The ITC reported on Friday 5.59% YoY increase in September quarter net profit of Rs 2,640 crore. The company had reported Rs 2,500 crore net profit in the same quarter of last year. The firm also reported 3.1 percent increase in profit on the QoQ basis. The company’s income sharply slipped for the September quarter to Rs 9,760 crore from Rs 13, 491 crores. In this period, the value-added tax was replaced by the Goods and Services Tax.
The company added that its sales from cigarette segment slipped to Rs 4,554.21 crore for the September quarter from Rs 8,528 crore in the corresponding quarter of last year. Commenting on the hotel business, it enjoyed a smooth growth in revenue at Rs 300 crore, whereas income for agribusiness rose to Rs 1967.41 crore.
Saying that “consumer protection” is one of the priorities of his government, PM Modi said on Thursday that sterner guidelines are coming in the future to protect people from misleading advertisements. While speaking at the International Conference on Consumer Protection for East, South and South-East countries in New Delhi, PM Modi said that “The government prioritizing consumer protection is in line with our resolve of New India. We will change it to consumer prosperity on the way ahead”.
The PM also said that his government is working on a new consumer protection, which would put out sterner guidelines on advertisements and make sure that people are not misinformed. “Stringent provisions have been proposed against misleading advertisements. A Central Consumer Protection Authority with executive powers will be constituted for quick remedial action,” PM added. Replacing the old Consumer Protection Act 1986, the new law will in its place combine the revised 2015 UN guidelines on consumer protection. The PM Modi in his address at the conference gave credit to the new Goods and Services Tax (GST) regime for giving the country “a new business culture”.
While stressing on the introduction of the GST, PM said that now consumers are aware of the amount of tax going to the Centre and state, and won’t be cheated. PM Modi also said that it would benefit poor and middle-class consumers and they’ll be the biggest winners of a new indirect tax regime. “GST will boost competition between companies, which will decrease prices of goods, in turn benefiting poor & middle-class consumers. In any business, consumer satisfaction is of utmost importance,” he added. Paying attention to the Vedas, PM said that “Atharva Veda talks about fair trade practices”.
As the government is keeping its mouth shut about the pay hike, a media report suggested that the much-awaited salary hike suggested by 7th pay commission may take place after the assembly elections declared by the Election Commission recently. According to the report, the government will execute the pay hike under 7th Pay Commission following the elections concludes in Himachal Pradesh and Gujarat in December. The government is planning to give salary hike to employees in January as the counting of both the polls will be held on December 18.
As per the report, the government will evaluate the economic slowdown due to GST and demonetization into attention before implementing the increase. It is still not clear that how much the government will hike as of now. The government wants to increase the minimum basic salary to Rs 18,000, whereas the government employees wanted minimum basic salary to be Rs 26,000. The government, on the other hand, offered a Fitment factor 2.57 times, but the employees demanded a Fitment factor 3.68 times. The government is expected to find a middle way – it could make the Fitment factor 3 times and the minimum basic salary Rs 21,000, as per the reports.
On the other hand, the government is going through a tough time because of economic slowdown (GST and demonetization) and fulfilling the demand of employees may add extra pressure on the exchequer. At the same time, a report further added that the government may not pay the arrears and just hike the employees’ salary. A source told The Sen Times, “The financial advisers of the government believe it could be tough to give arrears of the hike in pay as the government has been worried after the April-June GDP growth slipped to a three-year low of 5.7 percent but the government believes it will bounce back in the second quarter. Among others, it observed that this year’s fiscal math is already stressed as public spending was front-loaded to offset slower private sector participation and cushion the impact of GST roll-out.”
In a power packed press conference today the NaMo government at the centre lashed out all the opposition clamours over the structural reforms in the economy taken up by the Modi government
This conference comes at the heels of the latest announcement by Modi in Gujarat where he boldly declared that his government will not succumb to any pressures and continue with its reform agenda.
The Finance Minister also highlighted that the economy is boosted by strong macroeconomic credentials. The conference was briefed by top-level bureaucrats through a power point presentation where the key indicators were used to highlight the future trend of the economy leading to a strong growth path.
The Mr Subhash Garg, who made the presentation accepted that there has been a downward trend in the economy due to the reforms that have create a discomfort in the smooth functioning of the industry. This was also acknowledged by the Finance Minister.
Further the sectoral growth in the Indian markets was highlighted where automobile, pharmaceutical, banking and insurance sectors have been the top gainers. The withdrawal of FII/FPI from the markets was again shown to take an upward trend and the overall markets were also deemed to be stable.
