Key benchmark indices dropped on last trading session of the week after the India Meteorological Department (IMD) on Thursday, 24 April 2014, said that the country will likely get below-normal levels of monsoon rain this year. Weakness in Asian and European stocks also hit sentiment on the domestic bourses adversely as the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in more than a week. The market breadth, indicating the overall health of the market was negative. The Sensex lost 188.47 points or 0.82%, off 251.24 points from the day's high and up 31.43 points from the day's low.
Maruti Suzuki India edged lower in choppy trade after the company reported weak Q4 result during trading hours today, 25 April 2014. Mahindra & Mahindra (M&M) scaled record high. Many FMCG stocks dropped after the India Meteorological Department (IMD) said on Thursday, 24 April 2014, said that the country will likely get below-normal levels of monsoon rain this year. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Shares of state-run oil marketing companies declined as crude oil prices edged higher.
Axis Bank rose after announcing strong Q4 result and a 5-for-1 stock split. ICICI Bank dropped after the bank said its net non-performing assets rose in Q4 March 2014. Among cement stocks, ACC and Ambuja Cements dropped after announcing Q1 results on Thursday, 24 April 2014. UltraTech Cement declined after announcing Q4 results after market hours on Wednesday, 23 April 2014. Realty stocks rose on renewed buying. Bharti Infratel gained after declaring strong Q4 result on Thursday, 24 April 2014.
High volatility was witnessed as Sensex and the 50-unit CNX Nifty, both, hit record high at the onset of the trading session. Volatility continued in morning trade as key benchmark alternately swung between positive and negative zone. Key benchmark indices languished in negative zone in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade as European stocks edged lower in early trade there. Key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. The 50-unit CNX Nifty hit its lowest level in more than a week. Key benchmark indices extended losses and hit fresh intraday low in late trade.
The S&P BSE Sensex lost 188.47 points or 0.82% to settle at 22,688.07, its lowest closing level since 17 April 2014. The index lost 219.90 points at the day's low of 22,656.64 in late trade. The index gained 62.77 points at the day's high of 22,939.31 in early trade, a lifetime high for the barometer index.
The CNX Nifty lost 58.05 points or 0.85% to settle at 6,782.75, its lowest closing level since 17 April 2014. The index hit a low of 6,772.85 in intraday trade. The index hit a high of 6,869.85 in intraday trade, a lifetime high for the index.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,552 shares dropped and 1,268 shares rose. A total of 106 shares were unchanged.
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The BSE Mid-Cap index lost 21.42 points or 0.29% to settle at 7,373.64. The BSE Small-Cap index shed 48.76 points or 0.64% at 7,597.34. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3043 crore, higher than Rs 2626.12 crore on Wednesday, 23 April 2014.
Many FMCG stocks dropped after the India Meteorological Department (IMD) said on Thursday, 24 April 2014, said that the country will likely get below-normal levels of monsoon rain this year. FMCG firms derive substantial sales from rural India.
Godrej Consumer Products (down 1.6%), Hindustan Unilever (down 2.78%), Marico (down 1.6%) and Tata Global Beverages (down 2.02%) declined. Colgate-Palmolive (India) (up 0.54%), Britannia Industries (up 0.34%), Dabur India (up 0.42%) and Nestle India (up 0.5%) rose.
Index heavyweight and cigarette major ITC lost 2.91% at Rs 343.05. The stock hit high of Rs 355.20 and low of Rs 342.60.
Index heavyweight Reliance Industries (RIL) shed 2.24% at Rs 945.15. The stock hit high of Rs 968 and low of Rs 945.
Shares of state-run oil marketing companies declined as crude oil prices edged higher. Indian Oil Corporation (down 2.53%), BPCL (down 3.76%) and HPCL (down 3.53%) edged lower. Higher crude oil prices could increase under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.
Brent crude futures rose by more than a dollar a barrel on Thursday, 24 April 2014, as mutual accusations of aggression by Ukraine and Russia raised concerns over future oil supplies, while strong US economic data suggested higher demand. Global benchmark Brent crude settled $1.22 a barrel higher at $110.33 and US crude settled 50 cents higher at $101.94 on Thursday, 24 April 2014.
