India jumps 14 places to rank 63 in World Bank's Ease of Doing Business Index. SC asks telecom operators to pay INR93,000cr. Maruti Suzuki Q2 net profit falls 39%. Google claims to have achieve quantum supremacy.
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Pay Up: The Supreme Court today upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the Department of Telecommunications (DoT).
AGR is the usage and licensing fee that telecom operators are charged by the DoT. The government and the telecom sector were locked in a fight over the particulars considered to calculate the amount payable.
The ruling would mean that the telecom companies will have to pay up as much as INR92,642cr to the government, more than half of which is owed by Airtel and Vodafone. Moneycontrol
Downhill: India’s largest car-maker, Maruti Suzuki India posted a 39.4% decline in Q2 net profit at INR1,358.6cr vs INR2,240.4cr last year on the back of lower sales and decline in operating margin. The manufacturer sold a total of 338,317 vehicles in Q2, down 30.2% Y-o-Y.
Maruti Suzuki's net sales fell by 25.2% to INR16,120.40cr in Q2FY20 vs INR21,551.90cr in Q2FY19. Total revenue declined to INR17,905.30cr against INR22,959.80cr in the previous year. Business Today
We Want Answers!: US investor rights law firm Rosen Law Firm has filed a class suit against Indian IT giant Infosys on behalf of Infosys shareholders. The lawsuit seeks to recover damages for shareholders following the slump in share price as accusations of financial fraud against the top management emerged.
The class action lawsuit filed by Rosen Law Firm has demanded a jury trial and accused Infosys of making false and misleading statements, besides failing to make appropriate disclosures, according to a statement by the firm. ET ITeS
High Jump: India has climbed 14 rungs in the World Bank’s Ease of Doing Business 2020 survey to rank 63, among 190 countries, making it one of the world’s top 10 most improved countries for the third consecutive time.
Last year, India had jumped 23 places to reach the 77th position. Livemint
The improved ranking following reforms implemented by India in the areas of starting a business, dealing with construction permits, paying taxes and resolving insolvency. Given the size of India’s economy, these reform efforts are particularly commendable, the report said. BBG Quint
Click here to read the full report.
Elon on Cloud 9: Tesla’s positive Q3 numbers sent its shares soaring by more than 20% after hours, putting them at their highest price since February. Besides reporting $6.3bn in revenue, the company also revealed adjusted earnings per share of $1.86, reporting a surprise profit. CNBC
Déjà Vu: While Tesla’s revelations send its stock and investors into spasms of joy, analysts noted how Wednesday’s events were a virtual replay of what happened this time last year when it generated a GAAP profit and free cash flow for the first time in eight quarters to the tune of $881mn. This replay matters for two reasons. First, investors added more than $9bn to Tesla’s value on the back of a net profit of $143mn and free cash flow of $371mn. Second, revenue this time around was lower, both sequentially and Y-o-Y. BBG
FYI: During the earnings call, CEO Elon Musk signaled that more time and resources could be allotted to Tesla’s solar and storage products when he said that its energy business will eventually be the same size or larger than its automobile sector. TechCrunch
We Have Done It!: Tech giant Google, in a research paper (reportedly published on the NASA website before being pulled) titled “Quantum supremacy using a programmable superconducting processor” has said that it has achieved quantum supremacy, a major milestone towards the development of quantum computers.
Google’s quantum computer was reportedly able to solve a calculation — proving the randomness of numbers produced by a random number generator — in 3 minutes and 20 seconds that would take the world’s fastest traditional supercomputer, Summit, around 10,000 years. The Verge
IBM’s Response to This?: IBM however said that Google’s mistakenly thinking that the RAM storage requirements in a traditional computer would be massive – too massive to run quickly. In fact, if you take into account the fact that classical computers can access huge amounts of both RAM and hard disk space, that 10,000 years drops dramatically, it said.
Believe It or Not: That’s actually a “worst-case estimate,” and it could probably be done faster, it added. Moreover, using phrases like “quantum supremacy” is potentially misleading said the software company. Forbes
War on the Hill: In his first Congressional testimony since April 2018, Mark Zuckerberg addressed concerns on Libra, free speech on Facebook, market dominance, and efforts to combat misinformation ahead of the 2020 presidential election.
Testifying before the House Financial Services Committee, Zuckerberg said he would not green-light Libra – his company’s proposed digital currency – unless he had explicit approval from all US financial regulators. It was Facebook’s strongest statement made to assuage regulatory concerns yet.
But concerns remain. The Facebook CEO faced an unimpressed and suspicious committee, united across party lines in their criticism of Facebook. Members brought up the recent exodus of high-profile corporate backers of Libra, asked how the cryptocurrency would fare under existing banking legislation, and argued that Facebook should be broken up. CBS News
Great Call of China: One argument Zuckerberg employed to try to persuade Committee members to rethink their hostility towards Libra revolved around China’s rising tech prowess. Claiming that Libra would project America’s financial leadership globally, he added that delaying the project brings with it the risk of losing out to China.
"China is moving quickly to launch a similar idea in the coming months," Zuckerberg said. "We can't sit here and assume that because America is today the leader that it will always get to be the leader if we don't innovate." Nikkei Asian Review
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