Companies and Markets

Companies & Markets

More disruption coming for Indian tech firms

We at Everest Group predicted that there would be a modest rebound in 2018 in the overall service provider space. We also said the large Indian firms would grow at 6.3 per cent in organic, constant currency terms. As we’re now through the first two quarters of the year, we see there has been a broad-scale rebound. So far, it has been a good year for the Indian firms, but not a great year. Their penetration of the digital space is growing, their growth rates are accelerating.

The flip side of a coin

Q1FY19 could be the first in the last six quarters with a significant cross-currency headwind. While the QoQ organic constant currency (cc) revenue growth is expected to trend up, albeit, at a modest pace, the sharp cross-currency impact (up to -200bps) could keep the reported dollar revenue growth from -2.9 per cent to 4.0 per cent in Q1FY19 for IT services coverage. JM Financial also indicates a higher divergence in organic growth between companies with execution momentum (TCS/MTCL) vs. those with near-term/seasonal headwinds (WPRO/HCLT/TECHM).

PNB confident of exceeding FY19 recovery target of Rs 22K cr

Undaunted by the massive scam of Rs 14,000 crore perpetrated by diamond merchants Nirav Modi and Mehul Choksi , Punjab National Bank said it would exceed the FY19 recovery target of Rs 22,000 crore and bounce back to profit in the next six months.

“We have given a guidance of Rs 22,000 for the whole year in recoveries but definitely we will exceed that with all recoveries, including IBC cases,” Sunil Mehta, CEO and MD of Punjab National Bank, told Financial Chronicle.

NTPC to shut down Badarpur plant by August

There is good news in store for Delhi residents suffering from high level of air pollution. The highly polluting coal-based Badarpur power plant run by NTPC in the National Capital will permanently shut operations from August 1 this year.

The 705mw Badarpur power plant has been identified as a major source of air pollution in Delhi. An IIT-Kanpur report had suggested that the coal-based units alone have contributed 11 per cent of the capital’s PM (particulate matter) 2.5 load.

Samsung to set up largest mobile factory in Noida

Korean mobile major Samsung India has chosen Indian state Uttar Pradesh to set up its new 35-acre Samsung Electronics facility to make it the largest manufacturing plant.

Prime Minister Narendra Modi and South Korean President Moon Jae-in who is on a visit to India will be inaugurating the facility on Monday.

One of the first electronics manufacturing facilities set up in the country in the early 1990s, the plant started by manufacturing TVs in 1997. The current mobile phone manufacturing unit was added in 2005.

BSNL first telco to start Net telephony, prepaid landline billing

State-run BSNL has become the first telecom company to launch internet telephony 'Wings' after government gave its go-ahead last month to access service providers and also has introduced a first-time prepaid concept to landline billings akin to mobile services. 

Stay on sidelines for now

The market settled with modest losses as the Sensex ended 70.85 points, or 0.20 per  cent, at 35,574.55 while the Nifty fell 20.15 points, or 0.19 per cent, to close at 10,749.75. Both the BSE Mid-Cap and Small-Cap indices fell 0.75 per cent and 0.4 per cent respectively, underperforming the Sensex.

The market breadth was negative with 1,053 shares gaining and 1,557 shares falling on the BSE. Among the sectoral indices on the BSE, Consumer Durables was down 2.78 per cent, Realty down 1.7 per cent and IT down 1.6 per cent. The FMCG I was up 1.03 per cent.