HDFC Life Achieves 18% VNB Growth Driven By 31% Growth In Individual APE, 22% Increase In Number Of Policies

The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2024. The company has reported significant growth across several key metrics, setting a positive momentum for the fiscal year.

Commenting on the results, Ms. Vibha Padalkar, MD & CEO, HDFC Life, said, “We have started the year on a strong note, achieving 31% YoY growth in individual APE, which implies a two-year CAGR of 21%. This robust growth is driven by a comprehensive performance across all metrics.

We welcome the positive impact of IRDAI's progressive reforms that are expected to significantly strengthen the life insurance proposition in India, making it simpler, more transparent and ultimately more attractive to prospective customers”

Key Highlights:

Market Share Expansion: Private market share expanded from 16.4% in Q1FY24 to 17.1% in Q1FY25, and the overall market share in Individual WRP increased to 11.4%

Retail Sum Assured Growth: Achieved 46% growth, bolstered by higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection

Profit After Tax: Grew by 15% to Rs 478 crore, with a growth in backbook surplus of 18%

Assets Under Management (AUM): Surpassed Rs 3 lakh crore, with a growth of 22%

Geographic Growth: Strong topline growth recorded across Tier 1, 2, and 3 geographies

Bonus Declaration: Declared highest ever bonus of Rs 3,722 crore, to more than 22 lakh par policyholders

HDFC Life registered a strong increase in the number of policies and witnessed expansion in ticket size as well. The company’s growth outpaced both the private sector and overall industry, both on a YoY and a two-year CAGR basis. Growth resurgence was experienced in Tier 1 markets whilst maintaining strong growth in Tier 2 and 3 geographies, which continue to account for a significant portion of the business.

Product Mix: ULIPs accounted for 38%, non-par savings for 35%, participating products for 16%, term for 6%, and annuities for 5%, based on individual APE. The ULIP mix was initially elevated, but moderated during the 2 quarter with the launch of products across other categories. Non-par products bounced back, clocking a 41% YoY increase. The latest Click2Achieve variant garnered Rs 100 crore of new business in merely 16 days.

Value of New Business (VNB): Q1 VNB was Rs. 718 crore, reflecting a healthy 18% growth both YoY and on a two-year CAGR basis. The substantial gap in financial protection across India presents a compelling growth opportunity for the life insurance sector. HDFC Life is committed to securing India's future through innovative insurance solutions.

Definitions and abbreviations

Annualized Premium Equivalent (APE) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups

Assets under Management (AUM) - The total value of Shareholders’ & Policyholders’ investments managed by the insurance company

Embedded Value Operating Profit (EVOP) - Embedded Value Operating Profit (“EVOP”) is a measure of the increase in the EV during any given period, excluding the impact on EV due to external factors like changes in economic variables and shareholder-related actions like capital injection or dividend pay-outs

First year premium - Premiums due in the first policy year of regular premiums received during the financial year. For example, for a monthly mode policy sold in March 2024, the first monthly instalment received would be reflected as First year premiums for 2023-24 and the remaining 11 instalments due in the first policy year would be reflected as first year premiums in 2024-25, when received

New business received premium - The sum of first year premium and single premium, reflecting the total premiums received from the new business written

Operating expense - It includes all expenses that are incurred for the purposes of sourcing new business and expenses incurred for policy servicing (which are known as maintenance costs) including shareholders’ expenses. It does not include commission

Operating expense ratio - Ratio of operating expense (including shareholders’ expenses) to total premium

Operating return on EV - Operating Return on EV is the ratio of EVOP (Embedded Value Operating Profit) for any given period to the EV at the beginning of that period

Persistency - The proportion of business renewed from the business underwritten. The ratio is measured in terms of number of policies and premiums underwritten

Premium less benefits payouts - The difference between total premium received and benefits paid (gross of reinsurance)

Renewal premium - Regular recurring premiums received after the first policy year

Solvency ratio - Ratio of available solvency margin to required solvency margin

Total premium - Total received premiums during the year including first year, single and renewal premiums for individual and group business

Weighted received premium (WRP) - The sum of first year premium received during the year and 10% of single premiums including top-up premiums

About HDFC Life

Established in 2000, HDFC Life is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. The Company has more than 80 products (including individual and group products) and optional riders in its portfolio, catering to a diverse range of customer needs.

