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Tag: Digital Services

  • Sterlite Tech’s shaky Q2 signals challenges ahead amid global demand contraction

    Sterlite Tech’s shaky Q2 signals challenges ahead amid global demand contraction

    Mumbai: Why, in a world ruled by the invisible hands of technology, do tech giants stumble through uneven financial terrain? Despite their omnipresence in our lives, tech companies often hit the rocks at least once each fiscal year—and Sterlite Technologies Limited (STL) is no exception. For STL, a powerhouse in optical and digital solutions, Q2 FY25 exposed more than just numbers. Faced with contracting demand, squeezed margins, and a fading grip on last year’s benchmarks, STL’s latest performance tells a tale of turbulence that reveals just how volatile the road to digital dominance can be.

    STL reported consolidated revenues of Rs 1,413 crore for the quarter ending 30 September 2024, a 16 per cent increase from the previous quarter. This growth, however, fails to mask the underlying challenges. Compared to the same quarter last year, revenues have slid by 5.4 per cent, down from Rs 1,494 crore in Q2 FY24. This revenue dip reflects broader market contractions, especially in STL’s core optical fibre cable (OFC) and optical connectivity (OC) businesses, which have been grappling with supply chain constraints and price pressures globally.

    In financial performance, STL’s EBITDA reached Rs 151 crore, marking a 63 per cent QoQ increase. However, this positive quarter-over-quarter rise sharply contrasts with the year-over-year trend, as EBITDA plummeted by 30 per cent from Rs 216 crore in Q2 FY24. STL’s EBITDA margin now stands at 10.7 per cent, a steep decline from 14.4 per cent last year, signalling weakened profitability across its core sectors.

    The optical networking division, historically the backbone of STL’s business, continues to struggle. OFC volumes have decreased on an annual basis, underscoring the persistent demand softness that has plagued the company’s market segments. A more concerning aspect is the drop in Optical Connectivity attach rates from prior peaks, weakening STL’s market positioning. The segment generated Rs 1,027 crore in revenue this quarter, a reduction of 5.3 per cent YoY, despite modest QoQ growth. EBITDA margins within this segment also fell to 12.9 per cent, compared to 19.4 per cent in the same period last year, driven by higher operational costs and reduced OFC sales volumes.

    Moreover, STL’s digital services division faced hurdles, with quarterly revenue declining to Rs 64 crore from Rs 78 crore YoY, reflecting a 17.9 per cent decrease. Losses within the digital business narrowed slightly, yet the unit continues to operate at a deficit, posting an EBITDA loss of Rs 15 crore.

    Despite its revenue decline, STL achieved several key client acquisitions, securing projects in the US and UK, including a new partnership with Netomnia. However, these wins are tempered by STL’s broader market contraction and reduced OFC demand worldwide, as highlighted by a projected global market growth of only 4.3 per cent CAGR from 2022 to 2028. Although STL’s management expresses optimism for demand recovery, these short-term volume reductions underscore systemic weaknesses.

    The company’s recent financials have cast doubt over its ability to maintain the growth trajectory seen in prior years. With H1 FY25 net losses mounting to Rs 60 crore, STL’s debt profile has also become a point of concern. Net debt stood at Rs 2,169 crore at the end of H1 FY25, accompanied by a debt-to-equity ratio of 0.74. This leverage, coupled with reduced earnings, limits STL’s flexibility to navigate the industry’s tightening margins and escalating global competition.

    As STL embarks on its demerger of the Global Services business, the separation process itself may introduce further operational complexities and transitional costs. Scheduled for completion by Q3 FY25, this demerger aims to bolster STL’s core focus on optical and digital solutions, yet the timing appears precarious given the present fiscal constraints.

    For now, STL’s path to stability appears fraught with challenges. A combination of cost restructuring and a recalibrated growth strategy may be crucial if STL is to weather the industry’s cyclical headwinds and regain investor confidence in the coming quarters.

  • Singapore is a strategic location for our expansion – Prateek Kumar

    Singapore is a strategic location for our expansion – Prateek Kumar

    Mumbai: Visionary entrepreneurship is not just vital for establishing a business setup but making a strong position in the eyes of the clientele. Yield goodwill is a long-term process with anticipation of the right marketing mix. A proactive approach is not just eye-catching but astonishes sustainability in the brand market. On different parameters about technology and transformation, we discussed with NeoNiche founder and CEO Prateek Kumar to know his perspective.

    Indiantelevision.com exclusively speaks with Prateek Kumar on data security, data integration, communication methods, marketing mix, differential clientele services in a dynamic environment whether it is AI, technology, metaverse, future prediction, and his visions.

    Here are excerpts –

    On ISO certification in 360 degree marketing –

    NeoNiche is not only ISO Certified in Data Security and Quality assurance but also is SOC2 and GDPR Compliant. All kinds of certifications hold significant importance for a “Full Services” and “Marketing Product Company” as they foster quality, credibility, efficiency, and responsibility. It aligns with the demands of a dynamic and interconnected business environment, contributing to the overall success and sustainability of a company and the Customers it serves.

