- #TataMotors Q3: Revenue up 25%; margins expand
- #Sony to continue to arbitrate against #Zee
Tune in to 'The Reporter' for these and more top news of the day. #NDTVProfitLive
- #Sony to continue to arbitrate against #Zee
Tune in to 'The Reporter' for these and more top news of the day. #NDTVProfitLive
Category
📺
TVTranscript
00:00 (upbeat music)
00:02 The Sensex and the Nifty end lower
00:18 after the last hour's sell-off.
00:21 Reliance contributes the most to today's fall in the Nifty.
00:24 Unsecured loans continue to be popular
00:29 among banks and among borrowers.
00:31 Personal loans rise by 23% year to date,
00:35 while outstanding credit card loans
00:37 are up 16.1% in the same period.
00:40 Paytm's wars continue as the stock hits lower circuit
00:46 for the third straight session.
00:48 The company has wiped out over 20,000 crore rupees
00:52 in market cap so far.
00:56 ED investigates the Indian owners named
00:59 in the 2021 Pandora Papers,
01:02 Sense summons and seeks details.
01:04 The government seeks an additional outgo
01:09 of over 78,000 crore rupees
01:12 in the second supplementary demand for grants.
01:15 Jharkhand Chief Minister Champa Sourien
01:20 passes the test vote in the assembly,
01:23 gets 47 votes in the 81 member assembly.
01:27 (upbeat music)
01:32 Hello and welcome.
01:37 You're watching the Reporter on NDTV Profit.
01:40 I'm your host Pallavi Nihata,
01:41 and as always, we bring to you market headlines
01:45 along with national and international newsmakers.
01:49 Now, starting off with an overview
01:51 of how trade looked like today.
01:53 Benchmark indices failed to hold on to the opening gains
01:57 and ended the day in the red.
01:59 Harsh joins us to give us a wrap up
02:01 of all of the market action today.
02:03 Well, yes, absolutely.
02:05 So we had a good day of trade all the way
02:08 till the last hour when markets really took a dive.
02:11 In fact, from the top of the day,
02:13 we fell nearly 200 points to close around a third
02:15 of a percent lower where the Nifty is concerned.
02:18 So almost a percent down from the top for the Nifty.
02:23 Now, in terms of what really moved,
02:26 let's quickly look at the Nifty 50 winners.
02:29 The top two winners on the Nifty 50, UPL,
02:31 was the, sorry, the top two losers on the Nifty 50,
02:35 I'll start off with UPL, the top loser
02:37 on the back of those numbers,
02:39 disappointing numbers that came out.
02:41 Bajaj Finance also fell nearly 3 1/2 plus percent in trade.
02:44 In terms of the gainers, you had Tata Motors,
02:46 again, on the back of numbers.
02:47 Coal India also up, both of which gained 5% plus.
02:51 So definitely positive there.
02:52 When I'm looking at which was the key drags
02:55 in terms of the Nifty contributories,
02:57 you had the likes of Reliance and UPL,
02:59 which led some of those drags,
03:01 and those will come up on the screen next to me.
03:04 Let's quickly look at where the broader markets were.
03:07 They outperformed the Nifty,
03:09 flat on both the mid-cap as well as the small cap.
03:12 In terms of the mid-cap losers,
03:14 the drags were Paytm and Bank of India.
03:17 Paytm, of course, on everything that's playing out,
03:20 Bank of India on the back of numbers.
03:21 The Nifty small cap also was flat.
03:23 You had the likes of an Engineers India,
03:25 which dragged the Nifty small cap,
03:27 and Deepak Fertilizers also was a drag.
03:30 In terms of the top sectoral index for the day,
03:33 you had the Nifty Pharma, which was up,
03:35 and gains were led largely by Glaxo and Lupin,
03:38 both of which were flying away in trade.
03:40 Let's look at the Nifty FMCG as well,
03:42 which was the top sectoral loser,
03:44 closed in the red for the second consecutive session,
03:46 dragged by United Breweries, United Spirits.
03:49 But of course, overall,
03:51 you saw markets down around a third of a percent.
03:54 So it was a tough day of trade,
03:56 especially when we spent most of the day in the green.
