BACK PAGE, P15 COMPANIES, P4 MARKETS, P10 CAM TIES UP WITH BARBRI PRICES STARTING `7.49 LAKH COMPLY WITH REGULATORY NORMS Big Law gearing up to take on global competition With XUV 3XO, Mahindra set to undercut rivals Banks investing large sums to upgrade their IT systems MUMBAI, TUESDAY, APRIL 30, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXIV NO. 102, 22 PAGES, `12.00 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: 74,671.28 ▲ 941.12 NIFTY: 22,643.40 ▲ 223.45 NIKKEI 225: 37,934.76 ▲ 306.28 HANG SENG: 17,746.91 ▲ 95.76 `/$: 83.47 ▼ 0.12 `/€: 89.44 ▲ 0.05 BRENT: $88.33 ▼ $1.17 GOLD: `72,228 ▼ `73 IN THE NEWS FACTORY OUTPUT GROWTH MAY SLOW TO 4.7% IN FY25 THE GROWTH IN factory output, as measured by the IIP, is likely to slow down to around 4.7% in FY25 from an estimated 6.1% in FY24, in the backdrop of the statistical effect of a high base and fading away of pent-up demand, say economists, reports Priyansh Verma. ■ PAGE 2 ULTRATECH BEATS ESTIMATES, PROFIT RISES 36% IN Q4 ULTRATECH CEMENT POSTED a 35.5% rise in consolidated net profit to `2,258 crore for March quarter, riding on volume growth and lower input costs. The company’s net profit topped the estimates of `2,128.4 crore, reports Rajesh Kurup. ■ PAGE 4 RBI ASKS BANKS TO REVIEWTHEIR LENDING PRACTICES THE RBI ON Monday said it has noted instances of lenders resorting to certain unfair practices in charging of interest rates on loans, and called on all regulated entities to review their lending practices, reports Piyush Shukla. ■ PAGE 12 RED SEA CRISIS: EXPORTERS SEEK MORE RELIEF DOMESTIC EXPORTERS HAVE pitched for an increase in interest subvention on loans under the interest equalisation scheme as their costs have gone up post the Red Sea crisis and they continue to face tepid demand in key markets, reports fe Bureau. ■ PAGE 2 UTTARAKHAND BODY SUSPENDS LICENCES OF PATANJALI ITEMS UTTARAKHAND GOVERNMENT REGULATOR has suspended the manufacturing licences of 14 products made by Baba Ramdev's Patanjali Ayurved for repeatedly publishing misleading advertisements about their efficacy. the licencing body has filed an affidavit in the Supreme Court, reports Reuters. ■ PAGE 5 FE S P E C I A L S ICICI expects range-bound margin Operating expenses may decrease on staff hiring reduction ■ INVESTOR, P9 What the Maldives’ poll results mean for India Strained diplomatic ties are best resolved with dialogue; India and the Maldives appear to be on this path ■ EXPLAINER, P9 BANKS’ EARNINGS PERFORMANCE FUELS OPTIMISM Financial stocks power indices to fresh highs FE BUREAU & AGENCIES Mumbai, April 29 TAKING STOCK DOMESTICEQUITIESRALLIEDonMonday as strong earnings performance by banks and the fall in US bond yields and crude oil pricesdroveoptimismamonginvestors.The Bankex and broader market indices on the BSE hit theirlifetime high levels. Top lenders ICICI INSIDE Bank, SBI and Axis Bankhitrecordhighs, ICICI m-cap and were among the tops `8 trn, now in top 5 topfivegainersonthe Nifty 50. Financial ■ PAGE 10 stocks rose 2.14%, withICICIBankclimbing 4.72% in its best session in over two years.The bank’s March quarterprofit beat analysts’estimates on strong loan growth. Ontheflipside,HCLTechtankednearly 6% after it reported a flat growth in net profit in Q4 at `3,986 crore. ITC, Wipro and Bajaj Finservwere the other laggards. “The earnings in financials have been better-than-expected so far. This has allayed any lingering concerns over elevated valuations, aiding the rise over the last week,” Neeraj Dewan, director at Quantum Securities,said. Continued on Page 12 74,671.28 Close (Apr 29) NIFTY 22,700 22,625 Intra-day 22,643.40 22,486.25 BANK NIFTY Intra-day 49,424.05 49,600 Previous 49,200 close: 48,201.05 Clo (Ap 6) Close (Apr 26) 22,550 48,800 941.12 22,475 Previous 223.45 points close: 1% 22,419.95 22,400 Open Close 48,400 points 1.28% Plan includes hassle-free access to public places S SHANTHI Bengaluru, April 29 SENSEX 73,730.16 Digi Yatra 2.0: Foreign travel, hotel check-ins BSE stocks fall 20% on Sebi diktat 2.54% 48,000 48,359.90 Open Close SHARES OF BSE crashed nearly 20% in intra-day trades on Monday after markets regulator Sebi directed the exchange to cough up`96.3 crore more in regulatory fees for FY24, reports Vivek Kumar. The stock ended 13.3% lower at `2,785 after falling around 18% intraday. ■ PAGE 10 Sugar content in Cerelac less than FSSAI cap: Nestle Serentica to invest up to `30,000 cr by FY27 AKANKSHA NAGAR New Delhi, April 29 RAGHAVENDRA KAMATH Mumbai, April 29 Cerelacwithout added sugarin India,but it would be difficult to specify an exact timeline,Narayanan said.“In the last five years, NESTLE INDIA ON Monday rejected the therehasalmostbeena30%cutinitslevels chargesrelatingtothecompanysellingbaby andwearelookingatfurtherwaysofreducfoodproductslikeCerelacwithhighersugar ingthis;itisalsoanongoingprocess,”hesaid. content in less developed countries like Acknowledging that the FSSAI has souIndia.ChairmanandMDSureshNarayanan ght information on the sugar content in saidthechargesareracCerelac,hesaidthesugar iallystereotyped,unforow has not had signifiSURESH NARAYANAN, rtunate anduntrue. cant impact on sales. MD & chairman, Nestle India Narayanansaidthat Speaking at a media added sugarcontent in roundtable, Narayanan BOTH ADDED SUGAR AND Cerelac is much lower saidtheamountofsugar NO-ADDED-SUGAR than the upper limit contentininfantfoodsis prescribed by the Food PRODUCTS ARE PRESENT IN determinedbythecapaSafety and Standards EUROPE AS WELL AS IN ASIA bility to meet the nutriAuthority of India tion profile of a particu(FSSAI).