Re: {LONGTERMINVESTORS} Market buzz, Whispers, Rumours, Heard on the street...Thread.
RAJESH DESAI
Singapore's Mfg PMI contracted at a faster rate in Jan from Dec, but electronics flipped into a mild expansion from contraction.
China Mfg PMI accelerated mildly, as did new orders. But new export data and imports contracted at a faster pace. Input prices expanded from contraction, showing the stickiness of inflation, and that policy will continue to lean toward prudent. Although China will avoid hard landing, its re-balancing toward domestic demand is having a restrained positive impulse on the rest of the world. Taiwan and S-Korea pace of mfg contractions eased.
EZ Mfg PMI pace of contraction eased further with Germany and Austria expanding, rest contracting. The easing of contraction, new orders and new export orders included, has got the market excited that recession might be avoided. 1q12 may see stabilization, but the New Fiscal Compact, which will kick in in March, will see large scale fiscal austerity. EZ recession for 2012 still in our baseline.
US Mfg PMI accelerated a point from 53.1 to 54.1, a decent showing. New orders and exports orders also accelerated. Customer's inventory continues its messy trend higher, which is actually a bearish signal. Overall, consistent with our 1.5% growth outlook for the year.
We're starting to think perhaps Euro leaders are getting comfortable with the idea of a Greek default. The New Fiscal Compact, will entail fiscal discipline enshrined in national law - this in Mario Draghi's own words is a step toward fiscal union. We have argued before that fiscal union is a necessary condition for frontdoor QE - yes, the big bazooka. If the bazooka is being prepped, then Italy and Spain could be ringfenced from contagion stemming from a Greek default.
Following the cancellation of licences by the Supreme Court in 2G Telecom case, Reliance Communications issued a statement that it was granted licences before 2011and they are not affected by the judgment.--On Thu, Feb 2, 2012 at 12:20 PM, RAJESH DESAI <stock...@gmail.com> wrote:
FIIs are buying Exide, Aban offshore, Castrol, Fortis health aggressively in the last few days.
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CA. Rajesh Desai
CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
In China, officials indicated that they
would help the plight of small business by urging banks to be more
leniant in lending them credit. At the same time, banks will limit
dividend payouts to shore up capital. The announcment is a positive for
China stocks as SMEs starved of credit has been a major hard landing
concern.
The Eurozone takes another step toward
fiscal union. Lead EZ finance minister Jean-Claude Junker says, “We have
an internal market, we have a common currency, but we don’t have a
centralized economic authority,". The statement was directed at EZ's
structural growth problem.
US unemployment claims fell.
Underlying short term market positives are: (1) the rate of contractions in the Eurozone and Asia have eased somewhat, (2) unlimited 3yr refinancing operations by the ECB has successfully resulted in backdoor QE of Eurozone sovereign debt, and (3) Fed anchors low rate expectations till late 2014 and considers QE3.
The rupee rose early in anticipation of dollar inflows and traders said the gains would be tempered before the U.S. jobs data, which will offer clues on risk sentiment.
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CA. Rajesh Desai
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RAJESH DESAI
Shreyas Shipping & Logistics has decided to segregate shipping and logistics business.
CA. Rajesh Desai
RAJESH DESAI
Manappuram Finance has plunged nearly 19% to Rs 45.70 after the Reserve Bank of India (RBI) banned the company from taking public deposits
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
Greek Leaders Agree on a Rescue Framework
Greek Prime Minister Lucas Papademos secured a general agreement on budget-cutting measures demanded by international creditors amid continued concern that political leaders may object to some of the points needed for the 130 billion-euro ($171 billion) rescue package.
Leaders of the three political parties supporting Papademos’s interim government agreed with him in a five-hour meeting yesterday to make additional reductions this year equal to 1.5 percent of gross domestic product, according to an e- mailed statement from the premier’s office in Athens. The four men also agreed on a framework for bank recapitalizations, ensuring the viability of auxiliary pension funds and for measures to reduce wage and non-wage costs to boost competitiveness.
