COMPANIES, P5 INTERNATIONAL, P3 INTERNATIONAL, P3 REPRESENTATION TO MINISTRIES STOCK SURGES NEARLY 16% BRIEFLY RALLIES BEFORE FALL TCS, Tejas, local firms seek check on Chinese telecom parts imports Alphabet announces first-ever dividend; beats profit estimate Yen hits fresh 34-year low after Bank of Japan holds interest rates NEW DELHI, SATURDAY, APRIL 27, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 48, 28 PAGES, `12.00 (PATNA & RAIPUR `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: 73,730.19 ▼ 609.25 NIFTY: 22,419.95 ▼ 150.40 NIKKEI 225: 37,934.76 ▲ 306.28 HANG SENG: 17,651.15 ▲ 366.61 `/$: 83.35 ▼ 0.03 `/€: 89.49 ▼ 0.10 BRENT: $89.45 ▲ $0.44 GOLD: `72,301 ▲ `507 IN THE NEWS PLEAS FOR EVM VERIFICATION WITH VVPAT REJECTED THE SUPREME COURT Friday rejected prayers for 100% verification of the EVM votes with slips printed by the VVPAT machines or, in the alternate, a return to the system of ballot papers, reports Ananthakrishnan G. ■ PAGE 7 INDIA’S FY25 GDP GROWTH MAY BE 6.6%: DELOITTE INDIA'S GDP will likely grow by 6.6% in the current financial year, aided by consumption expenditure, exports rebound and capital flows, Deloitte India said on Friday. ■ PAGE 2 IRDAI’S ALL-IN-ONE INSURANCE COVER AT `1,500 LIKELY IRDAI HAS PROPOSED to price Bima Vistaar, its ambitious all-inone affordable mass product, at `1,500 per policy, reports George Mathew. ■ PAGE 2 FE S P E C I A L IT paradox: Long on deals, Startups head to short on revenue outcome CRORES DUE FROM OVER 100 FIRMS court as angel tax issues linger Nitpicking by taxman on valuation tops list Headcount shrinks first time in decades LEGAL RECOURSE the pastwhere itwas held that the taxman has no right to changevaluation ■ In some cases, SEVEN MONTHS AFTER the tax department “relaxed” the valuation methods for non-resident capital infusion in startups to address their concerns over having to pay “angel tax”, the tax heat on them has only risen.According to industry sources and tax experts, many startups have already moved court and more are planning to challenge the tax demands, and way the taxman seeks to “alter”or differwith the valuation methods followed by the firms. The startups are armed with several tribunal and court rulings of the past where it was held that the taxman has no right to change the valuation arrived at by the taxpayer or by the third party valuer (merchant banker),as far as these follow the options notified, the sources added. In September last year, the tax department notified five valuation methods for capital infused in Indian unlisted firms (including startups) by non-resident investors. Over 100 are facing tax demands the valuation method is challenged by the taxman ■ The CBDT notified five valuation methods for non-resident capital infusion in Indian unlisted firms ■ Angel tax is Can this electric sedan Seal the deal for BYD in India? The Seal is a global car whose strengths far outweigh its shortcomings. ■ MOTOBAHN, P9 ment,”analysts Manish Adukia, Harshita Wadher andAnisha Narayan wrote. The firm forecasts Blinkit’s gross order value will rise at a compounded annual growth rate (CAGR) of 53% between FY24-27, driving Zomato’s overall adjusted revenue CAGR of 32%, while the gross order value in its food delivery business is expected to have a subdued CAGR of 20% due to limited near-term visibility. ■ Page 15 FLIGHT DELAYED ■ The order means the airline is at the threat of losing all its 54RP does not obtain a aircraft if the stay of this order ■ The order was passed on 14 petitions filed by various companies ■ The lessors have been locked in a legal tussle to repossess their planes after Go First was granted bankruptcy protection in May 2023 ■ The government had amended its insolvency law in October to exclude leased aircraft from assets that can be frozen ing,two bids were submitted for Go First - from a consortium led by SpiceJet chief Ajay Singh and Nishant Pitti's Busy Bee Airways, and