IT stocks may edge lower on weak economic data in US. Data showed factory activity in the US expanded in January at the weakest pace in eight months as orders slumped, a sign manufacturing cooled at the start of the year along with the weather. The Institute for Supply Management's factory index decreased to 51.3 from 56.5 the prior month, the Tempe, Arizona-based group's report showed. Readings above 50 indicate expansion. US is the biggest outsourcing market for the Indian IT firms.
Shares of city gas distribution companies will be in focus after the Ministry of Petroleum and Natural Gas said in a statement issued after trading Monday, 3 February 2014, that the government has decided to raise the share of domestic gas to 100% of the requirement for CNG (transport) and PNG (domestic). The decision has been taken with a view to further promote Compressed Natural Gas (CNG) vehicles and Piped Natural Gas (PNG) used in households, the Ministry of Petroleum and Natural Gas said. This would lead to reduction in price of CNG (transport) and PNG (domestic) across the country, except in those City Gas Distribution (CGD) entities which are already getting 100% domestic gas, the Ministry of Petroleum and Natural Gas said. Accordingly, the price of CNG (transport) in Delhi supplied by Indraprastha Gas (IGL) would reduce by about Rs 15 per kg (about 30%). There will also be a reduction of about Rs 5/SCM (about 20%) in the price of PNG (domestic). The similar reductions in price of CNG and PNG will take place in other cities with city gas distribution projects.
Petroleum Minister Dr M Veerappa Moily said that the decision to raise the share of indigenously produced gas in the CNG (transport) and PNG (domestic) segments was not only guided by the health benefits on account of significantly lower levels of air pollution but also because of additional economic benefits that would accrue on account of reduced subsidy burden for the government. Raising the share of domestic gas to 100% in the CNG (transport) and PNG (domestic) segments would also facilitate rapid growth of CNG usage all over the country, he said.
The additional requirement of 1.92 MMSCMD of gas to raise the share from 80% to 100% is to be met by imposing pro-rata cuts in supplies of domestic gas (excluding NELP gas) to sectors other than the priority sectors, the Ministry of Petroleum and Natural Gas said. The sectors where gas supplies would be curtailed include Petrochemicals, Refineries, Steel, and entities using domestic gas for industrial or commercial purpose, it said. Any future increase in demand for domestic gas from the CNG (transport) and PNG (domestic) sectors would be met by imposing further cuts on the non-priority sector and from the additional production of domestic gas, based on the allocation policy of the government.
In order to insulate the small consumers of gas, it has been decided to exclude the first 5000 SCMD of gas from the purview of pro-rata cuts. This would mean that all customers consuming upto 5000 SCMD of gas would not be subjected to pro-rata cuts and in case of other small customers consuming upto 50,000 SCMD, pro-rata cuts would be applied only on the quantity consumed in excess of 5000 SCMD. The quantity of gas that had been cut in respect of small consumers of gas drawing less than 5000 SCMD of gas by virtue of the oil ministry's guidelines dated 14.11.2013 would also be restored, it said.
CGD entities are expected to pass on the entire benefit due to increased supply of domestic gas to the consumers of CNG (transport) and PNG (domestic). The state governments are also expected to lower/abolish the VAT as a step to pass on additional benefits to consumers across the country and to further promote usage of this environment friendly fuel, the oil ministry said.
More From This Section
The matter regarding increasing the share of domestic gas in the quantum of gas supplied to the City Gas Distribution(CGD) entities for meeting the requirement of CNG (transport) and PNG (domestic) has been under consideration of the Government for some time. On 14 November 2013, the Ministry of Petroleum and Natural Gas issued guidelines which interalia included raising the share of domestic gas to 80% of the consumption level attained in the CNG (transport) and PNG (domestic) segment during 2012-13. The guidelines also provided for the same share of domestic gas at the same base price for all the CGD entities across the country; thereby removing the distortion where some CGD entities were getting upto 100% of domestic gas whereas the others were getting a reduced quantum or even NIL domestic gas.
It may be underlined that Petroleum & Natural Gas Regulatory Board (PNGRB) had, in 2009, envisaged rolling out CGD entities in about 300 Geographical Areas (GAs) in a phased manner. In the few GAs authorized by PNGRB, the growth in the CNG (transport) and PNG (domestic) has not been very promising since they were getting lower proportion of domestic gas. Even the markets of Delhi and Mumbai had attained stagnation in growth. Hence, there was an immediate need to make the CNG (transport) and PNG (domestic) more attractive by providing enhanced share of cheaper domestic gas. Thus raising the share of domestic gas for meeting 100% of the requirement for the CNG (transport) and PNG (domestic) segments and keeping all the CGD entities on a level playing field, will give a big boost to the development and growth of various city gas projects in India, the Ministry of Petroleum and Natural Gas said in a statement.
CNG is one of the cleanest and most environment friendly fuel as compared to other fuels used by automotive vehicles. The level of vehicular emissions is significantly lower in case of CNG when compared to liquid fuels like Diesel and Petrol. As per CPCB report 2010, it has been observed that due to predominant use of CNG as a transport fuel, even in highly populated metros of Mumbai and Delhi the share of vehicular exhaust emissions is 6% and 7% respectively as compared to 21% in Kanpur and 41% in Bangalore (cities predominantly using liquid fuels for transport).