The economy showed signs of growth which is being evidently asserted by the fact that industry is getting used to the new normal, which is the application of GST.
The government through this press conference has detailed that there will be more push to the reform agenda. Highlighting burden on the Centre’s spending o the states after the GST, the fiscal deficit which had arisen to 93% i the quarter ending June-2017, the current deficit will be less than 2%, as the government is sticking to its figure of 3.2%. The strong fiscal deficit target is based on the ever-growing forex reserves which are pegged at USD 400 billion.
Despite the front-loading of expenditure of the states the Finance Secretary Ashok Lavasa said that total government expenditure so far this fiscal has been Rs 11.47 lakh crore out of Rs 21.46 lakh crore budgeted for this financial year.
With an added thrust on the reformist agenda, the IMF’s recent downgrade of the Indian economy has been revised to reach 8% soon. The government has also announced a revision of the MSP at which Pulses, Oil-seeds and Grains are procured.
An important announcement made was regarding the waiving of penalties on delayed filing of GST returns for July August. This will have a trust building effect on the trading community and the industry by and large.
The biggest announcement has been a re-capitalization exercise aimed at healing the public sector banks in the country with a burden of non-performing assets and bad debt to the tune of INR 2 lakh crore.
The amount that will be pumped into the state-run banks will be pegged at INR 2.11 lakh crore which implies giving the psbs a new lease of life. The total amount will be funded from two primary sources wherein 11.47 lakh crore will be realised from recap bonds while the remaining 76,000 crore will be raised from budgetary support and market borrowings.
The Finance Minister also afforded a dart at RaGa’s Gabar Singh Tax remark by saying that the transparency will never be preferred by people who are used to 2G and Coal scams.
The overall picture presented by this press conference is optimistic and the government seems to be committed to reach out to the stakeholders of the economy to have faith and lend their support. The recap exercise will bring more confidence to the lenders and the credit cycle will again spin into motion as expected.
Infosys today reported a net profit of Rs. 3,726 crore for the July-September quarter, Its India’s second-biggest IT outsourcer, it has the power of beating the Street’s estimates. Indian software services company Infosys Ltd trimmed its revenue forecast for the year despite reporting a surprise rise in quarterly profit, But the outsourcer cut its growth guidance for the year, disappointing the Street.
the Bengaluru-based outsourcer after co-founder Nandan Nilekani returned at the helm as chairman in August has announced their first quarterly result. Infosys reported a net profit of Rs. 3,726 crore for the quarter ended September 30, 2017, up 7% sequentially and 3.4% year-on-year. Analysts on average had expected Infosys to post:
A net profit of Rs. 3,523 crore, according to Reuters
Revenues rose 2.9% sequentially to Rs. 17,567 crore
Infosys said, At the same time keeping undone its growth guidance for the year, revenues are expected to grow 5.5-6.5% in constant currency terms in the current fiscal years, compared to 6.5-8.5% growth as guided earlier.
Interim CEO and Managing Director, UB Pravin Rao said that “Our main focus is on executing on the theme of software-enabled services and on accelerating the growth of our new services portfolio.”
“We responded quickly to the management and Board changes through proactive communication with all stakeholders minimizing any negative impact to the business and allowing us to deliver growth across all our large industrial units, During the quarter.”
Infosys’ revenue rose 2.9% in dollars sequentially to $2,728 million dollars.
At the same time Reliance Securities had estimated Infosys’ Q2 revenue at $2,732 million.
And in the June quarter, Infosys had reported dollar revenue of $2,651 million.
Infosys’ revenues grew 2.22% in a sequence, at constant terms, At the same time Reliance has 2.4% of sequential growth of securities had estimated upon its constant current revenue.
Its EBIT margin or operating margin came in at 24.2% vis-a-vis 24.1% in June quarter
Reliance Securities had estimated Infosys’ EBIT margin at 23.3% for the Q2
Infosys CFO MD Ranganath said, “Its the ultimate decision, Our focus on improving operational efficiencies enabled us to deliver stable margins in the quarter and at the same time provide compensation increases and higher variable payouts to our employees. The outreach has been initiated and the progressing was well in the process of identifying the next CEO and shareholder consultation.”
Today 1.4% Infosys, closed there share at Rs. 926. The outsourcer announced its results today after the market closing. Infosys shares have under-performed the broader indices this year, falling nearly 8%, as compared to a gain of 25% in the broader Nifty.
The Diwali, the festival of festivals when almost every Indian uses all his economic might to celebrate and purchase most of the items on their shopping list, is about to witness a weak buying spree by the people.
