OPINION, P8 EDITORIAL COMPANIES, P6 Kotak points to IL&FS loopholes that need plugging INTERNATIONAL, P14 VANEESA AGRAWAL FRESH CRACKDOWN TOO MUCH CLOUT RBI-type Sec 7 directions are being given in other areas as well; courts are ruling on them differently Sebi orders Sahara to refund over `14,000 cr with 15% interest Tech giants may have to be split up: Web founder Berners-Lee MUMBAI, FRIDAY, NOVEMBER 2, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 58 NO. 259, 24 PAGES, `7.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 34,431.97 ▼ 10.08 NIFTY: 10,380.45 ▼ 6.15 NIKKEI 225: 21,687.65 ▼ 232.81 HANG SENG: 25,416.00 ▲ 436.31 `/$: 73.45 ▲ 0.50 `/€: 83.63 ▲ 0.31 BRENT: $74.54 ▼ $0.93 GOLD: `31,697 ▼ `1 AUTO SALES ● TRADE TENSION No Oktoberfest, car sales crawl CCI looking at algorithms used by airlines to determine fares THE COMPETITION Commission of India is looking at algorithms used by airlines to determine fares, as part of a detailed probe into alleged fixing of air ticket prices, according to its chief Sudhir Mital, reports PTI. Currently, the fair trade regulator is investigating allegations of similar pricing as well as simultaneous increase in ticket prices by the airlines. PAGE 7 15,149 12,944 39,420 32,411 23,453 24,066 16,475 18,290 Continued on Page 2 son,” Wadhera said. M&M’s despatches increased 2.6% yo-y in October. The automobile dealers association had said that retail sales were down 10-20% y-oy during October. This would be a blow to carmakers who typically sell around 40% of their annual volumes during the festive season. Puneet Anand, senior GM (marketing), Hyundai India, had remarked that car sales could well be lower than that in the 2017 festive season. Hyundai’s sales rose a shade below 5% y-o-y partly driven partly by its new Santro. “Retail sales appearto beweak Airlines may post steepest losses in a decade: Crisil SHYING AWAY Banks’ consumer durable loan portfolio falls 82% in Sept Continued on Page 2 Growth, y-o-y, % 33 40 40 31 38 23 Sep ‘18 Aug ‘18 17 19 Sep ‘17 14 14 13 15 11 10 12 12 0 2 -82-81 SHRITAMA BOSE Mumbai, November 1 HAVING LENTLARGE sums as consumerdurables loans,over the past couple of years banks seem to be shying away from them possibly fearing delinquencies.Outstandingloansto the segment dropped a sharp 82% year-on-year (y-o-y) to `3,225croreonSeptember28. Banks may be letting nonbanking financial companies (NBFCs)playinthisspacegiven -3 Other personal -3 -8 Vehicle loans -1 Education DOMESTIC CARRIERS ARE projected to post the steepest losses in a decade in the current fiscal owing to higheraviation turbine fuel (ATF) costs and falling rupee, rating agency Crisil said in a report on Thursday. While pitching for a 12% hike in airfares to offset the increased costs, the report forecast debt liability of three listed airlines to go up by10% by FY19. At present,full-service carriers Jet Airways and budget airlines SpiceJet and IndiGo, which are listed on bourses, account for 71% of the total passenger traffic. ATF accounts for 35-40% of the total cost of airlines, while aircraft, engine rentals and maintenance costs,which are denominated in dollars, together account for another 30-35% of the costs,as perthe Crisil report. how exposure to NBFCs jumped 41.5% in September. Lenders saythere is heightened risk aversion due to defaults on these advances which are given for the purchase of products such as smart devices and home appliances. A year ago, the outstanding credit to this space was `17,846 crore, data released by the Reserve Bank of India (RBI) showed. Continued on Page 2 4G SURVEY Airtel best in download speed, Jio in coverage (%) 5.47 7.53 96.70 (Mbps) Latency experience (milliseconds) 72.20 (0-100 score) Download speed 86.53 4G availability 73.99 Video experience 38.63 WITH DATA BECOMING the buzzword in mobile communication, speed is of essence andwith LTE 4G becoming the norm,downloadspeedisanew contested area between telecom operators. The latest report by OpenSignal, an international agencythat tracks data download speeds and network coverage, shows that