Category: Business

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Business

Snapchat registers 52% growth in revenues

Snapchat saw its daily active user base jump to touch 249 million, from 238 million in last quarter, as the company registered a 52 per cent increase in revenue at $679 million in its third quarter.

The stock of its parent company Snap rose 17.1 per cent after bumper quarter results. Operating cash flow improved by $21 million to $55 million in Q3 compared to the prior year.

“Our focus on delivering value for our community and advertising partners is yielding positive results during this challenging time. We’re excited about the growth of our business in Q3 as we continue to make long-term investments in our future,” CEO Evan Spiegel said in a statement late on Tuesday.

“The adoption of augmented reality (AR) is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us,” he added.

The average number of Snaps created every day grew 25 per cent year-over-year.

Total daily time spent by Snapchatters watching Shows increased by over 50 per cent year-over-year in its third quarter.

“The daily average number of Snapchatters in India watching Discover content increased by nearly 50 per cent sequentially in Q3 2020,” the company announced.

As of the end of Q3, over 1.5 million Lenses have been created through Lens Studio.

“Our ‘Anime Style’ Lens powered by real time machine learning was engaged with 3 billion times in its first week,” the company informed.

Snap said it helped over one million Snapchatters with voter registration for the 2020 US election through its ‘Register to Vote’ Mini, developed in partnership with Democracy Works.

Also Read: IBM revenues decline for the 3rd quarter in a row

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Read More: Semi Urban, Tier 2 Markets Driving Growth: Honor India Head

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Business

India’s hiring activity down by 30%

The hiring activity in India saw a 30 per cent decrease in the June quarter compared to the same period last year as the country saw a rise in contractual jobs, a new report said on Tuesday.

However, the June quarter witnessed a 13 per cent increase in the number of work-from-home jobs as compared to Q2 2019.

Furthermore, the demand for contract workforce increased by 11 per cent in Q2 from the same period last year, while the demand for full-time employees decreased by 13.8 per cent, according to data from SCIKEY talent commerce platform, a talent marketplace.

IT and IT Services sectors indicated recovery in contractual jobs in the June quarter.

“Cloud businesses and digital transformation is the need of the hour and one of the top most requirements for all industries to adapt to the new normal,” said Karunjit Kumar Dhir, Co-Founder SCIKEY.

“This will definitely have a positive impact on the hiring sentiments among techies who will now look for jobs in India especially due to the strain in H-1B visas”.

The pandemic has given rise to a huge number of contract workers for a plug and play model allowing companies to reduce their hiring costs.

In the packaging, IT, telecom and ecommerce industry, some of the top job roles companies are looking for are developer, analyst, management profiles, tester, engineer, senior and consultants.

An earlier study from the company found that there was an uptick in hiring senior executives in India compared to freshers and mid-level executives in the pandemic period (April to July) as the enterprises looked to invest in talent at the very top levels.

Indian companies hired 72 per cent of top executives as compared to 28 per cent of freshers and mid-level executives in the reported period.

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Read More: Demand in China boosts Indian steel industry

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Business

IBM revenues decline for the 3rd quarter in a row

IBM CEO Arvind Krishna.

Reporting sales declines for three straight quarters, IBM has posted $17.6 billion in revenue in the third quarter of this year, compared to $18 billion for the same period last year.

The company’s shares fell 2.7 per cent in extended trading on Monday after third quarter results were announced.

However, its Cloud and cognitive software revenue rose seven per cent in the quarter.

For the third quarter, total cloud revenue reached $6 billion, an increase of 19 per cent.

“The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform,” IBM CEO Arvind Krishna said in a statement.

IBM acquired enterprise software company Red Hat last year for $34 billion.

Red Hat revenue for the quarter increased 17 per cent, said IBM which earlier this month announced that it will separate its managed infrastructure services unit of its global technology services division into a new public company.

“Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM’s open hybrid cloud platform and AI capabilities,” the IBM CEO said.

“This will accelerate our growth strategy and better position IBM to seize the $1 trillion hybrid cloud opportunity,” he added.

