Maruti takes a hit

Rs 1,556 crore

What is it? Maruti Suzuki’s net profit in the April-June quarter, a 4.4% increase from a year-ago period.

Why is it important? The net profit has lagged estimates – a Bloomberg poll of analysts had estimated a net profit of Rs 1,692.3 crore. Maruti, which has more than 50% market share, said the company’s performance was impacted by a one-time compensation to dealers due to the switch to the goods and services tax, higher raw material prices, sales promotion and marketing expenses.

Tell me more: Maruti’s revenue from operations increased by 16.4% to Rs 19,777 crore from a year ago. It sold 3.94 lakh units in the latest quarter, up 13.2% from the same period a year ago.

 

 

24.1%

What is it? Samsung’s market share in India’s smartphone market in the April-June quarter this year.

Why is it important? With this, Samsung continues to be the leader in the smartphone segment in the country followed by Chinese brands such as Xiaomi and Vivo, which have more than doubled their market share from a year ago. However, Xiaomi overtook Samsung in the category of smartphones selling under Rs 10,000 in the second quarter with its phones Redmi Note 4 and Redmi 4. This is the first time any brand has been able to overtake Samsung, which has held the best-seller slot for its models for the last four years or so.

Tell me more: Chinese smartphone brands account for more than half of the shipments and this is the second straight quarter when their market share exceeds 50% after they took over local brands in the second half of 2016.

 

 

6

What is it? The number of years after which banks in India can appoint the same audit firm, as per a notification by the Reserve Bank of India (RBI) on Thursday.

Why is it important? This has been increased from two years. Earlier, upon completion of its four year term with a bank, an audit firm, could be reappointed after a gap of two years. The central bank observed that in some cases, the statutory central audit responsibility was handled by two audit firms, who were appointed alternately. This policy change is aimed at deterring the auditors and the auditee from establishing a comfortable relationship that might hinder strict adherence to audit principles and also, to enable the examination of issues in a bank from a different perspective.

Tell me more: The change in rule comes at a time when there has been a great divergence between the bad loans reported by some banks for 2015-16 and the RBI’s findings.

 

 

0

What is it? The number of top-100 Joint Entrance Examination (JEE) rankers who opted for three IITs — Kharagpur, Kanpur and Madras.

Why is it important? While 65 of them opted for IIT Bombay, 31 of the rankers chose IIT Delhi. However, this year, the remaining four rankers did not opt for the other IITs. While the IIT Kharagpur had stopped attracting the top-100 rankers for some years, some of them had still chosen Kanpur and Madras (Chennai) till 2016. But in 2017, these three top seats of learning seem to have fallen out of favour.

Tell me more: The three institutes have got around 50 students from the top 500 rankers this year.

 

 

Rs 1,250

What is it? The average wholesale price of a quintal of onions in Maharashtra on Thursday.

Why is it important? It is a rise of 118% since July, 13. A wait for kharif crops in October, Gujarat’s floods and hoarding by farmers of crops from March and April have led to the hike.

Tell me more: The central government might reinstate a minimum export price which had been withdrawn in the last 19 months. The country is already reeling under the rise in prices of tomato, another kitchen staple.

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News in numbers, Jan 22, 2016: US firms have $1.9T in cash, solar system may have 9 planets…

 

Rs 657.28 crore

 

What is it? Net profit of InterGlobe Aviation, owner of India’s largest airline Indigo, in quarter ended 31 December 2015, an increase of 24% from a year ago.

 

Why is it important? This is mainly because of declining fuel prices, which account for nearly half of expenses for Indian airlines. Indigo’s fuel expenses were down by 20% to Rs 1,170 crore while number of passengers increased 28% to 8.33 million. Its market share in 2015 stood at 36.7%. In its first quarterly results after its public listing, the airline’s income from operations increased 11.4% to Rs 4,297.75 crore. It beat analyst estimates – a survey of three analysts by Bloomberg had expected the company to post a profit of Rs 642.8 crore and net income of Rs 4,176.3 crore.

 

Tell me more: Interglobe Aviation raised Rs 3,010 crore in its initial public offering (IPO) recently and its share prices have jumped 57% since its listing.

 

Rs 5,500 crore

 

What is it? The minimum annual global consolidated revenue above which Indian multinational companies have to mandatorily follow country-by-country reporting from April 1, 2016.

 

Why is this important? This is part of the base erosion and profit shifting guidelines (BEPS), a set of norms announced by the Organization for Economic Cooperation and Development (OECD) to plug loopholes in the global taxation system. The OECD estimates that countries lose up to $100 billion a year due to such loopholes. This measure is to provide all the details about the entire operations of a company, which is to help reveal if it is shifting profits to a low-tax country to evade taxes.

 

Tell me more: Governments are supposed to adopt country-by-country reporting as part of the BEPS guidelines by 2017.

 

$1.9 trillion

 

What is it? Amount American companies have in the form of cash.

 

Why is it important? Raises questions on whether keeping it idle is the best use of cash. Financial management principles hold that a company should give cash back to shareholders unless it can provide better returns. Cash in bank gets about 2% interest rate for the companies. Some believe investment opportunities might be just around the corner. Nonetheless, American companies seem to love cash now. For instance, Google’s parent company Alphabet has $80 billion in cash, which is enough to buy Uber, its Indian rival Ola and Palantir, a data-mining startup.

 

Tell me more: A study by Lee Pinkowitz and Rohan Williamson, professors at Georgetown University, shows that investors perceive a dollar of savings differently in different sectors. For example, one dollar of savings by a publishing company is seen to be worth around 40 cents while for a software company, it is perceived to be more than $2.

 

2.5%

 

What is it? Commission to be paid (including handling charges of 1.5%) to banks by the government for medium and long-term deposits under the gold monetisation scheme for one year from its launch (November 5, 2015), according to new RBI rules.

 

Why is it important? Another measure to unlock idle 20,000 tonnes of physical gold lying in households and institutions. The commission is likely to encourage bankers to push the scheme, which has mobilised over 500 kg of gold so far. Under this scheme, people can deposit jewellery, bars or coins with the banks, which can be refined to meet consumption demands and reduce imports.

 

Tell me more: Banks can accept gold under medium (5-7 years) and long-term deposit (12-15 years) schemes where customers can earn 2.25% and 2.5% interest per annum respectively.

 

9

 

What is it? Likely number of planets in the solar system. A recent research indicates the existence of a possible ninth planet.

 

Why is it important? California Institute of Technology researchers Konstantin Batygin and Mike Brown provided theoretical evidence of the existence of the ninth planet based on mathematical modelling and computer simulations. The planet has not been observed directly yet. Brown said there have been two true planets discovered since ancient times and this could be the third. Pluto was relegated to being a dwarf planet in 2006 and if this ninth planet exists, the solar system can be back to having nine planets.

 
Tell me more: The likely ninth planet nicknamed ‘Planet Nine’ is 10 times bigger than the earth and is orbiting far beyond Neptune.

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