OPINION, P6 NATION, P3 BISWAJIT DHAR Three decades since 1991, India is a reluctant liberaliser COMPANIES, P5 EDITORIAL SPECULATION ENDS VICTORY FOR BANKS India Inc's pain is not yet over; jobs situation needs to improve, hospitality, retail need to recover BS Yediyurappa resigns as CM, says will remain active in Karnataka politics UK High Court declares Mallya bankrupt for Indian lenders to realise debt KOLKATA, TUESDAY, JULY 27, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 30 NO. 228, 16 PAGES, `8.00 (NORTH EAST STATES & ANDAMAN `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: 52,852.27 ▼ 123.53 NIFTY: 15,824.45 ▼ 31.60 NIKKEI 225: 27,833.29 ▲ 285.29 HANG SENG: 26,192.32 ▼ 1,129.66 `/$: 74.42 ▼ 0.01 `/€: 87.80 ▼ 0.22 BRENT: $74.15 ▲ $0.05 GOLD: `47,763 ▲ `203 TENDER DELAYS L&T’s Q1 profit misses estimates 1,174 1,620 3,171.49 303 Net profit 7.6 Ebitda margins (%) 12.6 23,574 6.2 26,557 3.05 lakh 3.24 lakh in the company’s consolidated revenue from operations to `29,335crore.However,project progress was impacted with regionallockdowns,shortageof industrial oxygen and supply chain disruptions. Continued on Page 2 PAYTM EXPECTS to launch its initial public offering (IPO) at around the end of October, pending regulatory approvals, a source said on Monday, reports Reuters. Paytm, which has filed for a `16,600-crore IPO that will likely be the largest ever in India, also expects to break even in 18 months, the source said, declining to be named as the matter is not public. "Hopefully Paytm will be able to go out before Diwali," the source said. PAGE 4 SC upholds Irdai order asking SBI Life to refund `84 cr IN A setback to SBI Life, the SC on Monday upheld the Irdai’s 2012 order asking the insurer to refund `84 crore with interest it had collected from policyholders under a defunct scheme, reports Indu Bhan in New Delhi. Irdai had ordered the refunds, as it felt that policy holders under the scheme should not have borne any cost arising from the 20% administrative charges paid by the insurer to the Master Policy Holders or the banks that sold its home loan product, in contravention of regulations. PAGE 10 Nearly $1 billion July 2021 ■ Epic $500 million 2021 ■ Toppr* An estimated over $100 million August 2020 ■ WhiteHat Jr $300 million January 2019 ■ Osmo $120 million *TheToppr deal is yet to be officially announced billion.Founded in 2013,MohanLakhamraju-ledGreatlearningthatisheadquarteredinSingapore claims to have delivered more than 60 million hours of learning to 1.5 million learners from over170 countries. Continued on Page 2 IN THE LIMELIGHT Tata Motors’ net loss Olympics medal lifts Mirabai’s brand value narrows to `4,450 cr FE BUREAU Mumbai, July 26 `8,443.98 crore a year ago Consolidated revenue from operations at `66,406.05 crore against `31,983.06 cr a year ago On a standalone basis, continuing business saw a net loss of ` 1,320.74 crore, SPORTSWOMAN MIRABAI CHANU,whowonasilvermedal forIndiaondayoneattheTokyo Olympics 2020 in the women’s 49kgweightliftingevent,seems tohavecaughtthefancyofquite a few brands.The athlete,who hails from Manipur, has won medals at Asian Championships, Commonwealth Games and World Championships in the past, but her current Olympics feat has transformed herintoanovernightsensation. Chanu currently endorses Adidas apparel,and has done a few digital engagements with Mobil. But her brand value is now expected to shoot up. Amongthefirsttocashinon hersuccesshasbeenDomino’s, which, over a tweet, has promised Chanu‘free pizza for life’ after she mentioned in an Continued on Page 2 from `2,190.64 crore a year ago Business resumption at levels prior to second wave The Nomura India Business Resumption Index (NIBRI) fell to 95.3 for the week ended July 25 from the recent high of 96.4 (the previous week), still at levels prior