Luxury Homes In Demand As Bangalore Real Estate Market Soars In 2022-2023 : CREDAI

The real estate market in Bengaluru has displayed an impressive resurgence in the financial year 2022-23. Despite the obstacles created by the COVID-19 pandemic, the city's real estate industry has exhibited a remarkable rebound.

The market has observed a noteworthy decrease in inventory while displaying an increasing demand for luxury homes. As per CREDAI Bengaluru, there has been a surge in the aspiration for larger homes while the demand for affordable housing has taken a backseat. Furthermore, the trend of ready-to-move-in properties has been gaining momentum among prospective homebuyers.

"Bengaluru’s real estate market has witnessed a significant shift towards luxury homes in FY 22-23. With a high demand for larger, ready-to-move-in properties, homebuyers are showing a willingness to invest in premium homes that offer comfort, style and luxury. This trend is expected to continue in the coming years, making luxury homes a lucrative segment for real estate developers in Bangalore,” said Bhaskar T Nagendrappa. President, CREDAI Bengaluru.

Despite the rising costs of construction, labour, statutory fees, and raw materials, the real estate sector has seen a significant growth. The desire for home ownership has been on the rise due to the uncertainty created by the pandemic, resulting in a surge of investments in the real estate sector.

Post pandemic, the psychology of homebuyers has shifted significantly towards luxury homes. According to CREDAI, the uncertainty and upheaval caused by the pandemic have made people prioritize their mental health and well-being, leading them to seek comfort and security in their homes. This trend is not just limited to those with high disposable incomes, but also those with more modest budgets. The pandemic has made people realize the importance of having a home that can serve multiple purposes, such as a workspace, gym, and entertainment center.

"The pandemic has altered the way we look at our homes. People are now seeking more than just a place to live - they want a sanctuary that can cater to all their needs. Luxury homes are designed to offer just that - a space that is not just aesthetically pleasing but also functional and equipped with state-of-the-art amenities. The shift towards luxury homes is not just a passing trend, but a reflection of a broader change in the way people view their homes. The pandemic has accelerated this trend, but it is likely to continue even after the pandemic subsides,” he said.

The sector has also witnessed an upswing due to the drop in interest rates and higher savings among potential homebuyers. These factors have collectively contributed to the growth and sustainability of the real estate market.

"The pandemic has redefined the role of our homes, from mere living spaces to multifunctional sanctuaries. It has been transformed into hospitals, offices, restaurants, and entertainment venues. This shift, combined with reduced expenditures and increased savings, has empowered individuals to invest in their dream homes,” he said.

The IT/ITES sector has emerged as the major homebuyer in Bangalore. People prefer staying closer to their offices due to the city's heavy traffic. The most sought-after locations by the home buyers are xxx, xxxx, xxx. (Need the locations from CREDAI).

Real estate companies are turning to digital and social media platforms to connect with potential homebuyers. Technology is also being implemented by developers to elevate the living experience of homeowners. From using AI to analyze data to incorporating mechanical tools like vacuum cleaners and monitoring devices for plant inventory, real estate brands are enhancing the customer service experience. These tools simplify home management processes while increasing efficiency, resulting in a more streamlined and customer-friendly experience. This technological transformation in the real estate industry has provided homeowners with more convenient and hassle-free ways to manage their homes.

On the encouraging outlook for the Bangalore real estate market in FY 22-23, Nagendrappa, said, "Despite the challenges, the real estate market in Bengaluru has shown resilience and growth potential. The sector's customer-centric approach and adoption of innovative technologies have contributed to the market's success. We are optimistic about the future of the Bangalore real estate market."

CREDAI BENGALURU

Established in 1999, CREDAI Bengaluru are the organisers of the Real Estate sector for the Bengaluru Chapter. With 233 dedicated, reputed members, it has been key in making Real Estate more authentic and simple.CREDAI Bengaluru is part of State Level Federation and National Confederation. CREDAI Bengaluru work towards creating a more transparent, corruption free market for both builders and consumers.CREDAI Bengaluru closely work with government representatives, policy makers, investors, finance companies, consumers and Real Estate professionals.