Cairn India lost 4.91%. Cairn India's consolidated profit after tax (PAT) rose 18% to Rs 3035 crore on 16% growth in revenue to Rs 5049 crore in Q4 March 2014 over Q4 March 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 26% to Rs 3654 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin surged to 72% in Q4 March 2014, from 67% in Q4 March 2013. The result was announced after market hours on Wednesday, 23 April 2014.
Consolidated PAT rose 5% to Rs 3035 crore on 1% growth in revenue to Rs 5049 crore in Q4 March 2014 over Q3 December 2013. EBITDA rose 3% to Rs 3654 crore in Q4 March 2014 over Q3 December 2013. EBITDA margin edged up to 72% in Q4 March 2014, from 71% in Q3 December 2013. Cairn India said that the 5% sequential growth in PAT in Q4 March 2014 was primarily led by increase in investment income consequent to realisation of gains on maturity of investible funds and one time charge of ESOP policy change accounted in previous quarter.
Consolidated PAT rose 3% to Rs 12432 crore on 7% rise in revenue to Rs 18762 crore in the year ended 31 March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Cairn India said that revenue growth in FY 2014 was driven by increase in working interest volume to 137.1 kboepd in FY 2014, from 127.8 kboepd in FY 2013 and due to benefit from rupee depreciation. This increase was partly offset by higher profit sharing with the Government of India (GoI) in DA1 consequent to tranche change, Cairn India said. The company said its forex gain was higher at Rs 739 crore in FY 2014 on account of over 10% rupee depreciation against the dollar.
Cash and cash equivalents stood at Rs 13707 crore in rupee funds and $1.53 billion in dollar funds as on 31 March 2014, part of which is expected to be used for share buy-back and dividends, Cairn India said. Till 31 March 2014, Cairn India has bought back 32.70 lakh shares for a total consideration of approximately Rs 106 crore from the open market through stock exchanges under the ongoing share buyback programme.
The company's board recommended a final dividend of Rs 6.50 per share for FY 2014, entailing an outflow of approximately Rs 1451 crore including dividend distribution tax. This along with the interim dividend paid in October 2013 cumulatively amounts to around 22.46% of the company's annual consolidated net profit.
With regard to future business outlook, Cairn India said that the management remains committed to create long term shareholder value. Considering the significant potential in the Rajasthan asset, the company will continue to focus on key development projects to enhance recovery with overall planned net capex of $3 billion by FY 2017, it said. The company said it is targeting to achieve reserve replacement ratio of 150% in next 3 years subject to PSC extension till 2030 and a 3 year production CAGR of 7-10% from known discoveries with flat production in FY 2015. Further exploration activity across the portfolio provides additional value upside and momentum while technology adoption supports low cost operations and development, Cairn India said.
Axis Bank rose 1.8% after net profit rose 18.46% to Rs 1842.32 crore on 12.41% growth in total income to Rs 10178.63 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 25 April 2014.
Axis Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.22% as on 31 March 2014 as against 1.25% as on 31 December 2013 and 1.06% as on 31 March 2013. The ratio of net NPAs to net advances stood at 0.4% as on 31 March 2014 as against 0.42% as on 31 December 2013 and 0.32% as on 31 March 2013.
Axis Bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 16.07% as on 31 March 2014 as against 15.5% as on 31 December 2013.
Axis Bank's net profit rose 20.04% to Rs 6217.67 crore on 12.78% growth in total income to Rs 38046.38 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, Axis Bank's net profit rose 20.54% to Rs 6310.12 crore on 13.12% growth in total income to Rs 38502.21 crore in FY 2014 over FY 2013.
Axis Bank's board of directors at its meeting held today, 25 April 2014, approved 5-for-1 stock split, subject to approval of the shareholders and any other statutory and regulatory approvals, as applicable. The board also recommended dividend of Rs 20 per share for FY 2014.
ICICI Bank dropped 2.39% after announcing its Q4 results. The bank's net profit rose 15.1% to Rs 2652.01 crore on 15.04% rise in total income to Rs 14465.34 crore in Q4 March 2014 over Q4 March 2013. The bank announced result during market hours today, 25 April 2014.
