Telecom major Bharti Airtel on Wednesday reported a 29 per cent decline in consolidated net profit at Rs 512 crore (Rs 5.12 billion) for the quarter ended September 30, 2013, mainly on account of increase in finance cost and forex losses due to rupee depreciation.
The new CEO's next challenge is to grow margins.
Jio's100-million subscribers target appears an uphill task in the next one month, believe analysts. Also, the existing subscribers are already witnessing slowdown in data speed thanks to the high traffic.
Reliance Industries Ltd is expected to invest Rs 30,000 crore (Rs 300 billion), of the total Rs 70,000 crore (Rs 700 billion) announced, in its telecom arm Reliance Jio Infocomm over the next two years, credit rating firm Moody's said on Monday. The investment in the telecom business is a credit negative for RIL because RJio will not generate any EBITDA (an indicator of cash flows) for at least next 12 months, it said. Moody's added however that RJio will be a formidable competitor in the sector making it a credit negative for top telecom operators already in the field. "Based on RIL's March 2014 annual report, we estimate that it has already invested about Rs 400 billion (Rs 40,000 crore) in Reliance Jio, and we expect RIL to invest the next Rs 300 billion in Reliance Jio over the next two years," Moody's Investors Service said in a statement. RIL recently announced that it will launch commercial 4G telecom service of RJio in 2015 entailing investment of Rs 70,000 crore. RIL has said that RJio will initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India and the target is to expand this to over 600,000 villages. Moody's said RJio will be a "formidable competitor in India's telecom sector" as it will enter the business with financial muscle. RJio's entry into highly competitive telecom sector is also credit negative for incumbent mobile operators and market leaders Bharti Airtel and Vodafone India because "it will undoubtedly result in intensified competition that will lead to declines in average revenue per user and margins". But, it also said that strong spectrum holding of incumbents; existing large subscriber-bases and well- established brand equity; offering 2G and 3G services (apart from 4G services being launched) as well as marketing and distribution architecture mitigate much of the near-term competitive threat from Reliance Jio for them. "Furthermore, given issues of language and literacy, large parts of rural India remain a substantially voice-based market where near-term demand for 4G services may be muted," Moody's said.
Nature's Basket is changing its offering. Its new strategy zeroes in on pushing joint ventures, focusing on private labels and reentering Delhi.
Shares of IT major TCS on Friday tumbled over 8 per cent after its September quarter numbers failed to meet market expectations.
The new obsession on cost control is powered by the company's 'GEAR' (Generate idea, evaluate, action and realise the idea) programme.
In the broader market, the BSE Midcap was down 0.2%, while BSE Smallcap fell 0.1%.
A four-member panel of secretaries is likely to submit its report on a new gas pricing mechanism to the government by Wednesday.
The news that Welspun has run into trouble with one of its biggest US-based clients has stressed its suppliers and investors alike
The venue for Saturday's meeting was shifted at the last minute from the headquarters of the India Banks' Association in Cuffe Parade to avoid media glare.
Bank shares were the top losers along with index heavyweight RIL
Ahead of RBI policy meet, India Ratings said an interest rate hike of 0.50 per cent in the remaining part of the fiscal will throw the BSE 500 companies into a quandary.
The search for that one stock that transforms a virtual beggar like me into a profligate millionaire might be over, says Mudar Patherya.
Launched this April, the FCG business will end the year with a turnover of Rs 500 crore
UBS said RIL's $10 billion petchem capex by 2016 will drive 12 per cent volume CAGR.
Analysts expect the company to post 6.2% sequential growth in rupee revenue.
Global rating agency Fitch on Tuesday said the imminent entry of Reliance Jio into the telecom space will see a likely 20 per cent fall in data tariffs, but will not have any impact on the credit profile of the top four incumbents in the medium term as their revenue is on an uptick on rising voice tariffs and improving regulatory environment.
The average premium at $390 Main Japanese Port (MJP) was almost 47 per cent higher than 2013-14.
The S&P BSE Sensex plunged 128 points to end at 25,102.
Will Infy spring a surprise in subdued second quarter?
Imported Ethane will substitute its current propane imports and a portion of naphtha used for ethylene production.
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Market cap touches Rs 5 lakh crore; earnings growth to spurt in FY19
State owned banks SBI and PNB were the top Nifty gainers along with ICICI Bank and auto shares.
The airline's accounts are yet to be audited.
Growth has been slowing year-on-year for the IT sector but investors have continued to bet on it.
Asset quality stress has ballooned recently, as growth slowed and interest rates continued to rise.
Nissan' exit from the light commercial vehicle joint venture has helped speed up consolidation and growth for the company
From the stock perspective, though, even as all the 10 analysts polled by Bloomberg have a 'buy' recommendation on FRL, their target price of Rs 535 suggest most of the positives are already priced in.
Street believes premium valuations justified, as port traffic is expected to grow at a CAGR of 16% over FY14-16.
High interest costs and a weak rupee may raise overall debt, even as refinancing may not be an issue.
Average data usage on Airtel India network grew about three fold to 2611 megabyte (about 2.5 GB) per customer from 904 MB on YoY basis. But the average revenue from the data services per customer declined by 22.7 per cent during the period.
The company is keen on creating 'a differentiated e-commerce model'.
Tata Group shares were among the top losers while Adani Ports emerged as the top gainer
His plan revolves around new products, a renewed thrust on exports and some serious cost savings
TCS, Infosys do well but Wipro & HCL disappoint analysts; however, outlook for FY17 bullish in general.
Favourable response to launches, recovery in CVs will aid growth.
In effect, companies which put their money in telecom in India would have done much better to keep the cash in bank and earn interest.
Jonathan Garner, chief Asia and emerging markets equity strategist, Morgan Stanley, gives Samie Modak his assessment of the Indian economy after 3 years of Modi Sarkar.
