Market may open slightly higher

The market may open slightly higher tracking higher Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 8 points at the opening bell.

Among corporate news, metal stocks may gain on positive economic data in China. China is the world's largest consumer of copper and aluminum.

Mahindra & Mahindra (M&M) said before market hours that its auto sales numbers stood at 37,869 units in May 2014. Domestic sales fell 15.68% to 35,499 units in May 2014 over May 2013. Exports rose 75% to 2,370 units in May 2014 over May 2013.

Hero MotoCorp, India's largest maker of motorcycles and scooters, said on Sunday, 1 June 2014 its sales rose 8% to 602,481 units in May 2014 over May 2013.

L&T's net profit surged 69% to Rs 2723 crore on 11% growth in gross revenue to Rs 20229 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

The growth in L&T's top line during Q4 March 2014 is due to progress in various jobs under execution. The international revenue rose 25% to Rs 2966 crore in Q4 March 2014 over Q4 March 2013. International revenue constituted 15% of total revenue in Q4 March 2014.

L&T's order intake during the quarter was steady at Rs 26737 crore. International order inflow during the quarter at Rs 11389 crore constituted 43% of the total order inflow for the quarter.

The results for the quarter and year ended 31 March 2014, exclude the performance of Hydrocarbon business segment, which has been transferred with effect from 1 April 2013 to L&T Hydrocarbon Engineering, a wholly owned subsidiary of the company upon sanction of the scheme by the Bombay High Court vide order dated 20 December 2013. Consequently, the performance for the corresponding previous quarter and year ended 31 March 2013 has been suitably restated, L&T said in a statement.

L&T's net profit on like-to-like basis rose 25% to Rs 5493 crore on 10% growth in gross revenue to Rs 57164 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

The recurring profit after tax (PAT) rose 18% to Rs 4905 crore in FY 2014 over FY 2013.

International revenue rose 22% to Rs 9129 crore in FY 2014 over FY 2013. It constituted 16% of the total revenue in FY 2014.

The company successfully secured fresh orders worth Rs 94108 crore in FY 2014, registering a significant growth 15% YoY, on a large base despite a sluggish economic environment during 2013-14. The international order inflow during the year at Rs 30752 crore grew more than 3 times on a YoY basis, constituting 33% of the total order inflow. Major orders during the year were procured by the infrastructure segment, L&T said in a statement.

The order book at Rs 162952 crore as at 31 March 2014, grew 13% on YoY basis. International order book constituted 21% of the total order book, L&T said in a statement.

On consolidated basis, L&T's net profit declined 6% to Rs 4902 crore on 14% growth in revenue at Rs 85889 crore in FY 2014 over FY 2013.

The consolidated profit during the year was impacted mainly due to decline in the operating margins of the hydrocarbon business and the initial losses incurred by new ventures such as L&T Shipping and L&T Special Steel and Heavy Forgings, as these subsidiary companies are yet to gain scale, L&T said in a statement.

With regard to future business outlook, L&T said it has weathered the challenging times of the past few years due to its inherent capabilities and strong balance sheet. Being well positioned to tap the emerging opportunities in its core businesses, the company looks forward to a period of renewed investment momentum and sustainable growth. Given its large order book, the company is optimistic to maintain its growth momentum in the medium term, as domestic and global economic environment improves, L&T said in a statement.

L&T's board of directors at its meeting held on Friday, 30 May 2014, recommended dividend of Rs 14.25 per share for FY 2014.

PSU OMCs will be in focus as diesel prices were on Saturday, 31 May 2014 hiked by 50 paise a litre, excluding state levies, the second increase in rates three weeks.

NMDC's net profit surged 33.93% to Rs 1962.14 crore on 17.6% growth in total income to Rs 4412.03 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

NMDC's net profit rose 1.22% to Rs 6420.08 crore on 9.34% growth in total income to Rs 14152.72 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

On consolidated basis, NMDC's net profit rose 0.58% to Rs 6370.98 crore on 9.3% growth in total income to Rs 14147.31 crore in FY 2014 over FY 2013.

The export of iron ore during the current year was 22.97 lakh tons as against 16.02 lakh tons of previous year. Due to this increase of export of iron ore by 6.95 lakh tons, the selling expenditure has gone up by Rs 458.95 crore, NMDC said.

Infosys on Saturday, 31 May 2014 reiterated that the company's search for its new Chief Executive Officer and Managing Director continues and no decision has been taken in this regard as of date. Any other reports or rumours are merely speculations at this point, Infosys said. Once the search is complete, the company will issue a formal notification on the new appointee, Infosys said in a statement.

