Operator

Hello, and welcome to the Croda International Q1 2026 Sales Update Call. Please note, this call is being recorded. [Operator Instructions]

I will now hand you over to your host, Steve Foots, to begin today’s conference. Please go ahead, sir.

Steve Foots
Group Chief Executive & Executive Director

Good morning, everyone. Many thanks for joining. So I’m here with Stephen and David, and together, happy to take your questions.

So first, just a few overview comments from me. Overall, quarter 1 sales were as we expected it, up 1% at constant currency and similar to a very strong quarter last year. And whilst we acknowledge the heightened uncertainty that the Middle East conflict has caused, it had no material effect on quarter 1, and there is no change to guidance for full year ’26.

So breaking our quarter 1 sales performance down by business, sales were up 4% in Consumer Care, driven by Beauty Actives and F&F. Life Sciences saw sales dip 3%, largely due to Crop Protection being 8% lower versus a strong prior year when we saw significant restocking. And industrial sales were down 2%, again against a strong prior period.

Warner Bros. Discovery Inc. announced on Thursday that its shareholders voted to approve its previously announced transaction with Paramount Skydance Corp. at a special meeting of stockholders.

“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery, building on our successful equity and debt syndications and progress across regulatory approvals. We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers,” a Paramount spokesperson told Fox News Digital. 

The deal would put Paramount CEO David Ellison in charge of two Hollywood studios, along with two major newsrooms in CNN and CBS News. Paramount Skydance would also own both Paramount+ and HBO Max, although executives have suggested that they would merge the services into one streaming platform.

The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory clearances.

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“We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” Warner Bros. Discovery Board Chair Samuel A. Di Piazza Jr. said in a statement. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.” 

The merger would mean that two of Hollywood’s oldest studios are under one roof, but Ellison has said he would keep Paramount and Warner Bros. as stand-alone operations and the combined company would release more than 30 movies a year. 

Warner Bros. Discovery CEO David Zaslav said that his team has “transformed” the company and returned it to “industry leadership” over the past four years.

“Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders. We will continue to work with Paramount to complete the remaining steps in this process that will create a leading, next-generation media and entertainment company,” Zaslav added.

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In December, Warner Bros. announced it had reached a deal with Netflix to buy the Hollywood studio and HBO for $83 billion, prompting Paramount to launch a $108 billion hostile takeover bid for the entire company, including all of its cable assets like CNN, which would have been spun off into a separate company under the Netflix deal.

Netflix dropped a bid to buy Warner Bros. two months later after the studio announced Paramount’s offer to buy the entire company was “superior.” Paramount’s revised offer raised Warner Bros. Discovery’s value to $31 per share, putting the company’s valuation at $111 billion. 

Paramount also agreed to pay a $2.8 billion termination fee to Netflix. 

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Ellison’s billionaire father, Larry Ellison, is personally backing Paramount’s bid, committing $45.7 billion in equity through the Ellison Trust, while Bank of America Merrill Lynch, Citi and Apollo will provide a $57.5 billion debt commitment.

Critics of the Paramount takeover have sounded the alarm about putting two legacy studios under one company, which many speculate will result in mass layoffs. Others are concerned about Ellison taking over CNN after his attempts to reduce liberal bias at CBS have irked critics. 

Ellison has insisted that editorial independence “will absolutely be maintained” at CNN.  

In addition to CNN, Paramount would take over cable assets including Discovery, TNT, TBS, Food Network, Cartoon Network and Animal Planet.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Fox News Digital’s Joseph A. Wulfsohn contributed to this report.

Shares of IT major Infosys slumped as much as 3.72% to their day’s low of Rs 1,194.50 on the NSE on Friday after it reported a 21% year-on-year rise in consolidated net profit for the quarter ended March 31, 2026, at Rs 8,501 crore, compared with Rs 7,033 crore in the same period last year. Infosys ADRs also witnessed a decline, ending 4% lower.

Revenue from operations came in at Rs 46,402 crore for Q4FY26, reflecting a 13.4% increase from Rs 40,925 crore in the corresponding quarter of the previous financial year. On a sequential basis, profit after tax rose 28% from Rs 6,654 crore reported in Q3FY26. Revenue was up 2% quarter-on-quarter compared to Rs 45,479 crore in the October-December quarter.

