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Economy grows at 9.6 pc in FY ’07
Market crash forces promoters to prune
Maruti may hike prices
Decision on fuel price hike put off again
Govt Debt Sector |
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HDFC cuts lending rate by 0.25 pc
Tata Chemicals to buy US firm
Aviva Life Insurance
Sensex falls 110 points
TCS bags Rs 784-cr deal
Cycle manufacturers to hike rates
High VAT in Punjab, HP, Chandigarh; dairy owners prefer
LPG scarce as winter gets severe
Govt may allow PE in education, health
Videocon offers to invest 50,000 cr in W. Bengal
Corporate Results
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Economy grows at 9.6 pc in FY ’07
New Delhi, January 31 The earlier estimate had put the economic growth rate at 9.4 per cent last fiscal. According to the revised figures released by the Central Statistical Organisation (CSO) today, India's per capita income growth rate stood at 8.1 per cent last fiscal. CSO also revised upwards economic growth rate in 2005-06 to 9.4 per cent from the earlier 9 per cent. Commenting on the figures, Finance Minister P Chidambaram exuded optimism that the growth during the current fiscal would be close to 9 per cent. "My goal is to continue to maintain the same level of growth but at the same time, government reserves the right to make rapid adjustments depending upon evolving global economic situation," Chidambaram told reporters. The Indian economy has grown by over 8.5 per cent during the past four years. The economy expanded by 9.3 per cent in the first quarter and 8.9 per cent in the second quarter of this fiscal. Echoing Chidambaram's optimism, Crisil's principal economist D K Joshi said the economy is likely to grow at 9 per cent this fiscal. Economic think tank NCAER yesterday revised GDP growth projections for this fiscal to 9.1 per cent against its earlier forecast of 8.9 per cent. However, rising interest rates had adverse impact on industrial production growth, which nosedived to 5.3 per cent in November this year against a whopping 15.8 per cent a year ago. During the first eight months of this fiscal, the Index of Industrial Production slid to 9.2 per cent from 10.9 per cent during the corresponding period a year ago. In its recent monetary review, RBI belied expectations of interest rates cut by maintaining status quo on all signalling rates. However, some PSU banks have said interest rates could still be cut as there is enough liquidity in the system. Chidambaram today said, "We are not making policies and we are not taking administrative steps in a vacuum. We are doing so where there is heightened uncertainty and we are making rapid adjustments." "We are confident that if we keep firm hands on the wheel, the Indian economy will sail through turbulent waters. We are maintaining a balance between growth and inflation," he said, adding that inflation is still below 4 per cent and growth is well above 8 per cent. The improved growth in the GDP during 2006-07 has been achieved due to all-round improvement in mining, manufacturing and services sectors, which helped to offset the slower growth in agriculture sector. While agriculture sector grew by 3.8 per cent, down from 6.1 per cent, manufacturing sector recorded 12 per cent growth, which is substantially higher than 9 per cent growth recorded in the previous year. |
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Market crash forces promoters to prune IPO size
Mumbai, January 31 Promoters of several companies, who were hoping to cash in on the Bull Run to mobilise hundreds of crores of rupees, have been left disappointed by the downturn. Earlier this week, Wockhardt Hospitals reduced the price band of its Initial Public Offering from Rs 280 to Rs 310 per equity share to Rs 225 to Rs 260 per equity share. The issue, which was to open today, failed to do so at the company was awaiting the nod from the market regulator for the lower price band. Hours after Wockhardt Hospitals’ announcement, Emaar MGF Land Ltd, a joint venture between Indian and Middle East players, also announced a cut in the size of its IPO. Reports said Emaar would price its IPO between Rs 540 and Rs 630 per share as against the planned Rs 610-Rs 690 price band. In all 10.26 crore shares will be offered by the company, making it the second largest IPO after the Reliance Power issue this year. Emaar, too, has approached the market regulator and it is not clear if its IPO will open tomorrow as scheduled. The downturn in the market has already affected the Shriram EPC IPO, which According to information available from the stock exchanges not even 10 per cent of the shares allotted under the non-institutional investors and retail categories have been subscribed so far. However, the issue has received five times subscription from Qualified Institutional Buyers and may just sail through, say sources. On the other hand, the IPO of IRB Infrastructure, which opened today, has received a healthy response. About 43 per cent of the issue has already been subscribed though the response from retail investors has been considerably muted. Stock market operators feel that the IPOs may still sail through since refunds from Future Capital and Reliance Power IPOs will be completed in the next week. Refunds have begun today in the case of Future Capital and Reliance Power is expected to begin the process on Friday. Both IPOs have mobilised nearly Rs 25,000 crore since they were oversubscribed several times. “If there is no unpleasant surprise from the global markets then the funds may still flow into the secondary markets,” Anand Chowdhury, a broker said. |
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Maruti may hike prices
New Delhi, January 31 “This comes in the backdrop of increasing input costs which has been affecting its margin,” revealed an official source. Maruti Suzuki had released five new models last year, amid increased competition from domestic and foreign carmakers.
