#IndiGo removes fuel charge on tickets; #Burman family vs #Religare and more. @PragattiOberoi8
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00:00 The Burman family versus Religar Enterprises tussle intensifies.
00:06 Now, Burman family alleges allotment of 8% shares in the NBFC arm to Rashmi Saluja without
00:13 a shareholder nod.
00:18 Also on the show, NDTV profit takes you to the world's largest mobile robot factory,
00:23 Adverbs Bought Worse.
00:25 Thanks for tuning in.
00:36 You're watching the Reporter on NDTV Profit, a show where we bring you fresh updates on
00:41 market, national and international news.
00:44 I'm your host, Pragati Oberoi.
00:46 Now, before we move on to the show, let's have a look at how the markets fared during
00:51 the day.
00:52 I have my colleague, Harsh, joining us with the day's action.
00:54 Harsh, over to you.
00:57 Well, it's a fascinating day of trade reversal in the markets after two consecutive day of
01:03 declines and it was weekly expiry as well.
01:06 First weekly expiry of 2024, the Nifty 50 was up two thirds of a percent, the Nifty
01:12 Bank ecked out one plus percent of gains.
01:16 So across the board, it was green.
01:17 Quick check on the heat map as well.
01:20 You know, we looked at solid gains in specific pockets, Bajaj Finance, quarterly update,
01:26 Tata Consumer as well as NTPC both gaining, reaching life highs, ONGC up three percent
01:32 across the board that those were the ones in the green, 2.8 percent up on IndusInd as
01:37 well on the back of the numbers.
01:40 The quarterly update on Adani Ports also gained around two and a half odd percent on the back
01:44 of a positive note coming in from HSBC.
01:48 Among the laggards, you had the likes of the IT and the AutoPAC.
01:52 If you look at it, you have the likes of an LTI Mindtree, HCL Tech, Wipro among the bottom
01:56 20 percent.
01:57 We also had the likes of Hiromoto, Maruti, Bajaj Auto, M&M, all of which were in the
02:02 red.
02:03 Among others, of course, you had the likes of BPCL and Dr. Reddy's also, which are down
02:07 one and a half plus percent in trade today.
02:10 Quickly moving on to the advance decline ratio, strongly in favor of the advances, two is
02:15 to one, in fact, and those advances were largely led by the broader markets.
02:20 The Nifty Mid Cap 100 gained one and a half percent in trade.
02:25 What a run that one is having.
02:27 And the Nifty Small Cap also ekt out gains of one percent plus in trade today.
02:32 So nothing to complain about, whether we're looking at the benchmarks or the broader indices,
02:37 but the broader indices continue to outperform the benchmarks.
02:39 And that continues to be the theme even today, as has been in this year till date as of now,
02:47 just four days.
02:48 But, you know, very quickly moving on, let's have a look at the sectors which were in focus.
02:53 Nifty Realty, definitely the sector in focus today, seven percent nearly higher.
02:58 The highest gains it's made, single day gains it's made since the 7th of October 2021.
03:04 So two and a half years, the highest gains in single day gains that it's made.
03:09 But other than that, you had the likes of the Nifty Energy, Infra.
03:13 Those are familiar names which have been trading well in the green.
03:17 The top two, three gainers have been some of those.
03:20 And that continues to be the theme.
03:21 Nifty Auto marginally lower, but closing flat nonetheless.
03:26 So nothing to complain about.
03:28 It's been a green day today.
03:30 Well, that was the market check for you during the day.
03:33 Quite an action packed day indeed.
03:35 And Indigo has also been a newsmaker during the day alongside the markets.
03:40 It has announced a waiver on all fuel charges for the domestic and international flights.
03:45 And this has come on the back of a cut in the ATF prices.
03:49 My colleague Vinay joins in with more on this.
03:51 Vinay, what sort of impact are now we expecting on the airfares from now on?
03:57 Yeah, so as you said that Indigo has removed fuel charge on all routes because of fall
04:03 in ATF prices.
04:05 So it was introduced back in October after a run up in fuel prices for four straight
04:10 months.
04:11 But now that the prices have fallen in the last three months, so the amount that you
04:14 see that the ATF prices have fallen 4% in Jan, 6% in November and over 4% in December
04:21 as well.
04:22 So what this will do is that it will make airfares cheaper because Indigo flies six
04:27 out of every 10 travelers that travel in the domestic market.
04:31 So it has a monopoly over the market and this will see play out in the entire market as
04:37 well.
04:38 So fuel accounts for nearly 40% of an airline's operational costs.
04:42 So this is going to be a huge relief for the airline as well and as well for travelers
04:47 as well.
04:48 Indigo has also said that it will continue to adjust fares with the change in fuel prices
04:52 in the market conditions.
