indian companies have lately boosted margins from the 2020 trough, but volumes have consistently trailed the exponential growth in operating profitability. India's corporate profits to gross domestic product (GDP) ratio, which had fallen to below 2.5% toward the end of the last decade on deteriorating bank assets and higher input costs, has since recovered to near 4%. That's still about a quarter below the levels seen before the 2008 global financial crisis. Key Points
Economic Times
Indian battery maker Eveready posts rise in Q2 profit on lower costs
Battery maker Eveready Industries India (ERDY.NS) on Tuesday reported a more than 72% rise in second-quarter profit, helped by diminishing costs. Key Points
ReutersGlobal supply-chain pressure hits record low, NY Fed gauge shows
The NY Fed gauge has clocked negative readings for nine consecutive months. In October, the Fed bank's global supply chain pressure index fell to -1.74. Key Points
Economic TimesUS employers to see biggest healthcare cost jump in a decade in 2024
U.S. employers are bracing for the largest increase in health insurance costs in a decade next year, according forecasts from healthcare consultants, but workers may be somewhat spared this time around in a tight labor market. Key Points
ReutersFMCG companies make pack sizes bigger as inflation cools
Fast-moving consumer goods (FMCG) firms that reduced pack sizes last year in an attempt to absorb rising costs are putting back grammage as input prices fall. The price of refined sunflower oil, palmolien and soya bean oil have all dropped around 20%-25% over the past 12 months, while packaging costs have similarly declined. Brands that had shrunk packages without reducing prices are putting back weight, particularly for the most popular price points of ₹10, ₹20 and ₹25 Key Points
Economic TimesIndia's Ramco Cements misses Q1 profit view as costs outweigh demand
India's Ramco Cements (TRCE.NS) on Monday missed first-quarter profit estimates, as mounting costs outpaced resilient demand. Key Points
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Western car makers look to slash EV costs to fight Chinese 'invasion'
Western automakers are fretting about an "invasion" of cheap Chinese electric cars in Europe, prompting France's Renault (RENA.PA) to say on Thursday it was aiming to slash production costs for its electric models by 40%. Key Points
ReutersTata Motors to hike prices of its passenger vehicles by an average 0.6% from 17 July
Tata Motors had announced price hikes of 1.2% in January and 0.6% in April, citing increased input costs and regulatory changes, respectively. Key Points
ThePrintFinancial services co Eureka Group acquires four stock broking firms, in talks with 2-3 entities
Kolkata, Jul 1 (PTI) Financial services company Eureka Group has acquired four stock broking firms and is in talks with two-three such entities as the brokerage industry is experiencing “consolidation” with rising compliance costs and shrinking margins, an official said. Any broker with less than 5,000-7,000 active clients will find their business unviable, he said. […] Key Points
ThePrintVodafone Idea disconnects some retail partners to save on costs
According to industry estimates, Vi has a pan-India network of 4-5 lakh retail touch points, like its peers Bharti Airtel and Reliance Jio. Majority of the retailers are multi-brand operators, which means they offer services for all the telecom firms. A few thousands are exclusive retailers of Vi, including some company-operated retail stores. Key Points
Economic TimesRBI must pause repo rate hike, more hikes will hit housing demand, real estate sector, says CREDAI
CREDAI stated that another hike by the RBI will lead to even higher borrowing costs for developers. This would further lead to even higher costs of projects and housing prices will rise too, with the prices already increasing by 5-6 per cent in the last one year. Key Points
Financialexpress
Centre moves Delhi HC challenging foreign arbitration award to Vedanta Ltd
In August last year, Vedanta Ltd won the arbitration against a demand for a higher payout from its prolific Rajasthan oil and gas fields after disallowance of Rs 9,545 crore (USD 1.16 billion) in certain costs incurred. Key Points
Business TodayBlinkit quarterly contribution margin turns positive first time ever
For Blinkit, contribution counts as revenue minus costs like store operation expenses, delivery costs, wastage and packaging costs, among other things. The firm retained its earlier guidance of breaking even in the quick commerce business by the first quarter of FY25. Key Points
Economic TimesTop Stocks: 5 stocks with high operating leverage and upside potential of up to 32%
Operating leverage defines the relationship between sales revenue and costs (fixed and variable). A firm with a high operating leverage can generate bigger operating profits through incremental sales. The degree of operating leverage (DOL) is a statistic that is employed to determine the magnitude of operating leverage. ET Wealth tried to identify companies whose DOL was higher than their respective industry’s median operating leverage in each of the last two financial years. As the domestic demand continues to remain buoyant, companies with higher proportion of fixed costs to variable costs are likely to deliver good returns. Key Points
Economic TimesGap Inc posts surprise profit, shares jump 16% after hours
U.S. companies are starting to see some relief from sky-high costs of freight and manufacturing after years of supply-chain snags. Key Points
