Coal India (CIL) will be in focus after the government successfully completed divestment of 10% stake in the state-run coal major through the stock exchanges mechanism on Friday, 30 January 2015. As against the total offer size of 63.16 crore shares of Coal India, total bids received were for a quantity of 67.5 crore shares across all categories. The oversubscription to the total quantity was around 5%. The CIL disinvestment has attracted the largest ever participation by foreign institutional investors in a Government Offer for Sale (OFS), according to a statement issued by the finance ministry after trading hours on Friday, 30 January 2015. With this divestment, the Government of India's (GoI) stake in CIL would come down to 79.65%, from 89.65%. The GoI has raised Rs 22557.63 crore from the CIL disinvestment.
Shares of automobile companies will be in focus as auto companies start unveiling monthly sales volume data for January 2015.
Shares of aviation firms and public sector oil marketing companies (PSU OMCs) will be watched after aviation turbine fuel (ATF), or jet fuel, price was cut by a steep 11.3% on 1 February 2015. The price of ATF in Delhi was cut by Rs 5,909.90 per kilolitre (kl), or 11.27%, to Rs 46,513.02 per kl. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.
Bharat Forge, Cummins India and UPL will unveil their October-December 2014 results today, 2 February 2015.
On a consolidated basis, Tech Mahindra's net profit rose 11.9% to Rs 805 crore on 4.8% increase in revenue to Rs 5752 crore in Q3 December 2014 over Q2 September 2014. Tech Mahindra said that net profit includes special adjustment of Rs 28.50 crore of half year ended 30 September 2014 profits of Mahindra Engineering Services (MESL) in Q3 December 2014 numbers. The Q3 result was announced after market hours on Friday, 30 January 2015.
Tech Mahindra's operating profit (earnings before interest, taxation, depreciation and amortization) {EBITDA} rose 5.7% to Rs 1160 crore in Q3 December 2014 over Q2 September 2014.
Tech Mahindra's board of directors at its meeting held on Friday, 30 January 2015, has considered and approved for issue of one bonus equity share for every one equity share and also approved 2-for-1 stock split.
Our continued focus on operational excellence is yielding tangible results for our stakeholders. said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra.
We will make greater investments into Digital Transformation and ride the wave of opportunities that spot the business landscape Today said CP Gurnani, MD & CEO, Tech Mahindra.
Power Grid Corporation of India's board has approved investment worth about Rs 5000 crore for five of its projects. The board approved an investment worth Rs 87.27 crore for 'Bus Reactors in Northern Region (Phase-II)', with commissioning schedule of 30 months from the date of investment approval. It approved an investment worth Rs 268.80 crore for 'Transmission system associate with Kishenganga HEP', with commissioning schedule of 1 July 2017 for Kishenganga - Amargarh 220kV D/c and 1st March, 2018 for Kishenganga-Wagoora 220 kV D/c line. For Transmission system associated with Tehri Pump Storage Plant (PSP), Rs 871.62 crore has been sanctioned, while for Wardha-Hyderabad 765 kV link, an estimated Rs 3662.02 crore has been approved. For the system strengthening in southern region - XXIII, an estimated Rs 203.28 crore has been approved.
Grasim Industries' consolidated net profit rose 0.6% to Rs 334 crore on 13% growth in net revenue to Rs 8036 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 31 January 2015.
Grasim Industries' profit before interest, depreciation, and taxation (PBIDT) rose 10% to Rs 1260 crore in Q3 December 2014 over Q3 December 2013.
Grasim Industries said that the implementation of growth plans has led to a significant capacity increase in both the VSFand cement businesses. At the Greenfield VSF project at Vilayat, 99K TPA capacity has been commissioned during the year, Grasim Industries said. With acquisition of Jaypee cement units in Gujarat, the cement capacity increased by 4.8 million tonnes per annum (MTPA), it said. Cement grinding capacity of 1.4 MTPA went on-stream in Karnataka, Grasim added. 182,500 TPA caustic soda plant and 51,500 TPA epoxy plant commissioned last year are also being ramped up. Consequently, company's financial performance has been encouraging, Grasim Industries said in a statement.