ICICI Bank's net interest income jumped 15% to Rs 4357 crore in Q4 March 2014 over Q4 March 2013. Non-interest income jumped 35% to Rs 2976 crore in Q4 March 2014 over Q4 March 2013. Non-interest income in Q4 March 2014 includes Rs 222 crore of exchange rate gains on repatriation of retained earnings from overseas branches. ICICI Bank said that the bank's cost-to-income ratio reduced to 39.2% in Q4 March 2014 from 40% in Q4 March 2013.
ICICI Bank said its provisions surged to Rs 714 crore in Q4 March 2014, from Rs 460 crore Q4 March 2013.
Net non-performing assets as on 31 March 2014 stood at Rs 3301 crore, higher than Rs 3121 crore as on 31 December 2013 and Rs 2234 crore as on 31 March 2013. The net non-performing asset ratio was 0.82% as on 31 March 2014, higher than 0.81% as on 31 December 2013 and 0.64% at 31 March 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 68.6% as on 31 March 2014 after write-offs of Rs 2156 crore during the year. Net loans to companies whose facilities have been restructured stood at Rs 10558 crore as on 31 March 2014, higher than Rs 8602 crore as on 31 December 2013 and Rs 5315 crore as on 31 March 2013.
ICICI Bank said that the bank has continued with its strategy of pursuing profitable growth. The bank continued to grow its retail franchise and has seen healthy growth in retail assets and deposits during the year. The bank continued to strengthen its deposit franchise with healthy mobilization of current and savings account (CASA) deposits during the year, leveraging its increased branch network and technology initiatives, ICICI Bank said.
The ratio of bank's current and savings account deposits (CASA) stood at 42.9% as on 31 March 2014, compared with 43.3% as on 31 December 2013 and 41.9% as on 31 March 2013. The average CASA ratio for Q4 March 2014 was 39.1%. The average CASA ratio for FY 2014 was 39.4%, compared with 38% for FY 2013.
During the year, ICICI Bank added 653 branches and 834 ATMs to its network.
The bank's capital adequacy as per Reserve Bank of India's guidelines on Basel III norms was 17.70% and Tier-1 capital adequacy was 12.78% as on 31 March 2014, well above regulatory requirements.
South Indian Bank lost 3.41% after net profit declined 19% to Rs 124.60 crore on 8.76% growth in total income to Rs 1399.18 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced on Thursday, 24 April 2014.
South Indian Bank's provisions and contingencies declined 57.08% to Rs 28.28 crore in Q4 March 2014 over Q4 March 2013.
The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.19% as on 31 March 2014 as against 1.66% as on 31 December 2013 and 1.36% as on 31 March 2013. The ratio of net NPAs to net advances stood at 0.78% as on 31 March 2014 as against 1.18% as on 31 December 2013 and 0.78% as on 31 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.42% as on 31 March 2014 as against 12.2% as on 31 December 2013.
South Indian Bank's net profit rose 1.04% to Rs 507.50 crore on 12.88% growth in total income to Rs 5383.53 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Union Bank of India rose 2.28%. Union Bank of India said that on 22 April 2014, it successfully priced a $350 million Reg S senior unsecured notes drawdown from its $2 billion Medium-Term Note Program. The bonds are rated Baa3 by Moody's and BBB- by S&P. The 5.5-year bonds were priced at a spread of 280 bps over the 5-year US Treasury, equivalent to a price of 99.764 and yield of 4.549% per annum. The bonds will be denominated in US dollars, and will bear fixed interest of 4.5% per annum, with interest payable semi-annually in arrears. The bonds will mature on 28 October 2019. The total orderbook of the Offering was in excess of $1.2 billion and was oversubscribed 3.4 times with demand from 150 investors, Union Bank of India said in a statement.
Maruti Suzuki India edged lower in choppy trade after the company reported weak Q4 result during trading hours today, 25 April 2014. The stock lost 0.69% at Rs 1,969. The stock witnessed high volatility after the result announcement. The stock hit high of Rs 1,999.90 and low of Rs 1,918.50.
Maruti Suzuki India's net profit fell 35.46% to Rs 800.10 crore on 9.48% decline in net sales to Rs 11818.10 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 25 April 2014.
