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Tata Motors falls on weak Q4 result

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Last Updated : May 30 2014 | 11:56 PM IST

Key benchmark indices slipped into the red from positive terrain in early trade. The barometer index, the S&P BSE Sensex, was down 5.65 points or 0.02%, off about 125 points from the day's high and up close to 20 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Weakness in Asian stocks weighed on sentiment adversely.

Tata Motors fell on weak Q4 result. Cipla dropped on poor Q4 result. ONGC rose on strong Q4 result. PowerGrid Corporation of India gained on decent Q4 result. Reliance Industries (RIL) gained after the Board of RIL approved funding of upto Rs 4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments (NW18) including its subsidiary TV18 Broadcast (TV18).

Foreign institutional investors (FIIs) sold shares worth a net Rs 522.90 crore on Thursday, 29 May 2014, as per provisional data from the stock exchanges.

At 9:35 IST, the S&P BSE Sensex was down 5.65 points or 0.02% to 24,228.51. The index fell 22.91 points at the day's low of 24,211.24 in early trade. The index rose 119.44 points at the day's high of 24,353.59 in early trade.

The CNX Nifty was down 4.20 points or 0.06% to 7,231.45. The index hit a low of 7,235.65 in intraday trade. The index hit a high of 7,272.50 in intraday trade.

The BSE Mid-Cap index was up 63.79 points or 0.76% to 8,498.19. The BSE Small-Cap index was up 85.90 points or 0.96% to 9,071.27. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 903 shares rose and 344shares fell. A total of 30 shares were unchanged.

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Among the 30-share Sensex pack, 23 stocks rose and rest of them fell.

NMDC gained 1.78% ahead of its Q4 results today, 30 May 2014.

Reliance Industries (RIL) gained 0.65% after the Board of RIL after market hours on Thursday, 29 May 2014 approved funding of upto Rs 4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments (NW18) including its subsidiary TV18 Broadcast (TV18).

NW18 is the owner of a suite of premier digital internet properties, e-commerce businesses and differentiated broadcast content.

IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78% in NW18 and 9% in TV18 and to acquire shares tendered in the Open Offers.

The company made Open Offers to public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia. RIL would be a Person Acting in Concert to the Open Offers. This acquisition will differentiate Reliance's 4G business b y providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties.

This suite includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNN IBN, CNBC TV18, IBN7, CNBC Awaaz.

RIL has made an open offer to public shareholders of Infomedia Press to acquire of up to 1.3 crore shares of Infomedia Press at a price of Rs 3.00 per share aggregating to Rs 3.92 crore.

RIL has made an open offer to public shareholders of TV18 Broadcast to acquire of up to 44.65 crore shares of TV18 constituting 26.0% of the Emerging Voting Capital at a price of Rs 30.18 per share aggregating to Rs 1347.57 crore.

RIL has also made an open offer to public shareholders of Network18 Media & Investments to acquire of up to 22.99 crore shares of Network18 constituting the remaining 21.96% of the Emerging Voting Capital at a price of Rs 41.04 per share aggregating to Rs 943.70 crore.

Mahindra & Mahindra (M&M) shed 0.19% ahead of its Q4 result today, 30 May 2014. The company said after market hours on Thursday, 29 May 2014 that India Ratings & Research (lnd-Ra, a Fitch Group Company) has assigned a Long-Term Issuer Rating of 'IND AAA' to M&M, with a 'Stable' outlook. The rating indicates highest degree of safety regarding timely servicing of financial obligations.

PowerGrid Corporation of India gained 1.08% on good Q4 result. The company's net profit rose 5.98% to Rs 1175.84 crore on 15.71% rise in total income to Rs 4183.64 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

Tata Power Company gained 0.1%. The company reported a consolidated net loss of Rs 145.33 crore in Q4 March 2014 compared with consolidated net profit of Rs 181.36 crore in Q4 March 2013. Total income fell 1.92% to Rs 8897.56 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

DLF dropped 2.11%. The company reported a consolidated net profit of Rs 219.68 crore in Q4 March 2014 compared with consolidated net loss of Rs 4.19 crore in Q4 March 2013. Total income rose 8.74% to Rs 2521.60 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

ONGC rose 2.2% on strong Q4 result. The company's net profit surged 44.3% to Rs 4889 crore on 2.3% decline in gross revenue to Rs 21403 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

ONGC's net profit rose 5.6% to Rs 22095 crore on 1.1% growth in gross revenue to Rs 84201 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

The impact on ONGC's net profit due to under-recovery discount to OMCs rose 10.94% to Rs 31524 crore in FY 2014 over FY 2013.

On consolidated basis, ONGC's net profit rose 9.4% to Rs 26507 crore on 7.5% growth in turnover to Rs 178205 crore in FY 2014 over FY 2013.

Commenting on the company's financial performance, ONGC CMD Mr. D K Sarraf said, "Our focus on our Long Term Strategy Perspective Plan 2030 has generated momentum. This fiscal's score card showcases our record performance in Reserve accretion, sustainability and sound financial management. We would renew our focus on the key performance indicators that will guide ONGC to reach greater heights in the coming years".

Cipla dropped 0.2% on poor Q4 result. The company's consolidated net profit declined 6% to Rs 261 crore on 27% growth in sales to Rs 2429 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

The company's EBITDA declined 4% to Rs 409 crore in Q4 March 2014 over Q4 March 2013.

Cipla said that material cost increased at 41.3% of net sales in Q4 March 2014, from 37% of net sales in Q4 March 2013.

