ECONOMY, P2 COMPANIES, P3 INTERNATIONAL, P9

‘LONG-TERM BENEFITS’ DEMAND IMPROVING CEMENTING POWER

Note ban behind buoyant More volumes, lower costs Xi clinches record third
tax collections, says RBI will lead to a good H2: JSW term as president, packs
panel’s Ashima Goyal Steel’s Seshagiri Rao leadership with loyalists
PUNE, MONDAY, OCTOBER 24, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM

VOL NO. XII 227, 12 PAGES, `10.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E READ TO LEAD

IN THE NEWS
Thriller in Melbourne:
PRICE HIKES INSUFFICIENT TO PROTECT MARGINS
Markets likely to
India beat Pakistan
in T20 World Cup tie
Input costs weigh on India Inc remain resilient
VIRAT KOHLI LED India havereportedweaknumbersoreven
to a final-ball triumph
over Pakistan in their
Twenty20 World
Cup clash at the MCG in Australia
Profits under pressure
as Q2FY23 earnings
season kicks off
postedlosses;atHavells,profitswere
down 38% y-o-y while PVR posted
bothan operational and net loss.
Infact,therevenuegrowthforthe
SLOW START
● Net sales
(% chg, y-o-y)
● Operating profit
(% chg, y-o-y)
● OPM
(bps, chg y-o-y)
in the new year

36.59

-229
15.83

15.82

-280
31.99
on Sunday. Chasing a tricky sample (which excludes BFSI) of FE BUREAU

26.57

-333
ANDREW HOLLAND, AVENDUS

12.9
25.63
total of 160, Kohli’s 53-ball 82 FE BUREAU 25.6% y-o-y is somewhat disap-

-422
New Delhi, October 23 ALTERNATE STRATEGIES CEO

0.1
took India home in the high New Delhi, October 23 pointinggivenafavourablebaseand
pressure opening game, theinflationaryenvironment.AtTata Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 WITH LITTLE VISIBILITY on the We expect this (Fed, RBI
reports Devendra Pandey in THE SEPTEMBER QUARTER earn- ConsumerProducts,standalonerev- FY22 FY23 FY22 FY23 FY22 FY23 global macro environment, experts
New Delhi. ings season has so far thrown up enueswereup justa shade over7%. arereluctanttocallatrendforIndia’s stop raising rates)
many more disappointments than The good news is ● Tax ● Net profit ● RM to sales stock market in 2023.Some believe could happen
New residential unit surprises,making for that businesses badly (% chg y-o-y) (% chg y-o-y) (bps, chg y-o-y) in the de-coupling theory, saying around March or
a sedate start. The RESULTS

8.23
hit by the pandemic India will outperform peers, but are early April after
launches expected
21.7

446
14.82

14.51
poor headline num- are bouncing back. notsuretowhatextent.Mostarebet-
33.32

12.59

369

635
EARLY BIRDS which the markets

550
to rise 15% in Diwali bers — a 9% year-on-
year fall in net profits
Shoppers Stop staged
a good recovery with
tingontheAatmanirbharthemeata
timewhen exports arevulnerable to would start focus-
LAUNCHES OF NEW forasampleof226companies—are revenues up 60% y-o-y, while rev- -2.29 slowing global trade.What’s certain ing more on

-9.1
residential units are the result of flat profits reported by enuesatAvenueSupermartswereup is that strong local investor appetite equities and
expected to rise 10- Reliance Industries,a loss from JSW 36% y-o-y driven by a revival in Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 could make the Indian market as
15% this Diwali over Steel,a sharp fall in profits at ACC of same-store-salesand newstores. FY22 FY23 FY22 FY23 FY22 FY23 resilient and exciting as in 2022. growth areas
last year, with nearly 35,000 units 120%y-o-yandatUltratechof45% Andrew Holland, CEO,Avendus
Sample of 266 companies (excluding banks & financials) Source: Capitaline RASHESH SHAH,
coming up across seven cities. y-o-y.Some smaller companies,too, Continued on Page 9 Alternate Strategies, isn’t a big
This would mean 26-28 million believer in the decoupling theory. EDELWEISS GROUP CEO
sq ft of residential space However,he points out that at some
Inflation and interest rates
being launched just around the
festival, reports Shubhra Tandon
in New Delhi. ■ PAGE 3
OTTs may have to pay access charge to telcos point the Fed will stop raising rates
and so will the Reserve Bank of
India.“We expect this could happen
have to stop going up for
investors to start
RISHI RAJ should be compensated for them. around March or early April after buying big …There
Falling demand in key New Delhi, October 23 HEAVY ■ Telecom service providers ■ OTTs and Upon reference from the DoT, whichthemarketswouldstartfocus-
may be some
TRAFFIC will have to keep increasing telcos need Trai is currently studying various ing more on equities and growth
markets hits textile & SOCIAL MEDIA INTERMEDIARIES carriage capacity and ‘interconnect possible models under which OTTs areas,”HollandtoldFE,addinga12% pressure on global
■ Data, backhaul networks, regime’ liquidity until
garment exports likeWhatsApp,Facebook andTwit-
ter, and over-the-top (OTT) players particularly which entails investments because
can be brought within the purview
of some form of regulation. The
return should not be out of reach.
Rashesh Shah, chairman and March or early April
TEXTILE AND GARMENT like Netflix, Prime Video and Dis- video, immense draft Telecom Bill, too, talks about CEO,EdelweissGroup,saysinflation
exports contracted ney+Hotstar mayhave to paya car- comprises 70% data/video bringing them under regulation. and interest rates have to stop going but post that we
8.5% in the first half of riage charge to telecom service of network traffic load could Sources said once Trai studies the up for investors to start buying big. should see
FY23 from a year ago, providers once the Telecom Regu- and will grow clog or crash subject,it will come out with a con- “Itcouldbejustanother5-6months an uptick
underperforming a 17.8% rise in latory Authority of India (Trai) and with 5G rollout networks sultation paper to seek stakehold- of uncertainty, but the fact is that
merchandise exports. Demand department of telecommunica- ers'comments. the recession has been priced in.
slowdown in key markets, on top tions (DoT) finalise the contours of Communications ministerAsh- There may be some pressure on director, Enam Holdings, believes
of shortage of cotton, dragged a new regulatory regime encom- flow on telecom networks,and this telcos have to keep on increasing wini Vaishnaw has talked about global liquidity until March or early 2023couldbeatoughyeargiventhe
them down, exporters said, passing them. would growfurtherwith the rollout theircarriagecapacityandbackhaul light touch regulation for OTTs. April but post that we should see an challenges in the global economy.
reports Banikinkar Pattanayak Data, particularly video, com- of 5G services. networks, which entails invest- uptick,”he said.
in New Delhi. ■ PAGE 2 prises 70% of the overall traffic Withsuchgrowthofdata/video, ments, and it has been felt they Continued on Page 9 Sridhar Sivaram, investment Continued on Page 9

Pune
 2 FINANCIAL EXPRESS WWW.FINANCIALEXPRESS.COM

Economy
ISRO SATELLITE LAUNCH
Prime Minister Narendra Modi
@narendramodi
LVM3 exemplifies Atmanirbharta & enhances
India’s competitive edge in the global commercial
MONDAY, OCTOBER 24, 2022 launch service market.

QUICK ● 8.5% FALL IN H1FY23 EXPLAINER

VIEW Textile and INDIA’S CLIMATE PLAN AND THE What are the
ways to make coal
as benign as

garment
Infra projects VEXED QUESTION OFTHE ‘DIRTY FUEL’ possible?
Coal-based thermal
units could be
show `4.52-trn Finance minister Nirmala Sitharaman stated at the retrofitted with

exports shrink
carbon capture,
cost overruns IMF-World Bank annual meet inWashington DC utilisation and
AS MANY as 384 earlier this month that “coal is going to be back storage (CCUS)
infrastructure again as gas has become unaffordable.”This added technologies. Coal
projects,each washeries need to
entailing an NOT QUITE A GROWTH WEAVER to the conflicting signals from key nations on their
adopt better
investment of `150 crore or Textiles & garment exports ($ bn) emission reduction commitments. Her statement technologies for
more,have been hit by cost Share in goods exports (%) followed reports that some EU stateswere cleaner fuel. Some
overruns of more than
`4.52 trillion,as per a report 11.9 11.2 10.8 10.4 10.2 10.1 7.8
planning to increase the use ofcoal to generate of the coal-fired
electricity amid reduced gas supplies from Russia. power plants may
by the ministry of statistics
and programme be amenable to use
Indronil Roychowdhury examines ifthe of low-carbon fuels
implementation.
42.9

geopolitical conflict has indeed put the global such as ammonia.

36.9
36

Russian banks open climate action plan in jeopardy.

33.7

30.4

vostro account for How is India's coal

20

trade in rupee Domestic coal consumption

18.3

Is global coal What are the commitments India's coal requirement (E)
consumption rising? undertaken by (million tonne) production projected to be
TWO RUSSIAN banks — In 2021, the consumption coal-producing nations to (2021-22, million tonne) in the short to
Sberbank and VTB Bank — 2021-22 678
have opened a special vostro FY18 FY19 FY20 FY21 FY22 FY22 FY23 of the dirty fuel, the single ‘phase out’ coal? 778.2 (up 8.7%
on year)
medium term?
account,following Source: DGCIS (H1) (H1) biggest contributor to A clutch of countries have 2026-27 831.5 including: Despite the faster
permission from the climate change, pledged to “quit coal” by ending addition of green
Reserve Bank of India,to remain under pressure. rebounded 6%, as the all investments in new coal-based
2031-32 1,018.2 Coal India 622.6 power capacities,
facilitate overseas trade in Sector’s share in Unless corrective actions are global economy power. However, China, India and India's installed (non-govt) especially solar
the rupee. goods despatches swiftly taken, the ambitious recovered rapidly from the US, the three largest coal electricity capacity commercial/ 62 energy, coal
target of realising annual tex- the pandemic, producers in that order, did not captive coal mines consumption is
Guidelines for drops to just 7.8% tile and garment exports of necessitating increased sign up. To be sure, the 21 399.5 GW estimated to
Target production
$100 billion in five years is set use of energy. According countries that have pledged to
action by tax BANIKINKAR PATTANAYAK to be missed. including: for FY23 increase by 40% in
to the International eliminate coal-fired power Coal India 700 the next one
authorities New Delhi, October 23 More importantly, the his-
Energy Agency, given the generation by 2030-2040 have a
Coal-based thermal 236 GW
torical policy bias towards the decade. This
Renewable 156 GW Captive/
TAXAUTHO- TEXTILE AND GARMENT cotton-basedvaluechainwhen high gas prices, the share of just 3.2% in global power
commercial 141 projection takes into
RITIES issuing exportscontracted8.5%inthe global consumption pattern world’s consumption of output and account for only 1% of Nuclear 6.8 GW mines consideration the
show-cause first half of FY23 from a year veers towards manmade fibre coal is set to rise slightly in CO2 emissions. Therefore, the fact that the load

notices will have
to complete all enforcement
and consequential action
against the assessee against
whom GST evasion was
detected,the GST Council
has said.
Aviation safety:
Govt to create
posts at DGCA
THE CIVIL aviation ministry
will create a“substantial”
numberof posts at the
Directorate General of Civil
Aviation (DGCA) toenhance
its safetyoversightfunction,
Union ministerJyotiraditya
Scindia has said.
Cashew exports
plunge further to
38% in September
INDIA’S CASHEW
exports
contracted by
38% to $22.71
million in September,
succumbing to intense
competition in
international markets.
Gold glitters for large
before, far underperforming a
17.8%riseinoverallmerchan-
dise exports.
Accordingtothelatestcom-
merceministrydata,textileand
apparel exports stood at $18.3
billion in H1FY23,against $20
billion a year before. The
demand slowdown in the key
markets,ontop ofa shortageof
cotton, dragged down such
exports,exporters said.
Worse, the share of textile
and apparel shipments in the
country’s goods exports has
been steadily declining over
the past decade and a half,and
stood at just 7.8% until Sep-
tember this fiscal; the share
was to the tune of 13.7% in
FY16. This suggests a steady
erosion of export competitive-
ness, despite government
efforts to turn around the for-
tune of the largest labour-
intensive sector after agricul-
ture, and brings to the fore
concerns of job creations in
the country.
With the country’s top two
textiles and apparel export
markets — the US and the EU
— witnessing a demand slow-
down, shipments of these
products will continue to
51%
Current share (299 mt produced by
and technical textiles prod- 2022, taking it back to the plan to “phase out” coal by 2030 curve doesn't allow
ucts, domination of small and
of coal in India's CIL in April-Sept and
record level it reached for major economies and by 2040 full absorption of RE
medium businesses with lim- installed energy 51 mt by captive,
nearly a decade ago. for others doesn't look feasible. capacity commercial mines) generation.
ited scale, inflexible labour
rules for decades, and high
logistics costs have hurt this How has India renewed its climate What are the recent steps Are the policy signals Why is gas-based
sector.Consequently,India has pledge at the Glasgow summit in being taken by India to curb clear in this regard? capacity stagnant?
ceded substantial export mar- November 2021? coal-fired power? Not really. Of of 22.7 GW Gas-based units are
ket share to Bangladesh and At that summit, PM Narendra Modi set a In May this year, the power ministry of old (unabated) coal running at a very low PLF
Vietnam in the past decade. target to cut India's carbon emissions to net said India would cut power
To tackle some of these
plants that were to retire of 23%, mainly because
zero by 2070, against China's carbon generation from 81 of its 173 coal- between 2017-22, most of lack of pipeline
issues, the government came
neutrality plan for 2060 and the US-EU fired utilities over the next four years, are still operational. infrastructure.Also,
outwith a `6,600-crore pack-
age for garments exporters in pledges to achieve this target a decade as part of the plans to replace the These include units domestic production is
2016. It also allowed fixed- earlier. Additionally, he set the following expensive fuel with cheaper green without flue gas stagnating, partly due to
term employment to address targets for the country with 2030 deadline : energy. These units will “operate up desulphurisation (FGD) the price caps. Imported
the issue of seasonality in Over 50% of power generation from to the technical minimum.” The PLF facility, which is meant to gas has been expensive,
order flows. However, the renewable (RE) sources; increase in non-fossil of coal-based power stations had cut SO2 emissions.The and the geopolitical
relief hardly paid off, as other fuel energy to 500 gigawatt; cut in projected declined gradually from 60.5 % in deadline for FGD conflict has worsened
structural bottlenecks contin- carbon emission by 1 billion tonne and 45% 2017-18 to 54.6% in 2020-21, but installation has got the situation, with LNG
ued to persist. reduction in carbon intensity of the GDP. inched up again in 2021-22 to 58.8%. extended repeatedly. prices skyrocketing.
To fix these, the govern-
ment announced a `10,683-
croreproduction-linkedincen-
tive scheme foronlymanmade
fibre-based and technical tex-
tiles products,and selected eli-
gible companies this year.
Since the incentive offtake is
Large auditors raise fresh objections Note ban
behind
now expected to be lower, it's
planning to roll out a second
PLI scheme forthe sector.This,
to joint inspection proposal rise in tax
government officials believe,
will produce results in the
BANIKINKAR PATTANAYAK
New Delhi, October 23
Whilethecallforjointaudit
is not new in India, it grew collections:
medium term. shriller after the IL&FS crisis
LARGE AUDIT FIRMS have
raised a fresh set of objections
exposed the abysmal audit
quality and the alleged
MPC member
to a proposal of the Company involvementofauditors inthis
Law Committee of the min- scandal. Subsequently, the
istry of corporate affairs Company Law Committee,
(MCA), for a mandatory joint under then corporate affairs

