Rs 259 crore
What is it? Nestle India’s net profit in the three months ended March 2016, down 19.6% from Rs 320 crore in the same period a year ago.
Why is it important? The firm has attributed the slide to the ban of its popular snack Maggi noodles last month for nearly six months, pointing to the fact that it is yet to recover the lost market share last year. The snack, which accounted for nearly a third of its total sales in 2014, commanded an 80.2% of market share in instant noodles segment in the first quarter of 2015, which is now at 50%.
Tell me more: The company’s net sales declined by 8.4% to Rs 2,296 crore in the first quarter of 2016. Popular yoga guru Baba Ramdev has said that Patanjali noodles would overtake Maggi as the top noodles brand and that their production of ‘atta’ (wheat) noodles would be increased from the current 100 tonnes to 300-500 tonnes, without specifying a time frame.
Rs 13 lakh crore
What is it? The estimated stressed assets, a fifth of total bank loans, in the Indian banking system, according to a director at India Ratings and Research, Fitch’s Indian affiliate.
Why is it important? If true, then this indicates that the situation is worse than acknowledged by the bankers – at the end of December, the total stressed assets was over Rs 8 lakh crore. This is likely to hurt the banks’ profitability even further and restrict credit growth, which could affect economic growth – again leading to defaults and slowdown in production.
Tell me more: This would make it difficult for banks, especially the public sector ones, to raise capital, putting additional burden on government finances. The central bank has directed the banks to clean up their balance sheets by March 2017. Stressed assets include bad loans, restructured assets and written-off assets.
What is it? The number of Indian cities among the top 10 most polluted in the world, according to World Health Organization (WHO).
Why is it important? Though this number has come down from six to four and also, Delhi has been pushed to the 11th spot from the top, smaller cities such as Gwalior (second), Allahabad (third) and Raipur (seventh) have recorded higher air pollution levels. Some measures taken in the recent times such as not allowing pre-2000 trucks into the city have helped reduce pollution levels in Delhi. This calls for a concerted national plan to reduce pollution levels across cities.
Tell me more: According to a research, 5.5 million die prematurely due to the effects of air pollution globally and India accounts for a fourth of such deaths.
What is it? The number of years for which India’s vision documents would be reportedly prepared, replacing the current 5-year plans.
Why is it important? This would have a bearing on the way policies are framed and implemented, hopefully leading to a long-term focus on issues. According to unnamed officials, the 15-year vision documents would also deal with internal security, defence and external security – in addition to social and economic issues, which the five-year plans largely focus on.
Tell me more: The new plans include a seven-year National Development Agenda, which would outline the schemes, strategies and programmes to achieve the 15-year-vision. The seven-year agenda would be reviewed every three years to ensure it is aligned with financial resources. The current 12th year plan ends by March 2017 and the 15-year vision plans would be implemented from 2017-18.
What is it? The stake in Mitsubishi Motors Corp that Nissan Motor Company has agreed to buy for $2.2 billion.
Why is it important? This makes Nissan the scandal-hit company’s single-largest shareholder with Mitsubishi group companies’ stake coming down to 22.4% from 34% earlier. This deal assuages Mitsubishi’s viability concerns, which augurs better for the 7,777 companies and 410,000 people it deals with (estimates by Teikoku Databank, a corporate credit research firm).
Tell me more: A few days ago, Mitsubishi admitted to having tampered with the fuel economy data of cars sold in Japan for the last 25 years, including some sold to Nissan.