though Reliance Jio and Bharti Airtel are neck-and-neck on almost all the parameters, Bharti has a slight edge over Jio in the overall race. While Jio continues to be the leader as far as the 4G network coverage is concerned with a 96.70% coverage of its LTE network, Bharti has topped the charts on the overall download speed front with a speed of 7.53 Mbps. In terms of network coverage,which basicallymeans the ability to find a 4G signal, Bharti trails Jiowith a coverage of73.99%.Similarly,ondownload speed, Jio trails Bharti 39.30 FE BUREAU Mumbai, November 1 Source: Open Signal Mobile Network Experience Report with a speed of 5.47 mbps. Interestingly, the gap between Bharti and Jio widens GST collection crosses `1L cr for second time since launch Gives Centre hope that wide revenue gap against its budget target could be narrowed in H2 in download speed only if the 4GdownloadspeedofBhartiis taken which is much higher at 9.96 mbps. It is its 3G download speed of 2.53 mbpswhich has brought down its overall speed to 7.53 mbps. This means that gradually as Bharti’s 4G network expands and3Gisshutdown,speedlevels should further improve. Jio being ahead of Bharti in terms of 4G coverage is understood because it is a fully LTE4G network whereas Bharti is graduallyextendingits4Gnetwork and has substantial networks of 2G and 3G services. Continued on Page 2 Gross GST revenue (` crore) Average (2017-18) Apr ‘18 89,885 1,03,459 May June MONTHLY GOODS AND services tax (GST) collections breached the `1-lakh-crore mark forthe second time since its launch in July last year for September (collected in October), giving the Centre some hopethatthewiderevenuegap against its budget target could be narrowed in the second half of the fiscal. While the latest figure is about 4% higherthan the average of the first seven months of the fiscal and analysts said it may have reflected the tax’s stabilisation and increased compliance due to anti-evasion steps like e-way bill, the fact that September was the deadline for final set- 95,610 July 96,483 Aug 93,960 Sept 94,442 Oct FE BUREAU New Delhi, November 1 94,016 1,00,710 tlement of lastyear’s tax liabilities might have also boosted collections. It remains to be seenifthelatestspurtheralded a sustainable trend. GSTrevenuehadlastcrossed the `1-lakh-crore threshold for March 2018 (collected inApril), again a settlement month. The government said: “The total gross GST revenue collected in October 2018 is `1,00,710 crore of which central GST is `16,464 crore,state GST is `22,826 crore, IGST is `53,419 crore (including `26,908 crore collected on imports) and cess is `8,000 crore(including`955crorecollected on imports). The total number of GSTR 3B returns filed for September up to October31,2018,is 67.45 lakh.” The monthly gross (predevolution) GST revenue (excludingcess)fortheCentreto meetitsbudgetestimateisalittle over `54,000 crore.Against this, it got `48,954 crore in October (after regular and provisional settlement of IGST) compared with an average of around `39,000 crore in AprilOctober.Therevenueshortfallis not as much a concern for the states as the Centre as the former is protected by a 14% assuredrevenuegrowthundera compensationmechanismthat has constitutional backing. Continued on Page 2 PMI FE BUREAU Manufacturing grows at quickest pace in 4 months 53.1 55 53 50.4 51 All major segments of personal loan registered deceleration (sept ‘18 vs Aug ’18) FE BUREAU Mumbai, November 1 OCTOBER NUMBERS Continued on Page 2 25 TVS Credit card 437,548 490,124 going by the wholesale despatches,” Gaurav Vangaal, senior analyst for forecasting at IHS Markit,said. While despatches of bikes and scooters jumped by 1225% y-o-y, this came off a favourable base due to the early festive season in 2017. YS Guleria, senior vicepresident (marketing & sales), HMSI, had been cautious ahead of Navratri, saying consumers would need to be coaxed into paying more for bikes and scooters. HMSI’s despatches rose 12% y-o-y during the month. (Figure in units) October '17 October '18 % change Advance against shares, etc HUNDREDS OF