jewellers on Dhanteras audit of a certain class of

BANIKINKAR PATTANAYAK
New Delhi, October 23
LEADING JEWELLERY
CHAINS witnessed a rise of
about 20% in sales this
Dhanteras—consideredauspi-
ciousforgoldpurchases—from
a year before, but growth
remainedunevenacrossstores.
Importantly, unorganised
players,whoaccountforroughly
65% of the country’s jewellery
sales, saw muted growth of
about5%,asthetrendofashift
of consumers to the organised
sectorcontinues.Dhanterasthis
year was spread over the week-
end—fromSaturdayeveningto
Sundayevening.
Jewellers told FE that sales
this year still grew at a slower
pace than during the last
Dhanteras,aselevatedinflation
bit into people’s disposable
income,especiallyinruralareas.
Moreover,unlikelastyear,there
was no pent-up demand (in the
wake of the second Covid wave)
to support jewellery sales this
time around. A hike in the
import duty from 10.75% to
15% raised prices of the pre-
cious metal, weighing on
demand, they added. A weak
rupee, too, further pushed up
prices of gold,which is usually
imported.
Despite some easing in
recent weeks,gold prices rema-
ined elevated. In Delhi, prices
were ruling at `50,139 per 10
grams on Saturday, excluding
taxes, higher than `47,644 on
Dhanterasdayin2021.Usually,
about 25-30 tonne of gold is
People shop for gold ornaments at a jewellery showroom
during Dhanteras in Mumbai
sold on Dhanteras day. Never-
theless, organised sector jew-
ellers had a lot to cheer about
this Dhanteras.
Suvankar Sen, managing
director at Kolkata-headquar-
tered Senco Gold & Diamonds,
saidhiscompanyhadwitnessed
a surge in pre-bookings this
year. “Footfalls at stores since
morning have been very good.
Ticket sizes have been margin-
allylowerthanthatoflastyear’s.
Sales of diamond jewellery,
especially the light-weight
everydaywear,havebeengrow-
ing.” Sen added: “We are wit-
nessing a surge in demand for
men’s jewellery, especially
chains andrings.”
Aditya Pethe, director at
WHPJewellersthathasstoresin
Maharashtra, Goa and Indore,
said sales were 20-25% higher
than lastyear.
VaibhavSaraf,directoratAis-
shpra Gems& Jewels,one of the
largest jewellers in Uttar
Pradesh,said,“All our stores are
working at peak capacity with
REUTERS
waiting times exceeding 20
minutes!Atthisrateandlooking
at the ticket size,we are expect-
ing a growth of around 15%
compared to last year’s
Dhanteras.”
Shrey Mehta, director at
Pooja Diamonds that has pres-
enceinGujarat&Mumbai,said,
“Wesawatleasta10%increase
in our festive sales, compared
with the pre-pandemic Dhan-
terasweekin2019.Ithasbeena
good festival season and as the
wedding season continues,we
are expecting decent footfall in
ourstores up to January.”
SomasundaramPR,regional
chief executive officer(India) at
the World Gold Council, said
seasonal gold demand is poised
to be strong on a par with pre-
covid levels, as suggested by
anecdotal feedback from jew-
ellers. “However, the current
yeardoesnothavethebenefitof
a pent-up demand and higher
savings caused by lock-down
thatassistedlastyear’sseasonto
post a record demand,” he said.
companies, to bolster the
country’s audit framework
and prevent frauds,according
to sources. Such a move will
only harm the audit quality
instead of improving it, they
have argued.
Commenting on the
panel’s report that was sub-
mitted with finance and cor-
porate affairs minister Nir-
malaSitharamaninMarch,the
big auditors have now stated
that large and complex multi-
national corporations (MNC)
require auditors with wide
geographical coverage and
expertise. A substantial gap
between the resources and
capabilities of firms involved
in a joint audit can, therefore,
potentiallycompromiseonthe
audit quality, even when such
an exercise raises the costs for
the auditee.The comments are
part of the latest stakeholder
views sought by the MCA.
In a joint audit, two or
more firms conduct the audit
of a company and produce a
single report. At present, the
joint audit is largely volun-
tary in nature, except for
banks and public-sector
units. Last year, the Reserve
Bank of India made it manda-
tory for financial institutions
having an asset size of
`15,000 crore or more to
undertake joint audits.
The big auditors’ opposi-
tion to joint audits pits them
against the Institute of Char-
tered Accountants of India
(ICAI), which has endorsed
the idea.Even industry bodies
like the CII have argued
against the joint audit pro-
AUDIT FIRMS’ ARGUMENT
■ Big auditors have
stated that large and
complex multinational
corporations require
auditors with wide
geographical coverage
and expertise
■ A substantial gap
between the resources
posal, saying it doesn’t guar-
antee more transparency.The
audit market is currently
dominated by the big four —
EY, PwC, Deloitte and KPMG.
The MCA is planning to
introduce a Bill to amend the
Companies Act in either the
winter or the Budget session
of Parliament, sources told
FE. Tightening the audit
framework is going to be one
of the key amendments.
According to the extant Com-
panies Act, carrying out a
joint audit is the prerogative
of the company’s members.
Some of the big auditors
have argued that MNCs often
require auditors that are pre-
sent across countries, and
having a network audit firm
across the group leads to effi-
cient communication among
management, auditors and
all the executives in charge of
corporate governance.
Mandatory joint audits will
exacerbate the situation for
them, as the number of audit
and capabilities of firms
involved in a joint audit
can, therefore,
potentially compromise
on the audit quality
■ The comments are
part of stakeholder
views sought by the
corporate affairs ministry
firms with such vast reach,
expertise and resources is
very limited, they added.
Moreover, mandatory joint
audits, on top of the elevated
reporting requirements under
theCompaniesAct,willonlybite
into the senior management's
time,the auditors have said.
A former ICAI president,
however, said: “The main
issue is that big auditors fear
theywill lose out,as audit fees
will be shared among the
auditors involved. Industry
chambers are against it
because joint audit will raise
the costs for their member-
companies.”
“But any such system will
not just ensure greater trans-
parencybutalsogeneratebusi-
ness opportunities for a larger
pool of auditors.So,the ICAI is
supporting it,”he added.
An email sent to the ICAI
on October 19 for the views of
its president,Debashis Mitra,
on the joint audit proposal,
didn’t elicit any response.
secretary Rajesh Verma, had
presented a plethora of sug-
gestions, including the
mandatory joint audit for
mainly large companies.
The panel had suggested
that the government will
determine the class of com-
panies that will have to con-
duct joint audits. It will also
fix the responsibility of each
of the auditors involved.
Citing its interaction with
some of the companies with
joint auditors, the CII has told
the government that they do
not see any benefit from joint
audit.“…instead,there is a con-
cern about risk due to none of
the joint auditors seeing the
whole audit,”it has said.
It has also pointed out that
an expert group under former
finance secretary Ashok
Chawla “found that joint
audits impose unnecessary
costs on companies, exacer-
bateratherthanmitigateaudit
risks,anddonotencouragethe
type of resource- and exper-
tise-sharing that benefit
smaller firms”.
According to the Interna-
tional Federation of Accoun-
tants, joint audits are cur-
rently required in 55
countries, with France being
the only major jurisdiction
that follows it; the European
country requires such audits
for all companies that pre-
pare consolidated financial
statements. But some others
like Canada and Denmark
discontinued the joint audit
requirement in 1991 and
2005, respectively, on the
grounds that it's expensive
and ineffective.
Ashima Goyal
RESERVE BANK OFIndia(RBI)
Monetary Policy Committee
(MPC) member Ashima Goyal
has attributed the rise in tax
collections to demonetisation
and said that it will help the
nation move towards the ideal
situation, where low taxes are
levied on a large base.
On November 8, 2016,
PrimeMinisterNarendraModi
announced the demonetisa-
tion of old `1,000 and `500
banknotes, and one of the key
objectives of the unprece-
dented decision was to curb
black money flows and pro-
mote digital payments.
Noting that demonetisa-
tion had short-term costs but
some long-term benefits,
Goyal said it enhanced digiti-
sationandformalisation inthe
economyand reduced tax eva-
sion, although all this has fur-
ther to go.
“Itcontributedto the buoy-
ancy in taxes the country is
benefiting from today. This
helps us move towards the
ideal of low tax rates on a large
base,”she told PTI.
The tax department on
October 9 said that the gross
collection of tax on corporate
and individual earnings
jumped nearly 24% so far in
the current fiscalyearto `8.98
trillion. PTI

Pune
WWW.FINANCIALEXPRESS.COM MONDAY, OCTOBER 24, 2022

FINANCIAL EXPRESS COMPANIES 3

● 33,000-35,000 UNITS TO BE LAUNCHED ACROSS SEVEN CITIES Future Retail: Deadline for bids extended
Diwali sparkle for realtors: New THE DEADLINE FOR submis-
sion of expressions of interest
(EoIs) for debt-ridden Future
Retail (FRL) has been extended
Group firm undergoing a cor-
porate insolvency resolution
process (CIRP),the last date for
the prospective buyers to sub-
EoIs was October 20,2022.
Now,a final list of PRAswill
be published on November20,
2022 and the deadline for the

residential launches may rise 15%

by almost two weeks to mit their EoIs is November 3. submission of the resolution
November 3. Earlier, the last date for the plan is December 15, 2022, as
As per the modified invita- prospective resolution appli- perthe modified invitation for
tion of EoI for the Future cants (PRA) for submission of submitting EoI. PTI

SHUBHRA TANDON
New Delhi, October 23
LAUNCHES OF NEW residen-
tial units are expected to rise
10-15% this Diwali over last
year, with nearly 33,000-
35,000 units to be launched
across seven cities in the coun-
try. With the average size of a
unitbeing800squarefeet,this
wouldmeanagood26-28mil-
lion square feet of residential
space getting launched in just
the period around the time of
the festival.
Last year, there were a total
of58,300unitslaunchedinthe
entire festive quarter of Octo-
ber-December, and the
launches during Diwali con-
tributednearly51%ofthetotal
units launched, according to
data sourced from Anarock
Research. There were around
29,940unitslaunchedlastyear
during the Diwali period
between October 15 and
November 15, across the top
seven cities, altogether. Diwali
was on November4 lastyear.
If the launch rate is any-
thing to go by, there would be
upto70,000unitslaunchedby
developers across these cities
by December, and with 800 sq
feet as the average unit size,
GOOD PROSPECTS FOR REALTY
■ With the average size
of a unit being 800
square feet, this would
mean 26-28 million
square feet of residential
space getting launched
in the period around the
time of Diwali
that would mean approxi-
mately56millionsqfeetofres-
idential space being launched.
Developers have main-
tained an optimistic stance
towards sales during Diwali,
and are hoping that the robust
sales momentum seen in the
first nine months of 2022 will
accelerate with festivities
continuing.
■ Last year, there were a
total of 58,300 units
launched in the entire
festive quarter of
October-December, and
the launches during
Diwali contributed
nearly 51%
“We are delighted to see
continued robust sales num-
bers.Theyearhas started really
well and we have achieved
numbers as per our plans. We
have great momentum going
and spirits are high within the
team, to achieve our next level
ofgrowth.Weareexcitedtosee
new launches from various
geographies,whichwillbecon-
tributing to sales in the quar-
terstocome,”saidIrfanRazack,
chairmanandmanagingdirec-
tor,Prestige Group.
Niranjan Hiranandani,
managing director, Hiranan-
dani Group, told FE that the
company is gearing up to
launch a good 1.5-2 million
square feet of residential
space, a month after Diwali,
spread across its micro-mar-
kets of Powai, Thane and Pan-
vel in the Mumbai Metropoli-
tan Region. “We are very
bullish on the residential real
estate sector over the next 10-
12 months,”he said.
Another Bengaluru-based
developer, Puravankara,
achieved its highest ever sales
value of `793 crore for the
July-September quarter, and
this was achieved along with a
consistent increase in average
price realisations, the com-
panysaid in its recent business
update for the second quarter.
“The company is on track for
its launch pipeline of over 15
million square feet and doing
necessary investments for the
same,”it said.
“Festive seasons are
marked by profound happi-
ness and excitement for the
buyers who see it as an auspi-
cious time to make high-value
purchasessuchashomes,vehi-
cles and ornaments made of
precious metals.The success of
the real estate sector is wholly
contingent upon the prevail-
ing sentiments of homebuy-
ers.This makes the festive sea-
son a time of optimism and
hope for the Indian real estate
market,” said Sanjay Dutt,
managing director and CEO,
Tata Realtyand Infrastructure
Limited (TRIL).
Another Mumbai-based
developer, Sunteck Realty, is
also looking at a string launch
pipeline going ahead. The
company acquired a land par-
cel of about 7.25 acres in Mira
Road, a northern suburb in
the Mumbai Metropolitan
Region,under the joint devel-
opment model. The project is
estimated to have develop-
ment potential of about 2.5
million sq feet built up area
with a revenue potential of
around `3,000 crore. “Post
pandemic,we have done mul-
tiple acquisitions to the tune
of 25.5 million sq feet in Bori-
vali West,Vasai West,Shahad-
Kalyan, Vasind, Pen-Khopoli
and now, Beverly Park and
Mira Road,” it said in a recent
business update.

More volumes, lower costs to boost H2: Seshagiri Rao

RAJESH KURUP
Mumbai, October 23
THE GLOBAL SITUATION on
thesteelpricingfrontisnotvery
encouraging, with prices in
Europe,theUSandChinaonthe
decline. However, India is in a
better position as production
and demand are on the rise.
With momentum expected to
pick up,the second half (H2) of
thisfiscalwouldbemuchbetter
for the sector, says JSW Steel
jointmanagingdirector&group
CFO Seshagiri Rao MVS.
“The prices of steel have
come down globally, including
in Europe, China and the US,
leading to a cut in supply by
thesecountries.Indiaisinabet-
ter position because we are
recording a rise in production
and demand,and steel prices in
the country are not going up,”
Rao told FE in an interaction.
Ontheglobalfront,supplies
are getting adjusted with pro-
ductionalreadylowerby68mil-
lion tonne,and steel prices may
be stable in the future.
“Steel prices may not go
downanyfurtherasironoreand
cokingcoalarenotgoingdown,
and that’s why the downside to
steel is less.”
“AsfarasIndiaisconcerned,
H2wasalwaysbetterthanH1as
demand will pick up post mon-
soon and post the festival sea-
son. The fourth quarter is the
best of the four quarters,while
the momentum will start pick-
ing up from Q3. Coking coal
prices are now lower than Q2,
and lower costs will result in
highervolumes.Morevolumes,
lower costs and a good demand
willresultinagoodH2,”hesaid.
In the short term, there
seems to be a slowdown in the
global economy, impacted by
inflation and elevated energy
costs.There are bottlenecks on
the supply side and under-
investment in energy and
attempts to moderate or kill
demand.“Now there is the fear
of stagflation or eventually
recession.”
Onitspart,JSWSteelhasput
its plans to sell off its loss-mak-
India is in a better
position because we
are recording a rise
in production and
demand, and steel
prices in the country
are not going up.”
SESHAGIRI RAO,
JSW STEEL JOINT MD AND
GROUP CFO
ing facilities in the US on the
backburner.
“Wewillcontinuetooperate
it as this is not the right time to
sell an asset. Now, the US gov-
ernment has announced an
inflation-reductionprogramme
on infrastructure spend, and it
wouldbeamatteroftimebefore
things would get normalised
evenin the US,” Rao added.
Out of the total capex spend
of`15,000croreearmarkedfor
the current fiscal,the company
hasalreadyspent about `6,800
crore in H1 of the fiscal and the
remainingwillbeutilisedinH2.
“There will be no further
slash of capex this year,” he
added.
Atthestartofthisfiscal,JSW
Steel had a capital outlay of
`20,000 crore for the year, an
increase from `15,000 crore
spent in FY22. This, however,
wascutto`15,000croreonthe
backoflowercashgenerationin
June quarter.
JSWSteelwasalsolookingat
expanding its production
capacities in India by adding
another 10 million tonne per
annum(mtpa)andincreasingit
to 37 mtpa byFY25.Thiswas to
be mainly funded through
internal accruals.“There is no
change in growth capex,” he
said, referring to expansion of
production capacities.
On the cheap import of
Russiansteel,hesaidtherewere
about six incidents in Q2,but it
is still not a concern for the
industry.
JSW Steel has deployed 16
rakes so far under the Liber-
alised Special Freight Train
Operator Scheme and has
ordered another12 rakes to be
deployed in the next 18
months.
Nuvama Wealth Management Limited
(Formerly known as Edelweiss Securi�es Limited)
Corporate Iden�ty Number : U67110MH1993PLC344634
Regd. Off: Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai - 400 098 Tel: +91-22-4009 4400
Consolidated Financial Results for the quarter and half year ended September 30, 2022
(` in Crores, except per share data)
Quarter Ended Half Year Ended Year Ended
Par�culars September June September September September March
30, 2022 30, 2022 30, 2021 30, 2022 30, 2021 31, 2022
(Audited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Audited)

1 Total income from opera�ons 565.79 462.83 442.63 1,028.62 817.16 1,783.31

Oyo starts 2 Net Profit / (Loss) for the period (before Tax,
Excep�onal and/or Extraordinary items)
113.48 68.65 111.02 182.13 192.16 303.82

probe after 3 Net Profit / (Loss) for the period before Tax
(a�er Excep�onal and/or Extraordinary items)
113.48 68.65 111.02 182.13 192.16 935.45

couple filmed 4 Net Profit / (Loss) for the period a�er Tax
(a�er Excep�onal and/or Extraordinary items)
85.26 47.05 93.37 132.31 148.38 857.38

in hotel 5 Total Comprehensive Income for the period

[Comprising Profit / (Loss) for the period
86.18 48.65 93.23 134.83 148.68 857.14

(a�er tax) and Other Comprehensive Income

OYO HAS INITIATED an inter- (a�er tax)]
nal probe after Noida Police 6 Paid-up equity share capital 35.04 35.04 34.73 35.04 34.73 17.17
arrested two people who (Face Value of ` 10/- Per Share)
allegedly placed a hidden cam-
7 Reserves (excluding Revalua�on Reserves) 1,998.22 1,905.73 1,608.76 1,998.22 1,608.76 (380.72)
erainahotelroomandfilmeda
couple,officials said. 8 Securi�es premium account 2,718.42 2,718.42 1,072.36 2,718.42 1,072.36 492.30
Thetwoaccusedhadbooked 9 Net worth
1
2,064.91 1,972.53 1,716.36 2,064.91 1,716.36 1,912.85
the same room in the Phase 3
police station area last month 10 Paid-up Debt Capital / Outstanding Debt2 5,027.75 4,532.00 2,086.41 5,027.75 2,086.41 3,548.95
where they placed a hidden 11 Outstanding redeemable preference shares 14.50 14.16 14.66 14.50 14.66 15.34
camera before checking out. (Face Value of ` 10/- per share)
After a week, they booked 3
12 Debt Equity Ra�o 2.43 2.30 1.22 2.43 1.22 1.86
the same room and took the
cameraoutwhichhadrecorded 13 Earnings Per Share (`) (Face Value of ` 10/- each)
intimate moments of the cou- - Basic (Refer note 6) 24.33 17.18 26.89 42.35 42.73 499.33
ple,officials said.
Additional DCP (Central - Diluted (Refer note 6) 24.33 17.18 26.65 42.35 42.34 244.67
Noida) Saad Miyan Khan said 14 Capital Redemp�on Reserve 11.74 11.74 11.24 11.74 11.24 11.64
the duo had tried to extort 15 Debenture Redemp�on Reserve 20.78 20.78 - 20.78 - 20.78
money from the couple after 4
threatening to release their 16 Debt Service Coverage Ra�o 0.12 0.08 0.13 0.20 0.21 0.35
video online. 17 Interest Service Coverage Ra�o5 2.14 1.86 2.95 2.01 2.87 2.13
WhileaccusedVishnuSingh 1
Net worth = Equity share capital + Instruments en�rely equity in nature + Other equity
and Abdul Wahab were held, 2
Paid-up Debt Capital / Outstanding Debt = Debt securi�es + Borrowings (other than debt securi�es) + Subordinated liabili�es
policealsoquestionedthehotel 3

4
Debt-equity Ra�o = Total debt (Debt securi�es + Borrowings (other than debt securi�es) + Subordinated liabili�es) / Net worth
staffovertheincidentbutsofar Debt Service Coverage Ra�o = (Profit before tax, Excep�onal items and Finance cost excluding IND AS 116 impact) / (Finance cost excluding IND AS 116 impact + Principal
repayment in next six months)
theirrole has not been found. 5
Interest Service Coverage Ra�o = Profit before tax, Excep�onal items and Finance cost excluding IND AS 116 impact / Finance cost excluding IND AS 116 impact
“Thehotelanditsstaffwere
Notes:
not found involved in the inci-
1. On August 18, 2022, the Company has changed its name from Edelweiss Securi�es Limited to Nuvama Wealth Management Limited.
dent so far. The accused duo
2. The above is an extract of the detailed format of quarterly and half yearly consolidated financial results filed with the Stock Exchange in accordance with
had stayed in the hotel in the Regula�on 52 of the SEBI (Lis�ng Obliga�ons and Disclosure Requirements) Regula�ons, 2015 as amended (the 'Lis�ng Regula�ons, 2015') and the
past also and the police are Accoun�ng Standards specified under sec�on 133 of the Companies Act, 2013 read with the Companies (Indian Accoun�ng Standards) Rules, 2015 as
contacting the guests who amended and the relevant provision of the Companies Act, 2013, as applicable. The full format of the consolidated financial results are available on the
have stayed there in recent website of the Stock exchange (www.bseindia.com).
past to confirm if anyone else 3. For the other line items referred in regula�on 52 (4) of the LODR Regula�ons, per�nent disclosures have been made to the Stock Exchange
(www.bseindia.com).
also got an extortion call,”
4. The above consolidated financial results of the Company and its subsidiaries and associate (together referred to as 'Group') for the quarter ended and half
ADCP Khan told PTI. year ended September 30,2022 have been reviewed and recommended by the Audit Commi�ee and approved by the Board of Directors at their
Thoughtherewasnoofficial respec�ve mee�ngs held on October 21, 2022.
comment from Oyo over the 5. The above consolidated financial results for the quarter ended and half year ended September 30, 2022 have been subjected to audit by the Statutory
episode, people associated Auditors of the Company and the auditors have issued an unmodified audit report.
with the company said they 6. Earnings per share for the quarters ended September 30, 2022, June 30, 2022, September 30, 2021 and half year ended September 30, 2022, September
were internally probing the 30, 2021 are not annualised. Earnings per share is calculated on Net profit for the period which includes profits from discon�nuing opera�ons.
matter.
For and on behalf of the Board of Directors
“Oyo does not operate any
hotels or guest houses, it only
lists verified properties on its Sd/-
platform and provides IT- Ashish Kehair
based support to them,” a Managing Director & CEO
source said. —PTI Mumbai, October 21, 2022. DIN: 07789972

