News in Numbers, Jan 10, 2017: Jostling its way to the top…

Rs 345.3 crore

What is it? The total earnings of Hindi movie ‘Dangal’, which released on December 23, as on Day 17.

Why is it important? This makes it the highest grossing Hindi film, beating the movie ‘PK’, which was released on December 19, 2014 and collected Rs 340.8 crore in its lifetime. The movie starring Aamir Khan, Fatima Sana Shaikh, Sanya Malhotra and Sakshi Tanwar, is abiographical sports drama based on the true story of a Haryanvi wrestler Mahavir Singh Phogat and his daughters who made it big in the international wrestling arena. His elder daughter went on to become India’s first female wrestler to win the 2010 Commonwealth Games.

Tell me more: Aamir Khan has set records with his Christmas releases in the last few years. Dhoom 3 (2013), 3 Idiots (2009) and Ghajini (2008) earned Rs 284.27 crore, Rs 202.95 crore and Rs 114 crore respectively.

 

3

What is it? Air India’s ranking among the 10 worst international airlines of 2016, according to a report by aviation insights company FlightStats.

Why is it important? This comes at a time when the airline is trying to make a turnaround and has a target to make its first net profit by 2022. Air India posted an operating loss of Rs 161 crore in the first three quarters of 2016-17 (which means its daily loss has come down to Rs 58 lakh in the April-December 2016 period from Rs 4 crore in the first six months of last year). However, its annual target of achieving Rs 1,086 crore in operating profit by March 2017 seems unlikely. Air India has said that it disagrees with the report and that it seems that it is “fabricated”.

Tell me more: The odds of delay on an Air India flight is 38.71% compared the best international airline’s (Netherlands-based KLM) rate of 11.47%. Israel’s El Al Airlines and Reykjavik-based Icelandair have been ranked as the world’s worst international airlines of 2016 while Spain’s Iberia and Japan Airlines are the best international carriers after KLM.

 

25%

What is it? The rate at which indirect tax collections grew in the April-December period of FY17.

Why is it important? The Finance Minister has quoted these figures to suggest that the effect of demonetisation on business activity has been minimal. Collections from indirect taxes, comprising central excise, service tax and customs, grew to Rs 6.3 lakh-crore. This was in spite of estimates of a slowdown in manufacturing and services sectors, hit by the liquidity crunch and subdued consumer spends brought about by the demonetisation of old Rs 500 and Rs 1,000 notes in November. But in December alone, indirect taxes grew by 14.2% year-on-year, even after declining gold imports led to a decline in customs collections. The collections in April-December account for 81% of FY17’s Union Budget Estimates.

Tell me more: Indirect tax collection in April-December has increased from Rs 3.54 lakh-crore, 3.78 lakh-crore, and 5.04 lakh-crore in 2013, 2014, 2015, respectively. In 2016, central excise collections stood at Rs 2.79 lakh-crore, service tax net collections at Rs 1.83 lakh-crore and customs at Rs 1.67 lakh-crore.

 

8.35%

What is it? The rate of home loan interest of Bank of Baroda.

Why is it important? This is the lowest among both private and public sector banks. In the rush to cut borrowing rates after demonetisation, Bank of Baroda has gone even further than the State Bank of India which is at 8.65%. HDFC, among private banks that have cut rates, brought it down to 8.7%. BoB’s rate is expected to earn it customers from other banks as well, which have not passed on rate cuts to customers, especially existing ones.

Tell me more: Bank of Baroda has reportedly waived off the switching fee for moving from legacy base rate of floating loans to RBI-mandated MCLR for existing borrowers to avail the new rate. It has reduced MCLR by 55-75 basis points across all tenors.

 

$66.7 billion

What is it? The total student loans that American borrowers over 60 years of age owe, according to a report.

