THE BIG IDEA | PAGE 18 INTERNATIONAL | PAGE 3 COMPANIES | PAGE 4 upGrad: Scaling up online skilling Over the next year,Verix aims to reach a million women inAI MUMBAI, MONDAY, APRIL 21, 2025 Russia, Ukraine accuse each other ofviolating Easter truce FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXV NO. 93, 18 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E IN THE NEWS IT firms see muted outlook for FY26 despite strong deals DESPITE REPORTING STRONG deal wins in the March quarter, Indian IT majors Tata Consultancy Services (TCS), Infosys and Wipro have issued a muted outlook for FY26, pointing to a slowdown in the conversion of deals into revenues, reports Padmini Dhruvaraj. ■ PAGE 4 Rail freight growth slows as non-coal cargo weakens STAGNANT GROWTH IN "non-coal" segments and a lack of focus on diversifying the commodity basket have put the Indian railways in a tight spot. Over the past few years, the growth rate of the freight segment has fallen-- both in volume and value terms, reports Manu Kaushik. ■ PAGE 2 Tariff war: Boeing aircraft returns to US from China ABOEING JET intended for use by a Chinese airline landed back at the planemaker’s US production hub on Sunday, a victim of the tit-for-tat bilateral tariffs launched by President Donald Trump in his global trade offensive, reports Reuters. The tariffwar and delivery U-turn come as Boeing recovers from a five-year 737 MAX import freeze and earlier trade tensions. ■ PAGE 3 Finmin seeks swift Unified Pension Scheme rollout GIVENTHE modest start of the Unified Pension Scheme (UPS), the finance ministry has written to the pay & accounts offices (PAOs) of central ministries, urging them to take steps to expedite its roll-out.The ministry proposed that staff be sensitised to undertake their assigned roles and responsibilities for timebound implementation of the UPS, reports Prasanta Sahu. ■ PAGE 2 India remains highlyvalued despite earningsworries KISHOR KADAM New Delhi, April 20 THE RECENTRECOVERY in stocks has meant India remains among themostexpensiveinitspeergroup at a time when there are serious concerns on economic growth and corporate earnings. In a stunning rally, the benchmark Nifty gained 1,769points (or8%) fromitsrecent lows of 22,082.65 (on March 4) to close at 23,851.65 on Thursday. The Sensex has rallied 5,563 points (or7.6%) from 72,989.93 to 78,553.20 in the same period.As a result,theNiftynowtradesatamultiple of a little over 20 times oneyear forward estimated earnings, according to Bloomberg data. This is much more expensive than, for instance, the Korean Kospi which tradesatamultipleofjustunder9X. INDIA, AN EXPENSIVE BET ■ Nifty gained 25.0 20.0 China 14.58 15.0 1,769 points from its recent lows of 22,082.65 to close at 23,851.65 onThursday India (Nif ty) 20.13 Taiwan 13.84 Indonesia 10.72 South Korea 8.94 10.0 5.0 1-year forward PE ratio April 17, 2024 April 17, 2025 The Chinese market trades at a shade under 15X while Taiwan trades at 13.8X. Of course, the Indian market today is far less expensive than it was in the September-December period of 2024 when the Nifty was tradingatover23Xandespeciallyin earlyOctoberwhen it hit a multiple of close to 24X. However,in the aftermath of the US’ tariff blitzkrieg and the poten- COMMERCEAND INDUSTRY minister Piyush Goyal is likely to visit Europe from April 28 for talks with top officials of all key countries in the continent with which trade agreements are in final stages or have alreadybeen signed,butyet to be operationalised. The minister’s visit will cover London, Brussels and Norway. He will first touch down in London, and then proceed to Norway and Brussels. The European Union is run from Brussels while Norway is part of the European Free Trade Association (EFTA).The long-delayed Free Trade AgreementwiththeUK isonthevergeof ON THE AGENDA ■ Goyal will first touch down in London, and then proceed to Norway and Brussels ■ The economic deal-making has reached a feverish pace after Trump initiated tariff increases that have left no country untouched ■ The long- delayed FTA with the UK is on the verge of closure, while talks with the EU are being speeded up closure,whiletalkswiththeEU arebeingspeededuptofinalise the FTAbyyear-end. India and the EU started negotiations on FTA in MTNLdefaults on `8,346-cr bank loans SINKING FURTHER ■ MTNL's total debt obligations have reached `33,568 crore as on March 31 ■ The defaults in loan payment have occurred between August 2024 and February 2025 ■ The total debt comprises `8,346 crore bank loan, `24,071 crore SG bond, and loan of `1,151 crore from DoT PRESS TRUST OF INDIA New Delhi, April 20 STATE-RUN TELECOM FIRM MTNL has defaulted on bank loans worth `8,346.24 crore from seven public sector banks, the company said in a regulatory filing. The loss-making public sector telecom firm's total debt obligations reached `33,568 crore