1. Apple Becomes First Trillion Dollar Company
Apple became the first $1 trillion publicly listed US company on 2 August, crowning a decade-long rise fuelled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.
The tech company’s stock jumped 2.8% to as high as $207.05, bringing its gain to about 9% since 31 July when it reported June-quarter results above expectations and said it bought back $20 billion of its own shares.
The Silicon Valley stalwart’s stock has surged more than 50,000% since its 1980 initial public offering, dwarfing the S&P 500’s approximately 2,000% increase during the same almost four decades. During that time, Apple evolved from selling Mac personal computers to becoming an architect of the mobile revolution with a cult-like following.
(Source: Reuters)
2. HDFC Increases Lending Rates by 20 Basis Points
Housing Development Corp Ltd (HDFC), India’s largest mortgage lender, on Thursday, 2 August, raised lending rates by 20 basis points following policy rate hike by the Reserve Bank of India. HDFC’s benchmark prime lending rate now stands revised at 16.65%, effective 1 August.
The housing finance company previously raised its lending rate on 4 June. HDFC has raised its borrowing costs by a total of 50 basis points this year. A basis point is one-hundredth of a percentage point.
For HDFC’s borrowers, home loans up to Rs 30 lakh will now be available at 8.75% (8.70% for women) and those above Rs 30 lakh will be available at 8.85% (8.5% for women). While other lenders are yet to announce a lending rate hike, some banks have already started increasing deposit rates.
(Source: Livemint)
3. Jet Airways to Cut up to 25% of Employees' Salaries
Jet Airways has informed its employees that they will have to take an up to 25% cut in their salaries as cost of operations for airlines is increasing on the back of rising crude and a falling rupee. Salary cuts are in the range of 5% (for those earning Rs 12 lakh annually) to 25% (for those earning Rs 1 crore and above) starting this month.
“There’s no timeline as to how long this reduced salary will continue,” said an airline source, who did not want to be identified.
The source said that salary cut for pilots in the airline will be in the range of about 17%. Jet Airways has an annual salary bill of about Rs 3,000 crore, and the move is expected to reduce it by about Rs 500 crore.
(Source: The Economic Times)
4. SBI, Jio Form Partnership for Digital Platform
State Bank of India (SBI), an equity partner in Reliance Jio’s payments bank venture, has extended the tie-up to digital platforms, ATMs and point of sale (PoS) terminals. Under the partnership, SBI’s mobile banking app Yono will be enabled through the MyJio platform for subscribers, while MyJio, which is Jio’s over the-top mobile application, will bring in the financial services capabilities of SBI and Jio Payments Bank.
SBI deputy MD and chief information officer Mrutyunjay Mahapatra said that in terms of the tie-up, SBI customers will get preferred pricing on Jio’s offerings. Also, the loyalty rewards offered by SBI will be encashable in the Reliance Jio ecosystem.
In a joint statement, SBI chairman Rajnish Kumar said, “All areas of cooperation are mutually beneficial, enhancing the digital footprint for SBI customers. Jio is committed to using its network combined with retail ecosystem to accelerate digital adoption.”
(Source: The Times of India)
5. ONGC Profit Rises 58% in Q1
State-run Oil and Natural Gas Corporation, ONGC has posted a 58 percent increase in net profit during the first quarter of the financial year 2018-19 to Rs 61.44 billion, compared to Rs 38.85 billion on the back of higher net realisation owing to rise in prices.
Meanwhile, the company’s gross revenue for the period under review was seen 43 percent up at Rs 272.13 billion, as against Rs 190.73 billion. The company’s net realisation on crude oil for the April to June quarter of the current financial year was seen at $71.48 a barrel, compared to $48.42 a barrel during the same time in 2017-18.
The net realisation for crude oil from joint ventures also zoomed 48 percent from $45.92 a barrel to $67.97 a barrel during the first quarter of 2018-19.
(Source: Business Standard)
6. Govt to Defer ‘Retaliatory Tariffs’ on US Products
India is set to defer its plan for retaliation against the American move to impose an extra 25 percent tariff on steel and 10 percent on aluminium supplies from this country by 45 days from 4 August, upon a request by the US, sources said. New Delhi had proposed to slap retaliatory tariffs worth $235 million on 29 American goods, ranging from almonds to apples.
The move would substantially de-escalate a tariff war and indicates that New Delhi is willing to engage Washington further for a meaningful outcome to the ongoing bilateral trade negotiations. It also indicates that India is hopeful of getting a waiver from the extra tariff levied by the Trump administration on metal supplies from select countries, including India.
(Source: The Indian Express)
7. Godrej Properties’ Net Profit Falls 65% in Q1
Godrej Properties Ltd (GPL) on Thursday, 2 August said its June quarter net profit fell 65.41% from a year ago to Rs 34.30 crore on higher expenses, fewer new bookings and a change in accounting standards. Total income during the period grew 18.9% to Rs 1,066.73 crore from a year ago.
ICICI Securities said in a note that in the first quarter of this fiscal, earnings may be skewed as builders begin switch to new accounting IND-AS 115 system that requires them to switch to project completion method from percentage completion method. Under the new system, revenue will be booked only after a project is completed and the customer has taken possession of house/flat.
During the reporting quarter, its booking value stood at Rs 820 crore, down by 44.36% at Rs 1,474 crore. The company saw a booking of 1.17 million sq. ft of residential space as against 1.8 million sq. ft in first quarter of last fiscal.
(Source: Livemint)
8. Swiggy Acquires Scootsy in All-Cash Deal Valued at Rs 50 crore
On Thursday, 1 August, food-delivery firm Swiggy said it has acquired Mumbai-based on-demand delivery firm Scootsy. Under the all-cash deal valued at about Rs 50 crore (under $8 million) by several industry executives Scootsy’s brand name is being retained in Mumbai.
For Swiggy, which is looking to enter the hyperlocal delivery market, the deal adds value through Scootsy’s premium customer base. It will also add heft to Swiggy’s network of 40,000 restaurants. Scootsy delivers close to 2,000 orders each day aided by some 700 delivery agents across its food and nonfood delivery operations in south Mumbai, Lower Parel and some parts of Bandra. Swiggy delivers about 5,00,000 orders per day and has a fleet size of 55,000 all over the country.
Besides, Scootsy’s average order value of over Rs 750 as compared with the Rs 350 that Swiggy clocks on its platform, means the deal offers Swiggy a hefty play into both the mid level and the premium-level market and will give it an edge over rival Zomato when it comes to capturing market share outside their respective home grounds.
(Source: The Economic Times)
9. Indiabulls Q1 Net Profit Rises 29%
Indiabulls Housing Finance (IHFL) reported a 29 percent year-on-year increase in standalone net profit at Rs 968 crore in the first quarter ended 30 June 2018, against Rs 750 crore in the year-ago quarter.
The board of directors of the company declared an interim dividend of Rs 10 per equity share (of face value Rs 2 per share) for the financial year 2018-19. In the reporting quarter, revenue from operations was up 26 percent y-o-y at Rs 3,601 crore.
However, other income (income received/ recognised by the company from its cash equivalents and current investments in the form of dividend income on units of mutual funds, dividend from subsidiaries, etc) was down 28 percent y-o-y at Rs 188 crore.
The housing finance company’s consolidated net profit in the reporting quarter was up 30 percent at Rs 1,055 crore (Rs 810 crore in the year-ago quarter).
(Source: The Hindu Business Line)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)