THE MARKETS ON FRIDAY chg# SATURDAY, 31 OCTOBER 2020 l MUMBAI ~10.

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VOLUME VIII NUMBER 13 l 22 pages in 2 sections
Sensex 39,614.1 q 135.8
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Nifty Futures* 11,638.4 q 4.0 COMPANIES P2 BACK PAGE P16
Dollar
Euro
Brent crude ($/bbl)
MARKET CLOSED
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37.1 **
USED-CAR PORTALS STRESS MOUNTS FOR PILOTS
Gold (10 gm)### MARKET CLOSE ~50,636.0**
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# Over previous close; ## At 9 pm IST;
SEE BRISK BUSINESS AS PANDEMIC CLIPS WINGS
### Market rate exclusive of VAT; Source: IBJA P U B L I S HE D S I MU L T A N E O U S L Y F R O M AH M E D AB AD , B E NG AL UR U, B H UB ANE SW AR , CH AND I G AR H , CH E NNAI , H Y D E R AB AD , K OCHI, K OL K ATA, L UCK N OW , MUMBA I (AL SO P R IN TE D IN BHOP AL ), N E W DE L HI AN D P UN E

RIL profit slips 15% as

ACTIVE CASES
VIRUS
TRACKER BELOW 600,000
AFTER 85 DAYS Foreign banks to dial
Total 8,088,851
INDIA
é48,648
diplomatic missions Covid hits oil business
Active cases Recovered Deaths Revenue in line with estimates; profits beat expectations partly
594,386 7,373,375 121,090 due to lower taxes; Ebitda for refining biz declines 21.4% QoQ
ê9,301

WORLD Total
45,192,450
é57,386 é563
Note: Total cases
include 1 migration;
figures as of 9 pm IST;
Sources: Ministry of
over RBI directive AMRITHA PILLAY
Mumbai, 30 October

Mukesh Ambani-promoted
KEY FINANCIALS
Consolidated figures in ~ crore
Q2FY20 Q2FY21 % chg
Health and Family
Welfare, Johns Curbs on multiple current accounts seen as unfair trade practice Reliance Industries (RIL) on Friday Net revenue 1,49,761 1,11,236 -25.7
Deaths Hopkins Coronavirus
reported a 15.1 per cent year-on-
Other income 3155 4249 34.7
1,183,400
Resource Centre ILLUSTRATION: BINAY SINHA
Note: Arrow shows RAGHU MOHAN year decline in its consolidated net
one-day change
Mumbai, 30 October THE FINE PRINT profit to ~9,567 crore for the
September-ended quarter.
PBIDT
Finance cost
25,730
5,450
22,264
6,084
-13.5
11.6
CENTRE MOVES TO
F
oreign banks are set to move their diplo- Consolidated net revenue also PBT 14,965 9,554 -36.2
matic missions against the Reserve Bank of dipped 25.7 per cent year-on-year Tax 3,703 -13 -
COOL DOWN PRICES India’s (RBI’s) directive that bars borrowers
from opening multiple current accounts,
to ~1.11 trillion because of weak per-
formance in the refining, petro- Net profit 11,262 9,567 -15.1 Mukesh Ambani, CMD,

OF VEGETABLES with the lenders alleging that this amounts to an

“unfair trade practice”.
chemicals, and retail businesses.
The profit number beat street
Source: Company Compiled by BS Research Bureau Reliance Industries