Pune
 4 FINANCIAL EXPRESS
eFE
MONDAY, OCTOBER 24, 2022
● CYBERSECURITY
Zero Trust is a digital business enabler Why it’s a big deal
Smaller firms are now
increasingly adopting
this security model
SUDHIR CHOWDHARY
BLAME IT ON the pandemic but
shiftstowork-at-homeandback-to-
office along with greater depen-
dency on technology have thrown
enterprise IT teams in total chaos.
And,cybercriminals thrive in chaos.
Here’s a quick realitycheck.Arecent
report byIBM finds thatAsia is now
the most targeted region for cyber-
attacks,representing26%ofattacks
analysed in 2021. India features in
the top-three list with financial ser-
vices and manufacturing sectors
being the most targeted industries.
Furthermore,costofadatabreachin
India averaged `17.6 crore in 2022,
a 6.6% increase from 2021,reveals
Tushar Haralkar, security software
technical sales leader,IBMTechnol-
ogySales,India/SouthAsia.
Theonlywaytoprovidecompre-
hensive protection for users —
employees, customers, vendors,
partners — is to move security and
access controls to the cloud. In this
context,ZeroTrustapproachtosecu-
rity is seeing increasing adoption,
especially in environments that are
no longer contained within the tra-
ditional office network, but have
spread farbeyond.
“The pandemic has been both a
crisisandanopportunityforincreas-
TECH
BYTES
Airports to have
AI-enabled smart
hydration system
OVERTHEYEARS,waste generated
from plastichas becomea
worrisome problemworldwide.
The Central Pollution Control
Board (CPCB) estimates India’s
annual plasticwaste to be about 3.3
million metric tonnesyearly.There
are manycontributors to this
growing menace,including
airports that have always served
Gadgets
● ONEPLUS
NORD WATCH
Worth your
time and money
Impresses with its clean
design, strong battery,
smooth performance
SUDHIR CHOWDHARY
While smartwatches are still a few
years away from relegating the
mobile phone to the background,
consumers do want many of the
ubiquitous smartphone features —
receiving notifications,making and
taking calls, accessing apps —to be
put on theirwrist.Adecent price tag
is also one of the important wants.
OnePlus has tried to meet most
With Zero Trust approach, visibility, detection
& prevention work together to secure the most
valuable & sensitive data assets of firms.
TUSHAR HARALKAR,
SECURITY SOFTWARE TECHNICAL SALES LEADER,
IBM TECHNOLOGY SALES, INDIA/SOUTH ASIA
ing Zero Trust adoption among
enterprisesofallsizes,”saysHaralkar.
“WithZeroTrust,visibility,detection,
and prevention work together to
secure the most valuable and sensi-
tivedataassetsoffirms.Additionally,
smaller firms are using the Zero
Trust model to reduce compliance
costs and scope,” he adds.
With the Zero Trust approach,
breach costs are already being con-
trolled without adding more tech-
waterin plastic bottlesto patrons.A
recent tie-up betweenwater-tech
startup Boon (formerlyknown as
Swajal) andTravel Food Services
(TFS) is intendedto replaceplastic
bottleswith a sustainable,plastic-
free,smart hydration system at
airports.The system,called
WaterCubeS2,is designedto
deliveralkaline mineralisedwater
withoutmicroplastics,carbon
milesand plasticdumping by
embracing an intelligenthydration
system that leverages advanced
artificialintelligence tomonitor
waterqualityin real-time and
predictspotential maintenance
issues.“WithWaterCubeS2,people
can relyon a sustainable,plastic-
free drinkingwatersolution at
airportlounges and get 2x more
minerals thanregularplastic
bottledwater.Moreover,our
of the consumer preferences in its
first Nord Watch. The device
promises a fast and smooth experi-
ence, is made from waterproof and
weatherproof material, comes
equipped with a health and fitness
tracker, and a battery that can last
up to 10 days. Most important, it is
priced at a modest `4,999.It comes
in Midnight Black and Deep Blue
and is compatible withAndroid 6.0
and iOS 11 and above.
Myfirstimpression:NordWatch
is fast, smooth and beautiful.
Underneathagorgeousexterior,the
watch comes with a 1.78-inch
AMOLED display.Its speedyrefresh
rate of 60 Hz and HD resolution
nology.Infact,aspertheCostofData
Breachreport,organisationsinIndia
that are in the advanced stages of
adoptingtheZeroTrustmodelexpe-
rienced a total cost of `15.1 crore as
a result of a data breach as opposed
to organisations that have not yet
begun Zero Trust deployment and
have experienced a total cost of
`24.6 crore,Haralkarsays.
To be sure, Zero Trust is not a
product,itisanoverallsecuritystrat-
AI enabled smart hydration
system installed at airport
lounges
initiativewillreduce
environmentalhazardsand
improve passengers’healthwhile
theytravel to different places,” said
INTERESTED IN:
Amazfit GTS 3,
TicWatch GTS,
Noise ColorFit
SPECIFICATIONS
■ Display: 1.78-inch AMOLED
display
■ Watch case & strap: Zinc
alloy, silicon strap
■ Sensor: 3-axis accelerometer,
optical heart rate sensor and
blood oxygen sensor
■ Connectivity: Bluetooth 5.2
■ Battery: 230mAh, 10 days of
typical use
■ Estimated street price:
`4,999
complement your daily life with
ampleresponsetimeandacleardis-
play with a brightness level of 500
nits which reduces smear and blur
even under the sun. Staying con-
nected is an easyfeat asyou can link
the OnePlus Nord Watch to your
mobile through the N Health app.
Herein,you get full remote accessto
features such as receiving message
notificationsand controlling music
played on your phone.
Moving further,the NordWatch
is a prettyefficient fitness monitor.
It pairs up with the N Health app,
whichallowsyoutotrackyourover-
all state of health and monitordaily
DIGITAL
DANGERS
■ Asia is now the most
targeted region for
cyberattacks
■ Average total cost of a
data breach in India stood
at `17.6 crore in 2022
■ Financial services and
manufacturing are
targeted the most
■ Total cost of a data
breach for a firm in
the advanced stages
of Zero Trust
deployment is
`15.1 crore compared
to `26.1 crore for
those who have
not yet
taken the
Zero Trust
road
egythathastobealignedtobusiness
goals.As a first step to designing a
Zero Trust Architecture,it is impor-
tant to keep in mind the maxim
‘Never Trust,Always Verify’– which
is to never assume that any user,
application, device, or process is
trustworthy. Instead, continuously
evaluatewhethersomeoneorsome-
thingshouldhaveaccesstosensitive
data based on contextual informa-
tion.The second point is‘Least Priv-
Advait Kumar,the co-founderof
Boon.The startup has empowered
multipleoffices,hotels,and
factories to ditchplasticbottles and
adopt a pure hydration solution
throughits innovative technology,
Clairvoyant.
Techthatscans&clears
airpollutants
DEVIC EARTH,A Bengaluru-based
startup,hasregistered a patentfor
its pulsedradiofrequencyair
pollutioncontrol technologyin
India.Srikanth Sola,CEO andco-
founderof DevicEarth,saidPure
Skiesis oneof theveryfew
technologiesthat mitigate both
indoorand especiallyambient air
pollutionthrough pulsedwaves in a
Wi-Fi spectrum.This flagship
product uses pulsedradio
YOU
MAYALSO BE activities such
as step count-
ing, calorie
measure-
ment, and
sleep quality.
Pro 3 Alpha The Nord Watch
is equipped with
105 fitness modes. It
automatically logs in to your steps
when you go for a run or a walk.The
bestpart:thewatchgeneratesaper-
sonal health summary in less than
two minutes, ably displaying your
heart rate,stress levels,and oxygen
saturation (SpO2).
The Nord Watch is fully
equipped to handle whatever you
throw its way by being waterproof
and weatherproof with a high rat-
ing of IP68. It comes with a sturdy
metal frame which fortifies it
against falls. You can match your
daily style with over 100 wallpa-
pers available through the N
Health app.There is a reliable long-
lasting battery with 230mAh that
lasts up to 10 days of usage or 30
days of standby time. As using a
Bluetooth connection can take a
toll on battery life,the Nord Watch
lowers power consumption when
on Bluetooth. Its Bluetooth 5.2
doubles the transmission speed for
quicker data transfers.
Wrap up: For the most part, the
OnePlus Nord Watch ran smoothly
and quickly.Short battery life is my
biggest issue when it comes to
smartwatches but the Nord Watch
stands out with its marathon 10
days of usage.Though it’s a fitness-
focused watch, it takes a more
lifestyle approach. The design is
clean,the watch is elegant-looking,
there are plenty of health and fit-
ness tracking features to keep you
absorbed in this OnePlus creation.
Strongly recommended.
ilege’,which means providing mini-
mal access required to perform cer-
tainjobfunctions.Lastly,businesses
should‘Assume Breach’by identify-
ing threats and automating
responses that do not just stop the
immediate attack but dynamically
adapt access controls aswell.
It’s important to note, however,
that implementing Zero Trust by
itself is not the complete solution to
modernisingthesecurityposture.By
stackingmultiplesecuritytechnolo-
gies into one platform, extended
detectionandresponse(XDR)assists
in completing Zero Trust’s compre-
hensive security monitoring
requirements. By combining zero-
trustsecuritywithXDRprotections,
eventhemostdistributedworkforce
isprotectedacrossallusers,applica-
tions,and environments.
“As one of the leading providers
of enterprise security products and
services,IBM delivers XDRand Zero
Trust when it comes to aligning
strategy with business objectives.It
protects the data of users’ applica-
tionsandmodernisestheentireplat-
form by ensuring that it is a plat-
form-based approach,rather than a
point-based approach,” Haralkar
points out. Key aspects of its Zero
Trust offering are designed to put
security everywhere, so businesses
can thrive anywhere.“We align the
securitystrategytothebusiness,pro-
tectidentities,data,apps,endpoints,
andcloud,managedefencesagainst
growing threats and modernise
security architecture with an open
platform,” he summarises.
frequencytocreate a temporary
chargeon particulate matter
present in the air,causingthem to
collide,become heavierand fall to
the ground.Pure Skieshas
demonstrated results ofreduction
inlevels of PM2.5and PM10,the
majorand most harmful air
pollutants.Thetechnologyreduces
levels of PM2.5 andPM10 by33%-
90%,makingit an ideal choice for
industries,pollutedroadways,and
anyotherspace to combat ambient
airpollution,he said,adding,
“Getting patented in Indiawould
furtheropen multipledoors of
opportunityand also give an upper
handin the competitive market.”
The firm hasits manufacturing
unitat the central officein
Bengaluruand a teamofaround 40
employees including the research
anddevelopmentwing.
● REDMI PAD
A budget tablet
that works well
It has a stylish design
and good mix of
hardware and software
SHRUTI DHAPOLA
WHEN IT COMES to ‘budget’
tablets,veryoften,youwillfindthat
most brands are offering the same
specsatmoreorlessthesameprice.
In this category — `12,000-
`20,000 — finding a tablet that
stands out can be a challenge.And
this is what Redmi is hoping to
change with its Redmi Pad.The lat-
est tablet from Xiaomi’s sub-brand
packs the promise of good perfor-
mance with a stylish design. But is
that enough? Here’s ourreview.
What’s good?
The Redmi Pad might be an
affordabletablet,butthedevicedoes
not look like a ‘budget’ offering. It
comes with an all-metal body, the
camera module at the back looks
stylish and Redmi has even intro-
duced this in a Mint Green colour
option.Thebestpart:Itweighsonly
WWW.FINANCIALEXPRESS.COM
WHAT CIOS WANT
Keshav R Murugesh, Group CEO, WNS
CFOs’ top priorities, including driving
agility and resilience and creating a
future-ready finance function, are now becoming
an imminent reality.
● MOONLIGHTING
for companies
The question is also
about work formats
& hiring philosophies
■ UMA GANESH
THERE HAS BEEN a lot of debate
around moonlighting lately not
only among employers and
employees in India but their cus-
tomers overseas. The debate on
moonlighting has touched upon
several aspects including ethics,
contractual obligations as well as
the right of low-paid youngsters
toearnadditionalsumsofmoney.
It is important to note that
these three dimensions are inde-
pendentofeachotherandshould
notbeviewedthroughacommon
lens in the context of moonlight-
ing. Fundamentally, if the
employment contract clearly
states that the employee cannot
undertake any other assignment
with monetary returns, the case
formoonlightingsimplydoesnot
arise. It’s the legal and ethical
obligation of the employees to
standbythe contract.
The recent incident when
Wipro fired some employees in
dual employment or the recent
announcement by TCS about its
intenttotakestrictactionagainst
those moonlighting highlights
the concerns of the industry.
The hard work, sincerity and
diligenceofIndianITprofession-
alshavebeenappreciatedatevery
critical juncture the world has
experienced — whether it was at
the time of surmounting the
problem of coding around Y2K
and transitioning smoothly in
circa2000orthetoughtimesher-
alded by Covid-19 requiring
overnight abilities of large and
smallcorporationstogodigitalto
service their customers — the
world has recognised the
immensevalueofIndianITtalent
to successfully handle such criti-
cal situations. If the Indian IT
SPECIFICATIONS
■ Display: 10.2-inch
(2000x1200) display, 90Hz
refresh rate
■ Processor: MediaTek Helio
G99 chipset
■ Operating system: Android
12 with MIUI 13
■ Memory & storage: 3GB +
64GB, 4GB +128GB, 6GB
RAM+128GB
■ Cameras: 8MP (rear), 8MP
front camera
■ Battery: 8000 mAh battery,
18W fast charging
■ Estimated street price:
`14,999 (3GB+64GB), `17,999
(4GB+128GB), `19,999
(6GB+128GB)
465gram—that’slessthantheiPad
(9th gen)— and is not bulky.
The Redmi Pad’s display itself is
excellent, especially if you are buy-
ing this tablet from an entertain-
industry,whichtouched$200bil-
lion revenue in 2021,has to grow
to $350 billion by 2021-26, the
primarystrengthofourtalentand
intenttobuildandenhancetrust-
worthy partnerships for mission
criticalapplicationsandproducts
would be paramount.
For individuals who wish to
work on more than one assign-
mentatatimeandforcompanies
who wish to draw upon diverse
talent,the gig format of working
without being bound byemploy-
mentcontractsgivesflexibilityto
all the stakeholders. Bringing in
transparency and encouraging
the workforce to be aligned with
thepoliciesandemploymentfor-
mats is absolutelyessential.
Thequestionoflowsalariesfor
freshers cannot be the rationale
for moonlighting as each com-
panyhas built its business model
around employment strategies
that best suit them and theircus-
tomers. Employees should be
encouraged to discuss theirareas
ofinterestsandemployersshould
form views on the likely conflicts
to their business or renegotiate
the contracts and their compen-
sation in order to permit them to
share their time between organi-
sationsifthatsuitsthephilosophy
ofthebusinessanditscustomers.
In summary, it’s not just the
question of how to prevent
employees from moonlighting
that requires attention,the ques-
tion is also about the hiring phi-
losophy of businesses and their
work formats that require to be
addressed together in order to
bring clarityto all stakeholders.
The writeris chairperson,
GlobalTalentTrack,a corporate
training solutions company
ment perspective.The tablet comes
with quad speakers and Dolby
Atmos certification,which means
the audio qualityis quite good.
The Redmi Pad runs MIUI 13
with Android 12 and will get two
years of software updates, which
means Android 13 and 14. It will
come with three years of security
updates as well. The tablet works
fine with basic daily tasks and
some gaming. But the perfor-
mance is not all perfect.
The device also comes with an
8MPfrontandrearcamera.Therear
cameracontinueswithadocument
mode which users will appreciate.
ThiswasseenontheXiaomiPad5as
well.I’mnotsomeonewhorelieson
thetabletforphotos,butthecamera
is good enough for taking pictures
inbrightlight.Thedocumentmode
remains very useful when taking
pictures of notes,etc.
Thetablethasan8000mAhbat-
tery with 18W charging support.It
will take around four hours to get
this to 100% — presuming you are
totallyoutofcharge.Thebatterywill
easily last more than two days even
with the most heavy-duty usage,
including a lot of gaming, binge-
watching shows,etc.
What’s not good?
There are times when there’s a
slight lag or stutter as you open the
multitaskingwindoworevenwhen
switching between apps. I played
Asphalt 9 on the tablet, which
worked fine, but more resource-
intensivegameslikeGenshinImpact
just don’t look so great and can be a
struggle.Buttobefair,it’snotsome-
thingIexpectatabletlikethistorun
smoothly as the experience is not
designed forthe biggerscreen.
Should you consider it?
When it comes to picking a
tablet,software and hardware both
play a critical role.With the Redmi
Pad,bothworkwell in sync,though
the performance is perhaps not all
that it is hyped up to be.Where the
RedmiPadenjoysanadvantageover
some others in this segment is the
batteryand the display.
Pune
 5 FINANCIAL EXPRESS
Investor
MONDAY, OCTOBER 24, 2022
● ITC RATING: ADD
Strong show, quarter after quarter
Cigarette segment
witnessed revenue
growth of 23.3%
ITC REPORTED ANOTHER well-
rounded quarter with (i) cigarette
revenuegrowthof23.3%y-o-y,led
by about 20-21% volume growth
(3-year volume CAGR of 5%) and
Ebit growth of 23.6%y-o-y(3-year
CAGR of 4.8%),(ii) FMCG business
growth of 21% y-o-y and flat Ebit
margin y-o-y (6.6%) despite infla-
tionary headwinds, (iv) new
decadal-high paperboards Ebit
margin,and (v) consecutive `5 bn+
topline quarter for hotels. We
upgradeFY2023-24EPSestimates
by 5-6%, roll over and revise FV to
`380 (from `337).Maintain ADD.
Q2FY23—ahead of expectations
on all fronts
Revenues grew 26.7% y-o-y to
`161.3 bn, 1.9%. Gross revenues,
excluding the agri business, were
4.6% above our estimates. Ebitda
grew 27.1% y-o-y to `58.6 bn,
6.8% ahead of our estimate. Staff
costs grew 24.3% y-o-y and other
expenses grew 24.8%y-o-y.
Segmental— healthy growth
across segments
Cigarette net revenues/Ebit
grew23.3%/23.6%y-o-y(3-yrEbit
● ASIAN PAINTS RATING: BUY
Margin paints a dull shade
Extended monsoon
impacted demand for
exterior paints in India
ASIAN PAINTS (APL) reported
weak Q2FY23 margins, missing
consensus/ourEbitda estimates by
23%.Revenue was in line with our
estimate,but missed consensus by
5%. Demand challenges from
extended monsoon deferred exte-
rior paints demand. This was par-
tially offset by an early festive sea-
son, propelling the decorative
segment to record double-digit
volume growth. Home décor
growth was slower as bath-fittings
grew 10.9%/14.2% y-o-y. High
priced inventory and product mix
Education
● NATIONAL CURRICULUM FRAMEWORK
Essential life skills top the agenda
The NCF addresses
perpetual learning
gaps and those made
worse by the pandemic
■ ASHOK PANDEY
ONE OFTHEcriticalcomponentsof
the National Education Policy(NEP)
2020 is excellence forall,consistent
with realising an equitable, inclu-
sive and plural society. A robust
EarlyChildhoodCareandEducation
(ECCE)is theonlyroutetoachieving
this aspiration. The release of the
first-everintegrated framework for
children between 3 and 8 years of
age—the National Curriculum
Framework for the Foundational
Stage (NCF)—is a historic step.
Over the years, an informal
sociocultural practice of raising
childrenwithvaluesandsocialskills
has given way to more formal insti-
tution-basedcareandeducationfor
early childhood. The NCF draws its
inspiration from the pioneering
works of Gijubhai Badheka,Tarabai
Modak,MariaMontessori,Friedrich
Froebel and Mahatma Gandhi’s
ideas of basic education.
The guiding principles of the
CAGR at ~4.8%), 3-4% ahead of
expectations.We estimate 21% y-
o-y growth in volumes.A stable tax
regime and actions against illicit
trade aided volume growth. FMCG
revenues grew 21% y-o-y, 8.1%
above our estimate. FMCG Ebit-
margin was flat y-o-y at 6.6%,
impressive in the context of signif-
icantRMinflation.ITC’sFMCGEbit
at `3.2 bn was 39% ahead of our
estimate. Key highlights: (i) robust
growth in staples and convenience
foods, driven by biscuits, atta and
noodles,(ii) strong performance by
discretionary/out-of-home cate-
gories, such as snacks, confec-
tionery, agarbattis and fragrances,
(iii) encouraging trends in Fiama
and Vivel range of personal wash
products,and(iv)strongtractionin
were instrumental in delivering
disappointing margins,but H2will
likely be better. Thus, we cut our
FY23e/FY24e EPS estimates by
6.8%/4.1%, rolling forward to
Q3FY24e with a revised target
price of `3,795.Maintain‘BUY’.
Growth drivers intact, margin
pain continues
What went well: APL saw strong
growth across segments with the
domestic decorative segment
growing double-digit in both vol-
ume and value terms despite sub-
dued demand due to extended
monsoon in July-August.APL wit-
nessed double digit CAGR for the
sixthconsecutivequarter.Itunder-
took 3% price hikes in Q2FY23 to
tackle inflationary pressures.
curriculum framework for the
foundational stage include a belief
in the child’s agency—the perfec-
tion within,as Swami Vivekananda
emphasised.Thisbelieftranslatesto
the ability of the child to learn and
excel irrespective of her birth or
background.The framework recog-
nisesthenaturalpresenceofcurios-
ity, exploration and observational
skills in young children.
The need for love, respect, trust,
value and importance is not onlyan
adult phenomenon. It is evidenced
by research that children learn the
best when they are fully engaged in
an environment of love and accep-
tance.The use ofmanipulatives and
a rich play store of experience, and
exploring materials and activities
helpdevelopconcepts,understand-
ing and problem-solving in early
stages.The NCF acknowledges that
content alien to a child’s experience
neither challenges their curiosity
nor inspires a love for learning.
The success of early childhood
education hinges on howfastwe do
awaywithrotelearningandbringin
a playbook replete with fantasy
building, roleplay, storytelling, art,
music, toy-based learning, nature
walks,field trips and play.
The NEP 2020 and its sequels—
the NCF,National Initiative forPro-
ficiency in Reading with Under-
standing and Numeracy (NIPUN),
Vidya Pravesh and Balvatika—have
come out against the backdrop of
correcting historical aberrations,
redesigning early child education,
and addressing the learning gaps
education and stationery products
business. Agri business’ revenue/
Ebit grew44%/16.6%y-o-y,led by
wheat, rice, and leaf tobacco
exports.The hotels segment’s rev-
enues grew 81.8% y-o-y to `5.36
bnanditregisteredEbitof`840mn
(KIE: `816 mn). Paperboards and
packaging revenues/Ebit grew
25%/54% y-o-y,aided by demand
revival across end-user segments;
the division recorded yet another
decadal-high Ebit margin (27.5%,
up 50 bps q-o-q).
We raise FY2023-24 EPS esti-
mates by 5-6%, roll over and
revise FV to `380; ADD
We raise FY2023-24 EPS esti-
mates by 6%, roll over and revise
SoTP-based FV to `380 (from
International business grew
15.3% y-o-y to `8.1 bn despite
headwinds across key markets.
Similarly, Ebitda margins grew
177bp y-o-y.APL announced elab-
orate capex plans – setting up of
VAE/VAM capacity with capex of
`21 bn and entering a JV to manu-
factureWhite Cementwith a capex
of`5.5bnoverthenextthreeyears.
What we did not like: Gross
margins slipped 200bp q-o-q with
continued stressfromelevatedraw
material prices. Similarly, Ebitda
margins contracted by 356bp q-o-
qledbylowgrossmargins,increase
in staff costs and other expenses
over this period.
Outlook and valuation
Demandgrowthdriversremain
both perpetual and those exacer-
bated by the pandemic.
The issue of the role of medium
of instruction in early childhood
education is dealtwith deftlyin the
NCFreleased byeducation minister
Dharmendra Pradhan. It states its
curricular goal,“Children develop
practical communication skills for
day-to-day interactions in two lan-
guages.” This mandates that kids
develop competencyin reading pic-
ture books and identifying objects
and actions, listening to ‘read
alouds’, responding to
questions, partici-
pating in shared
reading, and finally
emerging as independent read-
ersofbookswithtextandvisuals.
Giving space to lan-
guages spoken at home
and languages neces-
sary to navigate in a
larger universe,a new
approach to language
education aims to
optimise learning in
all domains,communi-
cationskills,both oraland
written, and socio-emo-
tional skills during early
years and throughout life.
The 360-page doc-
ument promises
updates will
continue as
the founda-
tional stage
NCFmerges
with the
full NCF for
Cigarette volume grew 20% y-o-y
as per our estimate (+5% 3-yr CAGR)
40 (%)
30
20
10 2 7 8 10 3
0
1 3 2
-10 -7 -5 -4 -11 -12 -8
-20
-30
-40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2
FY18 FY19 FY20
Source: Company, Kotak Institutional Equities
`337). We ascribe 15X December
2024E PE (14X earlier) to the cig-
arettes segment. In our view, fur-
ther re-rating warrants an accel-
eration in cigarettes Ebit growth
to high-single digit CAGR from
mid-single digit CAGR at present
(our base case), which in turn
hinges on (i) a stable tax regime for
a foreseeable future and
(ii) clamp-down of illicit trade by
enforcement agencies.
Highlights:
Cigarette business: The seg-
ment registered 23.3% y-o-y (3-yr
CAGR: 9.3%) revenue growth (20-
21% y-o-y volume growth as per
our estimate, implying +5% 3-yr
CAGR),led by stability in taxes and
enforcement agencies’ measures
Consistent double digit
volume growth continues
in Q2FY23
(Volume index)
200
20.3*
20.2*
20.1*
17.7*
15.8*
15.2*
150
100
50
0
Q1 Q3 Q4 Q4 Q1Q3 Q4 Q4 Q1Q2
FY21 FY22 FY23
Quarterly representation of
volumes sold on base of Q1 FY19
as 100 *% represents 3 year
compounded growth rate
Source: Company, Nuvama Research
intact,butneedtofactorintheearly
festive season, which could affect
Q3FY23 growth. We factor in the
Q2FY23missandweakerINRtocut
ourFY23e/FY24eEPSestimatesby
School Education.However,to initi-
atetransformationsintheECCE,we
need not go further than this com-
pleteplaybookcomprisingtheprin-
ciples,curriculum,pedagogy,assess-
ment, and the role of teachers,
parents and community. The NCF
promises to the present generation
to happily add to what the previous
generations have.
The author is a Delhi-based
educationist
ILLUSTRATION: ROHNIT PHORE
EXPERTVIEW
34
25 20
10 13 9
9
-36
FY21 FY22 FY23
against illicit trade.
FMCG business: The FMCG
business’ revenues grew 21% y-o-
y,led by (i) robust growth in staples
and convenience foods, driven by
biscuits,attaandnoodles,(ii)strong
performance bydiscretionary/out-
of-home categories, (iii) encourag-
ing trends in Fiama andVivel range
of personal wash products, and (iv)
strong traction in education and
stationeryproducts business.
Hotels: ITC’s hotels witnessed
anotherstellarquarteracross loca-
tions with overall revenues up
81.8% y-o-y and Ebitda margin at
29%. Segment Ebit margin stood
at 15.7% in Q2FY23 versus 4.1%
in Q2FY20.
KOTAK INSTITUTIONAL EQUITIES
6.8%/4.1% and roll forward to
arrive at a revisedTPof `3,795.
Q2FY23 conference call high-
lights:
■ Remains confident of gross mar-
gins returning to normal levels
gradually
■ Domestic decorative business
saw volume growth of 10% y-o-y
with 3-year CAGR coming in at
17.7% in Q2FY23
■ Rural demand outpaced metro
cities demand.Extended monsoon
impacted demand for exterior
paints, especially in South and
West regions
■ Setting up a new facility for VAE
and VAM production, which will
reduce import dependency,
enhance margins,get aggressive in
adhesives.
■ Set up a joint venture in UAE for
sourcingWhiteCement,withcapex
of `5.5 bn
NUVAMA RESEARCH
● 5G AND EDUCATION
Talent that can make you
job-ready for the 5G world
Phalgun Kompalli, the
co-founder of upGrad,
shares with FE the
skills needed to thrive
in the 5G era
VIKRAM CHAUDHARY
ACCORDING TO A study by PwC,
by 2030, 5G (the fifth-generation
technology standard for broad-
band cellularnetwork)ispredicted
to increase global GDPby$1.3 tril-
lionandIndia’sGDPby$42billion,
which would lead to higher
demand for 5G specialists across
industries that are expected to rise
significantly in the coming years.
“5G will lead to emergence of
new industries as well as impact
existing businesses and change
the way we do things,” Phalgun
Kompalli, the co-founder of
upGrad—an edtech start-up—told
FE. “Organisations will have to
streamline communications and
adapt to the new wave of connec-
tivitythatwillcreateextraordinary
levels of change within the work-
place, making a workforce that is
5G-ready a must.”
He added that the demand for
technical skills and experiencewill
be fuelled by the additional 3 mil-
lion jobs that 5G will create glob-
ally.“Some experts estimate that
5Ghasthepotentialtogenerateup
to $12.3 trillion in revenue across
a range of industries,”he said.
These new jobs will require
newer kinds of skills, said Kom-
palli,which include:
◗ Cloud-based solutions and
securityexpertise: In the 5G age,
any knowledge of software and
WWW.FINANCIALEXPRESS.COM
The cigarette segment registered 23.3% y-o-y
revenue growth led by stability in taxes and
enforcement agencies’ measures against
illicit trade
—Kotak Institutional Equities
● AXIS BANK RATING: BUY
Retail engine needs
to be accelerated
NIM expanded by
36 bps sequentially to
3.96% in second quarter
AXIS BANK’S (AXIS) Q2FY23 earn-
ings surpassed I-Sec and consensus
expectations by a wide margin
(>20%) with PAT at `53.3bn (up
29% q-o-q, 70% y-o-y). Beat was
across operating metrics, especially
withNIMssoaringasmuchas36bps
q-o-qto3.96%.NIIgrowthsettledat
31% y-o-y and 10% q-o-q. Core
operating profit was up 43% y-o-y
and 19% q-o-q adjusting for a trea-
suryloss of `0.86 bn.Credit cost too ■ Given that 39% of the loan
was contained at 16bps. ‘Opex to portfolio is EBLR-linked, 17% with
assets’ stayed put at 2.25% with 6-12 months MCLRreset,aswell as
<1.5% q-o-q rise in expenses. The gradual decline in RIDF invest-
quarter registered a much awaited ments and improved traction in
RoAat 1.8% and RoE at 18.5%. better-yielding focused product
Going forward, given moderate segments –we believe all these fac-
balance sheet expansion,we believe tors can support yields to offset
Axis needs to accelerate its retail TD deposit cost pressures.
engine to support asset growthwith ■ Declineinstresspoolto1.89%
the CD ratio now at 92%.Also, sus- and non-NPAprovisioning buffer of
tained efforts need to be made to 1.6% are reassuring of a moderate
drive‘cost to assets’below2% in the credit cost trajectory.
medium term. ■ Advances growth too has
This was the second quarter for gained pace with retail growing
which performance can simply be 22% y-o-y/3% q-o-q, SME scaling
described as focused earnings deliv- up 28% y-o-y/7% q-o-q and cor-
erypostabalance-sheetstrengthen- porate banking too contributing
ing phase. Surprise on NIM and vis- during the quarter with 7% y-o-y/
ibilityon sustainabilityof operating 6% q-o-q growth. Market share
performance compel an earnings gain in SME, Bharat banking, lead-
upgrade of 13%/8% for FY23e/ ership growth in card business,
FY24e.Maintain BUYwith a revised strengthening of transaction bank-
TPof `1,130. ing and growth in identified
focused retail segments will likely
How sustainable is the perfor- sustain the momentum.
mance and what are the levers
available forfurtheruplift ICICI SECURITIES
Retail and SME share in the overall pie
keeps on expanding
(%) Corporate Retail SME
100
90 13 13 13 13 12 12 11 11 9 9 10 10 9 10 10 10 10 11
80
70
60 48 49 49 50 52 52 53 53 53 53 54 54 54 56 55 57 59 58
50
40
30
20 39 38 38 37 36 36 36 36 38 38 36 36 37 35 35 33 31 31
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY19 FY20 FY21 FY22 FY23
Source: Company data, I-Sec research
endpoint securitywill be essential. connected devices.The expanding
As millions more devices enterthe ecosystem of interconnected
corporate environment,your net- items requires new mechanical
works will need to scale to handle engineering skills.
the rising traffic levels. To satisfy ◗ Electrical engineering:
the expectations of the 5G net- Engineers, in particular, will need
work, expertise in virtualisation to create systems with future-
and cloud-based technologieswill proof circuit designs forlowpower
be essential. usage. It will also be helpful if you
◗ Machine learning algo- have programming experience
rithms for big data: Businesses with microcontrollers.
will gather more data from linked One of the biggest hurdles to
devices and sensors as 5G is intro- overcome with 5G is its complex-
duced.To extract this big data and ity (5G devices will have a variety
create algorithms that will deliver of applications). Tech providers
insights and analytics from it to must solve obstacles related to sig-
optimise your business models nal spectrum,transmission meth-
and operations, you will require ods, security, network connectiv-
this expertise. ity, etc, because 5G provides a
◗GPSadvancementsandIoT- platform for numerous wireless
focused designs: Although many technologies to coexist. As 5G
smart gadgets, such as wearables technologybecomesmoreaccessi-
and smart cars,are location-aware ble, the demand and scope of job
and employ GPS technology, 5G creation will also increase. It’s
has the potential to revolutionise about time that our workforce is
this industry. The current design readyto take up this challenge and
conceptswill be replaced bysmart, upskill themselves for the future.
Pune
 6 FINANCIAL EXPRESS WWW.FINANCIALEXPRESS.COM
NATIONAL INTERESTS FIRST