— UNI
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Decision on fuel price hike put off again
New Delhi, January 31 ''We have not taken any decision in today's GoM meet and have referred the matter to the Cabinet for a decision,'' petroleum minister Murli Deora said.
The cabinet is expected to meet on Monday or Tuesday to take a call on the
issue. Deora added that the finance minister P Chidambaram has been very co-operative on the
issue. However, a decision on duty restructuring has not been taken.
— UNI |
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Govt Debt Sector
Mumbai, January 31 “It has now been decided to further enhance the limit (for FIIs/sub-accounts cumulative investment in Government/Treasury Bills) to $ 3.2 billion,” SEBI said in a circular.
Earlier last year, SEBI had raised this limit to $ 2.6 billion dollars from $ 2 billion dollars. The market regulator has also decided to treat all investments by FIIs and their sub-accounts in units of debt-oriented mutual funds as corporate debt only. As such, FII investment in these units would have to prescribe to 1.5-billion-dollars ceiling, as is stipulated for corporate debt.
— PTI |
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HDFC cuts lending rate by 0.25 pc
Mumbai, January 31 The reduction in Retail Prime Lending Rates (RPLR) will become effective from February 1, 2008, and will benefit all existing floating rate customers over the period of next three months based on their respective reset dates, HDFC said in a release here today. For new home loan customers, the rate of interest will continue to be at 10.25 per cent under the Adjustable Rate Home Loan (ARHL), HDFC said. "We have been able to bring down our costs due to improved operational efficiency and good quality portfolio and have ensured that it translates into a benefit for the customer," HDFC's Joint Managing Director, Renu Sud Karnad, said in a statement. A buoyant economy, stable industrial growth and adequate liquidity in the banking system during the current fiscal has had a positive impact on the cost of funds, helping it to soften its lending rates, HDFC said. "The company has always maintained a pre-determined spread and believes in passing on the benefits to the end-users, it said. The rate-cut comes shortly after Reserve Bank hinted that there was a case for banks to cut the lending rates in its quarterly policy review. Public sector banks including UCO Bank had hinted at the possibility of a rate cut of up to half a per cent after the quarterly policy review by RBI. — PTI |
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Tata Chemicals to buy US firm for $1 billion
Mumbai, January 31 The company said it has entered into definitive agreements for acquiring GCIP for $ 1.005 billion (approx Rs 4,000 crore). GCIP is a leading producer of soda ash with a capacity of 2.5 million tonnes per annum with manufacturing facilities located at Wyoming, Tata Chemicals said in a filing to the Bombay Stock Exchange. The US chemical company supplies essential raw materials used in the process of manufacturing range of familiar everyday products, such as glass, soap, powdered detergent, paper, textiles, and even food. Tata Chemicals also said the transaction is subject to the receipt of stockholder and other regulatory approvals.