Grasim Industries said that it has maintained its profit after tax (PAT) in Q3 December 2014 even after providing for additional interest and depreciation cost on the acquired cement units. The company is on track to ramp up the operations and achieve targeted efficiencies at these units as anticipated, to deliver planned profitability, Grasim Industries said in a statement.
Grasim Industries' subsidiary UltraTech Cement has entered into a definitive agreement to acquire 2 units of Jaiprakash Associates in Satna cluster having a capacity of 4.9 MTPA with 180 megawatts (MW) power plants. This will propel the cement business capacity in India from about 60 MTPA to about 65 MTPA. On completion of brownfield expansion under implementation, the domestic capacity will increase to about 71 MTPA in 2016, Grasim Industries said. The units proposed to be acquired have surplus clinker capacity to augment cement capacity by a further 1.8 to 2.5 MTPA with investments in grinding units, Grasim Industries said in a statement.
In exchange of the above business, UltraTech shall issue non-convertible debentures worth Rs 4538 crore and non-convertible preference shares worth Rs 10 lakh and shall take over Rs 626.50 crore of debt and negative working capital of Rs 160.50 crore, Grasim Industries said in a statement.
Grasim Industries said that the transaction is subject to the approval of shareholders and creditors, sanction to the scheme of arrangement by the High Courts, approval of the Competition Commission of India and other statutory approvals.
With regard to the future business outlook Grasim Industries said that the VSF sector will continue to face head winds for some more time due to the over capacity and sharp reduction in price of cotton and polyester. The slowdown in new capacity additions in China should lead to an improvement in industry utilization which augurs well for the company, Grasim said. The focus on cost optimisation will continue relentlessly, it added. The new plant at Vilayat with higher share of speciality product should help in facing the challenge, Grasim Industries said in a statement.
In cement, demand growth in the long term is likely to be over 8%, Grasim said. The key drivers will be revival of infrastructure projects supplemented by regulatory reforms and improvement in housing demand with the interest rate cut, Grasim added. The company with its existing and proposed capacity is well placed to benefit from the accelerated growth in the sector, Grasim Industries said in a statement.
With additional capacity coming on stream in both the businesses, the company will further consolidate its leadership position, Grasim said. The company is well-poised to benefit from the expected upturn in the economy, it added.
Divi's Laboratories' net profit rose 0.91% to Rs 221 crore on 14.8% growth in total income to Rs 791 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 31 January 2015. During Q3 December 2014, the company registered a forex gain of Rs 11 crore. There was a forex loss of Rs 5 crore in Q3 December 2013. Divi's Laboratories said it has capitalized fixed assets aggregating to Rs 143 crore in Q3 December 2014.
Thermax's net profit rose 14.34% to Rs 76.20 crore on 11.28% growth in total income to Rs 1153.65 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours on Friday, 30 January 2015. The company's operating revenue rose 13% to Rs 1147 crore in Q3 December 2014 over Q3 December 2013.
Thermax's order intake declined 10.03% to Rs 1228 crore in Q3 December 2014 over Q3 December 2013. The drop in order booking is attributable to the domestic segment where enquiry inflow and finalisation remained subdued, the company said in a statement.
Thomas Cook (India)'s consolidated net profit rose 38.3% to Rs 18.17 crore on 58.8% growth in net sales to Rs 734.90 crore in Q4 December 2014 over Q4 December 2013. The result was announced after market hours on Friday, 30 January 2015.
Thomas Cook (India)'s consolidated net profit rose 46.5% to Rs 91.16 crore on 85.8% growth in net sales to Rs 2373.94 crore in the year ended 31 December 2014 over the year ended 31 December 2013.
Commenting on the company's financial performance, Mr. Madhavan Menon, Managing Director, Thomas Cook (India) said, The 12 months ended 31 December 2014 has seen significant business growth across the diversified Thomas Cook India Group, with an overall income from operations increase of 84% and profit after tax of 60%. The three pronged drive by the company - retail focus, product innovation and efficient working capital management has helped deliver this performance.
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