Opinion MONDAY, OCTOBER 24, 2022

Chinese president Xi Jinping
Confronted with drastic changes in the
international landscape, especially external
attempts to blackmail, contain, (and) blockade...
China, we have put our national interests first

DBT: A proven success ● THE FUTURE IS NOW

WITH ROBOTS INVOLVED IN MANYASPECTS OF
Clear land titles and tenancy data HUMAN LIFE NOW, SEVERAL QUESTIONS ARISE
necessary to cover fertiliser subsidy

Invasion of the robots

C
ALLITA“LOGISTICALMARVEL”—astheInternationalMone-
tary Fund's (IMF) deputy director Paolo Mauro would—or a
potent fiscal elixir,but there can be no denying that the direct
benefit transfer(DBT) scheme has come to the aid of the coun-

T
HEWORLDISchangingonce
try's public finances and its people quite remarkably.The scheme's reach againforever.Theinvasionof
and spread have seen a phenomenal growth since its 2014 launch—sover- robotsisrightaroundthecor-
eign budgetary resources worth `25.7 trillion have been transferred till ner,anditheraldsyetanother
date,to as manyas 1.79 billion beneficiaries (manyare recipients of multi- powerful chapter in the
upcoming artificial intelligence revolu-
plebenefits).While58%ofthesearecashtransferstothebeneficiaries'Aad-
tion.It is now reported that over 3.5 mil-
haar-linkedbankaccounts,thebalancearein-kindbounties,therecipients
lionindustrialrobotsareinstalledalready,
ofwhich areverified and authenticated through the unique identification which is more than the population of
number.As many as 318 programmes are now integrated with the pay- every US city except New York and Los
ment-cum-reconciliation platform.The availability of a robust DBT plat- Angeles, according to the International
form was also one reason why India could manage the human distress Federation of Robotics.
caused by the Covid-19 pandemic without an implosion. Thanks to the First, about 200-500 billion parcels
additional welfare measures during the pandemic period, DBT transfers move around the world every year,
depending on how you count them.One
surged 45% year-on-year to `5.53 trillion in FY21.It is no surprise there-
of the leaders in the space of robotics is
fore that Mauro has advised other countries to emulate the Indian model Boston Robotics, staffed by Indian engi-
of targeted cash transfer to low-income people,instead of keeping“broad neers,and now owned 80% by Hyundai.
subsidies”that are fiscallyextravagant and economicallydebilitating. They have developed a new kind of robot
Awell-known proverb—“Necessity is the mother of invention”—would with vision called“Stretch”.Stretch could
best describe India's efficient adoption of DBT.The size of India's federal go inside massive containers and stretch
budget is just around 17% of the gross domestic product (before the fiscal out its arms to pick up 50-pound boxes
and effortlessly move them around and
expansioncausedbythepandemic,itwasinthe12-13%range),oneofthe placethem.Thecatchisthattheymustbe
lowest among G-20 countries (52% in the Euro area,44% in the US,47%
arranged in a particular way in the first
Japanand34%inSouthKorea).Moreover,four-fifthsoftheBudgetspend- place,for it to recognise and grab it.Their
ing is on the revenue side, leaving even less for growth-inducing capital otherfamousrobotis“Spot”,whichdances
expenditure and fixed asset creation. Given this limited fiscal strength, to songs in his free time when not busy
India had no option but to put a lid on the components of revenue expen- inspecting hazardous nuclear sites or
roaming forests to gatherdata.
diture that have risen relentlesslyoveryears. So,it sought to dispensewith Second,havingtakencareofabedrid-
subsidiestotheextentpossibleandalongsidestartedthecashtransfers,to denparentformanyyears,Icanvouchfor
work around the infamous systemic inefficiencies,sloth and leakage.The thefactthatoneofthetoughesttasksisto
country'sgloballycomparabletelecombandwidthandnetworks,efficiently liftthemup fromabedandtransferthem
regulated financial system,and itswidespread banking facilities aided the to a wheelchair or to the bath.It is sensi-
transition,but what came as a shot in the arm was strong political will. tive, and the patient is always scared of
whatdoctorscallasa“fallrisk”,whichcan
WherevertheDBThasbeenrolledout,ithasensuredthefundsreachthe
befatal.Japanhasinventedabear-shaped
intendedbeneficiaries,andledtoimpressiveofsavingsofover10%(nearly robot called Robear that can pick up
`2.5trillionsofar).Tobesure,DBT-enabledsavingsbetweenFY15andFY21 patientsand move them safely.
were as much as the Centre's expenditure on higher education during the Third,UR10,a coworking robot,costs
seven-yearperiod.Itneedstobeextendedtomoreareastoincreasethesav- about $25,000 and has replaced factory
ingsfurther.Subsidiesonfertilisersarethemoststicky,beinguniversaland workers on many shop floors, including
uncapped.Subsidised soil nutrients are being sold at retail outlets byiden- large retail giants such as Amazon,Wal-
mart, etc, to name a few.The World Eco-
tifying the beneficiaries via Aadhaar-enabled electronic points of sale nomic Forum estimates that by2025,85
machines. Direct cash transfers to the farmers' bank accounts and a cap- million low-level, repetitive jobs will be
ping of the subsidy based on land holdings would improve the largesse's losttorobots,but97millionnewoneswill
efficacy. Digitisation of land records and clear titles are prerequisites for be created.
thislong-pendingreform.Anotherstickingpointisthat,amongIndia's145 Fourth, Gita is a cute walking robot
millionfarmers,thereisasizeablesectionoftenantcultivatorswithnoland
titles.While ending subsidies could involve political stand-offs, logically,
the DBTmust be acceptable across the political spectrum.
tionofrobotsrapidly.Whatisonthehori-
zon are newrobotics playerswho provide
SRIVATSA an open-source robot architecture that
turns complex functionality into simple
KRISHNA APIs and come with built-in clouds to
arrange production deployments.
IAS officer. Views are personal. While how the rule of the robots will
Twitter: @srivatsakrishna
transformourlivesisquitemagical,italso
posessomepuzzlingquestions.First,this
worldwasdesignedforhumans,andhow
that collects and sorts groceries for you a guard,playmate forchildren,and doing the invasion of robots, say in another 10
and follows you around as you shop! Its simple household chores. years,willfitintothecurrentarchitecture
computer vision allows it to see, under- Lastly,duringthepandemic,duetothe remains to be seen. Second, there are
standandreacttoitssurroundings,espe- disruptionofhumanlife,companieswere questions about the ethics of machines
cially pedestrians. It is like having your forcedtoacceleratetheadoptionofrobot- which pose puzzling and serious ques-
personal valet or help following you ics.InthepilotprojectattheCoffeeBoard tions.Whatshouldanautonomouscardo
around asyou shop. of India during the pandemic,a software when confrontedwith the choice of run-
Fifth,inMarchthisyear,KodiakRobot- robotbyUiPath,oneoftheleadingrobot- ning over two pedestrians and killing
ics, one of the leaders in unmanned ics companies in the world,was experi- themversus saving the lives of 10 others
autonomoustrucks,achievedanewfeat.It mented with, and the results were in a potential car crash which it predicts
coveredabout6,500milesinhalfthetime extremely satisfactory.The issuance of just a few seconds ahead?Third,if robots
as a manned truck export certificates was join the workforce in hundreds of mil-
would, driving trucks Various studies predict automated with mini- lions, are we truly approaching an age
around the clock, but mal human interven- wherehumanbeingswillhaveenormous
that in the next 2-3
withahumansafetydri- tion, and the coffee leisure time at theirhands to enjoylife in
ver behind the wheel. years, the need for a industry was able to be a new Age of Hedonism and not be bur-
Driverless trucks do safety driver will no serviced with minimal dened by work itself, or will they find
everything that a longer be there, making disruption on this newer more complex more challenging
manned truck does, account.(Therewere,of jobs to keep themselves busy with?
suchasnavigatingdiffi-
driverless trucks course,disruptions due Fourth,when robots replace a hundred
cult turns,coming off a omnipresent to non-availability of million ormore repetitive low-level jobs,
rampontoafreeway,etc, labour and jams at there is bound to be increasing friction
withease.Wheretheydo ports,which too robots with unions, especially in organized
falter sometimes is when they see a mas- could potentiallysolvewith time). industries and sectors such as ports, air-
sive pileup of cars in front of them or Havinghadtheprivilegeoftouringthe ports,truckdriving,andfactoriesingen-
sometimes while navigating inside the Tesla factory in September 2015, I was eral, and this could lead to protracted
city. Various studies predict that in the stunned at the presence of more negotiationswith labour.
next 2-3 years, the need for a safe driver machines than human beings,then.I am Last but certainly not the least,what
willnolongerbethere,andwiththeongo- given to understand by the Tesla leader- happensiftherobotsexperiencesoftware
ing 5G revolution, this would make dri- shipthatsevenyearslater,itiscompletely bugsthatcauseerraticorevendangerous
verless trucks omnipresent. transformed,forthefactoryislargelyrun behaviour? What happens if they experi-
Sixth, Roomba,which came out two by machines now. Optimus, its newest ence a system overload and completely
decades ago,is a common sight in many Humanoid robot,is clumsy today, but in shut down? What happens if some virus
US households (and now in India), and anotherfiveyears,itwillbeworkingonits or malware gets into the robot and the
mops and vacuums floors unattended.It shopfloors and join other humanoid machine gets weaponised? How danger-
memorises the floor plan and can do this robotswho areaheadin the race. ouswillitbetothehumansaroundit?The
brilliantly, unattended, and can be trig- A recent article in the academic jour- answerliesburiedsomewhereinbetween
gered remotely if you are away for nal Robonomics shows that much of the Hollywood’s two extreme depictions of
extended periods. Likewise, Amazon’s world,especiallycountrieswithdeclining robotseitherasTerminator-likecreatures
Astro is present in manyhomes,acting as andagingpopulations,isseeingtheadop- orsaviours of the planet.

