MARKETS, P6 MAKING PROFIT COMPANIES, P5 Yes Bank Q1 net jumps over fourfold to `207 crore INTERNATIONAL, P8 WEEKLY AUCTION ‘ARM-TWISTING’ IRKING INDIA Bond yield rises after RBI partially devolves benchmark bonds on primary dealers HC quashes UP police notice to Twitter India MD Manish Maheshwari China’s Xi vows to expand border construction in first official visit to Tibet CHENNAI/KOCHI, SATURDAY, JULY 24, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIII NO. 66, 12 PAGES, `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: 52,975.80 ▲ 138.59 NIFTY: 15,856.05 ▲ 32.00 NIKKEI 225: 27,548.00 ▲ 159.84 HANG SENG: 27,321.98 ▼ 401.86 `/$: 74.41 ▲ 0.06 `/€: 87.58 ▲ 0.25 BRENT: $73.60 ▼ $0.19 GOLD: `47,560 ▲ `89 IN THE NEWS Exports jump 45% during July 1-21 THE COUNTRY'S exports grew 45.13% to $22.48 billion during July 1-21 on account of healthy growth in sectors such as gems and jewellery, petroleum and engineering, according to the provisional commerce ministry data, reports PTI. Imports also rose 64.82% to $31.77 billion in the said period. At $612.73 bn, forex reserves hit record high THE COUNTRY'S foreign exchange reserves rose by $835 million to touch a record high of $612.73 billion in the week ended July 16, RBI data showed, reports PTI. In the previous week ended July 9, 2021, the reserves had surged by $1.883 billion to $611.895 billion. UNGA presidentelect calls on PM Modi UNGA PRESIDENT-ELECT Abdulla Shahid on Friday called on Prime Minister Narendra Modi who emphasised the importance of reforming the multilateral system to reflect the current realities and aspirations of a vast majority of the world's population, reports PTI. TURNED DOWN No recalculation of AGR dues, says SC in setback for telcos Verdict to hit Voda Idea hardest as it needs to pay highest amount FE BUREAU New Delhi, July 23 STICKING TO ITS original order and oft-repeated stance, the Supreme Court on Friday dismissed the individual pleas of telcos — Bharti Airtel,VodafoneIdea,andTataTeleservices — seeking rectification of arithmetical errors in calculationoftheiradjustedgrossrevenue (AGR) dues made by the department of telecommunications (DoT). The ruling is a setback for the operators, especially the financiallystretched,Vodafone Idea, which needs to pay the highest amount as dues as per the calculation of the DoT. The three operators in their individual pleas had taken pains to put across to the court that theywere not seeking any reassessment of the dues but merely correction in arithmetical errors, which means double counting, overlooking entries, certain payments not Dues as per DoT Dues as per self-assessment Dues paid (in ` crore) Bharti Airtel 43,980 13,004 18,004 Vodafone Idea 58,254 21,533 7,854 Tata Teleservices 16,798 2,197 4,197 being reflected,etc. Though Friday’s orderonce againclarifiesthattherecanbe no reassessment or rectification of the errors, what’s still not clear is whether the companies need to pay an upfront 10% of their balance dues or total dues. The interpretation of the operators and DoT differs on the matter. Continued on Page 2 CCI PROBE REPORT CARD At `3,651 cr,Jio profit HC rejects pleas of Amazon, Flipkart up 4% in Q1; Arpu flat Data usage sees sharp 17.3% q-o-q jump at 15.6 GB FE BUREAU Mumbai, July 23 RELIANCE JIO ON Friday reported a good set of numbers fortheApril-Junequarter,beating analyst estimates on financials as well as operating metrics, which surged sharply on unprecedented growth in data consumption. The company, however,missednetsubscriber additions by a whisker at 14.3 million.Itwasestimatedtohave net adds of 15 million. Net profit increased 4% sequentially to `3,651 crore. The revenue during the quar- Reliance Jio: Key performance indicators Voice usage per sub (Mins) Data usage per sub (MB) 12,900 15,600 13,300 Q3FY21 Q4FY21 796 Q1FY22 Volume (Million MB) Q3FY21 16,680,000 Q4FY21 Q1FY22 818 Q1FY22 Volume (Million mins) 15,860,000 Q3FY21 823 Q3FY21 Q4FY21 9,74,960 Q4FY21 20,300,000 10,32,900 Q1FY22 10,60,000 151 138.2 138.4 Q3FY21 Q4FY21 Arpu (`) Q1FY22 ter was up 3.7% to `18,952 crore, led by subscriber additions, while Ebitda was up 3.7% at `8,892 crore on a flat Arpu (average revenue per user). The company’s Ebitda margins remained flat at 46.9% during the quarter. Arpuforthequarterat138.4 was flat as the preceding quarter Arpu of `138.2, but was in linewith analyst expectations. Continued on Page 2 RIL net profit drops 7.3% to `12,273 cr, misses estimates Reliance Retail reports net revenues of `33,566 cr in Q1 RELIANCE INDUSTRIES (RIL) on Friday missed estimates byreporting a consolidated net profit of `12,273 crore for the April-June