HDFC Life continues to benefit from its increased presence across the country, having a wide reach with branches and additional distribution touch-points through several new tie-ups and partnerships. The count of distribution partnerships is over 300, comprising banks, NBFCs, MFIs, SFBs, brokers, new ecosystem partners amongst others. The Company has a strong base of financial consultants.

For more information, visit www.hdfclife.com.You may also connect with us on Facebook, X (formerly Twitter), YouTube, and LinkedIn.

Tata Motors ‘Automotive Skill Labs’ Initiative Nurtures Over 4000 Students Annually With Future-Ready Automotive Skills

* Empowering Youth from Marginalised Communities for a Brighter Automotive Future

* 30% Enrolment by Girls Highlights Gender-Inclusive Approach

Reaffirming its commitment to nurturing talent and creating a skilled workforce for the automotive industry, Tata Motors’ in collaboration with Navodaya Vidyalaya Samiti (NVS) has established dedicated ‘Automotive Skill Labs’ at Jawahar Navodaya Vidyalayas (JNVs). To date, 25 labs, fully equipped with essential tools, have been set up across select JNVs in Maharashtra, Karnataka, Gujarat, Jharkhand, West Bengal, Uttar Pradesh, and Uttarakhand.  This unique industry-academic joint initiative equips approximately 4000 students annually with practical automotive skills, with 30% of students enrolled being girls.

Aligned with the vocational courses envisioned in the ‘National Education Policy 2020’, Tata Motors’ ‘Automotive Skill Labs’ focuses on providing secondary and senior secondary students (studying in 9th to 12th standard) with essential subject knowledge, hands-on skills, and valuable industry exposure—all within the school premises. Additionally, students can visit Tata Motors’ plants, interact with service and dealership professionals, and attend lectures by industry experts to gain real-world experience and deepen their knowledge. Furthermore, instructors teaching at these labs are provided with the necessary training at the company’s plant locations. A testament to this immersive learning experience is an E-Rickshaw constructed by the students at the Skill Lab in Pune.

Upon successful completion of the programme, students receive joint certificates from Tata Motors and NVS. Post-schooling, the students can opt for a Diploma in Manufacturing Technology, including a full stipend and on-the-job training at Tata Motors’ manufacturing facilities. Alternatively, those interested in continuing with Tata Motors can pursue a BTech in engineering—a 3.5-year executive education programme in collaboration with select engineering institutes—leading to permanent employment after five years.

Emphasizing the commitment to enriching the lives of youth and bridging the skills gap in the automotive industry, Vinod Kulkarni, CSR Head, Tata Motors, said, “Our Automotive Skill Labs empowers youngsters from the underserved communities with employable skills, relevant for the evolving automotive sector in India. It creates pathways for students in grades 9th – 12th to pursue higher education and secure employment opportunities. Contributing to the ‘Skill India Mission’, this programme instills innovative thinking, entrepreneurial spirit, analytical mindset and critical communication skills amongst the students. The response from girl students has strengthened our commitment to empower future leaders who will contribute to India’s prominence on the global stage as envisioned by Viksit Bharat @2047.”

In 2023, over 1,600 students from this programme participated in the National Automobile Olympiad organised by the Automotive Skill Development Council (ASDC), out of which 17 succeeded in reaching the second stage of the competition.

About Tata Motors:

Part of the USD 150 billion Tata group, Tata Motors Limited (BSE: 500570 and 570001; NSE: TATAMOTORS and TATAMTRDVR), a USD 44 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups,  trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. With ‘Connecting Aspirations’ at the core of its brand promise, Tata Motors is India’s market leader in commercial vehicles and ranks among the top three in the passenger vehicles market.

Mr. Keki Mistry - Chairman’s Speech at HDFC Life’s 24th Annual General Meeting in Mumbai on 15th July 2024

* State of Global and Indian Economy

The financial year 2023-24 presented significant challenges for the global economy. Multiple macroeconomic and geopolitical trends continued to create widespread uncertainty. From inflationary pressures to regulatory shifts and geopolitical tensions, the factors collectively shaped a challenging environment for businesses worldwide.

To tackle inflation, major central banks brought about a restrictive monetary policy stance in their economies, which led to economic slowdown. Despite the slowdown in the developed economies as well as in some of the emerging markets, India by contrast displayed remarkable resilience. Domestic economic activity remained strong, as evident from positive indicators such as strong credit growth, Tax and GST collections, e-way bills, rail freight traffic, and air passenger traffic, among others.