    On differential services in NeoNiche agency –

    NeoNiche is “Digital First: full services agency where we merge creativity with technology. Our data-driven insights, A Partnership network across major global locations, Our International Branch in Singapore, and our extensive domestic network across India help us increase our “Speed to Market”

    NeoNiche is known for offering a wide array of services beyond traditional Marketing offerings, Marketing Automation, Managed Marketing Services, Outsourced CMO, Influencer Marketing, Performance Marketing, Data-driven insights, Content Studio, Experiential Marketing, and consultancy services. This diversified portfolio allows NeoNiche to provide comprehensive solutions to clients, integrating various aspects of marketing and communication strategies. We don’t believe in the “One Size Fits All” philosophy and have different offerings for Large B2B enterprises, SMEs, and startups.

    NeoNiche places importance on building strong and enduring relationships with its clients. A client-centric approach involves understanding the unique needs of each client and tailoring solutions to meet their specific goals. This focus on client satisfaction and partnership can set WPP apart in the competitive landscape.

    On AI in  advertising and its inclusive role of transformation in digital agencies –

    Yes, AI has a transformative impact on Marketing agencies’ digital services, particularly in the realm of inclusive advertising. Including Targeted Advertising, Content Creation and Optimisation, Language Translation and localization, Better Customer Insights and Analytics Chatbots for Customer Interaction, and Inclusive Representation as AI image analytics can align products with gender, ethnicity, and demographics. By leveraging AI technologies, agencies can create more personalised, representative, and effective advertising campaigns that resonate with a broad and diverse audience.

    On NeoNiche Strategical expansion in the Singapore Market –

    Different markets have different characteristics even in India different States react to a particular Marketing Stimulus in different ways our Growth and metamorphosis from “Marketing services Organization” to “Marketing Product and Services organization” as NeoNiche is catering to Enterprise in B2B marketing in a huge way be it our offerings like “NeoFlo”, “ Nsync”, “B2B Digital Marketing Services”, “Community Building”, “Managed Marketing Services” or more traditional “Experiential Marketing Services”

    Singapore is a strategic location for our expansion as Its proximity to major markets in the region, such as China, India, and other Southeast Asian countries, can provide logistical advantages for businesses. due to its dynamic business environment, strong infrastructure, and pro-business government policies. The city-state’s reputation as a regional hub for technology, finance, and innovation aligns perfectly with our growing clientele and our vision for future growth. Additionally, Singapore’s diverse talent pool and multicultural society provide us with the resources and expertise to effectively serve our clients across the Asia-Pacific and ANZ regions.

    On strike balance with affordability and quality including ROI –

    Balancing affordability and quality is a common challenge in any industry, but it’s crucial for success. Since we are no longer just an “Experiential Marketing” or an “Event Company” as we have long moved to a space where we have moved from a “Marketing services Organization” to a “Marketing Product and Services organization” this gives us a “Full Services Capability”; Our Products and Solutions provide deep insights and generates ROI on Every project that we undertake.

    On a journey to become an entrepreneur –

    NeoNiche was started with the single dream of bridging the gap between the marketers and the understanding of his/her hired agency. We started with the single aim to reinforce the relationship between the company & customers, brand & buyers, and product & prospects, by creating experiences, delivered in real-time across multiple platforms of Social, Digital, and on-ground Event experiences. While We embarked on this journey with our team, we realised this was only possible if we truly cared about people who mattered to us, our team, families, Our Suppliers, our customers, the society that we live in, and the law of the land.

    On generalisation of creativity-focused business –

    The proliferation of digital marketing agencies worldwide does indicate a significant trend in the business landscape. While the widespread presence of these agencies may suggest a generalisation of creativity-focused businesses, it’s important to recognise that not all digital marketing agencies operate in the same way or prioritise creativity equally.

    Digital marketing agencies serve a variety of purposes, and their services can range from basic advertising and social media management to more specialised areas like search engine optimization (SEO), content marketing, and data analytics. The level of creativity involved often depends on the specific goals of the client and the nature of the services provided. Also, consolidation always happens in any industry, remember the Dotcom boom of the early 2000s only the one that creates real value for customers to thrive and grow.

    On anticipation of industry performance in upcoming financial years –

    The pace of technological innovation is expected to continue, with advancements in areas like artificial intelligence, quantum computing, 5G, and the Internet of Things (IoT). Industries that effectively integrate and leverage these technologies may experience significant growth. As environmental concerns continue to rise, there’s a growing emphasis on sustainable practices. Industries involved in renewable energy, eco-friendly products, and sustainable technologies may see increased demand. Economic landscapes can impact industries differently. Global economic trends, trade policies, and geopolitical events may influence the growth and development of various sectors including Marketing.

    With the increasing digitisation of businesses and daily life, the importance of cybersecurity is expected to grow. Industries dealing with cybersecurity solutions and services may experience increased demand.