quarter, down 7.3% on a year-on-year basis, reports fe Bureau in New Delhi. The company’s consolidated revenues during the period at `1.4 lakh cror were up 58.2% y-o-y, slightly behind Bloomberg consensus estimates. ■ Report on Page 4 RELIANCERETAILonFridayreportednetrevenues of `33,566 crore on a consolidated basis in the three months ended June, an increase of about 19% compared with the year-ago period, reports fe Bureau in New Delhi. Net revenues stood at `28,197 crore in Q1FY21. The company’s Ebitda increased to `1,941 crore from `1,079 crore in the year-ago period. ■ Report on Page 4 Says e-commerce majors shouldn’t shy away from inquiry if they haven’t violated rules FE BUREAU New Delhi, July 23 IN A MAJOR setback for Amazon and Flipkart, a division bench of the Karnataka High Court on Friday dismissed the individual appeals filed by the e-commercefirmschallenging a probe by the Competition Commission ofIndia (CCI) into their alleged anti-competitive business practices. The division bench comprising Justice Satish Chandra Sharma and Justice Nataraj Rangaswamy said “by no stretchofimagination”canthe inquiry be quashed at this stage. The bench further said Amazon and Flipkart should notfeelshyoffacinginquiryby the CCI if they have not violated provisions of the CompetitionAct.The appeals submitted by the firms are “devoid of merits and substance and deserve to be dismissed”, the bench stated. ThesinglebenchoftheKarnataka HC had last month given the CCI the go-ahead to SNOOPGATE Special Features Tight battery market next test for EVs after chip crisis Rising demand from EVs and challenges in securing raw materials will deliver a battery supply crunch for global automakers that are already grappling with a chip crisis. ■ Motobahn, P7 A weak start to the fiscal for HCL Technologies Mgmt expects growth to be strong sequentially in the next few quarters; FY22/23/24e EPS lowered by 2.4/3.2/1.1%; TP cut to `1,220 from `1,255; ‘Buy’ rating maintained ■ Investor, P7 QuickPicks Before pandemic hit, job scenario improved in 2019-20: NSO LABOUR INDICATORS recorded an all-round improvement in 2019-20 compared with the previous two years, data released by the National Statistical Office (NSO) on Friday showed, reports fe Bureau in New Delhi. According to the third annual report on periodic labour force survey (PLFS), conducted by the NSO between July 2019-June 2020, unemployment rate fell to 4.8% in 2019-20. In 2018-19, the unemployment rate was 5.8% and it was 6.1% in 2017-18. PAGE 2 JSW Steel posts highest-ever quarterly net of `5,900 cr in Q1 JSW STEEL beat analyst estimates on all fronts and reported its highest-ever consolidated quarterly net profit of `5,900 crore for the quarter ended June, supported by higher steel sales volumes on the back of increase in demand across sectors especially from automobiles which jumped five times, reports fe Bureau in Mumbai. Bloomberg's consensus estimates had pegged the net profit at `4,850.31 crore. PAGE 4 RBI eases norms for loans given by banks to other banks’ directors THE RESERVE Bank of India (RBI) on Friday said banks without their boards' approval can sanction personal loans up to `5 crore to directors of other banks, reports PTI. The earlier limit was `25 lakh. According to the notification, proposals for credit facilities of an amount less than `25 lakh or `5 crore (as the case may be) to such borrowers may be sanctioned by the appropriate authority in the financing bank but the matter should be reported to the board. SEPT 2020: CCI files appeal in the SC against the interim stay order issued by Karnataka HC JUNE 2021: Single bench of the Karnataka HC allows CCI to resume probe ■ Flipkart & Amazon approach division bench & file legal appeals challenging the order probe the two e-commerce majors following which the companies had filed writ petitions challenging the order.In its appeal, Flipkart had said if the investigation was to continue,itwould cause“irreparable injury”to the firm. Continued on Page 2 Bharat Biotech cancels MoU with Brazilian partners PRESS TRUST OF INDIA New Delhi, July 23 PRESS TRUST OF INDIA Hyderabad, July 23 Congress leader Rahul Gandhi and MPs of other parties hold a banner demanding an SC probe into the Pegasus case Court Monitored Judicial Probe”,the MPs raised slogans like “ye jasoosi bandh karo (stop this spying)”. Continued on Page 2 NCLAT refuses to stay Piramal resolution plan for DHFL on 63 Moons’ plea THE NATIONAL COMPANY Law Appellate Tribunal (NCLAT) on Friday refused to stay the implementation of Piramal’sapprovedresolution plan for Dewan Housing Finance (DHFL) on the plea filed by 