Every 1 MMSCMD domestic PNG caters to about 20 lakh households and can replace about 180 lakh subsidized cylinders. Domestic PNG not only provides convenience and is much safer, but it also indirectly saves a lot of fuel and efforts that are required in managing logistics of domestic LPG cylinders. Increased use of CNG and PNG, substituting liquid fuels, would also lead to significant reduction in the subsidy burden of the government, the Ministry of Petroleum and Natural Gas said.
PSU OMCs will be in focus as the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of February effective 1 February 2014 fell to Rs 7.39 per/litre. This was Rs 9.74 per litre during 2nd fortnight of January 2014 w.e.f. 1 January 2014. In the case of PDS Kerosene and Domestic LPG the under-recoveries for the month of February 2014 rose to Rs 35.77 per litre and Rs 655.96 per cylinder respectively against under-recoveries of Rs 37.33/litre and Rs 762.70 /cylinder respectively during January 2014 as announced.
Oil Marketing Companies (OMCs), effective 1 February 2014, are now incurring combined daily under-recovery of about Rs 446 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is a lower than Rs 481crore daily under-recoveries during previous fortnight effective 16 January 2014.
Further, the OMCs reported a total of Rs 1,00,632 crore as under-recoveries during Ist Nine month of 2013-14 (April-December) on Diesel, PDS Kerosene, Domestic LPG.
Kotak Mahindra Bank has revised interest rates on its rupee term deposits of less than Rs 1 crore crore for select tenor buckets by up to 25 basis points (bps), with effect from 6 February 2014. The bank now offers 9.25% per annum (p.a.) for the 390 day deposit and 9% p.a. for deposits of 181 days-269 days tenor. Senior citizen deposits of less than Rs 1 crore enjoy an additional 50 bps across maturities.
On a consolidated basis, Tata Chemicals reported a net loss of Rs 15.93 crore in Q3 December 2013 compared with a net profit Rs 224.07 crore in Q3 December 2012. Total income rose 6.65% to Rs 4598.13 in Q3 December 2013 over Q3 December 2012.
Commenting on the Company's Q3 FY1314 performance, Mr. R Mukundan, Managing Director, Tata Chemicals said: "The company has embarked on executing twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. During the quarter our growth platforms of Consumer business and Non-subsidy farm business revenue grew at 20% and 21% respectively as compared to corresponding quarter of previous year.
Consumer business continued to grow the Tata I-shakti and Swach franchise and have grown nearly to Rs.1000 crores sales (Sales - Rs.972 crores) year to date. Followed by Mumbai and Delhi launches, 'Dal on Call' facility was extended to Bangalore city during the quarter. The non-bulk farm business continued its growth on back of better farm conditions and focus on productivity improvement at farm level. We launched Farmgro and Farmgro G in the previous quarter and product is well received in the market.
European restructuring is on track and should yield positive results from FY14-15. Current quarter results were impacted by one time charge of Rs.82 crores due to restructuring of European operation. Background work on restructuring Magadi facility continues, plan is expected to be finalised in the Q4 FY1314.
We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Over all while we restructure our commodity businesses, on the strategic front; we continue to focus on building farm and consumer business portfolio."
Jaiprakash Power Ventures reported a net loss of Rs 153.05 crore in Q3 December 2013, higher than net loss of Rs 97.58 crore in Q3 December 2012. Total income rose 17.22% to Rs 513.83 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
Jaiprakash Power Ventures said that the results under review are in respect of 300 MW Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1000 MW Jaypee Karcham Wangtoo H.E. Plant and 500 MW Jaypee Bina Thermal Power Plant. The corresponding figures of the quarter/period in the previous year are only for 300 MW Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant and 1000 MW Jaypee Karcham Wangtoo H.E. Plant and 250 MW Jaypee Bina Thermal Power Plant and hence not comparable.
Some media reports suggested that Jindal Steel and Power (JSPL) bought Andhra's Kineta Power. Accordingly, JSPL clarified to the stock exchanges that Kineta Power project is not under construction and is not an operational power plant. This project has only land and statutory clearances. The acquisition value is not significant and there are no immediate plans for starting construction. As and when, the plans are made in the future the same will be appropriately disclosed as required. Jindal Power, a subsidiary company, has acquired stake in the company owning the said project.
Wheels India said that a committee constituted by the company's board has approved the proposed rights issue of equity shares. The company will issue 51 equity shares for every 20 equity shares held by eligible equity shareholders as on the record date. Each share will be priced at Rs 400.
Net profit of Procter & Gamble Hygiene and Health Care rose 41.82% to Rs 76.57 crore in the quarter ended December 2013 as against Rs 53.99 crore during the previous quarter ended December 2012. Sales rose 21.26% to Rs 570.59 crore in the quarter ended December 2013 as against Rs 470.57 crore during the previous quarter ended December 2012.
Powered by Capital Market - Live News