For more details log on to https://www.credaibengaluru.com/

The International Global Health Advisory Board Meeting Was Hosted By Manipal Academy of Higher Education (MAHE)

Manipal Academy of Higher Education (MAHE), India conducted the International Advisory Board of the Global Health program on 15th and 16th April 2023 followed by the Global Health Symposium.

The board is meeting under the aegis of MAHE and the occasion was graced on 15th April 2023 by Lt Gen (Dr) MD Venkatesh, Vice Chancellor, Dr. Sharath Kumar Rao K, Pro Vice Chancellor- Health Sciences, Dr Giridhar Kini P, Registrar, Dr. Karunakar Kotegar, Director – International Relations and, Dr. Helmut Brand, Director – Prasanna School of Public Health.  The meeting was chaired by Dr. Thijs Teeling, Director, Covalence, with representation from seven partner universities, including Canada, Netherlands, Norway, Colombia, Thailand, India and Sudan. 

Dr. Thijs Teeling is presiding over the meeting and stated: “I am very happy to be in Manipal and grateful to MAHE for hosting the board and students for the symposium. I am impressed by the preparation and coordination of the events and am looking forward to meeting the students at the Symposium. To this point, the meeting has been a great success.” 

Video greetings to the board and MAHE leadership were presented from the President of Maastricht University, Prof. Dr. Rianne Letschert and the Dean and Vice-President, Faculty of Health Sciences, McMaster University, Prof. Dr. Paul M. O’Byrne.  The Global Health International Consortium website and logo were presented by Dr. Agnes Meershoek from Maastricht University which was applauded as a step in the right direction. 

Lt. Gen. MD Venkatesh, the Vice Chancellor of MAHE stated: ‘Global health is of paramount importance and is in accordance with the vision of the founder, Dr. TMA Pai who had worked towards the provision of quality healthcare, education and development.”  He also emphasized that the deliberations of the Advisory Board and the development of a website dedicated to the Consortium for Global Health were in line with the theme of India's G20 Presidency - “Vasudhaiva Kutumbakam” or “One Earth. One Family. One Future.”

During the meeting, the guest speaker was Maj. Gen. (Dr. Prof.) Atul Kotwal SM, VSM (Retd)., Executive Director, National Health Systems Resource Centre (NHSRC), Ministry of Health & Family Welfare, Government of India, and he provided comprehensive insights on the topic of ‘Global Health Leadership and Partnerships in Health System Strengthening Efforts’ emphasizing the example of India’s efforts towards equity with impacts on the local and global platforms.

Following the Advisory Board Meeting, the annual Global Health Symposium will take place between 16th-28th April, 2023 bringing together over 300 students and 37 faculty from partner institutions.

MakeMyTrip Now Opens A Franchise Store In Yelahanka

MakeMyTrip, India's leading online travel company, has opened a new franchise store in Yelahanka. The Yelahanka outlet is MakeMyTrip’s eleventh in the state of Karnataka. The franchise network expansion is part of MakeMyTrip’s broader strategy to serve customers in the top 100+ cities of India. The franchise network will help serve those customers who may be more comfortable talking to someone they trust.

Karnataka is a key holiday package market for MakeMyTrip, contributing almost 10% in bookings. Maldives, Thailand, and Dubai are the top three overseas destinations booked from Karnataka. Ooty, Mysore, Coorg, Munnar, Manali, Shimla, Chandigarh, and Port Blair are some of the preferred destinations in India.

Commenting on the development, Jasmeet Singh, Business Head, Holidays & Experiences, MakeMyTrip, said, "We are delighted to have a physical interface in Yelahanka with the opening of a new store. We aim to build a hyper-local marketing connection by leveraging our partners to build travel communities in cities like Yelahanka. The initial reaction to the initiative has been positive. We have also invested in technology and training to ensure the service remains consistent across all franchises.”

Abishek, Partner MakeMyTrip Franchise Store in Yelahanka, said, “We are excited to work closely with MakeMyTrip and leverage the pool of technology-led resources for the benefit of travellers in Yelahanka. Our team has already started learning to utilize MakeMyTrip's proprietary tool, 'MMTOne,' which creates an itinerary based on any query within seven minutes. We have also been exposed to the e-learning management system, 'ILearn,' for on-platform certifications.”

