Editor's Desk

Why Sun TV Bought Hyderabad Sun Risers IPL Team ?

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Sun TV’s management is confident of breaking even on its purchase of the Hyderabad Sun Risers, a cricket team that plays in the IPL. While the last team to be sold before this (Pune Warriors) was bought for Rs1,700m/year, Sun TV is committed to pay only Rs850m/year for the first five years.

Management pointed out that Sun TV has committed to paying Rs850m/year for the first five years to own the Hyderabad IPL team. From the sixth year onwards, the company would need to pay a 20% share of revenue (the rights to this team are perpetual). While team costs are pegged at a maximum of US$11m,

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How Much Gold India Imported in last Decade ?

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The rise in physical savings is reflected in higher gold imports as the lure of higher returns from yellow Metal rises. Adding fuel to the fire is the opportunity to conceal Black Money by BUYING Physical Gold is hurting the Indian Economy. Indian Gold Metal Imports rose significantly to US$56bn in FY12 vs US$4bn in FY01. The following Chart Shows the Last 12 Years Gold imports of India which consumes almost 27% of World’s Gold Produce.

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Will IT Services See Offshoring to ReShoring ?

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There was big debate recently on the phenomenon of reshoring, i.e. reversing the offshoring / outsourcing decisions of the past many years in IT / BPO Services. The fact is the reshoring debate is more political than economic. While increasing labour
costs in offshore locations have taken away a reasonable portion of cost advantages, they are still significant.

India’s market share in the global IT services market is still less than 10%. Indian companies’ penetration in Europe is especially low and this market has been growing faster for them. While Indian companies are moving up the value chain to offset the commoditization of traditional service lines, projects are

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Mobile Competition Eases – Tariffs Rise

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Competitive intensity continues to ease and lower gross adds with new verification norms should help rationalize cost. This is a a more positive outlook for the industry and the advantage of incumbents. Competition has started to ease and any resultant uptick in rev/min would benefit Airtel via operating leverage. Our analysis of the tariffs as disclosed on the company Websites suggests that base tariffs have remained largely unchanged; however, promotional outgoing tariffs have been hiked by an
average of ~6%, implying ~3% higher ARPM’s.

Incumbents (Airtel, Idea and Vodafone) have the the network advantage in urban and rural areas. This should help them 1) Manage a lucrative post-paid base in

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India’s Current Account Deficit – From bad to worse

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Preliminary data from the Reserve Bank of India (RBI) released late Monday showed that the Q2 FY2013 (calendar Q3 2012) current account deficit widened from USD 16.4bn to a record USD 22.3bn.As already foreshadowed by the monthly customs trade data, the bulk of the deterioration in the current account position in Q2 stemmed from goods trade. On a balance of payments basis, the goods trade deficit jumped back up to USD 48.3bn from USD 42.3bn, hence more than accounting for the widening in the current account deficit.

Drilling down, the data show that a sharper fall in exports (-12.2% y/y) relative to imports (-4.8% y/y) was the key driver of the bigger deficit.

Capital Inflows Net capital inflows, led by the encouraging buoyancy

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Scam Scarred Congress Government Unable to Move on Highway Construction – 50% Projects Paralysed

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We’d like to present some facts on the Scam Scarred Congress Government which continues to be greedy despite Policy Paralysis in every Ministry. We’ll have a look on one of the most important infrastructure – National Highways performance and how policy paralysis has affected the same.

The already awarded projects failing to make progress (80% of projects awarded during FY2012 await financial closure, 50% past contractual deadline) on the back of stringent conditions put forth by banks which are facing tremendous pressure due to defaults from these Road Contractors who have won projects by Virtue of Corruption in an Oligarchic Setup. They are also faced

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