Monday, 20 January 2014

Asian Paints reports marginal fall in Q3 consolidated net profit

Asian Paints has reported results for third quarter ended December 31, 2013.

The company has registered a fall of 1.46% in its net profit at Rs 307.47 crore for Q3FY13 as compared to Rs 312.03 crore in the corresponding quarter previous year. However, the total income of the company has also increased by 12.07% to Rs 2877.72 crore for the quarter under review as compared to Rs 2567.66 crore in the same period last year.

On the consolidated basis, the company has reported 1.75% fall in its net profit at Rs 329.35 crore for the quarter ended December 31, 2013 as compared to Rs 335.23 crore for the same quarter in the previous year. However, the total income of the company has increased by 13.03% at Rs 3481.99 crore for quarter under review as compared to Rs 3080.40 crore for the quarter ended December 31, 2012.

Nifty re-conquers 6300 mark

The Indian equity market started off the week with smart gains as the NSE Nifty managed to once again close above the 6300 mark. Sentiment got a boost after heavyweights like Reliance Industries, HDFC Bank and Wipro delivered better than expected quarterly results. While ITC was inline with market expectations. 

Today’s upswing was so strong that barring the oil and gas index all the other BSE sectoral indices ended with smart gains. The IT, telecom and the FMCG stocks led from the front. The banking, power and realty stocks were among the other major gainers.

Even the mid-cap and the small-cap stocks participated in todays rally.

HDFC Bank’s third quarter profit rose 25%. Net profit increased to Rs. 2,326 crore, or Rs.9.7 per share, in the three months ended 31 December from Rs. 1,859 crore, or Rs.7.8, in the year-earlier period. 

Commenting on the same, Amar Ambani, Head of Research at IIFL said, “HDFC Bank delivered a better than expected loan growth of 18% yoy. Deposits growth was strong 23% yoy with the bank raising FCNR (B) deposits worth ~US$3.4bn under the concessional swap facility of the RBI.Versus our expectation of 10bps improvement, HDFC Bank’s NIM declined by 10bps qoq to 4.2.On the back of benign slippages, the increase in Gross NPLs was modest at 2.6% qoq.We estimate HDFC Bank’s RoA to remain at historically high level of 1.9% in FY15/16 supported by robust NIMs and resilient asset quality. Absolute valuation does not look expensive in the context of elevated RoA delivery, so we remain bullish.”

Finally, BSE Sensex closed at 21,205 up 141 points, while NSE Nifty closed at 6,304 up 42 points over the previous close.

LIC sells over 2% stake in Biocon

Life Insurance Corporation of India (LIC) has sold more than 2% stake in Biocon for over Rs 162 crore. Post stake sale, the country’s largest insurer’s stake in Biocon has come down to 3.01% from 5.02% earlier.

LIC has offloaded 4,031,002 shares, for Rs 162.58 crore in Biocon through open market transactions.

Biocon is India’s largest and Asia’s leading Biotechnology Company with a strategic focus on biopharmaceuticals and research services.

Dewan Housing Finance gains on reporting 52% rise in Q3 net profit

Dewan Housing Finance Corporation has reported results for third quarter ended December 31, 2013.

The company has reported 51.68% rise in its net profit at Rs 138.39 crore for the quarter as compared to Rs 91.24 crore for the same quarter in the previous year. Total income from operation of the company has increased by 54.78% at Rs 1301.37 crore for quarter under review as compared to Rs 840.80 crore for the quarter ended December 31, 2012.

Dewan Housing Finance Corporation (DHFL) is among the oldest private sector Housing Finance Companies (HFC) in India.

City Union Bank inaugurates 3 branches in Tamil Nadu

City Union Bank has inaugurated three new branches in state of Tamil Nadu on January 20, 2014. The bank has opened the first branch at Swami Nagar, Main Road, Thiruvalanjuli while the second and third branch is been opened at Main Road, Devananchery and Easwar School Premises, Koranattu karuppur in state of Tamil Nadu.

City Union Bank was started at the temple town of Kumbakonam as a part of Swadeshi Movement to support Local Agriculture and Commerce in the year 1904 and entered the 110th year of service to the nation on October 31, 2013. The bank proudly dedicates this milestone to the participants in the Swadeshi Movement, Freedom Fighters and Customers / Stake holders / Employees of the bank -past, present and future.

Ultratech Cement reports 38% fall in Q3 net profit

Ultratech Cement has reported results for third quarter ended December 31, 2013.

