ECONOMY, P2 COMPANIES, P5 INTERNATIONAL, P7 APRIL ROLLOUT LIKELY `6 CRORE IN FY23 COST-CUTTING MEASURES Direct listing of firms on GIFT City bourses soon: Sitharaman SpiceJet chairman Ajay Singh’s salary soars to 3-year high Google fires hundreds in assistant, hardware, engineering teams CHENNAI/KOCHI, FRIDAY, JANUARY 12, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLIV 211, 24 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 71,721.18 ▲ 63.47 NIFTY: 21,647.20 ▲ 28.50 NIKKEI 225: 35,049.86 ▲ 608.14 HANG SENG: 16,302.04 ▲ 204.76 `/$: 83.03 < > 0.00 `/€: 91.03 ▲ 0.13 BRENT: $78.18 ▲ $1.38 GOLD: `62,028 ▼ `101 — Revenue THE CENTRE'S DIRECT tax collections, net of refunds, stood at `14.70 trillion up to January 10 in FY24, up 19.4% on year, accounting for 80.6% of the BE and may exceed the target by at least `1 trillion. ■ PAGE 3 PHONEPE, PAYTM LINKED TO PAYNOW IN SINGAPORE THE CROSS-BORDER LINKAGE between India’s unified payments interface and Singapore’s PayNow is live on BHIM, PhonePe and Paytm. ■ PAGE 6 FE S P E C I A L Operating profit 59,692 DIRECTTAX MOP-UP MAY CROSS TARGET BYAT LEAST `1 TRN Q2FY24 1.5 Q3FY24 Net profit 2.0 2.5 % change, q-o-q TCS consolidated financials Reliance chairman MukeshAmbani enters the world's exclusive $100-billion club, joins Elon Musk, Jeff Bezos in the elite list. (in $ billion) 2 3 BernardArnault & family Rank 183.2 4 JeffBezos 176.7 7 Warren Buffett Operating profit 1 Elon Musk 235.3 9 10 Sergey Brin 113.9 SHAKTIKANTA DAS, RBI GOVERNOR BANKS AND NBFCs MUST APPRAISE ROBUSTNESS OF MODELS USED FOR LENDING. EMERGING MARKETS AND THE WORLD CANNOT AFFORD TO HAVE A CRYPTO MANIA. INSIDE Insolvency process delays erode asset value: RBI guv PAGE 6 atthemoment,and eventheunsecured consumer loans’ asset quality is withinreasonable limits.According to the RBI’s latest data, while banks’ non- Net profit 0.4 3.8 6,106 6,212 7,961 38,821 38,994 Revenue Q3FY24 1.7 % change, q-o-q Infosys consolidated financials INSIDE Headcount falls 7% in 12 months PAGE 4 and automation,” Salil Parekh, CEO and MD, said.“Our clients are leveraging our Topaz generative AI capabilities and ourCobalt cloud capabilities to create long-term value for theirbusinesses,” he added. Continued on Page 11 MukeshAmbani 105.2 Mark Zuckerberg 133 128.3 118.8 12 Steve Ballmer 113.3 food credit rose nearly 21% y-o-y to `155.80 trillion as of November 17, personal loans grew 30% y-o-y to `50.56trillion. OntheUSequitymarketregulator allowing bitcoin exchange-traded funds(ETFs)tolistonbourses,Dassaid RBI’s view remains unchanged that cryptoposesasignificantthreattothe financial stabilityof the country.“Our position, my position and the RBI’s position on this remain unchanged irrespective ofwho doeswhat. Just because someone has done something, we are not here to emulate them,”he said.He said emerging markets cannot afford to have a “crypto mania”. He said travelling down this pathwill create huge risks whichwillbeverydifficulttocontain going forward. Das also pushed back against the International Monetary Fund’s exchange rate regime reclassification. “Some people read it wrongly and call it a stabilised arrangement. But it is not justified, it is market determined,” he said. Carlos Slim Helu & family 102 FE BUREAU & AGENCIES Mumbai, January 11 IN A MEASURE THAT could bring relief to promoters of startups, the Securities and Exchange Board of India (Sebi) is in favour of relaxing the rules on the minimum promoters’ contribution at the time of an initial public offering (IPO). As startup founders typically dilute their stakes in the course of fundraises,theyare often unable to meet the minimum 20% stake required post the IPO. Inadiscussionpaperreleasedon Thursday, Sebi has also recommended that listing regulations be eased such that the application of the regulations is more dynamic. An expert