FinancialexpressJindal Steel Q3 results: Profit jumps four-fold as lower costs offset weak sales
Jindal Steel's consolidated net profit after tax increased to ₹1,928 crore ($232 million) in the three months to Dec. 31, from ₹5.18 crore a year ago Key Points
mint
War, weather put ocean shippers on notice for rough seas in 2024
This is seemingly the new normal - these waves of chaos that seem to rise and fall. Before you get back to some level of normalcy another event happens that sort of throws things out of whack, said Jay Foreman, CEO of Florida-based Basic Fun, who sends toys from factories in China to Europe and the United States. Key Points
Economic TimesJindal Steel Q3 profit jumps as lower costs offset weak sales
India Business News: Read about Jindal Steel's robust Q3 performance as lower costs offset weak sales. Find out how the company's net profit increased and its sales revenue fell. Key Points
Times Of IndiaCNG prices hiked by Re 1 in Delhi-NCR from today. Check new rates
In Delhi, the price of CNG has been revised from Rs 74.59 per kg to Rs 75.59 per kg. In Noida, the revised rate is Rs 81.20 per kg, and Greater Noida is 80.20 per kg. Key Points
India TodayIndia's Arvind Q2 profit falls as textiles drag despite low costs
Indian textiles and leather goods maker Arvind (ARVN.NS) on Tuesday reported a 36% fall in second-quarter profit, hurt by slow demand pickup in fabrics amidst inflationary pressure. Key Points
ReutersIndia's Apollo Tyres Q1 profit more than doubles on lower costs
India's Apollo Tyres (APLO.NS)reported a bigger-than-expected rise in quarterly profit on Thursday, boosted by lower rubber costs and strong domestic auto sales. Key Points
Reuters
India's Tata Communications posts 30% slump in profit as expenses weigh
Indian network services provider Tata Communications (TATA.NS) reported a 30% slump in first-quarter profit on Wednesday, hit by higher interest costs and lower foreign exchange gains. Key Points
ReutersQ4 tepid for speciality chemical firms as cocktail of factors play spoilsport
Input cost moderation and a reduction in energy and fuel costs could offer some respite for margins. Likewise, ebbing logistics costs are expected to lend support. However, agri-input companies might encounter volume and margin hurdles in Q1FY24 due to high inventory that still requires liquidation Key Points
mintIndia’s manufacturing PMI hits highest level since October 2020 in May
The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to a 31-month high of 58.7 in May, with factory orders rising at the fastest clip since January 2021 and producers accumulating inputs at an unprecedented pace thanks to lower costs. Key Points
The HinduTN Petro Q4 net dips by 58% on input costs, global uncertainty
Tamilnadu Petroproducts Ltd., (TPL) reported a 58% contraction in its stand alone net profit over the year earlier period to ₹10 crore on account of escalating input costs and global uncertainty. Key Points
The HinduRed Sea crisis could spike inflation & lower growth, but other routes have own issues, says govt
Sectors like fertilisers, oil, auto, chemicals, textiles & metals could be further affected, it warns in monthly report. Diversifying trade routes could lower competitiveness of exports. Key Points
ThePrint
More Indians may spend New Year holidays abroad
Tour and travel companies such as Thomas Cook, SOTC and EaseMyTrip have seen up to 30% uptick in demand for short-haul international routes compared to last year. Packages for many of these destinations are comparable with those for popular domestic spots, as some countries are actively wooing Indian travellers with visa-free entry and by nudging airlines to offer easy connectivity at affordable rates. Key Points
Economic TimesUS 30-year mortgage rate plunges by most in nearly 16 months - MBA
The interest rate on the most common type of U.S. residential mortgage plunged last week by the most in nearly 16 months on the back of a rally in the Treasury market that drove down the benchmark yields used to set home loan costs. Key Points
ReutersIndia's Pidilite Industries posts Q1 profit rise on strong demand, easing costs
India's Pidilite Industries (PIDI.NS), maker of adhesive brand Fevicol, reported a more than 32% rise in first-quarter profit on Thursday, aided by strong demand and reduced input costs. Key Points
ReutersOne can accumulate ACC, but run-up mostly over; IT to take a backseat: Chakri Lokapriya
TCG AMC's CIO&MD, Chakri Lokapriya, predicts lower mortgage costs and reduced working capital costs for real estate developers if the interest rates trend down later this year. He advises being cautious around FMCG stocks like Nestle and keeping a watchful eye on RVNL, which recently had a government OFS fully subscribed. Despite a recent correction from uncertainty surrounding Adani holdings, Lokapriya says one could potentially accumulate shares in ACC. Key Points
Economic TimesIndia's Akzo Nobel Q2 profit rises on lower raw material costs
Akzo Nobel India (AKZO.NS) reported a 44% rise in second-quarter profit on Thursday, helped by a drop in raw material costs. Key Points
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India's SBI Card misses Q1 profit view on high credit costs, margin pressure
India's second-largest credit card issuer SBI Cards and Payment Services (SBIC.NS) on Friday reported a slide in first-quarter profit as elevated credit costs and margin compression offset growth in revenue. Key Points
ReutersWhy the era of low-cost flights in Europe may be over
Environmental concerns are one of several factors driving up airfares. DW explores what's behind the price hikes. | Travel Key Points