Read More: Infosys Q4 Results: Cons profit jumps 21% YoY to Rs 8,501 cr, revenue rises 13%; Rs 25/share dividend declared

Operating margin for the reported quarter stood at 21%, unchanged year-on-year but higher by 260 basis points compared to the previous quarter. The company’s dollar revenue was $5,040 million, up 6.6% sequentially but down 1.2% year-on-year.

For FY27, Infosys has guided for revenue growth of 1.5% to 3.5% in constant currency, while maintaining an operating margin outlook of 20% to 22%.

What are experts saying?

Jefferies has maintained a Hold rating on Infosys shares and cut its target price to Rs 1,235, indicating limited upside or downside from current levels. The brokerage said the company’s March quarter results were broadly in line with estimates, but the weaker-than-expected FY27 revenue growth guidance of 1.5% to 3.5% disappointed. It also pointed to a 3% quarter-on-quarter decline in headcount and a 19% year-on-year drop in net new deal wins as key concerns.
Jefferies noted that the lower end of the guidance range reflects a worsening macro environment and continued geopolitical uncertainty, while the upper end assumes some improvement. Net new deal wins for Q4 stood at $1.3 billion, down 19% YoY, which the brokerage said was soft. This, along with the sharp reduction in headcount during the quarter, aligns with the company’s cautious growth outlook.
Morgan Stanley has maintained an Equal-weight rating on Infosys share price, while cutting its target price to Rs 1,380 from Rs 1,760 earlier, an upside of 11% from current levels. The brokerage highlighted a miss in Q4 across key metrics, along with a weak revenue growth outlook. It noted that the FY27 revenue guidance of 1.5% to 3.5% points to a lack of meaningful acceleration, with organic growth expected at around 2.5%, broadly in line with peers.

The Wall Street major also flagged that the ramp-down of a large European client is weighing on the near-term growth outlook. It added that AI-led productivity gains and pricing pressure are impacting the competitiveness of the core business. Margins are expected to remain in the range of 20.5% to 21.0%, with headwinds from wage hikes and M&A activity.
While estimates have been lowered, Morgan Stanley said earnings per share could see some support from currency tailwinds. It also noted that valuations are now correcting closer to peer levels, which may offer some downside protection, with the stock valued at around 15.8 times price-to-earnings.

Motilal Oswal has maintained a Buy rating on Infosys shares with an unchanged target price of Rs 1,450, implying a 17% upside from current levels. The brokerage said the company’s FY27 revenue growth guidance of 1.5% to 3.5% in constant currency, or 1.25% to 3.25% organic, is below its estimates at the upper end and signals rising pressure on the existing book of business. It noted that the increasing adoption of AI is leading to compression in the core business, as productivity gains are being passed on to clients. While part of this trend is also due to competitive intensity and pricing pressures in a weak demand environment, the brokerage expects deflationary impact to persist.

Motilal Oswal has factored in growth at the mid-point of the guidance at around 2.5% organic for FY27, which indicates a slowdown compared to FY26 growth of 3.1% in constant currency terms.

HDFC Securities has maintained a Buy rating on Infosys stock price with an unchanged target price of Rs 1,550. The brokerage noted that Q4 revenue was impacted by seasonal factors and slower client decision-making. It added that the company’s FY27 revenue growth guidance of 1.5% to 3.5% year-on-year came in below expectations, reflecting ongoing macro uncertainty. The demand environment continues to remain soft, with clients prioritising cost optimisation over large-scale transformation initiatives. Given the slower growth outlook, estimates have been trimmed by around 2% to 3%, with the stock valued at 18 times its March 2028 estimated earnings per share.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The latest earnings season has sparked mixed reactions across India’s IT sector, with investors expressing concern over weaker-than-expected margins and conservative growth guidance. However, market experts believe the broader picture may not be as discouraging as it initially appears.

Speaking to ET Now, market expert Sandip Agarwal from Sowilo Investment Managers acknowledged the short-term disappointment but urged investors to take a more measured view.

“So, as you rightly mentioned, there was some underperformance versus whatever was the street estimate. But let me give you a little more perspective.”

Agarwal emphasized that company guidance must be viewed in the context of recent volatility in the IT services space. Over the past few months, the industry has faced significant disruption, largely driven by fears surrounding artificial intelligence.

“You all know that the last three to six months have been very, very disrupting for the IT services space because there was a point of time where every day there were articles coming and saying that 70%, 80%, 90%, or even 100% of the IT services will not be required.”

