India’s AI Revolution: Sam Altman Praises Progress, Predicts Major Cost Cuts in AI Development

OpenAI CEO Envisions India Leading AI Revolution

During a visit to New Delhi, OpenAI’s CEO Sam Altman enthusiastically endorsed India’s growing momentum in artificial intelligence (AI) development, expressing confidence that India will emerge as a key player in the AI revolution.

His remarks highlight India’s substantial progress in adopting and advancing AI technologies, with OpenAI itself tripling its user base in India within the past year.

He believes that although developing AI models remains expensive, significant strides have been made in distillation technologies, which allow for the training of AI systems with less hardware.

As the AI landscape continues to evolve, it’s becoming an exciting space, with several best AI-related stocks gaining traction in February.

AI in India: Rising Concerns Over Data Privacy in Government Use

The Ministry of Finance has issued a directive prohibiting its employees from using AI tools like ChatGPT and DeepSeek on government devices, citing concerns over potential data privacy risks.

The memo, which was circulated to all departments last month, underscores the dangers these AI applications pose to confidential government data. This move follows similar steps taken by other countries like Australia and Italy, which have raised alarms over privacy breaches related to AI usage.

How Will AI Training Costs Evolve?

The cost of training AI models remains a significant challenge, with OpenAI’s CEO Sam Altman acknowledging that it’s still an expensive endeavour. However, Altman pointed out the incredible progress made with distillation technologies, which allow for more efficient model training with fewer resources.

Despite the high costs of reasoning models, he believes that the advancements in distillation will lead to a surge in creative AI applications. Altman also believes that in the future, the cost of training AI models could decrease by as much as ten times over the next year.

This projection is expected to have a major impact on the global AI market, especially in comparison to platforms like China’s DeepSeek, which has raised concerns in the tech industry due to its low-cost offerings.

Will DeepSeek’s Success Impact OpenAI?

OpenAI has launched a new initiative called The Stargate Project, with plans to invest a massive $500 billion over the next 4 years to develop new AI infrastructure in the United States.

In contrast, China’s DeepSeek made waves in the AI sector last month by releasing an open-source AI platform that competes with ChatGPT.

Remarkably, DeepSeek claims to have developed the platform with just a $6 million investment. The platform’s rise has been swift, overtaking ChatGPT as the most downloaded free app on Apple’s App Store, leaving the US tech industry in awe of how an AI service with such a minimal investment could achieve such success.

This shift highlights the rapid evolution and potential disruption in the AI space.

Conclusion

As AI technology continues to evolve, the global landscape is shifting rapidly. OpenAI’s bold investments in infrastructure, particularly through projects like The Stargate Project, signal a major commitment to maintaining leadership in the AI space. At the same time, India’s growing role in AI development, paired with advancements in distillation technologies, suggests the country could become a major player in shaping the future of artificial intelligence.

However, the rise of cost-effective competitors like DeepSeek, coupled with concerns over privacy risks, will undoubtedly drive further innovation and competition. The coming years will likely witness an accelerating pace of AI breakthroughs, with significant implications for both market leaders and emerging players.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Top Gainers and Losers on February 07, 2025: Tata Steel, Bharti Airtel Shine

On February 7, 2025, the Indian stock market benchmark index BSE and the Nifty closed in the red. The BSE Sensex was down by 0.25% closing at 77,860.19, while the Nifty50 was down by 0.18% at 23,559.95. Among sectors, the Nifty FMCG and Nifty PSU BANK indices saw a fall of more than 1%.

Top Gainers of the Day

Symbol LTP % Change Volume
TATASTEEL 138.16 4.24 5,29,50,146
ITCHOTELS 178.53 3.73 4,95,05,080
BHARTIARTL 1678 3.6 1,48,73,255
JSWSTEEL 980.2 3.35 28,46,285
TRENT 5440 3.09 28,46,965

  • Tata Steel

Tata Steel witnessed a significant rally today, closing at ₹138.16, up by ₹5.62 or 4.24% from its previous close of ₹132.54. The stock opened at ₹133.30 and saw a high of ₹138.75 during the day, reflecting strong buying interest. The low point of the session was ₹132.56.

