BQuick On April 12: Top 10 Stories In Under 10 Minutes

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This is a roundup of the day’s top stories in brief.

1. Inflation Rises, IIP Stagnates

India’s industrial output stagnated in the month of February, adding to a host of indicators now pointing to weakening economic momentum.

• The Index of Industrial Production rose a mere 0.1 percent in February, compared with growth of 1.7 percent in January and 6.9 percent in the same month a year ago.
• A Bloomberg poll of 33 economists had forecast IIP growth at 2 percent.
• Over the April to February period, industrial output growth stands at 4 percent compared to 4.3 percent last year.

Industrial production growth in February was at its lowest since June 2017.

Retail inflation rose for the second straight month, led by an increase in food prices.

• Consumer Price Index inflation stood at 2.86 percent in March compared to 2.57 percent in February.
• A Bloomberg poll of 37 economists had estimated 2.8 percent.
• CPI inflation had declined for four straight months till January before it started rising.

Three key components are driving the rise in food prices.

2. Q4 Results: TCS, Infosys

Tata Consultancy Services Ltd. continued to see steady growth in business even as profit remained flat and margin narrowed in the March quarter.

• Net profit rose 0.3 percent sequentially to Rs 8,126 crore.
• Margin fell 40 basis points to 25.1 percent.
• Higher wages from localisation and rupee appreciation have weighed on the margin.
• Yet, deal momentum remained strong.

Should investors be worried about the pressure on margin? Read more to find out.

Infosys Ltd. announced a steady revenue growth guidance for the year ending March 2020 compared to the previous year.

• It expects a 7.5-9.5 percent revenue growth for 2019-20 in constant currency terms. The guidance is within the analysts’ expected range.
• Profit rose 2.2 percent quarter-on-quarter to Rs 4,078 crore.
• Margin fell to 21.4 percent from 22.6 percent.

The company has also cut its margin guidance. Here’s what that means.

5. Boost For Adani Power

The power regulator today allowed Adani Power Ltd.’s Mundra thermal power unit to pass on higher cost of imported coal that had made the project unviable.

• The Mundra unit will be allowed to increase the variable component of tariffs to pass through the cost of fuel up to $110 per metric tonne, according to the order by the Central Electricity Regulatory Commission.
• This increase will be offset by reduction in fixed cost by 20 paise/kilowatt for billionaire Gautam Adani-owned group company, ultimately to be borne by the lenders to the project.
• These were part of the suggestions by a panel appointed by Gujarat. The state government agreed to accept all the proposals, the power regulator said.

Here are the key highlights of CERC’s order.

8. Status Quo In Essar Steel Sale

The Supreme Court has ordered the various parties involved to maintain status quo on the sale of Essar Steel Ltd., halting steel giant ArcelorMittal from making a payment to purchase the insolvent company.

• The Ahmedabad bench of the National Company Law Tribunal had approved ArcelorMittal's resolution plan, which entails payment of Rs 42,000 crore to financial creditors, on March 9.
• The tribunal’s order was appealed by the committee of creditors before NCLAT, which in its March 20 order, directed the resolution professional and resolution applicant to implement the NCLT-approved plan and kept the issue of allocation between financial and operational creditors open.

The apex court directed the NCLAT to expeditiously decide on appeals in the Essar Steel case.

9. Supreme Court Wants Electoral Bond Details Disclosed

The Supreme Court asked all political parties to submit details of funds received through electoral bonds, including the identity of donors, to the Election Commission in a sealed cover by the end of next month even as it refused to stay the scheme.

• The details of the bonds received till May 15 will have to be given by May 30, the apex court said while hearing a petition challenging the scheme.
• It also directed the Finance Ministry to remove five extra days in April and May for purchasing electoral bonds.
• The court, however, didn’t grant a stay sought by the petitioner—Association for Democratic Reforms.

There may not be any immediate impact of the order on political funding.

10. Jack Ma Lauds Overtime Work Culture

To survive at Alibaba Group Holding Ltd. you need to work 12 hours a day, six days a week. That’s what billionaire Jack Ma demands of his staff at China’s biggest e-commerce platform.

• Ma told an internal meeting that Alibaba doesn’t need people who look forward to a typical eight-hour office lifestyle, according to a post on Alibaba’s official Weibo account.
• Instead, he endorsed the industry’s notorious 996 work culture -- that is, 9 a.m. to 9 p.m., six days a week.

“To be able to work 996 is a huge bliss,” China’s richest man said.