Multi-regulator sandbox must address gaps

DATA DRIVE SAIKAT NEOGI SHEHNAZ The standard operating protocol for the inter-operable regulatory
sandbox continues to rely on disparate sandbox frameworks of financial
AHMED regulators.This may be disadvantageous for businesses in case of
Households hold steady Fintech lead, Vidhi Centre for Legal Policy
Views are personal
differences in the primary and associate regulators’ requirements

Financial assets of households grew at 17.5% in FY21, at a faster kip than their
financial liabilities, which grew at 11.3%. On a stock basis, financial liabilities RBIHASRELEASEDastandardoperating testing processes of these regulators ARregulatoryrequirements.Forinstance, sectors—payments, securities, etc. Simi-
remained less than 40% of households' gross financial assets during the last procedure (SOP) for an Inter-operable before launching the product.This will whileRBIandIRDAIallowbothregulated larly, FCA has admitted innovations to
decade. Data from Reserve Bank of India show household credit-to-deposit Regulatory Sandbox (IoRS) prepared by hinderinnovation and raise unnecessary andunregulatedentitiestoparticipatein improve customer onboarding and KYC
ratio, which provides insight on financial stress/lack thereof in households, the Inter-RegulatoryTechnical Group on compliances for start-ups focusing on sandboxes, Sebi only allows regulated processes using technologies like
has been increasing since FY18 and touched 60.2% in FY20, suggesting that Fintech under the Financial Stability and innovations. The IoRS seeks to address entities.If Sebi is the PR,a non-registered blockchain and regtech solutions that
the household sector remains a net lender to the banking sector. DevelopmentCouncil.TheIoRSallowsthe these challenges of existing sandbox SebiapplicantmustexecuteanMoUwith leveragenewertechnologiestoassessthe
testingoffinancialproducts/servicesthat frameworks through a common applica- aregisteredentitytoapplytotheIoRS.For compatibility of financial products with
fallwithintheremitofmorethanonereg- tion window to approach financial regu- manyapplicants,itmaybechallengingto existing regulations or for better report-
ulator.This is an important development lators forcross-sectoral innovations. find an interested regulated entity.Con- ing. One can expect similar products for
Households see faster growth in gross financial assets...
1 Growth in gross financial assets (%)
forfintechinnovationthatoftenblurssec-
toraldemarcationsoftheIndianfinancial
As per the SOP, the regulator under
whoseremittheproduct’s
sumer protection measures also vary
acrossdifferentsand-
the IoRS testing. However, unlike the
applicantsintheUK,whohaveaclearand
system. However, the SOP does not ‘dominant feature’ falls boxes.While RBI and uniform regulatory framework from the
20
17.5 address important issues likelyto arise in willbethePrincipalRegu- RBI, IRDAI allow regulated Sebi envisage user FCA,applicants in Indiawill have to com-
16 testingcross-sectoralfintechinnovations. lator (PR),and the regula- and unregulated entities compensation,IRDAI ply with the regulations of the PR as well
13.3 12.9 13.5 13.2 12.8 Aregulatorysandbox(sandbox)allows tor under whose remit is silent on it.Further, as terms and conditions imposed by the
11.6 12 to participate in
12 live testing of innovative products/ ser- other features fall will be only RBI requires AR,which maybe substantiallydifferent,
6.9
vices under regulatory supervision and the Associate Regulator sandboxes, but Sebi applicants to pur- asdiscussedabove.Thelack of regulatory
8
with regulatory relaxations.Test results (AR).Thedeterminationof allows only regulated chase indemnity uniformityactsasabarriertoinnovations.
4 mayenableregulatorstodesignevidence- PR and AR is essential insurance to cover Given the cross-sectoral nature of the
based and innovation-friendly regula- because the product will
entities. If Sebi is the PR, a projected liability to innovations under the IoRS, it is impor-
0 tions. Financial regulators like RBI, Sebi, be tested as per the sand- non-registered applicant consumers. There is tant to ensure that adequate safeguards
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 IRDAI, and IFSCA operate their separate box framework of the PR. must execute an MoU also no uniformity in based on the best practices of all regula-
GFA includes deposits, currency, life insurance and mutual funds
sandboxes in India. Interested entities This determination is with a registered entity. It the duration of sand- torsare incorporated intothe SOP.
... while growth in liabilities comes down
2 Growth in gross financial liabilities (%)
mustseparatelyapproachconcernedreg-
ulators to participate in their sandbox.
based on the type of
enhancement to existing
box testing. Further,
may be difficult for some compliances such as
to find an interested
Regulatorycoordination sought to be
created through the IoRS should be sup-
Thisregulatoryframeworkwhichlooksat products (like loans, submission of plementedwithadelineationofcommon
16
innovation within the traditional silos of deposits, securities, etc.) regulated entity reports, determina- standardsapplicabletoIoRStesting.These
11.3 banking, securities, pension, and insur- andthenumberofregula- tionofboundarycon- commonstandardswillbetheminimum
12 10.8 ance does not account for the cross-sec- tory relaxations sought. ditions, etc, are also requirementsapplicabletoanycross-sec-
toral nature of fintech innovation. For This does not account for innovations different across different sandboxes. toral innovation and can cover issues on
8 instance, a fintech application may be where enhancements may equally apply In the UK, the Financial Conduct consumer protection, nature of relief,
designed to help a farmer to buy crop to products falling within the ambit of Authority (FCA) sandbox allows such duration of the sandbox, and reporting
insurance, provide advice on loan prod- more than one regulator.Despite provid- cross-sectoral testing. For instance, FCA compliances.The SOP may also specify
4 ucts, and manage cashflows from sales. ing a common application window, the has admitted a tool that profiles investor sectoralrequirementsas deemedrelevant
Thisapplicationmayfallwithintheambit SOP continues to rely on disparate sand- motivationsandpreferencesaroundtheir by regulators. A unified framework is
0 of RBI and IRDAI.To test this application, box frameworks of financial regulators. investments and portfolio’s social and importantforharmonisedregulatoryand
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 the developer must approach both regu- This may be disadvantageous for busi- environmental impact.This tool may be policy responses to fintech innovations
GFL includes loans and borrowings from commercial and cooperative banks, NBFCs and HFCs lators and go through separate sandbox nessesincaseofadifferenceinthePRand relevant for investments across various and leveragingIoRS’s truepotential.
Household credit-to-deposit ratio remains elevated
3 (%)
64 LETTERS TO THE EDITOR
60.2
60
57.9
59.2 59.1 What Truss’s exit through out Europe. Post Brexit, the
UK Conservative party prime
his strong experience and will power.
--Vinod Johri, Delhi
Pakistan in last decade or so to
eliminate terrorism from its soil, if it is
57.2
56 55
means for the UK ministers' days in office have been allowed to exit from this list, it means
Liz Truss's exit just within 44 days quite curtailed. While India face that the US is not walking the talk and
53.2 53.9
53.1 leaves a scar in UK politics. Such implications from the limited Pak off terror list serious enough about terrorism. What
52 instability has far-reaching pespective of an FTA held up Apropos of the report "Pak taken off a travesty of justice, since the US losts
consequences on any country's temporarily, our concerns with the UK grey list for terror financing”, it is thousands of soldiers in Afghanistan.
48 economy, let alone one with inflation instability have a broader canvass shocking to say the least, because As far as India is concerned, we will
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 soaring at 15%. The immediate fall out beyond the economy. With interim despite 9/11, Osama Bin Laden safely have to continue fighting on our own.
Source: RBI may be with regards to the impact of elections in the UK ruled out, Rishi being hidden in Pakistan Military --Bal Govind, Noida
the Russia-Ukraine war which Sunak is a strong contender as the academy in Abbottabad and no
precipitated huge energy crisis next PM, being the most suitable with concrete action having been taken by ●Write to us at feletters@expressindia.com

R.N.I. Reg. No. MAHENG/2010/34809 Printed and published by Vaidehi Thakar on behalf of The Indian Express (P) Ltd and printed at The Indian Express (P) Ltd Press, Survey No. 288, Plot 1 and 2, Raisoni Industrial Park, Village Maan, Taluka Mulshi, District Pune-411027
and published at The Indian Express (P) Ltd, Express House, Plot No. 1205/2/6, Shirole Road, Shivajinagar, Pune-411004. Phone: 67241000. Chairman of the Board: Viveck Goenka, Editor: Shyamal Majumdar, Editor (Pune): Shobhana Subramanian* (*Responsible for selection of news under PRB Act)
© Copyright: The Indian Express (P) Ltd All rights reserved. Reproduction in any manner, electronic or otherwise, in whole or in part, without prior written permission is prohibited. The Financial Express®