  • ITC Hotels

ITC Hotels saw positive movement in today’s session, closing at ₹178.53, marking a gain of ₹6.42 or 3.73% from its prior close of ₹172.11. The stock opened at ₹172.88 and reached an intraday high of ₹178.99. The low of the day was ₹168.00, but ITC Hotels recovered strongly

  • Bharti Airtel

Bharti Airtel had a strong day in the market, finishing at ₹1,678.00, a gain of ₹58.25 or 3.60%. The stock opened at ₹1,635.05 and hit a high of ₹1,707.55. It announced a remarkable 505% surge in its consolidated net profit, reaching ₹14,781 crore for the third quarter (Q3).

  • JSW Steel

JSW Steel also saw a positive price movement, ending the day at ₹980.20, a rise of ₹31.80 or 3.35%. The stock opened at ₹950.95, reached an intraday high of ₹985.00, and touched a low of ₹947.80.

  • Trent

Trent Limited had a steady upward trajectory throughout the day, closing at ₹5,440, a gain of ₹162.90 or 3.09%. The stock opened at ₹5,321.40 and reached a high of ₹5,517.75. The fashion and lifestyle leader posted a 33% year-on-year increase in consolidated net profit for Q3 FY25, amounting to ₹497 crore, up from ₹374 crore last year.

Top Losers of the Day

Symbol LTP % Change Volume
ITC 430.1 -2.49 1,88,75,982
SBIN 736.4 -2.11 3,72,40,692
BRITANNIA 4872 -1.7 7,01,024
ADANIPORTS 1145.55 -1.59 40,79,540
TCS 4032 -1.24 15,48,940

  • ITC

ITC‘s stock price declined by ₹11.00 (2.49%) to close at ₹430.10. The stock started the day at ₹440 and reached a high of ₹445.50, but faced downward pressure as it hit a low of ₹428.40. ITC Ltd. saw a decline of 7.27% in its consolidated net profit for the December quarter, reporting ₹5,013.16 crore.

  • SBI

SBI‘s shares witnessed a drop of ₹15.85 (2.11%) to end the day at ₹736.40. The stock opened at ₹759.80 and peaked at ₹759.90, but faced downward momentum throughout the session, reaching a low of ₹731.75.

  • Britannia

Britannia’s stock saw a decrease of ₹84.05 (1.70%), closing at ₹4,872. The stock opened at ₹5,010 and reached a high of ₹5,075.40, but it slid down to a low of ₹4,844 before settling lower.

  • Adani Ports

Adani Ports experienced a decline of ₹18.50 (1.59%), closing at ₹1,145.55. The stock opened at ₹1,160.00 and touched a high of ₹1,175.65 but lost momentum, dropping to a low of ₹1,132.80 by the close.

  • TCS

TCS‘s stock ended the day at ₹4,032, down by ₹50.75 (1.24%). The stock opened at ₹4,090, reached a high of ₹4,090, but faced selling pressure, ultimately falling to a low of ₹4,008.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

USD/INR: Rupee Poised for Weekly Losses? Key Market Movers to Watch Next Week

The Indian Rupee is expected to register weekly losses, driven by Trump tariff concerns. However, as of 3:15 PM on February 7, 2025, the rupee gained some respite, with the USD/INR pair trading at 87.378, down 0.24% against its previous close. The pair has been on a rising trajectory throughout the week but managed to snap a 4-session gaining streak today.

Tariff Threats Keep Asian Currencies Under Pressure

The potential imposition of tariffs, particularly by President Donald Trump, is continuing to affect investor sentiment, diminishing risk appetite in the market. Bank of Canada Governor Tiff Macklem highlighted the growing uncertainty caused by US policy shifts, noting that Trump’s tariff threats were already taking a toll on businesses and households.

On Monday, Trump agreed to temporarily pause a 25% tariff on nearly all imports from Canada and Mexico, which could have otherwise triggered severe economic consequences, including recession and rising prices.

FIIs Turn Net Sellers

On February 6, Foreign Institutional Investors (FIIs) turned net sellers of Indian equities, disposing of equities worth ₹3,550 crore, while Domestic Institutional Investors (DIIs) maintained their buying momentum, net purchasing ₹2,721 crore.