as on March 31,2025,according to a filing dated April 19. The total loan default includes `3,633.42 crore of debt raised from Union Bank of India, `2,374.49 crore from Indian Overseas Bank, `1,077.34crorefromBankofIndia, `464.26crorefromPunjabNational Bank,`350.05crorefromStateBank of India, `266.30 crore from UCO Bank and `180.3 crore along with principal and interest payment. The financially stressed telecom firm, which has long been operating at a loss, continues to grapple with rising liabilities despite multiple government-led revival efforts.The defaults in loan payment have occurred between August 2024 to February 2025. The total debt on the company comprises `8,346 crore bank loan, `24,071 crore sovereign guarantee (SG) bond,and loan of `1,151 crore from Department of Telecom (DoT) forpaying SG bond interest,according to the filing. Continued on Page 13 ● FAITH UNDERTHE SHADOWOF GUN MARKETS REGULATOR SEBI has said it found "no manufacturing activity" at Gensol Engineering's electric vehicle plant in Pune with only 2-3 labourers present when an NSE official visited the site, reports PTI. These revelations were part of Sebi's interim order issued on April 15. ■ PAGE 6 FE S P E C I A L S Innovation has been key to Godrej Consumer's HIT growth strategy ■ BRANDWAGON, P9 ‘Opt for flexi-cap funds’ PPFAS Mutual Fund’s Neil Parag Parikh on investing during uncertain times ■ PERSONAL FINANCE, P7 rallied 5,563 points from 72,989.93 to 78,553.20 in the same period Continued on Page 5 June 2022 and have so far held 10 rounds of talks.The 11th roundwill happen in New Delhi from May 12 to May 16. With EFTA, India had signed a Trade and Economic Partnership Agreement(TEPA)inMarchlastyear. It is expected to become operational byJuneasthenationalparliamentsof all four EFTA members — Iceland, Liechtenstein,Norway and Switzerland — have ratified it.Now,the pact isawaitingreferenduminSwisscantons (equivalent to states in India). The FTAnegotiationswith the UK arealsoonthevergeofconclusionand no more negotiating rounds are required,according to officials.Both sidesaretyingupremaininglooseends on their Bilateral Investment Treaty (BIT) before both pacts are signed simultaneouslyaspertheoriginalplan. Awoman holds a childwho kisses an icon, during Easter celebrations at Breb in Romania on Sunday. Meanwhile, Ukrainian presidentVolodymyr Zelensky said that Russia's 24-hour ceasefire is just a facade ■ Sensex has tial damage it could cause to the Indian economy which is already slowing down, the growth in earnings could belie expectations. Goyal tovisit Europe next week,to speed up FTAs MUKESH JAGOTA New Delhi, April 20 ANEES HUSSAIN Bengaluru, April 20 ■ Nifty now trades at a multiple of a little over 20X oneyear forward estimated earnings No output, only 2–3 workers at Gensol’s Pune plant, finds Sebi How HIT is making a killing Q-comm’s private labels zero in on specific categories RECENTMARKETRECOVERYPUSHES UPSTOCKVALUATIONS REUTERS GAINING TRACTION PRIVATE LABELS HAVE penetrated high-margincategoriesacrossquick commerce platforms, though the track record has not been as successful in other product segments. Staples, packaged foods, and home cleaning products, for instance, are seeing greater traction, according to Rishav Jain, managing director and Lead – retail practice at Alvarez & Marsal, who says they contribute anywhere between 8% and 40% to category sales. While channel margins on grocery and FMCG stand at 14-15%, it is nearly twice that for fresh categories.“High purchase frequency and margins of 25-30% make fresh produce an attractive category,” Satish Meena, advisor at Datum Intelligence,told FE.Fruits and vegetables, accounting for 810% of quick commerce sales,present a particularly bright opportunity. But players are finding it harder to scale up in categories like eggs and poultry,showing that the success has been category-specific. Private labels’contribution has hit 6-8% of q-commerce sales—up from 1-2% twoyears ago— but the distribution remains highly uneven across product segments. BigBasket has set the pace. Its private labels—BB Royal,BB Popular, BB Home, and Fresho— account for 35% of total revenue. Zepto is also scaling its privatelabel portfolio in staples.Last year, it launched Daily Good, offering, ■ While channel margins on grocery and FMCG stand at 14-15%, it is nearly twice that for fresh categories ■ Fruits and vegetables, accounting for 8-10% of quick commerce sales, present a particularly bright opportunity ■ BB Royal, BB Popular, BB Home, and Fresho—account for 35% of BigBasket's total revenue ■ Zepto is also scaling its private-label portfolio in staples oils, dals, millets and dried fruits. Jain believes the commoditised nature of these products and the significantly lower supply chain complexities compared to perishables, makes them ideal candidates for white-labeling. “These