The central government would import

25,000 tonnes of onion and 30,000
tonnes of potato, and has also relaxed
the norms for import of pulses to tide
over the sudden increase in prices,
Consumer Affairs Minister Piyush Goyal
said on Friday. So far, 7,000 tonnes of
onion had been imported by private
traders, he said. Kharif onion is expected
to hit the mandis next month.
ECONOMY & PUBLIC AFFAIRS P8
E-bid for commercial
coal mines from Nov 2
The auction of coal blocks for commercial
mining and sale will commence on
November 2, with 19 coal blocks
going under the hammer. This will be
the second and final round of the
auction process wherein interested
bidders will submit financial bids in
real-time on an online platform.
The banking regulator’s decision, taken in August
to curb the rampant fund diversion among bor-
rowers, severely hampers the lucrative cash man-
agement business of foreign banks in particular.
A clutch of leading multinational companies
(MNCs) and domestic firms are currently engaged | Move will severely
with their legal advisors on the recourse available to
them. This is only to get a sense of the options on the
table, and the diplomatic route is the priority as the
12 > verdict after a legal battle may be for the status quo.
India Inc also raised the matter with RBI
Governor Shaktikanta Das during his interaction
with the Federation of Indian Chambers of
Commerce & Industry (Ficci) last month. According
to sources, a joint strategy is now sought to be
worked out with diplomatic missions, the Indian
Banks’ Association, Ficci, and the Confederation of | India Inc raised the
Indian Industry.
The central bank on August 6 linked the opening
of current accounts to a lending relationship follow-
ing prolonged discussions with the Central Vigilance
Commission and the Central Bureau of Investigation
on fund diversion.
The circular said “where a bank’s exposure to a be an escrow mechanism and only banks managing
estimates while revenue was in line
with expectations. In a Bloomberg
Jio Q2 net jumps 3-fold; revenue up 33%
poll, 10 analysts had estimated Reliance Jio on Friday announced that Abu Dhabi Investment Authority
consolidated revenue of ~1.11 tril- and the Public Investment Fund of Saudi Arabia would invest ~7,558 crore
lion and 11 analysts estimated the to purchase a 51 per cent stake in its digital fibre network. The stake
| Joint strategy company’s consolidated adjusted purchase was announced along with the company’s second quarter
affect foreign banks' sought to be net income (net profit) at ~8,387 results. Jio’s net profit almost tripled on a year-on-year (YoY) basis to
cash management worked out with crore for the September quarter. ~2,844 crore. Revenue increased 34.4 per cent YoY to ~17,678 crore. The
business — a big source diplomatic However, part of this was due average revenue per user was up 3 per cent to ~144. 2>
of their fee income missions, Indian to a sharp fall in tax outflow, which
Banks’ Association, the company attributed to the RETAIL ARM NARROWS REVENUE DIP 2>
| MNCs and domestic
change in the tax regime.
firms are in talks with and Ficci
Analysts at Kotak ~minus 13 crore (indicating tax profit before tax and exceptional
their legal advisors on | Diplomatic route Institutional Equities had esti- write-back). items was up 24 per cent.
the recourse available seen as a better bet mated consolidated profit before Sequentially though, the per- According to V Srikanth, joint
to them by foreign banks as tax of ~11,173 crore for the formance shows an improvement chief financial officer, higher oil
the verdict after September quarter and net profit as the country and India Inc prices and retail growth helped in
of ~8,283 crore, implying tax exited the lockdowns and busi- sequential growth in revenue.
matter with RBI a legal battle
expenses of ~2,890 crore. nesses restarted. Besides, petrochemicals perform-
governor Shaktikanta may favour the The actual profit before tax is Sequentially, consolidated net ance helped offset weak refining
Das last month status quo ~9,554 crore and tax expenses are revenue was up 26 per cent and business. Turn to Page 12 >
case of exposures more than ~50 crore, there has to