Aurobindo Pharma's consolidated net profit jumped 362.02% to Rs 501.81 crore on 47.71% rise in total income to Rs 2340.46 crore in Q4 March 2014 over Q4 March 2013.

Aurobindo Pharma's consolidated net profit jumped 299.13% to Rs 1172.85 crore on 38.05% rise in total income to Rs 8123.03 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Commenting on the Company's performance, Mr. N. Govindarajan, Managing Director of the company said: We have reported yet another year of commendable business deliveries resulting in strong growth in revenues and profits. We continue to invest in building a quality organization as we focus on optimizing the mix of products and markets in line with capacities to drive operating efficiencies. We are also making steady progress on our differentiated product offerings especially with the parenterals gaining traction in advanced geographies.

Ruchi Soya Industries reported net loss of Rs 19.65 crore in Q4 March 2014 as compared to net profit of Rs 78.58 crore in Q4 March 2013. Total income from operations (net) fell 15.57% to Rs 6377.50 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

Ruchi Soya Industries' net profit dropped 94.31% to Rs 13.42 crore on 6.75% fall in total income from operations (net) to Rs 24381.01 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

On consolidated basis, Ruchi Soya Industries' net profit dropped 99.94% to Rs 0.16 crore on 4.54% fall in total income from operations (net) to Rs 28499.43 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Earnings before interest and finance cost, tax, depreciation & amortisation (EBITDA) fell 22.07% to Rs 733.75 crore in FY 2014 over FY 2013. Sale of Textured Soya Protein (TSP) or Soya Food rose 39.36% to Rs 177 crore in FY 2014 over FY 2013. Branded sales rose 12.01% to Rs 6965 crore in FY 2014 over FY 2013.

Commenting on the performance, Founder and Managing Director, Mr. Dinesh Shahra said, "The anomaly in import duty structure on crude and refined palm oil in India had an adverse impact on the performance of oil refining industry in India. The anomaly was partially corrected only in January 2014. Lower crop size of soybean in India resulting in lesser availability of seeds in the market, lack of parity, led to lower utilization of crushing capacities in India. Fluctuating USD INR Exchange rate and the consequent higher hedging cost also had an adverse impact on the profitability of the Company.

With the new and stable Government in India, we expect the import duty structure rationalized further, economy to get a boost, rupee to stabilize and improvement in the overall business sentiments.

Branded sales have been growing both in value and percentage of the total sales of Ruchi Soya. Textured Soya Foods as a category has been growing, providing great business opportunity for us. We are in the process of innovating new products in this category, which will help us strengthening our leadership position in Soya Foods and Edible Oils category in India.

Our popular brands 'Nutrela' and 'Sunrich' have been revitalized. 'Ruchi Gold' continues to be India's largest single oil brand. Joint ventures signed by the company during the fiscal will soon start yielding a positive outlook on our performance. We are making efforts to keep the costs under check, continue our focus on branded sales that can yield better margins and look forward to a better performance on a sustained basis in the times to come."

Jyoti Structures reported net loss of Rs 12.53 crore in Q4 March 2014 as compared to net profit of Rs 22.20 crore in Q4 March 2013. Total income from operations (net) rose 39.33% to Rs 1307.62 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

Jyoti Structures net profit dropped 50.15% to Rs 32.32 crore on 18.7% rise in total income from operations (net) to Rs 3330.77 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

On a consolidated basis, Jyoti Structures reported net loss of Rs 9.36 crore in the year ended 31 March 2014 as compared to net profit of Rs 37.80 in the year ended 31 March 2013. Total income from operations (net) rose 20.69% to Rs 3638.53 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Panacea Biotec reported net profit of Rs 33.98 crore in Q4 March 2014 as compared to net loss of Rs 82.75 crore in Q4 March 2013. Total income from operations (net) fell 14.01% to Rs 163.69 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

Panacea Biotec reported net loss of Rs 0.42 crore in the year ended 31 March 2014, lower than net loss of Rs 220.13 crore in the year ended 31 March 2013. Total income from operations (net) fell 15.58% to Rs 503.03 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

On a consolidated basis, Panacea Biotec reported net loss of Rs 116.88 crore in the year ended 31 March 2014, lower than net loss of Rs 234.28 crore in the year ended 31 March 2013. Total income from operations (net) fell 16.05% to Rs 511.27 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Simplex Infrastructures' net profit rose 18.85% to Rs 21.37 crore on 3.03% decline in total income from operations to Rs 1441.10 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

The order intake during Q4 March 2014 is Rs 964 crore and cumulative order inflow during FY 2014 is Rs 7876 crore. The order book as of 31 March 2014 stands at Rs 15257 crore in addition to the L1 status of Rs 936 crore, the company said in a statement.