The company has reported 38.46% fall in its net profit at Rs 369.76 crore for the quarter as compared to Rs 600.81 crore for the same quarter in the previous year. Total income from operation of the company has decreased by 1.32% at Rs 4817.85 crore for quarter under review as compared to Rs 4882.07 crore for the quarter ended December 31, 2012.

UltraTech manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals, four in India and one in Sri Lanka.

Sandur Manganese & Iron Ores resumes mining operations from January 20

Sandur Manganese & Iron Ores has resumed Mining Operations from January 20, 2014 after getting approval from Competent Authorities, the Government of Karnataka.  Earlier, as on January 01, 2014, the company had suspended all activities in its mining leases. The company has taken this step after the Forest Department directed suspension of mining operations without taking cognizance of the deemed renewal provisions.

The company had mining leases granted under the provisions of Mines & Minerals (Development & Regulation) Act, 1957 (MMDR Act) for a period of 20 years effective from January 01, 1994 and the same period has expired on December 31, 2013.

Sandur Manganese & Iron Ores (SMIORE), the flagship company of the Sandur Group, was founded by former ruler of the Princely State of Sandur, Yeshwanthrao Hindurao Ghorpade in 1954.  The major activities of SMIORE are mining of finest low grade, low phosphorous, manganese and iron ores, facility for production of ferroalloys and management of hydro-electric power generation.

Reliance MediaWorks to delist its shares from the bourses

Reliance MediaWorks is planning to delist its shares from the bourses. In this regard the board of directors of the Anil Dhirubhai Ambani Group Company is scheduled to meet on January 20 to consider delisting of equity shares of the company from the stock exchanges.

Bodies corporate are the major non-promoter shareholders held 13.22% stake in a film and entertainment services company. Individual shareholders held 12.43%, while 1.05% stakes are with the foreign investors and domestic institutional investors. The promoters held 73.30% stake as on September 30 2013, the shareholding pattern data shows.

Reliance MediaWorks has a leading and comprehensive presence in Film and Media Services: Motion Picture Processing and DI; Film, Audio Restoration and Image Enhancement; 3D; Digital Mastering: Studios and Equipment rentals; Visual Effects; Animation; Broadcast and TVC Post Production with presence across India, USA and the UK.

Tata Sponge Iron reports 18% jump in Q3 net profit

Tata Sponge Iron has reported results for third quarter ended December 31, 2013.

The company has reported 18.12% rise in its net profit at Rs 24.31 crore for the quarter as compared to Rs 20.58 crore for the same quarter in the previous year. However, total income from operation of the company has decreased by 0.68% at Rs 198.42 crore for quarter under review as compared to Rs 199.78 crore for the quarter ended December 31, 2012.

Tata Sponge Iron is engaged in business of manufacturing high-grade sponge iron that is consistent in quality.  The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its three kilns. Its production plant is situated at Bilaipada in Orissa.

Force Motors reports net loss of Rs 8.37 crore in Q3

Force Motors has reported results for third quarter ended December 31, 2013.

The company has reported net loss of Rs 8.37 crore for the quarter as compared to net profit of Rs 8.13 crore for the same quarter in the previous year. However, total income of the company has increased by 9.89% at Rs 479.48 crore for quarter under review as compared to Rs 436.32 crore for the quarter ended December 31, 2012.

Force Motors is a fully vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.

Nucleus Software Exports reports 90% rise in Q3 net profit

Nucleus Software Exports has reported results for third quarter ended December 31, 2013.

The company has reported 89.77% rise in its net profit at Rs 23.38 crore for the quarter as compared to Rs 12.32 crore for the same quarter in the previous year. Total income from operation of the company has increased by 20.54% at Rs 89.96 crore for quarter under review as compared to Rs 74.63 crore for the quarter ended December 31, 2012.

Nucleus Software Exports a leading provider of software solutions to the Banking, Financial Services Industry (BFSI). It has developed solutions spanning from retail banking to corporate banking, cash management, internet banking and credit cards.

Bank of Maharashtra unveils savings bank deposit scheme: Report

Bank of Maharashtra (BOM), a premier Nationalized Bank has reportedly unveiled ‘Mahabank Royal Savings Account’, a savings bank deposit scheme exclusively for high net worth Individuals having a minimum monthly average balance (MAB) of Rs 1 lakh in their account. The accountholder of this new deposit will get some special benefits like assistance of a relationship manager, free accident death insurance cover, higher transaction limit on ATM-cum-debit card on merchant point of sale terminals, and free national electronic funds transfer/real time gross system transactions through Internet banking.