03:59 Unsecured loans continue to be popular
04:06 among banks and borrowers.
04:07 Now, contrary to general expectations,
04:10 personal loans have continued to grow
04:12 despite the RBI's restrictions.
04:15 My colleague Mimansa joins us
04:16 with more details on the issue.
04:18 Mimansa, over to you.
04:20 - Yeah, so the demand for unsecured personal loans
04:23 do not seem to be tapering off,
04:26 even as the RBI in November increased the credit risk weight
04:30 by 25 percentage points on unsecured credit,
04:34 which is precisely the credit card loans
04:37 and the consumer loans.
04:39 The latest data from the RBI also shows
04:42 that the unsecured personal loans rose 2.8% month on month,
04:46 as on December 29, to 13.3 lakh crore rupees.
04:50 Year to date, the rise was 23%.
04:53 Similarly, outstanding credit card loans
04:55 were up 3% month on month, to rupees 2.5 lakh crore,
04:59 and year to date were up 16.1%.
05:03 S&P Global expects that the share of unsecured personal loans
05:07 in the bank's total loan book could continue further
05:11 and continue to rise,
05:13 because this will help banks to mitigate the risks on,
05:16 the downside risk on margins,
05:18 which is what we have seen in Q3 as well,
05:22 from tighter liquidity conditions in the banking system.
05:25 Now, the Reserve Bank of India's move
05:27 to increase credit risk weight
05:28 has not yet hindered rapid growth in this segment,
05:32 is what S&P analysts are saying.
05:35 While this has led to a significant hit
05:37 in the capital adequacy ratios of several banks in Q3,
05:40 they are looking to pass on the higher cost of capital
05:44 to personal loan borrowers.
05:45 Now, what we have to see is that,
05:47 how long can the demand for unsecured credit sustain,
05:51 even as the banks decide to raise interest rates
05:56 on these loans.
05:59 - Thanks a lot for that, Mimansa.
06:02 Now, the trouble for Paytm appears to be never ending.
06:05 The company's wars continue,
06:07 as the stock hits lower circuit
06:09 for the third straight session.
06:11 The company has wiped out over 20,000 crore rupees
06:14 in market cap so far.
06:16 Let's go across to Pragati Oberoi
06:18 for the latest on Paytm.
06:20 Pragati.
06:21 - Right, Pallavi.
06:21 Paytm, rather 197 communication
06:24 has been a major dragger in the markets,
06:26 bringing nifty mid-cap also down.
06:28 And for the third consecutive day,
06:30 the stock has tanked, of course,
06:32 on concerns by various entities after RBI's clampdown.
06:36 Now, the latest update we have for you is from last evening,
06:39 because 197 communication denied any investigation
06:43 by ED for anti-money laundering activities.
06:46 The company has also said that neither the company
06:48 nor the CEO are being investigated by ED
06:51 for any money laundering.
06:52 It has also denied any involvement
06:54 in anti-money laundering activities.
06:56 Now, let me put the context very clear
06:58 for our viewers over here.
07:00 About day before yesterday,
07:04 Entity View Profit also exclusively reported
07:06 that the reason behind RBI's clampdown,
07:08 based on sources information,
07:09 was that RBI was suspecting money laundering activities
07:12 happening at Paytm Payments Bank,
07:15 and there were a lot of PAN cards
07:18 that were linked to the same number.
07:21 In fact, there were KYC upgradation concerns
07:23 also at Paytm Payments Bank.
07:25 That was the main reason why RBI clamped down on the entity.
07:28 That's the information we have from sources.
07:30 But 197 communications has come forward
07:32 and denied any such reports.
07:34 And that's the latest update we have for you.
07:36 As we have more, we'll come back to you.
07:38 - Thanks a lot for that, Pragati.
07:41 But stay with us.
07:42 The National Credit Guarantee Trustee Company
07:45 is doing a forensic audit
07:47 of Bandhan Bank's credit guarantee portfolios
07:50 worth rupees 23,300 crore rupees.
07:54 What have you been picking up on that front, Pragati?
07:56 - Right, Balavi.
07:57 So this is an Entity View Profit exclusive.