products deliver 7-10% higher margins than branded alternatives and boost gross margin per order and profitability,”he told FE. Continued on Page 5 Soaring gold prices dampen demand ALL THAT GLITTERS RAJESH BHAYANI Mumbai, April 20 THE SHARP SPIKE in gold prices — 30% over the past year — has dampened local demand for jewellery.Purchases forevenweddings, the mainstay of the jewellery market, has been somewhat subdued, limited to light-weight jewellery. Purchases on Akshaya Tritiya, the biggest gold-buying occasion of theyear,are expected to be low-key. Local prices of 24 carat gold are currently hovering around `95,000 per 10 gram and could well hit the `100,000 mark byAkshayaTritiya, which falls on April 30. Rajiv Popley, director, Popley Group, concedes that the soaring gold prices does make jewellery purchaseslessaffordablethoughhe says that demand has been consistent.“With last year’s high volumes setting a benchmark, matching it won’t be easy,”Popley said. Internationally, gold prices are currentlyin the region of $3,327 an ounce,having spiked duetothe turmoil in the financial markets and the weakening US dollar after the Trumpadministrationraisedtariffs aggressivelyforimportsintotheUS. Meanwhile,centralbankershave been adding gold to their portfolios. In fact,they have bought more than 1,000tonneofgoldforthreeyearsin MCX spot gold (` per 10 gm) 100,000 94,629 90,000 80,000 63,103 70,000 60,000 Jan 1, 2024 Source: Bloomberg Apr 18, 2025 a row (till 2024), according to data from theWorld Gold Council. The global rally in gold prices continues unabated with 2024-25 turning in returns of 39.75% -- the highest in four decades, according to data from Kedia Commodities. Since January, prices have risen by 27%.According to Goldman Sachs, the price of gold could hit $4,500/ouncebytheendof2025in a high-risk scenario. The yellow metal is becoming increasingly popular as an asset class. Continued on Page 13 Transmission, PPAdelays slow renewable energy intake Half of installed powercapacitymeets 15% of demand ARUNIMA BHARADWAJ & RAGHAVENDRA KAMATH New Delhi/Mumbai, April 20 A HIGH LEVEL of preparedness notwithstanding, the Central ElectricityAuthority(CEA) is concerned that May and June as “high-risk months”couldseepoweroutagesin many parts of the country. Clearly, the comparatively higher pace at which renewable energy (RE) capacities have been addedin recentyears andestablishment of the “world’s largest synchronised grid” haven’t been enough to pre-empt supplydeficits during peak summer periods. Accordingtoindustryexecutives, theproblemlieswithbelatedfocuson RE storage creation,which is crucial for round-the-clock RE supply.Connectivity of the naturally intermittent energy to the grid is still poor. Another issue slowing the growth of RE is the delay in signing of power purchase agreements (PPAs). To be sure, about half — 46% to be precise — of the country's installedpowergenerationcapacity is now RE-based, yet RE sector is capable of meeting just around 15%ofthepeakpowerdemand(see chart). According to projections, even by 2030, RE could meet less than a third of the peak demand, though it might bythen account for atwo-thirdsofthecapacityinplace. RE capacity addition has far outpaced fossil-based (primarily coal-fired) power in recent years. Just 1.4 giga watts (GW) of thermal AT A GLANCE Share of RE in India’s electricity generation mix (%) 32 RE capacity added in FY25 (GW) 29.52 23.83 Solar 4.15 Wind Total RE capacity added in FY25 220.1 Total installed RE capcity as of March 31 475.2 Total installed power capacity as of Mar 31 Source: MNRE, CEA power were added in April-January 2024-25. In comparison, 29.5 GW was additionally created in RE sector in 2024-25. With significant growth and initiatives underway to develop green 500 (GW) RE capacity target 2030 energy corridors, faster execution and inter-agency coordination remain critical for more effective use of RE,industry players feel. Kishor Nair, CEO of Avaada Energy, says: “The current trans- 9 FY19 13 FY24 Estimate by 2030 Source: CEEW missionnetwork,particularlyatthe intra-statelevel,lagbehindthepace of installed generation capacity, especially in renewable-rich states. There is a need for faster execution of transmission corridors, timely grid integration, and robust planning between central and state agencies to ensure renewable energyis not stranded dueto lack of evacuation infrastructure.” Naveen Khandelwal, CEO, BrightNight India observes that many distribution companies (discoms) are taking time in signing of the PPAs either in hopes of a reductionintariffsordueto“complexity” in the tender process. “India would have signed more than 25-30 GW of PPAs in the last 12to18monthsandbidforroughly 100 GW were called in the last two years. However, only 35-40 GW capacity (of PPAs) have got signed,” Khandelwal says. Continued on Page 13