About MakeMyTrip’s Holiday Packages

The online platform targets varied traveler segments with distinctive packages such as honeymoon, exclusive tours for women, itineraries designed for solo travelers, families with kids, and those who are young at heart. In international, MakeMyTrip has options for leading international destinations, including and not limited to Australia, Bhutan, Dubai, Europe, Greece, Indonesia, Maldives, Mauritius, Nepal, New Zealand, Singapore, Switzerland, Sri Lanka, Russia, Thailand, and the United States of America. In the domestic market, MakeMyTrip offers tailor-made packages for destinations from all over India, including popular ones such as Andaman, Kerala, Rajasthan, Kashmir, Ladakh, and Uttarakhand.

About MakeMyTrip:

MakeMyTrip Limited is India's leading online travel company. We own and operate well recognized online brands, including MakeMyTrip, Goibibo and redBus. Through our primary websites, www.makemytrip.com, www.goibibo.com, www.redbus.in, and mobile platforms, travellers can research, plan and book a wide range of travel services and products in India as well as overseas. Our services and products include air ticketing, hotel and alternative accommodations bookings, holiday planning and packaging, rail ticketing, bus ticketing, car hire and ancillary travel requirements such as facilitating access to third-party travel insurance and visa processing.

We provide our customers with access to all major domestic full-service and low-cost airlines operating in India and all major airlines operating to and from India, a comprehensive set of domestic accommodation properties in India and a wide selection of properties outside India, Indian Railways, and all major Indian bus operators.

Worldline’s ‘India Digital Payments Annual Report 2022’ Out Now

Worldline, a global leader in payment services, has published the -‘India Digital Payments Annual Report' for 2022 today. The report encapsulates important payment trends of the industry for the calendar year 2022 and has derived some unique insights.

How India Pays?

In 2022, payment modes like UPI, Debit and Credit cards, Prepaid Payment Instruments – Mobile and Prepaid cards processed 87.92 billion transactions worth INR 149.5 trillion.

It is evident that UPI Person-to-Merchant (P2M) and Person-to-Person (P2P) are the most preferred payment modes among consumers with a market share of 40% and 44% in terms of transactions volume (UPI was 84% in total). However, in terms of value, UPI P2M accounted for 18% share whereas UPI P2P accounted for 66% of digital transactions by value (UPI was 84% in total). It should be noted that P2P transactions are not necessarily payments and can also be potentially money transfers among people. 

This is followed by payment through credit and debit cards which accounted for 7% in volume and 14% in value. The adoption of credit cards is growing at a healthy pace as it has long been a preference of customers when it comes to high ticket size transactions and is evident in the chart (on right) that highlights the Average Ticket Size of all payment modes.

Speaking on the digital payments annual report, Mr Ramesh Narasimhan, CEO, Worldline India said, “I am amazed every day to see the incredible progress we have made in the digital payments ecosystem over the past few years. The adoption of multiple payment solutions is a boon in our journey to realize the dream of a less-cash India. 

The year 2022 witnessed an ever increasing adoption of digital payments, with UPI leading the way. Popular payment instruments like UPI, cards, PPIs were already clocking over INR 149.5 trillion worth of digital transactions in 2022. In 2023 and beyond, Worldline will continue to collaborate with our merchants, partner banks, fintechs, ecommerce players and invest in the technology and infrastructure needed to build a more inclusive and open financial ecosystem.

I am glad to present to you Worldline’s India Digital Payments Report covering key insights from the previous year. i.e. January till December 2022.”

Unified Payments Interface (UPI)

In the year 2022, UPI clocked over 74.05 billion transactions in volume and INR 126 trillion in terms of value. Its transactions volume and value almost doubled since last year as it recorded 91% increase in volume and over 76% increase in value in Year 2022 as compared to Year 2021.

