BQuick On Dec. 1: Top 10 Stories In Under 10 Minutes
Here is a roundup of the day’s top stories in brief.
1. GST Collections Above Rs 1 Lakh Crore For Second Straight Month
The government’s goods and services tax collection remained above the Rs 1-lakh-crore-mark for the second consecutive month as consumption picked up amid the festive season after India lifted lockdown restrictions.
GST revenue for October, collected in November, stood at Rs 1.05 lakh crore, according to a statement from the Ministry of Finance.
That was largely unchanged compared to the previous month and 1.4% higher than October 2019.
Get a complete breakup of GST collections here.
2. Conflict And Controversy In DHFL’s Rescue
Creditors to Dewan Housing Finance Corp. will conclude voting on a proposal to seek fresh bids for insolvent housing financier on Wednesday.
If the proposal gets the support of at least 66% of creditors by value, fresh bids will be invited by Dec. 13, three people with direct knowledge of the developments told BloombergQuint.
This would be the fourth round of bids submitted by the four bidders that have shown interest.
These bidders include Piramal Enterprises, Adani Group, SC Lowy and Oaktree Capital Management.
While the final outcome is still some distance away, DHFL’s insolvency process has been marred by controversy. Read more here.
3. Hero Moto, Tata Motors: Double-Digit Sales Growth
India’s automakers witnessed a rise in factory-gate sales buoyed by festive demand.
Maruti Suzuki India Ltd. reported a 1.7% year-on-year growth in total sales. However, its domestic car sales dropped 2.4% to 1.35 lakh units.
Mahindra & Mahindra Ltd. reported strong tractor sales led by demand in rural markets.
Tata Motors Ltd. reported a 26% rise in domestic sales as passenger vehicle deliveries more than doubled.
Hero MotoCorp Ltd. continued its run of good sales numbers selling 5.91 lakh units in November.
Find out how retail sales of Indian automakers fared in November.
4. Sensex Jumps 500 Points
Indian equity markets ended the first session of this truncated week on a strong note. Benchmark indices ended at a record high with gains witnessed across the board.
The S&P BSE Sensex ended 1.15% or 506 points higher at 44,655
The NSE Nifty 50 index ended 1% or 140 points higher at 13,099.
37 out of the 50 index components ended with gains, led by GAIL (India) Ltd., which rose over 8% - its biggest single-day gain since March.
Follow the day’s trading action here.
8. Behind CRED’s Big Spending Spree
It’s the brand that seems to be everywhere these days. Splattered across IPL screens. Trending on social media timelines with star-spangled advertisements. Offering customers a chance to bring home a Mercedes if they use their service.
Kunal Shah-promoted CRED has upped its visibility this year as it tries to lure a larger share of India’s 31 million credit card users.
In September, it became the official partner of the Indian Premier League— one of the world’s most expensive sports properties.
It also brought in the biggest of stars from Madhuri Dixit to Anil Kapoor and Govinda to Bappi Lahri to front the ‘not everyone gets it’ campaign.
What has this advertising and marketing blitz achieved for now two-year-old company? Read the BQ Blue exclusive story.
9. Oyo’s Path To Recovery
Ritesh Agarwal, founder and chief executive officer of Oyo Hotels, told employees the Indian startup is making progress in recovering from the coronavirus fallout and has about $1 billion to fund operations until an initial public offering.
The 27-year-old entrepreneur made the comments in a fireside chat with Oyo board member Troy Alstead, after the once high-flying company endured months of layoffs and losses as Covid-19 hammered its business.
Agarwal said the company’s focus is on getting revenue per available room to 60% to 80% of pre-pandemic levels across all markets.
India, China, Japan and Southeast Asia are making progress in reaching that range, he added.
Agarwal told employees he has not felt any pressure from outside shareholders as he has cut back during the pandemic.
10. Wendy's To Rival McDonalds, Burger King With Cloud Kitchens In India
Wendy’s Co. has struck a deal with India’s Rebel Foods to open about 250 so-called cloud kitchens across the country, one of the most ambitious efforts yet to serve customers through delivery rather than the traditional fast-food stores as the industry adapts to the coronavirus pandemic.
The U.S. company is experimenting with a new format as the Covid-19 outbreak makes many consumers unwilling or unable to visit traditional stores.
Wendy’s push in India appears to be the largest cloud-kitchen outsourcing deal announced yet, based on the number of locations.
Wendy's, known for its beef burgers, faces particular challenges in India.