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IRCTC launches online bus booking services

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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On January 29, Indian Railway Catering and Tourism Corporation Limited (IRCTC) launched an online bus booking service. Passengers can make their booking by visiting www.bus.irctc.co.in.

To ensure a seamless experience for passengers, IRCTC has tied up with 50,000 state road transport and private bus operators across 22 states and three union territories.

Within the first week of March, this service will be integrated with the IRCTC mobile-app, enabling people to book bus tickets through their mobile phones as well.

Also read: Parliamentary panel asks railways to rationalise both freight and passenger fares prudently

In the portal, passengers would be able to view a variety of buses, choose the appropriate bus after taking into account the amenities, reviews and ratings, and book tickets accordingly. They can also choose their pick-up and drop-off points. For passengers, the portal will also have images of the buses.

IRCTC already offers online train and flight bookings. Through this new initiative, IRCTC is making an effort to ensure last-mile connectivity for passengers, especially those who already book their train and flight tickets through the app. A statement issued by IRCTC read that this is its endeavour to position itself as the first government ‘One Stop Shop Travel Portal’ of the country.

Starting February 1, IRCTC also resumed its e-catering services, where passengers travelling by trains on select routes will be able to enjoy hot and tasty food.

Also read: Aeroflot to commence twice weekly Delhi-Moscow flight services from Feb 14

In the first phase, the service has been resumed in 62 stations. The IRCTC had suspended this service in March 2020, due to COVID-19 guidelines and the lockdown that followed thereafter.

Before that, last October Amazon India partnered with IRCTC to let passengers book train tickets. Amazon even set up a page to promote the new service on its website.

However, the feature is only available on the Amazon Android app and mobile website. Passengers can make the payments through their Amazon Pay Balance or opt for any other digital payment service provider.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Will Elon Musk’s satellite-based internet launch in India soon?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After having topped two sectors — automobile and space — Elon Musk has his sights set on achieving the top spot in a third business venture — telecom! Musk is spinning his telecom dreams through his private space firm, SpaceX, as part of a project named Starlink.

The satellite-based service is taking off, in every sense. On Thursday, SpaceX, stated that in just four months since it entered beta, the Starlink satellite internet service has amassed more than 10,000 users across the world.

What is Starlink?

Starlink is a low-Earth satellite constellation that can provide broadband internet connection to even the remotest corners of the world. So far, about 1,000 satellites have been launched to provide the service. SpaceX is now working to expand its coverage with more satellites in the constellation and more ground stations. According to SpaceX, the speeds vary between 50 Mbps and 150 Mbps.

What are Musk’s plans for India?

Having achieved success in the venture so far, Musk now plans to disrupt the Indian telecom industry by stepping into the telecommunications sector with Starlink. The initial plan for SpaceX is to enter the Indian telecommunications industry with 100-Mbps satellite-based internet. SpaceX has stated that Starlink is now eyeing the $1 trillion market made up of in-flight internet, maritime services, demand in China and India.

Will Starlink launch in India soon?

SpaceX has suggested the Indian government to consider allowing satellite-based broadband technologies to operate in the country. Last year, in August, the Telecom Regulatory Authority of India (TRAI) had issued a consultation paper on a roadmap to ‘Promote Broadband Connectivity and Enhanced Broadband’.

In reply to the paper, Patricia Cooper, vice-president, Satellite Government Affairs at SpaceX, stated that Starlink’s high-speed satellite network “will advance the goal of delivering broadband connectivity in the near term to all Indians, particularly those without access now or in the near-term to broadband services traditionally available only to customers in urban and suburban areas”.

The submission also adds that Starlink will help eliminate many of the high costs associated with traditional broadband. If TRAI pays heed to these recommendations, SpaceX may launch Starlink in India soon.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo signs cadet pilot program with Chimes Aviation Academy, 15 cadets to be inducted soon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Towards the end of December 2020, budget airline IndiGo had announced its partnership with Chimes Aviation Academy (CAA) to select and train ab-initio pilots, as future junior first officers under Cadet Pilot Programme — the airline’s flagship training programme.

On Saturday, the budget airline announced the first batch of 15 cadets under the pilot programme will be inducted shortly. The programme is designed to meet IndiGo’s fleet expansion and subsequent demand for pilots.