As of year 2022, the top 5 UPI Apps in terms of volume and value were PhonePe, Google Pay, and Paytm Payments Bank App, Amazon Pay and Axis Bank while top Remitter and Beneficiary Banks are highlighted below:

Merchant Acquiring

As of December 2022, the total number of POS terminals deployed by merchant acquiring banks breached the 7.55 million mark; a 37% YoY growth. Private Sector Banks are dominating the space with 74% market share while Public Sector Banks account for 18%. Payments Banks and Foreign Banks continue to have a 7% and 1% market share respectively. The top POS deployers were HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, RBL Bank, Paytm Payments Bank, IndusInd Bank covering 92% market share as of December 2022.

Card Issuance

The total number of credit and debit cards in circulation by end of year 2022 was 1.02 billion. The number of outstanding credit cards increased by 18% from 69 million in December 2021 to 81.1 million in December 2022 while outstanding debit cards increased by 0.2% from 938 million to 939.4 million during the same period.

In the year 2022, credit cards volume and value stood at 2.76 billion and INR 13.12 trillion respectively. The number of credit card transactions at POS accounted for 1.47 billion while e-commerce was 1.29 billion. In terms of value, consumers transacted INR 5.1 trillion at POS and INR 8.1 trillion on e-commerce transactions via credit cards in the year 2022.

In Year 2022, debit card transactions volume and value stood at 3.64 billion and INR 7.4 trillion respectively. Out of the total debit card volume, transactions at POS accounted for 2.38 billion while transactions at e-commerce was 1.26 billion. In terms of value, INR 4.85 trillion was processed at POS terminals while INR 2.56 trillion was processed at e-commerce via debit cards.

Prepaid Payment Instruments

By December 2022, number of prepaid payment instruments were 16.23 billion. Out of which, 13.34 billion were wallets and 288.8 million were cards. 

NETC Fastag

In the year 2022, NETC processed about 3.25 billion transactions worth INR 509.11 billion. The transactions volume increased by 31% while value increased by 37% as compared to the Year 2021. As of December 2022, total number of banks live with NETC FASTag were 36.

Bharat Bill Pay

The transactions volume passing through Bharat Bill Payment Central Unit (BBPCU) in Year 2022 stood at 985.7 million while the transactions value was INR 1.70 trillion. It registered a growth rate of 75% and 83% in volume and value respectively as compared with year 2021.

Aadhar Enabled Payment Service (AePS)

In the year 2022, AePS transactions recorded a substantial volume of over 2.63 billion transactions in volume and INR 3.42 trillion in value.  It registered about 24% growth in volume and 20% in value over year 2021. AePS is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication.

Worldline India Insights

In 2022, frequently visited physical merchant categories like grocery stores, restaurants, clothing and apparel, pharmacy and medical, hotels, jewelry retail, specialty retail, household appliances and departmental stores together accounted for over 43% in terms of volume and about 40% in terms of value.

In the online space, e-commerce (shopping for goods and services), gaming, utility and financial services contributed to over 85% transaction in terms of volume and 25% in terms of value. Education, Travel & Hospitality sector contributes to the remaining 15% & 75% in terms of volume and value respectively.

The top 10 states & UT with the highest transactions for at physical touch points in 2022 for Worldline India were Kerala, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Delhi,  Telangana, Gujarat, West Bengal, and Punjab.

Whereas the top 10 cities with the highest number of transactions at physical touch points in 2022 for Worldline India were Bengaluru, New Delhi, Mumbai, Pune, Chennai, Hyderabad, Ernakulam, Thiruvananthapuram, Thrissur, and Coimbatore

Kingdom of Dragons Experiential Project At Vega City Mall

* The Kingdom of Dragon will be at Vega City Mall till  7th May 2023

For all the kids and adventure-seekers, here’s an opportunity to explore the Kingdom of Dragons. Embark on a magical adventure, the incredible indoor jungle display featuring life-size dragons along with dragon eggs. The Dragons spew simulated realistic flames with smoke, which adds to the total experience and gives it a natural look and feel. Movements include head, eye, jaws, natural roaring sound, flapping of wings and more.

Information boards are placed next to the dragons, this will help the kids gain insight and to be aware/ learn more about these fascinating mythical creatures.

