Top Headlines: Inflation impact on India Inc profit, new SEZ law, and more

The early-bird results for the April-June 2022 quarter hinted at a decline in earnings, even as corporate revenue continued to grow at a fast clip. Meanwhile, the new law proposed for governing special economic zones (SEZs) is set to be compliant with WTO norms and may do away with net foreign exchange (NFE) earnings as an evaluation criterion for SEZ units, Read more on these in our morning top headlines.

Q1 early-bird results show inflation effect on India Inc's profits

The early-bird results for the April-June 2022 quarter (Q1FY23) hinted at a decline in earnings, even as corporate revenue continued to grow at a fast clip. This was largely because of higher commodity prices and sharp inflation. Banks and Reliance Industries (RIL) together accounted for the bulk of incremental growth in corporate earnings in Q1FY23. On the other hand, IT services exporters, and mining & metals companies were a disappointment on this front. Read more
 

New SEZ law to focus on job creation and research, not foreign exchange

The new law proposed for governing special economic zones (SEZs) is set to be compliant with World Trade Organization (WTO) norms and may do away with net foreign exchange (NFE) earnings as an evaluation criterion for SEZ units. The Development of Enterprise and Service Hubs (DESH) Bill, which is scheduled to be tabled in the ongoing Monsoon Session of Parliament, seeks to introduce the concept of net positive growth for the evaluation of the performance of such units, said people in the know. Read more
 

PM Narendra Modi asks BJP-ruled states to boost business environment

PM Narendra Modi on Sunday held a marathon meeting with chief ministers and deputy chief ministers of BJP-ruled states, and asked them to ensure saturation-level coverage of welfare schemes and boost the business environment in the country. The meeting, which lasted for over four hours, was attended by chief ministers and deputy chief ministers of 18 states. Read more
 

Jio, Airtel poised to gain at Vodafone Idea's expense in 5G auction

With a war chest of around Rs 1.75 trillion (or 90 per cent of the total) for the upcoming 5G auction on Tuesday, Reliance Jio and Bharti Airtel are well positioned to accelerate their share in the market and revenue at the expense of Vodafone Idea (VIL), say most analysts. Nomura Research goes further to say as a result “India’s telecom sector could end up as a virtual duopoly once again”. Read more
 

Hybrids vs Electric vehicles battle to hot up in India's car market

There is nothing ‘mild’ about hybrids anymore. Hyderabad-based Unmesh Chalapally (29), working for a US-based KPO, had almost made up his mind to go for the latest Tata Nexon EV as his first car, until he heard of the twin strong hybrid launches. “I’m going to withdraw my booking amount and now wait till September when both Toyota Hyryder and Grand Vitara announce their prices. As with the strong hybrids, the range anxiety and overall driving dynamics of speed and terrain preparedness are gone,” says the techie. Read more