Why is it important? This raises concerns about not only their ability to repay their loans but also, about their financial security in old age as the government (in some cases) can withhold their social security checks if they default on their loans. The number of debtors over 60 – the fastest growing age segment with student debt- has increased fourfold in 10 years to 2.8 million in 2015 from 700,000 in 2005. The default rate of those with student loans and aged above 65 had twice the default rate as those below 50.

Tell me more: As many as 44 million borrowers owe $1.3 trillion in student loans. Over two-thirds of the student loans of those above 60 have been taken for their children or grandchildren and some of it for their own education.

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News in Numbers, July 28, 2016: Some changes in GST Bill approved, ACs’ energy efficiency…

$1 billion

What is it? The size of the deal India has signed with US defence and aerospace major Boeing for buying four additional ‘Poseidon-8l’ long-range maritime patrol aircraft.

Why is it important? This would strengthen India’s naval surveillance capabilities at a time when Chinese nuclear and conventional submarines have been making frequent trips in the Indian Ocean region. The Asian giant has been keen on developing a number of ports around India and developing a military logistics base in Djibouti, a tiny African nation.

Tell me more: It would also have the capabilities of dropping and monitoring sonobuoys (to detect underwater sounds and transmit them by radio), which is currently being used to look for the missing AN-32 plane of the Indian Air Force. The first of the four will be delivered in 50 months.

 

241

What is it? The number of infrastructure projects worth Rs 150 crore or more that have reported cost overruns, as per a May report by the government.

Why is it important? These projects have resulted in cost overruns of Rs 1.59 lakh crore, which is 12.5% of the original cumulative cost of the 1,076 projects monitored in May. Highlights the need for speedy implementation of projects even as the government tries to strengthen the economy, which is likely to touch 8% next year (according to estimates by Nomura). Private spending has not yet picked up, putting the burden on the government to do the job.

Tell me more: Of the 1,076 projects, less than a third (30.7%) of the projects reported time overruns. The percentage of projects that have reported cost and time overruns have marginally decreased to 22.4% (from 22.7% in April) and 30.67% (from 30.73% in April) respectively, in May.

 

1%

What is it? The additional tax on inter-state sales as proposed in the earlier version of the Goods and Services Tax (GST) Constitution Amendment Bill, which has now been done away with.

Why is it important? This is one among the few other changes approved by the Union Cabinet on Wednesday, which is likely to better the bill’s chances of being passed in the Rajya Sabha this monsoon session. With this, the government has met one of the three key demands of the Congress, which has 60 seats in the Upper House. The NDA has 72 seats in the Rajya Sabha and has managed to get the support for the bill from various regional parties that have a cumulative 63 seats – it requires the support of 163 members to pass the legislation in this House.

Tell me more: If the government is able to get the bill (which already received the Lok Sabha’s approval last year) passed in the Rajya Sabha this monsoon session, it can meet its deadline of rolling out the unified tax by April 1, 2017. Other changes approved by the Cabinet include compensating the states for any revenue loss in the first five years of rolling out GST and that the Bill will mention that any dispute would be settled by the GST Council (with representation both from the central and state governments).

 

Rs 27 crore

What is it? The fine imposed by the Reserve Bank of India on 13 banks for violating Foreign Exchange Exchange Management Act (FEMA), Know Your Customer (KYC) and anti-money laundering provisions and norms.

Why is it important? Highlights the extent of violations across private and public sector banks, some of them serious in nature. This is a result of raids across branches (including those of Bank of Baroda and HDFC Bank) that were conducted as part of the investigations into a Rs 6,100-crore foreign exchange scam unearthed at Bank of Baroda last year. In this case, bank employees had allegedly collaborated with some people to transfer funds to accounts in Hong Kong and the UAE for import transactions that never took place.

Tell me more: The banks that have attracted penalty include Allahabad Bank, Canara Bank, Bank of Baroda, HDFC Bank, Bank of India and Punjab National Bank. Eight others including Axis Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank and the State Bank of India have been asked to take appropriate measures to ensure strict compliance of KYC norms and FEMA provisions, and review them periodically.