    Automation and AI adoption are likely to increase across industries, impacting jobs and processes. Industries that effectively integrate these technologies may enhance efficiency and productivity. While this is my guess it is important to note that unexpected events, such as global crises, technological breakthroughs, regulatory changes, or geopolitical shifts, can significantly alter industry trajectories.

    On the suitability of metaverse in the Indian continent –

    The metaverse offers various economic and business opportunities, ranging from virtual commerce to immersive experiences. Indian businesses could explore these opportunities, especially in sectors like gaming, e-commerce, education, and entertainment. It is important to note that the success of the metaverse relies heavily on robust digital infrastructure and widespread internet connectivity. India has been making strides in improving digital infrastructure, including the expansion of broadband access. The continued growth in this area would positively influence the adoption and success of metaverse technologies.

    It is also important to note that the adoption and success of the metaverse are influenced by a complex interplay of technological, cultural, economic, and regulatory factors. As the concept continues to evolve, ongoing developments in these areas will shape its impact on the Indian technology landscape.

    On over-dependency on AI and the quantum of work –

    While generative AI has the potential to revolutionize the media industry by improving efficiency and creativity, it’s essential to approach its adoption with caution. A thoughtful and balanced integration of AI, combined with human oversight, is crucial to harness the benefits while mitigating potential drawbacks. Regulatory frameworks and ethical guidelines can help guide the responsible use of AI in the media sector.

    On future objectives plans of NeoNiche  –

    NeoNiche has embarked on a transformative journey from being an Indian Experiential Marketing company to a global one, we strive to bring the richness of our heritage and a dynamic approach. We are mastering brand experiences in the vibrant Indian market, our vision extends beyond borders. As we evolve into a Global Full full-service marketing entity, our goal is to craft narratives that transcend cultures, break barriers, and inspire positive change.

  • Bharti Airtel announces Amrita Padda as chief people officer

    New Delhi: Telecom giant Bharti Airtel on Wednesday announced the appointment of Amrita Padda as its chief people officer, with effect from 1 October. She will report to Bharti Airtel MD and CEO, Gopal Vittal.

    Padda was previously associated with Hindustan Unilever for over two decades, where she handled the entire spectrum of human resources roles. In her new role, she will be responsible for Airtel’s people strategy as the company transforms into a digital services provider, as per an official statement.

    Commenting on the appointment, Gopal Vittal said, “I am delighted to welcome Amrita to Airtel. Our People and culture of empowerment are our biggest strengths that enable us to deliver world-class experiences to our customers. I am confident that Amrita will add immense value to Airtel’s exciting journey, help build new capabilities and ensure the company continues to be a magnet for top talent from across the world.” 

    Amrita takes on the baton from Samit Deb, who has decided to pursue entrepreneurial opportunities outside of Airtel. “I would like to thank Samit for his contribution to Airtel and strengthening our people practices. On behalf of everyone at Airtel, I wish him the very best in all his future endeavours,” Vittal added.

  • Mindshare promotes Sanchit Sanga as Digital Services head

    Mindshare promotes Sanchit Sanga as Digital Services head

    MUMBAI: Mindshare APAC has promoted Sanchit Sanga as Digital Services head for Asia Pacific.

     

    Based in Singapore, Sanga takes on the role after two years as digital leader for south Asia & south east Asia. His role is effective immediately.

     

    In his new role, Sanga will focus on the continued development and delivery of Mindshare’s digital services to marketers, working closely with the regional in-market digital leads and global teams.

     

    Mindshare continues to focus on expanding its digital services from digital performance product integration to working with GroupM partners like Vocanic to offer innovative social solutions, to building an in-house mobile marketing practice partnering with innovative start ups like Footmarks.

     

    As part of the drive to continually raise the quality of the digital product, Mindshare has increasingly focused on aspects such as precise audience targeting and multi-screen planning, working with partners like Crayon Data, Xaxis and the Mindshare Trading hubs.

     

    Sanga said, “‘I am excited to take on this role and become even more involved in Mindshare’s digital marketing ambitions. Having worked in the digital space for 15 years, I can think of no other agency globally which has the intellectual and organizational backbone to consistently win in this evolving arena. I’m especially looking forward to driving the ongoing expansion of our digital services offering both across the region and globally. Our products are increasingly involving cutting edge partners to drive excellence in digital innovation, and this makes this space an incredibly exciting opportunity as we work with our clients to deliver more and more effective growth and revenue driving options.”

     

    Global Growth Markets, Mindshare Worldwide global growth markets CEO and Asia Pacific chairman Ashutosh Srivastava said, “We are privileged to have highly talented people like Sanchit in the Mindshare family. Over the years, Sanchit has developed trusted relationships with our clients, which continually assists us to lead the industry in digital thinking. It is an exciting time to be in our business, where our understanding of media, technology and effective data usage is becoming more and more central to brand success.”