QBiz: SpiceJet Registers Profit, Sebi Backs FPIs on MAT Issue
Here is The Quint’s round-up of the top business headlines
1. SpiceJet Registers a Profit of Rs 22.5 Cr in Q4 of FY15
After seven quarters of losses, budget carrier SpiceJet today flew back into black with a net profit of Rs 22.51 crore in the January-March period of the last fiscal helped by renegotiated contracts and settlements and provisioning for re-delivery expenses among others.
The income from operations, however, declined by almost 40 per cent to Rs 786.32 crore in the reporting quarter as compared to Rs 1,300.75 crore in the January-March quarter of the fiscal 2013-14, the airline said in a release.
2. TISS Flounders as Sarkar Fails to Bolster It with Funds
Tata Institute of Social Sciences (TISS), a leader in the area of social science education, is in the midst of a financial `nightmare’, Economic Times has reported. This is because the Human Resource Development (HRD) ministry and the University Grant Commission (UGC) has still not decided on a framework for government policy towards funding deemed universities in the country.
TISS, set up in 1936 by the Tatas, are among eight deemed universities funded by the government which are faced with a financial crisis a UGC and HRD ministry are yet to decide whether the state should continue funding them.
3. BSNL, MTS in Talks to Offer 4G Services
State-run telecom company Bharat Sanchar Nigam Ltd (BSNL) is in discussions with MTS, the Indian unit of Russian telecom company Sistema, to offer fourth generation, or 4G, telecom services across the country, through joint branding, says the Business Standard.
4. Foreign Funds Get Watchdog’s Backing on MAT
India’s capital markets regulator has stepped in to back foreign portfolio investors (FPIs) as they oppose the minimum alternate tax (MAT).
In a recent letter to the finance ministry , Sebi has voiced its concerns over the possible impact of MAT on foreign funds -the largest group of investors on Indian stock exchanges. The regulator has said that the fear of MAT has rattled many offshore investors and must be dispelled at the earliest, a person aware of the communication told ET.
5. Socio-Economic Caste Census Data Soon, to Slash Subsidy
With the results of India’s first ever decentralised Socio-economic Caste Census (SECC) launched in 2011 set to be released soon, a key hurdle in reducing the wasteful parts of welfare schemes and subsidies are expected to be removed, says the Financial Express.
The lists being the products of comprehensive door-to-door enumeration across the country are more reliable gauges of deprivation than the data furnished by the National Sample Survey Organisation or the National Accounts Statistics on which poverty estimates hitherto hinged on, experts feel.
6. India Inc Top Dogs Becoming Renegades
Leading recruiters say they are battling a sharp increase in the number of cases where senior executives accept job offers but do not show up. The spike in such cases is highest since the boom times of 2006-07, according to the Economic Times.
At executive search firm EMA Partners, there have been four senior-level no shows in the past two months alone. Hunt Partners has already seen more than 6-7 such instances in the first few months of 2015, compared with just one-off cases earlier.
7. ONGC Profit Dips 19.5% on Higher Costs, Write-Off
State-owned ONGC on Thursday reported a 19.5% drop in net profit to Rs 3,935 crore for the quarter ended March 31, 2015, mainly due to higher operating cost and write-off on dry wells drilled.
The net profit of Oil and Natural Gas corp in January- March was lower than Rs 4,889 crore in the January-March period of the previous fiscal, 2013-14.
8. Net Profit of Nifty Firms Halves in Fourth Quarter
For India’s top companies, the quarter ended March has been a painful one, the Business Standard reports. The combined net profit of the 43 companies in the benchmark National Stock Exchange Nifty index that have declared their results so far has halved during the quarter compared to the corresponding period a year earlier.
This makes it the worst quarter for Nifty companies since the September 2008 Lehman collapse, when there was a sudden drop in revenues and profits of commodity producers, automobile makers and banks, as credit markets were squeezed.
9. Unsuccessful CDR exits hit Rs 27,000 Crore in FY15
Enterprise service provider Tulip Telecom, EPC player Indu Projects, Vibha Agrotech and engineering firm Apex Encon Projects are among companies whose debt recast packages have failed. Between the four, banks had restructured a total of R5,300 crore.
The value of unsuccessful CDR exits at Rs 27,000 crore in FY15 compares poorly with the amount of Rs 14,000 crore in FY14, and while FY15 saw 46 failures, FY14 saw 50 unsuccessful recasts.
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