Maruti Suzuki India said that the bottom line was impacted adversely in Q4 March 2014 due to lower volumes, higher sales promotion expenses and a stock compensation to dealers owing to reduction in excise duty (exceptional expense).
In FY 2013, Suzuki Powertrain India was merged with Maruti Suzuki India. Financials for Q4 March 2013 include the full impact of the merger, Maruti Suzuki said.
Maruti Suzuki India's net profit rose 16.3% to Rs 2783.10 crore on 0.1% growth in net sales (net of excise) to Rs 42644.80 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Maruti Suzuki India said that the company's market performance showed positive indications during FY 2014. The company's cost reduction and localization initiatives, together with favourable foreign exchange, helped improve profit margins despite tough economic conditions, Maruti Suzuki said in a statement.
Maruti Suzuki India's board of directors at its meeting held today, 25 April 2014, recommended final dividend of Rs 12 per share for FY 2014.
Mahindra & Mahindra (M&M) rose 2.74% to Rs 1,065.20 after hitting a record high of Rs 1,078 in intraday trade. M&M during market hours on Wednesday, 23 April 2014, said that the company's agri division has signed a joint venture agreement with HZPC, Holland, one of the leading innovative companies in the world in potato breeding, seed potato growing and seed potato trading to offer the best quality seed potatoes to farmers within and outside India. Mahindra will hold 60% stake and HZPC the remaining 40% stake in the new joint venture company.
The joint venture will benefit from the expertise of both the companies where HZPC with its strong R&D focus will bring in access to the latest technology, new varieties and open up global markets for the Indian farmers, M&M and HZPC said in a joint statement. Mahindra will contribute to the joint venture through the group's strong farmer connect, wide spread domestic distribution and agronomy expertise. The new company will construct a set of the art facility to produce Tissue culture plants and mini-tubers. The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to the farmers.
Shares of two-wheeler makers declined. Bajaj Auto (down 0.39%), Hero MotoCorp (down 1.94%) and TVS Motor Company (down 1.19%) dropped.
Engineering and construction major L&T fell 2%. L&T today, 25 April 2014, said that its construction division has made a major breakthrough in Qatar by winning a prestigious $740 million (about Rs 4510 crore) order from Qatar Railways Company for the design and construction of the Gold Line of the Doha Metro project in Qatar. L&T secured the order along with its joint venture partners Aktor - Greece, Yapi Merkezi Insaat - Turkey, STFA Group - Turkey and Al Jaber Engineering - Qatar. The total value of order for the joint venture is $3.3 billion (about Rs 20000 crore).
The project is scheduled to be completed in 54 months. The contract includes the design and construction of twin tunnels for an approximate length of 11 Km and nine underground metro stations including architectural finishes and mechanical, electrical and plumbing works. This Metro project is among the key infrastructure projects of national interest as per the Qatar National Vision 2030, L&T said.
Realty stocks rose on renewed buying. Indiabulls Real Estate (up 6.21%), Housing Development and Infrastructure (up 2.84%), D B Realty (up 3.18%), Unitech (up 1.03%) gained.
DLF advanced 0.95%. DLF after market hours on Wednesday, 23 April 2014, announced that its offices leasing and management arm, DLF Offices, has created a benchmark by leasing 3 million square feet (sq. ft.) of office space during the year ended 31 March 2014 (FY 2014) with many marquee MNCs and Indian companies. This includes 1.3 million sq.ft. of spaces that were re-leased. The incremental leasing of 1.7 million sq.ft. done during the year was better than the guidance of 1 to 1.5 million sq.ft. DLF said.
Out of the total 3 million sq. ft. leased out in FY 2014, a record 1.7 million sq. ft. has been leased out in Gurgaon alone. This has been achieved despite intense competition in the office leasing space and a subdued economic environment, DLF said.
The lease rentals witnessed stable to healthy increases in various micro markets, DFL said.
Significantly most tenants who are completing the 9 year lease term in DLF CyberCity, Gurgaon chose to renew their leases reinforcing their faith and relationship with DLF, the company said. DLF Offices has approximately 27 million sq.ft of leasable space pan India with certain projects having achieved above 95% occupancy.
Bharti Infratel gained 2.5% after consolidated net profit jumped 64.43% to Rs 472.40 crore on 3.97% increase in total income to Rs 2934.40 crore in Q4 March 2014 over Q4 March 2013. The company announced the result on Thursday, 24 April 2014.
