News in Numbers: Idea posted Rs385.6 crore loss in Q3, thanks to Reliance Jio
In other news, ONGC Videsh Ltd is said to have overpaid $200 million in acquiring Videocon group’s 10% stake for $2.5 billion in a large natural gasfield in Mozambique, Africa, in 2013
What is it? Number of people killed in a gun-battle in Kashmir on Sunday.
Why is it important? The violence in the state, rekindled in 2016, continues with four terrorists killed in the fight. With two Indian soldiers dead, J&K security forces’ death toll increased. Avalanches had claimed lives earlier this year, which succeeds a year with the highest death count of 82 among the forces since 2008.
Tell me more: A civilian was also killed and three soldiers injured in the incident. In civilian deaths, three road-workers had been killed by militants last month.
Rs 385.6 crore
What is it? The first-ever loss reported by India’s third-largest telecom player, Idea Cellular in the third quarter financial year 2017 (Q3 FY17).
Why is it important? While it was expected Idea would report a loss, the amount was more than the forecast. A quarter of free voice and data promotional offers by Reliance Jio has dented financial performance of all the three (including Airtel and Vodafone) major players, with the smallest, Idea, being hit the hardest.
Tell me more: Idea says the sector can hope to recover only when Jio starts charging for its pan-India mobile services. Idea’s income fell from a profit of Rs 764.2 crore in Q3 FY16 and Rs 90 crore in Q2 FY17. The operator waited for the official confirmation of a merger with Vodafone India before sharing its financial results this quarter.
What is it? The amount Oil and Natural Gas Corporation’s (ONGC) overseas arm, ONGC Videsh Ltd (OVL), is said to have overpaid in acquiring Videocon Group’s 10% stake for $2.5 billion, in a large natural gasfield in Africa’s Mozambique in 2013.
Why is it important? If proved, this could mean a big lapse in judgement for the public sector company and India’s largest oil and gas explorer by revenue. What was allegedly on the market for $2.3 billion, was acquired for $2.475 billion by it, and since has faced a writedown in asset value as crude energy prices fell. The payment to Videocon is now being investigated by the oil ministry.
Tell me more: OVL later bought stake in the same area from another energy player, the US Anadarko Corp, for $2.64 billion in 2014 that the latter calculated was a gain of over 62% of the purchase price.
What is it? The distance travelled by a North Korean intermediate-range ballistic missile before it landed in the Sea of Japan on Sunday.
Why is it important? By testing the missile, North Korea has violated United Nation’s restrictions, even as many observers commented that it was to provoke Donald Trump, the newly elected president of United States, a long time ally of Japan. Japan’s prime minister Shinzo Abe, who is on a visit to US, and was with Trump, called it “absolutely intolerable.”
Tell me more: Just a day before the launch, Trump and Abe had urged North Korea not to test ballistic missiles and to drop its nuclear programme. It comes about two weeks ahead of the largest ever joint military exercise between the US and South Korea.
What is it? The number of housing units sold in the quarter ended December 2016 in top nine cities in India, according to a report by PropTiger.
Why is it important? The sales are down 20% from the previous quarter, one of the expected impacts of demonetisation, which took away 96% of currency in circulation. The monthly average sales during November and December when demonetisation was in full flow, dropped by 40% and 49% respectively, PropTiger said in a report.
Tell me more: Gurgaon, Noida and Ahmedabad saw 30-40% decline in sales, while Mumbai, Hyderabad, Bengaluru and Chennai saw 20% drop in sales.
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