08:00 We all knew that Bandhan Bank's credit guarantee portfolios
08:03 are under NCGTC's audit.
08:05 And that news came a couple of days back.
08:07 But what Bandhan Bank told the stock exchanges
08:09 on 9th January, that the audit is just for a CGFMU claim,
08:13 that is not true.
08:14 According to an internal document that we have reviewed,
08:17 the forensic audit that is happening
08:19 is not just for the CGFMU claim of FY21.
08:22 It is for two portfolios.
08:24 One is the CGFMU portfolio worth 20,800 crore rupees.
08:28 And the other is the ECLJ's portfolio,
08:30 which is worth 2,500 crore rupees.
08:33 So in entirety, the entire NCGTC forensic audit
08:36 is for credit guarantee portfolios worth 23,300 crore rupees.
08:41 So that's a significant amount.
08:43 And sources also told us that a preliminary audit
08:45 was initially conducted on Bandhan Bank around late 2023.
08:50 But because NCGTC was not satisfied entirely
08:54 with the responses and whatever submissions the bank made,
08:57 they decided to initiate a forensic audit.
08:59 Now, under both schemes, obviously lending happened
09:02 under the amounts that we have clarified.
09:04 And a certain number of borrowers who took that money
09:07 were classified as NPAs.
09:09 NCGTC's main concern, according to the information
09:11 given to us by our sources, is that they can't identify
09:14 who exactly are the 4.9 lakh borrowers that became NPA.
09:19 That's why they have to initiate the forensic audit
09:21 of the entire portfolio, contrary to what banks said
09:26 in the exchange filing, that it is just for the one tranche
09:28 of the portfolio.
09:29 That's the NDTV Profit exclusive for you.
09:32 - Moving on, Tata Motors has announced their Q3 earnings.
09:36 The company's revenue is up by 25%
09:39 and margins have also witnessed an expansion.
09:42 My colleague, Vinay, joins us with the key takeaways.
09:45 Vinay, how will Q3 performance impact
09:48 the company's future growth trajectory?
09:50 - First of all, the profit more than doubled.
09:54 So, and it was a significant beat on the consensus estimates
09:58 and that we are seeing the result is on the stock.
10:01 It has risen quite significantly today.
10:03 And if you look at why this optimism around the company,
10:08 it is because of JLR.
10:10 So JLR's order book is the main reason that the analysts
10:14 are giving so much positive commentary for the company.
10:16 If you look at the company's order book right now,
10:19 it was 148K at the end of Q3.
10:22 It is expected to decline.
10:25 But what is interesting here is that the high margin models
10:28 comprise 55 to 60% of sales and 76% of the order book.
10:33 So obviously analysts are expecting that the good revenue
10:38 and performance of JLR will continue in the coming quarters
10:42 because even if the order book declines
10:45 in the coming quarters,
10:46 you can still have some cushion for the FY25.
10:50 And as analysts have said that the next leg of growth
10:53 will be driven by JLR.
10:56 You can see that Moti Dal Oswal has said
10:58 that it expects EBIT margin to reach 9.9% by FY26.
11:03 And Nomura has said that the success of JLR's EVs
11:06 may drive re-rating as well.
11:08 - Thanks a lot, Vinay.
11:12 The stock was up nearly about 5.5% in today's trade.
11:17 Moving on, there's also a fresh update
11:19 in the Sony Z merger saga.
11:21 Sony is planning to continue to arbitrate against Z
11:25 in Singapore.
11:26 Sony's plan comes at a time when the SIC
11:30 has defined interim relief to the company.
11:33 Varun joins us with more details on the news.
11:36 Varun, what does this mean for both the parties involved?
11:39 - Yeah, hi.
11:45 So yeah, in a statement to NDTV Profits,
11:47 Sony has said that it is disappointed in the decision
11:50 rendered by the Singapore International Arbitration Center
11:53 to deny interim relief to the media giant.
11:56 This statement comes a day after the SIAC had said
11:59 that it has no jurisdiction or authority
12:01 to injunct Z Enterprises
12:03 from approaching the National Company Law Tribunal
12:06 to implement the merger scheme.