Bharti Infratel's earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16% to Rs 1160 crore in Q4 March 2014 over Q4 March 2013.
On a consolidated basis, net profit jumped 51.41% to Rs 1517.90 crore on 6.27% increase in total income to Rs 11275.40 crore in the year ended March 2014 over the year ended March 2013. EBITDA rose 16% to Rs 4412 crore in the year ended March 2014 over the year ended March 2013.
Bharti lnfratel crossed sharing factor of 2 as at 31 March 2014 (with average sharing factors of 1.96 on consolidated basis).
Akhil Gupta, Chairman, Bharti lnfratel said: "The regulatory environment in telecom sector has improved significantly post the spectrum auctions conducted in February 2014. Operators have made large investments, primarily for data networks using 3G and 4G (LTE) technologies. We believe that faster roll out of networks will happen over coming years in order to monetize these investments. The Telecom Industry is entering a new phase and data proliferation will be the key driver for tower and co-location demand in future. Bharti lnfratel is well positioned to cater to this demand and garner a major share thereof."
Yes Bank surged 5.83%. With reference to the news item appearing in a financial daily on 23 April 2014 titled "L&T Fin in talks with Yes Bank on stake buy", Yes Bank after market hours today, 25 April 2014, said that the bank does not comment on speculative news appearing in the media. Yes Bank further said that the bank keeps on evaluating capital raising alternatives, and has obtained approval of the board of directors to raise equivalent of $500 of fresh capital in the course of FY 2014-15. The investors/stock exchanges will be informed as and when capital raising plans are finalised in FY 2014-15, Yes Bank said.
L&T Finance Holdings fell 1.38%. With reference to the news item appearing in a financial daily on 23 April 2014 regarding L&T Finance Holdings is in talks on buying a Stake in Yes Bank, L&T Finance Holdings during market hours today, 25 April 2014, today said that the company, as a policy, does not comment on speculative news appearing in the media. As a part of its normal course of business, the company keeps evaluating opportunities on both organic and inorganic basis. The investors/stock exchanges would be informed as and when definitive developments take place, L&T Finance Holdings said.
L&T Finance Holdings' consolidated net profit rose 8.81% to Rs 186.54 crore on 24.89% rise in total income to Rs 1431.35 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 23 April 2014. The result was announced after market hours on Wednesday, 23 April 2014.
L&T Finance Holdings said that given the challenging environment the company continues to focus on building a quality portfolio by being cautious in credit selection and containing credit costs on existing assets through aggressive asset monitoring. While growth may be slightly muted in FY 2015, the company expects to maintain overall book growth at 15% to 20%, L&T Finance Holdings said. Improved margins with a stable opex, lower credit costs and increase in gearing are expected to result in better return ratios for the business, the company said.
Biocon rose 1.09% after the company at the time of announcing Q4 results said it expects FY 2015 to reflect continued business momentum with biosimilars, branded formulations and research services driving growth. The Q4 result was announced on Thursday, 24 April 2014. The stock market was closed that day, on account of Parliamentary elections in Mumbai constituency.
Biocon's consolidated net profit declined 54.51% to Rs 113.08 crore on 14.92% growth in total income to Rs 745.77 crore in Q4 March 2014 over Q4 March 2013.
Biocon's consolidated net profit declined 18.69% to Rs 413.72 crore on 15.57% growth in total income to Rs 2933.19 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Commenting on the company's financial performance, Kiran Mazumdar-Shaw, CMD, Biocon said, "Biocon ended fiscal 2014 on a strong note. We delivered 16% revenue growth along with a healthy EBITDA margin of 25%. This fiscal we recorded robust performance, an outcome of our efforts aimed at optimizing our product mix, augmenting capacities and driving operational efficiencies. We have delivered on our promise of affordable innovation through commercialization of Alzumab, an anti-CD6 novel biologic for Psoriasis; and CANMAb, the world's most affordable trastuzumab. We are pleased that a large number of patients benefit from these two products. We continue with our innovation led business strategy and look to deliver superior value to our stakeholders".
