The Year That Was – Corporate & Industry…

The year 2018 was a better year for India Inc than 2017, yet a turbulent one. Several high profile cases of frauds, funds misappropriation, undue favor and so on came to light exposing the underbelly of corporate world. Some of these are unearthing of Nirav Modi scam, IL&FS default and undergoing investigations, conflict of interest … Continue reading The Year That Was – Corporate & Industry…

Corporate Analysis – Indian Oil Corporation

Indian Oil Corporation (IOC), the largest company by sales in the country, recorded revenue of almost Rs 5.2 lakh crore for FY18 (consolidated). Its revenue is more than three times the revenue of entire Cement industry!  Yet, profits remain subdued due to under recoveries and price restrictions but more importantly, absence of forward integration. The … Continue reading Corporate Analysis – Indian Oil Corporation

Farm Loan Waiver – Bad Politics or Good Economics..??

Farm loan waiver has again hit the headlines with recently elected chief ministers approving the scheme. The mainstream media, economists from all strata and also the RBI through its various reports seem to be severely critical of such moves which spoil the credit culture and lead to ‘crowding out’. So, are the farm loan waivers … Continue reading Farm Loan Waiver – Bad Politics or Good Economics..??

Index of Industrial Production – October ’18 Performance..

Index of Industrial Production (IIP) has recorded an increase of 8.1% for the month of Oct’18 as per the data released by MOSPI yesterday. While monthly rate may show substantial fluctuation, average growth rate for first seven months of this financial year also shows a substantial improvement. Average growth rate, which was only 5.2% till sept’18, climbs to 5.6% after including the result for Oct’18. Other that, average rate over first seven months is better than growth rate recorded in all the years since FY13. While IIP growth is important in general, it is more important since industries account for maximum number of employment and therefore, its performance is critical in generation of more employment opportunities. Here is a look at its various components and a longer term trend analysis. Continue reading Index of Industrial Production – October ’18 Performance..

Jet Airways – Can it avoid a Crash Landing..??!

Amidst the reversal for the ruling party in state elections and the surprise resignation of RBI governor, it is difficult to focus on anything else! Yet, here is an attempt to analyze the crisis being faced by Jet Airways precipitated by loss of over Rs 1,000 crore in each of two quarters of this financial year. The crisis is a cause of concern not just for the company but also all followers of aviation sector. The sector, despite being a high profile one, hasn’t been able to establish itself financially and accounts for a number of failed businesses overlast decade or so. Here is a look at its performance and comparison with another airline which is profitable.