04:54 So the relief might not last long for the travelers so they can enjoy while it lasts.
04:58 Well, that was an update from Indigo on the airfares fronts.
05:02 Now let's move on to an update from the IPO space once again.
05:06 Now Mobiquix board has approved the plans for an IPO.
05:09 Now for this, the company is planning to raise about 880 crore rupees through the offer.
05:14 Meanwhile, Invesco has also raised Swiggy's valuation for the second time to 8.3 billion
05:21 dollars.
05:22 My colleague joins in with more.
05:23 Rish, over to you for this.
05:26 That's right, Pragati, two very important pieces of news coming from the startup ecosystem
05:31 today.
05:32 We have Mobiquix that has filed a resolution to go for an IPO.
05:36 This time it's a much smaller IPO than the first time that they applied for one.
05:41 The first time they applied was in 2021 when a lot of startups were going public.
05:46 You had Paytm, Zomato, Nika, the first wave of Indian startups going public.
05:51 And after Paytm had that debut, which was frankly quite a disaster for a lot of startups
06:00 that were going public at the time, Mobiquix decided to delay its IPO.
06:05 And now they're again going for one.
06:08 That one was a 1900 crore rupee IPO.
06:11 This one around 880 crore rupee IPO.
06:15 So very, very downsized.
06:17 The founders have maintained that this time they're going for the IPO.
06:21 Whenever they go for an IPO, it will be due to their balance sheet health.
06:26 So this time they have been profitable for about three straight quarters.
06:30 Though the profits have been slim, but they've been about a single crore digit that they're
06:36 posting.
06:37 But a much more sensibly priced IPO, I think we can expect after we've seen Ola Electric
06:43 and FirstCry also.
06:44 So a lot of new age and tech IPOs coming through.
06:48 On the Swiggy bit, yes, Invesco has for the second time in a row, hyped Swiggy's valuation.
06:55 It was earlier about 7.85 billion.
06:58 Now it's 8.3 billion.
07:00 And again, just for comparison, you have a listed peer in Zomato.
07:06 Zomato's valuation is about 11.3 billion as of today's closing.
07:12 So still quite a bridge there.
07:14 And Swiggy is also IPO bound.
07:16 So this sort of uptick also reflects the fact that Swiggy's core food delivery business
07:25 has also turned profitable as of May last year.
07:29 So we can expect more upticks coming in till the time that they file for their DRHP.
07:35 Those are indeed very valuable insights.
07:37 While you're at it, I request you to stay with us for a couple of more minutes, because
07:41 we're getting a sense that Myntra and Sugar Cosmetics have also posted their FY23 earnings.
07:46 So what exactly are you picking up on that front from now on?
07:50 That's correct.
07:51 Two very important beauty and personal care players have also posted their FY23 earnings.
07:57 I have Sugar's numbers right in front of me.
08:00 Revenue has risen about 2x to 420 crores.
08:05 And what is impressive is that it has come off the back of very controlled losses.
08:09 So they posted about a 76 crore loss in FY22 that has still stayed at about 75 crores for
08:16 FY23.
08:17 So this has been a very good year, considering that they spent a lot on advertising and promotions.
08:22 They bought on actors like Tamanna Bhatia to advertise for them.
08:27 So there was a big jump in the advertising and promotional costs, as well as the employee
08:34 benefit expenses.
08:35 They've done well to control costs on Myntra.
08:39 However, revenue has risen about 25% to around 4,375 crores.
08:47 But losses have also widened to about 782 crores from about 600 crores in FY23.
08:54 So a bit of a disappointment there from Myntra.
08:59 They are Walmart and Flipkart backed, so there is no concern on its ability to continue operations.
09:07 But they do still seem quite a way away from a path to profitability.
09:13 Right, Resh.
09:14 Thanks so much for those very interesting insights.
09:17 Now let's move on to the Mumbai Trans Harbour Link.
09:20 Now the country's largest sea bridge is all set to be inaugurated on the 12th of January,
09:25 with Prime Minister Narendra Modi also going to be present at the event.
09:29 In fresh updates, we now know that the cars will have to pay a toll of Rs. 250 on this
09:34 route.
09:35 My colleague Malika joins in with more on this.
09:37 Malika, take it over.
09:39 Well, your travel from Nariman Point to Navi Mumbai could change from January 12th.
09:44 The Prime Minister will inaugurate the Mumbai Trans Harbour Link, which connects South Mumbai
09:48 to Navasheva Port.
09:50 The Maharashtra government approved the toll for the 22 km over sea bridge at Rs. 250 one
09:56 way.
09:57 The bridge will reduce the distance between South Mumbai to Panvel or the Navi Mumbai
10:01 Airport to a large extent, which is currently about 50 km via Vashi and takes over two hours
10:07 to cover.
