ECONOMY, P2 ECONOMY, P2 COAL SHORTAGE Railways ramps up rakes to augment supply to power plants INTERNATIONAL, P8 EDIBLE OILS TRADE TALK TO BE NOTED Hopeful of some states imposing stock limits next week: Food secretary Wherever India faces unfair treatment, we will reciprocate: Goyal On track for taper, high inflation could last into next year: Fed's Powell NEW DELHI, SATURDAY, OCTOBER 23, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 202, 24 PAGES, `10.00 (PATNA `10.00, 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: 60,821.62 ▼ 101.88 NIFTY: 18,114.90 ▼ 63.20 NIKKEI 225: 28,804.85 ▲ 96.27 HANG SENG: 26,126.93 ▲ 109.40 `/$: 74.90 ▼ 0.03 `/€: 87.19 ▼ 0.03 BRENT: $85.32 ▲ $0.71 GOLD: `47,604 ▲ `224 818 Q1 FY22 143.6 Q2FY21 Q2FY22 (` in crore) Ebitda 1,11,236 50.7 18,945 1,67,611 26,020 37.3 quarter was up 4.35% at `19,777 crore, while Ebitda was up 4.52% at `9,294 crore. The company’s Ebitda margin expanded to 47% compared to 46.9% during the preceding quarter. (MB) 15,600 Q1 FY22 Q1 Q2 FY22 FY22 Q2 FY22 Data usage per customer 17,600 Q2 FY22 y-o-y (%) Net profit 9,567 43 Operating margin (%) 13,680 17 15.5 -150.7 bps Average revenue per user (Arpu) for the quarter at `143.6 was higher as compared to the preceding quarter when it stood at `138.4. Continued on Page 2 Reliance Retail growth sails past pre-pandemic times RELIANCE RETAIL’S CONSOLIDATED gross revenuegrewby10.5%y-o-yto`45,426crore, reports fe Bureau in New Delhi. Revenues, excluding petroleum retail business, grew at 16% y-o-y.The company saw robust growth across all consumption baskets led by strong revival in consumer sentiments amid festivities,relaxationsinCovid-relatedcurbsandvac- RIL beats estimates, net profit rises 43% cinations.Reliance Retail is seeing a revival in its fashion and lifestyle segment, with sales closingabovepre-Covidlevels.Consumerelectronicsandgrocerymaintainedstronggrowth momentum.Thesegmentpostedanoperating incomeof`2,913crore,up45.2%y-o-y,driven byfavourablerevenuemix,continuedfocuson cost management and investment income. New India knows how to set difficult targets and achieve them, says Modi PRESS TRUST OF INDIA New Delhi, October 22 RELIANCE INDUSTRIES (RIL) reported a broad-based growth across its legacy and newage businesses during the July-September quarter beating estimates. The company’s net sales grew by 50.7% yearon-year to `167,611 crore, while net profit rose 43% to `13,680 crore. Sequentially, too, RIL’s reported a 20% rise in revenues and 11.5% growth in net profit, indicating a clear improvement across businesses. The company’s performancewasdrivenbysustained growth in Jio and a sharp recovery in retail and the oilto-chemicals business. Reliance Retail revenues grew 10.5% to `45,450 crore,while the company’s mainstay O2C business is also back on track. PRIME MINISTER NARENDRA ModisaidonFridaythatIndia’s success in administering over 100 crore Covid-19 vaccine dosesinninemonthshasgiven a befitting reply to those who questioned its capabilities,and asserted that this highlights a “newIndia”which can set difficult targets and achieve them. Inhisaddresstothenationa dayafterIndiacrossedthelandmark, Modi dwelt at length about its significance and also projectedapictureofoptimism and hope about India’s growth after a spell of pandemicinducedsetback,sayingexperts andworldagenciesareverypositiveaboutits.Indiancompanies and start-ups are receiving recordinvestmentandgenerating employment,he said. Often attacked by opposition parties and critics for the handlingofthepandemic,Modi got back at them and asserted that the 100-crore jabs milestoneisanewchapterinhistory and reflects India’s capabilities. Detailed report on Page 4 Continued on Page 2 FE BUREAU Mumbai, October 22 » RIL Net sales 840 Q1 Q2 FY22 FY22 Q2 FY22 20,300,000 Q1 FY22 (m MB) (min) » 138.4 Total data traffic 23,000,000 (m min) » RELIANCE JIO ON Friday reported a mixed set of numbers for the July-September quarter, with revenue, profit and Ebidta largely in line with estimates,but slipping sharply on the net subscriber front where it saw a decline of 11.1 million users compared to the preceding quarter. Average revenue per user was much ahead of estimate. The net profit increased 2.11% sequentiallyto `3,728 crore. Jio’s revenue during the (in `) Voice usage per customer GLAM GOAL Nykaa IPO gets nod, eyes $7-bn valuation Bids open on Oct 28, price band for the `5,200-crore share sale fixed at `1,085-1,125 a share FE BUREAU Bengaluru, October 22 FSN E-COMMERCE, THE parentfirmofonlinecosmeticsand personalcareretailer,Nykaahas receivedapprovalfromtheSecurities and Exchange Board of India(Sebi)toraise`5,200-crore through an initialshare sale. The firm’s red herring prospectus published with Sebi onFridaysaidthatitwouldopen for bids from October 28 to November1.Thepriceband has been fixed at `1,085-1,125 a share.FSN E-Commerce is promoted by Falguni Nayar and backed by PE firm TPG. The company is seeking a valuation