While India Q2 FY12 earning’s season is in full swing, crucial data on festive October automobile sales have trickled in with not-so-encouraging signs. The past week was also spent in worries over Greek economy in disarray; and to determine whether the leaders of the world’s 20 most powerful economies, in G20 summit, can arrive at plan in order to soothe global nerves.
Petrol prices Hiked by Rs.1.82 per litre
Even as the common people reel under the pressure of high double-digit food inflation and exorbitant cost of living, oil companies have yet again hiked petrol prices by Rs.1.82 per litre from midnight. While this is the fourth instance of petrol price hike in 2011, the Manmohan Singh government has administered a fuel hike for a whopping 13th time since June 2010.
Bharti Airtel Q2 FY12 Profit down by 38%
India’s largest telecom operator Bharti Airtel posted lower than expected Q2 net profit of Rs.1027 crore, down 38% from that of July-Sept quarter last year. Total sales for the company’s second quarter stood at Rs.17270 crore, up 13.38% from Rs.15231 crore during a year-ago period. Bharti Airtel continued to expand its footprint across Africa with a strong 23% growth rate in its revenues from African operations.
Furthermore, India’s top mobile phone carrier Bharti Airtel will launch its wireless broadband services in India in the fiscal ending March 2012.
TRAI proposes New M&A Guidelines
Major telecom operators had hiked their tariff rates by 20% in July 2011. Now, its time to fasten up the mergers and acquisition guidelines in the industry, to bolster the sector marred by over-crowded 12-13 service providers and ease intense price war prevailing between them.
The new proposal from the TRAI is a step in right direction that would allow a liberal norm of up to 35% market share as safe harbour for M&A landscape in the Indian telecom sector. Earlier, the M&A threshold limit for the resultant entity was capped at 30%. Further, the telecom regulator has also set a limit of 25% for spectrum holding for any merged entity in any service area.
Internet Policy Gaps: India proposes new UN body
The Indian government has proposed for creation of a new United Nations body for internet-related policies which would help in developing internet policies, oversee all internet standard bodies and policy organizations and plays an arbitrator in all the disputes related to internet.
The intent behind proposing this new multilateral mechanism is to disallow various governments from controlling the world of internet and pronouncing their own set of regulations on the same; while fostering the growth of internet universally in an open and democratic way to promote stable and constantly evolving internet to common people.
Telstra enters Indian Telecom market
In a joint venture with Microland, global telecom major Telstra International is all set to enter Indian consumer telecom landscape with three licenses to operate in international and national long-distance telecommunications and ISP services to Indian customers.
The company is expected to kick-off with its operations in the first quarter of 2012 from cities like Banguluru, Kolkata, Mumbai, Pune, Chennai, Delhi and Hyderabad.
Automobile sales in October 2011
The month of October has traditionally been the festive season for both two-wheeler and four-wheeler car makers. However, there was no shopping frenzy this time around with interest rates and car loan EMIs at their peak levels.
While Bajaj Auto’s motorcycle sales for October 2011 grew by 6% to 3.51 lakh units, its rival auto giant Hero MotoCorp chipped in with a tepid 1.32% jump in two-wheeler sales at 5.12 lakh units. The sales of car-to-truck manufacturer Tata Motors stood higher by 5% at 68009 vehicles in October. Tractor major M&M sold a total of 41506 units, up 20.32% from last year period.
Lastly, the strike-hit Maruti Suzuki’s October sales dipped by 53% to 55,595 units as compared to 11809 units for the same month during last year. The auto-maker lost production of over 40,000 units in the peak festive month of October.