With regard to its future business outlook, Biocon said that it expects FY 2015 to reflect continued business momentum with biosimilars, branded formulations and research services driving growth. The progress in the company's development pipeline (across biosimilars and novel molecules) will see some of its molecules enter the clinic, Biocon said. The company said it continues to make investments in infrastructure and people to support its growth.
Biocon's board of directors at its meeting held on Thursday, 24 April 2014, recommended final dividend of Rs 5 per share for FY 2014.
Biocon's board of directors at its meeting held on Thursday, 24 April 2014, approved the induction of Dr Arun Chandavarkar, on to the board of Biocon. He has also been appointed CEO & Joint Managing Director of the company.
Welcoming Arun on the Board, Kiran Mazumdar-Shaw, CMD, Biocon said, "I am extremely happy to have Arun join the Board of Directors and take on the mantle of CEO & Joint MD. Arun has been a core member of the leadership team at Biocon and has worked very closely with me over the last 24 years. He has played a pivotal role in the evolution of Biocon and I am confident that, in his new role, he will build immense value for Biocon and its stakeholders".
Dr Arun Chandavarkar, CEO & Joint MD, Biocon said, "I am delighted and honoured to join the Board of Biocon. These are exciting times and I look forward to steering the company to the next level".
Wockhardt fell 1.98% after the company said the regulator in Himachal Pradesh has suspended the manufacture and sale of a product. The company made the announcement after market hours on Wednesday, 23 April 2014.
Wockhardt announced that the State Drug Controller, Himachal Pradesh, has suspended the manufacture, sale or distribution of Fixed Dose Combination (FDC) Dicyclomine Hydrochloride IP 10 milligram (mg), Tramadol Hydrochloride IP 50 mg and Acetamenophen IP 325 mg. Wockhardt did not give the reason for the suspension.
The company in order to revoke the said suspension is filing an appeal before the State Government under the provisions of applicable law. The product contributed less than 3% of the consolidated sales of Wockhardt during the financial year ended 31 March 2014 (FY 2014), the company said in a statement.
Strides Arcolab jumped 13.03% after the company announced before trading hours today, 25 April 2014, that its manufacturing facility in Bangalore has been approved by the US health regulator after a successful audit of the plant. The stock hit a 52-week high of Rs 559.20 in intraday today, 25 April 2014.
Organised retailer Future Retail galloped 8.26% to Rs 130.35. The stock hit a 52-week high of Rs 138 in intraday today, 25 April 2014.
UPL spurted 7.26% after consolidated net profit rose 29.41% to Rs 360.28 crore on 18.54% increase in total income to Rs 3365.23 crore in Q4 March 2014 over Q4 March 2013. The announced the results during trading hours today, 25 April 2014. The stock hit a record high of Rs 233.45 in intraday today, 25 April 2014.
Container Corporation of India climbed 6.32% to Rs 1023.30. The stock hit a 52-week high of Rs 1,036.95 in intraday today, 25 April 2014.
JSW Steel fell 0.2%. JSW Steel today, 25 April 2014, announced the launch of its Cold Roll Mill 2 (CRM-2) facility at Vijayanagar Works, Karnataka. With India on road to becoming a global hub for Automobiles, the demand for high end steel from the auto sector is likely to see an exponential growth, JSW Steel said. The new CRM-2 complex, with a production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated plant by configuration with capability to produce high strength and advanced high strength steel, both in uncoated and coated (galvanized and galvannealed Gland GA) categories and wider width upto 1870mm. The CRM-2 facility includes a Continuous Annealing Line, which is the first to start operations in India.
JFE Steel, which has a 15% stake in JSW Steel has been providing Technical assistance to develop various grades of auto steel, including steel for external panels for automobiles, to meet the high demand from both domestic and international arena, JSW Steel said in a statement.
JSW Steel has commissioned the phase-1 of CRM-2 consisting of 2.3 MTPA Pickling Line Coupled with Tandem Cold Mill (PLTCM), 0.95 MTPA Continuous Annealing Line (CAL-1) and 0.4 MTPA Continuous Galvanising Line (CGL). The phase-2 of the CRM-2 plant consisting of 0.95 MTPA CAL-2 is targeted to be commissioned during first half of FY 2016. The new plant will be the cornerstone of JSW Steel's growth story enhancing the share of value added products in the product basket of the company, JSW Steel said.
