Category Archives: Business

ITC Q1 net profit up 7.37% to Rs 2,560.50 crore

NEW DELHI: Diversified conglomerate ITC on Thursday reported an increase of 7.37 per cent in standalone net profit to Rs 2,560.50 crore for the first quarter ended June 30, 2017.

The company had posted a net profit of Rs 2,384.67 crore for the April-June quarter a year ago, ITC said in a BSE filing.

ITC’s net sales during the period under review was up 4.29 per cent to Rs 13,722.21 crore, as against Rs 13,156.68 crore in the corresponding quarter last fiscal.

Its total expenses were up 3.34 per cent to Rs 10,332.61 crore, as against Rs 9,998.18 crore of Q1 FY 2016-17.

Shares of ITC today settled at Rs 288.65 on BSE, down 1.62 per cent from previous close.

Jio effect: Idea Cellular posts Rs 816 crore loss in Q1

NEW DELHI: Telecom operator Idea Cellular on Thursday posted a loss of Rs 815.9 crore in the first quarter ended June 30, impacted by sustained pressure from disruptive tariffs of Reliance Jio.

This is the third straight quarter loss for the Aditya Birla group firm as it has not been able to recover from the pressure of aggressive tariff war triggered by Mukesh Ambani- led Reliance Jio Infocomm.

Idea Cellular had posted a profit of Rs 217.1 crore in the same period a year ago.

“The upheaval in the Indian wireless industry continued in the first quarter of financial year 2018, despite the new entrant slowly migrating from ‘free services’ to ‘paid services’ but with heavily discounted unlimited voice and data pricing plans,” Idea said in a statement.

The company’s financial performance, however, did not show any signs of recovery despite Reliance Jio ending free 4G service offer in March. On a quarterly basis, its January- March 2017 loss of Rs 325.6 crore further widened in the April-June period.

Total revenue of Idea also declined by about 14 per cent to Rs 8,181.7 crore in the reported quarter from Rs 9,552.4 crore it posted in the corresponding period of 2016-17.

The company said that to counter aggressive tariff war, Idea also introduced similar competitive unlimited price plans, which are likely to result in decline of industry revenues, although the impact of the same is expected to be more pronounced on non-4G operators.

“These aggressive tariff offerings by Idea, led by unlimited voice and data bundled plans, resulted in steep decline of voice and mobile data realisation rates,” the statement said.

It added that volume growth in both mobile voice and data segments compensated the fall in realisation of rates.

Idea said its mobile data volume witnessed a meteoric growth of 99.1 per cent on sequential basis as its wireless broadband network carried 252.8 billion mega bytes of data in the reported quarter. However, the mobile data rate saw a decline of 52.9 per cent, falling to as low as 5.4 paise per MB compared to 11.5 paise in January-March 2017 period.

The net debt of the company at the end of June 30, 2017 stood at Rs 53,920 crore which includes a large component of debt for payment of spectrum that it won in different auctions.

Shares of Idea closed at Rs 92.65 a unit, down by 2.11 per cent compared to previous close on BSE today.

ICICI Bank Q1 profit falls, but beats estimates

MUMBAI: ICICI Bank Ltd, India’s third-biggest lender by assets, reported an eight per cent fall in its first-quarter profit but was slightly ahead of analysts’ estimates.

Net profit fell to Rs 2,049 crore in the quarter ended June 30, from Rs 2,232 crore a year ago, the bank said on Thursday.

Analysts on average had expected a net profit of Rs 2,043 crore, Thomson Reuters data showed.

Gross non-performing loans as a percentage of total loans rose to 7.99 per cent at end-June from 7.89 per cent at March-end and 5.28 per cent a year earlier.

ICICI Bank Q1 profit falls, but beats estimates

MUMBAI: ICICI Bank Ltd, India’s third-biggest lender by assets, reported an eight per cent fall in its first-quarter profit but was slightly ahead of analysts’ estimates.

Net profit fell to Rs 2,049 crore in the quarter ended June 30, from Rs 2,232 crore a year ago, the bank said on Thursday.

Analysts on average had expected a net profit of Rs 2,043 crore, Thomson Reuters data showed.

Gross non-performing loans as a percentage of total loans rose to 7.99 per cent at end-June from 7.89 per cent at March-end and 5.28 per cent a year earlier.

Shikha Sharma reappointed as MD & CEO of Axis Bank

Putting an end to all resignation rumours, Axis Bank on Thursday reappointed Shikha Sharma as MD & CEO for 3 years. Sharma, in an earlier report, had dismissed reports about her looming exit from the bank.

