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Infosys trying to regain its market share

Quarterly net profit posted by Bengaluru-based Infosys is far below the expectation of most of the analysts. Recent frequent changes in the top management are impacting the ability of Infosys, India's second largest software service exporter. As per media reports, Infosys is trying to regain its market share and is expecting a rise in revenue to $20 billion by 2020 from $8.7 at present.

Infosys Stock Nosedives over 6 Per Cent after Reporting Decrease in Dollar Revenue Growth

Even after reporting a net profit of Rs. 3,097 crore and total sales of Rs. 13,411 crore during fourth quarter of 2014-15 fiscal, revenue of Infosys in constant currency during Q4 of 2014-15 decreased by 2.4 per cent. The quarterly report published today is a disappointment for the market as rivals of Infosys including HCL Tech, TCS, and Wipro reported dollar revenue growth of 2.7 per cent, 1.6 per cent, and 1.2 per cent respectively. CEO of Infosys, Vishal Sikka, said that the Q4 result were disappointing considering the fact that the company did well in the first three quarters. Infosys Ltd. stock today nosedived by 5.98 per cent or 126.80 points to 1,995.20 points at 3.51 pm IST.

Cairn India Posts Q4 Loss of Rs 241 crore

Cairn India, which produces 1/5th of India’s total oil, posted a quarterly loss of Rs 241 crore during Q4 of 2014-15. This is the biggest loss of the company and the first quarterly loss registered in the last seven years because of foreign exchange loss, sustained low oil price, and one-time impairment loss in Sri Lanka. Poor performance of the company led to its stock opening at a 52-week low level of Rs. 202 per share today. However, the stock regained some of its lost shine with progress in the trading session. At 2.11pm IST, Cairn India Limited was trading at 216.40, 1.31 per cent up from previous close, at NSE.

Yes Bank to Raise FII and FPI Stake from 49 Per Cent to 74 Per Cent

In a filing to Bombay Stock Exchange, Yes Bank said that the Board of Directors of the company have approved increasing share holding limit of FIIs and FPIs from the existing 49 per cent to 74 per cent of the bank’s paid-up share capital. Though the Government during 2015-16 Union Budget said that they are going to do away with the distinction between different kinds of foreign investments and replace it with a composite cap, amendments to applicable laws as well as notification for increasing upper limits of investments by FPIs and FIIs are yet to be done.

GST Faced Hurdle during Empowered Committee Meeting

During the empowered committee meeting held on 22 April, many state governments have asked the Union government for increasing the time period from the proposed 2 years for paying up one per cent additional tax on the proposed national GST (Goods and Services Tax). Sources say that it has been decided that the time period can be increased if 2/3rd of the empowered committee agrees. Chairman of the committee, K M Mani (Finance Minister of Kerala) told media that some states have expressed their concern over compensation of Central Sales Tax and also vouched for compensating them for the loss, from implementation of GST, for ten years or more than that.

Indian Railways to Raise up to $1 Billion Through Offshore Rupee Bonds for Financing Railway Infrastructure

After RBI gave permission to domestic companies for raising offshore bonds in rupees, Indian Railways Finance Corp is going to become the first ever domestic issuer of such bonds as it plans of raising up to $1 billion through offshore rupee bonds. Rajiv Dutt, Managing Director of IRFC, said that they have not yet made a final decision about the total amount of money they want to borrow from offshore market though they have board’s approval of raising $1 billion from offshore market. Indian Railways Finance Corp plans to raise $2.81 billion or Rs. 17,655 crore from domestic and foreign markets, which will be utilized for renewing and building Railway infrastructure.

FIIs and FPIs belonging to Countries with which India has DTAAs can Approach Tax Officials for Claiming Tax Benefits

In a huge relief to the Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), Union government has asked them to present facts of Double Taxation Avoidance Agreements or DTAAs to the tax officials for avoiding paying up capital gains tax and consequently Minimum Alternate Tax or MAT. Revenue Secretary, Shaktikanta Das, told FPIs and FIIs during a conference call with them (addressing their concerns on MAT amounting to a total of Rs. 40,000 crore) that the entities belonging to the 85 countries with which India has DTAAs in force can furnish facts for claiming tax benefits. However, entities belonging to countries with which India doesn’t have DTAAs can approach court for getting reprieve.