to the second wave but 4.7pp below prepandemic levels. Early data for June suggest a return to conditions similar to April, after the shallow decline in May ` Nomura India Business Resumption Index (NIBRI) 99.3 81 95.3 96.4 93.6 84.6 80.8 63 Continued on Page 2 Jul 4 Jul 25 Jun 13 May 2 May 23 Apr 11 Mar 21 Feb 7 Feb 28 Jan 17 Dec 6 Dec 27 Western investors grapple with China’s regulatory risk WESTERN INVESTORS ARE wrestling with the risks of investing in US listed stocks of Chinese companies after Beijing embarked on a regulatory crackdown on large swathes of its economy,from the internet sector to private tutoring. TheS&P/BNYMellonChina SelectADRIndex,which tracks the American depositary receipts (ADRs) of major US- listed Chinese companies, dropped 5.9% on Friday after Beijing moved to bar tutoring for profit in core school subjects, triggering a collapse in the shares in the sector. Itwas the latest in a series of actions by Beijing that have caused the index to lose 18.8% sincethebeginningoftheyear.A string of cybersecurity investigations by Chinese regulators into major technology companies such as Alibaba Group and Baidu has prompted many investors to dump theirshares. KIRAN RATHEE New Delhi, July 26 Continued on Page 2 LAW WITHOUT ORDER SVEA HERBST-BAYLISS & LEWIS KRAUSKOPF Boston/New York, July 26 Vodafone Idea rejigs post-paid plans China’slatestcrackdownon technology firms was announced just two days after ride-hailing giant Didi Global went public in New York at the endoflastmonth.Itssharesare down 42% since the initial public offering. The Chinese Communist Party’s uneasy relationship with private businesshasalwaysweighedonthe minds of Western investors who seek legal and regulatory certaintyto place their bets. 52.7 Source: Nomura Global Economics ● TARIFF TWEAK AFTER BHARTI AIRTEL,Vodafone Idea has also restructured its enterprise post-paid tariffs, in a bid to improve realisation per customer. However,Vodafone Idea has not increased headline tariffs but has reduced data benefits in a couple of plans while introducing a new `349 monthly plan. Vodafone Idea has around 25%corporatepost-paidusers initsoverallmobilebase,which ishighestintheindustry.Butas thecompanyhasnotincreased headline tariffs, the tinkering in enterprise post-paid plans is not going to yield a good average revenue per user (Arpu) jump for the company. Thecompanyhasthelowest Arpu of `107 per month among the three private operators and needs to raise tariffs substantially, including in the pre-paid segment, to remain financiallyviable. Tweaking its `299 monthly plan, Vodafone Idea has reduced the data benefits to 30 GB against 40 GB earlier. 69.1 Nov 15 Shubhra Tandon in Mumbai. In May, it signed an MoUtoconductafeasibility study with JFE Steel Corporation to establish the plant and a sales joint venture company in India. ■ Page 4 100 90 80 70 60 50 40 Oct 4 JSW Steel looks to set up grain-oriented electrical steel sheet plant on PLI boost FE BUREAU Oct 25 Continued on Page 2 Wobble at the top Sep 13 cles,up 68.1% year-on-year as sales continued to recover from the impact of the pandemic but shortage of semiconductor supplies constrained production. ` JSW STEEL’S PLANS to set up a grain-oriented electrical steel sheet manufacturingfacility will get a further fillip with the PLI scheme in the specialitysteel sector, reports @Mirabai_chanu Congratulations on bringing the medal home! You brought the dreams of a billion+ Indians to life and we couldn’t be happier to treat you to FREE Domino’s pizza for life Congratulations again!! Aug 23 HOMEGROWNAUTO MAJOR Tata Motors on Monday reported a narrowing of the consolidated net loss to `4,450.12 crore in the quarter ended June 2021. The company had posted a consolidated net loss of `8,443.98 crore a year ago, Tata Motors said in a regulatory