— PTI |
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Sensex falls 110 points
Mumbai, January 31 The Sensex, which had surged to 18,008.71 at early stage, tumbled to a low of 17,417.63 points before ending with a loss of 109.93 points at 17,648.71. Similarly, the National Stock Exchange index, Nifty, moved between 5,251.65 and 5,071.15 points before ending with a loss of 30.15 points at 5,137.45. The major fall in the market was driven by realty, banking, power and capital The realty index plunged the most by 2.73 per cent at 9,871.06, followed by banking index that fell by 2.13 per cent at 10,713.91, power index 2.13 per cent at 3,741.21 and capital goods index 1.43 per cent at 16,387.70. Midcap sector suffered a loss of 62.44 points to close at 7,766.62, while smallcap index fell by 22.44 points at 10,124.42. Asian indices ended mixed with Hang Seng falling by about 1.0 per cent and Nikkei gaining 1.85 per cent. European markets traded sharply lower in early trade. The trading volume was still low but relatively higher at Rs 5,184.80 crore from Rs 4,058.81 crore on Wednesday. RIL topped the list of highest traded securities with a turnover of Rs 304.02 crore followed by RNRL (Rs 289.04 crore), REL (Rs 236.22 cr), RPL (Rs 223.54 cr) and Essar Oil (Rs 211.09 cr). The broad-based BSE-100 index declined further by 69.13 points to 9,440.94 from previous close of 9,510.07. The BSE-200 index and the Dollex-200 were quoted lower at 2,230.39 and 942.67 at close compared to last close of 2,247.26 and 949.80 respectively. The BSE-500 Index dipped by 49.90 points to 7,160.03 from 7,209.93 and the Dollex-30 ended down at 3,678.30 from 3,701.21. DLF tumbled by 49.65 to 812.55, BHEL by 25.15 to 2064.10, L&T by 2.45 to 3680.35, SBI by 58.40 to 2162.25, ICICI Bank by 39.20 to 1145.65, ACC by 14.70 to 782.65, Grasim by 42.50 to2948.75, HDFC by 50.55 to 2843.50, Hindalco by 10.35 to 16575, ITC by 4.30 to 195.20, M&M by 21.70 to 669.35, NTPC by 3.80 to 197.90, Ranbaxy by 4.10 to 351.20, Reliance Com by 10.40 to 601.95, REL by 8.20 to 1984.10 and Satyam Computer by 389.20. RIL rose by 9.90 to 2479.50, ONGC by 19.90 to 988.40, Bajaj Auto by 86.85 to 2355.65, Bharti Airtel by 12.15 to 864.45, HDFC Bank by 36.20 to 1568.00, Maruti by 6.10 to 848.70, Tata Motors by 10.00 to 706.15, Tata Steel by 10.00 to 733.50, TCS by 9.60 to 875.25, Wipro by 1.25 to 413.35 and ACL by 1.30 to 119.60. — PTI |
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TCS bags Rs 784-cr deal
Mumbai, January 31 The order was bagged by Diligenta, a UK-based financial services authority, regulated subsidiary of Tata Consultancy Services Ltd (TCS). The services are expected to commence in May this year and are estimated to be worth £ 100 million (about Rs 784 crore) over the life of the contract, TCS said. Diligenta has been working with Sun Life Financial of Canada (SLF UK) as preferred supplier since October 2007 and would continue to run the operation in its head office at Basingstoke. “The deal with SLF UK, underlines the strength of TCS’s Diligenta strategy, launched in 2006,” TCS UK and Ireland Vice-President and Country Head A S Lakshminarayanan said.