The accord marked a step forward in a series of tense negotiations inAthens over the weekend. With the country’s stability at stake, Papademos is racing to clinch agreement on a plan that’s been in the works since July, with talks between international monitors and Greek officials running at the same time as discussions among the prime minister’s coalition members and Greece’s government and its private creditors.
Papademos will meet with the three party leaders today to hammer out the details of the measures after imposing an 11 a.m. deadline for proposals. Antonis Samaras, the head of the second- biggest party,New Democracy, indicated he would oppose some of the measures which the so-called troika of international creditors have put forward.
Samaras’s Concerns
“They are asking us for greater recession, which the country can’t take,” Samaras said as he left the meeting with Papademos. “I will fight to avoid that.”
Greece’s efforts to win a second bailout from the so-called troika -- the European Commission, the European Central Bank and the International Monetary Fund -- have hung in the balance over the past three days as negotiations in Athens failed to clinch an agreement. Greek Finance Minister Evangelos Venizelos said on Feb. 4 the talks were “on razor’s edge.”
Facing a 14.5 billion-euro bond payment on March 20 and general elections as soon as April, Papademos must heed international demands for greater austerity to complete the talks on a second aid package in time. Open questions involve how much more aid Greece needs, how much more austerity is required, and how to involve the European Central Bank in the private-sector creditor debt swap.
Next Election
Guarantees from Greek political leaders such as Samaras, who leads in opinion polls, are key to securing the funds from the EU and IMF. International lenders want assurances that whoever wins the next election, which could be held in April, will stick to pledges made now to receive financing.
George Papandreou, the former prime minister who still leads the Pasok socialist party, the biggest in the Greek parliament, met with party members after the meeting to discuss the party’s response.
In a letter sent separately to Papademos, he proposed that Papademos’s mandate be extended to boost confidence among lenders the pledges will be implemented. That is an option likely to be opposed by Samaras, who has called for elections as soon as the new financing is agreed.
Agreement on a new plan, which includes a writedown of Greek debt held by private creditors, has been held up by insistence on the part of the EU and IMF on structural reforms that will underpin a return to competitiveness for the Greek economy as well as new fiscal measures for this year.
Rescue Blueprint
The rescue blueprint includes a loss of more than 70 percent for bondholders in a voluntary debt exchange and loans that will probably exceed the 130 billion euros now on the table. A formal offer for the debt swap must be made by Feb. 13 to allow all procedures to be completed before the March 20 bond comes due.
“One thing is clear: the Greek drama continues to unfold,” Joachim Fels, chief economist at Morgan Stanley wrote in a note yesterday. “A really, really bad scenario for the euro area -- a Greek default and departure from the euro area -- simply cannot be excluded.”
Deutsche Bank AG Chief Executive Officer Josef Ackermann said on Feb. 4 a collapse of Greece’s economy would open a “Pandora’s box” that would kill a euro-area recovery.
Lagged Behind
Greece has lagged behind budget targets set when it won an initial, taxpayer-funded rescue of 110 billion euros in May 2010, prompting euro-area threats to cut off aid and hastening a German push to make bondholders contribute. The country’s economy shrank 6 percent last year, according to the most recent IMF estimates, the budget deficit is still close to 10 percent of GDP and unemployment is about 18 percent.
Even after a second bailout, Greece may be saddled with too much debt, too little growth and too large a budget hole to do without even more money, which euro nations led by Germany are increasingly reluctant to offer.
The troika wants the country to detail over 4 billion euros of measures to meet targets for 2011 and 2012 because wage cuts will deepen the recession and cause a shortfall this year, one government official told reporters in Athens.
The troika argues that cutting private-sector holiday allowances is among reforms necessary to boost competitiveness in the country. Those opposed say the cuts would deepen the country’s recession, now in its fifth year.
Euro Fell
The euro fell against the yen last week, dropping from a one-month high, as the unresolved Greek situation added to concern. The yield on Germany’s benchmark 10-year bond rose 8 basis points to 1.93 percent, while the yield on Greek 10-year bonds fell 18 basis points to 34.19 percent.
The ECB is considering using its bond holdings to bolster Greece’s next rescue program and support efforts to contain the sovereign debt crisis, three euro-region officials said. The ECB has purchased 219 billion euros of debt-strapped nations’ bonds since 2010 and between 36 billion euros and 55 billion euros are invested in Greek sovereign debt, according to estimates by Barclays Capital and UBS AG.