Pune
 7 FINANCIAL EXPRESS
Personal Finance
MONDAY, OCTOBER 24, 2022
● SAMVAT 2079
Add spark to your investment strategy
Go for bottom-up plays
& strategic long-term
fundamental bets
SAIKAT NEOGI
SAMVAT 2078 WAS a challenging
year for investors with volatile
stock markets,fastest interest rate
hikes, galloping inflation, Russia-
Ukraine war and spiralling oil
prices. As Samvat 2079 begins,
investors will have to brace for a
likely recession in the West, ele-
vatedinflationandmoreratehikes.
Given the headwinds, the key is to
remain patient and focus on the
investment objective as India
standsinamuchbetterposition
whencomparedtootherdevel-
oped and emerging countries.
Experts say individuals
shouldinvestineachassetclass
based on the financial goal,
time horizon and expected
average return from these
investments over a period.They
should continue investing in the
stock market based on available
opportunities. And in fixed
income,onecanstartconsider-
ing debt investments with
medium-duration maturity.
Hereare fourstrategiesto
addpowertoyourfinances
this Samvat.
Invest systematically
In equities, an
investor always runs the
riskofexternalities creat-
ing turbulence in the
● YOUR QUERIES: LOANS
You can’t wait to get a job
to repay education loan
■ CHAITALI DUTTA
● For an education loan,will the
repayment start immediately
after the student gets a job?
—A KVishwanath
The repayment of the
education loan may start from six
to 12 months after education
completion.It does not depend
on whether the student gets a job
or not.The liability is on the
student to pay.
● I had taken a home loan of
`50 lakh in 2017 and nowwith
the increase in interest rates,
the tenure has gone up by three
years.Should I start prepaying
the principal outstanding by
liquidating some of my
financial investments?
—Ajay Mirdha
First have an assessment of
how long yourwork tenure
remains.If the additional three
years is still within your
retirement age,it is suggested
that you continue with the loan.
However,if the increased period
is spilling over afteryour
retirement age oryou want to get
● RETURNS BAROMETER: SHORT-TERM FIXED DEPOSITS
Renew FDs as interest rates go up
As interest rates are likely to rise further, go for shorter tenure bank deposits
FD interest rates by banks (on tenor < 1 year)
Public sector Interest (pa %)
Canara Bank
Bank of Maharashtra
Union Bank of India
Punjab National Bank
Central Bank of India
Indian Bank
State Bank of India
Private sector
Karur Vysya Bank
IDFC First Bank
Kotak Mahindra Bank
Axis Bank
Small finance banks
Ujjivan Small Finance Bank
AU Small Finance Bank
Table includes best interest offered on less than one year tenure. Interest on FD up to
`1 crore, rates as on October 19, 2022 Source: BankBazaar.com
short term. However, if a system-
atic mode of investment is chosen,
periods ofvolatilitycan turn out to
be good buying opportunities.
ManishJeloka,co-head,Products&
Solutions,SanctumWealth,says as
the current global macro environ-
ment is less conducive for growth
andequities,asystematicapproach
to investing would be most appro-
priate. “As for the strategy, with
expectations of a narrowing mar-
ket, it is best to go for bottom-up
playsandsomestrategiclong-term
fundamental bets to ensure lower
volatility in the portfolio,”he says.
debt free with adequate provi-
sions foryour retirement corpus,
then you may start additional
repayments in the home loan.
● If I prepay my home loan,will
that impact my credit score in
the long run?
—Somesh Jha
Not at all.Additional repay-
ments into the home loan do not
adversely affect your CIBIL score.
● My home loan CLSS
subsidy is at the third
stage and the loan was
disbursed in October
2021.While the
registration for the
subsidywas done in
December 2021,I still
have not received the
subsidy.What should I do now?
—J PArora
Check the approval status of
your CLSS subsidy on the CLSS
Awas portal CLAP Pradhan
Mantri Awas Yojana-Urban
(pmayuclap.gov.in).Enteryour
11-digit alphanumeric
Application ID and check at
which stage your application is.
● Is there anyway to request my
bank to give me a grace period
of six months for my home loan
EMI as I am facing a liquidity
issue?
—Deepak Kumar
No repayment holiday is
available for home loans in India.
6.00
5.25
5.25
5.00
4.75
4.75
4.70
5.90
5.75
5.50
5.00
6.50
5.85
Choose the right theme
A portfolio construction is
made out of multiple assets and
securitiesthatcangiveyouthebest
outcomeoveraperiodoftime.San-
tosh Joseph, CEO and founder,
Refolio Investments, says an
investor must take stock and look
at his overall portfolio, especially
the past year or so, and see what
drove him towards a particular
investmentdecision.“Giveyourself
an opportunity to objectively look
at the portfolio to avoid repeating
the same mistakes,”he says.
In the current economic sce-
nario,Jeloka says it is imperative to
not only choose the right theme
but also choose the right stocks at
reasonable valuations which will
help build a portfolio which will
help generate Alpha in a volatile
economic environment.
De-clutter your portfolio
Diwali does provide an
opportunity to review one’s
portfolio, Investors must take
cues from the past year’s
developments and gauge
ILLUSTRATION: ROHNIT PHORE
You may,however,approach your
bank and give them in writing a
request for rescheduling your
loan giving them your accurate
financial situation.The bank may
consider an increased tenure or
increased EMI (after six months)
to salvage the situation.Please
keep in mind that in such a
situation your cost of the loan is
going up,byway of higher
interest payout.You are therefore
preventing your loan from
becoming an NPA.
● Is there any
maximum age limit to
take a home loan from
a bank or a housing
finance company?
—Brijesh Maheshwari
For a salaried person,the
loan tenure is matched with the
retirement age.This is flexible in
case a person is engaged in
business.The specific situation—
age of the borrower,type of
business,business partners,
history of business,track record-
determines the repayment
period.Usually,having a younger,
working co-applicant,either a son
or a daughter,increases the
tenure and as a result,reduces the
EMI.
The writer is personal finance
wellness expert and founder of
AZUKE Finance.Send your queries
to fepersonalfinance
@expressindia.com
Applicable tenor
270 days to less than 1 Year
300 days
181 Days to <1 Year
180 to < 1 Year
271 - 364 days
9 months to less than 1 year
211 days to less than 1 year
271 days to less than 1 year
181 days – 364 days
364 days
6 months < 1 year
>9 months to <12 months
6 months to 12 months
WWW.FINANCIALEXPRESS.COM
ON GOLD ETFS
Lakshmi Iyer, CIO (Debt) & head, Products,
Kotak Mahindra AMC
Gold ETFs are a great way to own gold
without the hassle of buying physical
gold at varied retail pricing.
● YOUR MONEY
What EBITDA
TO PROSPERITY
consider looking at alternatives if
some fund is underperforming its
peers fora long time.“Diwali could
hides & reveals
■ A systematic approach be one such occasion where you
to investing is most would like to look into your port- In interpreting earnings measures such as
appropriate in the folio and review it.The important EBITDA, investors should exercise caution
current environment thing is to do it regularly at least
twice a year,”he says.
■ Follow a disciplined deferred revenue to boost profits for
investing framework Goal-based approach some future period, or they can be
using a goal-based Investors must follow a disci- diminished to enhance reported
approach plined investing framework using earnings forthe current period.
a goal-based approach. Plan your Managers have the discretion to
■ Objectively look investments around major short- dealwithdepreciationandamortisa-
at your portfolio to term/long-term life goals like tion components to manipulate the
avoid repeating your child’s education, buying a home, earnings and mislead the stakehold-
mistakes which will help to create different ■ P SARAVANAN ers. In addition, companies now are
strategies suited to the impor- using unofficial measures of perfor-
■ Choose the right tance of each goal. Always have a mance outside the ambit of the
stocks at reasonable clean, robust and tight portfolio. FINANCIAL STATEMENTS ARE accounting principles. One of the
valuations Identifyyour needs,convert those importantdocumentsuponwhichall widely used measures is EBITDA.
needs into goals which have a the stakeholders such as investors, Given the tighter accounting stan-
timeline and an expectation. employees, bankers have full confi- dards, another form adopted by the
the long-term implications of Joseph says if an investor has dence. They can use the figures to managers to manipulate the num-
domestic and global events on missed out on the concept of hav- make rational estimates of the com- bers is by manipulating operations
one’s holdings.In fact,the start of ing needs and establishing goals, pany’s future financial position and ratherthanreports.
the Hindu new year presents a the portfolio will be all over the determine whether the resulting Theydosobydeliberatelycutting
good opportunity to take stock of place.“Go by the process of needs valueestimatewasadequatelyrepre- down/inflating their discretionary
what went wrong in the past and getting converted to goals and sented in the stock’s current price. expenditures such as marketing,
correct it. Varun Fatehpuria, goals getting converted into However,attimesdiscrepanciesarise advertising, selling, general and
founder & CEO,Daulat,a new-age, actionable and workable portfo- that investors should be aware of in administrativecosts.Sometimesthe
wealth-tech firm, says one must lios,”he says. orderto have asafe portfoliobasket. managerswouldalsomanipulatethe
get rid of multiple funds in the Risk is at the very heart of a productionbyincreasing/decreasing
same category. Or an investment good portfolio construction Why discrepancies arise? outputsoastomanipulatethecostof
that has constantly underper- process. An individual’s risk Corporate financial statements goods sold and ultimately the cash
formed its benchmark and peers. tolerance depends on a lot of fac- are based on assumptions and judg- flowand profits recorded.
“A simple portfolio is both easier tors like age, stability of income, ments that may be widely off, even
to track and manage. Do not add importance of a goal, etc. “Each when well-intentioned. Further- What should investors do?
unnecessary complexity,” he says. investor is unique and thus has more,standardfinancialmetricsthat Investors should equip them-
Aregularreviewis always help- different needs.Therefore,instead facilitatecomparisonsbetweencom- selves to detect anyabnormalities so
ful to construct the right portfo- of blindly replicating other’s port- panies maynot be the most accurate thattheirinvestmentsaresafe.Man-
lio. Harshad Chetanwala, co- folios, think about your own method of judging the value of a agersorchestrateoperationsinorder
founder, MyWealthGrowth.com, life situation and construct your company.This is especially true for to register higher earnings in the
says reviews may not necessarily portfolio according to that,” startups leading to the development short term, but this action runs the
result in rebalancing, but one can says Fatehpuria. of unofficial measures which have genuine risk of compromising the
theirown limitations. competitivenessofacompanyinthe
longterm.Asaccountingregulations
● EQUITY INVESTING How discrepancies are
imbibed?
continue to improve to prevent
accountingfraud,it’slikelythatcom-
SIP option in mid-cap Determining when a sale is com- panies will manipulate decisions
pleteoraservicehasbeenrenderedis rather than accounting books as
straightforward: Rev-
Investors should be
executives are moti-
enue is recorded when vated to meet short-
segment works best the product has been
shipped or received, or
when the service has
aware of the
that managers
fact term targets, given the
strong incentives.
To determine
orchestrate
SAIKAT NEOGI larreturns.So,anindividualshould beenperformed.Never- operations in order whether operating
focus on investing a small amount theless, determining decisions are optimal
FOR MUTUAL FUND investors, a regularlyforthe long-term. exactly when income to register higher and for good business
long-term systematic investment In volatile market conditions, has been earned can be earnings in the reasons, investors
plan (SIP) in the mid-cap segment therupeecostaveragingworksbest difficult for some busi- short term should demand
isagoodinvestmentoptionascom- inSIPasinvestorsgetmoreunitson nesses. Moreover, it is greater disclosure of
pared with the large-cap or small- theinvestmentswhenthemarkets necessary to exercise those decisions that
cap segment. While an average correct and lower units when the judgment in determiningwhat con- are more susceptible to manipula-
large-cap stock is generally less markets rise.An individual should stitutes revenue.Now the managers tion.Ininterpretingunofficialearn-
volatile than an average small and stay invested ideally for more than exercise their judgements to either ings measures such as EBITDA,
mid-cap stock and provides stabil- fiveyearswhichwilltakecareofthe postpone or prepone the revenue investors and analysts should exer-
itytotheportfolio,the variousmarketcycles. recorded depending on their needs. cise great prudence and pay atten-
small and mid-cap An individual Investing through an By doing so,the company’s earnings tion to corporate explanations
segments may offer should stay SIP is ideal for new can be inflated ordeflated. which involve managerial judg-
many opportunities invested ideally for investorswhowantto Forcosts,lossesfrominventories, ments.The stakeholders should use
toinvestorsforpoten- more than five takeminimumriskof receivables, etc., must be taken into otherconventional metrics in addi-
tial higher growth, a years which will investing in equities. account,even if the amount can’t be tiontotheunconventionalearnings
study by WhiteOak Also, investing in determinedwithcertainty.Theman- measures to arrive at a decision.
Capital Mutual Fund take care of the index funds is the ager’s discretion plays a significant
reveals. various market safest option when role in reporting the costs, thereby The writeris a professoroffinance &
On a 10-year cycles takingtheSIProuteas creating a case forearnings manipu- accounting at IIMTiruchirappalli.
monthly rolling the expenses will be lation practices.Thus,earnings esti- With inputs fromAPaulWilliams,
return, while the lowerthananactively mates can be inflated to create research staffat IIMTiruchirappalli
medianSIPreturnforNifty100TRI managed fund and the SIP returns
is 12.5%, the return from Nifty will mirrorthe indexreturns.
Midcap 150TRI is 16.5% and that
of Nifty Smallcap 250 TRI 14.2%, Growing popularity of SIPs
data fromthe studyshow. SIP contribution touched
`12,976 crore in September, the
Timing does not highest ever, data from Associa-
matter much tion of Mutual Funds in India
There is no meaningful differ- show. Monthly SIP contribution
encebetweentheaveragereturnof grew from `3,698 crore in Sep-
different dates of investing. How- tember 2016 to `8,263 crore in
ever, the best SIP date is the date September2019to`10,351crore
when an investor usually gets his in September 2021 and now at
salary.In the long term,it does not `12,976 crore. The number of
matter if the investor invests outstanding SIP accounts in the
through an SIP daily, weekly, or month stand at 5.83 crore, indi-
monthly.The study shows all the cating disciplined investment
threefrequenciesgeneratingsimi- mode by small investors.
● SMART MONEY
■ MUTUAL FUNDS capped at 90%, subject to quarterly ■ PAYMENT OPTION trading platform Dhan to give its
review.Theinitialhigherallocationto users access to stock investing,trad-
Kotak Cherry hosts goldisonaccountofithavinghigher CASHe, IRCTC in ing and margin funding. Through
mutual fund baskets
KOTAK CHERRY,A tech-led invest-
economicvalueandbeinghighlyliq-
uid.Additionally it is relatively more
stableas comparedto silver.
pact to launch TNPL
CASHE, A CREDIT-LED, AI-driven
Dhan’s direct equity platform,Mon-
eyfyappuserscannowopenaDemat
account, buy and sell equity shares
ment management platform under financial platform, has partnered andtradeinFutures&Options.Mon-
Kotak InvestmentAdvisors,will host ■ HEALTH INSURANCE with Indian Railways Catering and eyfy has a wide range of offerings
mutual fund (MF) baskets from TourismCorporation(IRCTC)topro- includingmutualfunds,loans,credit
India’stopmutualfundhousesonits Future Generali’s vide a Travel Now Pay Later (TNPL) card, insurance, National Pension
platform.It provides an open archi- Health Elite Cover payment option on its travel app, System and corporate fixed deposit.
tecture platform for AMCs/fund IRCTC Rail Connect.This will enable
houses to host MF baskets that will FUTURE GENERALI INDIA Insur- travellers of Indian Railways to book ■ LIFE INSURANCE
facilitate customers to choose ance has launched FG Health Elite theirrailticketsinstantlyandpayfor
mutualfundswithasingleclick.Cus- that offers access to a wide range of itlaterinEMIs,rangingfromthreeto Tata AIA consumers
tomerscaninvestviaSIPand/orlump healthcare and wellness options. It sixmonths.TheEMIpaymentoption
sum investments. offers individuals sum insured willbeavailableonIRCTCtravelapp’s
to avail Medix service
options ranging from `75 lakh and checkoutpageforthosebookingtheir Tata AIA Life Insurance has tied up
Motilal Oswal Gold & `1 crore up to `6 crore,in multiples reserved andtatkal tickets. with Medix, a global company in
Silver ETFs FoFs of `50 lakh. It provides maximum
coverage for medical bills as well as
medical management solutions, to
offerTataAIA’s consumers access to
■ INVESTING
MOTILAL OSWAL GOLD and Silver home visits, OPD treatment, and a local and global network of
ETFsFund-of-Funds(FoFs)isopenfor mental health coverage, along with Moneyfy ties up with accredited medical specialists to
subscription.Theschemewillgener- global protection. Policy tenures for Dhan for stock trade manage their medical journey
ate returns by investing in units of FG Health Elite range from one to related to serious illnesses.This ser-
gold and silver ETFs and the daily threeyearswiththepossibilityoflife- TATA CAPITAL’S DIGITAL wealth vice is complementary for policy-
weights shall be market driven with longrenewal.Theentryageforadults management platform, Money- holders who have purchased eligi-
the starting (NFO) allocation of is between 18 to 65 years, and chil- oneyfy, has partnered with Raise ble life insurance products across
70:30. The maximum weight is dren over91 days are eligible forit. Financial Services’stock investing & term,savings,and pension plans.
Pune
 8 FINANCIAL EXPRESS WWW.FINANCIALEXPRESS.COM

Samvat 2079
MONDAY, OCTOBER 24, 2022

Stockpicking critical in expensive market

TOP 25 NIFTY 500 GAINERS VALUATION TOP 25 NIFTY 500 LOSERS
(%) 1-yr forward PE 10-yr average forward PE YTD % change Diwali to diwali returns % change since last Diwali
% change since last Diwali

11.36

11.30
11.00
11.00
10.39
Deepak Fertilisers &

20.86

19.64
153.17

9.74

9.65
-73.97 Dhani Services

17.49
Petrochemicals Corp

16.94
7.01
14.95
15.23

15.64
4.24

12.79
3.44
129.55

2.27
Raymond -64.34 Dilip Buildcon
Shree Renuka Sugars 128.10 -58.21 Indiabulls Real Estate

-1.65
-2.38

-3.08
Elgi Equipments 124.12 -56.53 LUX Industries

-7.84
-8.33
Adani Total Gas 122.04

-12.98
-53.25 Zensar Technologies

-15.88
Adani Enterprises 121.53 -53.14 Zomato Ltd
-24.42
-24.86

Shoppers Stop 116.42 -51.45 Samvardhana Motherson

International
Bharat Dynamics 115.45 Indonesia South Korea China Brazil Malaysia Sensex Nifty -50.66 Godrej Properties
Mazagon Dock Shipbuilders 111.38 -50.30 Manappuram Finance
FE BUREAU more thanitshould be.Oncethereare 2,687 companies (excluding banks
Rhi Magnesita India 105.95 indications from the US Fed that the and financials),net profitswent up by -49.68 Metropolis Healthcare
AFTER A RESILIENT show in 2022, rate hikes will be moderated and that a good 16% year-on-year in the June
Fine Organic Industries 97.27 -48.34 Firstsource Solutions
India’s stock markets must brace for the quantitative tightening would quarter despite the pressure of high
Gujarat Fluorochemicals 93.07 more global headwinds, at least in ease,itwould mean inflation is taper- rawmaterial costswhich increased by
-47.86 Hle Glascoat
the first few months of 2023. Fund ing off. “That would signal better nearly 700 basis points.In the March
Schaeffler India 92.98 managers and strategists point out it times for the world economy and for quarter,profits had risen by25%y-o- -47.54 Welspun India
would be unwise to believe that India us,”said a fund manager. y,while in the Decemberquarter,they
KPIT Technologies 86.72 is completely insulated.“It is heart- The market is not cheap; in fact, were up 23% y-o-y. At a disaggre- -47.14 Jubilant Pharmova
ening to see there is some de-linking India is more expensive than many of gated level, the performances by
Poonawalla Fincorp 85.89 in that our markets have performed its peers.At 17,545,the Niftytrades at some companies were even better. -46.78 HEG
much better than most.However,we a price to earnings multiple (P/E) of Importantly, the corporate sector is
Hindustan Aeronautics 82.41 should not lose sight of the potential 18.8 times FY24 earnings while at not over-leveraged,corporate balance -45.72 Shilpa Medicare
adverse impacts of geopolitical ten- 59,203,theSensextradesataP/E19.6 sheets have probably never been in
Karur Vysya Bank 76.83 sions. The repercussions could be times. “Investorsarenolongerbuying better shape. In the September quar- -45.36 New India Assurance
serious,” observed a leading fund forthecurrentyear,theyarenowmov- ter, so far the results have been rea-
Adani Green Energy 76.41 -44.09 Thyrocare Technologies
manager. He pointed out the age of ing to FY24 and even beyond,” said a sonablygoodwith onlya couple of big
Adani Transmission 75.25 falling interest rates and abundant fund manager.The point is that earn- disappointments.
-43.70 Indiabulls Housing Finance
liquidity is getting over. ings estimates could be downgraded With interest rates till low and the
Welspun Corp 74.22 As economists have cautioned, a overthenextfewmonthswhichwould returns from fixed income products -43.05 Indian Energy Exchange
more competitive rupee notwith- make the markets even more expen- unlikelytomatchthosefromequities,
Timken India 72.32 standing, exports could get hit by sive. India has been a stock-pickers’ retailinvestorsareexpectedtobebuy- -42.57 Mastek
slowing global trade. Moreover, if market for much of the past decade ers of stocks either directly or via
Solar Industries India 69.08 imports become costlier,production and should remain one. Indeed, since mutualfunds.Tothatextent,`16,000 -41.64 Wipro
levels could drop. In sum, a deterio- theeconomyisexpectedtoslowdown -crore or so of SIP (systematic invest-
JK Paper 68.82 ration in the BoPwould mean slower in FY23 and FY24, aggregate results ment plans) flowing into mutual -41.44 Chemplast Sanmar
growth. for India Inc will matter less than the funds every month should sustain.
JBM Auto 67.07 Strategists saythatwhile the mar- performance of specific companies. Very critically, the buying has not -41.28 Sterlite Technologies
ket is not valued at stratospheric lev- To be sure,the corporate sectorhas come on the back of leveraging but
Tata Teleservices Maharashtra 65.67 -41.13 Vaibhav Global
els, it is probably discounting much been doing very well. For a sample of from savings.

Banks will be favourites, NIFTY BANK

50,000
51.30
% change
140 15,000
NIFTY AUTO % change

12,584.65
200 600
NIFTY REALTY

495.50
% change

423.25 150

IT to make comeback
2,660.42 120
40,000 100 12,000
150
450
46.65 90
100
30,000 60 9,000 60
FE BUREAU 50 300
-50.00 30
2,660.42

20,000 20 6,000
974.50

PICKINGWINNING SECTORS is nevereasy.Right 0

now, domestic-facing sectors are the favourites 0
150
because the global slowdown is expected to 10,000 1.30 -20 3,000 8.77 -50
impact export-oriented companies. The -30
‘Atmanirbhar’theme is in vogue and investors are -22.77
0 -60 0 -100 0 -60
betting on the domestic capex theme.
The sectors that are expected to do well in the Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078 Samvat 2066 Samvat 2078
current year include BFSI, automobiles and con-
sumer(discretionary).Commodities could be a bit
of laggard because the rally is virtually over.
Cement stocks could also languish for some NIFTY IT % change NIFTY METAL % change NIFTY PHARMA % change
27,924.25

months until the pressure on operating margins,

40,000 120 6,000 5,671.25 275 15,000 60
arising out of the higher raw material costs, ease. 12,952.15
Rising costs of fuel and power have hurt margins
90 45
badly even as realisations have been stagnant in 32,000 5,000
200 12,000
most markets. 15.68
Within sectors,analysts are stayingwith larger 60 4,000 30
24,000
939.69

companies at this point,over their small and mid- 125 9,000

SENSEX % change sized peerswhile picking potentialwinners.That’s 30 3,000
1.59 15
1,919.21

because there’s some caution on earnings growth

2,792.55

72,000 120 16,000 50 6,000

in a tough macro environment. 0 2,000 0
58,883.05 The auto sector is among the favourites
60,000 90 because the availability of chips has improved.In 8,000 -25 3,000
-30 1,000 -15
33.20 particular, the passenger car segment is already -20.97 -0.47
48,000 60 doing well as consumer spends rise and given the 8.42 -7.14
0 -60 0 -100 0 -30
economy is getting back on track, the CV seg-
36,000 30 ment,too,is expected to do well.Analysts caution Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078
that regulatory policies need to be closely
5,964.01

24,000 0 watched in terms of the incentives that the gov-

ernment is offering for the EV space. Moreover,
12,000 -1.97 -30 the two-wheeler space could be a bit of a laggard NIFTY FMCG % change NIFTY ENERGY % change CPSE INDEX % change
as exports suffer. 50,000 43,917.75 80
0 -60 Given how credit growth is tipped to gain fur- 30,000
25,607.40 120 3,000 2,663.00 150
Samvat 2060 Samvat 2078 ther momentum in the months ahead, the bank- 13.28 21.81
49.79 60 90 2,500 120
ing sector is currently a favourite with the Street. 40,000 24,000
NIFTY % change The sector will contribute the biggest share to 90
earnings going forward. While private sector 40
60 2,000
20,000 120 30,000 18,000
17,432.90 banks are the preferred stocks,public sectorbanks 60
are being closelywatched as they are valued more 30 1,500
669.43
3,546.63

90 reasonably than their private sector peers. Apart 20

2,494.07

16,000 20,000 12,000 30

27.43 from State Bank of India(SBI), Bank of Baroda 0 1,000
60 (BoB) is another pick of brokerages. 0
12,000 10,000 0 6,000 8.58
While the ITsectorhas always enjoyed the con- -30 500
30 fidence of fund managers and found a large place 13.45 -30
14.84
8,000 in every portfolio, the US recession, attrition and
1,872.95

0 -20 0 -60 0 -60

0 risingwage costs have taken the sheen off the sec-
tor. However, there are investors who believe IT Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078
4,000 -2.70 - 30 stocks could bottom out in the next 3-6months
and given the long-term potential,buying oppor-
0 - 60 tunities should be utilised.“The best way to play
Samvat 2060 Samvat 2078 NIFTY MIDCAP 100 % change NIFTY SMALLCAP 100 % change NIFTY 500 INDEX % change
the IT sector is to buy systematically over the next
few months,”said a leading fund manager. 35,000 120 12,000 120 20,000 120
NIFTY 100 INDEX % change Stocks of commodity players could stagnate. 30,707.00 9,604.60
“Unless China is going to give a big stimulus, it’s 68.29 14,992.20
20,000 120 43.36
3,567.25

17,674.60 unlikely prices of key commodities, with the 28,000 80 80 16,000 80

43.36 9,000
exception of crude oil,will see anybig rally.At best, 32.01
16,000 80 there can be a relief rally but that will not take the
21,000 40 40 12,000 40
prices to levels seen 6-9 months back,” said an
12,000 40 analyst.Capital goods players should dowell as the 6,000
capex cycle turns.While the amounts may not be 0
1,115.86

14,000 0 0
1,579.15

8,000
2,453.72

meaningful, spending on capex is picking up as

8,000 0 can be seen in the growing orderbooks of engi- 3,000
neering companies. Should execution proceed at 7,000 -40 -40 4,000 -2.50 -40
54.24 -2.65 -13.00
4,000 - 40 a good pace, these companies will report strong
earnings growth. The consumerstaples pack con-
0 -80 0 -80 0 -80
tinues to be weighed down by raw material costs,
0 - 80 Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078 Samvat 2060 Samvat 2078
Samvat 2062 Samvat 2078
and moreover,volumes are not picking up mean-
ingfully.Valuations too are fairly steep.

