Business Standard - October 23, 2024

In this issue

October 23, 2024

Microfinance SRO makes a pitch for 4% cap on RoA

Following a regulatory crackdown on four non-banking financial companies (NBFCs), including two microfinance institutions, for charging \"usurious\" interest rates, a self-regulatory organisation (SRO) has asked its members to limit their return on assets (RoA) to 4 per cent.

2 mins

Ambuja to buy Orient Cement in ₹8.1K cr deal

In its 3rd major acquisition in FY25, Adani firm to purchase 46.8% stake

3 mins

Setting the dial to 2030, Bharat 6G Alliance seeks PLI extension

The working group on device technology, sensors, and manufacturing systems, formed under the aegis of the Bharat 6G Alliance, has recommended extending the production-linked incentive (PLI) scheme for mobile devices until 2030.

2 mins

Nestlé India CMD sees mega cities as pressure points

Nestlé India on Tuesday joined other FMCG majors in declaring that food inflation was hitting urban areas the worst while the demand was recovering in rural swathes, as it reported a one per cent year-on-year dip in its consolidated net profit for the second quarter of financial year 2024-25.

2 mins

‘Paytm will solve concentration risk’

One97 Communications, which operates fintech firm Paytm, on Tuesday announced a consolidated profit of ₹928.3 crore in Q2FY25, compared to a loss of ₹290.5 crore a year ago, on the back of selling its movie ticketing and events business.

2 mins

Varun Beverages net up 22% to ₹629 crore

Varun Beverages Ltd (VBL), PepsiCo's largest franchise bottler, on Tuesday reported 22.33 per cent rise in consolidated net profit at ₹628.82 crore for September quarter driven by volume growth and improved margins.

1 min

Adani Green profit up 38%

Adani Green Energy Ltd reported a 38 per cent increase in second-quarter profit, following rising power sales and an installation expansion.

1 min

Zomato PAT soars 5x; to raise ₹8.5K crore

Board of directors gives nod to raise funds via QIP

2 mins

Adani Energy net rises 2x to ₹674.9 crore

Adani Energy Solutions (AESL) on Tuesday reported 145 per cent year-on-year jump in its consolidated net profit to ₹674.96 crore (attributable to the owners of the company) for the second quarter of financial year 2025 (Q2FY25), on the back of higher revenue generation, and deferred tax reversals.

1 min

Royal Enfield announces 1st assembly unit in Bangladesh

Indian motorcycle maker Royal Enfield on Tuesday announced starting a manufacturing unit and a showroom in Bangladesh, marking a major industrial development in the neighbouring country where the former prime minister Sheikh Hasina fled in August after weeks-long protests against her.

2 mins

Qcom firms get CCPA notices

The Central Consumer Protection Authority (CCPA) has issued notices to several quick commerce (qcom) companies for failing to comply with mandatory product disclosure requirements, a top official said on Tuesday.

1 min

India's exports to 8 of top 10 mkts grow in H1

Netherlands, US, UK see positive growth despite muted global demand

1 min

‘Before announcing a big programme, govt should test it’

IQBAL DHALIWAL is global executive director of J-PAL (Abdul Latif Jameel Poverty Action Lab), the anti-poverty centre at the economics department of Massachusetts Institute of Technology that was founded in 2003 by Nobel laureates Abhijit Banerjee and Esther Duflo. Banerjee and Duflo pioneered Randomised Controlled Trials (RCTs) used to test the effectiveness of a particular intervention to determine whether a change causes a specific effect. During his recent visit to attend the Kautilya Economic Conclave in New Delhi, Dhaliwal told Asit Ranjan Mishra in an interview about evidence-based policymaking in India, and universal basic income, among other things. Edited excerpts:

3 mins

RBI to meet pvt banks next mth on governance

This will be 2nd meeting of its kind

2 mins

IMF retains India's FY25 growth forecast at 7%

Highlights stable global growth amid shifting economic dynamics

1 min

Skilling gap a challenge for India: FM

India faces a significant challenge skilling its vast young workforce to meet the requirements of the job market, Finance Minister Nirmala Sitharaman said at an event hosted by The Economic Club of New York on Monday.

1 min

Union Bank to take call on raising ₹10K cr next quarter

The decision to raise fresh capital of up to ₹10,000 crore by Union Bank of India to support its business growth will be taken in the next quarter.