“There is nothlar age group and that is THE ALLEGATION OF ing in this product that universal. He said a MORE SUGAR CONTENT IN majority of sugar premakes it potentially of LESS DEVELOPED any risk or any kind of sent in Nestle product is harm,” he said. natural sugar.“There is COUNTRIES IS RACIALLY AspertheFSSAI,the nolocalkindofapproach STEREOTYPED permissible level of to making a nutritional AND UNFORTUNATE added sugar is 13.6 adequacy study. Globgramsper100gramsof ally, the recipes are feed.“Nestle is 7.1 graengendered in an age ms,which iswell below where energy dense the standards and the products are needed by maximum limits set growing children. So, up,” Narayanan said, there is no distinction adding that the comthat is made between a pany’s infant food forchild in Europe and a mulation for children child in India or any below 18 months is other parts of the done on a globalbasis. world,”Narayanan said. The company is looking at introducing Continued on Page 12 SERENTICA RENEWABLES, PART of Vedanta Group, is looking to invest up to `30,000 crore by FY27 in its projects, including the existing ones. “Looking ahead, our capital expenditure plans for renewable energy remain strong. Including ongoing projects, we expect to invest around `25,000-30,000 crore over the next three financial years,” said Pratik Agarwal, chairman, Serentica Renewables. With a goal of achieving 17 GW by 2030,the company aims to install 10 GW of renewable energy capacity by 2027, with a primary focus on the commercial and industrial (C&I) sector,Agarwal said. To achieve this goal, it is developing customised solutions to meet the diverse energy needs of C&I customers. This includes offering tailored contracts and participating in government tenders for round the clock (RTC) and firm and dispatchable renewable energy (FDRE) projects,he said. In FY25, the company is planning investments of around `15,000 crore in developingwindandsolarRTChybridprojects,he said. “Most of our equity has been tied up withKKRcommitting$650millioninSerentica–ourrenewableenergyplatform.To fund future growth, we will reach out to our existing shareholders and outside investors to raise $300 million,”he said. Continued on Page 12 DIGI YATRA IS set to spread wings and will be available for international travellers before the end of 2025.That’s not all.The makeover plan includes using the app for hotel checkins and hassle-free access to public places. To enable the facilityforforeign travellers, Digi Yatra Foundation (DYF), a non-profit organisation working on the project,will create e-passport verifiable credentials by integrating the soon-to-be-launched chipenabled e-passports into the app.At present, it is prototype testing the e-passport-based enrollment.“We are eagerly waiting for the rollout ofelectronicpassportsin India tofasttrack things at ourend,”Suresh Khadakbhavi, CEO,DYF,said during an interaction with FE. DYF is also in talks with various stakeholders to ensure automated border control practices for departure and arrival immigration.“This will enable automated immigration clearances upon arrival and departure, eliminating the need for physical passport verification and saving more than an hour’s time for the passengers,”Khadakbhavi said. Hecitesanexample.“Ifyouareflyingfrom Bengaluru to Frankfurt,youwouldshareyour credentialswith Bengaluru officials using the app. Then you go through the seamless process. Once you land in Frankfurt, the immigration authorities there will have already received your credentials. And now instead of waiting for two hours, you can go through automated bordercontrol,scanyour passport,match the face and go.” DYF, which is co-owned by the Airports Authority of India (AAI) and private airports, alsoplanstoalignwithIATAOne-ID,forglobal interoperability.It is aninitiativebythe InternationalAirTransportAssociation(IATA),representing around 320 airlines in over 120 TAKING FLIGHT ■ E-passport verifiable credentials on the cards for foreign travellers ■ Integration of soon-to-belaunched chipenabled e-passports ■ At present, it is prototype testing e-passport-based enrollment ■ In talks with various stakeholders to ensure automated border control practices ■ Plans to align with IATA One-ID for global interoperability ■ It is also a preparation for becoming a global transit hub countries, to streamline passenger journeys with advanced sharing of information and a contactless process at the airport based on biometric-enabled identification. Many European countries are also testing out digital travel.Last year,Finland launched the world’s first digital travel document pilot programme at Helsinki Airport. Croatia, the Netherlands and Canada are also experimenting with