12:08 As we all know, Z has moved the NCLT
12:10 for an implementation of the $10 billion merger
12:12 between Z and Sony.
12:14 Now, Sony has said that SIAC's decision
12:16 is only a procedural one
12:18 and that it will continue to vigorously arbitrate this matter
12:22 before a full tribunal in Singapore.
12:24 And it has also said that it will pursue its right
12:26 to terminate the merger agreement
12:29 and also seek a termination fee and other remedies.
12:32 It further said that it is confident
12:34 in the merits of its position,
12:36 both in India and in Singapore.
12:38 - Thanks a lot for that.
12:42 Now, we bring to you yet another NDTV Profit exclusive.
12:46 Implementation of the Cashless Everywhere initiative
12:49 may prolong the working capital cycle
12:52 for hospitals from 45 days to 60 days.
12:55 My colleague, Monal, brings us the details
12:58 on this development.
12:59 Over to you, Monal.
13:00 - Well, the Cashless Everywhere initiative,
13:04 which was introduced on Jan 25,
13:06 essentially means that policyholders
13:08 can now approach any hospital of their choice
13:10 to achieve a cashless treatment.
13:12 While we took a look at what it would do to insurers,
13:16 maybe impact short-term payment cycles for them,
13:19 let's take a look at how it will impact
13:21 the financials of hospitals.
13:24 Our conversation with industry leaders and hospitals
13:28 indicates that it could take up
13:29 the working capital requirement to up to 60 days
13:33 from currently 45 days.
13:35 This would typically mean that there's a shift
13:37 in the payer mix of the hospital
13:38 and a higher dependence on insurers.
13:43 Currently, 50 to 70% of hospitals' overall revenue
13:47 comes from insurance and government schemes.
13:50 Now, if you were to look at the broader picture,
13:52 say the total health claims for the industry in FY23,
13:56 it was around 71,000 crore of health claims.
14:00 Of this, only reimbursement claims
14:02 were close to 25,000 crore rupees.
14:05 Now, imagine this 25,000 would now be paid
14:08 at the insurer's discretion on a cashless system.
14:12 This would mean a huge working capital block for hospitals.
14:16 Now, it would also have some impact
14:19 on the average revenue per occupied bed,
14:21 which is the RPERB of hospitals.
14:24 The insurer and the hospitals negotiate on certain terms.
14:27 If the terms are favorable,
14:29 it could mean an increase in the RPERB,
14:30 but if they are not,
14:32 it could also mean that the RPERB could go down.
14:34 The industry is also looking at coming together,
14:38 that is the General Insurance Council,
14:40 is proposing a common empanelment rate for hospitals.
14:44 Now, if this were to come into picture
14:46 in the next couple of months,
14:47 it would mean that all the insurers collectively
14:50 will negotiate rates for empanelment with hospitals,
14:54 which would give a greater bargaining power to insurers,
14:57 and on the other hand,
14:58 have an impact on the hospital's revenue.
15:02 There are upsides to this as per the industry,
15:04 which says that it would increase the patient volume
15:06 that's coming into the hospitals,
15:08 and would also increase operational efficiency.
15:10 - Thanks a lot for that, Monal.
15:13 Monal also spoke to Nilesh Kambi,
15:15 the Chief Financial Officer
15:17 of Star Health and Allied Insurance.
15:20 Let's listen into a slice of that conversation,
15:22 especially what he has to say
15:25 on Cashless Everywhere initiative.
15:27 - When it comes to awareness of insurance,
15:30 you know, India continues to be an underpenetrated market.
15:33 COVID has created customer awareness
15:35 and the importance of health insurance.
15:37 When you talk about penetration,
15:39 only 54 million lives are covered.
15:40 You know, 4% of the Indian population
15:42 is covered through retail health insurance.
15:43 So there is enough and more opportunity for growth
15:46 for the segment and for the wellbeing of the society.
15:49 You know, cashless claims against the rates
15:52 are negotiated to an extent with the hospitals.
15:54 We know that this hospital charges good rates
15:58 or, you know, are not doing any practices
16:00 which are not in the interest of the customers.
16:02 So that also helps us to build a good relationship
16:05 with the hospital.