filing. Consolidated revenue from operations during the period under review stood at `66,406.05 crore against `31,983.06 crore a year ago, the company added. The auto major’s British arm Jaguar Land Rover (JLR) posted revenue of 5 billion pounds in the first quarter, up 73.7% than Q1 in the prior year,the companysaid,adding JLR had a pre-tax loss of 110 million pounds. JLR retail sales in the first quarter were 1,24,537 vehi- Homegrown auto major narrows its losses from Jul 12 PRESS TRUST OF INDIA New Delhi, July 26 interview following the victory that she craved pizza.The company executives even sent pizzas to her family at home near Imphal to celebrate her win. Several otherbrands have congratulated her,but it is unclear which ones will eventually lap herupforendorsementdeals. “We have received queries from brands in categories such as women’s healthcare and nutrition,steel,tyres,an insurancecompanyandevenajewellery brand,” reveals Neerav Tomar,promoter,IOSSports &Entertainment,thetalent management firm that handles Chanu’s portfolio. dominos_india @dominos_india Aug 2 IPO-bound Paytm hopes to break even in 18 months Q1 REPORT CARD participation of entities in factoring business, thusexpandingtheavenuesofworkingcapital credit to even small businesses. It also relaxes certain restrictive provisions in the extant law and empowers the central bank to come out with norms for better oversight of the $6-billion factoring market. ■ Page 2 Jun 21 INDIAWILL miss a target to administer over a half billion coronavirus vaccine doses by the end of the month as Bharat Biotech — maker of its only approved homegrown shot — struggles to boost output, an analysis of government data showed on Monday, reports Reuters. The government said in May it would make 516 million shots available by the end of July. It wants to inoculate all its estimated 944 million adults by December. Factoring Bill gets LS nod, to bolster cash flow to MSMEs THE AMENDMENTS TO the factoring law, whichwereapprovedbytheLokSabhaonMonday,wouldbolstercashflowtomicro,smalland medium businesses (MSMEs),finance ministerNirmalaSitharamansaid,reportsfeBureau in New Delhi. The Factoring Regulation (Amendment) Bill,2020,seeks to broaden the ■ Aakash Educational Services BYJU’S ON MONDAY said it has acquired edtech start-up Great Learning for $600 million in a cash, stock and earnout deal. The move will help the firm, which is valued at$16.5billion,gainafoothold in the professional upskilling and higher education space. The acquisition comes days after Byju’s acquired US-based kids digital reading platform Epicina$500-milliondeal.Earlier this year, the Bengalurubased firm sealed its biggest M&A (merger and acquisition) deal when it acquired brickand-mortar test prep service provider Aakash Educational Services in a $1-billion deal.So far this year, Byju’s has spent over $2 billion on acquisitions, including Indian rival Toppr which is yet to be officially announced bythe company. Byju’s said itwill spend another $400 million to “accelerate” Great Learning’s growth, thereby taking its total investmentcommitmenttothehigher education space to about $1 Detailed report on Page 2 ILLUSTRATION: ROHNIT PHORE India to miss July vaccination target as Bharat Biotech lags Continued on Page 2 May 31 QuickPicks nomic reforms being undertaken; it is also in conflictwith the FRBM law”,he said. Finance minister Nirmala Sitharaman arrives for the Monsoon Session ofParliament Major acquisitions by Byju’s April 2021 FE BUREAU New Delhi, July 26 THE GOVERNMENT ON Monday reduced the basic customs duty (BCD) on import of masur from countries other than the US from 10% to nil and also halved the Agriculture InfrastructureDevelopmentCesson the lentil’s imports to 10% to stem rising prices.If the lentil is imported from the US,the BCD will