IndiGo signs Cadet pilot program with Chimes Aviation Academy, first batch of 15 cadets to be inducted shortly #pilots #jobs @CNBCTV18News @CNBCTV18Live @IndiGo6E #aviation pic.twitter.com/96r2O7jmRS

— Anu Sharma (@awnusharma) February 6, 2021

Captain Ashim Mittra, senior vice-president, flight operations at IndiGo, said on Saturday: “We have about 4,000 pilots in IndiGo today. We are hoping for a long-term partnership with Chimes Aviation Academy. We request the government to work on a multi-crew pilot licence.”

IndiGo Senior Vice President Captain Ashim Mittra says

We have about 4,000 pilots in IndiGo today

Hope partnership with Chimes Aviation Academy is long-term

Request government to work on multi-crew pilot license @IndiGo6E @CNBCTV18Live @CNBCTV18News #Pilot #jobs

— Anu Sharma (@awnusharma) February 6, 2021

CAA is an aviation training organisation that has been training pilots since 2008. IndiGo’s pilot training programme is being held at the CAA Flying School in Madhya Pradesh. The selected cadets are undergoing a four-month ground schooling in Dhana, a town in Madhya Pradesh. This will be followed by 10 months of flight training.

In December, during the launch of this programme, Y N Sharma, the CEO and promoter of CAA had said they hoped to be recognised as a “suitable airline flying training institution” in India and south-east Asia.

The pilot training programme will cater to individuals with no previous flying experience. A press release from IndiGo then had added that the programme would consist of ground school training “to appear for the DGCA (Directorate General of Civil Aviation) and WPC (Wireless, Planning and Coordination) exams, Flying and Type Rating training for the cadets over a comprehensive full-time 20-month programme, which includes DGCA documentation and endorsements”.

Once the cadets completed their training in Dhana, they would have to head to an authorised training organisation for the Multi-Crew Cooperation and A320 type rating stage of training, the airline had then said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Discontinue campaign to confer Bharat Ratna on me, Ratan Tata tweets

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ratan Tata took to Twitter on Saturday to urge netizens to end a campaign seeking that the Bharat Ratna, the highest civilian award, be conferred on him. The chairman emeritus of the Tata Group added that he was, instead, happy to be able to contribute to the growth and prosperity of the nation.

Many Twitter users have been campaigning for the Bharat Ratna to be conferred upon Ratan Tata. His tweet, in response to #BharatRatnaForRatanTata campaign, read: “While I appreciate the sentiments expressed by a section of the social media in terms of an award, I would humbly like to request that such campaigns be discontinued. Instead, I consider myself fortunate to be an Indian and to try and contribute to India’s growth and prosperity (sic)”

While I appreciate the sentiments expressed by a section of the social media in terms of an award, I would humbly like to request that such campaigns be discontinued.

Instead, I consider myself fortunate to be an Indian and to try and contribute to India’s growth and prosperity pic.twitter.com/CzEimjJPp5

— Ratan N. Tata (@RNTata2000) February 6, 2021

The hashtag #BharatRatnaForRatanTata had been trending since Friday (February 5), after motivational speaker Dr Vivek Bhindra had tweeted about a campaign to confer the Bharat Ratna to Ratan Tata.

Ratan Tata believes today`s generation of entrepreneurs can take India to next level. We confer the country`s highest civilian award Bharat Ratna for @RNTata2000

Join us in our campaign #BharatRatnaForRatanTata #RequestByDrVivekBindra@PMOIndia @rashtrapatibhvn @narendramodi pic.twitter.com/U3Wr3aMxJh

— Dr. Vivek Bindra (@DrVivekBindra) February 5, 2021

Soon after the tweet, #BharatRatnaForRatanTata began trending, Twitteratis endorsed the hashtag and urged the government to honours Tata with the Bharat Ratna.

One of the users tweeted how Tata had donated $50 million in 2010 to “construct an executive centre for the Harvard Business School from where he received his collegiate education.”