Simplex Infrastructures' net profit rose 1.27% to Rs 60.58 crore on 5.28% decline in total income from operations to Rs 5512.98 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Simplex Infrastructures' gross sales declined 5.16% to Rs 5615 crore in FY 2014 over FY 2013. On lower sales, EBITDA rose by 9% to Rs 636 crore in FY 2014 over FY 2013.

On consolidated basis, Simplex Infrastructures' net profit rose 9.78% to Rs 58.46 crore on 4.62% decline in total income from operations to Rs 5615.41 crore in FY 2014 over FY 2013. Gross sales declined 4.6% to Rs 5723 crore in FY 2014 over FY 2013.

Cox & Kings reported a consolidated net loss of Rs 46 crore in Q4 March 2014, lower than net loss of Rs 49 crore in Q4 March 2013. Net sales rose 115.21% to Rs 495 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.

EBITDA surged 52.94% to Rs 52 crore in Q4 March 2014 over Q4 March 2013.

Cox & Kings' consolidated net profit surged 54% to Rs 383 crore on 28% growth in net sales to Rs 2308 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). EBITDA surged 55% to Rs 1110 crore in FY 2014 over FY 2013.

Peter Kerkar, Director, Cox & Kings said, We have had a good year with growth in both domestic and international business. Our aim is to continue improving revenues, profitability and enhance shareholders value. Our tailored product mix to access the fast growing travel segments enables us to leverage the different demands of varied customers.

Arvind will be watched after Arvind OG Nonwovens, a joint venture (JV) between Arvind and OG Corporation of Japan, inaugurated its manufacturing facilities near Ahmedabad, Gujarat, on 31 May 2014. The JV will manufacture high quality Nonwoven fabrics using Needle-punch technology for Bag house filtration, Artificial leather and a variety of other applications. The JV also has a technology alliance with Kureha of Japan.

Arvind OG has installed custom-built machines specifically designed to achieve Japanese quality standards and capable of handling various fibers such as M-Aramid, Homopolymer Acrylic, Poly-phenelyene Sulfone (PPS), Polyimide Polypropylene and Polyester. These will be manufactured at the newly installed facilities following the highest global standards of quality while leveraging the advantage of India's cost of production, Arvind said in a statement.

The unit has started production in May 2014 with one line of needle-punching technology, with total investment of nearly INR 50 crore and targeting to reach turnover in excess of Rs 100 crore in 3 years. Beyond this, Arvind will continue to expand capacities in this as well as other technologies within the Nonwoven fabrics space, which will be an important pillar of Arvind's technical textiles growth strategy going forward, the company said.

On the occasion of inauguration of the manufacturing facility of Arvind OG Nonwovens on 31 May 2014 in Ahmedabad, Mr Punit Lalbhai, Executive Director of Arvind and CEO of the Advanced Materials Division said, "This is a big milestone for Arvind and for AMD. It marks our entry in the highly attractive Nonwoven fabrics space, and we are looking to aggressively grow this vertical with our Japanese partners. Beyond this, we are also looking to invest in other technologies and product categories in the non-wovens space going forward," Mr. Lalbhai said.

Mr H. Machino, Managing Director of OG Corporation India and Director of the India JV further added, "Keeping the future in mind, India is a very important marketplace for OG Corporation. We are therefore delighted to partner with Arvind and establish a Nonwoven fabrics manufacturing facility in India."

MCX's net profit fell 42.90% to Rs 43.75 crore on 42.63% decline in total income to Rs 96.98 crore in Q4 March 2014 over Q4 March 2013.

Net profit fell 48.85% to Rs 152.75 crore on 31.76% decline in total income to Rs 439.93 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013).

On a consolidated basis, the company's net profit fell 48.80% to Rs 153.16 crore on 31.75% decline in total income to Rs 440.31 crore in FY 2014 over FY 2013.

Financial Technologies (India) (FTIL) posted a net loss of Rs 371.25 crore in Q4 March 2014 compared with net profit of Rs 87.81 crore in Q4 March 2013. Total Income slumped 68.52% to Rs 59.22 crore in Q4 March 2014 over Q4 March 2013.

FTIL posted a net loss of Rs 228.54 crore in the year ended 31 March 2014 compared with net profit of Rs 322.88 crore in the year ended 31 March 2013. Total income fell 29.70% to Rs 462.14 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

FTIL's profit before provisions, diminution in long term investments and taxes for the financials year ended 31 March 2014 stood at Rs 302 crore (previous year profits before provision, diminution and taxes at Rs 403 crore).

FTIL made provision for equity investments, loans and other outstanding from NSEL for a sum of Rs 259 crore and diminution in value of other investments to the tune of Rs 227 crore resulting in overall provision and diminution expense of Rs 486 crore.