1 min

Bajaj Finance Q2 profit jumps 13% on rising NII

Non-banking financial company Bajaj Finance reported 13 per cent year-on-year (Y-o-Y) growth in its consolidated net profit to ₹4,014 crore in the July-September quarter (Q2FY25), helped by healthy growth in net interest income (NII). NII for consolidated books expanded by 23 per cent (Y-o-Y) to ₹8,838 crore, up from ₹7,196 crore in the same period of the previous year (Q2FY24).

1 min

StanC to double down on SME, affluent segments

Retail banking is \"core\" to UK-based Standard Chartered Bank's strategy in India as it is looking to double down on small and medium enterprises (SMEs), affluent, and wealth banking segments, according to the bank's senior management. This comes after the bank, last week, sold its personal loan portfolio of over ₹4,100 crore to Kotak Mahindra Bank.

1 min

Irdai nudging more firms to list: Chairman

The Insurance Regulatory and Development Authority of India (Irdai) is engaging with select insurers it believes should pursue public listing, Chairman Debasish Panda said on Tuesday. Irdai is also encouraging others that have reached a certain size and maturity to do the same, as public listing enhances transparency and creates more value for policyholders and investors.

1 min

₹4.25 trn transmission infra needed by 2027

National Electricity Plan says investment must to meet power demand

2 mins

Allianz looks to exit Bajaj's insurance JVs

Its stake in both firms is estimated at ₹30K cr

1 min

CRISIL SME TRACKER: Uptick in production volume to benefit auto component SMEs

The revenue of domestic auto component manufacturers is projected to increase 8-10 per cent onyear in FY25, driven by demand from original equipment manufacturers (OEMs) and the replacement market.

1 min

No tariff hike on cards, want to retain existing customers: BSNL CMD

State-run telecom company Bharat Sanchar Nigam Limited (BSNL) will not raise tariffs in the near future as its prime interest is to retain customers and win their confidence, said its Chairman and Managing Director (CMD) Robert J Ravi on Tuesday.

2 mins

China confirms agreement to end standoff in eastern Ladakh

China on Tuesday confirmed it had reached an agreement with India to end the standoff between the two armies in eastern Ladakh.

1 min

Modi pitches for peaceful solution to Ukraine war

The Russia-Ukraine conflict should be resolved in a peaceful manner and India is ready to provide all possible cooperation towards it, Prime Minister (PM) Narendra Modi said on Tuesday during his talks with Russian President Vladimir Putin.

2 mins

UltraTech, Ambuja in hunt for more cement assets

The Aditya Birla group's UltraTech and billionaire Gautam Adani-owned Ambuja Cements are scouting for more cement sector assets after a string of acquisitions by both cash-rich companies, bankers said. UltraTech, owned by billionaire Kumar Mangalam Birla, bowed out of the race for Orient Cement, a CK Birla-owned company, as it found the asking price too expensive after due diligence, they said.

1 min

Hyundai confirms plan to launch hybrid vehicles

Hyundai Motor India Limited (HMIL) on Tuesday confirmed it was indeed planning to roll out hybrid vehicles in the Indian market. But the company didn't reveal the exact timeline.

2 mins

RIL, Disney to sell 7 channels to win CCI nod for merger

The Competition Commission of India (CCI) on Tuesday published the 48-page detailed order approving the mega media assets merger of Reliance Industries and Walt Disney, entailing various conditions, including divestment of seven TV channels.

1 min

A-I aims to double direct sales earnings in 2-3 yrs

Tata Group-run Air India aims to double its ticket sales through direct channels, including its website and app, within the next 2-3 years by enhancing their value proposition to passengers, Satya Ramaswamy, chief digital and technology officer, Air India, said on Tuesday.

1 min

Jindal cement arm to invest ₹2K cr to scale up output

The Naveen Jindal group's Jindal Panther Cement on Tuesday said it will invest ₹2,160 crore to scale up production capacity to 7 million tonne per annum (mtpa).

1 min

RInfra to invest ₹10K cr in Maha defence project

Anil Ambani-promoted Reliance Infrastructure (RInfra) plans to invest ₹10,000 crore over the next 10 years to set up what the company termed India's largest greenfield defence initiative undertaken by any private sector firm to manufacture explosives, ammunition, and small arms in Ratnagiri, Maharashtra.

1 min

Cement Inc valuation hits new peaks despite weak earnings

There has been a sharp slowdown in revenue and profit growth in the cement sector in recent quarters but it is yet to show in the share prices of cement companies.