ACC fell 3.36% after consolidated profit after tax (PAT) fell 8.8% to Rs 399.85 crore on 2.1% increase in net sales to Rs 2967.14 crore in Q1 March 2014 over Q1 March 2013. The company announced the results on Thursday, 24 April 2014.
ACC said that profit after tax in Q1 March 2014 includes write back of tax of Rs 113 crore on conclusion of earlier years' assessments as compared to Rs 141 crore in this respect in the corresponding quarter of the previous year.
ACC said that in Q1 March 2014, the cement industry did not experience any significant improvement in the pace of infrastructure development and general construction. With no uptrend in the demand for cement, the company's sales volume in Q1 March 2014 was at about the same level as in the corresponding period of previous year. The company's EBITDA declined to Rs 425 crore in Q1 March 2014, from Rs 492 crore in Q1 March 2013.
ACC said that its manufacturing costs faced escalations in the cost of major inputs viz. coal, fly ash and gypsum. On the positive side, the company continued to derive benefit from its ongoing cost leadership efforts and increased sales volume of premium products. ACC added that while it does not foresee any significant improvement in the cement market in the near term, the company will continue to drive its cost leadership and customer excellence programmes to enhance sales realizations and improve margins.
Ambuja Cements declined 4.69%. The company's profit after tax rose 6.6% to Rs 520 crore on 3.7% increase in net sales to Rs 2640 crore in Q1 March 2014 over Q1 March 2013. The company announced the results on Thursday, 24 April 2014.
Ambuja Cements' operating earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1% to Rs 587 crore in Q1 March 2014 over Q1 March 2013.
Total sales volume (cement and clinker) rose 1.7% to 6.06 million tonnes in Q1 March 2014 over Q1 March 2013.
The company said that although macro-economic condition remains challenging, construction activity is expected to pick up pace after elections. Cement demand is likely to show modest growth, Ambuja Cements said. The company will continue to work on improving operational efficiencies, cost optimisation and focus on customer and commercial excellence. The company believes that these initiatives will preserve and grow its operating margins, it said in a statement.
Ambuja Cements said that during the quarter ended 31 March 2014, the High Courts of Gujarat and Delhi have approved the Scheme of Amalgamation of Holcim (India) with the company. The effect of the scheme will be given on the fulfillment of certain conditions precedent specified therein, the company said.
UltraTech Cement dropped 3.48%. UltraTech Cement's net profit rose 15.42% to Rs 838 crore on 8.18% increase in net sales to Rs 5832 crore in Q4 March 2014 over Q4 March 2013. Net profit fell 19.24% to Rs 2144 crore on 0.27% increase in net sales to Rs 20078 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013). The result was announced after market hours on Wednesday, 23 April 2014.
The net profit of Rs 2144 crore in FY 2014 includes tax provision reversal of Rs 95.56 crore related to earlier years.
On consolidated basis, UltraTech Cement's net profit declined 17.61% to Rs 2206.03 crore on 1.6% growth in total income to Rs 21974.92 crore in FY 2014 over FY 2013.
UltraTech Cement said that FY 2014 witnessed continuing pressure on input and logistics costs, given the increase in railway freight and a continuous hike in diesel prices. Although there was some relief on account of softening in prices of imported coal, the impact was negated by the depreciation of rupee, the company said in a statement.
Optimization of fuel mix and other initiatives helped in maintaining costs almost at the previous year levels, UltraTech Cement said in a statement. UltraTech Cement said its cement capacity currently stands at 53.95 MTPA with commissioning of new units during FY 2014.
UltraTech Cement said that the company has earmarked around Rs 10000 crore to be incurred for setting up the remaining grinding units, clinkerisation plants, cement terminals and other capex in the current round of expansion. These are likely to be commissioned in a phased manner by 2015, the company said. A judicious mix of internal accruals and borrowings has been used for funding the projects, UltraTech Cement said in a statement.
UltraTech Cement said in the long term cement demand is likely to grow over 8% in line with GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development, the company said in a statement.
Tata Teleservices (Maharashtra) surged 12.42% after Japan's NTT Docomo said it may sell its entire stake of about 26.5% in Tata Teleservices.