Bank of Maharashtra has reported a fall of 71.77% in its net profit at Rs 46.85 crore for the quarter ended September 30, 2013 as compared to Rs 166.01 crore for the same quarter in the previous year. Total income of the bank increased by 31.32% at Rs 3196.56 crore for quarter under review as compared to Rs 2434.09 crore for the quarter ended September 30, 2012.

India ups exposure in US govt securities to $63.9 billion in November

Despite uncertainties in the world's largest economy, India has hiked American government securities’ holdings to $63.9 billion for the second straight month in November last year. The same stood at $59.9 billion in October, 2013. Notably, this marks country’s highest ever exposure in US securities in last five month. The country has been gradually upping its holding in American treasury bills since September last year when it touched $ 56.8 billion.

However despite this, India has the second lowest exposure to these securities after South Africa among the BRICS grouping. South Africa holding in American securities in November stood at $11.7 billion against $ 10.6 billion in October 2013.

On the flip side, within the BRICS bloc China remains the largest holder of these securities with exposure worth $1.32 trillion in November, slightly higher than $1.30 trillion recorded in October, Japan, which held American government securities to the tune of $1.19 trillion in November, occupies the second spot.

IVRCL spurts on bagging multiple orders worth Rs 550.56 crore

IVRCL has bagged multiple order s worth Rs 550.56 crore under its Power Division, Building Division and Transportation Division.  Under Power Division, the company has bagged project worth Rs 394.36 crore. The order is for ‘supply of Equipment & Materials for Rural Electrification & Associated 33 KV works’ and ‘Erection, Testing & Commissioning of all Equipments & Materials for Rural Electrification & Associated 33 KV works’ in 3766 No or Unelectrifiecl Habitations (under the single contract) in Unnao district of UP on ‘Turnkey’ basis under Government of India scheme of 'Rajiv Gandhi Gramln VIclyutikaran Yojna Phase-II' (Tender Specification No MEDC0/ 615/ RGGVY-Ill 2012), awarded by Madhyanchal Vidyut Vitran Nigam, Lucknow. The completion period of work is 24 months.

Under Building Division, the company has bagged project worth Rs 83.85 crore. The order is for construction of New International Arrival Block, Internal Modification of Existing International Passengers Terminal Building and Associated works at Calicut International Airport awarded by Airports Authority of India, Calicut International Airport. The completion period of work is 20 months.

Under Transportation Division, the company has bagged project worth Rs 72.35 crore. The order is for construction of major bridge No 161(62x18.30m) PSC girders on pile foundation Including substructure, Projection work and other related works etc. between Station Indiranagar and Surbarai In connection with Doubling of Viramgam-Samakhiali BG section of Western Railway Tender No Dy CE III/ADING/SIOB/Br 161/03, awarded by Chief Administrative officer (Const), Western Railway, Churchgate, Mumbal-400 020 to IVRCL Ajay Protech 3V. The completion of work period is 18 months.

Subsidised LPG cylinder quota to be increased to 12 per household: Oil Minister

Giving some respite to Indian households, Oil Minister M Veerappa Moily stated that the quota of subsidised cooking cylinders will be hiked to 12 from 9 per household. Oil Ministry will soon move the proposal to Cabinet Committee on Economic Affairs (CCEA) for consideration.

At present, 89.2 percent of the 15 crore Indian LPG consumers use up to nine cylinders in a year and only 10 per cent have to buy the additional requirement at the market price. If the LPG subsidy quota is increased to 12, about 97 percent of the LPG consumers would be covered by subsidised LPG. Under the Direct Benefit Transfer for LPG (DBTL) scheme, which was rolled-out in country’s 289 districts, cooking gas consumers get subsidized advance money in their bank accounts to help them purchase a 14.2-kg LPG cylinder at market price. At present, the subsidised LPG cylinder costs Rs 414 while the market price per bottle comes to Rs 1,258.

However, the proposal to increase the number of subsidised cylinders will put pressure on the government’s fiscal position with additional fuel subsidy burden of Rs 3,300 crore-5,800 crore. India's fiscal deficit reached to Rs 5.1 lakh crore or 94% of the targeted budgetary estimate of Rs 5.42 lakh crore in the April-November period of current fiscal. Earlier, in order to cut the LPG subsidy, the government had initially capped the supply of subsidised domestic LPG cylinders to six per household and then raised the quota to nine in the previous year.

MTNL gains on adding 10,907 mobile subscribers in December

MTNL is currently trading at Rs. 15.09, up by 0.17 points or 1.14% from its previous closing of Rs. 14.90 on the BSE.