Papademos met yesterday with the lead negotiators on the debt accord with Greece, Charles Dallara, managing director of the International Institute of Finance, and Jean Lemierre, a senior adviser to the chairman of BNP Paribas SA. The debt swap, Venizelos said on Feb. 4 “is now the easiest part of the process.”
Creditors are prepared to accept an average coupon of as low as 3.6 percent on new 30-year bonds in the exchange, said a person familiar with the talks, who declined to be identified because a final deal hasn’t been struck yet.
To contact the reporters on this story: Natalie Weeks in Athens at nwe...@bloomberg.net; Maria Petrakis in Athens at mpet...@bloomberg.net; Marcus Bensasson in Athens atmbens...@bloomberg.net
To contact the editors responsible for this story: James Hertling at jher...@bloomberg.net; Stephen Foxwell at sfox...@bloomberg.net
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CA. Rajesh Desai
RAJESH DESAI
Farm growth seen at 2.5 per cent vs 7 per cent a year ago.
FY 12 mining growth seen at -2.2 per cent vs 5 per cent a year ago.
Construction sector growth seen at 4.8 per cent vs 8 per cent a year ago.
FY12 manufacturing sector growth seen at 3.9 per cent vs 7.6 per cent a year ago.
Zydus Wellness slipped 5.7% after net profit declined 4.70% to Rs 18.64 crore on 57.94% decline in net sales to Rs 38.17 crore in Q3 December 2011 over Q3 December 2010.--On Tue, Feb 7, 2012 at 10:34 AM, Rajesh Gupta <rajeshm...@gmail.com> wrote:
just create a new mail a/c at gmail.com to avoid bulk mail in ramesh personal a/clog in to your new account and send a blank email @ address belowlongterminvestorsresea...@googlegroups.com
and enjoy the mailsRajesh GuptaOn Mon, Feb 6, 2012 at 12:05 PM, kulpreet marwah <kulpree...@gmail.com> wrote:
Sirmy friend wants to join the grouppl tell him how tohis e mail id ramesh...@gmail.com--
On Mon, Feb 6, 2012 at 12:00 PM, RAJESH DESAI <stock...@gmail.com> wrote:
Jaypee Infratech reported net profit of Rs 392.07 crore for quarter ended December 2011 as compared to Rs 378.51 crore in the same period a year ago. Net sales were at Rs 902.68 crore as against Rs 755.38 crore in the corresponding quarter last fiscal.
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CA. Rajesh Desai
RegardsCol KS Marwah,SM
CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
RBS has downgraded Adani Power to a sell and cut its target to Rs 68. The company's third quarter earnings were sharply lower than forecast, led by a sharp rise in fuel cost. Non-payment of MAT tax and alternative coal block allocations remain the key upside risks. Risk-reward remains unfavourable at current market price.
Bank of America Merrill Lynch reiterates an underperform on Spicejet with a target of Rs 18. Despite the third quarter being seasonally the strongest, the airline posted yet another loss. They continue to expect losses for both FY12 and FY13 and expect break-even only in FY14.MOIL fell after net profit fell 18.8% to Rs 101.50 crore on 5.4% decline in net sales to Rs 239.54 crore in Q3 December 2011 over Q3 December 2010.TCS rose after the company said that it signed a multi-year, multi-million euro contract with Europcar, the car rental leader in Europe.--
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
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RAJESH DESAI
India Infoline has shot up by 30 percent after posting outstanding results in its December quarter. The company posted a 62 percent quarter on quarter growth in net profit to Rs 35.8 crore.
Heavy short selling seen in HUL
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Timken India lost 3.6% after net profit fell 12.5% to Rs 6.66 crore on 39% growth in net sales to Rs 166.43 crore in Q4 December 2011 over Q4 December 2010.
Timken India has changed its accounting year to April-March period from January-December period. Hence the current financial statements will be for 15 months period ending 31 March 2012.
