ECONOMY, P3&2 COMPANIES, P4 DECLINE AFTER SIX YEARS Kharif crop sowing down, 12.3% fall in paddy sowing INTERNATIONAL, P8 INTEREST-FREE LOANS GROWTH ROADMAP MOTIVE NOT YET KNOWN Ten states get `31,624 cr special Central capex support till July Meesho looks to onboard 1.2m sellers by the end of FY23 Salman Rushdie suffers stab wound on stage at New York event MUMBAI, SATURDAY, AUGUST 13, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXII NO. 191, 40 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: 59,462.78 ▲ 130.18 NIFTY: 17,698.15 ▲ 39.18 NIKKEI 225: 28,546.98 ▲ 727.65 HANG SENG: 20,175.62 ▲ 93.19 `/$: 79.65 ▼ 0.01 `/€: 82.03▲ 0.27 BRENT: $98.04 ▼ $1.56 GOLD: `52,190 ▼ `12 ANOTHER RATE HIKE BY RBI IN OCTOBER REVIEW LIKELY IN JUSTTWO DAYS, India will mark its 75th year of Independence, a momentous milestone in the history of any nation. Over the next two days, August 14 and 15, Financial Express celebrates this incredible journey. FE on Sunday will feature the poets of preindependent India who redefined the concept of nationalism; the evolution of entertainment; the historic buildings that have stood the test of time; voices from young India; and 75 events that shaped the country. Monday’s edition will chronicle some of the iconic moments of India’s economic and corporate history & brands that have endured, and will bring you perspectives from 10 of India’s famous citizens – from India Inc as well as policymakers – who have all led from the front in laying the roadmap for the India of tomorrow. With a fall in global commodity prices, August inflation to be further lower than July’s 6.71% BANIKINKAR PATTANAYAK New Delhi, August 12 RETAIL INFLATION DROPPED to a five-month low of 6.71% in July, offering respite to fiscal and monetary authorities as they strive hard to break the back of inflation. A fall in global commodity prices and the resultant taming of imported inflation, CPI inflation (% change, y-o-y) 8 7 6 IIP Apr ‘22 (% change, y-o-y) 25 7.79 6.71 20 Feb ‘22 5.59 6.07 15 5 4 3 12.3 LOOKING BACK, LOOKING AHEAD CPI inflation at five-month ‘Startup IPOs as financing low; IIP moderates to 12.3% rounds will end soon’ 13.8 India@7 5 10 July 2021 0 July 2022 Source: MoSPI contributed to the easing of price pressures. Of course, even with the moderation, inflation was still above the central bank's medium-term target of 2-6% fora seventh straight month. Meanwhile, industrial output growth moderated to 12.3% in June from a year ago, compared with a 12month high of 19.6% in May, 1 Jun ‘21 Nov ‘21 ■ PAGE 7 Trade deficit nearly triples to $30 bn in July Jun ‘22 as a favourable base effect started to wane, according to the official data released on Friday. Continued on Page 2 ● FREEDOM POST TRADE DEFICIT SCALED a fresh peak of $30 billion in July, as a surge in imports, driven by elevated global commodity prices, continued unabated, while export growth lost pace, albeit on an unfavourable base, reports fe Bureau in New Delhi. ■ PAGE 2 PV wholesales improving, 2Ws in recovery mode A RISE IN production due to an improvement in semiconductor supply led the PV segment continue its growth in July, reports fe Bureau in New Delhi. The two-wheeler segment also witnessed better volumes during the month. ■ PAGE 4 LIFE INSURANCE CORPORATION (LIC) on Friday reported a multi-fold increase in net profitsto`682.88 croreforthe quarterending June compared to a profit of `2.94 crore in Q1 FY22. It may be recalled that business activity in the countryhadcometoavirtualstandstill in the June 2021 quarter during the second wave of the Covid-19 pandemic. Seensequentially,LIC’sperformance was less impressive as the insurerhad posted profits of `2,371.55 crore in the three months to March. The total income in the Q4 FY22 Net premium income 143,746 First year premium 14,614 Renewal premium 71,158 Net profit 2,372 Solvency ratio 1.85 13th month persistency ratio 69.24 Q1 FY23 98,352 7,429 50,258 683 1.88 75.75 Figures are in ` crore, except ratios and percentages; *bps quarter stood at `1.68 trillion as against `1.54 trillion in the year-ago period, LIC said. The total income stood at `2.11 trillion in the March quarter. % chg q-o-q 31.60 49.16 29.37 71.20 3* 651* Source: BSE The net premium income duringQ1FY23at`98,351.76 crorewas about 20% higheryo-y. On a sequential basis the net premium was lower by about 32%. It took Infosys 23 years to reach the billion-dollar