10:09 Now this travel time will substantially reduce via the new Mumbai Trans Harbour Link and
10:13 as approved by the Maharashtra government, cars will have to pay a toll of only Rs. 250
10:19 to commute on the country's largest sea bridge.
10:22 Initially, the Urban Development Department of the government had proposed a toll of Rs.
10:27 500 for a car.
10:28 However, that price now stands halved.
10:31 Now, how does this benefit you and I?
10:34 Let's compare.
10:35 The toll priced cars pay to travel from Mumbai to Navi Mumbai is Rs. 45, but that takes around
10:41 two hours to cover nearly 50 km.
10:45 But with this new Mumbai Trans Harbour Link, also called Atal Bihari Vajpayee Trans Harbour
10:49 Link, one will be able to cross over to Navasheva in just 20 to 25 minutes with a toll price
10:56 of Rs. 250.
10:58 And if we had to compare the cost per km with the Bandra-Worli Sea Link, the cost on Atal
11:03 Link will be around Rs. 11.4 per km against Rs. 21 per km on the Bandra-Worli Sea Link.
11:11 And now, the real question is, will you pay Rs. 250 one way?
11:15 Share your thoughts.
11:16 Right, Charu.
11:17 Thanks so much for that very interesting update and definitely we are looking forward to the
11:22 launch as well.
11:23 Let's bring you a very interesting update on the AI rights.
11:27 Now earlier, the UK top court ruled that AI machine cannot be considered an inventor under
11:33 the Patents Act of 1977.
11:37 But the question now we are trying to address is that how does India's judiciary approach
11:41 such issues concerning AI and even IP or intellectual property?
11:45 We have our colleague Charu Singh to tell us more on this.
11:49 Hi Pragati.
11:50 So, the development arises from United States Copyright Office as well as the UK Supreme
11:56 Court.
11:57 So, what happened in United States was that for a comic book, licensing was applied for
12:02 you know basically for copyrights and it was found that parts of the comic book, the graphics
12:07 in the comic book were generated through AI and that is why the copyright license was
12:11 not given to the party that applied for it.
12:14 Similarly, UK Supreme Court set a precedent where it said that if something is invented,
12:19 something is generated by an AI system, a human being cannot take credit for it, cannot
12:24 get the copyright for it and a copyright cannot be given to an AI entity because as per the
12:29 law in both these countries, only basically only a human being can ask for such rights.
12:34 Now, coming on to the Indian jurisprudence, we have to understand that there are several
12:38 laws at play here.
12:39 For example, the Copyright Act, the Patent Act, the Design Act, the Geographical Indication
12:43 Act and many more.
12:44 In all of these which are you know pre-technological era laws, they talked about how a human being
12:50 for an art created by them can apply for licensing, can get rights to these things, inventions
12:56 or art pieces but it has to be understood that AI came much after that and for the same
13:02 reasons we cannot blame the law either.
13:05 So that is why as per the expose that we spoke to some amendments or some new provisions
13:09 or some new laws are required to tackle the situation.
13:14 As of today, there is a lack of jurisprudence as well as precedence in case laws to basically
13:20 have a clear picture on this.
13:22 However, there are few ways in which it could play out either the person who made the AI
13:26 system or the person who prompted a response from the AI to make something creative could
13:30 be given the right to the thing that they are applying the license to or basically we
13:36 could see that if something has not even been prompted by a human being.
13:39 Thanks so much Aarudh, that's indeed very interesting and we'll keep coming back to
13:43 you with more on this.
13:44 Let's slip into a quick short break.
13:46 Stay tuned, we'll be right back.
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16:48 Welcome back, you're watching The Reporter on NDTV Prophet where we've
16:54 been bringing you the top news of the day. Now let's move on. There have been
16:57 fresh allegations made against the Religare Enterprises by the Burman
17:02 family. Now this is in regards to the allotted shares to Rashmi Saluja via
17:07 the ESOPs. My colleague joins in with more details on this. Sajid, what can you
17:12 tell us about this allotment and how has the board responded to this news
17:16 because we're getting a sense that there are updates on this. You know the
17:22 Burman versus the Board of Religare Enterprises battle is you know getting
17:26 more aggressive with the latest allegations coming from the Burman
17:30 family which alleged that nearly 2.15 crore ESOPs were allotted or granted to
17:36 Rashmi Saluja who is the Chairman and Managing Director of Religare Enterprises.
17:41 This was done through grant of ESOPs and in basically Religare Finvest.
17:48 The ESOPs on conversion would be equivalent to 8% equity in the NBFC arm.