The season of festivities is here and the markets of the economy seem to be closing down to the enthusiasm of the nation. The markets possibly have impacted the enthusiasm for the festivities.
The Dhanteras, which was yesterday is the occasion to mark the opening of the doors of the Indians to prosperity and wealth. This day has been marked as one of the days with the highest sales recorded in the country and marks the week-long celebrations.
This year as the economic growth has been keeping slow, due to several macro factors affecting the growth of the economy, there has been a downward trend in the key sectors this year. The downward trend discontinued for 6 days prior to the Dhanteras, and now the Sensex and the Nifty have taken a deep dive from the high which was seen as a moment of growth.
Recently, Finance Minister, Arun Jaitley while attending the IMF-WB summit at Chicago, hailed the moves taken by the Centre to re-invent the economy as a step in the right direction. He also said that the Government never intended to wait for a time when the economy would have in a trough and would have then give the economy its due for an overhaul.
The overhaul exercises of the government which include demonetisation exercise and the GST . These moves have not inspired confidence in the investors so far and the Foreign Institutional Investors have pulled out heavily from Indian markets as the Indian markets are one of the world’s most conservative markets. The Indian investor is often described as the emotional investor.
The rigours of muscle flexing being carried by the Income Tax department have kept the buyers away from the markets.
The day before Dhanteras saw a spike in shares of automobile industry and banking sector, alongside the FMCG.
This Diwali, Gold has lost its shine as there was sluggish buying of Gold despite the relaxation of norms by Government. This move saw a relaxation in providing credentials while buying Gold more than 50K; this move was taken after a series of protests and lobbying by the Sarrafa community.
The Sensex on the eve of Dhanteras slipped to a negative, which has gained by 13.99 points while the Nifty has gained a slight pace to reach 8.22 points.
The growth is not taking pace and the Diwali is set to become mild in respects of festivities considerable scaling down due to lowered buying power of the masses.
The lowering of buying power is a direct outcome of the push in the economy to create a direct tax based economy which has ushered in a surge of taxpayers, and a heavy crackdown on shell companies giving a tough time to unchecked subversive business practices.
The Diwali light seem to be simmering due to lowering of incomes and unemployment which is prevalent and the push for transparency keeping the spends of the public in check.
There is no direct outcome of the DeMo but combined factors with GST implementation seem to have slowed down the growth of business, where small and middle-sized businesses struggle to adapt to new taxing system.
The official inflation figures and wholesale consumer price index is keeping at a terminal low of 4%, the markets still seem dizzy.
The combined effect may be taken to be a direct outcome of the cleanliness moves taken by the government to clear the economy of the ills for long.
Arun Jaitley further added that they could not have waited for a time when the economy was in a lull and then move ahead with reforms.
IMF Chief Christine Lagarde has praised the moves and has assured that Indian economy will become one of the most competitive economies in the world. This coincides with the ‘three-quarter’ trial time by the Centre where they assure that the economy will pick up.
The government is expected to increase the minimum pay afar the recommendation of the 7th Pay Commission for its employees next year. Hike in minimum pay to Rs 21,000 from Rs 18,000 recommended by the 7th Pay Commission and approved by the Cabinet, the government is studying to increase the minimum pay. Under the 7th Pay Commission, the government is expected to raise the Fitment factor from the ongoing 2.57 times to 3.00 times.
The Cabinet may take up the matter of hike in minimum pay in January 2018. The National Anomaly Committee (NAC), formed by Union Finance Minister Arun Jaitley to keep a vigil into the anomalies in the 7th Pay Commission recommendations’ implementation, probably endorse a first-time 17 percent rise over Rs 18,000 minimum pay approved under the 7th Pay Commission, as per the reports. According to the reports, the government has given a signal to proceed to the NAC for an increase in minimum pay with Fitment factor of 3.00 times. The government, on the other hand, is not expected to pay arrears on higher minimum pay because the government doesn’t want to put an extra burden on exchequer by releasing arrears.
Reportedly, the Finance Minister Arun Jaitley had promised representatives of the central government employees that minimum pay would be increased beyond the 7th Pay Commission. “Since the Finance minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, efforts would be made to fulfill the same,” a Finance Ministry official was quoted as saying. The NAC is expected to submit its report on minimum pay soon, which will be later examined by the Empowered Committee of Secretaries and the Department of Expenditure. The 7th Pay Commission, however, had recommended a 14.27 percent in basic pay, which was the lowest in last 70 years. After this, the central government employees started demanding the rise in minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times.