This shift occurred after FIIs had been net buyers for the first time in 23 consecutive sessions of net selling. Year-to-date, FIIs have net sold ₹96,993 crore, whereas DIIs have net bought ₹93,408 crore worth of shares.

Key Events for Next Week February 10-14, 2025

1. Federal Reserve Chairman Jerome Powell’s Testimony

  • Date: February 11, 2025.
  • Event: Powell will testify before the Senate Banking Committee, marking his first appearance before lawmakers since July.

 

2. PM Modi’s Meeting with President Trump

  • Date: February 11, 2025.
  • Event: As per news reports, PM Modi is invited to meet with US President Trump. Discussions may include trade tariffs, especially on India’s high tariffs on US products.

 

3. India – Inflation Data Releases 

  • Date: February 12, 2025.
  • Event: India to release January CPI and Industrial production data.

 

4. India – Trade Balance

  • Date: February 14, 2025.
  • Event: India to release January Trade Balance data.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Union Budget 2025: Sets the Stage for India’s Energy Future with Key Power Sector Reforms

The Union Budget 2025-26 marks a transformative milestone for India’s power sector, with significant reforms aimed at driving growth and ensuring sustainable, resilient energy. Key initiatives focus on strengthening nuclear energy infrastructure, reducing reliance on conventional power sources, and boosting electric vehicle manufacturing.

Power Sector Reforms for Sustainable Growth

Union Minister Shri Manohar Lal highlighted the Union Budget’s focus on improving the financial and operational stability of electricity distribution companies. The budget also promotes intra-state transmission capacity, aiming to enhance the efficiency and reliability of India’s power sector.

The budget prioritises nuclear energy, with a vision to develop 100 GW of nuclear power by 2047. The allocation of ₹20,000 crores for research on Small Modular Reactors (SMRs) and the goal of operationalizing five indigenously developed SMRs by 2033 will reduce dependence on conventional energy sources.

Support for Electric Vehicle Manufacturing

The budget proposes customs duty exemptions on critical minerals like lithium-ion batteries, lead, and zinc. This move aims to secure material supply for battery manufacturing, promote job creation, and boost India’s electric vehicle sector by adding 35 new capital goods to the exemption list.

Key Highlights of Union Budget for India’s Energy Sector

The Union Budget 2025-26 has allocated ₹20,000 crore for research and development in Small Modular Reactors (SMRs), a significant step towards advancing nuclear energy technology in India.

The country has set a target to develop 100 GW of nuclear power by 2047, with the goal of operationalising at least five indigenously developed SMRs by 2033.

Additionally, the budget supports the electric vehicle (EV) sector by exempting 35 additional capital goods for EV battery manufacturing, fostering the growth of clean transportation solutions and further strengthening India’s transition to sustainable energy.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NTPC Green Energy Shares in Focus; Partners With Andhra Pradesh for JV

NTPC Green Energy Limited has formed a joint venture, AP NGEL Harit Amrit Ltd, with the Andhra Pradesh government. The 50:50 venture will focus on renewable energy, green hydrogen production, and hydro projects.

New Joint Venture to Drive Renewable Energy Projects

NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, has successfully incorporated a new joint venture company named AP NGEL Harit Amrit Limited, the company said in a press release on the stock exchange.

The new entity is formed as a 50:50 partnership between NTPC Green Energy Limited and the New & Renewable Energy Development Corporation of Andhra Pradesh Limited, a government undertaking of the Andhra Pradesh government.

The primary focus of the new joint venture will be to explore and develop renewable energy projects, including solar, wind, and hybrid energy systems, with or without storage, up to a capacity of 25 GW.

Additionally, the company aims to produce 0.5 MMTPA of green hydrogen and develop green derivatives like green ammonia and green methanol. It will also work on the development of pumped hydro projects with up to a 10 GW capacity in identified locations across the state.

Approval Secured for Renewable Energy JV

The company has received necessary approvals from the Ministry of Power (MOP), Govt. of India, which, through its letter, communicated the concurrence of DIPAM and NITI Aayog regarding the formation of this joint venture.

