Morning Buzz: Akasa plans to list by end of decade, IT firms give campus hiring a miss, and more
Here are the top business headlines this morning to get your day started
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Second quarter profit numbers soar, revenue growth lags
The profit numbers for companies that have declared results so far are up 21.8 percent year on year, even as sales numbers rose 13.6 percent. The points to demand being weak is a phenomenon that is more pronounced for consumer companies. The strongest growth in revenue and profits was seen among banking and finance companies. IT also reported a slowdown.(Business Standard, Financial Express, Economic Times)
IT firms give campus hiring a miss
IT companies are giving the ongoing placement season a miss and may look at visiting campuses only in the Jan-March quarter. One of the reasons for this is that the 2023 batch is still available for placement. Wipro is still taking people it had tried to hire from the class of 2023, while Infosys has said it plans to avoid campus hiring and review the situation every quarter.(Business Standard)
Akasa plans to list by the end of the decade
Akasa, which recently received permission to fly internationally, plans to place a three-digit aircraft order soon as well as list by the end of the decade. The company has 20 planes at present and has placed an order for 76 Boeing 737 MAX, which it expects to join the fleet by 2027. Once the company has enough operational history, it expects to join Indigo and SpiceJet on the bourses, according to chief executive Vinay Dube.(Business Standard, Financial Express, Business Line)
Urban FMCG sales pick up even as rural sales continue in the slow lane
According to Nielsen data, urban volume growth in the second quarter of this fiscal year exceeded rural volume growth by 200-300 bps. This growth could also be under stress if crude and commodity prices rise and if rural crops don’t deliver in the kharif season. During the Q2 results, companies that are more dependent on rural India – Hindustan Unilever (HUL) and Dabur saw sales drag while Nestle, which has a lot of its sales coming from urban India, did well.(Economic Times, Financial Express)