Donated $50 million

In 2010, Sir Ratan Tata pooled up a sum of $50 million to construct an executive centre for the Harvard Business School from where he received his collegiate education. The hall was named Tata Hall

#BharatRatnaForRatanTata
#RequestByDrVivekBindra

— Ankush (@Ankush57198697) February 5, 2021

Another user tweeted: “This legend deserves the #BharatRatna more than anybody else (sic)”

This legend deserves the #BharatRatna more than anybody else……Sir Ratan Tata true gem of India❤❤❤#bharatratnaforratantata #RequestByDrVivekBindra pic.twitter.com/VjAKyLOPJF

— Tapasvi Mishra (@MishraTapasvi) February 5, 2021

One more user wrote: …” in fact GOI should start a civilian award in his name. (sic)”

Most precious gem of India.https://t.co/VvL8bS9jf6

Sir ratan tata must be awarded Bharat Ratna during his lifetime, in fact GOI should start a civilian award in his name.🙏@rashtrapatibhvn @PMOIndia @narendramodi @DrVivekBindra#BharatRatnaForRatanTata#RequestByDrVivekBindra

— Sarthak Chugh (@sarthak_speaks) February 5, 2021

Few of the Twitter users also wrote about the time when Tata displayed the characteristics of a true leader during the 26/11 Mumbai terrorist attacks, where his hotel, The Taj Mahal Palace, was one of the targets. “Tata set a perfect example of generosity and leadership during the 26/11 attacks. For us, Tata sir contributed a lot now it’s our turn. (sic),” read one of the tweets.

The most generous and simple personality of the world
Tata set a perfect example of generosity and leadership during the 26/11 attacks.
For us,Tata sir contributed a lot now it’s our turn.#BharatRatnaForRatanTata #RequestByDrVivekBindra #RequestByYouth

— Prasoon Singh (@Prasoon35934862) February 5, 2021

The 83-year-old heir of the Tata empire is known for his social causes and philanthropic efforts. He is a Harvard Business School graduate, and took Tata Industries to the pinnacle of success. While doing so, he’s also led India’s growth and employment generation rate.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple’s talks with Hyundai & Kia on electric vehicles paused

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The discussions between Apple and Hyundai and Kia Motors to build an electric vehicle were paused recently, stated sources familiar with the situation.

The iPhone maker has been holding talks to build an electric vehicle with the South Korean auto giant. It’s not clear yet when the discussions would resume. Apple has also held talks with other auto manufacturers, too, for building electric vehicles.

This comes as a surprise because a couple of days ago a CNBC report, quoting sources, stated that the technology giant was close to finalising a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electric vehicle.

Also read: SPEED TAKE: Why Maruti is not excited about India’s electric vehicle story

Apple declined to comment. Hyundai, which owns a controlling stake in Kia, had in January, hinted at a possible tie-up on electric cars and batteries with Apple. After stating that the company was in the early stages of discussions with the iPhone maker, Hyundai backtracked on the statement within a few hours.

Worldwide, there are a few automakers with the capacity and capability to mass manufacture vehicles. With Apple known for being notoriously tight-lipped about its product development plans, it’s not sure how many automakers would be interested in collaborating with the iPhone maker.

This apart, there are a few other difficulties as well. First, there is a dispute within Hyundai Group over which of its two brands — Hyundai or Kia — is likely to build the Apple car.

Also read: All that you need to know about Apple’s new car project

Second, how serious is Apple about taking on Tesla, the leader in the electric vehicles’ segment. Also, does it need an established manufacturer to roll out its electric vehicles?

Apple has a small team of engineers developing drive systems, However, since the works are at a very early stage, any roll out is not likely to happen for at least five years.

In December 2020, a report in The Guardian had stated that the California-headquartered company had plans to launch a self-driving car by 2024. Despite maintaining a lot of secrecy, there have been reports that Apple has been working on Project Titan, its electric and autonomous car vision, to develop its own vehicle technology, since 2014.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PhonePe issues shares worth over Rs 3 lakh to every employee

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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On Friday, Walmart-owned digital payments firm PhonePe launched employee stock ownership plans (ESOPs) for its 2,200 employees, and issued shares worth over $200 million or Rs 1,500 crore to its entire staff across all levels, including freshers.

