LIC posts 17% drop in net profit in Q4FY22

Top of the Morning

In this episode, find out why small online sellers may have to register for GST, also find out about PayMate’s plans to raise Rs 1500 crore via IPO

Business Term of the Day: Opportunity cost
India’s largest insurer Life Insurance Corporation (LIC) of India on Monday reported a consolidated net profit of ₹2,409.39 crore for the quarter ended March 2022, down 17.41 per cent from ₹2,917.33 crore recorded in the corresponding period of the previous year. The board of LIC proposed a dividend of ₹1.50 per share for FY22, subject to shareholders’ approval at its upcoming annual general meeting. Net premium income in the fourth quarter rose to ₹1.44 trillion from ₹1.22 trillion a year earlier   Small online sellers may soon be exempted from having to register for services tax (GST), a government official aware of the discussions said. This marks a structural shift in India’s five-year-old indirect tax regime. The central and state governments believe such a move would vastly expand the potential reach of small enterprises through e-commerce. Currently, physical sellers need GST registration only if they have annual sales of more than ₹40 lakh, while all online sellers compulsorily need GST registration irrespective of turnover. The proposal, if approved, will bring online and offline sellers on par as far as GST registration is concerned.   Fuel retailers’ associations across the country have decided not to purchase petrol and diesel from oil marketing companies on Tuesday, saying they want higher dealer commissions. The associations, representing around 70,000 petrol pumps across 24 states, say commissions have remained unchanged despite the rise in fuel prices.   Business-to-business payments and services provider PayMate India has filed its draft prospectus with capital markets regulator, the Securities and Exchange Board of India, to raise ₹1,500 crore via an initial public offering (IPO). The IPO comprises a fresh issue of shares aggregating to ₹1,125 crore and an offer for sale (OFS) of ₹375 crore.     Moving on to markets Indian benchmark indices opened gap-down amid weak global cues, steep rise in crude oil prices. The BSE Sensex fell 400 points to 55,525, while the NSE Nifty 50 shed 100 points to 16,560   Indices on Monday closed higher for the third straight session tracking positive global trends. Stocks in Asia fell on Tuesday and Treasuries sold off across the curve as investors remain cautious about whether central banks can raise interest rates to rein in inflation without derailing growth. Oil gained after the European Union backed a push to ban some Russian oil. Shares wavered in Hong Kong, Shanghai, Japan, South Korea, and Australia.   Business Term of the day Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen, they can be easily overlooked. Understanding the potential missed opportunities when a business or individual chooses one investment over another allows for better decision making.