June IIP at -2.2%

The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of June 2013 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation. IIP is compiled using data received from 16 source agencies viz. Department of Industrial Policy & Promotion (DIPP); Indian Bureau of Mines; Central Electricity Authority; Joint Plant Committee; Ministry of Petroleum & Natural Gas; Office of Textile Commissioner; Department of Chemicals & Petrochemicals; Directorate of Sugar; Department of Fertilizers; Directorate of Vanaspati, Vegetable Oils & Fats; Tea Board; Office of Jute Commissioner; Office of Coal Controller; Railway Board; Office of Salt Commissioner and Coffee Board.

The General Index for the month of June 2013 stands at 164.3, which is 2.2% lower as compared to the level in the month of June 2012. The cumulative growth for the period April-June 2013-14 over the corresponding period of the previous year stands at (-) 1.1%.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of June 2013 stand at 117.1, 174.2 and 157.0 respectively, with the corresponding growth rates of  (-) 4.1%, (-) 2.2% and 0.0% as compared to June 2012 (Statement I). The cumulative growth in the three sectors during April-June 2013-14 over the corresponding period of 2012-13 has been (-) 4.5%, (-) 1.2% and 3.5% respectively.
 In terms of industries, thirteen (13) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown negative growth during the month of June 2013 as compared to the corresponding month of the previous year (Statement II). The industry group ‘Furniture; manufacturing n.e.c.’ has shown the highest negative growth of 23.8% followed by 14.2% in ‘Medical, precision & optical instruments, watches and clocks’ and 13.7% in ‘Motor vehicles, trailers & semi-trailers’. On the other hand, the industry group ‘Wearing apparel; dressing and dyeing of fur’ has shown a positive growth of 31.8% followed by 7.6% in ‘Chemical and chemical products’ and 7.2% in ‘Electrical machinery & apparatus n.e.c.’.

As per Use-based classification, the growth rates in June 2013 over June 2012 are (-) 1.9% in Basic goods, (-) 6.6% in Capital goods and 1.1% in Intermediate goods (Statement III).  The Consumer durables and Consumer non-durables have recorded growth of (-) 10.5% and 5.0% respectively, with the overall growth in Consumer goods being (-) 2.3%.

Some of the important items showing high negative growth during the current month over the same month in previous year include ‘Cigarettes’ [(-) 25.1%], ‘Grinding Wheels’ [(-) 38.3%], ‘Copper Metal Cathode’ [(-) 72.5%], ‘Copper and Copper Products’ [(-) 67.9%], ‘Boilers’ [(-) 25.2%],  ‘Heat Exchangers’ [(-) 59.2%], ‘Earth Moving Machinery’ [(-) 23.7%], ‘Sugar Machinery’ [(-) 49.9%], ‘Plastic Machinery Incl. Moulding Machinery’ [(-) 25.3%] and ‘Gems and Jewellery’ [(-) 32.6%].
                                                         
Some of the other important items showing high positive growth are: ‘Rice’ (25.0%), ‘Aerated Water and Soft Drinks’ (28.2%), ‘Apparels’ (33.3%), ‘Leather Garments’ (25.5%), ‘Di Ammonium Phosphate (DAP)’ (164.7%), ‘Ethylene’ (34.1%), ‘Polypropylene’ (32.1%), ‘Vitamins’ (54.7%), ‘PVC Pipes and Tubes’ (30.0%), ‘Cable, Rubber Insulated’ (54.3%) and ‘Three- Wheelers (including passenger & goods carrier)’ (35.9%).

Along with the Q.E. of IIP for the month of June 2013, the indices for May 2013 have undergone the first revision and those for March 2013 have undergone the final revision in the light of the updated data received from the source agencies. It may be noted that these revised indices (first revision) in respect of May 2013 shall undergo final (second) revision along with the release of IIP for the month of August 2013.

Statements giving Quick Estimates of the Index of Industrial Production at Sectoral, 2-digit level of National Industrial Classification (NIC-2004) and by Use-based classification for the month of June 2013, along with the growth rates over the corresponding month of previous year, including the cumulative indices and growth rates, are enclosed.      

Exports up over 11% in July

Imports fall 6.2% from a year earlier to $38.1 billion

At last, India got good news on exports front. After two straight months of contraction, exports from India rose a whopping 11.64% at $25.83 billion in July 2013 against $23.14 billion in the same month of the previous year.

Besides, India's inbound shipments were down 6.2% to $38.10 from $40.62 billion over this period, pulled down by inbound shipments of gold. Imports of gold fell to $2.9 billion from $4.9 billion in this period.

As such, trade deficit fell to $12.27 billion in July versus $17.62 billion in the same month a year ago.

With this, total exports were up 1.72% at $98.29 billion in the first four months of the current financial year against $96.63 billion in the corresponding period a year ago.  Imports, on the other hand, were up 2.82% at $160.74 billion against $156.33 billion over this period.

As such, trade deficit widened to $62.45 billion against $59.7 billion over this period. While, July figures will give comfort on account of larger current account deficit, which is giving headache to the government, the cumulative deficit is yet to be brought under control.