Against the uncertain global backdrop, India has increasingly been in the spotlight for being the fastest growing major economy. 

I am extremely optimistic about the future of our economy. India’s economic growth has surpassed global expectations as it was better able to manage its economy due to a confluence of factors such as sound government policies, strong macro-economic fundamentals, inherent domestic demand, timely regulatory interventions, and continued reforms which have ensured India’s long-term growth.

India’s GDP grew by a whopping 8.2% for FY24 and is projected to grow at 7.2% in FY25. This compares with a GDP growth of around 4% for all emerging markets and even lower for the developed world.

The onset of the Russia Ukraine war in early 2022 saw spiraling oil prices and inflation started hitting the Indian economy from April 2022. RBI successfully reigned in inflation through a series of calibrated measures.

Core Inflation has largely been reigned in and stood at 3.13% in June 2024.

In my opinion, both the government as well as the RBI did a truly outstanding job in managing the economy during the last 4 years. This has contributed significantly to making India the fastest growing major economy in the world.

Life Insurance Industry

Let me now come to the life insurance industry. The life insurance industry in India grew by 2% both in terms of new business premium as well as number of policies during FY24. Private Insurers grew by 12% on premium basis and 9% in terms of number of policies during the year. The new business premiums of Indian life insurers reached a record high of Rs 3.78 Lakh crore for the year ending March 2024.

Opportunity for Life Insurance in India

According to Swiss Re, India is one of the fastest growing insurance markets in the world and is forecasted to be the 6th largest market by 2032 ahead of Germany, Canada and South Korea. Currently, we are the 10th largest insurance market.

Being a largely under-insured market, India has huge potential for growth. The overall life insurance penetration in India is fairly low at 3.2%.

Given the low insurance penetration in the country, expansion into Tier 2 and Tier 3 cities is expected to further drive growth.

In the past couple of years, the regulator has been driving the objective of “Insurance for All by 2047”. Some of the noteworthy regulatory initiatives include:

Increased commercial and operational flexibility due to Expenses of Management

Increased limits of raising sub debt

The Bima Trinity of Vistaar, Vahak and Sugam

Introduction of state level insurance committees and

Allowing insurers to open new branches without needing prior approval of the regulator and more recently, offering increased payouts in case of early policy surrenders by customers.

IRDAI may also consider implementing a risk-based supervision model, like in the banking industry. It will lay down principles for management of operational, market and governance risk; and the insurance companies will be responsible for monitoring the same.

These regulations would increase ease of doing business, encourage development of longer-term products, and improve persistency, thereby creating value for customers.

HDFC Life Performance Update

During the year, your Company recorded a growth of 11% on a normalized basis, and a growth of 1% on an unadjusted WRP basis. Growth in ticket sizes up to Rs. 5 lakh was a robust 19% in FY 24.

HDFC Life recorded a market share of 15.4% amongst the private sector companies and an overall market share of 10.4%. Your company has consistently ranked amongst the top three players in the industry. Our AUM stood at Rs. 2.92 lakh crore and our embedded value stood at Rs. 47,468 crores, as on March 31, 2024. Our solvency ratio was healthy at 187% and our new business margin for the year was 26.3%. We witnessed a 47% growth in individual sum assured, aided by growth in pure term products, return of premium products and higher protection cover embedded in savings and investment plans.

We deepened our customer base by insuring more than 6.6 crore lives during FY24. More than 70% of the retail customers on-boarded are new to HDFC Life and almost half of these are below 35 years of age. In-line with our stated intent to broaden the customer base, the number of policies issued during the year increased by 11%.

Renewal collections grew by 18% y-o-y, demonstrating our customers’ continued trust in us. 13th month and 61st month persistency was at 87% and 53% respectively.

Subsidiaries Update

Our subsidiary, HDFC Pension Management Company Limited, achieved a milestone by crossing the Rs. 75,000 crore AUM mark, delivering a remarkable growth of 70%. We have maintained our market leadership in the pension category, commanding a market share of 43% in the retail and corporate segment.

Additionally, we are actively pursuing our expansion plan for the gift city business through our subsidiary, HDFC International Life and Re Company Ltd. With the introduction of innovative, US dollar denominated life and health insurance products like US dollar global education plan and global student health care plan we are making strides in penetrating the NRI segment.

