Gold remains up on scattered buying; silver steady

Gold extended gains for the second day with prices rising by another Rs 20 to Rs 28,370 per 10 grams in the national capital on Monday on scattered buying by stockists for the festive season demand. 

Silver, on the other hand, remained flat at Rs 44,800 per kg on selective buying support. 

Marketmen said some buying by stockists and jewellers to meet the festive season demand mainly influenced gold prices but a weak trend in overseas markets capped the gains. 

On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 20 each to Rs 28,370 and Rs 28,170 per ten grams, respectively. It had gained Rs 250 on Saturday. 

Sovereign, however, remained steady at Rs 24,900 per piece of eight grams. Globally, gold prices fell as much as 0.4 per cent to 1,301.49 an ounce in Singapore. 

On the other hand, silver ready remained steady at Rs 44,800 per kg, while weekly-based delivery rose by Rs 90 to Rs 44,370 per kg, after gaining Rs 265 in the previous session on Saturday. Silver coins dropped by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces. 

Thomas Cook Cons net profit up 50%

The Company’s Foreign Exchange business posted a 53% growth in Earnings Before Tax from Rs 317 Mn. in HY 2013 to Rs 485 Mn. in 2014.

Thomas Cook (India) Ltd today declared its consolidated Financial Results for the Half Year ended June 30, 2014 with an increase in Income from Operations of 163% (Rs. 3,933 Mn. to Rs. 10.3 Bn.), Profit Before Tax of over 65% (Rs. 533 Mn. to Rs. 877 Mn.) and consolidated Profit After Tax of 50% (Rs. 339 Mn to Rs. 508 Mn.),as compared to the corresponding Half Year 2013.

The diversified Thomas Cook India Group saw strong results with delivery of its core businesses of travel and foreign exchange and via Ikya Human Capital Solutions:

Foreign Exchange, MICE and Domestic businesses displayed a significant revenue growth of 26%, 34%, 113% respectively.

The Company’s Foreign Exchange business posted a 53% growth in Earnings Before Tax from Rs 317 Mn. in HY 2013 to Rs 485 Mn. in 2014.

The Inbound business saw a strong growth in H1 2014, with EBT growth of 37% courtesy delivery from both its Charter and non Charter businesses and contributions from new emerging source markets

The MICE business delivered impressive EBT growth of 101% in both outbound and domestic segments

Ikya Group
 At the Ikya Group level, the QTD Revenue has grown by 27% and EBITDA by 144% compared with same Quarter last year.

Acquisition of 100% equity stake in industrial asset management company Hofincons Infotech and Industrial Services  from Transfield Services Australia for ~Rs 500 Mn.

The Company reported QTD earnings before tax of ~Rs 200 Mn.

Commenting on the Results, Mr. Madhavan Menon, Managing Director, Thomas Cook(India) Ltd. said, “H1 2014 has seen significant business growth across the diversified Thomas Cook India Group, with an overall revenue increase of 163%;. IKYA delivering strong Quarter Results- a 27% increase in Revenue and an impressive 144% growth in EBITDA.”

He added, “The new Government’s pro-tourism focus and the strategic tourism initiatives including infrastructure and technology via Budget 2014-15, augur well for our travel and foreign exchange businesses; the announcement of eVisas giving a further fillip to the upcoming Inbound season.
With strong economic indicators and increasing consumer optimism, we look forward to an impactful FY 2014 for the Thomas Cook India Group!”

Havells Q1 profit up 13.32% at Rs 107.27 crore

Electrical goods maker Havells India reported a 13.32 per cent increase in its standalone net profit at Rs 107.27 crore for the first quarter ended June 30, 2014. 

The company had posted a standalone net profit of Rs 94.66 crore during the for the same period of the previous fiscal. 

Net sales of the company rose to Rs 1,267.27 crore for the April-June quarter, as compared to Rs 1,044.06 crore during the same period of the previous fiscal, Havells India said in a filing to the BSE. 

Shares of the company were trading at Rs 1,215 per scrip during the afternoon trade on the BSE, down 2.02 per cent from its previous close. 

Aluminium futures up 0.25 per cent on global cues, pick-up in demand

Aluminium futures edged higher by 0.25 per cent to Rs 119.90 per kg today as speculators enlarged positions amid pick-up in demand at spot markets. 

Besides, a firming trend in base metals at the London Metal Exchange (LME) also supported the upside. At the Multi Commodity Exchange, Aluminium for delivery in July rose 30 paise, or 0.25 per cent, to Rs 119.90 per kg, with a business turnover of 163 lots. 

The metal for delivery in August also rose by a similar margin to trade at Rs 120.70 per kg in a turnover of 22 lots. Marketmen said apart from a firming trend in base metals pack at the LME, rising demand at spot markets influenced aluminium prices at futures trade here. 