the concept. The biometric boarding system that uses facial recognition technologyforverification at Indian airports last month had an upgrade in its backend system,and userswere asked to install the new app. Continued on Page 12 Ola Cabs to lay off 10% staff; CEO Bakshi quits FE BUREAU Bengaluru, April 29 HEMANT BAKSHI, CEO of Ola Cabs, has quit just four months after joining the company. The development comes at a time when the firm is planning a restructuring exercise that will see around 10% reduction in its workforce,impacting around 200 employees. Sources said that Bakshi’s resignation comes into effect immediately and the dayto-dayoperationsofthefirmwillnowbeoverseenbyco-founderBhavishAggarwal.Inaletter to employees, chairman and managing directorAggarwalsaidthatBakshiwillpursue opportunities outside the company. Ola Cabs is also preparing to file a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an IPO. Group firm Ola Electric has already filed its DRHPin Decemberand plans to raise around `7,250 crore through an IPO.This will be the first attempt at public listing by a domestic electric vehicle firm. Valued at $7.3 billion in 2021, Ola Cabs counts marquee investors such as Temasek, Tiger Global and Warburg Pincus among its backers. Recently, it shut down its international operations in markets like the UK,Australia and New Zealand. Ola's Mobilitybusiness in FY23 reported a revenue of `2,135 crore,up nearly 58%,and ON THE ROAD ■ Hemant Bakshi is leaving just four months after he joined from HUL ■ Reduction in the team size to impact about 200 employees ■ Bakshi's resignation coincides with the company's impending restructuring efforts ■ Bhavish Aggarwal, co-founder, to oversee operations till a new CEO is named for the first time,the firm reported a positive Ebitdaof`250croreafterreporting`66crore of Ebitda loss in FY22. ANITechnologies,the parent entityof Ola Fleet, Ola Financial Services and Ola Stores, reported a consolidated revenue of `2,799 crore, up nearly 42% year-on-year despite a reduction in revenues from Ola Fleet and Ola Financial Service. iOS MOBILE OPERATING SYSTEM, APP STORE, SAFARI ALREADY TARGETED BY THE LAW Apple’s iPad hit by EU’s digital dominance crackdown SAMUEL STOLTON April 29 APPLE’S IPAD HAS been added to a list of Big Tech products and services hit by strict new European Union rules aimed at stopping potential competition abuses before they take hold. The move means Apple has six months to make sure its tablet ecosystem complies with a raft of preemptive measures under the EU’s flagship Digital Markets Act. The company’siOS mobile operating system, its App Store and Safari browser are already targeted by the law — but Apple has challenged its designation for certain servicestotheEU’sGeneralCourtin Luxembourg, with hearings set to TAMING BIG TECH ■ Apple has six months to ensure iPadOS is compliant with the EU’s flagship Digital Markets Act ■ iOS mobile operating system, App Store and Safari are already targeted by the law take place later this year. The EU’s decision to draw iPad under the scope of the DMA will ensure that fairness and competition are preserved, EU competition ■ iPad users can download third-party apps, uninstall preloaded apps, have thirdparty payment options ■ Microsoft, Meta, Google, Amazon and ByteDance have all been targeted for new obligations ■ Tough penalties for any violations - - up to 10% of global annual turnover or even more for repeat offences commissioner Margrethe Vestager said in a statement. She said that despite not meeting all the thresholds for being earmarked,an investigation showed that “iPadOS con- stitutes an important gateway on which many companies rely to reach their customers”. The Commission said its investigation had revealed that business usersofiPadOSexceedthethreshold by eleven-fold, and end user numbers are“close”to the threshold and predicted to rise in the near future. Itsinvestigationalsofoundthatboth end users and business users are “locked-in”to using iPadOS. The decision is a loss for Apple, which will have to adapt its operating system to meet a swathe of new obligationsandprohibitions,including allowing iPad users to download apps from beyond Apple’s confines aswellasbeingabletouninstallapps preloaded onto devices. An Apple spokespersonsaidthatthecompany remains focused on delivering for European consumers,“while mitigatingthenewprivacyanddatasecurityrisks the DMAposes”. TheEU’sDMAstrikesattheheart of the business models of six of the world’s most powerful technology firmsdeemedtobedigital“gatekeepers”. Aside from Apple, Microsoft, Meta Platforms,Alphabet’s Google, Amazon and TikTok owner ByteDancehave allbeentargeted for newobligationsaimedatpreventing themfromabusingtheirdominance. Under the law — which came into full effect on March 7 — it is illegal for designated firms to favourtheirown services overthose of rivals. They are also barred from combining personal data across their different services, prohibited from using data they collect from third-party merchants to compete against them, and have to allow users to download apps from rivals platforms. — BLOOMBERG