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Aviation, PSU OMCs in focus on steep hike in jet fuel prices

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Capital Market
Last Updated : Aug 02 2013 | 9:13 AM IST

Shares of state-run oil marketing firms (PSU OMCs) and airliners will be in focus after the state-owned oil companies on Wednesday raised jet fuel or ATF rates by a steep 4.5% on firming international crude oil prices. The hike comes on back of a 1.7% hike in rates effected from 16 July 2012.

ATF typically makes up almost half of an airline's operating cost and the increase in prices will increase the burden of cash-strapped airlines. PSU OMCs revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

State Bank of India (SBI) has reportedly slashed lending rates by up to 50 basis points effective 7 August 2012. SBI has said that it will bring down interest rates on car loans to 10.75% from the prevailing 11.25%. The bank has also decided to offer home loans of up to Rs 30 lakh at 10.25% down from 10.5%, and loans between Rs 30 lakh to Rs 75 lakh at 10.4%. Since SBI has not announced a revision in its base rate, the reduction will apply only to new customers and not to existing borrowers.

Ambuja Cements after market hours on Wednesday said its cement dispatches rose 1.25% to 16.97 lakh tones in July 2012 over July 2011. Cement production rose 1.13% to 16.87 lakh tones in July 2012 over July 2011.

Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles rose 15% to 73,491 vehicles in July 2012 over July 2011. The company's domestic sales of Tata commercial and passenger vehicles rose 18% to 68,627 units in July 2012 over July 2011. Cumulative sales (including exports) for the company for the fiscal year ending March 2013 are 262,299 units, higher by 2%, over 256,800 units sold last year.

The Delhi high court has reportedly issued notices to the Centre and the coal ministry on a petition filed by UK-based fund TCI (The Children Investment Management Fund) against coal ministry's "interference" in state-run Coal India's pricing policy. TCI, which owns 1% in Coal India, has sought the court's directive for quashing of a 25 January 2012 letter that then coal secretary Alok Perti wrote to the company for reversal of a hike in coal prices.

M&M and Telephonics Corporation (Telephonics) and a subsidiary of Griffon Corporation announced today the signing of an agreement for the formation of a joint venture (JV). The JV will be called Mahindra Telephonics Integrated Systems and will provide Indian Ministry of Defence and the Indian civil sector with radar and surveillance systems, identification friend or foe devices and communication systems. In addition, the JV intends to provide systems for air traffic management services, homeland security and other emerging surveillance requirments.

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Telecom stocks may see action on reports the cabinet is likely to take a call on the base price for the auction of the 2G spectrum today, 2 August 2012. Last month, the empowered Group of Ministers (EGoM) on telecom headed by the Home minister P Chidambaram decided that the final decision on reserve price, spectrum usage charge and terms of payment will be taken by the Cabinet.

Adani Enterprises turns ex-dividend today, 2 August 2012, for dividend of Rs 1 per share for the year ended 31 March 2012. Aditya Birla Nuvo turns ex-dividend today, 2 August 2012, for dividend of Rs 6 per share for the year ended 31 March 2012. Godrej Industries turns ex-dividend today, 2 August 2012, for final dividend of Rs 1.75 per share for the year ended 31 March 2012. Tech Mahindra turns ex-dividend today, 2 August 2012, for final dividend of Rs 4 per share for the year ended 31 March 2012.

Voltas reported 40% fall in consolidated net profit to Rs 79.12 crore on 19.8% rise in net sales to Rs 1611.57 crore in Q1 June 2012 over Q1 June 2011.

Engineers India reported 4.2% rise in net profit to Rs 154.29 crore on 15.7% rise in net sales to Rs 719.99 crore in Q1 June 2012 over Q1 June 2011.

Manappuram Finance reported 46.3% rise in net profit to Rs 157.77 crore on 47% rise in total income to Rs 725.48 crore in Q1 June 2012 over Q1 June 2011.

Gulf Oil Corporation reported 33.1% fall in net profit to Rs 10.07 crore on 12.1% rise in net sales to Rs 247.58 crore in Q1 June 2012 over Q1 June 2011.

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First Published: Aug 02 2012 | 8:58 AM IST

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