NTT Docomo Inc. announced today, 25 April 2014, that its board of directors resolved today, 25 April 2014, to exercise option for the sale of the company's entire stake (124.89 crore shares, or about 26.5% of outstanding shares) in Tata Teleservices (TTSL), a Docomo-affiliated company accounted for by the equity method, as soon as the conditions for such exercise are met.
Docomo, TTSL and Tata Sons, Tata Group's holding company, concluded a shareholder agreement when Docomo entered into a business alliance with TTSL in March 2009. Under the agreement, Docomo holds the right to require that its TTSL shares be acquired for 50% of the acquisition price, which amounts to Rs 7250 crore or a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets (the above-mentioned option), Docomo said in a statement.
In the event that TTSL fails to achieve these performance targets by the end of the fiscal year ended 31 March 2014, Docomo plans to exercise the above-mentioned right in or before June 2014. Docomo expects to sell its TTSL shares in accordance with the agreement. It is uncertain how the option will be performed, however, and Docomo is not able to predict how events will unfold. The effect on Docomo's corporate earnings for the fiscal year ending 31 March 2015 cannot be forecast at this time due to these uncertainties, the Japanese firm said.
Tata Teleservices, along with Tata Teleservices (Maharashtra), offer telecom services. Tata Teleservices (Maharashtra) (TTML) operates in telecom circles of Maharashtra (including Mumbai) and Goa. Tata Teleservices offers its telecom services in regions other than Maharashtra and Goa. As on 31 March 2014, NTT Docomo held 11.76% stake, Tata Teleservices held 36.54% stake, Tata Sons held 19.58% stake and Tata Power Company held 7.02% stake in TTML.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will issue the update forecasts in June 2014 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will also be issued.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 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.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European stocks dropped on Friday, 25 April 2014, as investors weighed corporate earnings and escalating tensions in Ukraine. Key benchmark indices in France, Germany and UK were off 0.22% to 0.82%.
Asian stocks declined on Friday, 25 April 2014, on fears of escalating tensions in Ukraine. Key benchmark indices in China, South Korea, Taiwan, Hong Kong and Singapore were off 0.5% to 1.92%. Key benchmark indices in Indonesia and Japan were up 0.13% to 0.17%.
In Japan, consumer prices rose 2.7% in April from a year earlier, the biggest jump since 1992, driven by a sales-tax increase and stimulus from the Bank of Japan. Inflation excluding fresh food accelerated from 1% in the previous month, while nationally the same price gauge rose 1.3% in March from a year earlier, statistics bureau data showed today, 25 April 2014.
Trading in US index futures indicated that the Dow could drop 23 points at the opening bell on Friday, 25 April 2014. US stock markets finished Thursday's volatile session generally higher as positive earnings and stronger-than-expected data outweighed worries over military escalation near Ukrainian border.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
US Secretary of State John Kerry on Thursday, 24 April 2014, warned that Russia is running out of time to comply with an accord to ease tensions in Ukraine, as Russian forces began new military exercises on the two countries' border. The agreement on disarming rebels and other measures signed April 17 in Geneva by Ukraine, Russia, the European Union and the US is on the brink of collapse. Kerry spoke hours after Russian President Vladimir Putin warned Ukraine against continuing an anti-separatist offensive.
Standard & Poor's Ratings Services today, 25 April 2014, cut its rating on Russia to one notch above junk, citing large capital outflows in the first quarter. S&P cut its rating one level, to BBB-minus from BBB. It kept its outlook on the country negative, where it has been since March 20, when the ratings firm lowered it from stable in light of heightened tension in Ukraine and the prospect of economic sanctions.
"In our view, the tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects," S&P wrote in its report.
S&P also said the downgrade reflects the risks that the large outflows seen in the first quarter, during which the size of Russia's financial account deficit was almost twice that of the current account surplus, would continue.
The Central Bank of Russia today, 25 April 2014, hiked its key rate to 7.5% from 7%, citing higher inflation risks. The bank said in a statement the risk of inflation exceeding the 5% target at the end of 2014 has "increased substantially" due to exchange-rate dynamics and "unfavorable conditions" in trade markets.
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