Adani plans to raise Rs 10,000 crore via QIP

The money may be raised in phases starting in the last week of August

Adani Group is planning to raise over Rs. 10,000 crore through a qualified institutional placement (QIP) of shares of Adani Enterprises, Adani Power and Adani Ports & Special Economic Zone to fuel the group's growth. The money may be raised in phases starting in the last week of August, with Adani Ports likely to hit the market first, the report added.  Recently, Adani Ports and Special Economic Zone (APSEZ) received the environment and coastal regulation zone clearance from the Union Ministry for Environment and Forests, for its 8,481 hectares special economic zone in Mundra.

Godrej Consumer Products Q1 PAT at Rs1.43bn

Total Income has increased from Rs. 17400.70 mn for the quarter ended June 30, 2013 to Rs. 19158.90 mn for the quarter ended June 30, 2014.

Godrej Consumer Products Ltd has posted a profit after taxes, minority interest and share of profit / (loss) of associates of Rs. 1434.50 mn for the quarter ended June 30, 2014 as compared to Rs. 1327.10 mn for the quarter ended June 30, 2013. Total Income has increased from Rs. 17400.70 mn for the quarter ended June 30, 2013 to Rs. 19158.90 mn for the quarter ended June 30, 2014.   The company has announced that the Board of Directors of the Company at its meeting held on July 28, 2014, has declared an interim dividend @ Re. 1/- per share (100% on the shares of the face value of Re. 1/- each) for the financial year 2014-15.

Bank of Baroda Q1 profit beats forecast, up 17%; NPA rises

Net interest income, the difference between interest earned and interest expended, grew 15.2 percent, higher-than-expected, to Rs 3,328.3 crore during the same period while other income (non-interest income) declined 16.7 percent on yearly basis to Rs 1,024.54 crore in the quarter gone by.

Public sector lender  Bank of Baroda suprassed street expectations with the first quarter (April-June) net profit rising 16.6 percent at Rs 1,362 crore compared to Rs 1,167.9 crore in same quarter last year on account of lower provisions but impacted by lower other income and higher tax expenses. Net interest income, the difference between interest earned and interest expended, grew 15.2 percent, higher-than-expected, to Rs 3,328.3 crore during the same period while other income (non-interest income) declined 16.7 percent on yearly basis to Rs 1,024.54 crore in the quarter gone by. Asset quality deteriorated with the gross non-performing assets (gross NPA) rising sequentially (up 12 basis points year-on-year) to 3.11 percent in June quarter from 2.94 percent in March quarter and net NPA increasing quarter-on-quarter (down 11 bps Y-o-Y) to 1.58 percent from 1.52 percent during the same period.

Dollar Holds Gains Versus Euro; Longs at Most Since 2012

The dollar traded near the strongest in eight months against the euro as investors raised bets it would climb versus the single currency to the most since November 2012.

The U.S. currency maintained its biggest weekly advance since March against major peers before reports forecast to show growth in services held near the fastest pace in at least three years, employers added more than 200,000 jobs for a sixth month, and economic growth rebounded last quarter. The Federal Reserve meets from tomorrow to debate the pace of interest-rate increases and whether to further reduce bond purchases. The New Zealand dollar fell to a one-month low.

“The Fed’s reaction to the already stronger data will be interesting, but policy is absolutely dependent on the data going forward,” said Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. “The bias is for the U.S. dollar to creep higher. You’d expect the euro to remain under pressure in the short term.”

The dollar traded at $1.3429 per euro at 6:35 a.m. in London, little changed from July 25, when it reached $1.3422, the strongest since Nov. 21. It bought 101.82 yen from 101.84. The euro fetched 136.73 yen from 136.77.

Ashok Leyland Q1 turnover up 5%

Sale of Light Commercial Vehicles stood at 5,032 nos. (6,824); the drop was primarily due to a correction in pipeline inventory.

