Top headlines: Slower revenue growth for TCS, Jio unlikely to raise tariffs

From S&P Ratings predicting slower revenue growth for TCS, states to pitch for timely GST compensation at Council meet to cinemas getting ready to open in September, here are top headlines of the day

TCS may see slower revenue growth, profitability over 12-18 months: S&P

S&P Global Ratings on Tuesday said Tata Consultancy Services (TCS) is likely to face slower growth in revenue and profitability over the next 12-18 months, given subdued global information technology (IT) spending. However, the Mumbai-based IT major's robust cash position and prudent financial policies will continue to support its financial position,it said. "We are revising our outlook on TCS to stable from positive. At the same time, we affirmed our 'A' long-term issuer credit rating on the company," S&P Global Ratings said in a statement. Read More...

States to pitch for dispute resolution system at GST Council meet on Aug 27

States will pitch for putting in place a dispute resolution mechanism in the absence of consensus over the compensation payout by the Centre at the meeting of the goods and services tax (GST) Council on Thursday. In what is expected to be a stormy meeting between the Centre and states, the latter will press for a vice-chairman post in the council, besides demanding full and timely compensation as “guaranteed by the Constitution of India”.  Read More...

Come September, cinemas ready with discounts on movie tickets, food

Movie halls in India, shut since March due to the Covid-19 pandemic and lockdown, expect to reopen their doors in September. While most other businesses including malls, salons, gyms, restaurants and marketplaces have reopened as part of a phase-wise Unlock programme, theatres have remained out of the purview so far. Cinema owners, especially, multiplex operators hope this will be corrected in the fourth phase of the Unlock programme that will commence next month. Read More...

Festive strategy: Digital shoppers in focus as firms eye sales turnaround

Brands in consumer goods and retail are responding to the challenge by showing empathy, improving their safety, health and affordability quotient, and devising unique go-to-market strategies to woo people this festive season. The three-month period from Ganesh Chaturthi to Onam, Navratri, Durga Puja, Dussehra, and Diwali is an important time for most consumer-facing businesses. But for some, including those in durables and retail, it remains the most critical period in their accounting calendar, constituting a third of their sales. Read More...

India to post strong GDP growth pick up in second half of 2020: Moody's

Moody's Investors Service on Tuesday said India, China and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020, and retained its projection of 3.1 per cent growth contraction for India in 2020. "The economic outlook of emerging market countries is more challenging than in advanced economies. In our baseline projections, China, India and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020 and full-year 2021 to end next year above pre-coronavirus levels," Moody's said in the August update of Global Macro Outlook 2020-21. Read More...

No freebies, cash discounts to cheer car buyers this festive season

If you’re a would-be car buyer and you’re expecting to get eye-popping discounts, offers and freebies this festive season, you’re probably in for a disappointment. Pandemic-hit auto majors are likely to set aside these time-tested strategies for now, and, instead, focus on attractive finance schemes and an enhanced digital experience. On an average, festivals — from Ganesh Chaturthi right up to Diwali — account for anywhere between 17 and 19 per cent of the annual sales of passenger car makers. Read More...

Coming next: Most-watched IPL in the time of Covid-19 pandemic

Ever since it was announced that the delayed-due-to-the-pandemic IPL will be held sans spectators in the United Arab Emirates, fan sites have been rife with speculation. There is, however, no speculation on the viewership. “Ratings will be good. This will be the biggest IPL ever,” says Vinit Karnik, business head for entertainment, sports and live events, Group M, India’s largest media buying agency. “Dream11 IPL will be the biggest platform available for marketers during this festive season.” declares Gautam Thakar, CEO, Star Sports. Read More...

Jio unlikely to increase tariffs the way incumbent operators are thinking

Incumbent telecom operators are bracing for a tariff hike. The question is not if, but how much and how soon. Bharti Airtel’s Sunil Mittal says that, to his mind, Average Revenue Per User or ARPUs need to hit Rs 300, or double Airtel’s current figure, if the industry is to stabilize. Yet sources close to Reliance Jio say the company has not yet taken a call as it is focussed on increasing its market share to 50 per cent. In any case, its tariffs are even now about 20 per cent lower than its competitors. Read More...

Tata Motors group says will cut consolidated debt to zero in 3 years

The Tata Motors group has set a target of reducing its consolidated automotive net debt (excludes the company’s vehicle finance business) to near zero in the next three years, the company’s Chairman N Chandrasekaran (Chandra) told shareholders at the 75th annual general meeting on Tuesday. “Currently the group has a net automotive debt of Rs 48,000 crore and we are deleveraging this business substantially. The target is to bring it to near zero debt levels in the next three years,” he said. Read More...

Domestic pharma firms working on new repurposed drug for Covid-19

Domestic drug firms are working on re-purposed drugs that might be used to treat Covid-19. Earlier last week, the subject expert committee (SEC) on Covid-19 reviewed some proposals and approved a few. Ahmedabad-based Intas Pharmaceuticals got the nod to conduct phase-II trials for hyperimmune globulin, while Bengaluru-based firm IDRS Labs was asked to submit more data to support its proposal. Meanwhile, Jubilant Life Sciences got approval to conduct phase-IV clinical trials for remdesivir. Read More...