Weekends are filled with fun activities and games, theme-based workshops, dragon walkabout and more 

The Kingdom of Dragon will be at Vega City Mall till  7th May 2023

That’s not all! Kidzania – Summer fiesta bring to you, Shop & Win. Shop at our Kids specific stores and get a change to WIN Exciting gift vouchers and Wonderla tickets.  Head down to Vega City Mall, to shop for the colorfull dresses for your li'l ones now. 

Infosys Ltd; Disappointing Quarter Misses Revenue Margins

BUY

CMP: Rs1389  

Target Price: Rs1620

Infosys reported disappointing operating performance in Q4. Unplanned ramp down of projects, delay in decision-making and some one-off revenue impacts, including a few client-specific project cancellations, hit revenue growth in Q4, leading to the revenue-guidance miss. Mgmt highlighted weakness in parts of BFSI (mortgage, asset management, and investment banking), telecom, retail, and hi-tech which subdued growth. Among geographies, USA is more impacted than Europe. Infosys has guided for 4-7% YoY CC revenue growth for FY24, implying 1.7-2.9% CQGR over the next four quarters. After missing revenue growth guidance for FY23, Infosys is likely to guide conservatively for FY24, given increased caution in spending by clients and prevailing macro uncertainties; but the asking rate at the upper-end appears to be demanding and may require support of some mega-deal closures during FY24. Mgmt has guided for 20-22% EBITM for FY24 which is 100bps lower than the guided margin range at beginning-FY23. Despite near-term challenges posed by the tough macro environment, we believe Infosys is well positioned to capture the growth opportunities across digital transformation, cost efficiency and consolidation-led deals over the medium term. We cut our EPS by 4.4-6.3% for FY24E/25E, factoring-in the disappointing Q4. We maintain BUY on the stock, with revised TP of Rs1,620/share (earlier, Rs1,700) at 22x Mar-25E EPS.

Result summary: Revenue declined by 2.3% QoQ to USD4.55bn (-3.2% QoQ/+8.8% YoY CC), below our expectations of USD4.71bn. EBITM declined by 50bps QoQ to 21.0%, coming in 70bps below our expectation, on account of lower utilization (-70bps), a one-time revenue impact (-90bps) – partially offset by cost optimization (+50bps), and reduction in provisions for post-sales client support (+60bps). Adj. profit stood at Rs61.3bn, below our expectations due to the miss in operating performance. Growth was led by Retail (2.5% CC QoQ) and Others (15.1%), while Communication (-11.2%), Hitech (-7.1%), BFSI (-3.7%), Life sciences (-3.6%), EURS (-3.5%), and Manufacturing (-1.2%) posted a weak performance. Based on Infosys’ deal intake, deal pipeline including a few mega deals, and current assessment of the evolving macro situation, Management has guided for 4-7% YoY CC revenue growth in FY24. What we liked: Strong FY24 revenue growth guidance, moderation in attrition (LTM attrition down 340bps QoQ to 20.9%/quarterly annualized attrition down by >400bps QoQ), steady deal intake, healthy cash generation (73.5% OCF/EBITDA in Q4). What we did not like: Operating performance miss in Q4, lower-than-expected margin guidance.

Earnings call KTAs: 1) Company highlighted that it is witnessing increased client interest for efficiency, cost and consolidation opportunities, resulting in a strong large-deal pipeline. 2) Management indicated that Company’s exposure to regional banks is <2% of revenue. Macro uncertainties, softness in mortgage, asset management and investment banking are weighing on BFSI demand. A strong deal pipeline gives growth visibility for FY24. 3) Discretionary spend in Retail continues to be under pressure, while Manufacturing is showing resilience on the back of large-deal ramp-ups and benefits in vendor consolidation. 4) Company indicated that currently, North America presents a more challenging operating environment than Europe. 5) Owing to softness in demand, utilization in Q4 stood at 80% (excluding trainees), which the company expects to gradually improve. 6) The headcount declined by 3,611 employees in Q4. Management indicated calibrated hiring in FY24 meeting growth & margin aspirations. 7) Infosys signed 17 large deals with a combined TCV of USD2.1bn (21% net new) in Q4, split across geographies (10 in North America and 7 in Europe) and verticals (5 in Manufacturing, 4 in BFSI, 3 in Communication, 2 each in Life sciences and Hitech, and 1 in EURS). 8) Company guided for the mid-point of FY24 EBITM to be closer to the FY23 EBITM, to retain flexibility. Higher utilization, flattening pyramid, subcon optimization, improving realization, and automation-led efficiencies remain the key margin levers. 9) Company declared final dividend of Rs17.5 per share.