Ashok Leyland registered a 4.8% increase in turnover - Rs. 2,477.80 crores for the quarter ended June 30, 2014, as against Rs. 2,363.81 crores of the corresponding quarter in 2013. Sale of M&HCV vehicles for the quarter stood at 14,949 numbers (14,900). Sale of Light Commercial Vehicles stood at 5,032 nos. (6,824); the drop was primarily due to a correction in pipeline inventory. Vinod K Dasari, Managing Director- Ashok Leyland, said that, “Having delivered strong results in Q4 last year, Ashok Leyland continues to improve its performance this quarter too. We have gained market share in medium and heavy commercial vehicles compared to the same quarter last year, despite lowered industry volumes. Enhanced sales realization through better pricing, a tight rein on costs, and a better sales mix, have resulted in a much stronger performance than Q1 FY 2014.” An EBITDA margin of 4.7% for the first quarter reflects the Company’s efforts at improving net realization, reducing material costs, and controlling operating overheads; and is a significant improvement over 1.0% for the corresponding quarter of the previous fiscal year. The company made a net loss of Rs. 47.95 crores, significantly lower than the net loss of Rs. 141.75 crores in the same period last year. Speaking about the company’s performance, Mr. Dasari said, “Although TIV dropped by 10%, we increased our share by 2.3% - largely on account of the outstanding performances of our ICV, tipper, and tractor segments. Our new products such as BOSS continue to perform exceedingly well, and several variants are planned in our LCV range as well. We are also quite excited about the prospects of CAPTAIN and JANBUS. We are confident the market will strengthen and we will continue our efforts at offering class-leading products and services to our customers.”

HDFC Fund raises $250 mn for realty investments

HDFC Property Fund, a part of financial sector conglomerate HDFC group, today announced the closure of $250 million international fund focused on investing in Indian real estate. 

The fund-raising exercise has been concluded with investments from marquee international institutional investors and marks closure of HDFC's second international real estate fund, it said in a statement. 

HDFC had raised an international fund of $800 million in 2007, which is fully deployed. 

The recently closed fund will focus on investing primarily in residential property developments in major cities across India. 

HDFC Property Fund had also set up in 2005 two domestic real estate funds; one with a corpus of Rs 1,000 crore that has been substantially exited and another Rs 464.4 crore fund which is fully exited now. 

The cumulative assets under management of HDFC Property Fund exceed $1 billion. 

Brent slips below $108 as Mideast tension cools on Gaza lull

Brent crude slipped below $108 a barrel on Monday as fighting between Israel and Hamas Islamist militants subsided in Gaza .

Geopolitical tensions in the Middle East eased for now after Hamas said it backed a 24-hour humanitarian truce. US President Barack Obama had called for a ceasefire but there was no sign of any comprehensive deal to end fighting with Israel. 

September Brent crude fell 50 cents to $107.89 a barrel by 0321 GMT after a 1 per cent gain last week. US crude futures for September delivery dropped 52 cents to $101.57 a barrel after ending last week 1 per cent lower. 

Global markets may also see more oil exported out of Iraqi Kurdistan after the US Coast Guard cleared a tanker to unload a cargo off Texas on Sunday. A State Department official signalled that Washington would not intervene to block delivery of the controversial crude. 

Investors are gearing up for more economic data from the United States later this week, including second-quarter GDP figures, to gauge the health of the world's largest economy. 

JP Power rallies over 8% as Reliance Power plans to buy Jaypee's hydro assets

Jaiprakash Power Ventures Ltd  rallied as much as 8.7 per cent in trade on Monday, after Anil Ambani-controlled Reliance Power  plans to acquire the entire hydroelectricity portfolio of the Jaiprakash Group for about RS 12,000 crore. 

Reliance Power has also signed an initial agreement for India's biggest deal in the infrastructure sector other than telecom.

"Reliance CleanGen (RCL), a 100% subsidiary of Reliance Power (part of the Anil Ambani-led Reliance Group), and Jaiprakash Power Ventures (JPVL), a subsidiary of Jaiprakash AssociatesBSE 3.79 % ( JAL), today announced the signing of an exclusive memorandum of understanding (MOU), for the 100% acquisition by RCL of the entire hydroelectric power portfolio of JPVL," a company statement said. 

"JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 Mw, fully in operation, the largest in the private sector in India, and with an asset base of over Rs 10,000 crore. The portfolio comprises ... three plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir," it said. 

HUL Q1 PAT at Rs10.56bn

Total Income has increased from Rs. 69857.90 mn for the quarter ended June 30, 2013 to Rs. 79184.50 mn for the quarter ended June 30, 2014.

HUL Ltd has posted a net profit of Rs. 10568.50 mn for the quarter ended June 30, 2014 as compared to Rs. 10192.50 mn for the quarter ended June 30, 2013.

Total Income has increased from Rs. 69857.90 mn for the quarter ended June 30, 2013 to Rs. 79184.50 mn for the quarter ended June 30, 2014.

In Skin Cleansing, Dove, Pears, Lux, Lifebuoy, Liril and Hamam grew well. There was a step up in price growth as judicious pricing actions were taken to manage input cost inflation. Lux was re-launched during the quarter with improved product sensorials and aesthetics.

In Laundry, growth was led by the premium segment with Surf sustaining its strong growth momentum and Rin accelerating across both powders and bars. Wheel continued to show improved growth post its re-launch at the end of last year. Comfort Fabric Conditioner continued to lead market development and deliver robust growth. Vim led the performance in Household Care.