The company’s third quarter results showed that global business services which include consulting, application management and global process services posted revenues of $4 billion, down five per cent driven by declines in application management and consulting.

Its global technology services revenues hit $6.5 billion, down four per cent, the company said.

“In the third quarter we continued to deliver strong gross profit margin expansion, generated solid free cash flow and maintained a sound capital structure with ample liquidity,” said James Kavanaugh, IBM Senior Vice President and Chief Financial Officer.

“We have the necessary financial flexibility to increase our investments in hybrid cloud and AI technology innovation and skills, while remaining committed to our long-standing dividend policy.”

Also Read: ‘Accenture Cloud First’ gets $3 Billion Investment

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Business India News

L&T bids the lowest for Bullet train’s Vapi Vadodara Stretch

Larsen and Toubro has emerged as the lowest bidder for constructing the 237 km length of the Bullet Train Project under the Mumbai-Ahmedabad high-speed rail corridor.

The financial bids for the design and construction of 237 km length of viaduct for 508 km of Mumbai-Ahmedabad high-speed rail corridor were opened on Monday and Larsen and Toubro emerged as the lowest bidder, said a statement from the Indian Railways.

A total of three bidders involving seven major infrastructural companies had participated in the competitive bidding. The other bidders were – Afcons Infrastructure Limited, IRCON International Limited, JMC Projects India Ltd, Consortium and NCC Limited, Tata Project Ltd, J. Kumar Infra Projects Ltd, and HSR Consortium.

The National High Speed Rail Corporation (NHSRCL) had invited bids for the project which is financed by Japan International Cooperation Agency (JICA) on March 15, 2019. The technical bids for this tender were opened on September 23, 2020 and in less than one month, the financial bids have also been opened after rigorous evaluation of the technical bids.

This tender covers about 47 per cent of the total alignment of 508 km, between Vapi (Zaroli Village on Maharashtra-Gujarat Border) and Vadodara in the state of Gujarat and is the largest package under the project. This includes four stations namely Vapi, Billimora, Surat and Bharuch, and Surat Depot.

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Business Tech Lite

Rs 187 bn Required To Rollout 5G in Mumbai, Delhi: Report

The total capital expenditure required for 5G rollout is estimated to be Rs 187 billion (Rs 18,700 crore) for Delhi and Mumbai, as per a telecom report by Motilal Oswal Financial Services.

The report based on the TRAI’s latest reserve price, the capex requirement for obtaining 100MHz mid band spectrum in Mumbai would be Rs 84 billion, which could increase if the bidding price is higher than the base price.

“Assuming 9k sites would be required for coverage with cost at INR 2 million per site, the total capex requirement for the sites would be INR 18b, taking the total capex to around INR 100b,” the report said.

“Similarly, capex requirement for 5G rollout in Delhi would be INR 87b – assuming 100MHz mid band spectrum at base price (INR 69b).”

In terms of mid or low band spectrum, the overall capex requirement for pan-India coverage would stand at Rs 1.3 to Rs 2.3 trillion.

“The Indian telecom industry is seeing capex peak out (particularly for Bharti and RJio) and increased free cash flows (FCF). However, risks have started emerging due to the increased capex toward 5G technology upgrade and the upcoming spectrum renewal,” it said.

As per the report, investments in three key large components for a 5G network – ‘Spectrum, Sites and Fiber’ on mid/low band spectrum with pan-India coverage – would stand at “INR 2.3t/INR 1.3t, which should reduce to INR 1.3t/INR 788b for coverage of only Metros and ‘A’ circles. With reduced coverage and INR 1.5m cost/site, this could reduce to INR 1.6t (mid-band) for pan-India coverage”.

“Even assuming rollout starting from FY23E, a staggered deployment over the next 4-5 years (in line with 4G investment trend) could insulate the impact to a large extent,” the report added.

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Business Finance

Paytm set to enter credit card business

Leading digital financial services platform Paytm on Monday said it will partner with various card issuers to introduce co-branded credit cards and is aiming to issue 20 lakh cards in the next 12-18 months.