BPCL puts Bina refinery

expansion plan on hold
Bharat Petroleum Corp has put on hold its
plans to expand its Bina refinery and
install a secondary unit at its Mumbai
refinery to boost efficiency pending
privatisation of the company, its head of
finance N Vijayagopal said. REUTERS
ON
SPECIALS
SATURDAY
WEEKEND RUMINATIONS
Praying for deliverance
The second half of the year should do
better, but non-debt revenue in relation
to GDP will almost certainly shrink for a
third successive year. T N NINAN writes
NATIONAL INTEREST
5 reasons for crisis
in global Islam
If millions of Muslims across the world
feel they are victims of mass
Islamophobia, their holy prophet shown
deliberate disrespect, it is a sense of crisis
and siege. SHEKHAR GUPTA writes
ECONOMY & PUBLIC AFFAIRS P8
I-T refunds worth ~1.27 trn
issued so far: Finance secy
Finance Secretary Ajay Bhushan Pandey
said on Friday that income tax refunds
of about ~1.27 trillion have been sent to
bank accounts of individuals and
businesses so far in the current
financial year. This has been done to
ensure that businesses get liquidity at
this difficult time.
borrower is less than 10 per cent of the exposure of the same can open current accounts.
the banking system to that borrower, while credits While “exposure” for the purpose of these
are freely permitted, debits to the cash credit (CC) instructions has been defined “as the sum of both
and overdraft account (OD) can only be for credit to the sanctioned fund-based and non-fund based
Will not shy away
the CC/OD account of that borrower with a bank that credit facilities”, no foreign bank in the country has
has 10 per cent or more of the exposure of the banking local capital which will enable it take on exposure
system to that borrower”. It further added that in the of 10 per cent to a borrower. Turn to Page 12 >
from tariff hike:
Voda Idea CEO
AXIS BANK REJIGS
Apple posts record Sept ANEESH PHADNIS
Mumbai, 30 October
DEAL FOR MAX LIFE
AFTER RBI HURDLE
quarter sales in India Vodafone Idea will not shy away
from taking the lead in hiking
mobile tariffs, the company
The Axis Bank-Max Financial
deal has run into trouble once
again as this time the RBI did
management said in its not consider the bank’s appl-
Increased demand "WE SET A SEPTEMBER iPhone 12 logs post-result conference call on ication to acquire 17 per cent
11 > for MacBooks QUARTER RECORD IN 25% growth Friday. The financially stressed
telco also set a three-month time- Ravinder Takkar, MD & CEO,
in Max Life Insurance.
Instead, according to the
post-lockdown INDIA, THANKS IN PART TO in pre-orders line to complete its proposed Vodafone Idea, says the company's RBI’s advice, Axis Bank and
further boosts biz A VERY STRONG RECEPTION The newly launched iPhone 12 fundraising by early 2021. plans to raise up to ~25,000 crore its entities have revised the
and iPhone 12 Pro have received While the telecom company’s are on track pact to acquire 19 per cent in
OF THE LAUNCH OF OUR an overwhelming response from second-quarter loss narrowed to the insurance firm, the
ARNAB DUTTA ONLINE STORE local consumers. The two models, ~7,218 crore, its operational per- GAINING STRENGTH lender said. 6>
New Delhi, 30 October which went on sale from Friday, formance was weaker compared to Total no. of
IN THE logged up to 25 per cent growth in its peers. The pending ~58,000- subscribers: 271.8 million
Consumer technology giant Apple COUNTRY" pre-orders over last year’s iPhone crore adjusted gross revenue (AGR)
11 >
has finally managed to turn the
Tim Cook,
11 series, sources said. 2> dues and the refinancing of bank 4G
subscribers:
106.1 million CSR PROJECTS
tide in India. Buoyed by a guarantees remain a major concern.
refreshed India strategy and pent- CEO, AFTER STRONG PRIME Chief Financial Officer Akshaya Average revenue TAKE HIT AMID
up demand for cutting-edge smart Apple Inc
DAY, DIWALI OFF TO A Moondra said so far the company per user: ~119 COVID CHAOS
devices, the firm clocked record had received ~2,000 crore from
sales in the country during the GOOD START: AMAZON P2 > Vodafone Plc and expected to get Data 4,340 billion Companies have been finding
July-September quarter. another ~6,400 crore from the UK volume: MB it tough to execute their CSR
The India numbers were parent company in indemnity pay- Source: Voda Idea Q2 results presentation projects amid lockdowns.
impressive enough to find men- country,” he said during an earn- further details on the India sales ments under the 2017 merger Some have had to pause
tion in Apple CEO Tim Cook’s
earnings call early Friday morn-
ings call early Friday morning.
While the absence of its new
numbers, research firm Canalys
said Apple sold around 800,000
agreement. These receipts from
Vodafone Plc are linked to AGR shy away from taking the first step.
project execution. Others have
altered plans to account for the
ing. “Geographically, we set iPhones during the quarter iPhones during the quarter. dues, for which the next instalment “We have taken it before and we can pandemic to the exclusion of
September quarter records in the heavily impacted its business in The firm regained momentum will be due in March 2022. take it again,” Takkar said and added priorities in previous years.
Americas, Europe and rest of the largest smartphone market, in India with double-digit growth, Telecom companies have main- that there were fairly strong indica- There has been a shift from
Asia Pacific. We also set a Greater China, data shows Canalys observed. “Apple is tained that the current tariff levels tions that competitors would follow plans like supporting cancer
September quarter record in strong pull by iPhone 11 series finally paying attention to India,” are unsustainable but have not suit. In the post-result conference hospitals to giving all the mon-
India, thanks in part to a very and iPhone SE (2020) boosted said Rushabh Doshi, research increased rates. On Friday, Vodafone call, Bharti Airtel had also expressed ey on their budget to deal with
strong reception to this quarter’s Apple’s fortunes here. director at Canalys. Idea Managing Director Ravinder its intention to raise tariffs soon. the pandemic, say advisors.
launch of our online store in the Though Cook did not provide Turn to Page 12 > Takkar said the company would not Turn to Page 12 > SACHIN P MAMPATTA writes 8 >

