FY24 | Business Upturn

JLR reports stellar financial performance, raises FY24 EBIT margin guidance

Vanshika Lodhi — Fri, 03 Nov 2023 03:50:14 +0000

The company’s successful product portfolio and strong demand in key markets have driven the robust growth in revenue. Customers worldwide have well-received JLR’s diverse range of luxury vehicles, including the award-winning Jaguar XE and the popular Land Rover Discovery.

Jaguar Land Rover (JLR), the UK’s largest car manufacturer, has reported a significant increase in revenue for the fiscal year 2024. The company’s revenue has surged by 30.4% to reach £6.9 billion (approx 701 billion INR), marking a substantial improvement in its financial performance.

In light of the impressive financial results, JLR has raised its EBIT margin guidance for FY24 to 8%. This revised guidance reflects the company’s confidence in its business strategy and its ability to deliver sustainable profitability.

JLR’s strong financial performance comes at a time when the global automotive industry is grappling with challenges such as supply chain disruptions and semiconductor shortages. Despite these headwinds, JLR has managed to deliver solid results, demonstrating the resilience of its business model.

The company’s focus on innovation and customer-centricity has played a crucial role in driving its financial success. JLR’s commitment to electrification, with plans to become net-zero by 2039, has also resonated with customers, further fuelling demand for its vehicles.

Can RBI achieve its FY24 GDP target? Here’s what economists say

News Desk — Sat, 10 Jun 2023 19:40:52 +0000

The rate-setting committee of the Reserve Bank of India (RBI), known as the Monetary Policy Committee (MPC), hasn’t surprised anyone by keeping its finger on the pause, keeping the policy repo rate at 6.5 percent, and sticking to its stance of withdrawal of accommodation. This indicates that the RBI believes there is still too much liquidity in the system, and that the central bank needs to keep it tight to check inflation.

In spite of this, several financial experts anticipated that the MPC would vote differently on the attitude, even if it didn’t change to neutral, since the inflation rate has been falling. “While the monetary policy committee might vote unanimously to keep rates unchanged, the decision to extend the stance could see a split as the doves would prefer to close the door on further tightening as inflation beats a retreat,” Radhika Rao, an economist at DBS Bank, said in a note dated June 5 that “while the committee might vote unanimously to keep rates unchanged, the decision to extend the stance could see a split.”
A neutral position will suggest that the RBI can increase, stop, or cut at a future stage, as prompted by the data and transmission delays, an economist from Deutsche Bank AG named Kaushik Das told Bloomberg. “A neutral stance will signal that the RBI can hike, pause, or cut at a future stage.”

Why not just be impartial?
Following a series of incremental increases in the repo rate over the course of almost an entire year, the MPC decided to put a hold on further rate increases at their meeting in April. Jayanth Varma, who is one of the most vociferous rate-setters in the group, raised doubts on this matter, despite the fact that five of the organization’s members had chosen to continue concentrating on the withdrawal of housing. Nothing has changed in that regard. The same five members voted once again to stay focused on removal of accommodation in order to ensure that inflation gradually matches the objective while supporting growth. Varma once again raised misgivings on this aspect of the resolution.

A change in posture would have heightened expectations of a pivot in the near future, but it does not seem probable that there will be a rate decrease anytime soon given the unpredictable influence that weather may have on food prices. According to Rao of DBS Bank, the action taken by central banks across the world demonstrates vigilance on inflation as well as financial stability threats. This is in response to the Australian meteorological bureau’s decision to increase the likelihood of an El Nino event occurring.

Here’s how Bank of India plans to use total capital of Rs. 6,500 crore it will soon raise

News Desk — Tue, 18 Apr 2023 19:25:42 +0000

On Tuesday, the Bank of India (BOI) gave its approval for an increase in total capital for FY24 that may reach up to 6,500 crore rupees.

According to a statement with the stock market, the bank intends to raise a total of Rs 4,500 crore, of which Rs 2,000 crore would be in the form of equity capital.

This is to inform you that the Board of Directors of the Bank at their meeting held on 18th April 2023, among other things considered and approved the raising of capital for the FY 2023-24 aggregating up to Rs.6,500 crores in the following manner: In accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 read in conjunction with Schedule III, Part A, this is to inform you that the Bank has been granted permission to raise capital for the FY 2023-24. a. via the issuance of new equity capital in the form of a follow-on public offering (FPO), qualified institutional placement (QIP), rights offering (Rights Issue), or preferential offering; and/or via the issuance of Basel III compliant Additional Tier-1 (AT-1) bonds (in domestic and foreign currency) up to a value of Rs.4,500 crores. b. Through the issuance of Basel III-compliant Tier-2 bonds for a maximum sum of 2,000 billion rupees.

BOI has a capital adequacy ratio of 15.6 percent, with a common equity tier-1 capital of 12.77%, including a capital conversation buffer. BOI has nearly 5,000 branches throughout India. Up to the 31st of December, the bank recorded a solid rise in the amount of credit of 16.08 percent annually.

During the third quarter of the last fiscal year, BoI raised a total of Rs 1,500 crore in the capital by issuing extra tier-1 bonds.

World Bank holds India as one of the fastest growing economies, predicting its GDP growth to climb 6.3% in FY24

News Desk — Tue, 04 Apr 2023 10:44:16 +0000

In its assessment of global economic prospects, which was issued on Tuesday, the World Bank predicted that India will see a current account deficit of 5.2% and a rise of 6.3% in GDP. According to the findings of the research, “due to contraction in expenditure on the basis of slower income, it is expected that India’s GDP growth would decelerate to 6.3 percent in FY24.” Even if there are some signs that growth is slowing down, the economy of India is nevertheless resilient, as stated in the flagship report that is published every two years by the World Bank.

On the other hand, in spite of significant challenges posed by the international environment, the study found that India is one of the world’s only economies that is growing at the quickest rate in the entire globe. The study conducted by the World Bank indicates that India’s overall growth is still robust and is anticipated to be 6.9% for the whole year, with a real GDP expanding 7.7% year over year during the first three quarters of the fiscal year 2022–2023.

In the financial year 2024, it is anticipated that the current account deficit would amount to 5.2% of GDP. According to the study, the annual rate of retail inflation in India would decrease to 5.2 percent in FY24 from its current level of 6.6 percent. “The primary factor that contributed to growth was robust domestic demand, which was bolstered by robust consumer spending among higher-income groups as well as better governmental investment.” According to the findings of the study, despite this fact, the rise of low-income groups’ consumer expenditure trailed behind that of their income.

According to the annual book published by the World Bank, it is projected that slower consumer growth and challenging external conditions would place limits on the economic expansion of the Indian nation. According to the research, the withdrawal of financial aid measures connected to the pandemic is anticipated to result in an increase in borrowing rates as well as a slower rise in revenue.