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The Nifty traded below the 24,750 mark. FMCG shares extended losses for the third consecutive trading session. The market is volatile due to the monthly expiry of the Nifty F&O series today.
At 12:30 ST, the barometer index, the S&P BSE Sensex, shed 4.42 points or 0.01% to 81,308.10. The Nifty 50 index fell 8.95 points or 0.03% to 24,743.50.
The broader market outperformed the frontline indices, The S&P BSE Mid-Cap index rose 0.26% and the S&P BSE Small-Cap index added 0.37%.
The market breadth was positive. On the BSE, 1,873 shares rose and 1,937 shares fell. A total of 154 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 7.21% to 16.72. The Nifty 26 June 2025 futures were trading at 24,860.20, at a premium of 116.70 point as compared with the spot at 24,743.50.
The Nifty option chain for the 26 June 2025 expiry showed a maximum call OI of 44.3 lakh contracts at the 26,000 strike price. Maximum put OI of 48.9 lakh contracts was seen at 24,000 strike price.
Economy:
India's industrial output growth slowed to 2.7% in April, as against the revised growth of 3% in the preceding month of March, according to the data released by the Ministry of Statistics and Programme Implementation. Manufacturing output, which carries the largest weight in the index, advanced 3.4% in April as against 4% in the previous month, while electricity generation increased to 1.1% from 7.5% in March. Mining activity contracted by 0.2% in April from an expansion of 1.2% a month ago.
RBI Annual Report Highlights:
The Reserve Bank of India (RBI) in its annual report projected that the Indian economy is likely to maintain its position as the fastest-growing major economy in FY2025-26. The optimism is fueled by a pick-up in private consumption, robust bank and corporate balance sheets, supportive financial conditions, and a sustained push from the government on capital expenditure.
The central bank also painted a positive inflation outlook for the coming year, citing easing global supply chain pressures, a dip in commodity prices, and the prospect of a strong agricultural output driven by an above-normal southwest monsoon.
However, the RBI cautioned that financial markets may face intermittent volatility, particularly in response to global uncertainties like shifting trade tariff policies and rising geopolitical tensions.
On the financial front, the RBI’s balance sheet grew 8.20% year-on-year to Rs 76.25 lakh crore as of 31 March 2025. While income for the year increased by 22.77%, expenditure increased by 7.76%. The year ended with an overall surplus of Rs 2.68 lakh crore as against Rs 2.10 lakh crore in the previous year, resulting in an increase of 27.37%.
The asset side of the balance sheet saw increases in gold reserves, domestic investments, and foreign investments. Domestic assets accounted for 25.73% of total assets, while foreign currency assets, gold, and other holdings made up the remaining 74.27%.
On the liabilities side, the growth was attributed to a rise in currency in circulation, revaluation accounts, and other liabilities by 6.03%, 17.32% and 23.31%, respectively.
Buzzing Index:
The Nifty FMCG index slipped 0.39% to 55,489.30. The index declined 2.73% in three consecutive trading sessions.
United Breweries (down 1.86%), Godrej Consumer Products (down 1.74%), Tata Consumer Products (down 1.28%), Patanjali Foods (down 0.86%), Colgate-Palmolive (India) (down 0.73%), Varun Beverages (down 0.72%), ITC (down 0.68%), Marico (down 0.56%), Dabur India (down 0.52%) and United Spirits (down 0.01%) declined.
Stocks in Spotlight:
Birlasoft shed 0.51%. The company reported a 4.42% increase in consolidated net profit to Rs 122.11 crore in Q4 FY25, up from Rs 116.94 crore in Q3 FY25. However, revenue from operations decreased 3.36% quarter-on-quarter (QoQ) to Rs 1,316.89 crore in Q4 FY25.
Cummins India surged 6.98%. The company has reported 7% fall in standalone net profit to Rs 521 crore on a 6% rise in total sales to Rs 2,414 crore in Q4 FY25 as compared with Q4 FY24.
For the full year,net profit declined 17.15% to Rs 516.76 crore in the year ended March 2025 as against Rs 623.76 crore during the previous year ended March 2024. Sales rose 1.84% to Rs 5375.24 crore in the year ended March 2025 as against Rs 5278.15 crore during the previous year ended March 2024.
As compared to Q4 FY24, the company’s consolidated net profit fell 32.19% and revenue declined 3.35%.
EBITDA stood at Rs 173.6 crore in Q4 FY25, up 6.2% QoQ but down 21.7% year-on-year (YoY). EBITDA margin improved to 13.2% in Q4 FY25 compared to 12% in Q3 FY25, though it declined from 16.3% in Q4 FY24.
In dollar terms, the company’s revenue was $152.2 million, registering a decline of 5.4% QoQ and 7.2% YoY. In constant currency terms, revenue declined 5.3% QoQ.
The company signed deals with a total contract value (TCV) of $236 million during the quarter, up 4% QoQ, comprising new deal wins worth $112 million and renewals worth $124 million.
Active client count stood at 254 in Q4 FY25, down from 265 in Q3 FY25 and 259 in Q4 FY24, reflecting some rationalization of the ‘tail’.
Cash and cash equivalents rose to $259.5 million at the end of Q4 FY25, compared to $240.1 million at the end of Q3 FY25. In rupee terms, cash and cash equivalents increased to Rs 22,177 million at the end of Q4 FY25 from Rs 20,552 million at the end of the previous quarter.
The workforce strength stood at 11,930 as of 31 March 2025, with an attrition rate of 12.8% during Q4 FY25.
Angan Guha, chief executive officer and managing director of Birlasoft, said, “We are pleased to report a steady year in the face of a soft demand environment owing to sustained macro-economic challenges, with revenue during FY2025 growing 1.8% over the preceding year.
We continue to generate consistently strong cashflows. We also saw a noticeable uptick in our deal wins during the second-half of the year under review, with a sequential increase in TCV of deals won during the quarter under review to $236 million led by higher new deals, demonstrating the strength of our pipeline and our ability to pursue deal closures. While our near-term outlook is likely to reflect the impact of shifts in customer priorities, we continue to invest in our capabilities such as generative AI, where we have been early adopters.”
Kamini Shah, chief financial officer, Birlasoft, said, 'Our consolidated revenue during FY’25 has grown 1.8% over the preceding year to Rs 53,752 million. Our EBITDA margin performance for the year reflects the investments we have been making in our business as well as higher furloughs, consolidation deals, and growth in the Infra business. For the quarter under review, revenue stood at $152.2 million and the EBITDA margin expanded 119 basis points sequentially to 13.2%. Cash flow from operations during the year and the quarter were 88.3% and 88.1%, respectively, of EBITDA, led by sustained focus on collections. We have ended the year with a robust balance sheet and believe that we are well-positioned to successfully navigate through the prevalent macroeconomic environment.'
Meanwhile, the company’s board has recommended a final dividend of Rs 4 per equity share for the financial year 2024-25, subject to approval by the members at the upcoming Annual General Meeting (AGM) of the company. The date of the AGM will be intimated in due course, and the dividend, if declared by the members, will be paid within the statutory timelines.
Further, the company’s board has approved that Manjunath Kygonahally, senior management personnel (SMP) and currently chief executive officer for rest of the world (CEO-ROW), will take on an additional role as Global Head of Strategic Growth Initiatives, effective 28 May 2025. He will be designated as CEO-ROW and Global Head—Strategic Growth Initiatives.
Birlasoft, part of the CK Birla Group, provides digital and information technology consulting, services, solutions and products for organizations across industries worldwide.
The counter shed 0.77% to Rs 420.05 on the BSE.