63 Moons Technolo- FEB 2020: Amazon moves Karnataka HC seeking stay on the probe; court grants interim stay ● GRAFT CHARGES Pegasus row: Oppn demands SC probe SEVERAL OPPOSITION MPs, including Congress’ Rahul Gandhi, on Friday protested against the government inside Parliament complex over the Pegasus snooping issue and demanded a Supreme Court-monitored judicial probe into the matter. Besides Gandhi, a host of senior Congress MPs like Leader of Opposition in Rajya Sabha Mallikarjun Kharge, party’s leader in Lok Sabha Adhir Ranjan Chowdhury, K C Venugopal and Shashi Tharoor, DMK’s Kanimozhi and Shiv Sena’s Priyanka Chaturvedi,were present during the protest in front of Mahatma Gandhi’s statue inside Parliament complex. Carrying a banner which read “#PegasusSnoopGate We demand Supreme JAN 2020: CCI directs DG to probe Amazon & Flipkart following a plea by DVM gies,adebentureholderofthe debt-riddenmortgagelender, reports fe Bureau in New Delhi. 63 Moons Technologies holds non-convertible debentures(NCDs)worthover `200croreissuedbyDHFL. ■ Report on Page 4 READY, SET, GO! Flag-bearers, hockey captain Manpreet Singh and boxer Mary Kom, with other Indian athletes during the opening ceremony of the much-delayed Summer Olympics 2020, in Tokyo on Friday Friday feast FE BUREAU Zomato sizzles on market debut In a stellar debut on Friday, food delivery major Zomato’s shares surged 66% against the issue price of `76. Its m-cap zoomed past the `1-lakh-crore mark before closing at `98,731.59 crore. 140 138 High 135 130 Zomato Intra-day on BSE (`), July 23 125.85 125 120 115 115 110 Market cap (` crore) 98,732 Open Close BHARAT BIOTECH ON Friday said it has terminated the memorandum of understanding (MoU) enteredwith Precisa Medicamentos and Envixia Pharmaceuticals LL.C for its Covid-19 vaccine Covaxin for the Brazilian market. TheterminationoftheMoU came after the deal with the Braziliangovernmentforsupply of 20 million doses of the vaccine landed in controversy and attracted investigation by authoritiesin that country. Precisa Medicamentos is Bharat Biotech’s partner in Brazil, providing assistance, guidanceandsupportwithregulatory submissions,licensure, distribution,insuranceandconduct of phase III clinical trials, among others.“The Company has terminated the said MOU with immediate effect. Notwithstandingsuchtermination, Bharat Biotech will continue to work diligently with ANVISA,the Brazilian drug regulatory body to complete the regulatory approval process for Covaxin,” it said. BB had signed an MoU with Precisa and Envixia on November20,2020,forthe purpose of introducing Covaxin in Brazil. FOR A SMOOTHER DRIVE Tesla seeks sharp cut in import taxes on EVs in India ADITI SHAH New Delhi, July 23 TESLA INC HAS written to the Indian transport and heavy industries ministries seeking a big reduction in import duties onelectricvehicles(EVs),amove it says will boost demand and generate revenue for the government, two sources with knowledge of the mattersaid. Itspitch,however,islikelyto faceresistancefromthegovernment which has championed high import taxes for many Tesla has registered a local company and aims to begin sales in India this year It has ramped up local hiring and is said to be scouting for showroom space industries in a bid to boost local manufacturing. Other luxuryautomakers in India have also lobbied the gov- ernment in the past to lower taxesonimportedcarsbuthave hadlittlesuccessduetoopposition from rivals with domestic Transport minister Nitin Gadkari had said in MarchTesla would be given incentives if it manufactures locally operations. Tesla, which aims to begin sales in India this year,said in a letter to ministries and Niti Aayog that slashing central taxesonimportsoffullyassembled electric cars to 40% would be more appropriate,according to the sources.That compares with current rates of 60% for cars priced below $40,000 and 100%forthoseabove$40,000. “The argument is that at 40% import duty, electric cars canbecomemoreaffordablebut the threshold is still high enoughtocompelcompaniesto manufacture locally if demand picksup,”oneofthesourcessaid. The sources declined to be identified as the letter has not been made public. AccordingtoTesla’sUSwebsite, only one model — the Model 3 Standard Range Plus is priced below $40,000.Tesla and Niti Aayog did not respond to anemail seeking comment. MinistriesthatTeslawroteto didnotimmediatelyrespondto arequest forcomment. The Indian market for premiumEVsisstillverymuchinits infancy. Just 5,000 of the 2.4 million cars sold in India last yearwere electric. —REUTERS CHENNAI/KOCHI
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