another one from Sharjah-based Sky One. Ajay Singh and Busy Bee Airways have jointly submitted a bid of `1,600 crore for the airline, bankers said.The lenders of the airline are yet to take a final call on them. Reacting to the judgment, Pitti saidonXthatthecompanywillreview the details of the order and“consider anynecessaryadjustmentstotheproposed offer for Go Air”. “Our commitment remains to proceed in a mannerthat respects the legal process and aligns with our IT ■ Revenue share from manufacturing vertical rises by 0.5-1.5% for all 5 firms, baring Wipro ■ HCLTech bucks trend, adds net 1,537 employees in FY24 macroeconomicenvironmentwhichcontinue to impact financialperformance,theysaid. Infosys, for example, said it achieved a record high in dealvalue,securing contracts worth $17.6 billion throughout theyear,but still slashed its revenue growth expectation for FY25 between a mere 1-3% from a previous 4-7%. Continued on Page 15 RESULTS CORNER ● ROUND TWO SCORE: 63% Maruti Suzuki profit jumps 48% in Q4 to `3,878 crore MARUTI SUZUKI ON Friday reported a 48% year-on-year jump in standalone net profit to `3,878 crore for the March quarter, marginally ahead of analysts estimate of `3,839 crore, reports Swaraj Baggonkar. Maruti’s board of directors recommended the highest-ever dividend of `125 per share for shareholders. ■ PAGE 4 HCLTech profit falls 8.4%; FY25 revenue guidance at 3-5% Continued on Page 15 Delhi court allows a perfect landing for Go First lessors IN A MAJOR setback for debt-ridden Go FirstAirlines,the Delhi high court onFridayallowed lessorswithaircraft stranded at Go First to take back their planes.The court ordered the de-registration of the planes leased out to the company, and restrained it from flying them. The Directorate General of Civil Aviation (DGCA) has been asked to initiate the de-registration process within five working days, and the Resolution Professional (RP) of Go First has been restrained from replacing or taking out any accessories, spare parts, documents or other material from the planes. The RP has also been ordered to provide up-to-date information and documentation in relation to the aircraft to the lessors. The court refused the request of the RP to keep the operation of the orderin abeyance foraweek to enable themto file an appeal before the Division Bench of the court. This means the airline is at the threat of losing all its54aircraftiftheRPdoesnotobtain a stay of this order. The lessors have been locked in a legal tussle to repossess their planes afterGoFirstwasgrantedbankruptcy protection in May 2023, with the recovery of more than 50 Airbus planes blocked undera lawin place at the time. The government had amended its insolvency law in October to exclude leased aircraft from assets that can be frozen, aligning the world's third largest aviation market with global standards. While the litigation was pend- in FY24 from TCS, Infy, Wipro, TechM & LTIMindtree running into crores under the angel tax provisions, said the sources. There are also cases where the firms' freedom to chose among the valuation methods are challenged by the taxman. DGCA ASKED TO START DE-REGISTRATION WITHIN FIVE DAYS FE BUREAU New Delhi, April 26 73,600 ■ Infosys, TCS, HCL Tech, LTIMindtree revenue from Europe rises by 0.5-2% imposed when an unlisted firm issues shares to an investor at a price higher than its fair market value (FMV) Blinkit most valued in Zomato basket ZOMATO’S QUICK commercearmBlinkit hassurpasseditsfooddeliverybusinessin terms of implied value for the first time,accordingtoGoldmanSachs.At`119 per share or about $13 billion in equity value, Blinkit accounts for a higher proportionofZomato’ssum-of-the-partsvaluation than the food delivery business at `98 per share. “We believe the market is still underappreciating Zomato’s growth and profit potential in the online grocery seg- THE TOP SIX information technology (IT) services companies in India,led byTata