The move is aimed at transforming the credit market by enabling “new to credit” users to join the digital economy, the company said.

“In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. At Paytm, our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals,” Bhavesh Gupta, CEO – Paytm Lending, said in a statement.

“These cards are designed to help them lead a healthier financial life through managing and analysing spends to make well-informed decisions. This can transform the credit market by bringing ‘new to credit’ users into the formal economy.”

Given the limited access to banking, stringent documentation and long processing times, India’s credit card penetration stands at only three per cent compared 320 per cent in markets such as the US.

Also Read: Paytm launches own app store

With its digital application process, alternate (spends based) underwriting, and minimal documentation, Paytm said it aims to democratise the credit card access for masses and plans to capture at least 10 per cent of this largely untapped market.

Paytm said it is designing an innovative digital experience on its app allowing users to manage their overall spends and have full control over the card usage.

The digital payments company said its credit card will provide insurance protection against fraudulent transactions to protect users’ money.

The company plans to issue the cards based on both traditional credit score and user’s purchase patterns on Paytm.

The company last week announced the same-day settlement facility for all kinds of fund transfers on its payment gateway that will help businesses that depend upon immediate availability of funds to pay down-stream partners.

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Business Motoring

M&M’s new Thar clocks 15K bookings

Thar SUV (Photo: @Mahindra_Thar /Twitter)

Automobile major Mahindra & Mahindra has reported that bookings for ‘All-New Thar’ SUV has now crossed 15,000 bookings, since its launch on October 2, 2020.

“Today 57 per cent of all buyers of the All-New Thar are first time car buyers and a significantly large share of all bookings are for the automatic variants,” the company said in a statement on Monday.

The all-new Thar will be available in two trims, namely “AX & LX”, with prices starting at Rs 9.80 lakh for AX series and Rs 12.49 lakh for LX series.

It is powered by two all-new engines “the 2.0L mStallion TGDi” petrol engine, and “the 2.2L mHawk” Diesel engine.

“These engines are offered with a choice of 6-speed manual transmission or 6-speed torque converter automatic transmission, with an authentic 4×4 manual shift transfer case with a low ratio,” the company had said on Oct 2nd.

The deliveries of the SUV will commence from November 1, 2020.

Also Read: Mahindra launches all new Thar

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Business

HDFC Bank reports 18.4% Rise In Profits

Lending major HDFC Bank on Saturday reported a 18.4 per cent increase in standalone net profit for the quarter ended September 30 of FY21 on year-on-year (YoY) basis.

The bank’s net profit for the second quarter of FY21 rose to Rs 7,513.1 crore on a YoY basis.

“While the previous quarter largely bore the brunt of the COVID-19 pandemic, some of the softness continued into the current quarter, leading to lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees,” the bank said in a statement.

“As a result, fees or other incomes were lower by approximately Rs 800 crore. However, the loan and card momentum has improved over the previous quarter, thereby reducing the gap to less than half,” it added.

Besides, the bank’s net interest income (interest earned less interest expended) for the quarter ended September 30 grew by 16.7 per cent to Rs 15,776.4 crore from Rs 13,515.0 crore for the corresponding period of the previous year.

“The bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 per cent, well above the regulatory requirement,” the statement said.

As per the statement, the bank continues to hold provisions as on September 30, 2020 against the potential impact of COVID-19 based on the “information available at this point in time and the same are in excess of the RBI prescribed norms”.

The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 6,304 crore as on September 30, 2020.

“Total provisions (comprising specific, floating, contingent and general provisions) were 195 per cent of the reported gross NPAs or 154 per cent of proforma gross NPAs as on September 30, 2020,” the statement said.

In terms of the Q2FY21 consolidated financial results, the bank reported net profit of Rs 7,703 crore, up 16 per cent over the quarter ended September 30, 2019.

Besides, consolidated advances grew by 14.9 per cent from Rs 9,47,440 crore as on September 30, 2019 to Rs 1,088,948 crore as on September 30, 2020.