The company has also de-recognized revenue and interest due from NSEL to the tune of Rs 25.50 crore.

The company has with effect from 1 January 2014 revised the estimated useful life of assets. As a result of the same, the depreciation expense for the financial year ended 31 March 2014 is higher by Rs 5.50 crore.

During the financial year, the company has booked a gain of Rs 69.90 crore on sale of 5% of its holding in lEX.

Loss for the year stood at Rs 229 crore (previous year profit after tax of Rs 329 crore).

Commenting on Financial Technologies' Standalone FY 2014 performance, Dewang Neralla, Whole Time Director, said: "We are pleased to announce audited financial results for year ended 31 March 2014. Profit before Provisions, Diminution in Long term investments and Taxes for the financials year ended 31 March 2014 stands at Rs 302 crore. The company has adopted a conservative approach and has made a provision of Rs 486 crore during the year."

On macro front, Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for May 2014 today, 2 June 2014.

The Reserve Bank of India (RBI) undertakes a monetary policy review tomorrow, 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

The Reserve Bank of India (RBI) has decided to conduct a 4-day term reverse repo variable rate auction for a notified amount of Rs 15000 crore today, 2 June 2014, with a greenshoe option to accept offers up to an additional amount of Rs 10000 crore. The decision was take after an assessment of the evolving liquidity conditions, the RBI said in a statement on Friday, 30 May 2014. The reversal of the 4-day reverse repo will take place on Friday, 6 June 2014.

India's Gross Domestic Product (GDP) rose at steady pace of 4.6% in Q4 March 2014 same as in the previous quarter. The GDP growth rose to 4.7% in the fiscal year ended 31 March 2014 (FY2014) from 4.5% in FY2013, but remained below the advances estimate of 4.9% released in February 2014. The 'agriculture, forestry and fishing' sector has shown a growth rate of 4.7% in FY2014, as against the growth rate of 4.6% in the Advance Estimates.

India's fiscal deficit has declined to 4.5% of GDP in FY2014 against 4.8% of budget estimates in February 2014 and 4.6% of revised estimates in February 2014. The fiscal deficit has also declined from 4.9% of GDP in FY2013.

The Prime Minister's Office (PMO) on Saturday, 31 May 2014, announced that Prime Minister Narendra Modi has decided to abolish all the existing nine Empowered Group of Ministers (EGoMs) and twenty-one Groups of Ministers (GoMs). This would expedite the process of decision making and usher in greater accountability in the system, the PMO said in a statement. The Ministries and Departments will now process the issues pending before the EGoMs and GoMs and take appropriate decisions at the level of Ministries and Departments itself, the PMO said. Wherever the Ministries face any difficulties, the Cabinet Secretariat and the Prime Minister's Office will facilitate the decision making process, the PMO said.

Finance minister Arun Jaitley vowed on Sunday to uphold fiscal discipline, despite pressure on public finances from figures showing the economy grew by less than 5 percent in the fiscal year just ended. "Slower GDP growth will imply lower tax buoyancy and (a) higher fiscal deficit," he added. "We must move towards an era of fiscal discipline where we can reduce the fiscal deficit, contain inflation and improve upon our growth rates."

The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. The special session will be followed by a full-fledged budget session after a gap.

Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.

Key benchmark indices edged lower after alternately swinging between positive and negative zone in intraday trade on Friday, 30 May 2014. The S&P BSE Sensex shed 16.81 points or 0.07% to settle at 24,217.34 on that day, its lowest closing level since 16 May 2014..

Foreign institutional investors (FIIs) bought shares worth a net Rs 2,977.62 crore on Friday, 30 May 2014, as per provisional data from the stock exchanges.

Asian stocks advanced on Monday after a gauge of China's manufacturing expanded at the fastest pace this year. Key benchmark indices in Indonesia, Japan, Singapore and South Korea were up 0.09% to 1.79%. Stock markets in China, Hong Kong and New Zealand are closed today for holidays.

China's Purchasing Managers' Index increased to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on Sunday, while authorities reduced some lenders' reserve requirement ratios as the government acts to support growth in the world's second-biggest economy.

The Dow Jones Industries Average and the S&P 500 eked out small gains on Friday, 30 May 2014. The Nasdaq Composite Index registered small losses. On the economic front, the Commerce Department reported US consumer spending fell 0.1% in April from a month earlier. April personal income rose 0.3%. The price index for personal consumption expenditureswhich is the Federal Reserve's preferred gauge of inflationrose 0.2% in April. The Thomson Reuters and University of Michigan's consumer-sentiment index for May showed a final reading of 81.9, up from a preliminary 81.8.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.

Powered by Capital Market - Live News