The scrip opened at Rs. 14.97 and has touched a high and low of Rs. 15.09 and Rs. 14.91 respectively. So far 1,61,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 28.05 on 18-Jan-2013 and a 52 week low of Rs. 9.71 on 20-Aug-2013.

Last one week high and low of the scrip stood at Rs. 17.10 and Rs. 14.85 respectively. The current market cap of the company is Rs. 949 crore.

The promoters holding in the company stood at 56.25% while Institutions and Non-Institutions held 22.34% and 19.16% respectively. Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has added 10,907 mobile subscribers in December, 2013. Following the addition, the company’s total subscriber count stood at 34.63 lakh with a market share of 0.50%.

MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.

Wipro shines on reporting 17% rise in Q3 consolidated net profit

Wipro is currently trading at Rs. 568.00, up by 16.45 points or 3.00% from its previous closing of Rs. 552.45 on the BSE.

The scrip opened at Rs. 552.60 and has touched a high and low of Rs. 570.10 and Rs. 552.60 respectively. So far 1, 14,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 575.35 on 17-Jan-2014 and a 52 week low of Rs. 315.30 on 31-May-2013.

Last one week high and low of the scrip stood at Rs. 575.35 and Rs. 549.50 respectively. The current market cap of the company is Rs. 1, 40,292 crore.

The promoters holding in the company stood at 73.49% while Institutions and Non-Institutions held 13.88% and 10.69% respectively.

The company has registered a rise of 47.10% in its net profit at Rs 2047.90 crore in Q3FY14 as compared to Rs 1392.20 crore in the corresponding quarter previous year. The total income from operation of the company has increased by 20.47% to Rs 10510.20 crore for the quarter under review as compared to Rs 8724.30 crore in the same quarter last year.

On the consolidated basis, the group has reported 17.38% rise in its net profit at Rs 2014.70 crore for the quarter as compared to Rs 1716.40 crore for the same quarter in the previous year. Total income from operation of the group has increased by 18.53% at Rs 11708.60 crore for quarter under review as compared to Rs 9877.80 crore for the quarter ended December 31, 2012.

Apollo Hospitals gains on expansion plans

Apollo Hospitals Enterprise is currently trading at Rs. 939.00, up by 12.05 points or 1.30 % from its previous closing of Rs. 926.95 on the BSE.

The scrip opened at Rs. 926.95 and has touched a high and low of Rs. 942.00 and Rs. 926.95 respectively. So far 1819 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1096.15 on 17-May-2013 and a 52 week low of Rs. 767.10 on 21-Jan-2013.

Last one week high and low of the scrip stood at Rs. 933.75 and Rs. 888.40 respectively. The current market cap of the company is Rs. 12896.21 crore.

The promoters holding in the company stood at 34.35 % while Institutions and Non-Institutions held 45.38 % and 19.49 % respectively.

Apollo Hospitals Enterprise is planning to expand its chain of birth centres -- Cradle. In this regard, the company will invest Rs 100 crore over the next 12 months.

A newly opened unit of Apollo Hospitals Group brand Cradle in Chennai is one such modern delivery centre where a soon-to-be mother will have more than just clinical attention. The 30,000 sq. ft. facility in South Chennai is the fourth Cradle unit, including the two in Bangalore and one in Gurgaon.

Apollo Hospitals is the leading private sector healthcare provider in Asia and owns and manages a network of speciality hospitals and clinics, a chain of Pharmacy retail outlets across the country, and provides Consultancy Services for commissioning and managing the Speciality Hospitals.

Hero MotoCorp set to display more than 12 new models at Auto Expo

Hero MotoCorp is all set to display more than 12 new models at the upcoming Auto Expo, including concepts and hybrids. The company is participating at the Auto Expo for the first time with its own technology although the company took part in the last expo independently after separation from Honda.

The displays at the auto expo would showcase the company’s research and development initiatives, progress and prowess. The Auto Expo will be held at the India Expo Mart in Greater Noida. While February 5-6 will be press days, public days are from February 7-11.

Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.

Aurobindo Pharma gains on plan to acquire commercial operations in European countries

Aurobindo Pharma is currently trading at Rs. 395.10, up by 10.15 points or 2.64% from its previous closing of Rs. 384.95 on the BSE.

The scrip opened at Rs. 382.00 and has touched a high and low of Rs. 399.00 and Rs. 380.00 respectively. So far 84,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 417.90 on 07-Jan-2014 and a 52 week low of Rs. 127.15 on 28-Mar-2013.

Last one week high and low of the scrip stood at Rs. 402.70 and Rs. 375.00 respectively. The current market cap of the company is Rs. 11,574.00 crore.