17:54 This entire allegation has been put by the Burman family against the Board of
18:00 Religare Enterprises and the independent directors which has been
18:06 refuted by the board and the independent directors claiming that
18:09 these claims are without any evidence. In fact the board
18:15 had come out with a statement earlier which said that the permission was taken
18:21 from the shareholders of Religare Finvest. Also they had informed the
18:26 shareholders of Religare Enterprises on September 1 through BSE and the entire
18:31 approval of this ESOPs was done at the AGM which was held on September 26 of
18:37 last year and though the grants have been approved by the shareholders it
18:43 hasn't been brought in front of the NRC which is a nomination and
18:46 enumeration committee and so no fresh shares have been issued and there is no
18:51 violation of SEBI's takeover regulation. Now this fight has
18:55 been going on for a couple of months and it started off ever since the Burman
18:59 family mounted an open offer to get control of Religare Enterprises.
19:05 That was the update from my colleague and let's move on. It's naturally a new
19:09 year and as we enter 2024 we are bound to have more warehouses as well that
19:15 are getting automated but what it's like to operate a futuristic warehouse and
19:20 to figure out exactly that NDTV Prophet visited AdWords BotWorx which is also
19:26 touted as the world's largest robot manufacturing facility. Take a look at it.
19:32 We all hear of warehouses getting automated and companies increasingly
19:44 adopting solutions to make their supply chains faster and more efficient. To find
19:50 out how exactly these businesses are transforming warehouses to be more
19:54 futuristic NDTV Prophet visited what's touted to be the world's largest mobile
19:59 robot manufacturing facility AdWords BotWorx in Greater Noida.
20:06 AdWords inaugurated the 15 acre facility in early 2023. The plant can manufacture 1 lakh
20:12 robots per year and at present produces around 14 types of robots. All the robots
20:18 provide warehouse automation solutions for businesses. We spoke to AdWords
20:22 co-founder Satish Shukla as he explained the different types of robots there are.
20:27 One would be static robots. Typically you have articulated robots or SCARA
20:31 robots. Articulated robots resemble like a human arm and are used in automotive
20:35 industry extensively for welding applications are also used for pick and
20:39 place applications. Then you have a second category called mobile robots
20:42 which are basically robots that can move and move your material from one place to
20:46 another where we have significant presence. The third category typically
20:49 could be a collaborative robot. Where can one find these the use cases for such
20:53 mobile robots? So it could be warehouses where you have to store material, you
20:57 have to perform picking operations, sorting operations. The
21:00 application could also be in factories where you have to move your raw material,
21:04 intermediate goods or finished goods from different assembly zones or from
21:08 different manufacturing areas or to storage areas.
21:12 NDTV Profit then took a demo of two mobile robots on the Botverse shop floor.
21:18 We saw their rail guided vehicle which is currently deployed at Indian Oil
21:23 facilities and Zippy, their rapid moving mobile robots. Wherever you have pallet
21:29 storage operations, you store it in automated storage and retrieval systems
21:33 which allow you to store pallets on height and whenever these pallets are
21:37 retrieved from there and need to go to a place like a docking area or need to go
21:41 to a manufacturing area, you can have rail guided vehicles. So Zippy here
21:47 basically moves on QR codes based on the ground and the fleet communicates itself,
21:52 communicates with each other with the help of a fleet management system.
21:57 While AdWords revenue growth has been impressive with a 450 crore top line for
22:02 Fi23, India's robot manufacturing prowess is still behind countries such
22:08 as China, Japan and the US. Hardware still is largely replicable and legacy players
22:15 such as ABB and Universal Robots carry an edge. Then how does AdWords
22:21 distinguish itself? Robots hardware is just an element of a
22:26 robotic solution. Entire solution has to be designed. How your material will get
22:30 stored in the warehouse, how it will get retrieved. You need to find the right mix
22:33 of robotic application and enterprise software. We definitely get an edge
22:38 whenever we go outside India. People assumed okay these guys know their
22:41 software. Going ahead AdWords which is backed by marquee investors such as Gale
22:47 and Reliance Industries plans to foray aggressively into international markets
22:52 and sees overseas revenue becoming larger than its domestic client driven
22:57 revenue. Going forward in next two years we expect almost 60% of our revenue to
23:02 come from outside India and 40% of our revenue to come from India. The next
23:06 three months are typically very hectic months for us. That's the most busiest
23:11 period. In all probabilities we should reach somewhere around 500 crore. That's
23:15 the kind of top-line growth we are targeting. This was NDTV Profits visit
23:19 to AdWords, what were started to be the world's largest mobile robot
23:23 manufacturing facility. It is a series B startup founded right here in India with
23:29 a product mix that is increasingly going international with aspirations of a 500
23:34 crore top line in FY24. Stay tuned to NDTV Profits for more special