The incorporation will see NGEL holding a 50% share in the company. As part of the deal, NGEL has subscribed to 50,000 equity shares at a face value of ₹10 each, contributing cash consideration for equity share capital.

This venture marks a significant step in advancing India’s renewable energy and green hydrogen ambitions, reinforcing NTPC’s commitment to sustainable energy solutions.

Share Price Performance

NTPC Green Energy’s share price traded ₹111.89 at 1:00 PM on the NSE, reflecting a slight increase of ₹0.48 (0.43%) from the previous close. The stock opened at ₹111.70, reached a high of ₹112.89, and a low of ₹110.11.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Income Tax Bill Likely to Get Cabinet Nod Today, Expected in Parliament Next Week

The much-awaited Income Tax Bill is set to be approved by the Union Cabinet today, clearing the way for its introduction in Parliament next week. The bill is expected to simplify the country’s tax structure, reduce litigation, and enhance transparency without introducing any new taxes.

Key Updates on the New Income Tax Bill

The Union Cabinet is likely to approve the new Income Tax Bill today, a significant step towards reforming the current taxation system. This approval will set the stage for its formal introduction in the Lok Sabha next week.

The new bill, commonly referred to as the Direct Tax Code aims to overhaul the tax framework by simplifying existing laws. This will provide taxpayers with more clarity and ensure greater ease of compliance. No new taxes will be introduced under the bill.

This will initiate the formal process of legislative discussion and scrutiny. The bill is also expected to focus on reducing legal disputes by clarifying ambiguities in the current tax system. Provisions are expected to be introduced to minimize penalties and ensure a more taxpayer-friendly framework.

Key Focus of the New Income Tax Bill

The bill is expected to be referred to the Standing Committee for additional review and refinement. The primary goal of the bill is not to impose new taxes but to simplify existing tax laws, clarify any ambiguities, and ensure easier compliance for taxpayers.

Key changes could include reducing penalties for certain offences, making the tax system more taxpayer-friendly, and minimising litigation. A major highlight of the bill will be the simplification of legal language to make it more accessible and understandable for the average taxpayer.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

RBI MPC Cuts Repo Rate by 25 Bps: How Did It Impact the Stock Market, Rupee?

In a key move, the Reserve Bank of India Monetary Policy Committee decided to reduce the repo rate by 25 basis points, bringing it down to 6.25% from 6.50%, while maintaining a ‘Neutral’ stance. Following this decision, Indian stock market indices remained range-bound, swinging between gains and losses.

The Monetary Policy Committee meeting, chaired by the new RBI Governor Sanjay Malhotra, marks the first RBI policy under Governor Malhotra and follows the Union Budget 2025-2026 presented on February 1.

Rate Cut Impact on the Indian Stock Market

At 9:30 AM, ahead of the MPC decision announcement, the benchmark BSE Sensex declined by 87.32 points, reaching 77,970.84, while the Nifty50 dipped 32.6 points to 23,570.75. The rupee opened 0.1% higher ahead of the RBI policy announcement.

The market widely anticipated a 25 basis point (bps) cut in the benchmark repo rate, reducing it from 6.50% to 6.25%. Following the decision, the Sensex briefly dipped by 100 points, while the Nifty slipped below 23,600.

However, by 11:45 AM, both indices turned positive, with the Sensex up by 0.17% at 78,197.20 and the Nifty50 up by 0.26% at 23,664.50.

Among the indices, Nifty Consumer Durables and Nifty Realty sectors were among the top performers, both rising by more than 1%.

RBI MPC Rate Cut Impact on the Indian Rupee

At around 10:00 AM, the rupee recovered 16 paise from its all-time low closing level, trading at 87.43 against the US dollar in early Friday trade, ahead of the Reserve Bank of India’s monetary policy announcement.

According to news reports, while a rate cut could ease some pressure on the rupee by improving liquidity and attracting foreign investments, it may also result in increased rupee supply, which could limit the currency’s upside potential.

At noon, the Indian rupee erased some of its early gains and traded at the 87.47 per dollar mark, appreciating by 0.13% against the US dollar.