16:06 Overall, it will help the profitability.
16:08 It will help in improving customer service.
16:10 There'll be low customer grievances
16:11 which will further improve the penetration
16:13 of health insurance in the country.
16:14 So it's a very good step forward.
16:17 - And with that, it's time to slip into a short break.
16:22 We have a lot more lined up for you on the other side.
16:24 So stay tuned.
16:26 (upbeat music)
16:33 (upbeat music)
16:36 (upbeat music)
16:38 (upbeat music)
16:41 (upbeat music)
16:44 (upbeat music)
16:51 (upbeat music)
16:58 (upbeat music)
17:08 (upbeat music)
17:11 (upbeat music)
17:19 (upbeat music)
17:27 (upbeat music)
17:39 (upbeat music)
17:42 (upbeat music)
17:44 (upbeat music)
17:54 (upbeat music)
18:05 (upbeat music)
18:08 (upbeat music)
18:18 (upbeat music)
18:27 (upbeat music)
18:29 (upbeat music)
18:39 (upbeat music)
18:49 (upbeat music)
18:52 (upbeat music)
19:13 - Welcome back.
19:19 You're watching the Reporter on NDTV Profit.
19:21 Now the Enforcement Directorate
19:23 is presently conducting investigations
19:26 against the Indian owners named in the 2021 Pandora Papers.
19:31 The names include Sachin Tendulkar, Anil Ambani,
19:34 Neera Radia and more.
19:36 My colleague Charu Singh joins us to tell us more
19:39 about these ongoing investigations.
19:41 - Hi Pallavi, so as we all know that these Pandora Papers
19:46 are 11.9 million confidential documents
19:50 which have been taken from offshore service providers.
19:53 And they talk about 29,000 offshore entities
19:57 that have been used by a lot of affluent people globally.
20:01 Now the report that we are bringing right now
20:03 is about the Enforcement Directorate steps
20:06 taken against the Indian names
20:08 that came out in these papers.
20:10 These involve a lot of wealthy and affluent people
20:14 of our country including Anil Ambani,
20:16 Cricketer Sachin Tendulkar
20:17 and even Gautam Singh Hania of Raymond background.
20:21 And we have the lawyer Harish Salve, Neera Radia.
20:25 Apart from her we also have the Maharaja of Jodhpur,
20:28 Gaj Singh, Samir Thapar and Lalit Goyal.
20:31 Now what we are going to do is we are going to take a look
20:33 at what is the status of the probe
20:34 that is going on against all of them, you know, through ED.
20:39 So coming on to Anil Ambani,
20:41 currently ED has sought more details
20:43 and has issued directives
20:45 and summons under the FEMA provisions.
20:47 For Sachin Tendulkar, directives have been issued
20:50 on his company and Egmont request has been sent
20:53 to Financial Investigation Unit BBI,
20:55 which is to basically get more information
20:57 and cooperation from the, you know,
21:00 financial investigation units around the world.
21:03 And for Harish Salve as well,
21:04 inquiry has been initiated
21:06 and Egmont request has been sent.
21:07 For Neera Radia, searches have been conducted
21:10 and data has been seized under analysis
21:12 and investigation is still going on.
21:14 For Gaj Singh, again, Egmont request has been sent
21:17 concerning Wore Limited UK and replies have been received.
21:20 And coming on to Lalit Goyal again,
21:23 who was arrested in November, 2021
21:25 and later released on bail,
21:27 Egmont requests have been sent to identify foreign assets.
21:31 That's all for now.
21:32 And we'll close the follow-up
21:33 to get more information on this.
21:35 Thanks a lot for that, Charu.
21:37 Now in an exclusive interaction with NDTV Profit,
21:41 Radu CEO, Adrian Bossard has said
21:44 that the Indian growth story is here to stay
21:47 for at least the next five years.
21:49 Sesha joins us to tell us more about that.
21:52 Right, so India outpaced China
21:58 to become the largest market for Radu Watch Company.
22:03 2023, in fact, marked the record sales growth
22:07 registering double digit sales in the Indian market.
