OPINION, P6 NATION, P4 ASHOK GULATI Repeal of farm laws will retard the pace of overall reforms BACK PAGE, P14 EDITORIAL FLYING LOW LOCAL GO GLOBAL The Centre has done its bit to spur spending with devolution to states; now, the latter should act Prolonged suspension of int’l flights hurting financial health: Vistara Indian exporters gear up for Black Friday, Cyber Monday sale via Amazon LUCKNOW, MONDAY, NOVEMBER 22, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XIV NO. 190, 14 PAGES, `8.00 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 FPIs pump in near `20,000 crore so far in November FOREIGN PORTFOLIO INVESTORS (FPI) were net buyers in the Indian markets at `19,712 crore so far in November, reports PTI. As per depositories' data, they invested `14,051 crore into equities and `5,661 crore in the debt segment during the November 1-18 period. Q3 Q4 FY21 Q1 Q2 FY22 Q1 Q2 FY22 Q3 Q4 FY21 0.23 23.38 67.98 15.15 75.98 238.89 703.39 -164.51 Q3 Q4 FY21 Q1 Q2 FY22 (% chg y-o-y) (bps, chg y-o-y) -410.28 Q3 Q4 FY21 GVA (Ebitda+Ec) RM to sales (% chg y-o-y) 507.32 Q3 Q4 Q1 Q2 FY21 FY22 959.07 324.89 28.46 (bps, chg y-o-y) 45.55 FOLLOWING A STRONG showing in Q2FY22 in which India Inc’s profits jumped 55% year-on-year, corporate earnings are expected to continue their good run for another 12-18 months. The expectations are based ontherecoveryintheeconomy. Kotak Institutional Equities (KIE) expects net profits for the Nifty 50 set of companies to grow a smart 34% in the current year and a good 15% in FY23, on a normalising base. Theseestimates—up0.5%and 1.4%respectively—areashade higher than at the start of the earningsseason;theyhavebeen made primarily in metals and mining,oil and gas,on the back ofexpectationsglobalpricesare going to remain elevated. These upgrades offset the downgrades in the earnings in the automobile, consumer staplesandotherdiscretionarysec- 54.07 -3.77 Q3 Q4 Q1 Q2 FY21 FY22 PBT FE BUREAU New Delhi, November 21 OPM 5.12 63.48 (% chg y-o-y) 28.47 (% chg y-o-y) Total expenditure 17.13 Analysts caution inflation might crimp demand; rebound in revenue growth could moderate Net sales 885.11 AS MANYAS 8.43 crore unorganised sector workers have registered on the e-Shram portal till November 20 and enrolments are rising steadily, the labour ministry said on Sunday, reports PTI. "As per the recent data, the number of such registrations has been rising steadily over the 12 weeks," it said. Corporate India profit growth to stay strong 2,006.99 e-Shram portal: 8.43 cr registered till November 20 ● COMING UP 0.01 THE CENTRE WILL make every possible effort so that Manipur gets full advantage of free trade agreement (FTA) as the state is a gateway to Myanmar and Asean countries, Union minister Piyush Goyal has said, reports PTI. The minister stated this on Saturday during an interaction with industry bodies of Manipur. EARNINGS OUTLOOK 43.65 IN THE NEWS Will make effort for full FTA benefit to Manipur: Goyal Q1 Q2 FY22 Sample of 2,495 companies (excluding banks & financials) Source: Capitaline tors where revenues have been hitbyinputshortagesandmargins have been under pressure. However,analystscautioninflation might crimp in demand; thereboundinrevenuegrowth, theyworry,could moderate. Already strategists at Edelweiss point out that from being broad-based in FY21, profit growthhasnarrowedinFY22so far, having been driven mainly byearningsofcommodityplayers and market leaders. Worryingly, profits have been weaker in domestic consuming-facingsectors.Someof thiscouldbetheresultofweaker demandinruralIndiawherethe wage growth for the non-agri sectorhasbeen muted.Also,the pent-up demand, post the second-wave of the pandemic,has found an outlet in consumer services, rather than in the goods segment. Continued on Page 2 EMISSION NORMS ● ROBUST REVENUE Tax collections to top Maruti to stay away Budget estimate: Bajaj from diesel, make JOYEETA DEY New Delhi, November 21 WITH THE NET direct tax collection till October closing in on `6 lakh crore and average monthly GST mop-up likely around `1.15 lakh crore this fiscal, the government’s tax collection kitty will surpass budget estimates this financial year, revenue secretary Tarun Bajaj said. In an interview with PTI, Bajaj said the relief in excise duty on petrol and diesel and customs duty on edible oil will cost the exchequer about `80,000 crore this financial year, and the revenue depart- Though we have given a lot of relief in indirect taxes...but i think we should exceed the budgeted estimates on both direct and indirect taxes. — TARUN BAJAJ, REVENUE SECRETARY ment will start calculating the tax mop-up position vis-a-vis budget estimates forthis fiscal after the December advance tax number. Continued on Page 2 FE SPECIALS ■ BRANDWAGON, P10 Travel rebounds greener petrol cars PRESS TRUST OF INDIA New Delhi, November 21 MARUTI SUZUKI INDIA has ruled out getting back into the dieselsegmentas it believes sale of such vehicles would further comedownwiththeonsetofthe nextphaseofemissionnormsin 2023,a senior company official