Conclusion

Let me conclude by saying that at HDFC Life, we have gained invaluable experience over the years having successfully navigated several different business cycles. We have consistently invested in our product innovation and distribution capabilities and as a result, we have built a diversified distribution franchise that is able to sustain growth and profitability consistently.

Our objective is to capitalize on the macro-opportunities by expanding our presence in a calibrated manner, as well as building a future-ready business through tech-led transformation of our entire activity system to offer best-in-class experience to our customers.

I would like to take this opportunity to express my gratitude to our valued customers for placing their trust in us.

Additionally, I extend my thanks to all our dedicated employees, whose unwavering commitment and hard work has been instrumental in our success. I also want to acknowledge the support of our shareholders and the empowerment provided by IRDAI to the industry. Last but not the least I would like to thank our directors for their guidance throughout the year.

About HDFC Life

Established in 2000, HDFC Life is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. The Company has more than 80 products (including individual and group products) and optional riders in its portfolio, catering to a diverse range of customer needs.

HDFC Life was promoted by erstwhile Housing Development Finance Corporation Limited (HDFC Ltd.), and Abrdn (Mauritius Holdings) 2006 Limited (abrdn) (formerly Standard Life (Mauritius Holdings) 2006 Limited), a global investment company. Consequent to implementation of the Scheme of Amalgamation of HDFC Ltd. with HDFC Bank, India’s leading private sector bank (“Bank”), the Bank has become promoter of the Company, in place of HDFC Ltd, effective from July 1, 2023. Further, consequent to reclassification of abrdn from “Promoter” category to “Public” category in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, HDFC Bank has become sole promoter of the Company, effective December 12, 2023.The name/letter 'HDFC' in the name/logo of HDFC Life Insurance Company Limited (HDFC Life) belongs to HDFC Bank Limited.

HDFC Life continues to benefit from its increased presence across the country, having a wide reach with branches and additional distribution touch-points through several new tie-ups and partnerships. The count of distribution partnerships is over 300, comprising banks, NBFCs, MFIs, SFBs, brokers, new ecosystem partners amongst others. The Company has a strong base of financial consultants.

For more information, visit www.hdfclife.com. You may also connect with us on Facebook, Twitter, YouTube and Linkedln.

PSG Coimbatore Becomes The First Hospital In India To Perform 10 Successful Robotic-Assisted Surgeries Within 24 Hrs

*      The 10 robotic-assisted surgeries included 9 general surgeries and one uterine cancer surgery

*         All patients who underwent robotic-assisted surgery were discharged within 4 days

*        India has been witnessing an enhanced adoption of robotic surgery, even in non-metro cities in the last decade

PSG Hospital, a leading multispecialty hospital in Coimbatore, became the first hospital in India to perform 10 successful robotic-assisted surgeries within 24 hours. The 10 surgeries included three procedures for the treatment of hernia, six procedures for the removal of gall bladder, and one surgical procedure for uterine cancer. The nine general surgeries conducted were performed by Dr. S Rajesh Kumar, Professor and Senior Consultant, and Dr. Vishnu Varthan S, Professor and Consultant, Department of General & Gastro Intestinal Surgery. The 10th surgical procedure for uterine cancer was performed by Dr. Rajkumar K S, Professor and Senior Consultant, and Dr. Shruthii Nanjundappan, Consultant, Department of Surgical Oncology.

Since the installation of one of the advanced robotic-assisted surgery systems, da Vinci in 2022, PSG Hospital has performed many complex and intricate robotic-assisted surgeries in departments of surgical gastroenterology, cardiothoracic surgery, surgical oncology, urology, and endocrinology with enhanced precision and minimal invasiveness. 

Commenting on this achievement, Dr. Bhuvaneswaran JS, the Director at PSG Hospitals, Coimbatore said, “I congratulate our surgeons and care teams for this significant achievement. This wouldn’t have been possible without the immaculate planning and teamwork of various teams such as the surgical team, the anaesthesia team, the nursing staff, the team of surgical scrub nurses, and CSSD (Central sterile services Department) team. Their collective effort coupled with the RAS technology helped us to manage the time without causing any delay. All 10 surgeries were performed using the da Vinci system, developed by US based Intuitive. With the enhanced adoption of technology, we aim to positively change the lives of many more patients, as the treatment will become more effective and less stressful for them.” 

