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Morning Scan: All the big stories to get you started for the day

A round-up of the biggest articles from newspapers

October 15, 2021 / 08:37 AM IST

Tata Power plans to raise $500 million for renewables unit

Tata Power is in consultations with several large pension and sovereign asset managers to raise at least $500 million ahead of an IPO by its renewable energy unit, The Economic Times reported.

Why it’s important: Talks are in the formal stage with the Canada Pension Plan Invest Board and Government of Singapore Investment Corp.

Major funds from the US and sovereign funds from the Middle East are also looking at the possible investments in Tata Power Renewables.

 

TCS, Infosys put in place business continuity plans amid coal supply worry

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IT services companies are gearing up to face possible power outages due to the coal shortage at various places The Economic Times reported.

Why it’s important: Some of the IT companies have already asked their staff to ensure power backup to avoid disruptions.
The move is after overseas clients raised alarm after low coal stocks at thermal power stations made international headlines.

TCS and Infosys have sent emails to senior executives and are preparing business continuity plans keeping in mind the ongoing shortage.

 

India sells more SUVs than hatches plus sedans together

India is no longer a small car market, and the country is selling more SUVs than other passenger vehicles, The Times of India reported.

Why it’s important: According to the latest numbers, more than half the cars sold in September, as well as the July-September quarter, were SUVs.
This is more volume than the cumulative sales of hatchbacks and sedans.
The growing fondness is mainly because SUVs are available across price points and brands.
Sales of SUVs were 87,720 units in September.

The total hatchbacks and sedans sales together were 64,235 units.

 

Govt warns power companies on energy woes

The power ministry has warned Adani Power Ltd, Tata Power Co. Ltd and Essar Energy of legal consequences if they fail to ramp up production, Mint reported.

Why it’s important: The three of the country’s large imported coal-based power producers were asked to help ease pressure on power plants running on locally sourced coal.
“Not stocking fuel stocks or not giving availability on any pretext is inexcusable,” it was warned.
“Such conduct on the part of the seller should be immediately responded to by the procurer sternly by using all possible contractual and other available legal interventions at the level of state government,” according to the minutes of a 7 October meeting called by Power Secretary Alok Kumar with power producers.

The meeting was called after some power plants failed to declare their availability for generating electricity.

 

High attrition rates hit IT sector

The IT services industry is facing one of its toughest challenges in many years, with high attrition levels, Business Standard reported.

Why it’s important: The high attrition rates are threatening to impact demand.
The sector is witnessing a robust uptick after the onset of Covid-19.
The industry’s usual attrition rates were in the range of 10 to 20 percent.
Now, it’s gone up to new highs of 20-30 percent levels.
The attrition rate at TCS jumped to 11.9 percent in Q2.
Infosys and Wipro the numbers touching new highs of 20.1 percent and 20.5 percent, respectively.
HCL Technologies, the attrition rate was 15.7 percent.

Cognizant touched the attrition rate of 31 percent.

 

Credible fiscal consolidation can help India get better ratings: Gita Gopinath

International Monetary Fund Chief Economist Gita Gopinath in an interview with Business Standard said the high-frequency indicators for the third quarter of 2021 indicate momentum in economic recovery in India.

What Gita Gopinath says: High-frequency indicators for Q3 continued to gain strength, suggesting a further recovery in economic activity.
The IMF's annual forecast, which remains unchanged, reflects quarterly growth dynamics.
India has made commendable progress on vaccination.
A faster near-term rebound in demand could help improve the medium-term outlook.
Looking ahead, steadfast implementation of the government’s structural reforms announced can support productivity and medium-term growth potential.
A credible and clearly communicated medium-term fiscal consolidation strategy that outlines a gradual removal of exceptional policy support and revenue-enhancing measures can give policymakers greater means to respond to spending needs and support fiscal sustainability, and also improve the rating outlook.

Employment in large parts of the world remains below its pre-pandemic levels.

 

Our order book has been impressive at $360 million: Mindtree CEO

Mindtree Managing Director and Chief Executive Officer Debashis Chatterjee in an interview with Business Standard said this is an excellent first half of the financial year, and lays a very strong foundation for industry-leading growth in FY22.

What he says: This growth has been broad-based across industries, service lines, and geographies.
Our order book has been impressive at $360 million, up 19 percent YoY.
The overall talent scenario has been challenging.
Will hire a significant number in FY22.
The pipeline is quite robust. There is every reason to believe that by the time we close this financial year, our order book is going to be healthier than what it was in 2020.
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