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Business USA

Apple expected to grow 15% riding on 5G wave

Apple CEO Tim Cook

Apple is expected to witness 15 per cent iPhone growth next fiscal year and the primary wave of Apple 5G telephones has placed the ball in carriers and builders court, research-driven US venture capital firm Loup Ventures has forecast.

“While we believe it will take carriers years to build a compelling 5G infrastructure, Apple is ready today with a lineup of phones that should enjoy a three-year upgrade cycle, compared to a typical one-year duration,” wrote Gene Munster and David Stokman.

“Additionally, the company continues to advance augmented reality. We see the combination of AR and a 5G iPhone as the basis for why Apple is the best way to invest in 5G”.

According to a report in DigiTimes, Apple iPhone 12 series shipments are expected to reach as many as 80 million units by the end of the year owing to more affordable pricing strategy.

Shipments of the new iPhone lineup, including the iPhone 12, iPhone 12 mini, iPhone 12 Pro and iPhone 12 Pro Max, will at least top 70 million units by the end 2020, with the possibility of hitting 80 million barring a further escalation of the US-China trade conflicts, it reported.

According to Munster and Stokman from Loup Ventures, “We imagine the variety of iPhones which are three years or older has elevated by 90 million items over the previous year, which supplies a tailwind for iPhone demand within the coming year”.

“We stay snug with our 15 per cent iPhone unit development estimates for FY21, which might be a rise from 1 per cent in FY20,” the duo predicted.

Apple this week launched four new iPhone 12 models with 5G capability.

Foxconn remains Apple’s main iPhone assembler, and has secured the bulk of orders for the new iPhone 12 series through the first quarter of 2021.

Foxconn is also the sole supplier of the 6.7-inch iPhone 12 Pro Max and is estimated to be handling over 70 per cent of the orders for the 6.1-inch iPhone 12 and iPhone 12 Pro.

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Also Read: WeChat ban could cost Apple $28 Bn: Report

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Business Economy

‘Not the time to think of fiscal deficit limits’

PHD Chamber of Commerce and Industry President Sanjay Aggarwal. (twitter@Sanjayaggrwl)

The newly appointed President of the PHD Chamber of Commerce and Industry, Sanjay Aggarwal has called for the Indian government to step in and spend more on infrastructure projects. He also said that this is not the time to think of limits set by the FRBM Act.

Describing the Indian economy as “resilient”, President of the premier industry body said that the damage caused by the coronavirus pandemic and the eventual nationwide lockdown was huge.

He said that there is massive requirement of public expenditure, that too from the Centre, as states are not in a good shape in terms of their finances.

Aggarwal was of the view that the government’s policies in terms of lockdown and unlock were very much required.

He observed that the 23.9 per cent contraction in the Indian economy in the April-June quarter was a huge loss, but improved indicators in September, including GST collections, auto sales and export numbers gave an optimistic outlook.

Citing the increase in digital payments and automobile sales along with reports of decrease in job losses by September-end, Aggarwal told IANS that there is resilience in the Indian economy.

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“The point is that the resilience is there, but the damage has been huge. The gap that has been caused, the hole that has been dug, is going to need a lot of filling,” Aggarwal said.

Appreciating the National Infrastructure Pipeline (NIP) announced last year by the government, he said that now is the time for investments to be made through the pipeline.

The industry body chief said that it is not the time now to spend keeping in mind the limits under the FRBM Act.

“This (NIP) is something that now needs to be taken up in all seriousness and the expenditure has to be frontloaded rather than backloaded,” Aggarwal said, observing that the Centre should on an urgent basis make investments, as private investments are unlikely at this juncture and states also are not in a good shape financially.

Aggarwal noted that there might be an impact on fiscal deficit but this is not the time to think of limits set by the Fiscal Responsibility and Budget Management Act.

“There may be an impact on the deficit, but if you look at the world economy, people have gone up to 20 per cent of the economy for the Covid relief measures. Our budgetary support to the Covid relief measures is not more than 1.5 per cent,” he said.

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