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QBiz: Wipro Q1 Net Down, IMF Trims India Growth in 16-17 & More

The Quint’s compilation of business news from across the country.

Published
Business
4 min read
 Finance Minister Arun Jaitley and the Managing Director of International Monetary Fund (IMF) Christine Lagarde at a bilateral meeting in New Delhi on 11 March 2016. (Photo: IANS)

1. IMF Sets India Growth Estimate to 7.4%: ET

The International Monetary Fund (IMF) has trimmed India’s growth forecast for the current and next financial years by 0.1 percentage points as it pared global growth by an identical amount.

India is now forecast to expand 7.4 percent in the two years compared with the earlier forecast of 7.5 percent for both, retaining its tag as the world’s fastest-growing major economy.

China’s forecast has been retained at 6.6 percent and 6.2 percent for 2016 and 2017, respectively.

Source: Economic Times

2. Govt to Infuse Rs 22,915 Crore in 13 PSU Banks: Livemint

State Bank of India and 12 other state-run lenders, facing difficulties with rising bad loans and losses, will receive Rs 22,915 crore in capital as the government seeks to boost loan growth in Asia’s third-largest economy.

The first instalment of the funds is set to be released to provide liquidity support to the banks and help them raise funds from the market, the finance ministry said on Tuesday. The remaining amount, linked to the banks’ performance, will be released later.

Finance minister Arun Jaitley had committed Rs 25,000 crore towards capital infusion in state-controlled banks in this year’s budget, the same as last year, but had promised more funds depending on their requirements.

Source: Livemint

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3. CIL Counting on Dividends from Arms to Replenish Cash Reserves: ET

Coal India is putting its faith on banking on hefty dividend from its subsidiaries to replenish its cash reserves that would decline to Rs 690 crore after it spends Rs 3,650 crore to finance its recently announced share buyback.

Coal India has decided to fund the buyback from its standalone reserves of Rs 4,340 crore.

Coal India’s consolidated cash reserve stands at around Rs 38,000 crore of which Rs 8,500 crore belongs to Eastern Coalfields, Western Coalfields, Bharat Coking Coal and Central Mine Planning & Design Institutes - weak companies that are not in a position to pay dividend at the moment.

Source: Economic Times

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4. UltraTech Cement Q1 Profit Rises 29% to Rs780 Crore: Livemint

India’s largest cement maker, UltraTech Cement Ltd, on Tuesday said the net profit in the quarter which ended on 30 June rose 29 percent from a year ago on “higher operational efficiencies”.

The company has reported a consolidated net profit of Rs 780 crore in the April-June period as opposed to Rs 604 crore a year ago. Net sales rose 4 percent to Rs 6,538 crore from Rs 6,281 crore. The earnings have overcome even market estimates.

Source: Livemint

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5. When Pots Turn Dry and Barks Gather Moss in the Rubber Plantation Industry : HBL

In Kerala’s Kottayam district, rising production costs and a corresponding slide in prices of natural rubber have compelled any plantation farmers to stop tapping trees at their plantations.

“It is now unaffordable as the wages have increased to Rs 600 per day. I am not even entitled to any freebies or an incentive announced by the government as only those with less than five acres are eligible for the sop,” says Tomy Elamthottam, a plantation owner in Kerala.

The Kerala Government had earlier announced a support price of Rs 150 per kg for growers who own less than five acres of plantation.

Tapping charges may have come down to Rs 1.5 from Rs 2 per tree, but the production cost of Rs 150 per kg is still above that current market price, which is around the Rs 130 per-kg-mark.

The story holds true for rubber farmers in Manimala and the rest of the Central Travancore districts, including in Pathanamthitta and Idukki, where the plantation crop is grown extensively.

Source: Hindu Business Line

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6. India’s Crop Protection Industry to Be Worth $6.3bn by 2020: ET

The Indian crop protection industry is estimated to grow by 7.5 percent per annum to reach $6.3 billion by 2020, according to a report by Tata Strategic Management Group quote.

The report ‘Next Generation Indian Agriculture - Role of Crop Protection Solutions’ was released by Hukumdev Narayan Yadav, Chairman, Standing Committee of Parliament on Agriculture and Farmers Welfare.

As per the report, Indian crop protection Industry is estimated at $4.4 billion in FY 2014-15 of which 47 percent are exports. The crop protection industry is expected to grow further at 7.5 percent per annum to reach $6.3 billion by FY 2019-20.
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7. Wipro Net Profit Down 6% in June Quarter: BS

As Wipro disappointed Wall Street with its key financials, the company’s June 2016 quarter performance once again seemed to reiterate that the transformation it’s going through is still work in progress.

The company met the middle end of its dollar-term revenue projection designated for the April-June period, but disappointed on the net profit growth and profit margin fronts, apart from giving a less than promising revenue guidance for the September quarter.

For the quarter which ended on 30 June 2016, Wipro reported Rs 2,050 crore ($304 million) in net profit, a sharp drop of six percent over the year-ago period, while revenues at Rs 13,600 crore ($2 billion) saw an increase of 11 percent.  
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8. EOW Attaches Rs 2,000 Crore Assets of FTIL: ET

The Economic Offences Wing of Mumbai police has attached assets worth Rs 2,000 crore belonging to Financial Technologies India Ltd (FTIL), owned and founded by Jignesh Shah, official sources revealed.

The assets, which include FTIL’s headquarters, re-named 63 Moons, have been seized under the Maharashtra Protection of Interest of Depositors Act, bank accounts and deposits.

Reacting to the EOW move, FTIL termed the move as without “legal basis” and said the company would challenge it before the court soon.

Source: Economic Times

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9. Yatra, CaratLane Deals Put Spotlight Back on vc Exits: Livmeint

Last week, online travel agency Yatra Online agreed to a reverse merger with Terrapin 3 Acquisition Corp, in a multi-phased transaction that assigned it an enterprise value of $218 million.

The transaction provided a partial exit to a clutch of venture capital investors, including Norwest Venture Partners (NVP), Reliance Venture Asset Management Ltd, IDG Ventures, Valiant Capital, Vertex Ventures and Intel Capital that have invested in the company over the past 10 years. NVP, Yatra’s earliest backer, first invested in the company in 2006.

There have been 19 exits till date this year, data from Venture Intelligence shows, and, expectedly, the conversation has shifted to whether venture capitalists (VCs) invested in India are seeing their first real exit season.

Source: Livemint

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