In an exclusive interview with ET, Sharma said that there was no substance to the media reports stating her impending resignation and that she was focused on doing her job.

“These are rumors that are flying around hot and fast, but there is no substance to it, these rumors don’t change who I am or the commitment to the institution,” Sharma said.

“The bank has an exciting future and I am just focused on trying to do the best we can as a team together for the bank and the stakeholders. The appointment of a search firm was in the interest of best governance, given that I would have done nine years with the bank in June 2018 and it does not preclude anything about whether I will do another term or not.”

Recently the Axis Bank board had hired executive search firm Egon Zehnder to find a successor. For several weeks rumors have been rife that Sharma may step down from her position once her term ends next year.

Recently it was reported that Sharma was headed to the Tata Group to head its financial services business which was later vehemently denied by the bank.

“There are these rumors that are going around some of them I don’t understand at all,” Sharma told ET. “Suddenly someone is saying Delhi is asking Shikha to go, I don’t know who they have spoken to, they have certainly not spoken to me, and nobody from my board has spoken to me. Then you say she is joining Bajaj, I have not met Sanjiv Bajaj for 7 years. So the point is these are just crazy rumors, Piramal is our client of course I will meet him, Chandra is our client of course I will meet Chandra it doesn’t mean I am joining Piramal or joining Chandra.”

According to the bank hiring of an executive search firm is part of a laid down process which the board undertakes at regular intervals.

Maruti Q1 net profit grows 4.4% to Rs 1,556 crore

Maruti Suzuki, the country’s top-selling car maker, posted a quarterly profit that missed estimates even though sales grew steadily, as a rise in commodity prices and the impact of a new nationwide sales tax ate into earnings.

The company, majority-owned by Japan’s Suzuki Motor Corp , announced on Thursday a profit of Rs 1,556.40 crore for the first quarter ended June 30, up 4.4 per cent from the year-ago quarter.

This was below the Rs 1,701 crore average estimate of analysts, according to Thomson Reuters data.

Maruti, which provides the bulk of Suzuki Motor’s revenues, sold a total of 3,94,571 vehicles during the quarter, up 13.2 per cent from the year-ago period. Total income jumped 17 per cent to Rs 20,460 crore.

Maruti dominates the small car market in India and has been expanding its net by launching more premium vehicles to compete better with newer and planned entrants such as Kia Motors and SAIC Motor Corp. Higher sales of premium models such as the Brezza SUV and Baleno hatchback helped its bottomline in the March quarter.

In the latest quarter, the company absorbed a one-time cost paid to dealers to compensate for the tax loss incurred on vehicles in stock during the transition to the Goods and Services Tax (GST), rolled out on July 1. The amount was not disclosed with the quarterly results.

Maruti also said its profit was hit by higher commodity prices and costs from sales promotion and marketing.

The automaker also incurred a deferred tax expense of Rs 185 crore, more than four times the amount it spent last year.

Crackdown against shell companies: I-T dept to share vital tax data

NEW DELHI: The tax authorities will now relay audit reports of corporates and specific information from their I-T returns as also PAN data to the ministry of corporate affairs, as the government plans to crack down harder on shell companies.

Coming down heavily on shell companies, the ministry of corporate affairs (MCA) has already cancelled registrations of over 1.62 lakh companies for non-filing of financial statements for the immediate two preceding fiscals.

The Central Board of Direct Taxes (CBDT), the apex policy making body of the I-T department, in an order has asked the principal director general of income Tax (Systems) to share “bulk information” to the MCA.

Bulk information would mean Permanent Account Number (PAN) data of corporates, their Income Tax returns (ITRs), audit reports and statement of financial transactions (SFT) received from banks relating to corporates.

Also the tax department would share identified PAN Challan Identification Number (CIN) as well as PAN Director identification number (DIN) with the MCA.

The Registrar of Companies (RoCs) has removed 1,62,618 companies from the register as on July 12, 2017 after following the due process under Section 248 of the Companies Act, 2013.

Section 248 provides powers to the RoC to remove the name of a company from the register on various grounds including non carrying out any business for two preceding financial years.

Out of the 1,62,618 companies that have been struck-off the register, the registration of 33,000 were cancelled by RoC (Mumbai).

Among others, RoC (Delhi) has deleted 22,863 companies from the register and 20,588 firms were deregistered by RoC (Hyderabad).