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CA. Rajesh Desai
RAJESH DESAI
Maharashtra Seamless reported net profit of Rs 81.01 crore for quarter ended December 2011 as compared to Rs 75.69 crore in the same period a year ago. Net sales climbed to Rs 617.47 crore for December 2011 quarter as against Rs 405.78 crore in the corresponding quarter last fiscal.
Texmaco reported net profit of Rs 2.63 crore for quarter ended December 2011 as compared to Rs 3.92 crore in the same period a year ago. Total income was at Rs 4.10 crore in December 2011 quarter as against Rs 6.09 crore in the corresponding quarter last fiscal.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Japan’s 2011 current account surplus dipped by 44% YoY. This is the lowest level since 1996, and is a result of a trade deficit due to weak exports and an increase in fuel imports after the nuclear crisis.
According to reports, Tata Consultancy Services (TCS) is likely to announce a JV with Mitsubishi today
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CA. Rajesh Desai
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RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Sorry... Greece is still front and centre. Markets are very blase about it though as stocks headed higher. The country is fighting on two fronts: (1) structural reform (for growth, e.g. nominal wage cuts) and budget cuts proposals (for fiscal stability) otherwise they will not receive their next tranche of bailout money, and (2) stalled talks on the bond exchange. We've been through this before. A default within the Euro should not be catastrophic but a default followed by Euro exit mindboggling to say the least. Former preferred so we can put this behind us.
Growth expectations throughout Asia have been revised lower, latest being Indian officials forecasting less than 7% and Chinese officials warning of Industrial Production at 11% growth for the year. Indonesia remains bouyant with expectations of infrastructure development and resilient domestic demand.
Near term underlying market positives for equities are: (1) the rate of contractions in the Eurozone and Asia have eased somewhat, while the US has outperformed, (2) unlimited 3yr refinancing operations by the ECB has successfully resulted in backdoor QE of Eurozone sovereign debt, and (3) Fed anchors low rate expectations till late 2014 and considers QE3. Near term downside risks are: (1) expectations of economic data are running high, but we still face massive fiscal tightening in the EZ and progressively stronger tightening in the US this year, (2) Greece might still default.
Empowered Group of Ministers (EGoM)has allowed export of non-basmati rice up to four million tonnes and reduction of minimum export price (MEP) of basmati rice to USD 700 a tonne from USD 900 a tonne.
Positive NEWS for KRBL
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
On a consolidated basis, net profit of Tech Mahindra rose 14.80% to Rs 276.02 crore on 8.37% increase in revenues to Rs 1444.87 crore in Q3 December 2011 over Q2 September 2011. Operating profit (earnings before interest, taxes, depreciation and amortization) rose 14.7% to Rs 234 crore in Q3 December 2011 over Q2 September 2011.
Total headcount stood at 42,746. The company said its debt was Rs 1376 crore as of 31 December 2011. Cash and cash equivalent stood at Rs 321 crore on balance sheet as of 31 December 2011
Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra said, "We have had a satisfactory quarter, with growth in both revenue and margins. This is a result of our investments in growth markets, and in emerging technologies. We continue to focus on delivering enhanced value to our customers in an uncertain economic environment."
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CA. Rajesh Desai
RAJESH DESAI
Gammon Infrastructure Projects spurted 11% after the company bagged a Rs 1684 crore project from NHAI for widening Vijaywada-Gundugolanu section of National Highway in Andhra Pradesh.
Rajesh Mascarenhas,ET Bureau
Stocks with high foreign holding like HDFC Bank, Infosys, ITC score over peers
Shares of companies in which foreign institutional holdings exceed that of promoters have performed better than the broader market since 2008. This trend was evident in an ET study of leading companies that showed foreign investors are more comfortable betting on firms that are professionally managed than those run by promoters.
An index of top 25 stocks with dominant foreign investor holdings such as HDFC Bank, Infosys, ITC and L&T returned almost 26% since 2008 compared to the 13% drop in the benchmark Sensex.
"This is a clear message to corporate India that FIIs are willing to pay premium valuations for quality and solid corporate governance," said Gautam Trivedi, managing director & equities head-India, Religare Capital Markets. "For instance, it is very difficult to convince an FII to sell HDFC Bank, which is considered to be a 'crown jewel'," he said.