This was one of the largest ESOPs by a start-up. PhonePe said it has issued a minimum ESOP of $5,000 (around Rs 3 lakh) to every employee.

The Stock Option Plan gives every employee of the payments major a chance to own a part of the company and benefit from its success. Some of the other start-ups to have recently announced ESOPs are Mobile Premier League, Wakefit, ShareChat and Licious.

Usually, ESOPs are given on the basis of seniority, and only with certain profiles and roles that are viewed as critical for a company. For a start-up, ESOPs are a way of attracting talent, as the shares can be later on sold off at a potentially higher value if the company goes public or buys back shares.

Sameer Nigam, the co-founder and CEO of PhonePe, tweeted: ALL 2200+ full time employees at @PhonePe_ own ESOPs in the company now. 1500 Crores worth of ESOPs issued overall. Incredibly emotional and gratifying moment for @rahulchari9 and myself as founders. Shared wealth creation feels awesome. (sic)”

Proud to report that ALL 2200+ full time employees at @PhonePe_ own ESOPs in the company now.
1500 Crores worth of ESOPs issued overall. Incredibly emotional and gratifying moment for @rahulchari9 and myself as founders. Shared wealth creation feels awesome. Karte Ja Badhte Ja! https://t.co/wH2vK3xxAz

— Sameer.Nigam (@_sameernigam) February 4, 2021

The allotment of ESOPs on Friday also coincided with the company completing five years. In December 2020, PhonePe was spun-off from Flipkart as a separate entity, after the digital payment firm had raised $700 million in funding, valuing it at $5.5 billion.

The allotment of ESOPs at PhonePe were over and above regular increments. Last year, despite most of the company’s employees working remotely because of COVID-19, the digital payment firm said that it had been able to turn the pandemic challenge into an opportunity.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How to stop Facebook from snooping on your phone

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Facebook has long been in the thick of an ongoing controversy related to breach of data privacy, and it has been proven on more than one occasion how the social networking website accesses its users’ data far beyond what it needs for basic functioning.

And the snooping is not limited to just activity on the platform but also digital footprints across other recently-visited websites and services, apps that you use on your phone, and the places you drop by at, physically — more so, if you ‘check-in’ at a given location.

While it is not really possible to block the data access entirely, there are a few ways to control how much information the website can log about you. The first and most simple method is by steering clear of the Facebook mobile app. Installing the app entails giving it access to the Wi-Fi networks you connect to, other apps you have, and even the model of phone that you use, apart from all your activities and personal chats on the FB app itself.

If you wish to control how much data the social networking platform is after, go to the ‘apps and notifications’ option in Android settings, click on Facebook and visit the Facebook permissions page to block your phone’s location, contacts, camera and microphone. In iOS settings, the page is listed under Facebook.

Unfortunately, however, even after you switch off the location tracking feature, FB can make out the approximate location that you access from the internet through your IP address. According to FB, that data is needed to keep “accounts secure” and “users verified”. Moreover, since FB has several profitable partnerships with other apps and data brokers, it gets automatic data access from other apps on your phone.

But then FB is a free app, so it’s easy to fall for its give-data-access-to-improve-services trope. However, if you feel a line is being crossed, there’s a simple way out, again — uninstall the app! If you can’t do without FB, sign in through a search engine instead of the app, and keep your activity to a bare minimum — no checking in to places you visit, no tagging photos and absolutely no playing games and quizzes that invariably request data access. Take off elaborate details in your profile information and share posts judiciously.

Try to snip links between the mobile apps connected to Facebook, such as Instagram and WhatsApp, so that you can restrict third parties from accessing your data. It will keep your information secure from potential hackers too.

Facebook may offer more tools to help you limit the data collection, but the reality is that they do little in this regard and more in terms of how the information is harnessed to personalise ads. Among other tricks to curb the snooping are using a VPN to conceal your real location, lock down the privacy settings of your browser to avoid being extensively tracked by marketers, and use your browser’s incognito mode as much as you can.

Meanwhile, Apple will also start rolling out App Tracking Transparency feature by early spring.

Apple’s much-contested privacy feature that will require app developers to seek permission from users to track them for ad targeting will be launched with the next iOS 14 beta.