— PTI |
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Cycle manufacturers to hike rates from today
Ludhiana, January 31 Big manufacturers said they had no option but to announce hike of Rs 35-70 per bicycle for various models. The steel rates, including hot rolled coils and rounds, have moved upwards Rs 4,000-5,000 per metric tonne in the last three-four months. The decision, said manufacturers, would definitely have a bearing on demand but a further increase too may happen soon. The standard bicycle, which costs around Rs 1,750, would now be available for around Rs 1,800. “Steel is the major raw material used in our industry and it has recorded a significant rise in prices. We have no other choice than to hike rates for our various models. A minimum increase of Rs 40 is being done from tomorrow onwards,” said Onkar Singh Pahwa, managing director of Avon Cycles. Hero Cycles too would effect the hike from tomorrow. “To meet costs we will have to increase prices. No doubt it would affect the demand as public reacts sharply in the initial phase of the hike but we cannot really help it,” said S.K. Rai, managing director, Hero Cycles. Entrepreneurs said the quantum of the rise is lower in comparison to the increase in steel and rubber rates. “The increase is lower than what it should be. A minimum rise of Rs 75 would help producers to maintain previous margins. Not only steel, rubber rates too have moved upward,” said Charanjit Singh Vishwakarma of Vishwakarma Industries, who is also the president of United Cycle and Parts Manufacturers Association. Small and medium entrepreneurs said they would follow suit but after the initial reaction of the upward price movement was over. However, industrialists also said that chances of a further hike couldn’t be ruled out. “A further rise in steel rates would lead to another increase,” said Rai. While demand across all categories is likely to be hit, industrialists said only regulatory measures by the government for steel rates could help. |
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High VAT in Punjab, HP, Chandigarh; dairy owners prefer Haryana, UP, Rajasthan
Chandigarh, January 31 All private dairy units now prefer to sell their ghee in the neighbouring states of Haryana, Uttar Pradesh and Rajasthan. While there is a VAT of 12.5 per cent on ghee in Punjab, the neighbouring states of Haryana, Uttar Pradesh and Rajasthan have brought down VAT to 4 per cent. As a result, most of the private dairy players are either selling their produce in these states, or allegedly showing their sales in Haryana, in order to pay less VAT. This fact has now been proven after the VAT collections from the dairy sector were analysed by the Excise and Taxation department, Punjab. Of the Rs 10 crore received as VAT collections from sale of ghee, Rs 7.50 crore had been received from the state milk cooperative - Milkfed, while the remaining money was received from the dozen-odd private dairy units in the state. Sources in the dairy sector allege that many of the private dairy units are working on the sly by showing their sales in Haryana, while the sales have actually been affected in Punjab. Ghee producers in the state, requesting anonymity, say that this high tax on the organised dairy sector is causing losses not just to them, but also to the state exchequer. “If VAT on ghee sold in Punjab is made at par with the VAT imposition in the neighbouring states, both sides stand to gain,” said a private dairy unit owner. He said that they would sell all their produce in Punjab and Chandigarh, and the VAT collections from ghee would improve. The organised dairy sector, including the state cooperative, Milkfed, has now taken up the matter of reducing the VAT on ghee and sweets, with the Punjab government. They have also pleaded that while there is no tax on the unorganised dairy sector, the government should promote the organised dairy sector, which provides hygienic milk products. “Many dairy units have been contemplating going in for commercial production of indigenous milk-based sweets. But because of high VAT on sweets manufactured by dairy units, without any tax imposed on sweet meat shops, nobody is taking the lead,” informed a senior functionary in Milkfed. |
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LPG scarce as winter gets severe
New Delhi, January 31 The reason being that the people are opting for LPG-operated equipment instead of power-backed equipment. Expensive and erratic power supplies have brought LPG-fired geysers, heaters and inverters in the market thus creating a huge demand for LPG cylinders this winter. A gas cylinder in gray market is costing between Rs 600-700. The shortage is two-fold -from the consumers’ side and the supply side i.e. the oil companies. “There is a lack of initiative for companies like Indian Oil, Hindustan Petroleum and Bharat Petroleum, to produce more gas cylinders as there is massive loss of revenue that each company is facing in view of the crude price rise in the international market”, said an oil ministry official. On each gas cylinder, which costs the consumer Rs 296 (in Delhi), the oil company loses about