Companies and Markets

Companies & Markets

Focussed on making UberEATS profitable in India: Uber

Cab hailing app Uber today said it is committed to making "serious investments" in its food delivery offering, UberEATS in the Indian market but is also mindful of ensuring profitability of the business.

The company, which introduced UberEATS in India six months ago, has already expanded the service to seven Indian cities including Mumbai, Delhi-NCR and Hyderabad.

IPOs are a rage, but retail participation is minuscule

Despite the ongoing boom in the primary market, the retail participation in initial public offerings (IPO) is woefully low in India. An analysis of IPOs that have hit the market in 2017 so far shows that less than 20 lakh retail investors are applying for an issue.

This is a miniscule number considering that India has close to three crore demat account holders. This means that only 6.66 per cent of the investing community is applying for IPOs.

10-yr bond yield rises to 7%; hopes of RBI rate cut diminish

For the first time in a span of nearly 14 months, the 10-year bond yield rose to 7.05 per cent on Tuesday. A steady uptick in inflation and rising global crude prices made investors jittery and they fear the Reserve Bank of India (RBI) may shift its stance from neutral to tightening which led to hardening of yield.

Govt seeks interim dividend, but CPSEs may not oblige

The government has sought interim dividend from profit-making CPSEs to guard against the fiscal deficit breach in view of a slowing economy and slow growth in tax receipts due to GST rollout. Cash-rich CPSEs such as Coal India, ONGC, NTPC, BPCL, IOC, NTPC, MMTC and NMDC are among the top notch CPSEs which have been sounded out to declare interim dividend as the government looks to raise Rs 15,000 crore onwards from these companies to shore up its increasingly fragile finances.

Interest rate on PPF may be slashed to 8.50% for this year

Millions of EPFO subscribers may have to take a hit on their earnings from provident fund deposits as the fund manager has decided to seek a cut in interest rate to 8.5 per cent.

The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) will meet on November 23 to consider a reduction in interest rate for fiscal 2017-18. The EPFO paid 8.65 per cent interest last year.

The decision to cut the rate has come at a time when returns of other deposit schemes are also low. A steady rise in food inflation is eroding their savings as well.

Vodafone-Idea will have to get DoT, NCLT nod for tower deal

Vodafone India and Idea Cellular will have to get no-objection nod from the telecom department and the National Company Law Tribunal (NCLT) for selling stake in their respective tower businesses as the deal involves cash inflows into their balance sheets, official sources said.

Both Vodafone and Idea are already in the midst of a merger agreement and their decision to undertake third party sale of their respective tower businesses will need vetting by DoT and NCLT.

Funds growing at more than 30-35%

N S Venkatesh, who took over as the chief executive officer at the Association of Mutual Funds in India, or Amfi, late last month spoke to Payal Shah of TickerNews Service on varied topics ranging from outlook for the mutaul fund industry to the bonds market. Venkatesh, a career banker with over two decades of experience in treasury and international banking was also a member of RBI technical advisory panel on money markets, securities market & forex in 2011-16 when he also chaired the Fixed Income, Money Markets & Derivatives Association.

Banks seen driving earnings recovery in 2018

The country’s largest mutual fund manager ICICI Prudential is betting on banks to drive a much-awaited recovery in corporate earnings in 2018, as additions to their record pile of sour loans slow after surging in the past two years.

Banks will also benefit from an expected revival in economic activity likely to drive capital expenditure by companies and hasten lending growth that has hit multi-decade lows, chief investment officer Sankaran Naren said at the Reuters Global Investment 2018 Outlook Summit.

Rationalisation helps Medimix grow revenues, profits

Can rationalisation of distribution network increase revenues along with profits? Chennai-based Cholayil saw Medimix, its ayurvedic bath soap brand, becoming profitable and its revenues growing faster after it brought down its presence in non-south markets to less than one-fifth. 

The company took a decision to rationalise its presence in 500 districts in north, east and west markets last year.

The presence of Medimix was withdrawn from those districts, which did not qualify as per the benchmarked sales target.