OPINION, P8 COMPANIES, P7 SURJIT BHALLA The leaked NSS jobs’ report is a statistical embarrassment INTERNATIONAL, P14 EDITORIAL ANOTHER SETBACK SLOW RIDE AHEAD Black hole pic is epochal, everything since Einstein's work has led up to this Mallya fails to delay $40-m Diageo claim, legal costs mount in UK Uber unveils IPO with warning it may never make a profit NEW DELHI, SATURDAY, APRIL 13, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLV NO. 36, 18 PAGES, `10.00 (PATNA `9.00, RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 38,767.11 ▲ 160.10 NIFTY: 11,643.45 ▲ 46.75 NIKKEI 225: 21,870.56 ▲ 159.18 HANG SENG: 29,909.76 ▲ 70.31 `/$: 69.18 ▼ 0.25 `/€: 78.31 ▼ 0.59 BRENT: $71.45 ▲ $0.62 GOLD: `31,673 ▼ `97 FINAL COUNTDOWN Eight suitors line up for Jet Airways RESULT CORNER TCS posts robust profit, revenues Q3FY19 Q4FY19 % chg Operating Net Operating Revenue income profit margins (%) 8,105 8,126 25.1 25.6 « 50bps « 9,564 9,537 0.26 Source: Company « 0.3 1.8 « 37,338 38,010 « (` cr) TCS BEAT STREET estimates on net profit and revenues, missed analyst expectations on margins, reports fe Bureau in Mumbai. The consolidated net profit for January-March came in at a strong `8,126 crore. Revenues at `38,010 crore were much ahead of Street’s forecasts. PAGE 6 Infy beat estimate, lowers guidance Margins (%) 21.4 12.9 22.6 1.20 « 3,610 Net profit « « 0.60 % chg 4,078 21,539 Revenue Q4FY19 « (` cr) Q3FY19 21,400 Apart from Etihad, TPG and Indigo Partners put in bids; international operations suspended till April 15 INFOSYS ON FRIDAY posted its January-March quarter earnings, which were above analysts expectations, with a 0.6% sequential rise in revenues at `21,539 crore, reports fe Bureau in Bengaluru. However, it lowered its FY20 revenue forecast to 7.5-9.5% in constant currency, from 8.5-9.0% in FY19. PAGE 6 MANISHA SINGHAL Mumbai, April 12 ON THE LAST day of submissionofbidsfortakingchargeof troubled carrier Jet Airways, it is understood that eight parties have evinced interest. As earlier reported, apart from Jet’s 24% equity partner Etihad Airways, other major parties to have put in bids are USbased private equityfirmsTPG and Indigo Partners,who have bid separately, and Think Equity Partner and Redcliffe Capital,who have jointly bid. Contrary to expectations, US-based Delta Airlines, Air France-KLM and Air Canada did not put in bids. It is understoodthatJetAirways promoter-chairman Naresh Goyal,who has stepped down from the board as part of the bank-led resolution process, has also put in his bid The final bidders ■ US-based PE firms TPG & Indigo Partners; Think Equity partners & Redcliffe Capital as a consortium ■ Abu Dhabi-based Etihad Airways ■ Jet founder Naresh Goyal in individual capacity Individual bidders ■ Joint bid by Sanjay Bijlani & Sunil Soni ■ Jet Airways' EVP Nikhil Vaid; Chaitanya Kumar, formerly of Lehman Brothers Deepening crisis ■ Jet to operate 6-7 aircraft April 13 onwards ■ International operations suspended till April 15 in an individual capacity but this could not be ascertained. Goyal could not be reached for comments. It is understood that some individuals have also put in bids alongwith some financial investors. These include one Sanjay Bijlani and Sunil Soni, who have jointly bid. Similarly, Chaitanya Kumar, formerly of Lehman Brothers, has also put in a bid. Interestingly,Capt NikhilVaid, currently executive vice-president at Jet Airways, has also putina bidinpartnershipwith a Muscat-based firm. Meanwhile,there has been no respite in the deepening crisis which has crippled Jet’s operations,with civil aviation secretary Pradeep Kharola stating on Fridaythat the troubled carrier will be down to 6-7 operational aircraft Saturday onwards. Kharola said this after reviewing Jet’s operational position through a video conferencewith the airline’s management. He said the Jet officials had met lenders on Friday seeking interim funding to keep the