Latest news with #ShigenobuNagamori
Mint
21-07-2025
- Business
- Mint
India Consumer Earnings Key as Markets Hope for Demand Rebound
(Bloomberg) -- Asia's earnings focus turns to India's consumer sector, as investors look for signs that economic momentum is recovering after central bank rate reductions and income tax cuts take effect. Efforts to shore up the Indian economy are under way as it gradually recovers after a consumption slowdown last year. The Reserve Bank of India has cut the key rate by a cumulative 100 basis points so far this cycle, with the governor in June declaring the battle against inflation had been won. The country's two largest private sector lenders HDFC Bank Ltd. and ICICI Bank Ltd. both beat profit estimates on Saturday. India's new tax bill also exempts 11 million more people from income taxes, another move to boost consumption in Asia's third-largest economy. On Thursday, Nestle India Ltd. should show improved volume growth led by a recovery in rural demand, with urban recovery yet to catch up. It's also expected to benefit from a cut to palm oil duty and fall in coffee prices, according to analysts from Nuvama Institutional Equities. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all fell after their earnings reports, with the latter two missing estimates. Highlights to look out for: Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. Friday: No major earnings. More stories like this are available on
Mint
18-07-2025
- Business
- Mint
Weak Credit Growth And Rate Cuts to Squeeze Profit at India's HDFC, ICICI Banks
(Bloomberg) -- India's top private-sector banks HDFC Bank Ltd. and ICICI Bank Ltd. could see profits come under pressure from loan growth at a three-year low and thinning margins driven by central bank rate cuts, as they report earnings this weekend. Margins face pressure from the Reserve Bank of India's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy. The moves came as lending growth weakens, with gross bank credit growth hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel economic growth, according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade. Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like Nestle India Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all dropped after reporting earnings. Highlights to look out for: Saturday: HDFC Bank (HDFCB IN) and ICICI Bank (ICICIBC IN) profit growth is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile, ICICI Bank is expected to set aside higher provisions as unsecured lending rises, raising asset quality risks, according to Bloomberg Intelligence. Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. Friday: No major earnings. More stories like this are available on
Economic Times
18-07-2025
- Business
- Economic Times
Weak credit growth and rate cuts to squeeze profit at HDFC, ICICI Banks
Margins face pressure from the Reserve Bank of India's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy. ADVERTISEMENT The moves came as lending growth weakens, with gross bank credit growth hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel economic growth, according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade. Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like Nestle India Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all dropped after reporting earnings. Saturday: HDFC Bank (HDFCB IN) and ICICI Bank (ICICIBC IN) profit growth is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile, ICICI Bank is expected to set aside higher provisions as unsecured lending rises, raising asset quality risks, according to Bloomberg Intelligence. ADVERTISEMENT Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. ADVERTISEMENT Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. ADVERTISEMENT - SK Hynix's (000660 KS) second-quarter operating profit likely rose 63%, consensus shows. Margins could reach 45% to 47%, BI said, supported by robust average selling prices for memory chips. Meanwhile DRAM shipments might have risen above its guidance. Seasonal demand could kick up DRAM and NAND shipments in the third quarter, BI added.- Nestle India's (NEST IN) first-quarter earnings may be supported by higher revenue contributions from both its domestic and export segments. The company is expected to be on an improving growth trajectory, Citi said. Watch out for strategic initiatives following a change in leadership. - Bajaj Finance's (BAF IN) lending growth is expected to slow in keeping with sector peers. Asset quality trends may be softer in the non-banking finance sector as a weaker macro environment has slightly exacerbated usual seasonal weaknesses, according to Jefferies. (You can now subscribe to our ETMarkets WhatsApp channel)
Bloomberg
20-06-2025
- Business
- Bloomberg
Nidec CEO Stresses Compliance in Shift From Fixation on Growth
Nidec Corp. founder Shigenobu Nagamori said the Japanese maker of precision motors is prioritizing compliance, stepping away from a half-century-long focus on profit and growth. The acquisitive company is now teaching employees about the importance of contributing to society, even if that means additional costs, Nagamori said at the annual shareholders' meeting Friday in Kyoto. Nidec earlier this week delayed its submission of its securities report over errors in country-of-origin declarations and unpaid import tariffs at a subsidiary in Italy.
Forbes
02-06-2025
- Business
- Forbes
Japanese Billionaire's Acquisitive Streak Hits Roadblock
Shigenobu Nagamori. This story is part of Forbes' coverage of Japan's Richest 2025. See the full list here. After decades of successful bolt-on acquisitions, Shigenobu Nagamori, founder and chairman of precision-motor giant Nidec, hit a roadblock in his hostile bid for machine-tool maker Makino Milling Machine. ss The ¥257 billion ($1.8 billion) tender offer—unusual in Japan, where such deals are negotiated privately—was set to open in April, but in March, Makino, which had ¥234 billion in revenue in the year through March, said it would mount a 'poison pill' takeover defense if Nidec didn't give it more time to consider potential competing proposals. Nidec asked the Tokyo District Court to halt Makino's plan, but the petition was dismissed and the company withdrew its bid. For Nidec, which posted ¥2.6 trillion in revenue in the year through March, the offer was part of its strategy to turn machine tools, which account for less than 10% of its sales, into a ¥1 trillion business over the next decade. Nagamori's wealth dropped to $2.8 billion on a 27% slide in Nidec shares over the past year.