GST e-invoices jump threefold within month of launch

> NIFTY THIS WEEK

DILASHA SETH to generate IRNs from a government

New Delhi, 30 October PICKING UP NEW MECHANISM portal and these have to be shown to
authorities while moving goods.
The e-invoicing system under the goods nOct 1 nOct29 >E-invoicing mandatory for E-invoicing has been introduced to
and services tax (GST) regime got off to a businesses with turnover of bring in more transparency in reporting
smooth start, overcoming initial ~500 crore and above from October 1 sales, minimising errors and
Net change -288 % change -2.4 apprehensions, with invoice generation > 48,000 GSTINs above the mismatches, automating data entry
per day rising threefold within a month 0.8 8,500 threshold; banking and work, apart from improving
TOP NIFTY 50 GAINERS & LOSERS of its roll-out. mn compliance. It will help prevent tax
2.4 transportation sectors exempt from
Price in ~ Oct 23 Oct 30 % chg About 2.4 million invoice reference e-invoicing evasion once it is made mandatory for
mn 18,111
GAINERS numbers (IRNs), or e-invoices, are being small and medium firms.
> To be extended to businesses with
Kotak Mahindra Bank 1,383.1 1,547.4 11.9 generated daily now, compared with While e-invoicing was made
IRN generation GSTINs issuing e- turnover of ~100 crore and above
Nestle India 15,865.5 17,161.6 8.2 800,000 on October 1, when it was made mandatory for companies with annual
per day invoices from January 1
Shree Cement 20,521.2 21,694.6 5.7 mandatory for entities with turnover of turnover of over ~500 crore in any one of
Note: IRN: Invoice reference numbers; GSTIN:
HDFC Life Insurance Co 564.5 589.8 4.5 ~500 crore or more. > Will be made mandatory for all the preceding three years, the
GST identification numbers
Asian Paints 2,120.3 2,211.5 4.3 Encouraged by this, the government Source: Officials from April 1, 2021 government said no penalty would be
is likely to begin e-invoicing testing for imposed on companies that take IRN
LOSERS
all entities with a turnover of ~50 crore within a month of transporting goods.
Hero MotoCorp 3,111.1 2,799.8 -10.0
or more from November 15, as it plans to the first day. While 48,000 GSTINs are exempted from complying with the rule. been no major complaints or glitches in The government plans to roll it out
State Bank of India 202.8 189.3 -6.7
make it mandatory for them in a phased above the ~500-crore turnover “We have got a very good response as the first month. This is also because for entities with turnover of ~100 crore
HDFC 2,059.7 1,923.6 -6.6
manner. threshold, sectors like transportation, far as e-invoicing is concerned. Largely, these are large companies with sound and above from January 1, 2021, and to
Hindalco Industries 182.3 170.7 -6.4 About 18,111 GST identification insurance, and banking have been all eligible entities have come on board technological systems in place,” said a all firms from the April 1, 2021, for
Bajaj Auto 3,082.3 2,886.9 -6.3 numbers (GSTINs) used e-invoicing as exempted from this. Units in special as some sectors, including banking and government official. business-to-business (B2B)
Compiled by BS Researchc Bureau Source: Bloomberg
of Thursday, compared with 8,000 on economic zones, too, have been transportation, are exempt. There have Under e-invoicing, companies have transactions. Turn to Page 12 >