This perception led to sovereign wealth funds of Abu Dhabi and Singapore buying HDFC Bank shares in October-December, when the stock fell almost 9%, analysts said.
While stocks such as Infosys and L&T have not been in favour among investors as much as HDFC Bank, of late, brokers said foreign institutions prefer buying these shares over their peers in the software and infrastructure space.
"FIIs take big stake in companies with better corporate governance practices," said Sonam Udasi, head of research at IDBI Capital Markets. "As they invest in clean companies as part of a long-term growth strategy, these companies bound to outperform the broader market," he said.
Even smaller companies with higher foreign institutional holdings than a promoter group such as YES Bank, Karur Vyasya Bank, Strides Arcolab, IndusInd Bank, Hexaware Technologies gained between 40% and 130% since 2008. LIC Housing Finance surged 253% since January 2008.
"If a company's promoters allow FII holding to increase beyond their holding, it could be an indication of a professionally-managed company," said Sandeep Singal, co-head-institutional equity at Emkay Global. "Consequently, other quality parameters of the company like debt may also be well-managed. If an FII is also on the board of a company, it would be an added benefit," he said.
In 2012, nearly 80% or 32 out of 40 such stocks have outperformed the broader market. The leading performers among them are IVRCL, NCC, India Infoline, United Spirits and IDFC, which have surged over 50% this year so far. But many of these stocks may not have outperformed due to higher foreign institutional holdings. Most of them were laggards in 2011.
But analysts said putting money in companies with higher foreign institutional shareholding may not be the best investment strategy.
"It is not necessary that companies with FII holding lesser than promoter holding have underperformed. If that was the case, wouldn't every promoter want to increase FII holding beyond their holding," said Singal. A section of the market feels appreciation in these stocks would be limited in a bull market as they are overowned.
"Other than a good management and fundamentals, lower institutional holding is a key aspect for many investors while selecting a stock. Such stocks may not find favour among these investors in a bull run," said the chief investment officer of a bank-owned mutual fund.
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CA. Rajesh Desai
RAJESH DESAI
Results.........Net profit of Power Grid Corporation of India rose 36.88% to Rs 809.23 crore in the quarter ended December 2011 as against Rs 591.19 crore during the previous quarter ended December 2010. Sales rose 20.20% to Rs 2466.62 crore in the quarter ended December 2011 as against Rs 2052.12 crore during the previous quarter ended December 2010.
Net profit of Brigade Enterprises declined 82.07% to Rs 10.42 crore in the quarter ended December 2011 as against Rs 58.12 crore during the previous quarter ended December 2010. Sales declined 16.00% to Rs 114.21 crore in the quarter ended December 2011 as against Rs 135.97 crore during the previous quarter ended December 2010.
Net profit of Shriram EPC declined 22.50% to Rs 6.82 crore in the quarter ended December 2011 as against Rs 8.80 crore during the previous quarter ended December 2010. Sales declined 5.47% to Rs 261.97 crore in the quarter ended December 2011 as against Rs 277.12 crore during the previous quarter ended December 2010.
Net profit of Essar Shipping declined 23.88% to Rs 17.79 crore in the quarter ended December 2011 as against Rs 23.37 crore during the previous quarter ended December 2010. Sales rose 16.15% to Rs 288.27 crore in the quarter ended December 2011 as against Rs 248.19 crore during the previous quarter ended December 2010.
Net profit of Jayaswal Neco Industries declined 67.76% to Rs 9.47 crore in the quarter ended December 2011 as against Rs 29.37 crore during the previous quarter ended December 2010. Sales rose 26.33% to Rs 658.56 crore in the quarter ended December 2011 as against Rs 521.31 crore during the previous quarter ended December 2010.
JSW ISPAT Steel reported net loss of Rs 308.57 crore in the quarter ended December 2011 as against net loss of Rs 409.31 crore during the previous quarter ended December 2010. Sales rose 177.48% to Rs 2666.47 crore in the quarter ended December 2011 as against Rs 960.95 crore during the previous quarter ended December 2010.
