TCS Q2 PAT at Rs 6,055 crore; revenue reported at Rs 27,165 crore
- TCS, India’s largest IT services company, reported 3% sequential revenue growth in the second-quarter, missing analysts’ expectations and falling far short of the high-bar set by rival Infosys.
- For the quarter ended September 30, TCS’ revenue grew 3% to $4.2 billion. Net profit rose 3.2% sequentially to $926 million.
- TCS reported an operating margin of 27.1%, an improvement of 78 basis points sequentially.
- The lacklustre growth will make it harder for TCS to meet its aspiration of growing above the industry.
- Industry lobby Nasscom has also raised concerns about slower growth in the sector and pegged software export revenues to grow 12-14% in FY16, down from 13-15% in FY15.
Police arrest four in Bank of Baroda money laundering probe
- Enforcement Directorate has arrested four people in a case of suspected money laundering through a branch of Bank of Baroda, it said on Tuesday.
- Bank of Baroda, the second-biggest lender, said on Monday it had suspended two senior executives at one of its branches in New Delhi as part of the same probe.
- The four people arrested are described by the agency responsible for fighting financial crimes as coordinators or middle men.
- The Central Bureau of Investigation on Saturday had carried out searches at Bank of Baroda branches in New Delhi in connection with the alleged transfer of Rs 6100 crore black money to Hong Kong.
- P S Jayakumar, the former chief executive of VBHC Value Homes, today took charge as the new MD and CEO of the state-owned Bank of Baroda for three years.
- Ravi Venkatesan, ex-chairman of Microsoft India, has been appointed the non-executive Chairman of BoB.
- The government has also named Rakesh Sharma of Lakshmi Vilas Bank the new MD and CEO of Canara Bank.
SABMiller agrees to mega takeover by rival AB InBev for $109 bn
- British brewer SABMiller announced Tuesday that it had agreed a takeover by Anheuser-Busch InBev, the world’s biggest beer producer, in a deal worth about £71 billion ($109 billion, 96 billion euros).
- The boards of AB InBev and SABMiller announce that they have reached agreement in principle on the key terms of a possible recommended offer” priced at an improved £44 per SABMiller share, the British group said in a statement to the London Stock Exchange.
- The deal is higher than a fourth bid tabled Monday worth about £43.50 a share.
- At £44 a share, the all-cash offer is a premium of about 50 percent to SABMiller’s closing share price on September 14, or final business day prior to renewed speculation of an approach by AB InBev.
India has 2,083 ultra HNIs with more than $50 million net wealth, 3% higher than 2014
- The Credit Suisse Research Institute released its sixth annual Global Wealth Report, which focuses on how the middle class has developed since 2000. It finds that the size and wealth of the middle class globally grew quickly before the financial crisis, but growth has subsided after 2007 and rising inequality has squeezed its share of wealth in every region.
- India’s total household wealth at current dollar terms fell by 1% from mid-2014 to mid-2015 to $ 3.4 trillion; at domestic currency terms, it rose by 4.8%.
- Measured in domestic currency, wealth has grown rapidly in India since 2000, except during the global financial crisis, at an average of 8%. Wealth per adult was just $4,350 in mid-2015
- As in many other developing countries, personal wealth in India is largely made up of property and other real assets, representing 86% of gross household assets.
- Personal debts are estimated to be only $346.
- Only 3% of India’s adult population falls into the middle class wealth band, but its middle class wealth has grown by 150% since 2000 to USD 780 billion, representing 23% of the country’s wealth.
- The average wealth of the middle class in both India is ten times the level of those in the rest of the population.
- At the top of the wealth pyramid, the number of USD millionaires in India is projected to rise by 65% in the next five years to reach 305,000 in 2020, compared to the current 185,000.
- India now has 2,083 ultra-high-net-worth individuals with more than $50 million net wealth, 3% higher than 2014.
China operationalises biggest dam on Brahmaputra in Tibet, India worried
- China today operationalised the $1.5 billion Zam Hydropower Station, the largest in Tibet, built on the Brahmaputra river, which has raised concerns in India over the likelihood of disrupting water supplies.
- All six of the station’s units were incorporated into the power grid on Tuesday, the China Gezhouba Group, a major hydropower contractor based in Wuhan, capital of Hubei Province in central China told state-run Xinhua news agency.
- Located in the Gyaca County, Shannan Prefecture, the Zam Hydropower Station also known as Zangmu Hydropower Station, harnesses the rich water resources of Brahmaputra known in Tibet as Yarlung Zangbo River, a major river which flows through Tibet into India and later into Bangladesh.
- The dam considered to be the world’s highest-altitude hydropower station and the largest of its kind will produce produces 2.5 billion kilowatt-hours of electricity a year.
- Investment of the hydropower station, about 140 kilometers from Tibetan capital Lhasa, totalled 9.6 billion yuan (about $1.5 billion).
- The IMEG noted that the three dams, Jiexu, Zangmu and Jiacha are within 25 kms of each other and are 550 kms from the Indian border.
- India is concerned that if the waters are diverted, then projects on the Brahmaputra, particularly the Upper Siang and Lower Suhansri projects in Arunachal Pradesh, may get affected.