According to him, sentiment has since stabilized, with extreme predictions giving way to more realistic expectations of gradual efficiency gains rather than outright disruption.
“At least people are saying there will be deflation, and I agree… 20% to 30% effort reduction because of AI spread over four to five years means 4–5% annual deflation.”Growth Guidance: Conservative but Not Weak
The industry’s projected growth range of 1.5% to 3.5% has been seen as underwhelming by the market. However, Agarwal argues that when adjusted for AI-led efficiency gains, the outlook appears more reasonable.

“If you take the upper end of the guidance, then it means like 8–9% kind of dollar growth… and if you take the lower end, we are talking about 5–6% growth.”

He added that such growth levels are sustainable and realistic for the sector over the next few years, especially for large companies.

“This is not an industry where you should look at double-digit growth… 6–7% growth for large companies and 8–10% for mid-sized companies is what you should build in.”

Currency Volatility and Margin Pressure
Another key concern has been the limited benefit from currency depreciation, particularly in companies like Infosys, where forex tailwinds failed to significantly boost margins.

Agarwal attributed this to the nature of hedging strategies and sudden currency movements.

“Whenever such sharp changes have happened in the currency, that quarter they have not been able to get much benefit because it is sudden.”

He explained that currency gains typically take time to reflect in financials and are often offset by short-term disruptions and increased costs.

“So, we should not expect magic in margins due to currency in one quarter. It takes time to flow.”

Additionally, seasonal factors such as furloughs and fewer working days also played a role in dampening performance.

“December quarter has a huge furlough impact and March quarter has a lesser number of working days… so that also has an impact.”

Sector Outlook: Patience Required
Despite near-term challenges, Agarwal remains optimistic about the sector’s medium-term trajectory.

“In my opinion, the sector should see 13–14% EPS growth for the next two years at least.” He also pointed out that IT companies historically tend to meet or exceed their guidance, barring major crises.

“Generally, they have always made their guidance at the upper end and sometimes have beaten guidance.”

However, he cautioned that investors should avoid overanalyzing short-term fluctuations in a business that is inherently complex and client-driven.

“In B2B business, things change so fast… your top client contributes 4–5% sometimes, and they can have a decision delay.”

Valuations and Investment Strategy
On valuations, Agarwal noted that much of the excess optimism has already been corrected, making the sector more attractive now than in recent months.

“A lot of froth is behind… we are maybe at the bottom of the prices of the stock.” He advised investors to focus on the broader sector rather than individual stock picks.

“Money is made when your call on the sector goes right rather than on the micro.” That said, he expressed some caution regarding the ER&D (Engineering Research & Development) segment, citing concerns around valuation excess.

The Bottom Line
While the IT sector may face short-term pressure from margin compression, currency volatility, and cautious client spending, the long-term fundamentals remain intact. Stable growth expectations, improving efficiency, and reasonable valuations suggest that patient investors could still find meaningful opportunities.

As Agarwal summed it up: “At the sector level, prices are good, things have corrected, and they are looking much more reasonable… the sector call is looking good right now.”

PERTH — Western Australia is finally set to join the digital age for driver identification, with the Cook Labor Government announcing Thursday it will introduce optional digital driver’s licences by late 2027 after allocating $28.2 million in the upcoming state budget.

The initiative, unveiled in Perth, includes a trial beginning mid-2027 and full rollout by the end of that year. Digital licences will initially live in the ServiceWA app’s digital wallet, with plans to expand compatibility to Apple Wallet and Google Wallet for broader convenience.

Science and Innovation Minister Stephen Dawson described the move as a significant step toward modern, secure government services. “These changes are designed around how people live and work today,” Dawson said. “Having key credentials available digitally means less paperwork, fewer delays, and greater convenience.”

Assistant Transport Minister Jessica Stojkovski emphasized that the digital licence would remain optional. Physical cards will stay available “for the foreseeable future,” addressing concerns from residents wary of fully digitizing sensitive documents.

“You can choose to have a digital driver’s licence if that suits your circumstances and lifestyle, but equally if you like having a physical driver’s licence, you can do that as well,” Stojkovski said.

The funding comes from the Digital Capability Fund and will support not only driver’s licences but also a broader State Digital Identity system. This will enable Western Australians to access more online services and secure transactions while maintaining control over their personal data.