Gold and silver imports stood at $2.9 billion in July, down from $4.4 billion in the same period last year.

Commerce Secretary S R Rao said exports to regions like Africa, ASEAN and Far East are helping the country's shipments to grow.

Oil imports in July declined by 8% to $12.7 billion and during April-July period it grew by 2.65% to $54.5 billion.

Marico Q1 net up 27% at Rs 158 cr

Company reported net profit of Rs 124 cr in the April-June quarter of the 2012-13 fiscal

FMCG  firm Marico Ltd today reported 27.36% increase in net profit at Rs 157.72 crore for the first quarter ended June 30, 2013.

The company had reported net profit of Rs 123.83 crore in the April-June quarter of the 2012-13 fiscal.

Marico's Q1, 2013-14, net sales were at Rs 1,379.66 crore, up 8.87% compared to Rs 1,267.2 crore in the year-ago period, the company said in a BSE filing.

Revenue from consumer products increase by 8.89% at Rs 1,295.55 crore and revenue from skin care increased by 7.67% at Rs 86.81 crore.

Overall expenses during Q1 were at Rs 1,173.28, up 6.40%, as against Rs 1,102.67 crore in the same quarter last year.

Marico Ltd scrip closed at Rs 202.10 in the afternoon trade, up 1.38% on the BSE.

Sensex up; re breaches 61/$, midcap & smallcap outperform

The market pares gains in the last trading hour. The Sensex is up 147.37 points at 18936.71 while the Nifty is up 43.20 points at 5608.85.  About 1443 shares have advanced, 796 shares declined, and 131 shares are unchanged.

HDFC shares rallied nearly 5 percent, while ONGC , ahead of its earnings, rose more than 2 percent.

Tech Mahindra rose more than 2 percent after higher-than-expected earnings during April-June quarter. The company also increased FII investment limit to 45 from 35 percent.

State Bank of India's ( SBI ) June quarter numbers disappointed the street with the bad loans surging by 19 percent over the previous quarter. Shares fell more than 3 percent as analysts see further downgrades.

GVK Power June quarter net loss at Rs. 30.59 crore

GVK Power and Infrastructure Ltd posted a net loss in its June quarter, weighed down by sluggish investments on infrastructure in a slowing economy and higher interest payments on outstanding debt.

The company posted a net loss of Rs. 30.59 crore in the quarter, compared with a loss of Rs. 64.3 crore a year earlier. Net sales fell 14.5 per cent to roughly Rs. 700 crore.

The company had been expected to post a loss of Rs. 1,100 crore, according to an estimate of two analysts tracking the company.

Like its peers in the power sector, GVK has grappled with fuel shortages for its power plants, while its highway construction business has been hit by environmental clearance hurdles.

Overseas, GVK's $10 billion coal mining project, which is a joint venture with Australian mining magnate Gina Rinehart's Hancock Coal, has been delayed to 2016.

Tech Mahindra net up 27% to Rs. 686 crore

IT firm Tech Mahindra on Monday reported a 27 per cent jump in consolidated net profit at Rs. 686 crore for the quarter ended June 30, 2013, led by broad-based growth across sectors like manufacturing and media and entertainment. Tech Mahindra had reported a net profit of Rs. 540.5 crore in the same period last year.

Tech Mahindra, part of the Mahindra and Mahindra group, saw revenues at Rs. 4,103 crore in the reported period, up 21.7 per cent as compared to Rs. 3,378 crore in the April-June 2012 quarter.

"We have completed one of the largest mergers in Indian corporate space this quarter in a seamless fashion. Our robust performance reinforces our belief in the inherent strength and cross leveraging possibilities," Tech Mahindra Executive Vice Chairman Vineet Nayyar told reporters here.

Tech Mahindra in June completed the merger of Mahindra Satyam with itself to create the country's fifth largest software services firm.

On sequential basis, the consolidated net profit was up 36.2 per cent (before exceptional reversal of impairment provision) as the same stood at Rs. 638 crore in the January-March 2013 quarter.

In U.S. dollar terms, revenues stood at $724 million (up 17.7 per cent year-on-year), while net profit was at $121 million (up 22.3 per cent y-o-y).

"We have seen good growth led by manufacturing, which is our second largest vertical after telecom, at 5.7 per cent growth quarter-on-quarter. Media and entertainment grew 8.7 per cent, while retail grew over six per cent. Telecom, despite of the accounts not growing significantly, saw q-o-q growth of 2.5 per cent," Tech Mahindra Managing Director C P Gurnani said.

Its total headcount stood at 83,063 for the quarter ended June 30, 2013, of which software professionals accounted for 53,337, BPO at 23,269 and support staff at 6,457. On the client side, Tech Mahindra said its active client count stood at 567 in Q1FY14 vs 516 in Q4FY13.

Tech Mahindra's cash and cash equivalent stood at Rs. 3,655 crore as of June 30, 2013.