The promoters holding in the company stood at 54.73% while Institutions and Non-Institutions held 31.56% and 13.71% respectively.

Aurobindo Pharma has inked a binding offer to acquire commercial operations in seven Western European countries from Actavis plc. The closing of the transaction is conditional on certain antitrust approvals and completion of employee consultation processes. The company expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries.

Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo’s front-end operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1200 products and an additional pipeline of over 200 products. The management estimates the net sales for the acquired businesses would be around EUR 320 million in 2013 with a growth rate of over 10% year-on-year.

Although these businesses are currently loss-making, Aurobindo Pharma expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe. This acquisition will also enable Aurobindo to achieve critical mass in Western Europe with a top 10 position in several key markets.

Jefferies International acted as sole financial advisor and Herbert Smith Freehills LLP acted as legal counsel to Aurobindo Pharma. Rothschild and Latham & Watkins acted as sole financial adviser and legal counsel to Actavis, respectively. 

NTPC gets investment approval for Darlipali Super Thermal Power Project

NTPC has received an investment approval for Darlipali Super Thermal Power Project, (2x800 MW) to be implemented in the state of Odisha at an appraised current estimate cost of Rs 12,532.44 crore, subject to environmental clearance of Ministry of Environment and Forests (MOEF). The board of directors at its meeting held on January 16, 2014 has approved for the same.

NTPC is the largest power generating company in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. The company’s current installed generation capacity is 42,454 MW. The company plans to add about 20,000 MW by 2017. It has about 1,500 MW of hydro power capacity under construction and operates about 4,000 MW of gas-based power plants in the country.

Markets to get a soft start of the new week

Indian markets suffered cut of around a percent after a volatile trade in the last session, blue chips came under selling pressure as traders opted to book profit. Today, the start is likely to be a bit soft-to-cautious tailing the weakness in the global markets. There will be buzz on the street related to the political developments after Congress party vice president Rahul Gandhi made a strong pitch for raising LPG cap, Oil Minister M Veerappa Moily has announced that the quota of subsidised cooking cylinders will be hiked to 12 from 9 per household. Increasing the limit to 12 would result in an additional fuel subsidy burden of Rs 3,300 crore-5,800 crore for the government and the PSU oil marketing companies are likely to come under pressure with that. The iron and steel stocks too are likely to show some negative reaction to the report that India’s iron ore exports have gone down by 28.16 per cent to 11.17 million tonnes (mt) during April-December of the current fiscal owing to the present regulatory scenario. However, there is a good news that FII’s remained on their buying spree and increased their stake in major companies in the December quarter.

There will be lots of result reaction to the announcements made during the weekend, while some important companies will be reporting their numbers today. Aptech, Dewan Housing, Kajaria Ceramics, Tata Metaliks, Ultratech Cements and VST Inds will be announcing their numbers.

The US markets mostly made a lower closing in last session on some weak earnings and economic data. The major Asian markets have made a soft start ahead of the China’s factory output and gross domestic product data.

Back home, Friday turned out to be a disappointing session of trade for the stock markets in India as the benchmark equity indices clobbered out of shape and settled the session below their crucial 6,300 (Nifty) and 21,100 (Sensex) levels, as sentiments got spooked on account of disappointing Q3 numbers by some of the blue chip stocks like ITC and TCS. Sentiment remained downbeat right from the beginning after the Global ratings agency Moody’s underscored that India’s economic recovery is likely to be slow in the second half of 2014 and the outcome of general elections could have an impact on the growth prospects. Investors also remained sidelines ahead of earnings of index heavyweight Reliance Industries (RIL). On the global front, most of the Asian markets ended in the red, however, European markets traded in the green in early deals. Back home, selling in banking counter too dampened the sentiments after the industry body Assocham underscored that the growth of Indian banking industry is likely to remain under pressure with gross non-performing assets (NPAs) expected to touch 5 percent of total loans by March this year. Moreover, telecom stocks viz. Bharti Airtel, Idea Cellular and Reliance Communication extended their previous session’s slide triggered by Reliance Industries surprisingly deciding to join the bidding for upcoming telecom spectrum auction slated for February 3, 2014. Sentiments also remained dampened after TCS’ Q3 result fell short of market expectations. The company, on consolidated basis, reported 50.25% rise in its net profit at Rs 5333.43 crore for the quarter ended December 31, 2013 as compared to Rs 3549.62 crore for the same quarter in the previous year. Finally, the BSE Sensex plunged by 201.56 points or 0.95%, to settle at 21063.62, while the CNX Nifty declined by 57.25 points or 0.91% to settle at 6,261.65.