Security has been a key focus during development. WA deliberately took longer than eastern states to ensure the system meets top national and international standards. Stojkovski highlighted enhanced safety features, particularly for proof-of-age scenarios at licensed venues.

When scanned for age verification, the digital licence will share only necessary confirmation — such as “over 18” — without revealing full personal details. This contrasts with current physical cards, where venues may capture and store complete information with uncertain data practices.

Transport Minister Rita Saffioti noted most Western Australians already carry their phones daily, making the digital option a natural extension of modern life. The system builds on recent innovations like phone-based SmartRider public transport tagging.

WA has lagged behind other Australian jurisdictions. New South Wales, South Australia, Victoria and others rolled out digital licences years ago, while Tasmania and the Northern Territory advanced plans for 2026 launches. The state’s cautious approach prioritized robust cybersecurity to protect the personal data of roughly 2.2 million licence holders.

The digital credential will allow near real-time verification, ensuring information stays current and accurate. This promises faster licence issuance and replacements, reducing visits to physical service centres. Upgrades to the WA Relationship Authorisation Manager will also improve business-government interactions.

For everyday users, the benefits are clear. Forgot your physical licence? Pull out your phone. Need to prove age quickly? A secure scan does the job with minimal data exposure. The system aligns with national efforts to harmonize digital identities across Australia.

Privacy advocates and older residents have raised questions about digital access and data security. The government has stressed inclusivity, with physical options remaining and strong safeguards against theft or fraud. Dawson noted the project lowers chances of identity theft through better-controlled sharing.

The ServiceWA app already supports Digital ID setup for those over 15 with compatible smartphones. Users link documents like driver’s licences, birth certificates or passports through the myID platform (formerly myGovID) for stronger verification.

Implementation will involve collaboration with licensed venues, police and other stakeholders to ensure smooth acceptance. The pilot phase mid-2027 will test functionality, user experience and verification processes before wider availability.

This rollout forms part of a broader digital transformation under the Cook Government. It complements other initiatives aimed at making services smarter, more efficient and user-friendly while supporting economic growth through reduced administrative burdens.

Industry groups have welcomed the news. Road safety organizations see potential for better compliance checks, while tech sectors view it as boosting WA’s digital credentials. For businesses, real-time verification could streamline hiring, age-restricted sales and insurance processes.

Challenges remain. Not everyone owns a compatible smartphone, and network coverage in regional WA could affect reliability. The government has committed to addressing these through the trial phase and ongoing consultation.

As WA catches up, the digital licence represents more than convenience — it signals a shift toward secure, privacy-focused identity management. With $28.2 million committed, the state aims to deliver one of the strongest systems nationally.

Motorists are encouraged to stay informed via the ServiceWA app and Department of Transport channels. While physical licences continue unchanged for now, the optional digital version promises to make carrying identification simpler and safer for those who choose it.

The announcement comes as Australia moves toward greater digital integration. With most states already offering or planning mobile licences, WA’s entry completes the national picture and positions the state for future interoperable systems.

For millions of Western Australian drivers, the phone in their pocket could soon serve as their official licence — a practical evolution in how identity travels in the 21st century. The mid-2027 trial will provide the first real test of this long-awaited technology.

Ford is recalling more than 140,000 Ranger trucks in the U.S. after federal safety regulators warned a wiring issue could elevate the risk of fire, as well as potential crashes or injuries.

The recall affects 140,201 vehicles spanning the 2024 through 2026 model years, according to the National Highway Traffic Safety Administration (NHTSA).

The agency said the problem is linked to wiring associated with the sun visor and headliner that may be routed incorrectly or wrapped with too much tape, conditions that can cause the wires to degrade and potentially trigger an electrical short near the A-pillar.

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To address the issue, Ford dealers will examine the wiring and update the vehicle’s body control module software. Harnesses showing signs of damage will be replaced at no cost to owners, the agency said.

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The recall is being rolled out in phases, beginning with certain 2025 model-year trucks. Owner notification letters are scheduled to start the week of May 31, followed by additional rounds in late June for 2026 models and late July for 2024 models.

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Regulators said interim notices alerting drivers to the safety risk are expected to be mailed April 27, with a final repair solution anticipated later in the summer. The campaign is identified as 26S29, and affected VINs have been searchable on NHTSA’s website since mid-April.

Reuters contributed to this report.