There are more surgeons coming up from non-metro cities as well to get acquainted with robotic-assisted surgery. The technology's rapid learning curve allows surgeons to quickly learn and gain proficiency in practicing robotic-assisted surgery. Robotic technology significantly enhances surgical efficiency and speed, enabling doctors to perform more procedures with enhanced precision.

Dr. S Rajesh Kumar, one of the surgeons who led the surgeries, “As one of the leading medical colleges in the region, we attend 50 to 60 patient cases a day and actively perform surgeries on multiple patients. Long hours of surgery can take a toll on surgeons, impacting our overall health, especially during complex and lengthy procedures. However, the ergonomic benefits of robotic-assisted surgical systems offer comfortable posture compared to traditional methods, as we can be seated at a console remote from the patient. The fingertip controls not only enhance precision but also contribute to reduce surgeon fatigue, which thereby results in potentially improved patient outcomes.”

For general surgeons, robotic-assisted technologies like Da Vinci offer multi-quadrant access with the versatility they need for a variety of abdominal procedures. It features advanced instrumentation and vision. Additionally, surgeons can utilize a greater range of motion than the human hand for their general surgery cases. Robotic-assisted surgery for hernia repair ensures precise removal of adhesions and prevents recurrence. When traditional surgical methods pose significant challenges for obese patients with high BMI, the minimally invasive nature of robotic-assisted surgery reduces the risk of complications and promotes faster wound healing.

Dr. Rajkumar K S, who led the robotic-assisted surgery for uterine cancer said, “One of the greatest surgical advancements in the last 2 decades can be attributed to robotic-assisted surgery (RAS). When we do gynecological procedures like uterine cancer surgery through open surgery, we need to make large incisions, which increases the risk of surgical site infections. However, with robotic-assisted surgery, we just need to make small incisions which helps reduce the threat of surgical site infections in these procedures and prevents other infections during the patient’s recovery. In my patients, RAS has been seen to provide less blood loss, less pain, fewer complications, shorter hospital stays, fewer re-admissions, better oncology outcomes and faster recovery depending on the type of cancer and stage.”

PSG Institute of Medical Science and Research, one of the leading multispecialty hospitals in Coimbatore provides total health care to its patients, with the highest levels of skill, professionalism, and ethical practice, leading to their effective care and treatment at affordable costs. By embracing advanced technologies like robotic-assisted surgery, and facilitating medical education and research, PSG Hospitals constantly upgrades the quality of medical practice and is committed to continuous quality improvement.

Duolingo Launches Intermediate English Course To Empower English Learners, Aiming For B2 Proficiency

To assist English learners worldwide, including in India, Duolingo, the world’s leading language-learning platform, has introduced a new intermediate English course. Available on all Android and iOS devices, this course is designed to enhance learners' English proficiency to a B2 level, providing them with advanced English skills for education and career growth.

English serves as a crucial global language, facilitating connections among people across different regions and granting access to global opportunities. According to the recent Duolingo Language Report (DLR), English is the most learned language on Duolingo across 122 countries, including India. When it comes to the average number of lessons completed daily on Duolingo, English learners in India are #1, underscoring the significant demand and importance of English proficiency in the country.

For Indian learners on Duolingo, mastering English is significant for various reasons. Education is the primary driver for 40% of Indians learning English on the platform, while other motivations include the desire to connect with people, prepare for travel, or spend time productively. Additionally, it's worth noting that 78% of Duolingo learners in India are under the age of 30, many of whom are seeking opportunities to further their studies or advance their careers. The intermediate English course aims to address these diverse motivations, helping learners on Duolingo achieve their personal and professional goals by enhancing their English proficiency. 

Karandeep Singh Kapany, Regional Marketing Director at Duolingo, stated, "English proficiency is an asset that can unlock numerous opportunities not just in India but globally. We believe the Intermediate English course will be instrumental in helping our users get closer to their language learning aspirations and realise their professional or academic ambitions. Our goal is to support their educational and professional journeys by providing them with the tools they need to excel in a globalized world."

The intermediate English course is available to learners using the app in English. In addition to English, Duolingo offers over 100 courses across 40 distinct languages, from Spanish, French, German, and Japanese, to Klingon, and can be downloaded for free from the App Store and Google Play Store.