Net profit of JMC Projects India rose 18.91% to Rs 11.82 crore in the quarter ended December 2011 as against Rs 9.94 crore during the previous quarter ended December 2010. Sales rose 56.43% to Rs 568.81 crore in the quarter ended December 2011 as against Rs 363.61 crore during the previous quarter ended December 2010.
Net profit of JBF Industries declined 5.54% to Rs 28.16 crore in the quarter ended December 2011 as against Rs 29.81 crore during the previous quarter ended December 2010. Sales rose 31.59% to Rs 1110.74 crore in the quarter ended December 2011 as against Rs 844.09 crore during the previous quarter ended December 2010.
Net profit of Goldiam International rose 253.70% to Rs 1.91 crore in the quarter ended December 2011 as against Rs 0.54 crore during the previous quarter ended December 2010. Sales rose 12.95% to Rs 29.48 crore in the quarter ended December 2011 as against Rs 26.10 crore during the previous quarter ended December 2010.
K S Oils reported net loss of Rs 117.18 crore in the quarter ended December 2011 as against net profit of Rs 53.49 crore during the previous quarter ended December 2010. Sales declined 47.47% to Rs 701.44 crore in the quarter ended December 2011 as against Rs 1335.31 crore during the previous quarter ended December 2010.
Net profit of DIC India rose 73.12% to Rs 8.76 crore in the quarter ended December 2011 as against Rs 5.06 crore during the previous quarter ended December 2010. Sales rose 27.62% to Rs 186.11 crore in the quarter ended December 2011 as against Rs 145.83 crore during the previous quarter ended December 2010.
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Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
With India still overwhelmingly dependent on foreign military hardware and software, the government is all set to clear a new set of guidelines for creation of joint ventures between defence PSUs and private companies as a step towards bolstering the domestic defence industrial base (DIB).
Defence ministry sources say the new policy on JVs will be taken up for approval by theUnion Cabinet on Thursday, a few months after the government had put "on hold" the joint venture between defence shipyard Mazagon Dock Ltd (MDL) and private shipyard Pipavav after receiving a barrage of complaints by other rival private shipyards.
"The new policy will boost private sector entrance in the defence arena. It is also needed since there over 40 offset contracts (with global armament firms who have bagged or about to clinch Indian defence deals) worth over Rs 50,000 crore being negotiated," said a source.
"Then, around $20 billion MMRCA (medium multi-role combat aircraft) project will itself have 50% offsets...the potential is huge," he added.
The announcement of the MDL-Pipavav JV had led to a lot of heartburn among other private shipyards like L&T and ABG, which had complained of arbitrary decision-making by MDL in selecting Pipavav.
With the Navy having 46 warships on order, and several more in the pipeline, private players are jostling with each other to grab both Indian as well as foreign warship-building contracts.
MDL is the largest among the four defence shipyards, with an order book of around Rs 1,00,000 crore, including the Rs 23,562 crore project for six Scorpene submarines and the Rs 41,007 crore one for seven guided-missile destroyers.
Kolkata-based Garden Reach Shipbuilders and Engineers (GRSE), Goa Shipyard Ltd (GSL) and Hindustan Shipyard Ltd (HSL) at Visakhapatnam also have large order books.
But the capacity of the four shipyards is limited, with a big demand-supply gap, which has prompted the government to go in for public-private partnerships to meet timelines for ship-building.
The government has also come out with a new Defence Production Policy to progressively reduce India's strategically-vulnerable dependence on foreign military imports by bolstering indigenous R&D and private sector participation in a major way.
The defence sector was opened up in 2001-02 to 100% private investment, with up to 26% FDI, but the results so far have not been very encouraging. The abysmal performance of DRDO, eight defence PSUs and 39 ordnance factories has meant India, which fancies itself as an emerging superpower, still imports over 70% of its military requirements.
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CA. Rajesh Desai
RAJESH DESAI
Employee Union of Dhanlaxmi Bank have asked for a merger of the bank with a public sector bank as they fear the numbers of the bank are fudged. They also allege that the former managing director has withdrew his family deposit from the bank. The stock trades 11percent higher at Rs 64.
