The IT giants, TCS and Wipro, kicked off the earnings season this week, but despite showing year-over-year growth, failed to impress analysts. The online gaming industry was also jolted as the Indian government’s announced the imposition of a 28% tax on turnover.
While domestic firms grapple with these challenges, global giants have their eyes set on India. The Tata Group is inching closer to becoming India’s first iPhone manufacturer, a move that could potentially attract more global firms to manufacture in India.
Meanwhile, Elon Musk-led Tesla is in talks with the Indian government to establish a car factory in the country, a move that could significantly boost India’s EV sector. Harley Davidson another US giant is seeing the India appeal and might be planning a bigger presence in India. Catch up on all these updates here.
Lukewarm Q1 Results for IT Giants
Indian IT majors, TCS and Wipro, have released their Q1 results, stirring mixed reactions among analysts. TCS reported a net profit of ₹11,074 crore, marking a 16.84% YoY increase, and a revenue of ₹59,381 crore, a 12.6% YoY growth. However, some analysts were disappointed by the company’s performance, with JP Morgan maintaining its “underweight” rating for the stock. On the other hand, Wipro’s net profit saw a 12% YoY jump to ₹2,870 crore, and a 6% rise in consolidated revenues, amounting to ₹22,831 crore. Despite these figures, both the revenue and profit fell short of consensus estimates, leading Morgan Stanley, Nomura, Jefferies, and BofA Securities were all unimpressed by the numbers. Read the full articles here, here, and here.
Harley-Davidson Mulls Making More Motorcycles in India
US-based motorcycle brand Harley-Davidson is considering using its Indian facilities to make motorcycles for other parts of the world, according to CEO Jochen Zeitz. The company is focusing on strengthening local sales with its HD X440 bike, the most affordable bike that the firm launched in partnership with Hero MotoCorp. Read the full article here.
Tata Group on the Verge of Making History as India’s First iPhone Manufacturer
The Tata Group is reportedly in advanced talks to acquire an iPhone supplier factory in India from Wistron Corporation. If the deal materialises, it would mark the first instance of a local firm producing iPhones. This move could potentially attract more global firms to manufacture in India as they look to reduce their dependence on China. Read the full article here.
India Slaps 28% Tax On Online Gaming Turnover
The Indian government’s decision to impose a 28% tax on the turnover of online gaming companies has sent shockwaves through the $1.5 billion industry. The new tax regime could potentially affect the earnings of online gaming companies and lead to higher charges for customers. Companies like Dream11, backed by Tiger Global, and MPL app, backed by Peax XV, are likely to be affected by this decision. The impact of this tax change is already being felt in the stock market, with shares of online gaming firms such as Nazara Technologies, Onmobile Global, and Delta Corp seeing a significant drop. Read the full articles here and here.
Elon Musk-Led Tesla In Talks To Build India Plant
Elon Musk-led Tesla has reportedly started discussions with the Indian government around an investment to establish a car factory in the country. The factory will have an annual capacity of up to 5 lakh electric vehicles, with prices starting from ₹20 lakh. However, Tesla’s India plans may face a roadblock as Chinese EV giant BYD Co has submitted a $1 billion investment proposal to build electric cars and batteries in India. Read the full articles here, here and here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.