HCL Tech: Steady Operating Performance; One-Off Gain Leads To Profit Beat

HCL Tech posted slightly better operating performance than guided by the mgmt. Revenue declined 1.6% QoQ CC due to softness in Services, primarily owing to seasonality and offshoring. EBITM fell by 50bps to 17.1%, a tad above our estimate. Net new deal-wins were healthy at USD1.96bn. The mgmt guided to broad-based QoQ growth in Q2 (ex-Financial Services, owing to divestment of the State Street JV). The mgmt is confident of growth in coming quarters, as clients continue to spend on GenAI and other emerging technologies. HCLT has retained 3-5% CC revenue growth guidance, with 18-19% EBITM for FY25. The guidance does not factor in any improvement in discretionary spends versus last year. Though the mgmt sees initial signs of the discretionary spend pullback bottoming out, it has refrained from affirming any pickup, given previous false starts. We tweak FY25-27E EPS by up to 3.3%, factoring in the Q1 operating performance and one-off gain from the divestment. We retain ADD on HCLT; we raise TP to Rs1,700/sh, at 23x Jun-26E EPS.

Results Summary

Revenue declined 1.9% QoQ (down 1.6% QoQ/up 5.6% YoY in CC terms) to USD3.36bn, broadly in line with our estimates. IT and Business Services revenue declined 1.5% QoQ CC, whereas ER&D Services fell 3.5% QoQ. Software revenue grew 0.4% QoQ. EBIT margin declined by 50bps QoQ to 17.1%, marginally ahead of our estimate of 16.9%. Among verticals, Services revenue growth was driven by Telecommunications (3.9% QoQ), Technology & Services (3.5%), Public Services (1.3%), and Retail (1.2%), whereas Manufacturing (6.8%), Financial Services (4.8%), and Life Sciences (4.4%) saw a decline. Americas grew 0.3% QoQ, whereas Europe and ROW declined 1.5% and 7.6%, respectively. Net headcount decreased 3.6% QoQ to 219,401, with a major portion of the decline being attributed to divestment of the State Street JV (adjusted for divestment, headcount declined 0.3% QoQ). The company has declared an interim dividend of Rs12/share. What we liked: In-line operating performance, healthy deal intake. What we did not like: Weakness in the non-top-20 clients (-3.4% QoQ).

Earnings Call KTAs

i) FY25 guidance anticipates no significant improvement in discretionary spending, though there are indications of the same; the management has chosen not to incorporate these due to previous experiences of false starts. ii) Deal intake was slightly lower than the management's expectations due to continued delay in decision-making in some programs. The order book consists of a mix of small and large deals. iii) ER&D declined 3.5% CC QoQ, mainly due to ramp down in the Manufacturing and softness in the Medtech verticals. iv) Life Sciences segment revenue was impacted by completion of large programs and softness in the Medtech segment. v) In Q2, the State Street transaction is likely to impact revenue by ~80bps at the company level; it will hit the Services business by ~90bps, on QoQ basis. vi) The management highlighted that the ASAP acquisition did not deliver per expectations in Q1, as EV investments are undergoing stress, particularly in Germany. Large auto OEMs have seen cut in spending due to cost pressures. vii) Manufacturing was impacted by passing-on of productivity benefits, weakness in automotive, and asset revenue declining by ~USD10mn (prominent in Manufacturing). Company expects good traction to return from Q2. viii) It has invested in training employees on GenAI and AI skills. It trained 42k employees in FY24 and plans to train ~50k employees in FY25, to take the total trained headcount to 100k by FY25-end. It has already trained ~1/3rd of the incremental requirement in Q1.

Our Focus On Premium Segment Is Driven By The Aspirational Middle Class: Embassy Group

The recent surge in real estate sales in Bengaluru, particularly in the premium housing segment, is a testament to the city's robust economic growth and positive home buyer sentiment. According to recent industry reports, the premium segment has seen a remarkable 76% annual growth, accounting for 50% of the overall sales in the first half of 2024. This trend is not only a positive indicator for the real estate market but also reflects the changing preferences of homebuyers who are increasingly seeking high-quality, premium living spaces from branded developers. Additionally, the increase in fresh supply by 9% to meet this demand is a clear sign that developers are responding to the market's needs.

“At Embassy Group, we are committed to catering to these evolving demands. Our focus on the premium segment is driven by clear market signals that this is where the volume and demand are. In the days ahead, we see the fast-rising aspirational middle class as our future customers and are poised to build for this dynamic demographic, recognising that they are at the core of the market's momentum.”,  said Reeza Sebastian Karimpanal – Executive President, Residential Business, Embassy Group.