now be 20% against 30% earlier.TheCentrehaslatelybeen concerned about the supply constraintsandriseintheprices of pulses, a relatively cheaper sourceofproteinforthemasses. Apr 19 Weak retail was offset by better energy biz and Jio; each of the key segments is expected to witness an improvement in coming quarters; ‘Buy’ retained with TP of `2,400 ■ Investor, P7 To help the company gain foothold in higher education space FE BUREAU New Delhi, July 26 May 10 A relatively subdued quarter for Reliance Industries FINANCE MINISTER NIRMALA SitharamansaidonMondaythe government doesn’t intend to go fordirect monetisation of its fiscaldeficitbythecentralbank in light of the unprecedented Covid outbreak.Responding to a question in the Lok Sabha on “whether there is any plan to print currency to tide over the crisis”,theministerrepliedinthe negative. The written reply reflects the convergence between the Centre and the RBI on the critical issue of printing additional currency notes to directlyfund the deficit. In an interviewto FE earlier this month, RBI governor Shaktikanta Das stressed direct deficit monetisation was fraughtwith several risks. It “is out of sync with the eco- Byju’s acquires Great Learning for $600 m Price rise: BCD removed, agri infra cess halved on masur FE BUREAU New Delhi, July 26 Mar 8 Liquid and ultra-short-term debt funds tend to have lower average maturity (AM) than income and gilt funds. Longer the AM, higher is the ‘interest rate sensitivity’ of the fund ■ Personal Finance, P7 reports fe Bureau in New Delhi.TheSCrefusedtointerfere with a part of the SATorder on depositing of 50% of `562 crore byFranklin in the escrowaccount. ■ Page 9 No plan to print extra money: FM Mar 29 Seven key parameters for selecting a debt fund Debt Fu 10.8 « THE SUPREME COURT on Monday restrained Franklin Templeton Asset Management from launching any new debt fund schemes till theissueisdecidedbytheSAT, Special Features Debt Fund Order book 320 bps 287 Will not launch new debt scheme till SAT decides our plea, Franklin tells apex court THE GOVERNMENTWILL sell up to 8% stake in staterun Hudco to raise around `721 crore through an offer for sale at a floor price of `45/share on TuesdayWednesday, reports fe Bureau in New Delhi. Debt Fund Order inflow 21,260 29,335 « Hudco stake sale opens today, floor price at `45/share Ebitda % change « THE UNEMPLOYMENT RATE, as computed by the CMIE, increased to 7.14% for the week ended July 25 from 5.98% in the previous week, reports fe Bureau in New Delhi. The rate in urban areas increased a tad to 8.01% from 7.94% a week before; the rise was sharper in rural areas — from 5.1% to 6.75%. 95.7 « THE APRIL-JUNE QUARTER earnings of the engineering major,LarsenandToubro(L&T) waskindofamixedbag,mainly due to the slowing down of the tenderingactivitybythecentral and state governments due to thesecondwaveofCovid-19.As a result, L&T’s net profit and operating income missed Bloomberg consensus estimates. Revenues, however, came in linewith estimates. The company reported a nearfour-foldyear-on-yearrise in its consolidated net profit to `1,174 crore,which was below analystestimatesof`1,503.43 crore.Healthyexecutionofprojectsledtoa38%y-o-yincrease Unemployment rate inches up to 7.14% on rural spike Q1FY22 (` cr) « FE BUREAU Mumbai, July 26 Q1FY21 Revenue from operations 38 « The company maintains its FY22 revenue guidance « THE GOVERNMENT'S TOTAL tax mop-up in AprilJune grew about 86% to more than `5.57 lakh crore, Parliament was informed on Monday, reports PTI. Out of the total amount, collection of net direct tax stood at `2.46 lakh crore and of indirect tax was at `3.11 lakh crore. BUYING SPREE DEFICIT FINANCING Feb 16 IN THE NEWS Net tax collection up 86% at `5.57L cr in April-June qtr Kolkata
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