To facilitate the process of furnishing information, CBDT would enter into a Memorandum of Understanding (MoU) with MCA to detail “the mode of transfer of data, maintenance of confidentiality, mechanism for safe preservation of data, weeding it out after usage and information which shall be furnished by MCA to Income-tax Department.

“The frequency and time line for furnishing information shall be decided by Principal Director General of Income-tax (Systems) in consultation with MCA and included in the said MoU.

Markets erase gains in last hour, end flat

Key market indices- Sensex and Nifty slipped dramatically in the last hour hour of trading in Thursday. Sensex came down more than 250 points from the day-high as both the indices finished flat.

The 30-share BSE Sensex closed at 32,383.30, a marginal gain of 0.84 points while the broader 50-share NSE Nifty ended at 10,020.55, losing by an even meager margin of 0.10 points.

Analysts owed the volatility of the market to investor concerns ahead of expiry of July futures and options contracts.

HDFC Ltd gained more than 5 per cent during the day on back of healthy first quarter earnings. Bank stocks were on the surge as Yes Bank, HDFC Bank, Kotak Mahindra Bank and SBI were all among the major gainers. Yes Bank hit a record high during the intra day trade.

Dr. Reddy’s, Tata Motors, Bharti Airtel and TCS lost the most.

Infosys co-chairman reaffirms faith on CEO Vishal Sikka

BENGALURU: Infosys Co-Chairman Ravi Venkatesan is hopeful that CEO Vishal Sikka would deliver results for the company and not think of leaving it because of losing high-profile talents. Venkatesan stated this when asked if he sees Sikka turning things around for Infosys or turning his back on the company for failing to retain high-profile executives.

“Well I very much hope that it is the former (that Sikka will turn things around), not the latter (that he will turn his back on Infosys due to losing high-profile talents),” Venkatesan told PTI here.

Market watchers are speculating over the stint of Sikka at Infosys in the backdrop of as many as 11 executives quitting the company after took charge, the latest being Yusuf Bashir, who was leading the $ 500-million startup fund of software services for over two years. Talking about exits, Venkatesan said it was not a matter of great surprise because the executives were highly desired in IT industry. But the company needed to make sure that it did not lose talent, and the best way to retain them was to allow them to grow. “But when the industry is changing so fast, boss, if people have an opportunity to become a CEO somewhere else and become number 2 somewhere else, we cannot stop them,” he added.

Nevertheless, Venkatesan said, he felt bad if any of good employee left the company because he was an emotional person.

“We had a few exits, and I am an emotional person also. Every time a good employee leaves at any level, I feel bad about it,” he said.

Repying to a query, Venkatesan said all stakeholders, including the founders and the promoters, will feel anxious due to cultural transition, which brings a sense of instability among them.

“I think the big challenge for all companies including us is to manage the cultural transition – changing business model, market and business strategies.

“During this shift, there obviously is a sense of instability, and therefore employees feel anxious. Investors may feel anxious. Certainly, the people who built this company like the founders will feel anxious,” he said. Venkatesan said during the stints of N R Narayana Murthy and Nandan Nilekani as the company heads, Infosys saw amazing performances because there was a tremendous amount of alignment between market, business model and culture.

“When market changes, you try to change your model; your strategy. Then what happens is, you start bringing in new people to fill gap in new areas like digital. They come in with a different mindset and cultural orientation. They come in at different composition levels etc, and this creates stress in the system,” he added. Hence, it was the job of a board and senior management to manage transition. It was not about strategy, but managing people, anxieties, emotions and relationships in the process, Venkatesan said.

Markets keep soaring, Sensex rallies past 32,500-mark

There seems to be no stopping in the stock markets’ bull run as Sensex and Nifty further consolidated its gains in Thursday’s afternoon trade.

At 2.35 PM, 30-share BSE Sensex was up 165.33 points at 32,547.79 while the broader 50-share NSE Nifty had gained 56 points to be at 10,076.65. Both the indices were gaining more than 0.50 per cent.

In morning trade, Nifty had solidified its position above the 10,000 mark and Sensex for the first time had zoomed past the 32,500-mark.

On the back of impressive first quarter earnings, HDFC Ltd was gaining more than 6 per cent. Bank stocks continued to rally as Yes bank, IndusInd Bank, HDFC Bank, SBI and Kotak Mahindra Bank featured among the major gainers.

Bharti Airtel, TCS, Tata Motors and pharma stocks were losing.