revenue mark in FY04. Today startups are growing much faster? I am very happy that today’s startups are growing faster than we did. That is good for the country, its consumers, and our entrepreneurs. Congratulations to them on reaching a revenueof$1billion muchfasterthanwe did. There are several reasons. The Indian software services industry was the first to introduce the concept of remote large software development in the world for the US, European, and Japanese corporations. Developing this market for the most advanced chasestoonlinepurchases.The marketalreadyexistedandwas not developed by the startups. They just converted revenue from one channel of access to another. A third important point is that the Indian software services companies were veryprofitable evenwhen they reachedarevenueof$1billion. For example, Infosys had a net income of $270 million on a revenue of $1.06 billion. What would you have done differently if you had started Infosys in 2022? Our vision was to become the most respected companyin India. We put respect higher than revenues and profits. Of course, we knew being a respectedcompanywillresultin betterrepeatbusinessresulting in faster revenue growth, attracting good talent which wouldimprovequalityandproductivity, and attracting high quality long-term investors. These good quality employees brought unparalleled business value to our customers from theirinnovationthatresultedin better prices and higher margins.Wewereinseveralareasnot just in India but the world.We were the first company to provide financial statements accordingtheGAAPs(generally accepted accounting principles) of eight countries. We werethefirst-largescalesoftware services companyin the worldtogetcertifiedatLevel 5 of the Capability Maturity Model. Continued on Page 9 Saket Burman to be vice-chairman LIC Q1 net up multifold at `683cr REPORT CARD and most competitive markets took some time. It is very instructivetonotethatthesecondbilliondollarofrevenuefor Infosys came just in 2 years while the first one took 23 years. Also, most of the unicorns and startups you are commenting upon capitalised mainly on converting in-person pur- Amit Burman paves way for cousin Mohit in Dabur rejig Industrialists Anand Mahindra (left) and Ratan Tata being presented the Tricolour by Mumbai Postmaster General Swati Pandey under the ‘Har Ghar Tiranga’ campaign, on Friday FE BUREAU Kolkata, August 12 N R Narayana Murthy, who cofounded Infosys in 1981,was the first to begin the startup culture in the country. The company went on to become one of world’s most admired technology firms.Today, India is brimming with a vibrant startup ecosystem that’s growing much faster than Infosys did in its early days. But the market dynamics are entirely different. Murthy talks about the growth rate of startups, the different market conditions, and relevance of IT services, in an interview with Ayushman Baruah.Excerpts: Q&A 5 4.35 Sep ‘21 IN THE NEWS Two more proxy firms want Sharma to step down as MD AFTER IIAS, TWO more proxy advisory firms have advised shareholders to vote against the resolutions of One97 Communications, the parent company Paytm, including reappointment of Vijay Shekhar Sharma as managing director, reports Rajesh Kurup in Mumbai. ● N R NARAYANA MURTHY, CO-FOUNDER, INFOSYS The first-year premium for the reporting quarter came in at `7,429 crore as against `5,088 crore in the year-ago period, the insurer said in an exchange filing. “The trajectory seems upwards for sure, and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022,"LIC chairperson MR Kumar said. "The product mix is heavily tilted towards participating businesess.Changing this is a big task for us and we have already started," Kumar said. Continued on Page 2 SHUBHRATANDON New Delhi, August 12 IN KEEPING WITH the family tradition,which has ensured a smooth transition in roles amongst family members for the last five generations, the non-executivechairman'smantle at Dabur India on Friday passed on to Mohit Burman fromhiscousinAmit.Mohitwas hithertothenon-executivevicechairmanofthecompany. The new non-executive vice chairmanofthecompanywillbe Saket Burman. The appointments are for a period of five years.TheDaburfamilyhasbasically two wings and the practice is that if a member of one wing holds the chairman's position, thevice-chairman'sslotwillgoto New Dabur chairman amemberoftheotherwing.The vice-chairmanlatertakesoveras