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Tata Motors, M&M in focus after July sales

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Last Updated : Aug 04 2014 | 11:09 PM IST

Tata Motors after market hours on Friday, 1 August 2014 said that its total sales declined 23% to 39,623 units in July 2014 over July 2013. Domestic sales of Tata commercial and passenger vehicles dropped 25% to 35,256 units in July 2014 over July 2013.

Tata Motors' sales of commercial vehicles declined 28% to 26,089 units in July 2014 over July 2013. LCV sales fell 39% to 16,364 units in July 2014 over July 2013. M&HCV sales remained flat at 9,725 units in July 2014.

Passenger vehicle sales fell 15% to 9,167 units in July 2014 over July 2013.

Exports rose 2% to 4,367 units in July 2014 over July 2013.

Mahindra & Mahindra (M&M) after market hours on Friday, 1 August 2014, reported 6% decline in its total tractor sales to 17,407 units in July 2014 over July 2013. Domestic sales declined 8% to 16,379 units in July 2014 over July 2013. Exports surged 47% to 1,028 units in July 2014 over July 2013. Exports include CKD units.

Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, M&M said, We have registered a sale of 16,379 units during July 2014. A delay in the arrival of monsoon has led to late sowing and has impacted farmer sentiment leading to lower sales of tractors in July. We do hope that the rains picking up in the month of July across the country will give a boost to the farmers' morale and the agriculture industry alike.

Separately, M&M on Friday, 1 August 2014, reported 4% drop in its total auto sales at 35,567 units in July 2014 over July 2013. Sales of Passenger Vehicle segment (which includes UVs and Verito) declined 5% to 14,708 units in July 2014 over July 2013. Domestic sales dropped 4% to 33,047 units in July 2014 over July 2013. Sales of four-wheeler commercial segment declined 9% to 12,472 units in July 2014 over July 2013. Three-wheeler sales rose 15% to 5,142 units in July 2014 over July 2013. Exports dropped 3% to 2,520 units in July 2014 over July 2013.

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Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), M&M said, The overall sales during the last month was subdued and the market remained challenging with the monsoon now setting in across the country as well as the ensuing festival season. We expect positive sentiments in the coming months resulting in enhanced demand for our products. We are happy that our first global SUV, the XUV500, has crossed the milestone of 1 lakh sales, this month, which is less than three years since its launch and we thank our customers for it.

TVS Motor Company recorded 32% growth in sales to 2.03 lakh units in July 2014 over July 2013.

Grasim Industries' consolidated net profit fell 20.14% to Rs 487.13 crore on 15.93% rise in total income to Rs 8314.07 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Saturday, 2 August 2014.

DLF said before market hours that Zola Real Estate has, with effect from 1 August 2014, ceased to be a step down subsidiary/associate of DLF, pursuant to issue of fresh equity to My Home Constructions. Zola Real Estate, through its 100% subsidiary, owns a land parcel in Raidurg, Hyderabad.

Bharat Heavy Electricals said before market hours that on 2 August 2014, it has received certified copy of order of Appellate Authority for Industrial & Financial Reconstruction (AAIFR) on appeals of Bharat Heavy Plate & Vessels (BHPV) Officers' Association, BHPV U/V Series (Ex-Trainee) and BHPV Retired & VR Employees Welfare Society setting aside the BIFR order sanctioning the Modified Scheme envisaging merger of BHPV and remanding the matter back to Board for Industrial & Financial Reconstruction (BIFR) with certain directions. Bhel is in the process of examining the AAIFR order for most appropriate action in the matter. BIFR had sanctioned the Modified Scheme envisaging merger of BHPV with Bhel vide their order dated 29 August 2013 which was filed with respective Registrar of Companies (RoC) at Hyderabad and at Delhi on 30 August 2013 on which date the merger became effective.

ONGC after market hours on Friday, 1 August 2014 in a clarification issued with regard to news item titled ONGC mulls OMPL-MRPL merger - Deloitte appointed to value JV" said that there is no such proposal pending consideration of the Board and therefore the company is unable to comment further on the issue.

Tata Power Company (Tata Power) after market hours on Friday, 1 August 2014 said that its wholly owned subsidiary Bhira Investments had issued $450 million fixed to floating rate subordinated notes, in April 2011. The Notes were secured by a corporate guarantee issued by Tata Power and were eligible for 50% equity credit by rating agencies.

Consequent to the changes to the treatment of the above notes in the rating methodology, Bhira has exercised its right to redeem the notes and has issued a notice for early redemption to the Trustee on 31 July 2014. The record date for the redemption is proposed to be at 1 September 2014, Tata Power said.

The redemption will be financed by way of loans raised by Bhira, which is also being concurrently taken care of, the statement said.

Mr. Anil Sardana, CEO and MD, Tata Power said, The redemption of the hybrid notes and replacing it with a cheaper funding option will lead to substantial interest savings for the Tata Power Group and this is in line with the company's strategy to optimize its funding sources and lowering interest costs.

Motherson Sumi Systems (MSSL) on Saturday, 2 August 2014 said it has successfully closed the deal for acquiring wiring harness business of Stoneridge Inc. in a record time on receipt of necessary regulatory approvals.

As announced previously on 27 May 2014, MSSL had signed an agreement to acquire the wiring harness business of Stoneridge Inc. through asset purchase at consideration of $65.7 million on no cash no debt basis. The total cash outlay of $71.38 million includes increase in working capital and cash/bank balances subject to post-closing adjustments, MSSL said in a statement.

The addition of new manufacturing facilities would enable MSSL to service the growing requirement of the customers in the region, MSSL said. With this acquisition, MSSL now has over 45 plants related to wiring harness business, it added.

Talking on the development, Mr. V.C. Sehgal, Group Chairman said, We welcome the entire team of wiring harness business joining us in North America today. The business has strong synergies with MSSL's existing business, products, customer segments and operations. Our endeavour would be to add a lot of value in the customer experience, products offered & services. This acquisition reaffirms our commitment to our customers and reiterates our vision of being a globally preferred solutions provider.

HCL Technologies after market hours on Friday, 1 August 2014 said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).

Marico, Oriental Bank of Commerce, Petronet LNG, Power Grid Corporation of India and Tata Communications will announce their quarter ended June 2014 earnings today, 4 August 2014.

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First Published: Aug 04 2014 | 9:05 AM IST

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