Rs 200-300 per cylinder. Delay in decision-making on a critical issue of oil prices has lead to the oil companies diverting their production towards petrol and diesel. The companies are losing even on petrol and diesel but not as much as they are losing on LPG. “The consumer has to suffer either ways whether it is shortage of cylinders due to increased demand or rise of oil prices leading to expensive LPG,” says Chandra Prakash, president, LPG Dealers Association. “Shortage of power supplies in the northern region of Delhi and Haryana is forcing people to opt for gas-powered geysers as they are in supply and are cost effective as compared top power-operated geysers, “ he adds. “Anticipating a price rise, consumers have ordered for extra cylinders, thus creating a situation of hoarding,” Prakash said. In the rural and semi -urban areas, LPG is in huge demand. There is also an increase in demand due to the marriage season. Oil ministry officials concede that there is an increased demand but not a definite guideline on bulk supplies for such occasions adding to increased pressure on the dealers. In 2005, the oil ministry, along with the oil companies, had arrived at a formula determining quota for allocating gas cylinders that each LPG dealer would get in a month. However, this quota was only in principal. |
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Govt may allow PE in education, health
New Delhi, January 31 “Allowing PEs’ entry into education and health has opened up largely and further reforms on private foreign equity entry into education and health are on lines of government thinking” said Pawan Kumar Bansal, minister of state for finance, at the Assocham-organised function on ‘PE: Exploring opportunities and adding value’ here. “Currently, PEs investment is on large scale in sectors such as IT, real estate, banking & finance, but it needs to be multiplied in infrastructure sector, he said. Bansal said that despite compulsions of UPA government, the ministry of finance has been pushing to hike FDI’s limit into insurance sector from 26 per cent to 49 per cent and hoped that it would succeed. PE has emerged as an attractive midpoint along the financial spectrum for Indian companies seeking to raise capital. |
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Videocon offers to invest 50,000 cr in W. Bengal
Kolkata, January 31 Videocon has already started its TV set manufacturing unit at Salt Lake where the company would be soon opening several other units for making various electronic goods like. Videocon chairman Venugopal Dhoot, who met Chief Minister Buddhadeb Bhattacharjee and industries minister Nirupam Sen yesterday, told mediapersons that he was ready to invest in Bengal provided required lands and other infrastructural facilities were made available to them. He was also ready to personally negotiate with the landowners instead of requesting the government for acquiring land for the Videocon’s projects. Dhoot said he was also keen to set up a knowledge park at Siliguri. He said they had located some vacant land near Kanchrapara, belonging to the defence department. If that land was made available to them, they could build an airport there for carrying of passengers and cargo. |
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Corporate Results
London/Mumbai, January 31 The group earned revenues of £9.2 billion in the quarter, it said in a filing to the London Stock Exchange. In India, the group recorded a 56 per cent growth in revenues — highest among emerging markets — for the quarter ended December, following the acquisition of a majority stake in the country's mobile phone operator Hutchison Essar last year. IOC net up 17 pc
Indian Oil Corp (IOC) today reported a 16.7 per cent rise in net profit in the third quarter ended December 31, 2007 on higher refinery margins. Net profit in October-December was Rs 2,091 crore as compared to a profit of Rs 1,792 crore during the same quarter in the previous year, IOC chairman S Behuria told reporters here. For the nine months ended December 31, 2007, IOC net profit rose 23 per cent to Rs 7,377 crore. Behuria said IOC's gross turnover for the third quarter moved up by 13 per cent to Rs 64,726 crore from Rs 57,365
crore. For nine months ended December 2007, its gross turnover moved up by 7 per cent to Rs 1,77,223 crore from Rs 1,65,613 crore in the corresponding period of the previous year. Tata Steel
Tata Steel Ltd has posted a marginal rise in net profit at Rs 1,068.58 crore for the third quarter ended December 31, 2007, as compared to Rs 1,063.75 crore in the same period a year ago. The total income grew 10.3 per cent at Rs 5,040.95 crore for the quarter under review as against Rs 4,568.20 crore in the corresponding period last year. RCom profit up
Anil Ambani-led Reliance Communications (RCom) has posted a 48.50 per cent increase in profit after tax at Rs 1,372.83 crore for the quarter ended December 31, 2007, against Rs 924.45 crore in the year-ago period. The total income of the group rose 29.80 per cent to Rs 4,874.20 crore for the quarter under review, compared to Rs 3,755.30 crore in the corresponding period last fiscal, the company informed the Bombay Stock Exchange. However, total income of the RCom increased to Rs 3,410.82 crore for the reviewed quarter from Rs 3,044.49 crore in the same quarter in 2006, up 12 per cent. Parsvnath Developers