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CA. Rajesh Desai
RAJESH DESAI
Hindalco Industries tumbled 5.5% ahead of its Q3 results today, 9 February 2012. The stock was the top loser from the Sensex pack. The company's US subsidiary Novelis on Wednesday, 8 February 2012, reported Q3 net loss of $12 million, lower than net loss of $46 million in Q3 December 2010. Net sales dipped 4% to $2.5 billion in Q3 December 2011 over Q3 December 2010. The company attributed lower sales to lower sales volume and decline in average aluminum prices. Novelis is a global leader in aluminum rolled products and aluminum can recycling.
Novelis has slightly revised downwards its adjusted EBITDA guidance for the year ending March 2012 (FY 2012) to between $1.05-1.08 billion. The company said the downward revision was due to the ongoing market pressures and higher than expected destocking levels in several regions in the third quarter. The company has reaffirmed its FY 2012 free cash flow before capital expenditure target of $600-700 million and capital expenditure of approximately $550-600 million primarily focused on its global expansion projects in Brazil, Korea and North America.
Usher Agro is planning to come out with an initial public offering of subsidiary Usher Eco Power, reports research analyst, Ajaya Sharma of ET Now. The company is planning to raise around Rs 100 crore via the IPO by diluting about 25 per cent stake in the power unit.--
Shunali Gavaskar
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CA. Rajesh Desai
RAJESH DESAI
Unity Infraprojects rose 4% after the company said it won two construction orders worth Rs 485.42 crore.
Unity Infraprojects said it won an order from HSCC (India) to build hospital buildings, academic block and students hostel for Lady Hardinge Medical College & Associated Hospitals at New Delhi. The project, which is to be completed within 20 months, is worth is Rs 414.15 crore.
Further, the company won an order from RITES to build an auditorium at NASC Complex at New Delhi. The project, which is to be completed within 18 months, is worth Rs 71.27 crore.
IT stocks edged lower after the main industry body -- the National Association of Software and Services Companies (Nasscom) on Wednesday, 8 February 2012, said that the pace of export revenue growth of the sector will likely moderate next fiscal year amid continued global economic uncertainty--Warm Regards,Uttam
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CA. Rajesh Desai
RAJESH DESAI
CEAT jumped 4.6% to Rs 89.80 at 12:33 IST on BSE after the company said its board evaluated couple of overseas projects and decided to venture into Bangladesh market through establishing a 65 tonnes per day manufacturing facility in Bangladesh
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CA. Rajesh Desai
RAJESH DESAI
On a consolidated basis, net profit of Tata Steel reported net loss of Rs 602.67 crore in Q3 December 2011 as against net profit of Rs 1003.02 crore in Q3 December 2010. Net sales rose 15.2% to Rs 32964.15 crore in Q3 December 2011 over Q3 December 2010. EBITDA (earnings before interest, taxes, depreciation and amortization) was reported at Rs 1940 crore in Q3 December 2011 compared to Rs 3374 crore in Q3 December 2010. Steel deliveries in Q3 December 2011 fell slightly to 5.84 million tonnes from 5.9 million tonnes in Q3 December 2010. Net debt at the end of December 2011 was Rs 50528 crore compared to Rs 46627 crore at the end of March 2011.
Tata Steel Managing Director Mr HM Nerurkar said: "Our Indian operations delivered steady performance during the last quarter, with flat product volumes increasing 3% year-on-year. Long product volumes dropped marginally due to planned shutdowns, but we increased our market reach, recording our highest ever quarterly retail long products sales. Company-wide cost saving measures benefitted margins in an otherwise difficult market. We expect steel demand to improve on expectations of the RBI relaxing monetary policy to aid growth and investment. An improvement in operating performance, coupled with a number of new marketing initiatives, should increase profitability at the South East Asian operations."
Tata Steel Europe MD & CEO Dr Karl-Ulrich Köhler said: "The December quarter marked the height of the cyclical cost-price squeeze. Tata Steel was one of the first steel companies in Europe last year to start adjusting its output and configuration to the slowdown in the recovery. The turnaround programme in our Long Products business is well on course for completion by the end of the financial year, as planned. Similar measures have been taken elsewhere in the Company, most recently at some of our tubes operations in the Netherlands and the UK. Through our Step Up & Save initiative we are accelerating cash conservation in expectation of muted but stable demand in our core markets in 2012."
yes its all abt corus, indian operation toh is in profit.