beleaguered airline afloat. “Jet has been asked by its lenders to restructure interim funding demand.It has funds to stay afloat till Monday.The airline will continue discussions with lenders on April 15,” the civil aviation secretary told reporters. Continued on Page 2 PMO calls urgent meeting to discuss situation, Page 6 SpiceJet to induct 16 Boeing aircraft FE BUREAU New Delhi, April 12 SPICEJET ON FRIDAY said it willinduct16Boeing737-800 NG aircraft on dry lease to bring down its flight cancellations. The aircraft are likely to beinductedinthenext10days with SpiceJet applying for no objection certificates (NoCs) from the Directorate General of Civil Aviation (DGCA) for import of these planes. This would take SpiceJet’s fleet strength to 80,which got curtailed due to grounding of 12 fuel-efficient, Boeing 737 aircraftfollowinganEthiopian Airlines plane crash on March 10.The airline had to cancel 35 daily flights during March. As a result, SpiceJet’s fleet reduced to 64 planes compris- ing 37 Boeing 737s and 27 Bombardier Q400s aircraft. Under the dry lease arrangement, the lessors provide aircraft without crew, ground staff,etc. SpiceJet’s stock rose 8.5% ontheBombayStockExchange to close at `109.90 after the announcement. Continued on Page 2 POWER BOOST CERC allows tariff hike for Adani Power’s Mundra unit Regulator’s move to amend PPA with GUVNL could end the travails of the imported coal-based unit ANUPAM CHATTERJEE New Delhi, April 12 ADANI POWER'S BELEAGUERED,importedcoal-based Mundra power project on Friday got a much-needed booster with the Central ElectricityRegulatoryCommission (CERC) allowing tariff hike for 2,000 MW capacity linked to Gujarat discom GUVNL by amending the powerpurchase agreement (PPA). The regulator’s move, whichkeeps hopes alive forthe plants of Tata Power and Essar PowerinGujaratfacingsimilar problems, could allow Adani Current under-recovery of Adani Power's Mundra unit: ■ Adani Power Mundra's Likely tariff hike from CERC order for Gujarat discom: `11,180 cr `1.45/unit* `0.8/unit (33%) Power to hike tariffs by `0.80/unitorclosetoathirdin the current coal environment. Edelweiss Securities had said that the tariff hike (as recommended bya high-powered committee and now approved by the regulator) could boost SC asks RP for status quo on distribution of `42k cr THE SUPREME COURT on Friday asked Essar Steel’s resolution professional (RP) to maintain status quo with regard to distribution of ArcelorMittal’s bid amount of `42,000 crore between financial and operational creditors. A Bench led by justice RF Narimanclarifiedthat“itisnot necessary to carry out the order”with regard to distribution of funds, referring to the NCLT’s March 8 order which had approved ArcelorMittal’s `10,300 cr (Q3FY19) ■ Outstanding debt: ■ Lenders' haircut to salvage plant: `3,821 cr (*While the plants' installed capacity is 4620 MW, order to impact only 2,000 MW tied to Gujarat discom) ● ESSAR STEEL BID FE BUREAU New Delhi, April 12 accumulated losses: bid for Essar Steel. However, it directed the National Company Law Appellate Tribunal (NCLAT) to dispose of the case on the distribution of the bid sum expeditiously. Earlier this week, the NCLAT had said that ArcelorMittal maybe asked to deposit the money in an escrow account either with it or the NCLT,Ahmedabad. The appellate tribunal on March 18 had refused to stay the NCLT’s order approving ArcelorMittal’sbidtotakeoverEssarSteel. earnings before interest,taxes, depreciation and amortisation (Ebitda) of the firm by about `1,600 crore (annually) at 70% PLF level. There’s also a 20 paise/unit cut in capacitycharge owing to the haircut by lenders. Double trouble How to knit a sports car with carbon fibre McLaren has been making sports cars out of carbon fibre since 1981. BMW uses a variant of resin transfer moulding (RTM) to make bodies of its i3 electric cars ■ Motobahn, P13 QuickPicks Chevron to buy Anadarko for $33 bn in shale, LNG push CHEVRON ON Friday said it will buy Anadarko Petroleum for $33 billion in cash and stock to bolster its position in shale oil and the LNG market, reports Reuters. This is the biggest industry merger since Royal Dutch Shell bought BG Group for $61 billion in 2016. With oil prices surging, Chevron and larger rival Exxon Mobil have been raising investment in the US' Permian basin, the most prolific shale oil field in the country. PAGE 14 Vedanta Resources raises $1 bn through bond issue VEDANTA RESOURCES said on Friday it had raised $1 billion through a bond issue and would use the proceeds to repay existing debt, reports Reuters. The bonds, sold in two tranches, were issued through Vedanta’s arm Vedanta Resources Finance II and it attracted interest from investors across globe. The decision was seen by some as a prelude to a potentially broader deal with bigger miner Anglo American. TikTok removes over 6 m videos in India for violating norms TIKTOK, A popular short video platform, on Friday said it has removed over six million videos in India that have violated its community guidelines since July last year, reports PTI. It has also introduced an 'age-gate' feature for its new users that will only allow users aged 13 years and above only to login and create an account on TikTok. It does not disclose data such as country-specific user numbers. PAGE 7 FE BUREAU Industrial IIP growth plunges production grew 10 (%, y-o-y) just 0.1% in 8 February, with 6 capital goods 4 recording its third 2 contraction in the 0 0.1 past four months. -2 -0.3 June 2017 Feb 2019 Retail inflation hit 2.86% in March, the Food inflation back in positive zone highest since 8 (% change, y-o-y) Core CPI October 2018, as 6 5.4 5.3 price pressure in 4 4.28 2.86 food returned after CPI 2 2.81 five months of 0.3 0 deflation, although CPI food -2 the more sticky core -4 March 2018 March 2019 inflation eased a tad. Source: MoSPI Continued on Page 2 ● RBI FEB 12 CIRCULAR IBA wants ‘one-day default’ rule scrapped Tell EC who funds you: SC to parties FE BUREAU New Delhi, April 12 THE SUPREME COURT on Friday directed parties to furnish by May 30 all the details of funds received by them via electoral bonds, including the donors’identity,totheElection Commission of India (ECI) in a sealed cover, in a move that could bring in more transparency to the government’s political funding scheme. A Bench led byChief Justice Ranjan Gogoi while refusing to stay the electoral bonds scheme said that the ECI will keep the record of the money received by parties through this instrument. Besides,the apex court also directed the finance ministry to reduce the window of purchasing electoral bonds from 10 days to five days in AprilMay.It directed the ministryto tweak the window period for purchasingtheelectoralbonds and reduce it from present 55 days to 50 days in 2019. The court further said that itwould give in-depth hearing on the “weighty issues” raised by the petitioners, which have “tremendous bearing on the sanctity of the electoral process in the country”. SBIhadsoldelectoralbonds worth `1,057 crore between March and November 2018 and this sale has jumped to `1,716 crore between January and March this year, revealed an RTI response sought by a Pune-based activist. Separately,according to theAssociation for Democratic Reforms (ADR), BJP has received an Continued on Page 2 IIP growth at 20-month low, inflation at 5-month high ELECTORAL BONDS Special Feature TheAdani Powerstockwent up 5.2% on Friday to close at `52.95. The regulator also allowed pass through of coal costs,subject to a cap of $110/tonne. Additionally, it allowed extension of PPA with GUVNL by another 10 years after the completion of the 25-year tenure by 2032. The supplemental PPA will take effect retrospectively from October 15,2018. Adani Power is the first to benefit from the Supreme Court’s October 29,2018,ruling that extended