Godrej Interio Partners With IIT- Bombay To Create State-Of-The-Art Laboratory

~ Aims to grow market share in the laboratory business by 25% by FY28

Godrej Interio, India’s leading furniture solutions brand in home and institutional segments, successfully revamped IIT Bombay’s ‘Class of 1980 Design and Making Lab’. The idea behind this revamp was to provide state-of-the-art facilities, empower research-based education and revolutionize learning practices for students. Some of the unique innovative furniture solutions like modular furniture, fume hood, lab storage, MEP services & turnkey projects form a core part of the lab’s revamping. Godrej Interio is currently executing similar projects for state medical colleges, research institutes and government institutes across India.

The refurbished lab is an important component of the Institute's larger #MakerSpace programme that aims to provide students with a comprehensive education through exposure to state of the art thematic labs. The lab revamp was largely adapted from the recommendations made under the updated National Education Policy, that emphasised hands-on experimental-based learning. It will give young pioneers at IIT Bombay the opportunity to study modern design and production processes at the start of their academic careers. Godrej Interio designed the space and installed specialised laboratory furniture and modular workstations at the Class of 1980 Design and Making Lab.

Commenting on this successful execution, Sameer Joshi, Vice President, Marketing (B2B), Godrej Interio, said, “We’re happy to have partnered with IIT Bombay to help build a state-of-the-art lab for young and aspiring students that will further their dreams of becoming pioneers for the nation. At Godrej Interio, we plan to grow our market share in our laboratories business by 25% over the next 5 years. Through our offerings of specialized turnkey solutions, domain knowledge and design excellence, we plan to cater to esteemed educational and research institutes enabling enhanced learning.”

Prof. Ravindra D. Gudi, Dean, Alumni & Corporate relations, IIT Bombay shared his experience with the Godrej Interio team, saying, “I am thrilled to see our laboratory space come to life with the design excellence from Godrej Interio. The innovative designs and superior quality have truly transformed the space students will study in. We are delighted to see our laboratory space being revamped by Godrej Interio, a pioneer in modernizing the laboratory space. The design idea followed during the project will also act as a model for other institutes across the country to align with the tenets of the National Education Policy.”

About Godrej Interio:

Godrej Interio is India’s leading premium furniture brand in both home and institutional segments with a strong commitment to sustainability and centers of excellence in design, manufacturing and retail.

Led by the largest in-house design team in the country in the furniture category and awarded with 34 India Design Mark Awards till date, GODREJ INTERIO aims to transform spaces with its thoughtfully designed furniture to create brighter homes and offices with products that have the highest design quotient in aesthetics, functionality, and technology. With consistent pursuit of excellence and a special focus on health and ergonomics, GODREJ INTERIO’s product portfolio comprises of a wide range of solutions.

Today, Godrej design and manufacture furniture for office spaces, homes, educational institutes, healthcare facilities, laboratories and more. Along with furniture, the company offers Audio Visual and 360 Degree Turnkey solutions. Each of our product range revolves around comfort and aesthetics while delivering well-designed, long lasting, and functional furniture solutions. In short, Godrej Interio helps the consumers to make every space the perfect setting for their myriad moods and moments.

Currently present in over 450 cities with 450 exclusive showrooms and 520 dealer outlets, is one of the largest divisions of Godrej & Boyce Mfg. Co. Ltd., part of the Godrej Group, one of India's largest engineering and customer product groups.

Godrej Interio has 7 manufacturing facilities situated at Mumbai, Khalapur, Haridwar, Shirwal, and Bhagwanpur. GODREJ INTERIO is widely known for its comprehensive sustainability certifications for its products in furniture category.