“We believe that this is a simple matter of standing up for our users. Users should know when their data is being collected and shared across other apps and websites – and they should have the choice to allow that or not,” Apple said in a statement.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

G-Sec accounts for retail investors: Know all about Gilt Accounts and government securities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that retail investors can open Gilt Accounts with the banking and monetary policy regulator, providing them direct access to invest in the primary and secondary government bond market. This major structural reform will help deepen the bond markets in India.

He also announced the launch of ‘Retail Direct’, a platform to allow retail investors direct access to the government securities market.

Till now, investors could buy government securities, So, though it’s not a new investment option for them, buying it directly from the RBI is the new route that they can take.

What is a Gilt Account?

A Gilt Account can be compared with a bank account, except that the account is debited or credited with treasury bills or government securities instead of money. In other words, it’s an account for holding government securities.

Government security, also known as G-Sec, is a tradeable instrument issued by the Centre or state governments, acknowledging the government’s debt obligation. Since they carry practically no risk of default, G-Secs are also called risk-free gilt-edged instruments. They are also safer than bank fixed deposits as G-secs come with a sovereign guarantee. The RBI move will suit pensioners looking for a safe investment option that can give them assured long-term returns.

What is a Gilt Account holder?

A Gilt Account Holder (GAH) can be an entity or a person, including a person residing outside India, maintaining a Gilt Account with a ‘Custodian’ — a primary member permitted by the RBI to open and maintain Constituent Subsidiary General Ledger Account with the Public Debt Office. However, in case the holder is a person residing outside India, the activities related to the operations or maintenance of such an account will be governed by rules and regulations specified in the Foreign Exchange Management Act, 2000.

The Gilt Account Holders permitted by RBI include NBFCs, provident funds, pension funds, mutual funds, insurance companies, cooperative banks, regional rural banks, trusts, corporates, and individuals who are non-NDS members. A Gilt Account Holders is entitled to open only one account.

How to open a Gilt Account?

The RBI will soon issue guidelines for the process to open a G-Sec account, making India one of the few countries where retail investors can enjoy direct access to both primary and secondary government bonds. The platform will be called ‘Retail Direct’.

What does Gilt stand for in accounting?

The term ‘Gilt’ is of British origin. The British called ‘Gilt-edged securities’ to those bonds and securities issued by the government on behalf of His/Her Majesty’s Treasury, whose paper certificates had a gilt edge. In India, the term is used for government securities such as Central Government loans and State Government loans because they carry no risk. In the US, they are known as US Treasury securities

What are Gilt securities?

When the Central Government requires funds, it approaches RBI. The RBI, in turn, issues government securities equivalent to the required amount, and offers a fixed rate of interest, with maturities spanning from one year, three years, five years or 10 years. Funds managers or individuals subscribe to these securities. Basically, to provide loan to the government, the RBI issues government securities to collect the required funds.

Though they have a low rate of return, they are low on risk. Being government securities, they are sensitive to interest rate changes. So, the best time to invest in Gilt funds is during a falling interest rate regime. Gilts often respond strongly to political events.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Entertainment Q3 results: Profit rises to Rs 400 crore, but shares fall 14% a day later

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Zee Entertainment on Thursday released the results for their third quarter ended December 2020. The company reported strong earnings, with a consolidated net profit of Rs 398.01 crore.

In the year-ago period, Zee Entertainment had reported a net profit of Rs 348.60 crore, the company stated in a BSE filing.

However, during Friday’s (February 5) early trade, shares of Zee Entertainment Enterprises Ltd (ZEEL) dropped 14 per cent. Nifty Media sank over 4.5 per cent in a volatile morning session, with ZEEL dragging the sector. Around 11.50am on Friday, Nifty Media was trading at 1,723.20 down 78.05 points or 4.33 per cent, after touching a low of 1,704.45 during intraday trade so far.

Analysts from Kotak, while tracking the Q3 results of Zee Entertainment, have ruled out earnings upside despite improving macro because the “management has hinted a downward revision of FY2022 margin guidance citing the need to step up investments in TV/OTT”. They also said that the company’s decision to ramp up its in-house movie productions to around 30 to 40 movies a year from the earlier 10 to 12 movies annually, and the Sugarbox CAPEX would “alter capital intensity and drag cash flows”. Zee invested Rs 522 crore in Sugarbox, its tech subsidiary, last year.