Consultancy Services, Infosys, Wipro and HCLTech, secured a record number of deals in FY24 even as they scaled back on hiring, marking a significant shift from the postpandemic boom. Thesimilarityinthefourthquarterperformance of these companies doesn’t end here. All of them saw a noticeable discrepancy betweentheincreaseddealwinsandtheactual revenueoutcomes.Thisparadoxislargelydue to the ongoing weaknesses in the global ■ TCS, Infosys,TechM revenue from NorthAmerica falls by 1-2% ■ Total headcount decline of PADMINI DHRUVARAJ Bengaluru, April 26 ■ The startups are armedwith rulings of PRIYANSH VERMA New Delhi, April 26 GLOBAL HANGOVER ■ While the litigation was pending, two bids were submitted for Go First strategic objectives,” the statement said. Sky One chairman Jaideep Mirchandani, meanwhile, said: “As far as our bid for Go First is concerned, the de-registration does not alter our plansfortheIndianaviationindustry. If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors.” The order was passed on 14 petitions filed by various companies, including PembrokeAviation,Accipiter Investments Aircraft 2,EOS Aviation and SMBC Aviation, who had leased their aircraft to Go First, which is undergoing insolvency at present. OVER 63% POLLING was reported in the second phase of Lok Sabha elections covering 88 seats across 13 states amid few complaints of EVM glitches and bogusvoting in some states. Voters in some villages of Uttar Pradesh's Mathura, Rajasthan's Banswara and Maharashtra's Parbhani were boycotting the polls overvariousissuesbutwerelaterpersuadedby authorities to cast theirfranchise,reports PTI. Polling for the second stage of the seven-phase electionsstartedat7amandendedat6pm.Severalstatesexperiencedintenseheatconditions. The Election Commission (EC) said polling remainedlargelypeaceful.Thetentativefigure at8pmofvoterturnoutwas63.50%.Itislikely togoupwardswhenreportsfromallpollingstations are obtained, the EC said, adding voters reaching polling stations till the end of polling hourare allowed to cast theirvote. Among those who voted in the round were finance minister Nirmala Sitharaman, CongressleaderShashiTharoorandRajyaSabhaMP SudhaMurty(picturedabove). ■ VERDICT 2024: PAGE 7 RBI NORMS & GUIDELINES RBI extends on-tap licensing for small finance banks ELIGIBLE SMALL FINANCE banks (SFBs) cannowapplywithRBI tobecomeuniversal banks in accordance with the on-tap licesning norms, reports Piyush Shukla. SFBs are allowed to apply for a universal bank license after successful completion of five years of operations, but subject to fulfiling minimumpaid-upvotingequitycapital,net worth requirement as applicable to universal banks. ■ Page 6 Draft norms for web aggregation of loan products issued THE DRAFT GUIDELINES for a regulatory frameworkforaggregationofloanproducts bylendingserviceproviders(LSP)havebeen issued on Friday.Typically,LSPs are fintechs that banks and non-banking finance companies (NBFC) engage to perform functions like customer acquisition, underwriting, and loan recovery. RBI had announced the regulatoryframework in the monetarypolicy statement in December. ■ Page 6 FPI investment limit in G-sec unchanged at 6% for FY25 THE LIMITS FOR FPI investment in government securities, state development loans and corporate bonds will remain unchanged at 6%, 2% and 15%, respectively, of outstanding stocks of securities for the current fiscal, reports PTI. As of now, all investments by eligible investors in the 'specified securities' will be reckoned under the fully accessible route (FAR), the RBI said in a notification. ■ Page 6 New Delhi IT MAJOR HCL Technologies has posted an 8.4% fall in consolidated net profit at `3,986 crore, much below Street estimate of `4,123 crore, during the fourth quarter ended March 31, reports Rajesh Kurup. For FY25, the firm expects revenue growth (on a constant currency basis) of about 3-5%, MD & CEO C Vijayakumar said in a post earnings call. ■ PAGE 4