Conclusion

The RBI’s repo rate cut is a significant policy move aimed at stimulating growth and easing liquidity pressures. While the immediate market reaction was mixed, with the stock indices swinging between gains and losses, the recovery in key sectors like Consumer Durables and Realty indicates a positive sentiment in select segments. The rupee’s recovery from its all-time low highlights market optimism, but the potential increase in rupee supply remains a factor to watch.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Cochin Shipyard Shares Fall for Second Day; Reports 28% Drop in Q3 FY25 Net Profit

Cochin Shipyard’s Q3 FY25 results met expectations with strong ship repair performance compensating for weaker shipbuilding. Despite an 8.6% rise in revenue, net profit dropped by 28%, and stock performance shows a dip.

Share Price Performance

Cochin Shipyard’s share price traded at ₹1,366.40, at 10:00 AM on the NSE, reflecting a decline of ₹45.05 or 3.19% from its previous close of ₹1,411.45. The stock opened at ₹1,335.00 and reached a high of ₹1,374.55 during the session, with a low of ₹1,335. The drop in the share price today added to yesterday’s losses of around 0.87%.

Cochin Shipyard’s stock has recently faced a downturn, falling by 8.3% since January 2025. However, this follows a rally in the past two years, with the stock more than doubling in both 2023 and 2024. It surged by 127% in 2024 and another 153% the year before.

Q3 FY25 Financial Performance

Cochin Shipyard reported a 28% decline in net profit, falling to ₹177 crore from ₹244 crore in the same quarter last year. Revenue increased by 8.6%, reaching ₹1,148 crore compared to ₹1,056 crore in Q3 FY24.

However, EBITDA saw a 23% drop, totalling ₹237 crore against ₹310 crore year-on-year, and the operating margin narrowed by 870 basis points to 20.7% from 29.3% in Q3 FY24.

The decrease in net profit and margin was mainly attributed to weaker performance in shipbuilding, though strong growth in the ship repair segment helped mitigate some of the challenges. Looking ahead, Cochin Shipyard anticipates that the INS Vikramaditya repair order will support margins through Q1 FY26.

Business Development: Expansion of UCSL’s Order Book

Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of Cochin Shipyard Limited (CSL), has secured a significant order from Ocean Sparkle Limited, an Adani Group company, for the construction of eight 70T Bollard Pull ASD tugs.

The tugs, which will be delivered between December 2026 and August 2028, are designed to meet the Approved Standard Tug Design and Specifications (ASTDS) by the Government of India, supporting the Atma Nirbhar Bharat initiative.

This order adds to UCSL’s growing portfolio, which includes ongoing projects like three additional tugs for Ocean Sparkle and various vessel constructions for international clients. With an order book exceeding INR 2000 crore, UCSL continues to expand its capabilities, positioning itself as a key player in the Indian shipbuilding sector.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bharti Airtel Share Price Up 5%; Q3 FY25 Sees ARPU Jump to ₹245, Strong Subscriber Growth

Bharti Airtel’s stock is trading at ₹1,260 at 9:45 AM on the NSE, showing a strong increase of ₹68.95 or 5.79% from its previous close of ₹1,191.05. The stock opened at ₹1,225 and reached a high of ₹1,260, while the low was ₹1,192 during the session.

The indicative close was recorded at ₹1,236.55, reflecting positive market sentiment and strong performance in the stock. This upward movement follows the release of impressive Q3 FY25 results, highlighting robust subscriber growth and a rise in ARPU.

Airtel’s Q3 FY25 Financial Highlights

Bharti Airtel posted an impressive 505% increase in its consolidated net profit, reaching ₹14,781 crore for Q3 FY25, up from ₹2,442 crore in the same quarter last year. Sequentially, the profit rose by 311%, from ₹3,593 crore in Q2 FY25.

This growth was driven by the strong performance of its India business, sustained growth in Africa, and the consolidation of Indus Towers Ltd, effective from November 19, 2024.

The company reported a 19% year-on-year (YoY) rise in consolidated total income, reaching ₹45,599 crore, compared to ₹38,339 crore in Q3 FY24. Average revenue per user (ARPU) grew to ₹245 in Q3 FY25, up from ₹208 in the same period last year.