employees at Google offices around the world, including in India, on Thursday staged a series of walkouts, reports PTI. "Google Walkout” was in protest over the company's treatment of women and leniency towards senior executives accused of sexual misconduct after a report had detailed years of sexual harassment allegations and hefty severance packages for accused executives. PAGE 14 FE BUREAU New Delhi, November 1 INDIA HAS DECIDED to defer its plan for a third time to retaliate against extra US duty on its steel and aluminium, even as the Trump administration onThursdaywithdrew the benefit of concessional tariffs underits so-called generalised system of preference (GSP) for 50 Indian goods. Theimpositionofextratariffworth$235millionbyIndia on 29 American goods will be delayed by 45 days from the November 2 deadline as India hopes to clinch a mutuallyacceptable trade package from the ongoing negotiations, an official source told FE. New Delhi takes heart from the fact that it still remains the biggestbeneficiaryoftariffconcessionsunderGSPandthatthe US’was not a country-specific move rather a product-specific one (as many as 94 items were dropped from the GSP list, impactinganumberofnations). Advance against FDs Google workers across the world walk out over treatment of women 17 Housing QuickPicks Ashok Leyland Durables INOX Leisure’s Alok Tandon on the company’s growth plan, its aspirational positioning, the importance of ancillary revenue streams and threat from OTT players ■ BrandWagon, P13 Exports of the 50 items to US in 2017 « ‘Advertising, F&B are key growth verticals’ Tata Motors 22 270,372 338,988 49,588 52,001 135,128 135,948 734,668 11 ● FY19 OUTLOOK Special Feature $72.4 m « 2.6 « 631,105 Tata Motors Indian products to be hit by US move to drop 94 items from GSP benefit list « 12 M&M « 16 Hero Honda MotoCorp 2wheelers 50 Commercial vehicles « 4.9 « INDIA IS CLOSE to a deal with the US that will allow it to continue buying crude oil from Iran without attracting any sanction after it agreed to cut imports and escrow payments, sources said, reports PTI. US sanctions on Iran's oil buyers snap back on Monday, forcing importing countries to negotiate with the US for waivers by making cuts in purchases or risk getting blocked from the US financial system. RC BHARGAVA’S PREMONITION seems to have come true.The Maruti Suzuki chairman had said last week there were few signs of festivity in the car market. Indeed, sales of cars in Octoberreflected little festive cheer with the growth in passenger vehicles skidding to very low single digits. The country’s top four carmakers reported only a 2.5% year-on-year rise in wholesale volumes as consumers shied away from purchases thanks to higherinsurance premiums, fuel prices and interest rates. Maruti Suzuki reported flat sales, up by 0.6% y-o-y. The subdued wholesale despatches in October reflect weak consumer sentiment, Rajan Wadhera, president, automotive sector, Mahindra & Mahindra,said. “Wearesomewhatcautious on sales during the festive sea- « Iran oil: India close to winning US sanction waiver ARUN NAYAL New Delhi, November 1 0.6 Maruti Hyundai Suzuki Two-wheelers - « WITHIN A MONTH of being appointed by the Centre as a director on the board of debt-ridden IL&FS, GN Bajpai has resigned, citing personal reasons, reports PTI. Bajpai, an ex-Sebi and ex-LIC chairman, was one of the seven directors appointed on the company's board. « IN THE NEWS In a jolt to IL&FS revival, GN Bajpai quits board Little festive cheer with growth in PV sales skidding to very low single digits, reflecting weak consumer sentiment Passenger vehicles US scraps GSP sops, India still defers counter-move India's manufacturing sector activity improved in October as new order flows were the fastest since June. However, export orders displayed the slowest expansion since July. 50.9 49 47 45 Sept 2018 48.7 Jan 2017 Manufacturing PMI Services PMI Note: Reading below 50 suggests contraction and above it indicates expansion Oct 2018 Source: Nikkei; IHS Markit
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