BSE Sensex and NSE Nifty Close in Green after Five-day Losing Streak

Both BSE Sensex and NSE Nifty performed well today, ending a five-day losing streak. While Nifty closed well above psychological level 8,400 at 8429.70, up by 51.95 points or 0.62 per cent, BSE Sensex was up by 214.09 points or 0.77 per cent to close at 27890.13. The sectors that performed well are FMCG, capital goods, banking, and pharmaceuticals. Sun Pharma that dipped by more than 10 per cent yesterday as Japanese Drug Maker Daiichi sold all its stocks it received during merger of Ranbaxy with Sun Pharma, today increased by 1.6 per cent. Some of the major gainers at Nifty are ACC, Yes, Bank, Larsen & Toubro, Hero MotoCorp, Axis Bank, and others.   

Yes Bank's Q4 Net Profit Increases by 28 Per Cent

Fourth quarter report for 2014-15 FY published by Yes Bank shows that net profit of the company increased from Rs. 430 crore (Q4 2013-14) to Rs. 551 crore (Q4 2014-15), an increase of 28 per cent. As per reports, net profit of Yes Bank for entire 2014-15 fiscal increased to Rs. 2,005 crore from 2013-14’s Rs. 1,618 crore, an increase of 24 per cent. The Board of Directors has decided to give Rs 9 per equity share as dividend and also raise funds to the tune of $1 Billion through issuance of equity capital in one or multiple tranches. Capital Raising Committee will decide whether the fund will be raised through American Depository Receipts (ADRs)/Global Depository Receipts (GDRs), Qualified Institutions Placement (QIP), or other appropriate modes.

Arun Jaitley to Hold Second Round of Discussion with IT Officials

Arun Jaitley, Union Finance Minister, is all set to hold another round of meeting with the tax officials to simplify the procedure and take a final call on new IT Return tax forms, media reports said. Jaitley already had a first round of meeting with the tax department officials, just after returning from Washington recently, on the issue of new forms of Income Tax Return. IT Return forms, issued by Central Board of Direct Taxes, faced criticism as it allegedly sought too many detailed information (foreign trips and bank accounts), making it cumbersome. IT department put a hold on issuing new ITR forms after Jaitley called up Revenue Secretary Shaktikanta Das from Washington and asked him not to proceed on the same.   

Wipro's Total Income and Revenue Increase in Q4 but Profit Slides by 9 Per Cent

Wipro Limited’s quarterly result published in 21 April show that total income of the company increased by 2.4 per cent and total revenue to Rs. 12,140 billion in the fourth quarter of 2014-15 fiscal on a quarter-on-quarter basis. However, the profit has slid significantly in the last quarter of FY 2014-15 to Rs 2,141.6 crore on a quarter-on-quarter basis, which is a fall by around 9 per cent. As per Thomson Reuters data, on an average the analysts expected the company to report a profit of Rs. 2,180 billion and Wipro certainly missed the market expectation. Rishad Premji, Azim Premji’s son, has been inducted in the Wipro board and he will assume office in 1 May, 2015.

Parliamentary Panel Stresses on Enlarging Price Control Ambit

The Standing Committee report on Chemicals and Fertilisers, which was tabled in the parliament on 20 April, recommended bringing in all medicines including the life saving ones under price control so that all of them are available in all corners of the Indian market at affordable cost. The report found it surprising that National List of Essential Medicines doesn’t include all medicines but only 509 formulation packs. It observed that “all medicines are essential” and recommended enlarging the scope of price control. The Committee urged the government of incentivising domestic bulk drug industry and at the same time discourage import by Indian pharmaceutical for making “Make in India” a success.

Sun Pharma Stocks witness Steep Fall after Japanese Drug Maker Daiichi's Complete Pullout

As news of Japanese drug manufacturer Daiichi Sankyo Company’s board of directors giving nod to selling “entire or part of its holding of Sun Pharmaceutical shares” (which it received after Ranbaxy’s merger with Sun Pharma) hit the market, Sun Pharmaceutical Industries Limited plunged by 10.83 per cent today from previous close. The stock that closed yesterday at 1043.80 is now trading at 949.40, a fall of 94.40 points or 9.04 per cent, at 11.50 am IST. In Sun Pharma, Daiichi had 21.49 crore stocks. With the colossal 24.42 crore trading volume at NSE, it seems the Japanese drug manufacturer has completely pulled out from Sun Pharma.