chairman. Anand, Mohit and Gauravarepartofonewingofthe family,while the other consists of,Amit,Saket,andChetan. Till now,Amitwas the chairman and Mohit the vice-chairman. Now, Mohit takes over as chairman and Saket from the other wing takes over as vice chairman. In addition,to the chairman and vice-chairman, two other familymembersaredirectorson the board of the company,so at anygiventimefourfamilymembers serve on the board.Accordingly,Amitwillnowbeadirector. The Burman family members are present in non-executive capacityontheboardanddonot participate in the day-to-day functioningofthecompany. TheBurmanfamilyisamong thepioneersinformingafamily councilwhichdecidesonallsuch matters and has never seen any friction. The Brijmohan Lall MunjalfamilyoftheHeroGroup alsohasafamilycouncilandhas managed its functioning withoutanyfamilysquabbles. Dabur India posted a flat year-on-year growth in its consolidatednetprofitto`440crore for the first quarter ended June 30,2022. Continued on Page 2 TRAVEL COMPANIES, HOTELS DOING BRISK BUSINESS Quick getaways is the flavour of weekend freedom KUNAL DOLEY, VAISHALI DAR & VARUN SINGH New Delhi, August 12 SHORT-HAUL TRIPS WITH friends and relatives seems to be the agenda of many this long weekend, as travel sees a surge. Road trips, domestic destinations and nearby foreign locales arewhat travellers are opting for to take a break from work. As Sanjay Kumar, chief strategy and revenue office, IndiGo, told FE, "People are heading to destinations like Goa, Cochin, Trivandrum, SrinagarandAgratomeetfamilies and relatives due to the festivities and long weekend. Fares have been nominal despite good demand as people chose to book in advance." A Vistara spokesperson said they have seen an uptick in bookings across their entire network. Travel companies have dealt with double the normal demand and most hotels in locations close to metros are fully booked.“Our consumer data reveals over 66% respondents prefer domestic locales, while 34%were open to shorthaul international options,” said RajeevKale,president and country head, holidays, MICE (meetings, incentives, conferencing,and exhibitions),visa Thomas Cook (India). SOTC Travel,too,has seen 2xsurge in demand from customers. “Despite increased airfares,we WELCOME BREAK ■ Road trips, domestic destinations and nearby foreign locales are what travellers are opting for to take a break from work. ■ Most hotels in locations close to metros are fully booked ■ Fares have been nominal despite good demand as people chose to book in advance have seen a significant uptick indemandfortravel,withfamilies and groups of friends booking holidays,” said Daniel D’Souza, president and countryhead,holidays,SOTCTravel. We have 40-50% more bookings on flights & hotels. People are opting to utilise this long weekend for relaxing & having fun with their loved ones. —RIKANT PITTIE CO-FOUNDER, EASEMYTRIP Top destinations for SOTC's customers are Kashmir, Shimla, Ladakh, Himachal Pradesh and Andaman. “Our consumer data indicates high demand for outdoor and adventure travel with biking trips, hiking, camping and domestic cruises,” added D'Souza. Online travel company Yatra observed an uptick in demand and queries for premium accommodation options, mostly 4- and 5-star properties, said Aditya Gupta, senior vice-president, hotels and holidays,Yatra.com. Similarly, online travel company EaseMyTrip observed high booking trends. “We have 40-50% more bookings on flights and hotels for the August 11-15 weekend. People are opting to utilise this long weekend for relaxing and having fun with their loved ones. The top five locations where EaseMyTrip is experiencing strong bookings include Goa, Rajasthan, Himachal Pradesh, Coorg and Kerala, all thanks to the monsoon,” said Rikant Pittie, co- founder of EaseMyTrip. Meanwhile, hotel occupancy is also at a high this weekend.All the 313 rooms at the Westin Gurgaon are sold out, said Rahul Puri, general manager for The Westin Gurgaon and The Westin Sohna Resort and Spa, which is also fully booked for the weekend. Kush Kapoor, CEO of Roseate Hotels & Resorts, said for the longweekend,theyhave registered20-30%growthin bookings for The Roseate Ganges property. Taj Hotel & Convention Centre, Agra's general manager Rahul Joshi also shared that bookings were high for the next few days. Continued on Page 2
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