the lifeline to the three troubled imported-coal-based power plants in Gujarat (Tata Power’s Mundra unit and Essar’s Salaya plant are the other two) by allowing the CERC to amend their PPAs to facilitate pass-through of future fuel price escalation, subject to a ceiling. MITALI SALIAN Mumbai, April 12 swords while discussing electoral preferences.The graffiti is incidental then. If you speak to them separately, their election talk will appeartobepointingtotwodifferent elections — one about immediate personal matters, the other on selfless issues far removed. In fact, the conversations seem to suggest that there are very few undecided voters weeks before the elections. BANKS HAVE SUGGESTED the ‘one-day default’ rule be done away with recommending instead they be given 30 days post a default to classifya stressedassetas a special mention account. The suggestion is one of many understood to have been sent by them to the Reserve Bank of India (RBI). Banks are seekingchangestotheFebruary 12, 2018, circular on “Resolution of Stressed Assets — Revised Framework”, after the Supreme Court termed the circular ultra vires, two bankers told FE.Following RBI governor Shaktikanta Das’ announcement the RBI would issue a revised circular following the apex court’s verdict,the Indian Banks’Association has written totheRBIwithatleastsevenrecommendations. Onesuggestionistodoaway with the implied requirement for 100% approval from creditorsbeforegoingaheadwithany restructuring plan. “We have requested that the approval requirementbeloweredto66% orsomewherethereabouts.Previous mechanisms and even the IBC prescribes a lower threshold of required majority. The 100% majority norm has sometimes made it difficult for lenders to go ahead with plans despite the best intentions,” a seniorbanker aware of the contents of the lettersaid. Continued on Page 2 Continued on Page 2 ORDER, ORDER ■ Apex court refuses to stay the electoral bonds scheme, says ECI will keep the record of money ■ Directs finance ministry to reduce window of purchasing electoral bonds from 10 days to five days in April-May ■ Asks ministry for tweak in window period for purchasing and reduce it from present 55 days to 50 days in 2019 overwhelminglylarge share of the bonds. Of the `215 crore generated through the banking instruments in 2017-18, the ruling party secured `210 crore and the Congress just `5 crore,the ADR report shows. The bonds don’t name the donor or the political party he is donating to, but these can be bought only through bank accounts after meeting all the KYC norms. The validity period of the bonds is restricted to just 15 days to ensure they do not become a parallel currency. Continued on Page 2 Standing tall Cutouts of Congress president Rahul Gandhi, general secretary Priyanka Gandhi Vadra, UPA chairperson Sonia Gandhi, DMK president MK Stalin and other leaders are seen at an election campaign rally, in Krishnagiri district on Friday Stirring in UP: Latrine meets ASAT, cattle on road hits ‘chautha sthan’ RAVISH TIWARI Bareilly/Moradabad, April 12 UNLIKE THE MEGAPOLISES where graffiti culture thrives, the Uttar Pradesh landscape is dotted with some very basic graffiti that signal a big leap in behavioural change in rural north India. The hard-to-miss graffiti that adorn small brick-layered cubicles — latrines in local parlance, built with government grants — outside individual homes seek to cover up the story of limited means, of the complex socio-cultural underpinnings in the poorer parts. These stand outside homes becauseculturallyitiseithertoo big a leap to make space for a kitchenortoiletwithintheconfines of same house, or it is too much to accommodate a cubicle of that size within the confinesoftheirmodestfourwalls. Toiletsandcattlemenaceare twouniversalcommongrounds where supporters/rivals of the incumbentBJPandtheOpposition mahagathbandhan cross
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