Paytm to Enter Online Grocery Market

Payment platform Paytm, backed by Chinese eCommerce behemoth Alibaba, is all set to enter online grocery market. As per reports, the new business vertical would be headquartered in Bengaluru. With this online initiative, Paytm will be pitched in direct competition with grocery retailing initiatives of Flipkart. Paytm will use part of $575 million fund, infused by Alibaba through affiliate Ant Financial Services, to start the new grocery retailing. Founder and CEO of One97 Communications, which runs Paytm, Vijay Shekhar Sharma, said that his company is currently developing a separate application for grocery business. It is learnt that Paytm is going to launch the online grocery initiative with a team of 20 people.

CII Chief backs Government Claim of Rs. 40,000 crore MAT from FIIs and FPIs

Newly appointed President of Confederation of Indian Industry (CII) has reiterated the opinion voiced by Union Finance Minister Arun Jaitley a few days back that India is not a “tax haven”. He went on to stress on the fact that government has done the right thing in claiming Rs 40,000 crore from the FIIs (Foreign Institutional Investors) and FPIs (Foreign Portfolio Investors) as tax dues (claimed by Income Tax department towards MAT or towards Minimum Alternate Tax). He also added that government has pledged to end retrospective tax but that does not mean they will not collect the due tax.  

TCS says No Change in Visa Norms Despite of Increasing India-US Bonhomie

Tata Consultancy Services has dropped a bombshell by saying that increasing ties between India and the USA are yet to be realized by the domestic IT companies that depend heavily on US market. Ajoy Mukherjee, global HR head of TCS, has said that enhanced bonhomie between the two nations have not translated into benefits at this point of time as no changes in rules have taken place regarding H1B and L1 visas. He further stated that the net requirement of professionals, to be sent by the companies to the US against the quota, exceeded by 65,000. However, he hoped the situation would get better in the coming times.      

Union finance minister Arun Jaitley appeals to make coal greener

Union finance minister Arun Jaitley requested the international community to generate "greener technologies" for delivering "clean coal". He added that clean coal is required to control climate change and damage. Jaitley also said that India is committed to tackle climate change problem, but richer partners must devote their resources to develop clean technologies.

CBDT eliminates the need to post paper acknowledgment of I-T returns

The Central Board of Direct Taxes (CBDT) added an ease to taxpayers as they no longer have to send the paper acknowledgment by post if they have Aadhaar card. As per a new authentication system, the document will be authenticated by an Aadhaar-based electronic verification code via a One Time Password. A new column in the I-T returns for 2015-16 has been introduced by the IT department. 

TCS announces One-Time Bonus of Rs. 2,628 crore for its Employees

IT company Tata Consultancy Services's move to pay one-time bonus to all eligible employees, on the occasion of completing 10 years of its first ever IPO listing will cost the company Rs. 2,628 crore and hit its bottomline during Q4 of 2014-15. As Per IFRS standards, net profit of TCS during Q4 2014-15 was Rs. 3,858 crore, a fall of 29 per cent. In fact, the announced Q4 result also made the TCS stock bleed in the stock market. At 3pm IST, Tata Consultancy Services Limited stock was trading at 2478.60, a fall of 104.20 points (which is a fall of more than 4 per cent).

Cameco to Start Supply of Uranium to India from Second Half of 2015

Cameco, the Canadian company that signed an agreement with India for supplying uranium, is all set to deliver uranium to India from second half of 2015. Tim S Gitzel, President and CEO of Cameco, said that they will deliver uranium as per schedule and as agreed in the agreement signed by Cameco and India’s Department of Atomic Energy during Indian PM’s Canada visit. Reports say that according to the contract, Cameco is going to supply uranium over the coming five years that will cost India 350 million Canadian dollars. Tim S Gitzel also told media that Canadian apprehensions on India’s usage of uranium have become “history”.