On 10/02/2012, Sumeet Jain <sume...@gmail.com> wrote:
> Has it got something to do with Corus ?
> The european steel giant that Tatas bought ?
>
> On Fri, Feb 10, 2012 at 9:32 AM, Harry P <harry....@gmail.com> wrote:
>
>> i have no idea ... but tata steel has been sliding down for the last week,
>> whereas the market is moving up and up.
>>
>> it seems the results were public knowledge even before finally announced
>> ... or they are not as bad as peopled feared.
>>
>> compare nifty and tata steel over the past 10 days and you will see.
>>
>>
>> On Fri, Feb 10, 2012 at 9:30 AM, dibyojyoti saha
>> <djfr...@gmail.com>wrote:
>>
>>> I am very confused , why the rise in tata steel. greeece deal?.
>>>
>>> On 10/02/2012, ekam ber <eka...@gmail.com> wrote:
>>> > Bloomberg
>>> >
>>> > Tata Steel turns to loss in December quarter on weak European demand
>>> > NEW DELHI: Tata Steel Ltd, India's biggest producer, swung to an
>>> unexpected
>>> > loss in its third quarter after raw material costs gained and demand
>>> waned
>>> > in Europe, its largest market.
>>> >
>>> > The loss, including that of unit Tata Steel Europe, was 603 crore ($122
>>> > million) in the three months ended December 31, compared with a profit
>>> of
>>> > 1,000 crore a year earlier, the Mumbai-based company said on Thursday
>>> in a
>>> > statement. The median profit estimate of 28 analysts in a Bloomberg
>>> survey
>>> > was 257 crore. Sales gained 15% to 32,960 crore.
>>> >
>>> > The debt crisis in Europe, which contributes about two- third of Tata's
>>> > production, has cut steel demand and prices. Global use of the alloy
>>> will
>>> > rise 4.5% in 2012, the slowest in three years, according to the median
>>> > estimate of 14 steelmakers, analysts and traders surveyed by Bloomberg.
>>> >
>>> > Total costs rose 22% to 32,550 crore, while raw material expenses
>>> climbed
>>> > 21% to 12,620 crore in the quarter. Tata Steel earned 138 crore from
>>> sources
>>> > other than its main business, the company said.
>>> >
>>> > Tata Steel Europe Chief Executive Officer Karl-Ulrich Koehler in
>>> November
>>> > predicted a "difficult" third quarter. The European unit, which buys
>>> all the
>>> > raw material it needs from outside suppliers, faced a 17% increase in
>>> coking
>>> > coal prices, compared with a 3.5% increase in the price of steel
>>> hot-rolled
>>> > coils in the last quarter.
>>> >
>>> > Mothballed mill
>>> >
>>> > The company on December 2 said it mothballed the Llanwern hot strip
>>> mill in
>>> > Newport, UK, cutting 115 jobs. The mill will remain shut until the UK
>>> > economy and steel demand justify a restart, it then said.
>>> >
>>> > Rival ArcelorMittal, the world's largest steel producer, reported on
>>> > February 7 fourth-quarter earnings before interest, tax, depreciation
>>> and
>>> > amortization fell to $1.71 billion from $1.85 billion a year earlier.
>>> >
>>> > That compared with the $1.68 billion median estimate of 16 analysts
>>> surveyed
>>> > by Bloomberg. First-half Ebitda is likely to exceed results in the
>>> prior six
>>> > months, while still being lower than a year earlier, the company said
>>> in a
>>> > statement.
>>> >
>>>
>>>
>>> --
>>> "Imagination is more important than knowledge."
>>> Albert Einstein
>>> " What you get by achieving your goals is not as
>>> important as what you become by achieving your goals."
>>> Zig Ziglar
>>>
>>
>>
>>
>> --
>> Regards,
>> Harry
>>
>>
>
--
"Imagination is more important than knowledge."
Albert Einstein
" What you get by achieving your goals is not as
important as what you become by achieving your goals."
Zig Ziglar
--
CA. Rajesh Desai