Domestic sales rose 19.3% to Rs 908 crore in Q4 March 2014 over Q4 March 2013. The growth in domestic sales was largely on account of growth in respiratory, anti-infective and cardiac therapies, Cipla said in a statement.

Exports of formulations rose 30% to Rs 1282 crore in Q4 March 2014 over Q4 March 2013. Exports of APIs rose 36.7% to Rs 239 crore in Q4 March 2014 over Q4 March 2013. The growth in export revenues was primarily due to growth in anti-retroviral, anti-asthma and anti-allergic segments, Cipla said in a statement.

Cipla said that the current year figures include the relevant results of Cipla's subsidiaries from the date they became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable.

Tata Motors fell 2.74% on weak Q4 result. The company's consolidated net profit declined 0.68% to Rs 3918 crore on 16.6% growth in revenue (net of excise) to Rs 65317 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.

The top line during the quarter grew despite a weak operating and economic environment in the standalone business which was more than offset by strong demand for new products, growth in volumes, richer product mix and richer geographic mix at Jaguar Land Rover (JLR), Tata Motors said in a statement.

Tata Motor's consolidated net profit surged 41.42% to Rs 13991 crore on 23.3% growth in revenue (net of excise) to Rs 232834 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

JLR's wholesale and retail volumes grew by 15.5% and 15.9%, respectively in FY 2014 over FY 2013.

JLR's net profit rose 19.09% to GBP 449 million on 5.9% growth in revenue to GBP 5349 million in Q4 March 2014 over Q4 March 2013. Operating profit (EBITDA) stood at GBP 920 million, up 12.2% as compared to GBP 820 million during the corresponding quarter last year. Operating margin stood at 17.2%, up 100 bps as compared to corresponding quarter last year reflecting richer product and geographic mix, with increased volumes in emerging markets, Tata Motors said. The Profit before tax (PBT) grew to GBP 576 million (GBP 507 million in the corresponding quarter last year) reflecting higher operating profit (EBITDA), favourable exchange revaluation on loans and unrealized hedges, partially offset by higher depreciation and amortisation as well as higher finance expense, Tata Motors said in a statement.

JLR's net profit surged 54.77% to GBP 1879 million on 22.82% growth in revenue to GBP 19386 million in FY 2014 over FY 2013. The operating profit and margin stood at GBP 3393 million and 17.5% respectively reflecting increase in volumes, richer product mix supported by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, richer geographic mix, with increased volumes in emerging markets partially offset by less favourable operational foreign exchange net of realized hedges in Q4 March 2014. PBT were GBP 2501 million (GBP 1674 million for the corresponding period last year).

L&T gained 2.03% ahead of its Q4 results today, 30 May 2014.

Bharat Heavy Electricals' (Bhel) rose 1.21% after announcing Q4 result. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours on Thursday, 29 May 2014. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

On a consolidated basis, Bhel's net profit fell 47.66% to Rs 3502.86 crore on 17.68% fall in total income to Rs 41192.43 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Bhel said that consequent to merger of Bharat Heavy Plates & Vessels (BHPV) with the company with effect from 30 August 2013, the financial results of HPVP unit (erstwhile BHPV) have been included in the above results. In view of this, figures for the current reporting period are not comparable with the figures in corresponding period of previous year.

Prime Minister Narendra Modi on Thursday vacated the Vadodara Parliamentary seat, retaining the Varanasi Lok Sabha seat. Shri Narendra Modi sent in his resignation as a Member of Parliament from Vadodara to Speaker of Lok Sabha. Shri Narendra Modi was elected from both the Varanasi and Vadodara parliamentary constituencies in the recent Lok Sabha elections.

At a meeting of his Cabinet on Thursday Prime Minister Narendra Modi asked his ministers to prepare a list of issues that they will take up in the first 100 days in office, with a focus on efficiency, delivery systems and implementation. The PM also has a list of top 10 priorities, which include among others to remove hurdles in economic growth which includes containing inflation as a priority, to prioritize education, energy and water, to bring in reforms in infrastructure, to revive growth and investor confidence, to provide a people-oriented government and governance, to ensure time-bound implementation of policy, to maintain consistency in policy, to promote e-auctioning in government tenders and other government work, to improve inter-ministerial co-ordination, to build confidence in the bureaucracy and to empower and provide freedom to the bureaucracy.

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. President Pranab Mukherjee will also address a joint sitting of the two Houses during the session. 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.

On macro front, the government will announce data on gross domestic product (GDP) for Q4 March 2014 and the year ended 31 March 2014 (FY 2014) today, 30 May 2014. India's GDP grew 4.7% in Q3.

The Reserve Bank of India (RBI) undertakes a 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.

Asian stocks edged lower in choppy trade on Friday. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were off 0.09% to 0.90%. China's Shanghai Composite was flat. Hong Kong's Hang Seng rose 0.28%.

Price growth in Japan excluding fresh food rose to 3.2% in April, up from 1.3% in March.

US stocks rose for the fifth time in six days on Thursday, driving the Standard & Poor's 500 Index to a record, after Tyson Foods Inc. offered to buy Hillshire Brands (HSH) Co. and investors speculated the economy is improving following a contraction in the first quarter.

US economy suffered its first contraction since 2011 last quarter. Gross domestic product fell at a 1% annualized rate revised Commerce Department figures showed in Washington. Stockpiles grew at less than half the pace than in the final three months of 2013, lopping 1.6 percentage points off GDP while businesses cut back on investment. Demand picked up entering the second quarter, giving weight to the Federal Reserve's view that the economy is recovering.

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.

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First Published: May 30 2014 | 9:37 AM IST

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