infotonic

  On The Route To Unstoppable Growth As per changing dynamics in global geopolitics and economics, one of the key growth drivers for the Indian tyre industry would be the recently levied antidumping duty on China products in USA and other developed markets The road transport and automobile industry are critical for the Indian economy. However, on the Indian terrain, there are only few that last long. Due to diversity of the weather, temperature, and geographic variations, the challenges posed by road network are many. Pacing with major part of the economy on its back is the Indian tyre industry. Like the challenges posed by the country’s terrain, the sector has recently fought hard against unprecedented challenges posed by the pandemic and global uncertainties and have navigated through rocky roads and pits, sand and rain-washed slopes to script a strong recovery. In fact, rating agency ICRA estimates a 13 to 15% volume demand growth in FY2022.  JK Tyre – An Unmatched Growth S...

Q4FY22 earnings are likely to moderate AT 12% YoY; this will be a SEVEN-QUARTER LOW.   The reason for moderation w ould be commodities, reconciling its divergence with overall aggregate. While Banks, exporters (chemicals, IT) and consumer services are likely to report strong earnings, however, consumer companies are likely to remain muted, largely due to soft demand. There are more adverse macro and fading tailwinds of global reflation, market share gains and lower credit costs pose downside risk to estimates of FY23. Demand – rather than margins – looks more vulnerable.  Earnings growth moderates  1. Led by commodities… Earnings growth is likely to moderate in Q4FY22 to 12% YoY for our coverage universe. The moderation is likely to be mainly led by commodities (key earnings driver so far), while the uptick in rest is not material enough to offset commodity slowdown.  In non-commodities, unlocking has propelled consumer services’ profits. Exporters (chemicals, I...

After a broad-based earnings bounce back in FY21, growth narrowed sharply in FY22.  Key highlights:  1. Top line recovery is moderate at 12% YoY and is largely led by prices, while volumes have been weak.  2. Margin pressure due to higher input prices. Resulting in corporates pruning fixed costs again – wage bill growth for BSE500 (ex IT) has slowed to 7% YoY – pre-COVID low.  3.Banking sector’s asset quality continues to improve as MSMEs bounce back; although not out of the woods yet.  Way forward:   Going ahead, there are risks arising out of earnings downgrades (after upgrades in the last two years) as  earnings become increasingly demand dependent (as opposed to being cost and price dependent until now) – which is weak and outlook uncertain. This, along with high valuations, and tightening global liquidity warrants a decisive pivot towards low beta (risk)  Q3FY22 earnings: Demand revival slow, margin pressures high Revenue:  Topline incre...

Influencer Marketing is growing rapidly   Influencer outreach has matured, grown in size, influence is still defining itself within the world, jockeying for position among more established routes to consumers.  Instead, we must acknowledge the role influence plays in reputation management, and how its unique success can best benefit the company.  The question is no longer if you should partner with influencers.  At the outset, many were skeptical of this approach to communication. Indeed, as social media matured, this new kind of stardom, or at least fame, was not wholly embraced.  Create Conversation Don't just be part of it   The conversation is no longer something that you can plan for on a calendar. Today, it happens serendipitously. So as audience-first trends bubble up across social media, brands need to embrace these cultural catalysts, rather than trying to forcefully wedge PR moments into the digital space.  Just let the hits happen.  ...

Metaverse, Naam to Sunna Hoga. Been referred as “the new internet”.  Is it all all-consuming virtual game that is described in Books and Movies?  In reality, it is somewhere in the middle.  Whatever you may or may or not have heard, that’s undoubtedly true is that the metaverse is here to change our world. So what is metaverse; the definition is something like “the convergence of physical and virtual realities”.  Crypto technology, non-fungible tokens (NFTs), or platforms like Epic’s  Fortnite are current and growing manifestations of the kind of interactions and experiences the idea of the metaverse brings. The metaverse at its core is an idea, a concept, an aspiration. But it’s no longer a dream. How can Companies Shape the Metaverse to Their Advantage? The metaverse presents a potentially major opportunity for brands, but only if brands make sure to prioritize consumers and their experiences over everything else. This is the final frontier for major tech play...

 METAVERSE  It's not a question of if, but when and how. As all of the world's major tech players have made clear, the metaverse is the next frontier of the digital world. An immersive virtual world built on established gaming, VR, and AR elements, the metaverse doesn't merely present a massive opportunity for brands—it's something all brands will have to engage with and utilize to grow. Our metaverse experts are on it, recently kicking off a new multi-part series investigating the metaverse and all its implications for brands.  The metaverse, at this point, is much like the internet of the early 90s or the smartphone of the early aughts—we know it's going to be big, and it's going to change people's day-to-day. But we don't quite know exactly how yet, or how big the shift will truly be. This is discomfiting. But the brands which have endured through other major technological shifts have done so by understanding the consumer, and providing relevancy and ...

NEWS IN FOCUS  1. Economist reported that  as countries and industries look to transition away from fossil fuels to help stabilize the climate, hydrogen has increasingly become part of major decarbonization plans. More than 350 large-scale hydrogen projects have been announced globally—and they are expected to receive $500 billion in public and private funding through 2030. Some companies in steel manufacturing and aviation have already built hydrogen into their energy-transition plans.  Read the story here:  https://www.economist.com/briefing/2021/10/09/creating-the-new-hydrogen-economy-is-a-massive-undertaking?cid=other-eml-onp-mip-mck&hlkid=eb21e67798b74a94b7de9a12cfbd8b55&hctky=9431270&hdpid=16a85c20-d196-43ee-81dc-96a396f74775 2. In August, India’s Prime Minister Narendra Modi announced plans for a National Hydrogen Mission to reduce carbon emissions and bolster production of clean energy. The ambition is for India to become a major hub for green hyd...