committee’s suggestions for the ease of doing business and for the harmonisation of Sebi (Listing Obligations and Disclosure Requirements) Regulations (LODR Regulations) and of Sebi (Issue of Capital and Disclosure Requirements) Regulations (ICDR Regulations) are contained in the paper. The consultation paper notes that the LODR regulations, which areapplicableonthebasisofmarket capitalisation,remaineffective“forever”even if the figure falls and the entity moves out of top rankings. Thecommitteehassuggestedthata sunsetclausebeadded,sothatifthe ranking of the entity changes for three consecutive years,the regulatory provisions should cease to be 11 SUMER JUNEJA, HEAD OF INDIA & EMEA, SOFTBANK INVESTMENT ADVISERS WE WILL DO SMALLER CHEQUES, BUT NOT LOWER THAN $50 MILLION." FOUNDERS WILL COME TO TERMS WITH A RESET IN VALUATIONS IN 2024." ● REPORT ON PAGE 4 ON THE TABLE ■ More flexibility on meeting minimum promoters' contribution at the time ofa public issue ■ As founders ■ Listing regulations to be eased such that the application ofthe regulations is more dynamic typically dilute their stakes in the course of fundraises, they are often unable to meet the minimum 20% stake post IPO ■ Sunset clause be added so that if ranking of the entity changes for 3 consecutive years, provisions should cease to be applicable ■ Market participants can comment on the proposed revisions by February 1 applicable for the listed entity. Additionally, the expert panel has suggested the inclusion of equity shares received on conversion or exchange of fully paid-up compulsory convertible securities and depository receipts held for more than one year, for minimum promoters'contribution. Continued on Page 11 Ad spends likely to rise by up to 15% VIVEAT SUSAN PINTO Mumbai, January 11 Larry Page 119.2 Das flags algo-based lending RESERVEBANKOFIndia(RBI)governor Shaktikanta Das on Thursday warned financial institutions against the potential risks of relying on algorithm- or model-based lending. Lenders must continuouslymaintain vigil on the efficiencyof such models, he said at an event organised byMint. Das urged banks and non-banking financial companies (NBFCs) to “appraise robustness of models used for lending”. He said, “The ground realities keep on changing. So, it is important to monitor whether your modelisfallingbehindthecurveoris in tune with the times, and what are the possible risks.” He pointed out that RBI noticed there was a “fear of missing out” or a FOMOapproachbuildingamonglendersinrelationtopersonalloangrowth.What led the RBI to hike the risk weight,hesaid,wastheexcessiveexuberance that was building up within lenders. Tightening restrictions on risky lending, the RBI had hiked the riskweight on personal loans by25% to 125% in Novemberlastyear. Dassaidthecountry’sbankingsector remains fairly resilient and robust Q2FY24 8 CRYPTO POSES RISK TO EMERGING MARKETS PIYUSH SHUKLA Mumbai, January 11 (` crore) Discussion paper tweaks promoter stake norms 5 Larry Ellison Bill Gates 120.3 What made 2023 the warmest year on record ■ EXPLAINER, P9 REPORT CARD AMBANI JOINS $100-BN CLUB 6 High surface temperatures in the oceans, and a shift from La Nina to El Nino conditions added to the warming INFOSYS,THECOUNTRY'SsecondlargestITfirm,onThursdaynarrowed itsrevenuegrowthguidanceforFY24 to 1.5-2%. It had slashed the guidanceduringtheprecedingquarterto 1-2.5% from 1-3.5%. However, the company has retained its operating margin target of20-22%. The IT major reported a consolidated net profit of `6,106 crore, down 1.7% sequentially, for the October-Decemberquarter.Thiswas in line with Bloomberg consensus estimate of `6,161crore. Infosys’ American Depository Receipt (ADR) shares jumped nearly 5% despite theweak performance. Consolidated revenue came in at `38,821crore,down0.4%q-o-qbut above estimates of `38,694 crore. Operatingprofitat`7,961crorewas down 3.8% sequentially and also below estimates of `9,102 crore. Operatingmarginwasdown70basis points to 20.5% TheOctober-Decemberquarteris generally a weak quarter for IT companies as adverse impact from furloughs and fewer working days comes into effect.