said. The country’s largest carmakerbelievesthenextphaseof emission norms would jack up the cost of diesel vehicles, thus further impacting their sales in themarketwhichforthelastfew years has seen a gradual shift towards petrol cars. “Wearenotgoingtobeinthe diesel space.We had indicated earlierthatwewillstudyitandif there is customer demand we canmakeacomeback.Butgoing forward,we will not be participating in the space,” chief tech- ■ Automaker believes diesel vehicle sales to fall further with onset of next phase of emission norms in 2023 ■ Sees next phase of emission norms to jack up diesel vehicles cost ■ eFE, P8 Decoding disruption It is imperative for entrepreneurs to adapt and act fast, says Marico chairman Harsh Mariwala ■ In 2013-14, diesel cars used to account for 60% of total PV sales ■ MSI discontinued diesel models with onset of stricter BS-VI norms nical officer CV Raman said.He citedtheupcomingstricteremissionnormsasaprimaryreason to avoid diesel-powered cars. Continued on Page 2 THE GOVERNMENT HAS allowed Serum Institute of India to export 50 lakh doses of its Covid-19 vaccine CovishieldunderCOVAXtoNepal, Bangladesh, Tajikistan and Mozambique,officialsources said, reports PTI. The Punebasedfirmhadurgedthegovernmenttoaddresstherising stocksituation,informingthatithasamanufacturedstock of 24,89,15,000 doses and risingbythe day. QuickPicks THE DGFT will deactivate all importer-exporter codes (IECs) that have not been updated after January 1, 2014, with effect from December 6, 2021, a move which would help in knowing the actual number of real traders, reports PTI. IEC is a key business identification number that is mandatory for exports or imports. On August 8, this year, the DGFT had directed all IEC holders to ensure that details in their IEC are updated electronically every year during April-June. PAGE 2 estimates put share ofdiesel vehicles at less than 17% of overall PVsales Excess stock: Serum gets nod to export 50 lakh Covishield doses under COVAX A look at how the tourism sector is getting back on its feet after a long lull IECs not updated after 2014 will be deactivated: DGFT ■ Industry Uniform 12% GST on MMF, fabrics, yarn from Jan 1 THE GOVERNMENT has notified a uniform 12% GST on manmade fibre (MMF), yarn, fabrics and apparel, thereby addressing the inverted tax structure in the MMF textile value chain, reports PTI. Currently, the rate on MMF, MMF yarn and MMF fabrics is 18%, 12% and 5%, respectively. The taxation of inputs at higher rates than finished products created build up of credits and cascading costs. It further led to accumulation of taxes at various stages of the MMF value chain and blockage of working capital. PAGE 2 ONGC union upset over govt’s Mumbai High decision THE GOVERNMENT'S proposal to give away ONGC's biggest oil and gas fields to foreign companies has met with strong resistance from the officers union of the company, reports PTI. In a petition to oil minister HS Puri, the Association of Scientific & Technical Offices of ONGC has said that it should empower and give the company a level-playing field rather than giving away its prime assets to the private sector on a platter. The union represents 17,000 ONGC officers. Cabinet may approve Bills to repeal farm laws on Wednesday PRESS TRUST OF INDIA New Delhi, November 21 THE UNION CABINET is likely to take up for approval on Wednesday the Bills for withdrawal of the three farm laws, sourcesinthegovernmentsaid. These Bills shall then be introduced in the forthcoming session of Parliament.Prime Minister Narendra Modi had on Fridayannounced that the government’s intention to withdraw the laws in the interest of thenation.Thewintersessionof Parliament would commence from November29. STRICT OVERSIGHT No legal tender status for private cryptos but innovation possible BANIKINKAR PATTANAYAK New Delhi, November 21 THE GOVERNMENT HAS no intentions of granting private cryptocurrencies, such as bitcoins,thestatusoflegaltenders, becauseitiswaryofthedamagingimpactofanysuchmoveon financial sector stability. However, it will likely allow some space for innovation in the cryptoecosystemunderastrict oversight mechanism. While it is contemplating amendments to the Incometax Act in the next Budget to make taxation provisions for gains and income from crypto TO BE OR NOTTO BE Pvt cryptocurrency won’t be treated as legal tender ■ No blanket ban across crypto spectrum but itwill be tightly regulated Taxation ofcrypto gains to have prospective effect ■ Crypto channel not to be allowed for money laundering transactionsmore explicit,any such change will have “only prospective effect”, an official source told FE. A new crypto Bill, expected to be introduced in the winter ■ New Bill to offer basic architecture, leave govt with enough space to respond to evolving situation ■ Over- promising, non- transparent ads to be curbed session of Parliament starting November 29, is unlikely to impose a blanket ban on the entire crypto spectrum. Continued on Page 2
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