22:10 However, the trend of increasing sales,
22:14 you know, it is not just limited to Radu,
22:17 but if we look at the data
22:18 from the Federation of Swiss Watch Industry,
22:22 India imported watches worth over 2000 crore,
22:25 which is an all time high.
22:28 However, given the penetration level,
22:31 India remains low and is ranked at 22.
22:34 Now, the higher exports,
22:36 the higher imports from India comes at a time
22:40 when the larger Asian market, that is China,
22:43 imported just 7.6% growth
22:47 in terms of imports of Swiss watches.
22:51 And if we compare it to 2021 levels,
22:53 that's a decline of 6.9%.
22:56 Now, Adrian Bossard, who is the global CEO for Radu,
23:00 expects the Indian growth story to remain,
23:03 you know, strong in the next five years.
23:06 This would be driven by the rising affluence
23:09 and as well as the expanding consumer base in India.
23:13 - Thanks a lot for that.
23:17 Now, moving on, the government has sought an additional
23:20 outgo of over 78,000 crore rupees
23:23 in the second supplementary demand for grants.
23:26 Let's go across to my colleague,
23:27 Janani Janardhanan for more on this.
23:30 Janani, what's the government's plan
23:31 and how does it plan to utilize the additional money?
23:34 (mouse clicking)
23:37 - Thank you, Pallavi.
23:39 Like you said, the government has sought
23:41 for a second supplementary demand for grants
23:43 from the parliament today on Monday.
23:45 And what this is, is in fact a nod
23:47 for an additional spending of 78,673 crore.
23:52 This is the additional outgo that'll go.
23:54 However, the total additional expenditure is,
23:56 they're picking it at around two lakh crores.
23:58 So a majority of this, almost close to 1,21,000 crore,
24:02 is going to be matched by departmental
24:04 and ministerial savings.
24:06 But like you said, onto the more important question,
24:08 where is this money being used?
24:10 Primarily, one, it's going towards the Mandrega scheme,
24:13 which is the Mahatma Gandhi
24:14 National Rural Employment Guarantee Act.
24:17 So considering the claims that have been coming
24:19 for this demand-driven scheme,
24:21 the government has sought to allocate 10,798 crore.
24:25 There's also a higher outlay for education.
24:27 This is something that we're seeing new
24:29 for the Madhyamam and Uttar Siksha Akhosh.
24:32 This is going almost 12,500 crore.
24:34 In fact, more than the Mandrega allotment.
24:36 This is the highest allotment that's going
24:38 in this supplementary demand for grants.
24:41 Of course, then the food subsidy, the PMGKY,
24:43 which was extended for five more years
24:45 as announced by the prime minister before,
24:47 an expense that was in fact expected.
24:51 There's also defense pay and allowances.
24:53 That has had a considerable outlay of 9,162,000 crores.
25:00 Of course, there's also the Senior Citizen Welfare Fund
25:03 and defense and pension retirement.
25:05 So a lot even on pension and retirement benefits.
25:08 The defense pension and retirement fund,
25:11 almost 3,890 crore going towards that.
25:15 So as you can see, there is a spread focus,
25:17 one towards Mandrega, towards food subsidies.
25:20 These are the essential subsidies.
25:22 And the other towards social schemes
25:24 like pension and retirement benefits and education.
25:27 Back to you.
25:30 - Thanks a lot for that, Janani.
25:31 Now the JMM's Champai Soren won a test of strength
25:35 in the Jharkhand Assembly today.
25:37 Champai Soren led government won the floor test
25:39 after getting 47 votes in the 81-member assembly.
25:44 Arrested JMM leader and former Jharkhand Chief Minister,
25:48 Hemant Soren was present in the assembly in Raipur
25:51 to take part in the trust vote.
25:58 That's all we have for you today
26:00 on this edition of The Reporter,
26:02 but stay tuned to NDTV Profit for more news and updates.
26:07 (upbeat music)
26:10 (upbeat music)
26:13 (upbeat music)
26:16 (upbeat music)
26:19 (upbeat music)
26:21 (upbeat music)
26:32 (upbeat music)
26:43 (upbeat music)
26:45 (upbeat music)
26:55 (upbeat music)
26:57 (upbeat music)