Realty major Parsvnath Developers Ltd has reported more than two-fold jump in the consolidated net profit at Rs 112.57 crore for the quarter ended December 31, 2007 as against Rs 53.87 crore in the same period a year ago. The consolidated revenue of the company increased by 62 per cent at Rs 497.09 crore for Q3FY08 as compared to Rs 306.39 crore in the corresponding quarter last fiscal, a company statement said. Unitech
Real estate firm Unitech has posted 39 per cent increase in consolidated net profit at Rs 525.78 crore for the quarter ended December 31, 2007, against Rs 377.84 crore for the corresponding period in the previous fiscal. Total income of the group during the quarter under review was Rs 1,165.11 crore, up 19 per cent from the corresponding period last year, the company said in a release. For the nine-month period ended December 31, 2007, the consolidated total income of the group stood at Rs 3,129.04 crore and consolidated profit after tax was Rs 1,301.58 crore. Omaxe profit
Real estate developer Omaxe Ltd has posted a net profit of Rs 154.16 crore and a total revenue of Rs 678.22 crore for the third quarter ended December 31, 2007. For the same period, the standalone profit stood at Rs 123.09 crore and total revenue at Rs 576.84 crore, it informed the Bombay Stock Exchange. ADLABS
ADLABS has posted a healthy Rs 22 crore PAT for the quarter ended on December 31, with revenues growing by 23 per cent to Rs 129.5 crores and EBITA standing at Rs 51 crores, a growth of 73 per cent against the corresponding period last fiscal. Growth in revenues was registered in all divisions with cinema raking in Rs 42 crores, up by 75 percent, motion picture processing pulling by Rs 24 crores (up 26 percent) and content business earning by Rs 47 crores (up 10 percent), said a release. Ceat Tyres
Tyre maker Ceat has posted a net profit of Rs 19.22 crore for its quarter ended as on December 31, a jump of about 63 per cent compared to the corresponding period of last fiscal of Rs 11.78 crores. Gross sale of the company for the quarter stood at Rs 630 crore, up 5 per cent against Rs 600 crore for last fiscal's corresponding period. Tata Motors net dips
Tata Motors today said its net profit has slipped 2.75 per cent to Rs 499.05 crore for the third quarter ended December 31, 2007, as compared to Rs 513.17 crore in the corresponding quarter last year. Its total income has increased 6.27 per cent to Rs 7,343.64 crore for the quarter ended December 31, 2007 from Rs 6,910.07 crore in the same quarter last year. BPCL net slips
Bharat Petroleum Corporation Ltd (BPCL) today said it has registered a 4.01 per cent decline in its net profit to Rs 291.3 crore for the quarter ended December 31, 2007 as compared to Rs 303.5 crore in the corresponding period last year. However, its total income increased 19.5 per cent to Rs 29,118.8 crore for the quarter ended December 31, 2007 from Rs 24,354.3 crore for the quarter ended December 31, 2006. ACC
India's first mega cement maker, ACC Limited, has posted a net profit increase of 16.78 per cent to Rs 1,438.59 crore for the third quater ended December 31, 2007, as compared to Rs 1,231.84 crore for the corresponding period during the previous fiscal. The total income also witnessed a hike of 20.03 per cent to Rs 7,135.97 crore for fiscal year 2008 as against Rs 5,945.13 crore for fiscal year 2007. Hero Honda
Riding on lesser spending on promotions and benefit from softening commodities prices, country's largest two-wheeler maker Hero Honda Motors today reported a 31 per cent jump in net profit for the third quarter ended December 2007. The company said the net profit during the quarter stood at Rs 275.01 crore against Rs 209.18 crore in the corresponding period a year ago. Total income during the period under review stood at Rs 2,795.17 crore as compared to Rs 2,699.93 crore in the year-ago period. Maruti net up 24 pc
Maruti Suzuki India has reported a 24.1 per cent jump in net profit in the third quarter ended December 2007, at Rs 467 crore as compared to Rs 376.41 crore in the corresponding period a year ago. Net sales during the quarter stood at Rs 4,654 crore as against Rs 3,644.19 crore, up by 27.71 per cent. SAIL net up
Steel PSU SAIL has registered a record third quarter profit of Rs 1,935 crore, against Rs 1,471 crore in the corresponding period last year, a 32 per cent increase. The sales turnover during the quarter rose by 11.4 per cent to Rs 10,756 crore. The company netted its highest revenue for the first nine-month at Rs 30,026 crore. Suzlon Energy
Suzlon Energy has posted a consolidated net profit of Rs 151.69 crore for the third quarter ended December 31, against Rs 174.39 crore in the corresponding period last year. The consolidated income stood at Rs 3,242.29 crore for the quarter. In the third quarter last year, it was Rs 1,939.29 crore, the company said.
— Agencies |
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