Pune
 9 FINANCIAL EXPRESS
International
MONDAY, OCTOBER 24, 2022
QUICK
VIEW Boris battling to win support
for UK PM comeback bid
Biden tells voters
he’s in good health
ahead of 2024
PRESIDENT JOE BIDEN
challenged voters to pick
another Democrat if they have
concerns about his age,while
declaring himself healthy
enough for a second term.If a
voter concludes“that I’m
missing a beat then she should
support some other Democrat,”
the president said in an
interview segment with
MSNBC’s Jonathan Capehart
that aired Sunday.
Trump’s company set
for criminal trial in
off-books pay scheme
MORE THAN THREE years after
Manhattan prosecutors started
investigating Donald Trump —
after going to the Supreme
Court twice to gain access to his
tax records — the only criminal
trial to arise from their efforts is
about to begin.No,the former
president isn’t going on trial.
Aus joins pledge to cut
methane emissions
30% by2030
AUSTRALIAJOINEDTHE Global
Methane Pledge,becomingone
of the last majordeveloped
economiesto sign on to an effort
to reduce emissionsof the potent
greenhouse gas 30% from 2020
levelsbythe end of this decade.
Salman Rushdie lives, but Russia tells people in occupied city of
loses use of eye and hand Kherson to ‘save your lives’ and leave
ASSOCIATED PRESS
New York, October 23
SALMAN RUSHDIE'S AGENT says
the author has lost sight in one eye
and the use of a hand as he recovers
from an attack from a man who
rushed the stage at an August liter-
ary event in western New York,
according to a published report.
LiteraryagentAndrewWylietold
the Spanish language newspaperEl
PaisinanarticlepublishedSaturday
that Rushdie suffered three serious
wounds to his neck and 15 more
wounds to his chest and torso in the
attackthattookawaysightinaneye
and left a hand incapacitated.
Rushdie, 75, spent years in hid-
ing after Iran's Ayatollah Ruhollah
Khomeini issued a 1989 edict, a
fatwa, calling for his death after
publication of his novel “The
Satanic Verses,” which some Mus-
lims consider blasphemous. Over
the past two decades, Rushdie has
Input costs weigh
on India Inc
ITC’s consumer goods business
fared well with revenues rising 21%
y-o-y.
While the IT pack has done fairly
well,producers of commodities and
cement have struggled with rising
costs.Rawmaterialcostspertonneat
JSWSteel,forinstance,jumpedabout
70% y-o-y. Margin pressures are in
evidenceeverywhere.Forasampleof
266companies(excludingbanksand
financials) the OPM contracted 422
bpsy-o-yto16.5%leavingoperating
profit flat.Consolidated Ebitda mar-
ginsatRILweredownnearly200bps
y-o-y. Even at much smaller busi-
nesses — Rallis for instance — mar-
ginswere flat despite a 31% jump in
revenues due to competitive inten-
sityand high input costs.Gross mar-
gins at Hindustan Unilever con-
tractedbyabout580bpsy-o-yduring
the quarter.At Shree Cement, mar-
gins dropped to a seven-yearlow.
Therehasn’tbeenmuchofapick-
up in volumes at consumer-facing
companies. At Tata Consumer, the
volume growth has been muted in
some segments and contracted in
● COMPETITION TO REPLACE LIZ TRUSS HEATS UP
RishiSunakofficially
declareshewillrun;
firstballotonMonday
PAUL SANDLE & KATE HOLTON
London, October 23
BORIS JOHNSONWAS fighting on
Sunday to get enough support to
make a shock return as Britain's
primeministerafterprominentfig-
ures on the right wing of the Con-
servative Party coalesced around
the man once accused of betraying
him,Rishi Sunak.
Sunak, the 42-year-old former
finance minister, confirmed on
Sunday he would enter the compe-
tition to replace LizTruss,vowingto
tackle the country's"profound eco-
nomiccrisis"with"integrity,profes-
sionalism and accountability".
"Iwant to fix oureconomy,unite
our party and deliver for our coun-
try,"said Sunak,the man accused by
Johnson's supporters of ending his
previous three-year spell in office.
Sunak quit the cabinet in July,
triggering an unprecedented min-
isterial rebellion against Johnson.
The declaration from the clear
front-runner throws down the
gauntlet to Johnson, who returned
from a holiday in the Caribbean to
trytosecurethebackingof100law-
makers to get onto Monday's ballot.
During his previous time in
DowningStreethewassupportedby
manyofthedifferentfactionsinthe
party, including those on the right
who spearheaded Britain's depar-
ture from the European Union.
This time,however,manyprevi-
ous backers have told Johnson he
should step aside, noting that the
countryneeds stabilityafterTruss's
chaotic six-weeks in power sparked
turmoil on financial markets, hit-
ting the value of the pound.
Johnson isalsostill facing apriv-
travelled freely.
Hadi Matar,24,of Fairview,New
Jersey, has been incarcerated after
pleading not guilty to attempted
murder and assault in the August
12 attack on Rushdie as he was
being introduced at the Chau-
tauqua Institution,a rurallylocated
center 89 kilometers southwest of
Buffalo that is known for its sum-
mertime lecture series.
others. Volumes at Bajaj Auto were
virtually flat for the quarter. The
underlying volumes growth at HUL
was 4%y-o-y.
Even in the industrial products
space,volume growth has been sub-
dued; at ACC,volumes went up just
4% y-o-y.Analysts believe there has
been a deceleration in volumes at
Asian Paints estimating the increase
forthe quarterat10%y-o-y.
Somefirmshavemanagedtocon-
tain the pressure on margins byrais-
ing prices; Asian Paints,for instance
has taken a cumulative price hike of
around 25% in the past six quarters
to try and combat inflation in raw
materials of about 34%. Analysts
estimate that Nestle’s 18.2% y-o-y
rise in revenues in Q2FY23 is the
result of price increases of about 10-
11% andvolume growth of 7-8%.
Bajaj Auto’s net realisations were
up 17.5%y-o-yand the average sell-
ingpriceinthedomesticmarketwas
up by10.6%y-o-y.
At the same time, competitive
intensity and subdued consumer
demand,insomesegmentsofindus-
try,have hurt companies like Havells
whose Ebitda margins crashed 600
bps y-o-y. Moreover, the disruption
causedbytheheavymonsoonhashit
■ The declaration throws
down the gauntlet to
Johnson, who returned
from a holiday to try to
secure the backing of 100
lawmakers to get onto
Monday's ballot
■ Sunak quit the cabinet in July, triggering an
unprecedented ministerial rebellion against Johnson
Rishi Sunak
Ex-UK interior minister Suella
Braverman endorses Rishi Sunak
BRITAIN'S RECENTLY-
RESIGNED home secretary
Indian-origin Suella Braverman
on Sundaycame out in support of
Rishi Sunak to replace outgoing
Prime Minister Liz Truss as the
candidatewhocanprovide“unity,
stability and efficiency” to the
governing Conservatives.
InaboosttofrontrunnerSunak
and a blowto formerprime minis-
ilegescommitteeinvestigationinto
whetherhe misled parliament over
Downing Street parties during
COVID-19 lockdowns. He could be
forced to resign or be suspended
from office if found guilty.
"This isn't the time for Boris's
OLESHKY, RUSSIA-CONTROLLED
UKRAINE
October 23
RUSSIATOLD PEOPLE in the occu-
pied Ukrainian city of Kherson to
flee for their lives on Sunday as
more residents joined an exodus to
escape an anticipated Ukrainian
counter-offensive.
Russia's proxies in the southern
region are trying to evacuate up to
60,000peoplewholiveonthewest-
ern bank of the Dnipro river.
"The situation today is difficult.
It's vital to save your lives," Russian
Education MinisterSergei Kravtsov
said in a video message."It won't be
for long.You will definitely return."
The Kherson region sits to the
northoftheCrimeanpeninsula,which
Russia annexed in 2014. It is a key
gatewayforRussianmilitarysupplies.
Moscow-backed authorities
reported a shortage of vessels to
ferry people across the river at one
FROM THE FRONT PAGE
construction businesses; IRB Infra-
structure’s revenues fell 8% y-o-y,
driving down theEbitda.
While Infosys,TCS and HCLTech
all reported reasonably good num-
bers for the September quarter,with
HCL Tech beating the street hand-
somely,Wipro’s September quarter
earnings trailed the consensus and
were disappointing. Managements
saythedemandenvironmentisfairly
robust and the slowdown has not
materiallyimpactedITspendingjust
yet, nor is there much of a delay in
deal conversions.They believe com-
panieswillcontinuetospendonITto
becomemoreefficientinthesediffi-
cult times.
Markets likely to
remain resilient in
the new year
“Apart from the geopolitics and
inflation,there is now the chip issue
in China and we need to weigh the
tradeimplicationsofthis.WhileIndia
is looking good within the EM uni-
verse, we need to tread carefully
because we don’t know to what
extent we can escape the global
shocks,” Sivaramsaid.
HEAD TO HEAD
■ During his previous
time, he was supported
by many of the different
factions in the party,
including those on the
right who spearheaded
UK’s departure from EU
■ During his previous
time in Downing
Street he was
supported by many of
the different factions
in the party, including
those on the right
who spearheaded
Britain's departure
from the European
Union
terBorisJohnson'sexpectedbidfor
Toryleadership,the formerminis-
terwith significant support on the
extreme right of Tory party said
Johnson was no longer the best
choiceforthe partyorthe country.
Her intervention comes just
days after her dramatic exit from
Cabinetoverabreachoftheminis-
terialcodeandascathingattackon
Truss'leadership. —REUTERS
style," Steve Baker, an influential
lawmaker on the right of the party
who is backing Sunak, told Sky
News. "I'm afraid the trouble is
because of the privilegesvote,Boris
would be a guaranteed disaster."
Britain has been thrust into yet
point on Sunday, due to a "sharp
increase in the number of people
wishing to leave the city".
Around25,000peoplehavebeen
evacuated since Tuesday, the Inter-
fax news agency cited the Russian-
installed deputy head of the region,
Kirill Stremousov,as saying.
"Weagainrecommendyoutoleave
ShankarSharma,joint managing
director, First Global, is convinced
India will outperform other major
markets in the next 12 months,by a
significantmargin.“Strongdomestic
demand,which had been curtailed
over the past five-six years due to a
variety of factors,is propelling com-
pany numbers significantlywithout
needformajorgovernmentstimulus.
Small caps,well chosen,are going to
delivergreat returns,” Sharmasaid.
Edelweiss’ Shah believes that
while the economy may not grow at
more than 12-13% in nominal GDP
terms in FY24, balance sheets are
strong and corporate earnings could
growat14-15%.“However,itisacon-
cern that household balance sheets
arenotasstrongandthatcouldputa
lid ongrowth,” Shahsaid.
Sivaram is cautious on earnings
growthsincethelocalrecoveryisaK-
shapedone.“Whilethepremiumseg-
ment is doing well and there are
opportunities,export-facingcompa-
niesface challenges,” he said.
Ahead of the current earnings
season Kotak Institutional Equities
estimatedanEPS(earningspershare)
fortheBSE30of`2,685forFY23and
`3,006forFY24.FortheNifty50,the
estimated EPS for FY23 was 811
Boris Johnson
anotherleadershipbattleafterTruss
was forced to quit when her radical
economic policies drove up borrow-
ing costs and mortgage rates at a
timeofsurgingenergyandfoodbills.
Sunak, Johnson and former
defence minister Penny Mordaunt
are all in the fray to become the
country's fifth prime minister in
six years.
Opposition leader Keir Starmer
said the battle at the top of Con-
servatives was a "ridiculous,
chaotic circus", and his focus was
on the millions of Britons strug-
gling to pay their bills.
The Labour Party leader, along
with other opposition parties,
have called for a national election.
The prospect of Johnson's
return is a polarising issue for
many in a divided Conservative
Party,while his popularity among
voters had also tumbled before he
was forced out. —REUTERS
the city and the western bank of the
Dnipro,"Stremousov said in a video
messagepublishedonTelegram.
He said an improvised explosive
device had killed one person and
wounded another in a blast in the
city on Sunday. Reuters was unable
toindependentlyverifytheincident.
—REUTERS
whileforFY24,itwas`930.Thisthen
means that at 17,545, the Nifty
trades at 18.8 times the FY24 earn-
ings while the Sensex, at 59,203,
tradesat 19.6 times.
Foreign portfolio investors (FPIs)
have been sellers of Indian stocks in
2022havingpulledout$225billion.
But domestic financial investors
(DFIs) have bought stocks worth
`2.63trillion(about$30billion).Hol-
land believes India and some other
emerging markets will stand out in
the coming year.At the same time,
India is more expensive relative to
peers so other markets like South
Korea may get a larger share of the
flows,he said.“Returns in the region
of 12% plus can be expected and
within that some sectors would do
better,” Holland said.
Veteran investor, Ramesh
Damani believes the Indian markets
shoulddowellinthecomingyearand
that even the global markets may
have bottomed out. “The earnings
season has got off to a good start and
I feel earnings growth should be rea-
sonably good in FY23.While a 6-7%
GDP growth might not be great,it is
stillgood,” Damani said.
OTTs may have to
WWW.FINANCIALEXPRESS.COM
ATRUE FRIEND
Shehbaz Sharif, Prime Minister, Pakistan
On behalf of the entire Pakistani nation, I
congratulate President Xi Jinping on his
reelection as CPC General Secretary for the
3rd term.
Xi creates history,
wins record third
term in power
PRESS TRUST OF INDIA
Beijing, October 23
CHINESE PRESIDENT XI Jinping on
Sunday scripted history, becoming
thefirstleaderoftherulingCommu-
nist Party after party founder Chair-
manMaoZedongtogetre-electedfor
an unprecedented third term in
powerwiththeprospectofrulingthe
world'smostpopulousnationforlife.
Xi, 69, was elected on Sunday
morning as General Secretary of the
Communist Party for 3rd five-year
tenure by the Central Committee,
whichwasconstitutedadayearlierby
the once-in-a-five-year Congress,
mainlypackedwith his supporters.
The in-camera Central Commit-
tee session, presided over by Xi,was
attended by 203 members of the
20th CPC Central Committee and
168 alternate members, an official
communiquehere said.
The Central Committee also
approved a 24-member Politburo
which in turn elected a seven-mem-
ber Standing Committee, which is
also packedwithXi's supporters.In a
familiar pattern,all seven members
oftheStandingCommittee,themost
powerfulbodythatgovernsthecoun-
try of more than 1.41 billion people,
walked in a file with Xi leading the
groupattheornateGreatHallbefore
themedia.Theirappearancewastele-
cast livenationally.
"I was re-elected as the General
Secretary of the CPC Central Com-
mittee,”Xi said and introduced the
othersix,two of themwere from the
previous committee.
The other six are Li Qiang, Zhao
Leji,WangHuning,CaiQi,DingXuex-
iang and LiXi.
Both Zhao and Wang,who is the
ideologue of Xi, are the members of
theprevious committee.
Li Qiang, head of the Shanghai
CPC,is regarded as a close associate
of Xi and widely expected to be pro-
moted as Premier in March to
replace the incumbent Li Keqiang
who retired.Li Qiang's selection has
raised eyebrows as Shanghai per-
formed gravely during the recent
COVID-19 spike leading to the clo-
sure of over 25 million strong city
for weeks.The prolonged lockdown
during which people suffered for
basicnecessitiesinvokedstrongcrit-
icism from the public.
A notable official who was ele-
vated to the Political Bureau is the
Foreign Minister and State Council-
lorWangYi,69,whowaspreviouslya
CentralCommittee member.
Wang,who is selected in spite of
havingcrossedtheretirementage of
68fortopofficials,isexpectedtoplay
a significant role in shaping Xi's for-
eign policy.
Also, the Politburo has reap-
pointedXiastheChairmanoftheall-
powerful Central Military Commis-
sion (CMC), the overall high
Command of the Chinesemilitary.
Withthis,Xiwillcontinuetohold
alltoppowercentres,thePresidency,
theheadoftheCommunistPartyand
theCMC,becomingthemostpower-
ful Chinese leadersince Mao.
The People's Liberation Army
(PLA) Generals ZhangYouxia and He
Weidong were appointed as the Vice
Chairmen of the CMC.
pay access charge
to telcos
MakingOTTsandintermediaries
pay a carriage charge is not some-
thingnew,butisbasedontheprinci-
ple of interconnection charges
applicabletotelecomplayers.Termi-
nationcharge,alevypaidbytheorig-
inating network to the operator on
whose network the call terminates,
was discontinued only in January
2021,whentrafficbetweenthethree
operators more or less became even.
Nowthis levyhas moved to a bill and
keep principle. But another compo-
nent of interconnection — carriage
charge—stillapplies.Here,operators
payachargetothenationallong-dis-
tance carrier for carrying calls from
one circleto another.
Similarly, operators pay each
other for points of interconnect,
which connect calls between two
operators.As subscriber/ call traffic
increases, operators need more
points of interconnect from each
otherorelsetherewouldbehighinci-
dence ofcall drops.
Sources said while the intercon-
nectchargeregimefortelecomoper-
ators is well designed, how it will
■ The in-camera Central
Committee session,
presided over by Xi, was
attended by 203
members of the 20th CPC
Central Committee and
168 alternate members
■ The Central
Committee also
approved a 24-member
Politburo which in turn
elected a seven-member
Standing Committee,
which is also packed
with Xi's supporters
■ In a familiar pattern, all
seven members of the
Standing Committee
walked in a file with Xi
leading the group at the
ornate Great Hall before
the media
The other CMC members
included top military officials Li
Shangfu, Liu Zhenli, Miao Hua and
ZhangShengmin.Theywillheaddif-
ferent branches of the military,
including the Navy and the Rocket
Force.Like his previous two tenures,
Xi is the onlycivilian in theCMC.
Addressing the media, Xi said
Chinaandtheworldneedeachother
andprojectedapositivepictureofthe
Chineseeconomy,whichisinaslow-
down mode especially due to his
resolve to implement the zero-
COVIDpolicyresultinginlockdowns
ofseveraltopcitiesleadingtosupply
chain disruptions.
"Just as China cannot develop in
isolation from the world, the world
needsChinaforitsdevelopment.The
Chineseeconomyhasagreatreliance
potentialandlatitude.Itsstrongfun-
damentalswillnotchangeanditwill
remain on a positive trajectory over
thelongrun.Chinawillopenitsdoors
wide,” he said. China is the second
largesteconomyin theworld.
"Wewillbesteadfastindeepening
reform and opening-up across the
boardinpursuinghigh-qualitydevel-
opment.AprosperousChinawillcre-
atemanymoreopportunitiesforthe
world,” Xi said, playing down con-
cerns at home and abroad over his
emphasis on Marxism and his new
goal to turn China into a modern
socialistcountry.
To the cadre of the CPC, Xi said,
“We must show greater historic ini-
tiative in adopting Marxism to the
Chinesecontextandtheneedsofthe
timestowritenewchaptersindevel-
opingsocialismwithChinesecharac-
teristics in the newera.”
applyto intermediaries/ OTTs needs
to be decided.“BeforeTrai comes out
with its consultation paper, it will
study global trends and come out
withaproposedmechanism,”sources
said.According to sources, an inter-
connect regime is a must between
OTTs and telcos because as 5G ser-
vices grow,there would be immense
data/ video load on networks,which
may lead to them getting clogged or
even crashing at times.
Sourcessaidonceaninterconnect
regimeisfixed,it'squitepossiblethat
OTTs and telcos come around to
some revenue-sharing mechanism
in lieu of paying the charge. If this
happens, it would be very similar to
the bill and keep regime of termina-
tion charge.
Someofficialssaidiftheinterme-
diaries/ OTTs are kept out of legal
interceptionandonlybroughtunder
theinterconnectregime,theremight
not be opposition from sections
whichareagainstaregulatoryregime
forOTTs.“Thebasicoppositioniswith
regard to licensing and legal inter-
ception as the fear is that these may
lead to breaking of encryption and
state surveillance.However,no such
thing applies to interconnect
charges,” sources said.
Pune
MONDAY, OCTOBER 24, 2022

