TMSEp185: Economic revival, Ronojoy Dutta, IndiGo & SpiceJet, windfall tax

The central government mopped up Rs 1.41 trillion as Goods and Services Tax collection in the month of May -- a dip of 16% from the record-high numbers of April, but way above the FY 22 average of Rs 1.23 trillion. And hours before the government made the GST numbers public on Wednesday, the auto companies had also come out with their monthly dispatch figures, reporting improved sales in May. So do these numbers suggest that the Indian economy is finally reviving after the shock delivered by pandemic? 

An increase in the revenue of airlines also signals economic recovery. India’s largest airline, Indigo, has reported a 29% jump in its revenue in the March quarter. But it was overshadowed by high fuel prices, pushing the low cost carrier into losses. In an interview with Business Standard’s Aneesh Phadnis and Arindam Majumder, the airline’s CEO Ronojoy Dutta tells about the upcoming competition in the air due to the entry of Akasa and Jet Airways. He also says that the airline is going through a phase of transition, and will soon become a choice on long international routes. 

The Indian aviation sector is facing cost pressure due to rising crude oil prices, weaker rupee, and sticky inflation. And with Akasa Air and Jet Airways taking to the skies in the coming months, the heated competition doesn’t bode well for listed players like IndiGo and SpiceJet. We capture what the intensifying competition amid soaring fuel costs mean for incumbent players, and what should investors do?

The crude oil is on the boil again, after the European Union’s decision to ban its import from Russia in a phased manner. And as the burden on the government exchequer and people’s pocket is increasing, some experts are suggesting a temporary tax on oil and gas companies which have profited from the price rise. It is called a one-time ‘windfall tax’. This episode of the podcast tells more about it.

Watch video