 

40 degree Celsius

What is it? The temperature above which a 5-star rated air conditioner (AC) starts performing like a 2-star rated AC, according to a study.

Why is it important? This could be one main reason for the inappropriately high electricity bills during summer months in many households. A 5-star AC is supposed to save 20-22% of the energy costs when compared to a 1-star appliance (according to the Bureau of Energy Efficiency) but this study says that when temperatures shoot up to 40-45 degree Celsius, a 5-star AC can start consuming 10-28% more power than the declared capacity. Some of the metros such as Delhi, Chennai and Hyderabad had crossed 40 degree Celsius this summer.  At above 45 degree Celsius, it becomes worse than a 1-star rated AC.

Tell me more: The study by the Centre for Science and Environment says energy efficiency of ACs decrease when the room temperature is lowered below 27 degree Celsius. It also points out that the cooling capacity of a room decreases by around 30% during peak summers when a 1.5-tonne AC starts behaving like a 1-tonne AC.

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News in Numbers, May 26, 2016: Capital goods policy, SEBI’s push to delist 4,200 firms…

Rs 7.5 lakh crore

What is it? The expected value of capital goods made in India in 2025 from Rs 2.3 lakh crore in 2014-15.

Why is it important? The government, which on Wednesday approved a policy on capital goods, hopes to generate more jobs in this sector: 30 million by 2025 from 8.4 million now. It’s in line with the government’s  ‘Make in India’ programme, which aims to increase the share of manufacturing sector as a percentage of GDP from around the current 17% to 25% by 2020.

Tell me more: The policy seeks to increase exports from 27% to 40% of production and to up the share of domestic production in India’s capital goods demand from 60% to 80% by 2025, which would make India a net exporter of capital goods. Capital goods production, which is 8.8% of the Index of Industrial Production and is a proxy for industrial and investment demand, contracted for the fifth straight month (as of March) year-on-year.

 

4,200

What is it? The number of companies the markets regulator is pushing for delisting from the stock exchanges.

Why is it important? This is to prevent price manipulation through firms that are not actively traded, which would improve governance of public markets and the listed companies. It would also help in reducing regulatory burden. However, firms could misuse this to become non-compliant in order to delist themselves instead of following the proper delisting norms.

Tell me more: Of the 4,200, there are 1,200 companies that have been suspended from trading for seven years (typically, for non-compliance of rules) and 3,000 that are only listed on regional exchanges, some of which cease to exist. The Securities and Exchange Board of India has also warned strict action against auditors if they are found to play a role in market manipulation.

 

54%

What is it? The percentage of ICICI Bank’s bad loans on the account of the Reserve Bank of India’s (RBI) asset quality review in the last six months of 2015-16.

Why is it important? Shows the extent to which banks have been under-reporting their bad loans. ICICI Bank is not the only one. For Punjab National Bank, Bank of Baroda, Axis Bank and Yes Bank, the equivalent numbers are: 45%, 41%, 30% and 24%. Of the large banks that have declared their results so far, about 44% of their bad loans is due to the central bank’s asset quality review.

Tell me more: The gross bad loans of 39 listed banks was Rs 4.3 lakh crore at the end of December 2015. In April, it was reported that over Rs 3 lakh crore were classified under a category where repayments were overdue by 30-60 days while another Rs 3.17 lakh crore had repayments overdue by 60-90 days, and a portion of this may turn into bad loans during the year.

 

Rs 184.96 crore

What is it? Online restaurant discovery/food ordering service firm Zomato Media’s revenue in 2015-16 from Rs 96.73 crore the previous year.

Why is it important? Despite almost doubling its revenue from last year, it recorded loss before tax of Rs 492.27 crore in the year ended March 2016. Food startups have been facing problems including slowdown in funding, with many of the firms either closing down, getting acquired or reducing their operations.

Tell me more: Last month, HSBC Securities and Capital Markets reduced Zomato’s valuation by $500 million, about half the valuation at which it had raised its last round of funding in September 2015.