2 mins

50 flights, 5 schools get bomb threats

80 flights received threats since Monday

2 mins

Blinken makes last ceasefire push before US polls

US Secretary of State Antony Blinken arrived in Israel on Tuesday on his 11th visit to the region since the outbreak of the Israel-Hamas war. Washington hopes to revive cease-fire efforts after the killing of top Hamas leader Yahya Sinwar, but so far all the warring parties appear to be digging in.

1 min

4 policymakers favour more rate cuts ahead of Fed meet in Nov

Four Federal Reserve policymakers expressed support for further interest-rate cuts, but appeared to differ on how fast or far they believe any cuts should go.

1 min

Meta restarts facial recognition to curb scams

Firm shut down the verification system on Facebook in 2021 amid 'growing societal concerns'

2 mins

Putin hosts world leaders at Brics summit, indicating he's far from isolated

President Vladimir Putin is playing host to Russia's biggest gathering of world leaders since the invasion of Ukraine and using the Brics summit to show the US and its allies that he's no pariah.

2 mins

Under new CEO, HSBC unveils biggest restructuring in 10 yrs

Bank also names first woman chief financial officer in its 159-year history

2 mins

Soft landing

The global economy faces several risks

2 mins

Not just by spending cuts

The Centre must look at non-tax measures to boost its fiscal performance

5 mins

Guerrillas in the stock market

This well-written, well-researched book chronicles the entry of droves of new, tech-savvy, retail traders into financial markets over the past few years, and how that has changed the trading landscape. Though it is US-centric, readers will note resonances with India and other large markets.

3 mins

A bumpy ride

Hyundai listing could be an indicator

2 mins

When will India celebrate failure?

The executive and legislature work in unison to enact laws to address pressing socio-economic issues. Historically, laws would include a clause stating that they would come into effect on a date appointed by the executive. However, recent enactments include a proviso to that clause, allowing different provisions of the same law to come into force on different dates.

4 mins

GENERATION GAP

5G has not yet fully lived up to its promise. Will 6G find enough use cases to go where 5G hasn't?

4 mins

Dharma-Adar deal gives quest for scale a chance

Kuch Kuch Hota Hai, Kabhi Khushi Kabhie Gham, and Rocky aur Rani Ki Prem Kahani are among filmmaker Karan Johar's biggest hits. They are sweet, funny, and romantic. None, however, had an unexpected twist in the tale like the announcement that came on Monday. Johar will sell half his stake in Dharma Productions, the company he owns and runs as executive chairperson, to Serum Institute of India's Chief Executive Officer Adar Poonawalla for ₹1,000 crore.

3 mins

Mkts log worst 1-day fall in 3 weeks amid FPI exit

Benchmark indices logged their biggest single-day fall in three weeks as sustained selling from overseas investors and earnings disappointment weighed on investment sentiment.

1 min

SMEs' operating cash flow fell 69% in FY24; sales outperformed

The first of a three-part series looks at the fundamentals of the small and medium enterprise segment amid heightened scrutiny of price action

2 mins

F&O cannot be national pastime

Sebi whole-time member Bhatia's comments come amid regulator's action to curb frenzy in derivatives segment

1 min

Capacity expansion may drive gains for CG Power

The results of CG Power and Industrial Systems (CG Power) disappointed in terms of margins while witnessing strong order inflows. The company is focusing more on transformers rather than motors.

2 mins

Hyundai debut takes a slow turn

Carmarker's shares skid 7% as listing day flop show follows tepid response to India's largest-ever IPO

2 mins

SEBI DIRECTS REGULATED ENTITIES TO END TIES WITH UNREGISTERED ADVISORS

The Securities and Exchange Board of India (Sebi) on Tuesday restricted the association of registered entities and their agents with people who provide financial advice without registration or make claims of return or performance in the securities market.

1 min

Fear low credit score? Avoid one-time loan settlement

Private sector banks like Axis, Kotak Mahindra, and RBL have reported an increase in non-performing assets in their unsecured loan portfolios, which include credit cards and personal loans. Instead of panicking, here's how individuals nearing default, or those who have already defaulted can deal with the situation.

2 mins

Crude oil may slip to low $60s by 2025-end

Weak demand outlook weighs on prices after recent highs: Analysts

2 mins

Sebi issues showcause notice to Adani Energy

The Securities and Exchange Board of India (Sebi) has sent a showcause notice to Adani Energy Solutions over alleged wrongful categorisation of certain investors as public shareholders, the company disclosed in an exchange filing on its quarterly results on Tuesday.

1 min

Pre-approved loans easy but customers must be cautious

Credit access has become easy as banks and other financial institutions offer pre-approved loans in minutes, but financial say consumers must advisors exercise caution.

1 min

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