10 FINANCIAL EXPRESS WWW.FINANCIALEXPRESS.COM

Performance Highlights Q2 FY23

Consolidated total income: `20,803 crore � 16%
Consolidated profit after tax: `1,557 crore � 39%

Consolidated Results (` In Crore)

Particulars Q2 FY23 Q2 FY22 % Change H1 FY23 H1 FY22 FY22

Total income 20,803 18,008 16% 36,692 31,958 68,439

Profit before tax 4,258 2,792 53% 7,852 4,559 11,271

Profit after tax (attributable 1,557 1,122 39% 2,866 1,955 4,557
to owners of the Company)

Consolidated Results (` In Crore)

Particulars Q2 FY23 Q2 FY22 % Change H1 FY23 H1 FY22 FY22

Total income 9,972 7,735 29% 19,257 14,480 31,648

BAJAJ FINANCE LIMITED
Profit after tax 2,781 1,481 88% 5,377 2,483 7,028

Think It. Done. Net NPA 0.44% 1.10% 0.44% 1.10% 0.68%

Return on average equity 23.6% 15.4% 23.4% 13.1% 17.4%

(annualised)

Assets under management 218,366 166,937 31% 218,366 166,937 197,452

Standalone Results (` In Crore)

Particulars Q2 FY23 Q2 FY22 % Change H1 FY23 H1 FY22 FY22

BAJAJ HOUSING
Total income 1,340 901 49% 2,563 1,723 3,767
FINANCE LIMITED
Profit after tax 306 166 84% 622 327 710

Assets under management 62,931 44,429 42% 62,931 44,429 53,322

Standalone Results (` In Crore)

Particulars Q2 FY23 Q2 FY22 % Change H1 FY23 H1 FY22 FY22

Gross written premium 4,781 5,034 -5% 7,900 7,529 13,788

GENERAL INSURANCE
Profit after tax 336 425 -21% 747 788 1,339

Combined ratio 99.8% 98.5% 102.0% 100.5% 99.6%

Caringly Yours!
Return on average equity 15.2% 22.1% 17.2% 20.9% 17.3%
(annualised)

Assets under management 26,052 24,070 8% 26,052 24,070 24,633

Standalone Results (` In Crore)

Particulars Q2 FY23 Q2 FY22 % Change H1 FY23 H1 FY22 FY22

Gross written premium 4,155 3,813 9% 8,524 6,329 16,127

LIFE INSURANCE
New business premium 2,235 2,227 - 5,152 3,523 9,136

Net new business value 190 136 40% 325 161 621
Life Goals. Done.
Shareholders' profit after tax 159 104 53% 283 188 324

Assets under management 86,907 81,429 7% 86,907 81,429 85,623

Bajaj Finserv Limited | CIN: L65923PN2007PLC130075 | Website: www.bajajfinserv.in This is an abridged representation of the unaudited
Bajaj Finance Limited | CIN: L65910MH1987PLC042961 | Website: www.bajajfinserv.in/finance financial results of Q2 FY23 and is not for the purpose
Registered Office: Mumbai-Pune Road, Akurdi, Pune 411 035 | Corporate Office: Bajaj Finserv House, of legal compliance.
Off Pune-Ahmednagar Road, Viman Nagar, Pune 411 014 As required by regulations, the results for Bajaj Finserv
Bajaj Housing Finance Limited | CIN: U65910PN2008PLC132228 | Website: www.bajajhousingfinance.in Limited, Bajaj Finance Limited and Bajaj Housing
Registered Office: Mumbai-Pune Road, Akurdi, Pune 411 035 | Corporate Office: B2, Cerebrum IT Park, Kumar City, Kalyani Nagar, Pune 411 014 Finance Limited have been prepared as per Indian
Bajaj Allianz General Insurance Company Limited | CIN: U66010PN2000PLC015329 and IRDA Registration No. 113 dated 2 May 2001 Accounting Standards (Ind AS).
Bajaj Allianz Life Insurance Company Limited | CIN: U66010PN2001PLC015959 and IRDA Registration No. 116 dated 3 August 2001 The results of Bajaj Allianz General and Life Insurance
Registered and Corporate Office: Bajaj Allianz House, Airport Road, Yerwada, Pune - 411 006 | Website: www.bajajallianz.com Company Limited are as per Indian GAAP.
Insurance is the subject matter of solicitation.

Pune
WWW.FINANCIALEXPRESS.COM MONDAY, OCTOBER 24, 2022
FINANCIAL EXPRESS NATION 11

Transferring
deceased Nuvama Wealth Management Limited
person's asset (Formerly known as Edelweiss Securi�es Limited)
Corporate Iden�ty Number : U67110MH1993PLC344634

still a eadache
Regd. Off: Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai - 400 098 Tel: +91-22-4009 4400
Standalone Financial Results for the quarter and half year ended September 30, 2022
(` in Crores, except per share data)

Quarter Ended Half Year Ended Year Ended

FE BUREAU Par�culars September June September September September March
New Delhi, October 23 According to a LocalCircles 30, 2022 30, 2022 30, 2021 30, 2022 30, 2021 31, 2022
survey, 52% families who (Audited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Audited)
ASSETTRANSFER AFTER the got assets of a demised
1 Total income from opera�ons 95.28 81.67 88.14 176.95 156.79 381.72
demise of a family member family member transferred
continues to be a cumber- 2 Net Profit / (Loss) for the period (before Tax, 3.97 (9.84) 23.54 (5.87) 24.77 36.29
in the last 10 years had to
some exercise in India. Excep�onal and/or Extraordinary items)
pay bribes in many places
According to community 3 Net Profit / (Loss) for the period before Tax 3.97 (9.84) 23.54 (5.87) 24.77 183.60
social media platform—Local (a�er Excep�onal and/or Extraordinary items)
Circles, many of the people
4 Net Profit / (Loss) for the period a�er Tax 1.93 (8.54) 34.71 (6.61) 35.19 187.94
surveyed have had to pay a 65% paid it to other local and (a�er Excep�onal and/or Extraordinary items)
bribe to the concerned state government offices,and
authorities as they had been 26% paid officials in the mag- 5 Total Comprehensive Income for the period 1.93 (8.54) 34.71 (6.61) 35.19 187.55
advised that it would make istrate office/courts. [Comprising Profit / (Loss) for the period
the registration process eas- The survey concluded that (a�er tax) and Other Comprehensive Income
(a�er tax)]
ier, faster and without query. asset transfer to legal heirs is
According to the survey, a herculean task in India. As 6 Paid-up equity share capital 35.04 35.04 34.73 35.04 34.73 17.17
52% families who got assets indicated by the survey, only (Face Value of ` 10/- Per Share)
of a demised family member 23% of families were able to 7 Reserves (excluding Revalua�on Reserves) 1,532.31 1,524.17 1,363.07 1,532.31 1,363.07 (701.75)
transferred in the last 10years easily get the assets of a
had to pay bribes in many deceased family member 8 Securi�es premium account 2,718.42 2,718.42 1,072.36 2,718.42 1,072.36 492.30
places. Only 23% families transferred to the legal heirs 9 Net worth 1
1,599.00 1,590.97 1,470.67 1,599.00 1,470.67 1,591.82
were able to easily get the while the majority struggled. 10 Paid-up Debt Capital / Outstanding Debt2 341.90 284.58 - 341.90 - -
assets of a deceased family This struggle has led 52% of
membertransferredwhile the respondents/ their families to 11 Outstanding redeemable preference shares - - - - - -
majority struggled, while pay bribes at several places. 12 Debt Equity Ra�o3 0.21 0.18 - 0.21 - -
86% of families who had to Amongst departments, 86%
pay a bribe to get assets of a of families indicated that 13 Earnings Per Share (`)
(Face Value of ` 10/- each)
demised family member property registration/land
transferred had to pay bribes transfer offices have been - Basic (Refer note 6) 0.55 (3.12) 10.00 (2.12) 10.14 109.45
at property registration or found to be most guilty of this - Diluted (Refer note 6) 0.55 (3.12) 9.91 (2.12) 10.04 53.63
land transfer offices. practice.
These include situations “The need of the hour is for 14 Capital Redemp�on Reserve 0.27 0.27 0.27 0.27 0.27 0.27
where revenue records are not the central government to 15 Debenture Redemp�on Reserve - - - - - -
tallying, queries to prove take up the issue of difficul- 4
16 Debt Service Coverage Ra�o 0.04 (0.02) NA^ 0.02 NA^ 4.07
ancestry, latest government ties faced by citizens in inher-
5
rules oramendments,sharing itance processing as an area of 17 Interest Service Coverage Ra�o 1.48 (1.17) NA^ 0.54 NA^ 4.07
data with the civic authori- reform. Through the Depart- 1
Net worth = Equity share capital + Instruments en�rely equity in nature + Other equity
ties, reducing stamp duties ment of Public Grievances or 2

underignorant causes,among
others.
In terms of categories of
any other ministry or depart-
ment, policies must be estab-
lished which should then be
3
Paid-up Debt Capital / Outstanding Debt = Debt securi�es + Borrowings (other than debt securi�es)
Debt-equity Ra�o = Total debt [Debt securi�es + Borrowings (other than debt securi�es)] / Net worth
4
Debt Service Coverage Ra�o = (Profit before tax, Excep�onal items and Finance cost excluding IND AS 116 impact) / ( Finance cost excluding IND AS 116 impact + Principal
repayment in next six months)
5

^
Interest Service Coverage Ra�o = Profit before tax, Excep�onal items and Finance cost excluding IND AS 116 impact / Finance cost excluding IND AS 116 impact
offices where most families rolled out to the state govern- No borrowing during the period and outstanding as on date. Hence not applicable.

paid a bribe to get assets ments to enable a single win- Notes:

transferred post demise, the
highest were at the property
registration or local land offi-
cials,where 86% of the people
surveyed said they paid bribe,
‘AP, Telangana, Punjab
dow system in all major dis-
tricts for processing of
inheritance or succession
issues,” Local Circles said in a
statement.
1. On August 18, 2022, the Company has changed it's name from Edelweiss Securi�es Limited to Nuvama Wealth Management Limited.
2. The above is an extract of the detailed format of quarterly and half yearly financial results filed with the Stock Exchange in accordance with Regula�on 52 of
the SEBI (Lis�ng Obliga�ons and Disclosure Requirements) Regula�ons, 2015 as amended (the 'Lis�ng Regula�ons, 2015') and the Accoun�ng Standards
specified under sec�on 133 of the Companies Act, 2013 read with the Companies (Indian Accoun�ng Standards) Rules, 2015 as amended and the relevant
provision of the Companies Act, 2013, as applicable. The full format of the financial results are available on the website of the Stock exchange
(www.bseindia.com).
3. For the other line items referred in regula�on 52 (4) of the LODR Regula�ons, per�nent disclosures have been made to the Stock Exchange
(www.bseindia.com).
4. The above standalone financial results of the Company are reviewed and recommended by the Audit Commi�ee and have been approved by the Board of
Directors at its mee�ng held on October 21, 2022.

among states frequently 5. The above standalone financial results for the quarter ended and half year ended September 30, 2022 have been subjected to audit by the Statutory
Auditors of the Company and the auditors have issued an unmodified audit report.
6. Earnings per share for the quarters ended September 30, 2022, June 30, 2022, September 30, 2021 and half year ended September 30, 2022, September
using RBI’s short-term 30, 2021 are not annualised. Earnings per share is calculated on Net profit for the period.

liquidity windows: Report For and on behalf of the Board of Directors

PRESS TRUST OF INDIA The RBI clearly states that Sd/-

Mumbai, October 23 these three provisions for Ashish Kehair
the states "are to help them Managing Director & CEO
ANDHRA, TELANGANA, to tide over temporary mis- Mumbai, October 21, 2022. DIN: 07789972
RAJASTHAN andPunjabalong matches in the cash flows of
with three north-eastern their receipts and pay-
states are repeatedly using the ments".
Reserve Bank's special short- The RBI report further
term liquidity windows notes: "The share of revenue
instead of market borrowings, expenditure in total expen-
indicating their serious cash diture of these states varies
imbalances,says a report. 80-90 per cent with
The north-eastern states Rajasthan, Bengal, Punjab
which are overand again using and Kerala spending around
these facilities are Manipur, 90 per cent in revenue
Mizoram and Nagaland. account. This results in low
The central bank offers expenditure quality, as
threeshort-termliquiditywin- reflected in their high rev-
dows--specialdrawingfacility enue spending to capital
(SDF; for5working days),ways outlay ratios. STANDALONE CONSOLIDATED
and means advances (WMA, "Although welfare-
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
for 5 working days) and over enhancing, the impact of
QUARTER HALF YEAR QUARTER QUARTER HALF YEAR QUARTER
draft (OD,for14working days) revenue spending on eco- PARTICULARS
ENDED ENDED ENDED ENDED ENDED ENDED
facilities to states to tide over nomic activity lasts for just (` in Lakhs)
30.09.2022 30.09.2022 30.09.2021 30.09.2022 30.09.2022 30.09.2021
their liquidity needs. about a year. In contrast, the
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
One of the main reasons for impact of capital outlay is
thestatestousethesewindows stronger and lasts longer, Total income from operations 639,411 1,231,039 543,030 645,130 1,241,112 546,328
is the cheaper pricing than with the peak effect materi-
Net Profit / (Loss) for the period ( before Tax,
marketborrowings.TillAugust, alising after two-three years.
states have availed SDF facility In the medium- to long- Exceptional and/or Extraordinary items) 20,759 62,269 543,030 21,517 63,379 29,794
atanaveragerateof3.2-4.2per term, states with high rev- Net Profit / (Loss) for the period before Tax ( after
cent, while state bonds are enue spending and low capi- Exceptional and/or Extraordinary items) 20,759 62,269 543,030 21,517 63,379 29,794
priced at 7.8 per cent or more. tal investment may
A recent RBI study has experience slower revenue Net Profit / (Loss) for the period after tax (after
identified 10 "vulnerable growth and higher interest Exceptional and/or Extraordinary items) 15,282 46,345 22,550 16,041 47,455 22,265
states" in terms fiscal man- outgo,"warns the RBI report. Total Comprehensive income for the period
agement -- Andhra Pradesh, Maharashtra, Assam and {Comprising Profit/(Loss) for the period (after tax) and
Bihar, Haryana, Jharkhand, Karnataka take recourse to
Other Comprehensive Income (after tax)} 15,282 46,345 22,550 16,041 47,455 22,265
Kerala, Madhya Pradesh, SDF, Kerala uses WMA, while
Punjab, Rajasthan, Uttar majority of the north-east- Paid up equity share capital (Face value of ` 2 each) 501,117 501,117 501,098 501,117 501,117 501,098
Pradesh and Bengal. ern states have been using Reserves (excluding revaluation reserve)
According to the Bank of cash flow management facil- (As per audited Balance sheet of Previous accounting year) 2,873,089 2,873,089 2,818,535 2,868,798 2,868,798 2,812,731
Baroda economist Sonal ity consistently, as of August.
Badhan, such repeated use of On average, Andhra and Securities Premium Account 3,229,498 3,229,498 3,229,492 3,229,498 3,229,498 3,229,492
these facilities show the Telangana have availed Rs (As per audited Balance sheet of Previous accounting year)
deep cash imbalances of 712 crore and Rs 735 crore Net Worth 3,442,699 3,442,699 3,360,770
these states as well as the respectively under SDF facil-
lack of fiscal discipline as ity alone this fiscal year. Of Outstanding Debt 7,649,526 7,649,526 6,384,865
they are spending more than the 153 days till August, Outstanding Redeemable Preference Shares - - -
they are earning, which is an these states availed of SDF
early indicator of the overall for 133 and 152 days respec- Debt Equity Ratio 1.14 1.14 1.47
state of finances. tively, she said. Capital Redemption Reserve - - -
Earnings Per Share (of ` 2/- each) (for continuing
Kerala Gov tells 9 V-Cs to quit and discontinued operations) -

by today, cites SC order
TWODAYSAFTERtheSupreme
Courtheldthattheappointment
of the Vice-Chancellor of APJ
AbdulKalamTechnologicalUni-
versity,Thiruvananthapuram,
was“illegal”and“void ab initio”
as it flouted University Grants
Commission (UGC) norms,Ker-
ala Governor Arif Mohammed
KhanonSundaysoughttheres-
ignationsofV-Csofnineuniver-
sitiesinthestate.
- Basic ` (before and after extraordinary items) 0.06 0.18 0.09 0.06 0.19 0.09
- Diluted ` (before and after extraordinary items) 0.06 0.18 0.09 0.06 0.19 0.09
“Upholding the verdict of
Hon’ble SupremeCourt dt Notes
21.10.22 in Civil Appeal 1. The above is an extract of the detailed format of Quarterly/Annual Financial Results filed with the Stock Exchanges under Regulation 33 and 52 of the SEBI (Listing
Nos.7634-7635 of 2022(@ and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly/Annual Financial Results are available on the Stock Exchange websites
SLP(c)Nos.21108-21109 of (www.bseindia.com and www.nseindia.com) and Banks website www.yesbank.in
2021), Hon'ble Governor Shri 2. Information relating to Total Comprehensive Income and Other Comprehensive income are not furnished as Ind AS is not yet made applicable to banks
Arif Mohammed Khan has
directed Vice Chancellors of 9 For YES BANK Limited
varsities in Kerala to tender res-
Place: Mumbai Prashant Kumar
ignation: PRO, Kerala Raj Bha-
van,”theGovernor’sofficialhan-
Date: October 22, 2022 Managing Director & CEO
dletweeted. —ENS

Pune
Pune