Hindustan TimesEasing input costs to keep retail inflation contained, says Crisil
Retail prices are expected to increase at a slower pace than last year as an easing of input costs and slower-than-expected demand weigh on consumer inflation, according to a Crisil report. Wholesale prices, which are more amenable to global price pressures, may also remain low as global supply chain pressures ease, as per Crisil. Key Points
Economic TimesEnvironmental Damage Could Cost You a Fifth of Your Income Over the Next 25 Years
The world is already committed to warming that will undercut the global economy by 20 percent between now and 2050. That’s six times the price of limiting warming to 2 degrees Celsius. Key Points
WIREDCapital goods and fertilisers are most impacted by the Red Sea crisis: CRISIL
The Red Sea conflict has also impacted Middle Easts fertiliser exports to India. Shipment timelines have been extended by nearly a fortnight and hiked freight costs. “Import of the key fertiliser, muriate of potash (MOP), from Jordan and Israel has been majorly affected. Israel constitutes 10-15% of MOP exports to India, while Jordan constitutes 25-30%,” CRISIL said while adding that the Indian government has assured a sufficient buffer for fertilisers but MOP supplies from these countries will be affected if the situation persists for long. Key Points
Economic Times
Indian diesel floods to Asia as Houthis imperil flows to Europe
Shipments of diesel from India to Europe hit a 2-year low due to Houthi attacks, diverting cargoes to Asia. Higher freight costs and refinery maintenance in Asia shifted trade economics in favor of sending cargoes east. No imports of diesel in EU, only one in UK. Arrivals of diesel-type fuel from India to Asian destinations surged. Key Points
Economic TimesLet’s expand social security: Provident fund reforms are vital for India
A five-point agenda to fix the country’s PF scheme could shift 50 million people from informal to formal work. Let’s blend idealism with pragmatism. Key Points
mintIntel planning to layoff more than 200 people from December 31, here is everything we know
Intel has announced its fifth round of layoffs, affecting over 200 employees, as part of its cost-cutting efforts. The layoffs, scheduled to begin on December 31, are part of a broader strategy to reduce costs by USD 10 billion by 2025. Key Points
India TodayIndia's logistics cost declined to 7.8-8.9% of GDP in FY22: NCAER
India's logistics costs saw a dip during 2014-15 to 2016-17, from 8.3-9.4% to 7.8-8.8%, due to a faster growth in nominal GDP than in logistic costs, and a fall in fuel prices compared to the earlier period Key Points
mintMercedes-Benz India to hike prices from January 1
Price hike to range from Rs 60,000 for C-Class to Rs 2.6 lakh for GLS SUV. German luxury carmaker Mercedes-Benz on Wednesday said it will hike prices of select mo Key Points
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Fresenius cancels 2023 dividend, bonuses to retain state aid
German healthcare group Fresenius (FREG.DE) said on Tuesday it would not be allowed to make dividend and management bonus payments for 2023 because it decided to keep state aid it received to reduce high energy costs at its hospitals business. Key Points
ReutersI uprooted my life and took on financial burdens to care for my sick mom
She uprooted her life to care for her Mom. She wasn't expecting the costs of food, travel, and health aides when she decided to care for her sick mother full-time. Key Points
InsiderAustralian lender ANZ posts record annual profit amid high interest rates
Australia's third-largest lender ANZ Group Holdings (ANZ.AX) reported a record annual cash profit on Monday as it continued to manage costs while operating in a high-interest rate environment, leading to growth in both lending and deposits. Key Points
ReutersReuters NEXT Treasury's Adeyemo says 'far better' to see Russia buying tankers than tanks
U.S. Deputy Secretary Wally Adeyemo on Thursday said the Group of Seven-led coalition that imposed a price cap on Russian oil last December was shifting its focus from reducing Russian revenues to raising Moscow's cost of shipping its oil. Key Points
ReutersIndia's Hero MotoCorp Q2 profit beats expectations
India's Hero MotoCorp (HROM.NS) on Wednesday beat second-quarter profit expectations, as lower commodity costs and price hikes helped offset muted sales. Key Points
Reuters
10-year US Treasury yield tops 5% for first time since 2007
The run-up in yields on the 10-year Treasury bond, seen as a safe-haven in times of economic uncertainty and a benchmark for borrowing costs around the world, has been driven by investors pricing in stronger U.S. growth as well as fiscal slippage. Key Points
Economic TimesFresenius to assess whether state aid impacts bonus, dividend payouts
German healthcare group Fresenius (FREG.DE) said it was examining whether the state aid it received to help offset high energy costs at its hospitals business would bar it from making management bonus and dividend payments. Key Points
ReutersIndia's Delhivery says Q1 loss narrowed as demand rose, expenses fell
Indian logistics firm Delhivery (DELH.NS) on Friday reported a narrower quarterly loss helped by a rebound in demand for online shopping and lower operational costs. Key Points
ReutersPepsi India bottler Varun Beverages posts profit growth on steady volumes
Pepsi India bottler Varun Beverages (VARB.NS) on Thursday reported a 26.2% jump in its second-quarter profit, underpinned by improved product mix, a slide in input costs and higher volume growth. Key Points
Reuters