of$7billion(`52,315.55crore). Nykaa had filed a draft prospectus for its IPO in August this year. The upcoming IPO includes a fresh issue ofsharesworth`630croreand an offer for sale (OFS) which will see existing investors offload up to 4.197 crore equityshares,according to the final prospectus. Around 16 existing investors such as TPG MEGA DEBUT HC adjourns Zee case to Oct 26, to pronounce order same day THE BOMBAY High Court is slated to pronounce its order in Zee’s legal tangle with its largest institutional investor, Invesco Developing Markets Fund, on Tuesday, reports fe Bureau in Mumbai. Separately, the NCLT Mumbai bench has adjourned the case to Wednesday. Appearing before HC, Zee’s counsel Gopal Subramanium reiterated the company’s inability to convene an extraordinary general meeting as requisitioned by Invesco, terming it “illegal”. PAGE 4 RBI’s Rao: Must address systemic risk arising out of growing NBFCs AS THE non-banking financial company (NBFC) sector increases in size and complexity, there is regulation needs to address the systemic risks arising out of it, Reserve Bank of India’s deputy governor M Rajeshwar Rao said on Friday, reports fe Bureau in Mumbai. Referring to the central bank’s proposal to apply scale-based regulation to NBFCs, Rao said that NBFCs must keep the customer at the centre of all innovation and address concerns around governance. PAGE 6 Paytm is looking at a valuation of `1.47-1.78 lakh cr of Business at New York University, has valued the unlisted shares of the digital financial services firm at `2,950 per share. Lower provisions: Yes Bank Q2 net up 74% YES BANK ON Friday reporteda74%year-on-year increase in its net profit to `225 crore for the Septemberquarter,helpedbyalower provisioning burden and higher non-interest income, reports fe Bureau in Mumbai. The bank’s net interest `630 crore and an offer for sale which will see existing investors offload up to 4.197 crore equity shares Existing employees who hold stock options at Nykaa also have an option to offload a total of 250,000 equity shares in the upcoming IPO ■ Promoters, including founder and CEO Falguni Nayar, currently own more than 50% share in the company Growth IV SF Pte, Lighthouse India Fund,YogeshAgencies & Investments,JM Financial and others are expected to offload their shares in the IPO. Existing employees who hold stock options at Nykaa also have an option to offload a total of 250,000 equity shares in the upcoming IPO. Continued on Page 2 income fell 23% y-o-y to `1,512 crore while other income rose 30% to `778 crore. The net interest margin, a key measure of profitability,rose 10 basis points sequentially to 2.2%. Provisions were down 65% at `377 crore. ■ Page 6 FE BUREAU Mumbai, October 22 NOW SHOWING Cinema halls, drama theatres and auditoriums reopened in Maharashtra after several months on Friday with 50% seating capacity and Covid-19 protocols EXPRESS PHOTO: DEEPAK JOSHI The week that was FE BUREAU Markets fall for fourth day on weak risk appetite Market benchmarks nursed losses for the fourth consecutive session on Friday, weighed by IT, FMCG and metal stocks, as risk appetite remained subdued amid muted corporate earnings and foreign fund outflows. On a weekly basis, the Sensex lost 484.33 points or 0.79%, while the Nifty fell 223.65 points or 1.21% Sensex Nifty50 62,000 61,500 61,000 60,500 60,000 18 19 20 21 October 18,600 18,450 18,300 18,150 22 18,000 18 18,178.10 A GROUP of state finance ministers (GoM) on IT issues within the GST system will likely suggest a mechanism to weed out fake registrants and plug input tax credit (ITC) leakages, reports Prasanta Sahu in New Delhi. The GoM, headed by Maharashtra deputy chief minister Ajit Pawar, had its first meeting in a virtual mode on Thursday. The members of the GoM agreed to have suitable checks and balances to tackle menace of fake invoicing so as to regulate ITC outflows. PAGE 2 ■ Plan to shelve the pre-IPO raise is not related to any valuation differences, sources say The company is planning to skip the preIPO share sale rounds to fast-track listing 19 20 21 October 18,114.90 GST revamp: GoM for steps to eliminate fake ITC claims Digital financial services firm expects to hit the bourses by the end ofthis month 18,266.60 QuickPicks ` 18,418.75 Margins under pressure q-q due to higher costs and lower volumes; demand outlook for H2FY22’s bright; target price up to `7,400 from `6,950; ‘Reduce’ rating maintained ■ Investor, P9 DIGITAL FINANCIAL SERVICESfirmPaytmhasreceived market regulator Sebi’s approval forits `16,600-crore initial public offering (IPO), a source involved in the process said on Friday. The companyexpects to hit the bourses by the end of this month and is planning to skip the pre-IPO share sale rounds to fast-track listing. “Sebihasgivenapprovalfor Paytm IPO,”the source said on condition of anonymity. The company’s plan of shelving the pre-IPO raise is not related to any valuation differences,the source added. Paytm