QBiz: March Qtr. Earnings a Drag; Tata Invests in Xiaomi and More

These are The Quint’s round-up of the top business stories of the day.

3 min read
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1. Earnings Tremors Rock Early Birds

Around 100 firms that have declared their March-quarter results so far, across sectors, have reported a combined 9.2 % year-on-year net profit decline to Rs 28,284 crore, and a 15.6 % drop in net sales to Rs 1.99 lakh crore. This is the first time in eight quarters of a year-on-year fall in net profit.

Read the full Business Standard story here.

2. At $5b Valuation, Alipay to Buy 25% in Micromax

Micromax is all set to sell a 25% stake to a consortium led by Ant Financial Services Group which has valued Micromax at around $4-5 billion (approximately . 24,000-30,000 crore), the Economic Times has reported.

The proposed deal would see both infusion of capital and exits, partial or total, by existing investors. An exit will give existing investors significant returns on their investments.

Read more here.

3.Tesco to Go Slow on India Operations

After posting a record $9 billion loss for the previous year, UK’s leading retail chain, Tesco, is expected to significantly reduce the pace of its expansion in India due to its financial difficulties, according to the Business Standard.

Last year, the company had announced an investment of $110 million (Rs 850 crore at the time) in India. It was the first international group to enter the country’s multi-brand retail space after the government permitted 51 % foreign investment in the sector.

Read more here.

4. Mallya-Diageo Battle to be Like WWE Bout

USL on Monday is likely to submit three reports to its parent Diageo, requesting the British liquor giant to review their contractual obligations and vote against Mallya in the next extraordinary general meeting and seek his ouster as the company’s non-executive chairman.

Read more at the Economic Times here.

5. In Ratan Tata, Xiaomi Finds a ‘Jewel’ Investor

Ratan Tata, the former head of the $100 billlion conglomerate, Tata Group, has acquired a stake in Chinese, mobile phone manufacturer Xiaomi, for an undisclosed amount the Financial Express has reported.

“We are truly excited to have Mr Tata on board. We will seek his advice in our journey to becoming an Indian company,” Xiaomi India head Manu Jain said.

Read more here.

6. Top Telcos Likely to Report Dip in Voice Revenue in Q4

Bharti Airtel, Idea Cellular and Reliance Communications are likely to report a sequential dip in voice revenue per minute (RPM) in the January-March period after remaining relatively little changed over the past few quarters.

The expected slide in voice RPM is primarily due to last month’s 30% cut in interconnect charges (to 14 paise a minute) by the sector regulator, a move slated to hurt incumbents who account for a bulk of the industry’s revenue market share and have most calls terminating on their networks.

Read the full Economic Times report here.

7. DBTL Weeds Out 3 Crore Bogus LPG Connections

The Direct Benefits Transfer for LPG scheme or DBTL, has weeded out over three crore bogus subsidised domestic cooking gas connections, saving billions of rupees for the central government, the Financial Express has reported.

Out of 15 crore subsidised LPG connections, 12 crore beneficiaries have authenticated their connections under the DBTL by linking their bank accounts. Of these, about 8.5 crore have also linked their unique identification (Aadhaar) number to bank accounts.

Read more here.

8. Bengaluru Realtors Poaching Execs From Mumbai Peers

Buoyed by strong commercial and residential off-take, Bengaluru-based real estate firms are poaching senior executives for top positions and consultants from Mumbai’s developers, the Business Standard reports. Over the past year, a number of top executives from Mumbai’s real estate firms have moved to Bengaluru, even as residential property sales in the country’s financial capital have been slow.

Mumbai is getting saturated and prices are not moving up. Investors have made little money in the past three years. But Bengaluru is seeing strong growth; there has been nine million square feet of commercial off -take in the past nine months.

Read more here.

9. Charging Ahead: Hyundai’s India Strategy Pays Off

Hyundai has done spectacularly well in the Indian car market The Financial Express reports. It currently is the second largest car maker when it comes to car and has maintained steady profits while other competitors like Honda have been continuously seeing red. However, it is likely to see increased competition from rivals.

Read the full analysis here.

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