“Ourperformance in Q3 was resilient. Large deal wins werestrongat$3.2billion,with71% of this as net new,reflecting the relevanceandstrengthofourportfolioof offeringsrangingfromgenerativeAI, digital and cloud to cost, efficiency easier rules for startup listings THEADVERTISING EXPENDITURE (adex) growth rate has been projected at 11-15% this year by GroupM, Dentsu and IPG Mediabrands — three of the country’s top media agencies. This projection comes at a time when the global advertising growth rate is seen mutedat4-6%amidslowdownand geopolitical concerns. India is also likely to top the `1trillion mark in terms of ad spends for the second year in a row, led by digital, television and print advertising. It will also emerge amongst the fastest-growing ad markets in the world, standing eighth overall from ninth position earlier. Factors such as advertising around the general and state elections (eightstateswillgo tothe polls this year) coupled with a likely resurgence in sectors such as fastmoving consumer goods (FMCG) are expected to aid adex growth in 2024,the media agencies said. “Despite the current worldwide geopolitical instabilities and eco- GROWTH CURVE (%) India Global average 15 14.5 11-15 REPORT CARD (` crore) SAMEER RANJAN BAKSHI Bengaluru, January 11 8,274 RISING HOME LOAN rates have dampened the demand for home loans, reports Sachin Kumar. Total outstanding home loans grew to `19.9 trillion in the quarter ended June 2023, slowest since September 2021. ■ PAGE 6 suit in the US. Excluding this onetime charge, the IT major posted a 3.8% rise in net profit on a quarTATA CONSULTANCY SERVICES ter-on-quarter basis. (TCS), the country’s largest IT Consolidated revenue in the company, on Thursday reported a reportingquarterwasup1.5%q-o-q 2.5% sequential decline in its con- at `60,583 crore, above the solidated net profit to BloombergconsensusestiINSIDE `11,058 crore. The IT mates of `60,104 crore. firm missed Bloomberg Headcount Operating profit at consensus estimates of declines by `14,197 crore was down `11,497 crore in a sea- 5,680 in Q3 2% sequentially. Operatsonally weak Octobering margin was at 23.4% ■ PAGE 4 December quarter. against 24.3% in the preAnalysts said that ceding quarter. companies across the world are yet TCS’board also declared a third to revive their IT spending and interim dividend of `9 and a spebudgets are not going to pick up cial dividend of `18 per share,with going ahead. a record date of January 1 and payNet profit in Q3 was impacted ment date of February 5. by a one-time payment of $125 million for settlement of a legal Continued on Page 11 11,058 RISING INTEREST RATES DENT HOME LOAN DEMAND RAJESH KURUP Mumbai, January 11 11,342 INDIA IS EXPECTED to add 8-10 GW of renewable energy capacity in Q4FY24, compared with less than 7 GW in the first three quarters, reports Arunima Bharadwaj. This would help narrow the wide gap between the actual RE capacity creation and the annual 20 GW target. ■ PAGE 2 TCS misses estimates, Infosys narrows FY24 logs 2.5% fall in profit revenue guidance 14,197 RENEWABLE ENERGY CAPACITYADDITION MAYTOP 8 GW IN Q4 IT giants feel the winter chill Sebi proposes 14,483 NEWS 60,583 IN THE 6.5 2022 5.8 2023 4-6 2024# (figures are forecasts); #Estimate Source: GroupM/Magna/Dentsu nomic outlook, major political and sporting events in 2024in keymarkets (such as the UK, South Africa, the US, Mexico, India and Indonesia)will create positive growth in ad spend,” said Will Swayne, Dentsu’s global practice president of media. Continued on Page 11 CHENNAI/KOCHI