 

$50

What is it? Price of Brent crude oil per barrel, an increase of 79% from a 12-year-low of $27.88 a barrel in January.

Why is it important? This is the first time oil has breached the $50-mark. This means higher fuel prices for motorists and reduction in savings for the Indian government due to a likely increase in oil subsidies. In Delhi, fuel prices have increased by over 7% this year. India’s crude oil import bill has almost halved to $64 billion in 2015-16.

Tell me more: The basket of crude oil India imports averaged $105.5 per barrel in 2013-14, $84.2 a barrel in 2014-15 and $46.2 per barrel in 2015-16.

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News in numbers, Oct 14, 2015: Estimated size of India’s middle class, TCS’ Q2 earnings report…

 

5,853

What is it? The number of times large overseas remittance transactions were done from a single branch (Ashok Vihar in Delhi) of Bank of Baroda between mid-May and August this year, involving $ 546 million (Rs 3,500 crore). These transactions which are done citing as advance payment for imports are now under scrutiny for violations of India’s anti-money laundering laws  

Why is it important? Nearly 10% for the said remittance (Rs 350 crore) was done in cash. Banks are required to file such high transactions with India’s Financial Intelligence Unit (FIU), which in turn, will investigate. Bank of Baroda claims it had filed 79 reports with FIU. Though the transactions started in mid-May, the bank has reported it to investigating agencies only on September 29, 2015.   

Tell me more: Any cash transaction in excess of Rs 10 lakh or more, or from combination of accounts connected to the same entity have to be reported to FIU automatically by the 15th of next month.

 

Rs 334.2 crore

What is it? Amount raised by Coffee Day Enterprises Ltd, which runs Cafe Coffee Day chain, from anchor investors prior to its initial sale of shares to public (or IPO), at a price of Rs 322 per share.

Why is it important? The proposed IPO by India’s largest coffee chain is the biggest in three years and is seen as test of appetite for new issue of shares. Anchor investors can be allotted upto 60% of shares of reserved for institutional investors. In this case, it comes to around a third of the issue size of Rs 1,150 crore, and demand was estimated at 2.5 times the anchor book.

Tell me more: The IPO opens today at a price band between Rs 316 and Rs 328 per share.

 

23 million

What is it? The estimated size of India’s middle class  that own assets worth $ 50,000 to $ 500,000 as per Global Wealth Report by Credit Suisse AG. Together they account for 3.6% of world’s middle-class population.

Why is it important? These 23 million represent just 3.3% of adult population, but they hold 32% (or $ 780 billion) of India’s total wealth. However, individuals owning assets higher than $ 500,000 account for 41.4% of total wealth but only 0.2% of population

Tell me more: Growing number of middle-class represents the spread of wealth beyond the top, and in India, 6.8 million people were added into this category in five years between 2010 and 2015 – second only to China.

 

Rs 1,200 crore

What is it? Amount of money spent on TV ads by Indian e-commerce companies in three months ended September 2015, representing an increase of 46% from year-ago period.

Why is it important? Shows the importance of TV as a medium to reach a wider audience in India. An estimated 168 million out of 255 million households in India own a TV, representing a reach of 66%. In comparison, internet penetration is only 19% as on 2014.

Tell me more: Increased ad spend by start-ups is fuelled by increased investment, which is estimated to more than double and cross $ 5 billion in 2015.  

 

5.8%

What is it? Year-on-year dollar revenue growth reported by Tata Consultancy Services, India’s largest software services firm, in three months ended September.

Why is it important? This is the first time in six years, Mumbai-based TCS has reported lower growth rate compared to Infosys, which reported a 7.6% growth. Barring digital services, TCS reported a sequential growth of 2% in September quarter – an area of concern.   

Tell me more: India’s software exports is expected to grow at 12-14% this fiscal to $ 110-112 billion, as compared to 13-15% in 2014-15.  

 

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