Business News at 05:30 pm on 19th October 2023

Let’s begin – FMCG major ITC Ltd is expected to post a healthy profit growth of 7-10 per cent during the second quarter of FY24, driven by sales of cigarettes, price hikes in FMCG products, and strong demand in the hotels segment. ITC will announce its Q2FY24 earnings on October 19. According to brokerage firms and analysts, ITC is expected to post Q2FY24 profit at Rs 4910.00 crore and sales at Rs 18,370.00 crore. Margins are seen expanding on a yearly basis amid a softening raw-material prices, but may see some contraction sequentially. According to a report by HDFC Securities, ITC is expected to post 6 per cent YoY growth in cigarette revenue, with volume growth of 5 per cent YoY.

Next up – According to a report by CNBC, Google has cut at least 40 jobs in its news division. The cuts come as the tech giant is downsizing in recent months citing economic necessity. The news division cuts are reportedly part of a broader restructuring move at Google, which has also seen layoffs in other areas such as recruiting and cloud computing. Google’s news division is responsible for a variety of products and services, including Google News, Google News Showcase, and YouTube News. The news division cuts come at a particularly sensitive time for online platforms and publishers that are facing increasing pressure from governments and regulators to provide the public with accurate information and combat the spread of misinformation.

Moving on – PVR INOX Limited posted total revenues for Q2, FY24, stood at Rs 2023.7 crore from Rs 1081.8 crore in Q2, FY23 while the net profit for the quarter stood at Rs 166.3 crore in Q2 FY24. In Q2, FY23, it reported a loss for the quarter of Rs 71.5 crore. The company stated that the average ticket price was Rs 276 while the average food and beverages spend was Rs 136 in the quarter ended September 2023. According to the company, net screens added in Q1, FY24 stood at 37 across seven properties. It further reported that the average ticket price stood at Rs 276. Moreover, the average food and beverage spend stood at Rs 136.

In another development – Delhi and Mumbai, two of India’s major metropolitan areas, are experiencing varying air quality conditions. In Delhi, the air quality on Thursday morning was classified as ‘moderate’ with an Air Quality Index of 117, marking an increase from 83 on the previous day. On the other hand, concerns grew in Mumbai which is shrouded in mist, pushing the city’s air into the ‘moderate’ category with an AQI of 166, according to SAFAR data. Surprisingly, the PM10 level in Mumbai’s air is higher than that in Delhi, standing at 143 compared to 122 in Delhi. According to IMD, moisture and anticyclonic wind circulation over Mumbai have not allowed the wind to ascend with moisture getting stuck in the air due to it.

Meanwhile – Tech-services outsourcing giant, Wipro Limited, has adopted a more cautious approach to hiring engineering graduates this year due to the cautious behaviour of its clients, who are tightening their belts in terms of spending. Instead of their usual recruitment drive, Wipro has decided to prioritise individuals to whom they have already extended job offers but haven’t yet brought into the fold. This shift in strategy comes in the wake of the firm’s report of slowing sales in the fiscal second quarter, along with net income figures that fell short of analysts’ expectations. This fiscal year, Wipro is likely to hire fewer fresh graduates. Notably, the tech firm had onboarded 22,000 new graduates in the previous fiscal year ending in March.

In other news – UK Prime Minister Rishi Sunak reached Israel on a two-day trip to the region on Thursday. He is the second world leader after US President Joe Biden to visit the strife-torn region. He will hold talks with his Israeli counterpart Benjamin Netanyahu in Tel Aviv. Unlike Biden, Sunak plans to visit other key capitals in the region. There are reports that he will also warn the powers on either side against any kind of escalation. Shortly after reaching Israel, Sunak told media at the Ben Gurion Airport that October 7 attacks were ‘horrific act of terrorism.’ UK stands with Israel, Sunak said. He also added that he hopes that the meetings between him at the Israeli leaders will be ‘productive’.

Lastly – The Indian Council of Medical Research is presently conducting a feasibility study in Lahaul & Spiti district, Himachal Pradesh, to explore the transportation of vital medical resources, including medications, diagnostic blood samples, and sputum, via drones. According to ICMR, drones are playing an increasingly critical role in healthcare, particularly in emergency response scenarios, where they facilitate the swift delivery of vaccines, medications, and other essential supplies to remote and inaccessible areas.