India Cements Q1 net drops 73% to Rs 17 cr on higher expenses

Hit by higher expenses, India Cements’ net profit for the April-June quarter dipped by 73 per cent to Rs 16.82 crore.

The Chennai-based cement maker had clocked net profit of Rs 62.07 crore in the same quarter a year earlier, it said in a BSE filing.

Net sales rose slightly to Rs 1,238 crore from Rs 1,201 crore a year ago.

However, total expenses were up to Rs 1,115 crore from Rs 993 crore. It consumed power and fuel worth Rs 330 crore from Rs 288 crore a year earlier.

India Cements’ consumed raw material cost also went up to Rs 159 crore compared to Rs 137 crore a year earlier.

Finance costs also rose to Rs 100 crore from 95 crore a year ago.

Shares of the company were trading at Rs 43.25 apiece, down 3.46 per cent in afternoon trade in the BSE.

Sensex gains over 200 pts; Tata Steel, Jindal Steel up 8%

Ananth Narayan of Standard Chartered has given his vote of confidence to the Reserve Bank of India's (RBI) measures on the rupee by saying the currency hitting its all-time low of 61.80 again against the dollar is unlikely now.

"The action since July 15 and the words, which have come in from the ministry, clearly indicated the authorities are watching it extremely carefully. So purely from a sentiment perspective and from a market confidence perspective, I think the often talked about line in the sand is now there again," adds Narayan.

 The RBI will be auctioning Rs 22,000 crore of government cash management bills every week, it said in a statement, without specifying for how many weeks the sales would last.

Narayan expects the RBI to announce more policy reforms if the rupee starts showing signs of weakness again.

The market has managed to gather pace in afternoon trade as the Nifty is above 5600 led by metals and pharma but banks are refusing to budge from the weak levels. The Sensex is up 200.37 points at 18989.71, and the Nifty adds 55.25 points at 5620.90. About 1214 shares have advanced, 744 shares declined, and 116 shares are unchanged

The midcap index jumps over a percent.

Among the gainers, Tata Steel and Jindal Steel are leading with a gain of around 8 percent each. Shares of metal companies are gaining riding on positive Chinese economic data.

China's factory production increased 9.7 percent in July Y-o-Y, the National Bureau of Statistics said on Friday. China is the world's largest consumer of copper and aluminum.

On the downside is SBI (down 3 percent) on the back of dismal April-June qaurter. India's largest lender disappointed the street with the first quarter net profit falling higher-than-expected nearly 14 percent year-on-year to Rs 3,241 crore, dented by higher provisions against bad loans and muted growth in the net interest income, which grew just by 3.5 percent to Rs 11,512 crore in April-June quarter from Rs 11,119 crore.

However, the growth in net interest income was a little higher than analysts' forecast.

SBI net profit drops 14% to Rs 3,241 cr in Q1

Weighed down by bad loans, State Bank of India has reported a 14 per cent dip in its first quarter standalone net profit at Rs 3,241 crore against Rs 3,752 crore in the corresponding year ago period.

During the quarter, bad loans increased by Rs 9,702 crore to Rs 60,891 crore as of June 30, 2013.

SBI’s gross non-performing assets rose to 5.56 per cent of total advances (from 4.99 per cent a year ago).

Consolidated net profit declined 12 per cent to Rs 4,298 crore in April-June FY14 against Rs 4,874 crore in the first quarter of the previous fiscal.

At 1 p.m., SBI shares were trading at Rs 1,600.25 per share, down 3.68 per cent, on the BSE.

Punj Lloyd surges on winning project worth Rs 358 crore from Chennai Petroleum Corporation

Punj Lloyd is currently trading at Rs. 25.25, up by 0.90 points or 3.70% from its previous closing of Rs. 24.35 on the BSE.

The scrip opened at Rs. 24.50 and has touched a high and low of Rs. 25.60 and Rs. 23.90 respectively. So far 536675 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 64.10 on 09-Jan-2013 and a 52 week low of Rs. 22.15 on 01-Aug-2013.

Last one week high and low of the scrip stood at Rs. 25.60 and Rs. 22.35 respectively. The current market cap of the company is Rs. 841.86 crore.

The promoters holding in the company stood at 37.14% while Institutions and Non-Institutions held 22.74% and 40.12% respectively.

Punj Lloyd, a leading engineering, procurement and construction (EPC) conglomerate has been awarded a contract worth Rs 358 crores by Chennai Petroleum Corporation (CPCL) to build the Sulphur Block of Resid Upgradation Project at its Manall refinery near Chennal. Punj Lloyd's scope of work includes residual basic and detailed engineering, procurement, construction, installation, pre-commissioning, commissioning and project management for the sulphur block comprising 2 x 100 TPD Sulphur Recovery Unit including Tail Gas Treatment Unit, 60 m3/hr Sour Water Stripper and 250 TPH capacity Amine Regeneration Unit on a single point responsibility basis.

The project is expected to be commissioned in December 2015, With this contract, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs 21,226 crore, reflecting the total value of unexecuted order as on June 30, 2013 and the orders received after the day.