Mobile data consumption surged 23.2% YoY, with average monthly data usage per customer hitting 24.5 GB.

Segment-Wise Business Performance Overview

In its India business, Airtel’s revenue increased by 24.6% YoY to ₹34,654 crore, fueled by tariff hikes, the Homes business expansion, and the Indus Towers consolidation. Mobile services revenue in India rose by 21.4% YoY. The Homes segment grew by 18.7% YoY, with a record net addition of 674,000 subscribers in Q3 FY25.

However, the Digital TV segment saw a slight decline of 2.9% YoY. The Passive Infrastructure Services segment contributed to 5.7% of the revenue growth. The company’s India business EBITDA reached ₹19,850 crore, reflecting an EBITDA margin of 57.3%.

In terms of operational performance, Airtel saw a 25.2 million increase in smartphone data customers YoY, and smartphone users now represent 75.8% of its total mobile customer base.

Bharti Airtel’s Vice-Chairman and Managing Director, Gopal Vittal, highlighted the company’s ongoing strategic shifts, including increased investments in digital services and the shedding of low-margin commodity businesses. The company also prepaid ₹3,626 crore of high-cost spectrum dues during the quarter. Airtel’s stock closed at ₹1,619.55, down 2.47% on the BSE before the Q3 FY25 results were announced.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

ITC Share Price in Focus: Q3 FY25 Net Profit Drops 7%, Dividend Declared

ITC’s Q3 FY25 results shows a 7% decline in net profit to ₹4,935 crore. Revenue rose 8% to ₹20,350 crore. Growth in agriculture, FMCG, cigarettes, and hotels segment offset challenges in paperboard and packaging segments.

The Board has also proposed an interim dividend of ₹6.5 per share for the financial year ending March 2025.

How Did ITC’s Cigarette Business Perform in Q3 FY25?

The cigarettes segment recorded an 8% growth in revenue and a 4% increase in profit before tax (PBT). ITC focused on portfolio management and tackling illicit trade, contributing to volume-driven growth.

Cost escalations in leaf tobacco were partially offset by improved mix, pricing, and focused cost management. Trade marketing spends were also restructured for more effective execution.

What Was the Performance of ITC’s FMCG Segment in Q3 FY25?

The FMCG segment saw a 4% increase in revenue, reaching ₹5,418 crore. The growth was driven by atta, spices, snacks, frozen snacks, dairy, premium personal wash, homecare, and agarbatti products.

Despite inflationary pressures on key inputs like edible oil, wheat, and cocoa, ITC managed to mitigate the impact through cost management, strategic pricing, and premiumization. Competitive marketing investments continued during the quarter.

How Did ITC’s Agri Business Perform in Q3 FY25?

The agri business segment’s revenue grew 10% YoY, driven by leaf tobacco and value-added agri exports. Profit before interest and tax (PBIT) increased 22% YoY.

The value-added agri portfolio saw strong growth, especially in coffee exports, with continued expansion of the state-of-the-art value-added spices processing facility in Guntur.

Paperboards and Packaging

The paperboards and packaging segment experienced a 3% increase in revenue, primarily due to strong export growth. The operating environment remained challenging due to low-priced imports from China and Indonesia, high domestic wood costs, and soft domestic demand.

However, ITC’s strategic focus on portfolio development, export markets, and cost management helped mitigate the challenges.

Hotels Business

The hotels segment showed exceptional performance with a 15% YoY increase in revenue, totaling ₹922 crore. Profit before tax surged 43% YoY to ₹302 crore. EBITDA margins expanded by 450 bps, driven by higher revenue per available room (RevPAR), operating leverage, and strategic cost management.

Following the demerger on January 1, 2025, ITC Hotels became a separate entity.

Share Price Performance

As of February 7, 2025, ITC Limited’s share price traded at ₹437.40, marking a decline of ₹3.70 or 0.84% at 9:20 AM on the NSE from the previous close of ₹441.10. The stock opened at ₹440.00 and reached a high of ₹445.50 and a low of ₹436.00 during the trading session.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.