is looking at avaluation of `1.47-1.78 lakh crore. US-based valuation expert Aswath Damodaran, who is a professor specialising in finance at the Stern School 18,477.05 UltraTech’s Q2 earnings were higher than estimated PRESS TRUST OF INDIA New Delhi, October 22 60,821.62 Mercedes-Benz India has started the Retail of the Future, under which the company will own the entire stock of cars and directly sell to endcustomers ■ Motobahn, P9 issue of shares worth Continued monetary support necessary, says Das Paytm’s `16,600-cr IPO gets Sebi nod 60,923.50 A new automotive sales channel has taken shape ■ The IPO includes a fresh ● MPC MINUTES 61,716.05 Special Features 61,259.96 SEBI ON FRIDAY said SREI Mutual Fund now ceases to exist as a mutual fund, reports PTI. SREI MFAsset Management had informed Sebi that they want to surrender the registration granted to SREI MF Infrastructure Debt Fund (IDF). FE BUREAU New Delhi, October 22 Total voice traffic 61,765.59 SREI Mutual Fund ceases to exist as an MF: Sebi Slips badly on subscriber front with a decline of 11 million users ARPU » THE CENTRE ON Friday said it has notified guidelines for the recently announced PLI scheme for specialty steel, reports PTI. On July 22, the `6,322-crore PLI scheme was approved to boost specialty steel output in India, attract additional investment of about `40,000 crore and generate fresh 5.25 lakh job opportunities. Reliance Jio’s net profit up 2%, sharp jump in Arpu at `143 1,090,000 Govt notifies PLI scheme rules for specialty steel ● 100-CR JABS 1,060,000 DOMESTIC NATURAL GAS output rose 21% to 16,890.9 million standard cubic metre in H1FY22 on a y-o-y basis, reports fe Bureau in New Delhi. The jump was mainly due to higher production from RIL and from BP’s ultra-deep-water field in the KG-D6 Block. Q2 REPORT CARD » IN THE NEWS Domestic natural gas output rises 21% in April-Sept 22 WITHTHEOUTLOOKoninflation improving and projections for the same easing, there is a need for continued monetary support to a still-recovering economy,ReserveBankofIndia (RBI)governorShaktikantaDas wrote in the minutes to the October meeting of the Monetary Policy Committee. However,otherRBIexecutivesonthe rate-setting panel flagged risks emanatingfromhighfuelprices andstressedtheneedtoremain focusedon inflation-targeting. Das wrote that the outlook on inflation had improved and the inflation projection for FY22 had been revised downwardsby40basispoints(bps)to 5.3%.The medium-term focus of the MPC has successfully moderatedundueexpectations of a possible reversal of the monetary policy stance and is helping anchorexpectations in the right direction,while navigating the economic recovery from the crisis.“At this critical juncture,ouractions have to be gradual, calibrated,well-timed and well-telegraphed to avoid anyundue surprises,”he said. Continued on Page 2 DESPITE BLACKLIST Huawei, SMIC suppliers received billions worth of licences for US goods KAREN FREIFELD & ALEXANDRAALPER Washington, October 22 SUPPLIERSTO CHINESE telecom giant Huawei and China’s top chipmaker SMIC got billions of dollars worth of licences from November through April to sell them goods and technology despite theirbeingonaUStradeblacklist, documents released by Congressshowed onThursday. According to the documents, first obtained by Reuters, 113 export licences worth $61 billion were approved for suppliers to ship products to Huawei while another188 licencesvalued at nearly $42 billion were greenlighted for Semiconductor Manufacturing International Corp (SMIC). The data also showed that more than 9 out of 10 licence applications were granted to SMIC suppliers while 69% of requeststoshiptoHuaweiwere approvedoverthesameperiod. The US House of Represen- 113 export licences worth $61 billion approved for Huawei suppliers ■ More than Another 188 licences worth near $42 billion greenlighted for SMIC 9 out of 10 licence applications granted to SMIC suppliers 69% ofrequests to ship to Huaweiwere approved over the same period Huaweiwas placed on a trade blacklist in May 2019, SMIC addition in December 2020 tativesForeignAffairscommittee on Thursdayvoted to grant a request by its top Republican member Michael McCaul to release the licensing data, which it received from the commercedepartmentinMay. The numbers enraged China hawks in Washington, who have made a concerted effort to deprive Chinese companies of access to advanced US technology. Republican senator Marco Rubio told Reuters he thinks President Joe Biden needs to New Delhi explain why the companies have continued to receive “waivers”. “It is just another example of President Biden not taking the economic and security threat posed by the Chinese Communist Party seriously,”he said. McCaul said in a statement that“It’s clearlyin ournational interest to increase transparencyand public scrutinyon how our nation transfers its technology to an adversary.” Continued on Page 2
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