| | OCTOBER 20238Non-banking finance companies (NBFCs) are expected to report a 20-30 percent increase in net profit in the second quarter ended September 2023, owing to strong loan disbursements, even though margins may be squeezed due to an increase in cost of funds. Emkay Global Financial Services anticipates that retail credit will continue to grow as a result of strong consumer demand and expansion into the rural market."We expect Q2 to be another good quarter for NBFCs, with disbursement and AUM growth remaining buoyant (adjusting for seasonality and the delayed festive season) in focused segments, and the collection trend and asset quality staying largely stable sequentially. A few players may see slight compression in net interest margin (NIM) on account of a marginal rise in funding cost and some asset mix change-led contraction in asset yields," Emkay said in a report.Analysts anticipate that consumer-facing sectors such as microfinance, consumer durables, and vehicle loans will lead NBFC growth, with affordable housing and gold-loan companies trailing their peers due to factors such as increased competition and a drop in gold price."While growth for affordable housing companies will continue to be healthy, larger companies may see some moderation as the trend is for growth to slow once loan books exceed 15,000 crore." "The drop in gold prices during the quarter will be reflected in slower growth for gold-loan companies," said Equirus Securities analyst Shreepal Doshi. Disney has held talks with Indian billionaires Gautam Adani and Sun TV Network owner Kalanithi Maran, as well as private equity firms, about selling its streaming and television business in India. According to people familiar with the matter, Disney is considering a number of options, including selling some of its Indian operations or a combination of assets from the unit. The talks are in their early stages, and a deal may not be reached, according to Bloomberg. The report made no mention of potential transaction value.Reuters' request for comment was not immediately responded to by Disney, Sun TV, or the Gautam Adani-controlled Adani group.Disney was exploring options to sell or find a joint venture partner for its India digital and TV business, Reuters reported in July. Thry has faced increasing pressure due to the emergence of Reliance Industries' streaming platform JioCinema, run by Asia's richest man, Mukesh Ambani. Ambani has promoted his streaming platform by providing free access to the Indian Premier League cricket tournament, the digital rights to which were previously held by Disney.Disney's India streaming operations, its largest by users last year, posted a loss of $41.5 million on revenue of $390 million for the fiscal year ending March 2022, according to the company's most recent results.Disney is attempting to resurrect its fortunes in India by providing free cricket on smartphones, betting that the strategy will increase advertising revenue and offset the impact of a subscriber exodus. NBFCS TO POST 30PERCENT NET PROFIT IN Q2DISNEY IN DIALOGUE FOR SALE OF ITS STREAMING SERVICESIN FOCUSIN FOCUS
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