Kotak has also stated that the “stock has run up and does not merit further re-rating, given the structural risk to core business and lacklustre progress of ZEE5”.

The company’s consolidated total income during the quarter under review stood at Rs 2,756.93 crore, a rise of 30 per cent compared to the year-ago period, when the figure was at Rs 2,119.60 crore. But the company stated that the results for the quarter and nine months ending December 31, 2020, were not comparable with the year-ago periods because the impact on the results for the quarter and nine months ended December 31, 2020, was primarily due to restrictions caused by COVID-19 on business activities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Motilal Oswal India Strategy: Big beat and upgrades in Q3FY21, Nifty EPS revised up by 2-4% for FY21/FY22

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Domestic brokerage firm Motilal Oswal stated in its India strategy report that the Q3FY21 earnings season has maintained the momentum of the Q2FY21 season, boosted by big beats and upbeat management commentaries reported across sectors.

While the Nifty profits for 30 companies that posted their results have grown 23 percent year-on-year (YoY), 111 companies in the MOFSL Universe, registered profits of around 32 percent YoY.

Driving the beat was sharp demand recovery, which was seen after the economy opened up. This coupled with continued cost-saving initiatives and the festive season boosted demand across various sectors.

Also read: IT sector Q3 earnings suggest better performance ahead; analysts remain optimistic

Metals and cement, too, reported better-than-expected performances. Top IT companies delivered robust performances and reported another quarter of solid beats.

According to a CNBC-TV18 report, the top four Indian IT service companies — Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro — reported a sequential growth of 3-5 percent in constant currency (CC) terms in Q3FY21, boosted by broad-based growth across geographies and verticals.

The Banking, Financial Services and Insurance (BFSI) sector, especially large-cap banks, saw robust operational delivery, with over 70 percent provision coverage ratio (PCR) and minimal restructuring of their loan books.

The restructured portfolio remains at 0.25–0.5 percent of the total loan book – much lower than envisaged. The momentum also improved with disbursements in many business segments, such as tractor, housing, and gold loans exceeding pre-COVID-19 levels.

Also read: Budget unveils opportunities; earnings to guide path going ahead

The report also stated that a pro-growth budget further supplemented the earnings season, “with the focus being on capital expenditure and infrastructure investments, multi-year fiscal expansion, several structural initiatives, and stable taxation regime”.

The domestic brokerage firm stated that it expected “the earnings momentum to sustain with further revival in the economy” as the number of COVID-19 cases are contained.

“The cyclical sectors are driving incremental earnings. Government’s focus on fiscal expansion and capex spending augurs well to revive the long-anticipated private investment cycle,” added the report.

There has also been a 3.9 percent / 2.0 percent upgrade in FY21/FY22E Nifty EPS estimates.

Senses closes above 50k

On February 3, 2021, for the first time in its history, Sensex closed above the psychological mark of 50,000. The Motilal Oswal report stated that while the first 25,000 took 28 years, Sensex reached the second 25,000 milestone in just seven years. The index has, indeed, come a long way from its beginnings in 1986, when it traded at 549.

The report stated that during its 35-year journey, the index mirrored the economic growth of the country “from the pre-liberalization phase” to “one of the top economies of the world”. On the way, though it had to face hurdles such as the financial crisis, dot com bubble, taper tantrum, COVID-19 etc, it came out “triumphant”.

Also read: Current market cycle similar to 2003-2007 phase, says Morgan Stanley’s Ridham Desai

The report attributed the “sprint” to 50,000 from the pandemic lows of 26,000 last year, to benign global liquidity, better containment of coronavirus cases, sharp recovery in corporate earnings, and a market-friendly budget. It also stated that during the journey from 549 to 50,000, the Sensex has delivered 13.6 per cent CAGR returns.

The best year in terms of annual returns for the Sensex, according to the report, was 1991 when it delivered 82 percent gains. In contrast, 2008 — the year of the global financial crisis — was its worst with the Sensex ending the year with a 52 percent decline.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow