Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 13 points at the opening bell. The government will unveil data on gross domestic product (GDP) for Q3 December 2013 after trading hours today, 28 February 2014. Asian stocks were mixed on Friday, as the Federal Reserve chair Janet Yellen's comments reiterated her confidence in the US economy, but tensions in Ukraine weighed on investor sentiment.
Mahindra & Mahindra (M&M)'s consolidated net profit fell 1.93% to Rs 1230 crore in Q3 December 2013 over Q3 December 2012. Consolidated gross revenue and other income rose 8.5% at Rs 20679.90 crore in Q3 December 2013 over Q3 December 2012. On a like to like basis, consolidated revenue rose 11.7% in Q3 December 2013 over Q3 December 2012. M&M announced the consolidated financials after trading hours on Wednesday, 26 February 2014.
The net profit after tax and minority interest for Q3 December 2013 includes a gain of Rs 256.5 crore that accrued on completion of the first part of the transaction in the auto components business with CIE Automotive S.A., Spain. The net profit after tax and minority interest for Q3 December 2012 included a deemed divestiture profit of Rs 275.6 crore as a result of dilution of (M&M)'s holding due to a QIP issue by its subsidiary Mahindra & Mahindra Financial Services, M&M said. Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 31 December 2013, the company said.
Mahindra CIE Automotive (formerly known as Mahindra Forgings) and Mahindra Hinoday Industries ceased to be subsidiaries effective 4 October 2013, on account of their divestment as part of the transaction in the Auto Components business with CIE Automotive S.A., Spain, hence their revenues and profits are consolidated only upto Q2 September 2013, M&M said.
The performance of Tech Mahindra with a 34% growth in consolidated revenues and a 214% increase in profits is particularly noteworthy. Ssangyong Motor Company, South Korea grew consolidated revenues by 19% (in Korean Won terms) in Q3 December 2013 and also significantly reduced the loss as compared to Q3 December 2012. Ssangyong Motor Company for the Q3 December 2013 would have posted a profit but for the Supreme Court decision on the ordinary wage issue in South Korea which has adversely affected their profit, M&M said.
The M&M group as on 31 December 2013 comprised of 119 subsidiaries, 7 joint ventures and 12 associates.
Maruti Suzuki India (MSIL) made an announcement on 28 January 2014 regarding its board decision on Gujarat project. Following the announcement, there have been queries and request for clarification from investors and media related to pricing and funding of capacity expansion in the proposed contract manufacturing arrangement.
Based on the queries, MSIL on Thursday, 27 February 2014 clarified that the Suzuki Motor Corporation's subsidiary in Gujarat (Sub) would operate on the basis that while it would not make any losses, it would also not accumulate any cash surpluses.
The cost of production of vehicles, produced by the Sub, would be calculated in an identical manner to that followed by MSIL in Haryana, and as would have been done if the Gujarat project had been executed by a 100% subsidiary of MSIL. This cost may be called 'C', and would not include return on investment and profits, MSIL said in a statement.
In Haryana, MSIL marks up 'C', to generate profits, which includes the return on capital employed, to arrive at the ex-factory sale price to its dealers. The amount of the mark up is determined, at all times, by market conditions. The amount of this mark up may be called 'P'. The sale price to dealers is thus C+P, the company said.
The capital expenditure needs of the Gujarat Sub would be met by the depreciation amount available with the Sub, by an amount generated as net surplus from the car pricing and by SMC infusing fresh equity, to the extent necessary. The amount of surplus added to 'C' would be such as would ensure that the total ex-factory price of cars made available to MSIL remains less than C+P. MSIL would sell the cars to dealers at C+P, the company added.
The capital expenditure needs of the Sub would be determined jointly by MSIL and the Sub, consistent with the production needs of MSIL from the Gujarat project, MSIL said.
Further, if the contract manufacturing agreement expires, and in case is not extended by mutual consent, the assets of the Gujarat Sub would be transferred to MSIL at a fair value to be determined by independent valuation, the company said.
Tata Power Company before market hours today, 28 February 2014 said that the company's Board of Directors at its meeting held on Thursday, 27 February 2014, has approved raising funds upto Rs 2000 crore by way of a rights issue of equity shares, subject to all applicable statutory and regulatory approvals.
The terms and conditions of the Rights Issue including the rights entitlement ratio, the issue price, issue size, record date, timing of the Rights Issue and other related matters shall be decided subsequently by a duly constituted Committee of the Board, Tata Power Company said.
Meanwhile, Tata Power Company, through its Indonesian subsidiary, PT Sumber Energi Andalan Tbk (SEA) has signed with the Bakrie group entity for the sale of SEA's 30% stake in PT Mitratama Perkasa (MP). The aggregate consideration for SEA's 30% stake in MP is approximately $120 million. The announcement was made on Thursday, 27 February 2014.
Prior to the sale, MP would be restructured to hold infrastructure assets in relation to PT Arutmin Indonesia (Arutmin) and Tata Power, through its subsidiaries, would continue to hold 30% stake in PT Kaltim Prima Coal (KPC) related infrastructure assets, Tata Power Company said in a statement.
It is a part of the $500 million Arutmin agreement which was announced by the company on 31 January 2014 regarding the sale of Arutmin and its associated infrastructure assets. Tata Power Company targets to complete the sale of MP in the next two months subject to getting the requisite approvals, the company said.
Jaiprakash Associates and Ranbaxy Laboratories will be replaced by Tech Mahindra United Spirits in the 50-unit CNX Nifty index. As per the changes announced on Thursday, 27 February 2014 by India Index Services & Products, which maintains the index, the changes will take effect on 28 March 2014.
Shares of steel makers, sponge iron makers and cement manufacturers will be in focus after the Ministry of Coal after trading hours on Wednesday, 26 February 2014, said that the government has initiated auction of coal blocks by inviting applications for the first time for allocating coal blocks through competitive bidding for specified end uses. The Ministry of Coal has offered three coal blocks for the auction, with one coal block each for use in steel making, for use in sponge iron manufacturing and for use in cement production. Two of the coal blocks are located in Jharkhand and one in neighbouring West Bengal. The bidders for the coal blocks are required to bid above the prescribed floor price, the coal ministry said.
Power Grid Corporation of India after market hours on Wednesday, 26 February 2014 said that the company's board of directors at its meeting held on Wednesday, 26 February 2014, has declared an interim dividend of Rs 1.27 per share for the year ending 31 March 2014. The date on which interim dividend shall be paid/dispatched is 19 March 2014, the company said.
Titan Company after market hours on Wednesday, 26 February 2014 said that the company has entered into a joint venture agreement on Wednesday, 26 February 2014 with Montblanc Services B.V, Netherlands for establishing operations in India for carrying on single brand retail trade.
Tech Mahindra GmbH, Dusseldorf, a wholly-owned German subsidiary of Tech Mahindra, on Thursday, 27 February 2014 announced that it has signed an agreement with BASF Business Services Holding GmbH to acquire its business with third party customers.
This includes the 100%-owned subsidiary BASF Business Services Consult GmbH, based in Hamburg. BASF Business Services Holding GmbH will in future focus on providing information services, supply chain operations and business process management for BASF Group.
Legal closing of the transaction is expected to happen in the first quarter of FY 2015. All 60 employees of BASF Business Services Consult GmbH will be transitioned to Tech Mahindra as part of this transaction, Tech Mahindra said.
BASF Business Services Holding GmbH (earlier called as BASF IT Services Holding GmbH) is an indirect wholly owned group company of BASF SE. The innovative and competitive service portfolio ranges from consulting, development and operation of IT systems to the design and optimization of business processes throughout the value chain.
Vikram Nair, Head - Europe (Enterprise), Tech Mahindra, said, This is a strategic move and a testimony of our commitment to the region. It will bring us closer to our customers and will help us to deliver holistic solutions. I'm confident that the acquisition will spur rapid growth in this region.
This acquisition will see the creation of a strong ICT player in the region with strengths in Application and Infrastructure Business Services. The transaction will be carried out by Tech Mahindra GmbH, a wholly owned subsidiary of Tech Mahindra.
Rural Electrification Corporation (REC) after market hours on Wednesday, 26 February 2014 said that it has filed an amendment in the Shelf Prospectus dated 26 August 2013 for increasing the shelf limit to Rs 6000 crore from Rs 5000 crore, with the office of Registrar of Companies (RoC), NCT of Delhi and Haryana on 25 February 2014. The company has also filed Prospectus Tranche-ll for raising an amount of Rs 250 crore with an option to retain over-subscription upto Rs 809.3958 crore aggregating upto Rs 1059.3958 crore through public issue of tax free secured redeemable non-convertible bonds of face value of Rs 1000 crore, in the nature of debentures, during the fiscal year 2014, with the RoC, NCT of Delhi and Haryana on 25 February 2014. Further the Company has informed that, the public issue of tax free secured redeemable non-convertible bonds, in the nature of debentures of REC will open on 28 February 2014 for subscription and is scheduled to close on 14 March 2014.
In a separate announcement, REC announced sale and transfer of equity shares of NRSS XXXI(A) Transmission and NRSS XXXI(B) Transmission held by REC Transmission Projects Company (RECTPCL) to Power Grid Corporation of India and Essel Infraprojects, respectively.
REC announced that its wholly owned subsidiary, RECTPCL, was appointed by the Ministry of Power (MoP) as the bid process coordinator inter alia for the purpose of selection of bidder as transmission service provider to establish transmission system for northern region system strengthening scheme, NRSS- XXXI(Part A) and (Part B) through tariff based competitive bidding process.
Accordingly, RECTPCL formed two project specific special purpose vehicles (SPVs) namely NRSS- XXXI(A) Transmission and NRSS- XXXI(B) Transmission, as its wholly owned subsidiary companies, with authorized and paid up capital of Rs 5 lakh divided into 50,000 equity shares of Rs 10 each to be transferred to the successful bidder selected through tariff based competitive bidding process.
Further, the board of directors of REC in its meeting held on 14 February 2014 approved the sale and transfer of 50,000 equity shares each of NRSS XXXI(A) Transmission and NRSS XXXI(B) Transmission, presently held by RECTPCL and its nominees, to the selected bidder, substantially upon the terms and conditions of the share purchase agreements to be executed between the RECTPCL, concerned SPVs and respective successful bidders, subject to obtaining necessary approval from the Ministry of Power, Government of India.
In response to the request for proposal for this project, RECTPCL received financial bids and based on the recommendations of the bid evaluation committee, the board of directors of RECTPCL in its meeting held on 25 February, 2014, approved the name of Power Grid Corporation of India as successful bidder for issuance of letter of intent to establish transmission system for northern region system strenghthening scheme, NRSS XXXl(Part A) and Essel lnfraprojects as successful bidder for issuance of letter of intent to establish transmission system for northern region system strenghthening scheme, NRSS- XXXl(Part B)
Multi Commodity Exchange of India announced after market hours on Wednesday, 26 February 2014 a substantial reduction in transaction charges of agri-commodities with an aim to reduce cost of trading for the agri commodity value chain participants, effective 26, February 2014. For agri-commodity contracts, MCX has reduced the fee by 70% to Rs 0.75 for every Rs 1 lakh of turnover for members generating monthly average daily turnover volume (ADTV) of up to Rs 20 crore, and Rs 0.50 per lakh on incremental turnover above Rs 20 crore. In the case of non-agri commodities, MCX has reduced the transaction charges to Rs 2.10 for every Rs 1 lakh of turnover for members generating ADTV of up to Rs 350 crore and Rs 1.40 per lakh on incremental turnover above Rs 350 crore.
Earlier, for both agri and non-agri commodities, MCX used to charge Rs 2.50 for every Rs 1 lakh of turnover for members generating ADTV of upto Rs 250 crore, Rs 1.25 per lakh on incremental turnover above Rs 250 crore to Rs 1000 crore; and Rs 1 per lakh on incremental turnover above Rs 1000 crore.
Dr. Manoj Vaish, MD & CEO, MCX said This move by MCX would make trading in agri-commodities more accessible for the farm community and other participants in commodity market ecosystem, and improve overall hedging efficiency. This is an important incremental step towards market inclusion.
MCX has revised the transaction charges in the wake of FMC's directive on 13 February 2014 to introduce differential transaction charges.
Bosch's net profit fell 19.22% to Rs 138.98 crore on 0.44% rise in total income to Rs 2255.13 crore in Q4 December 2013 over Q4 December 2012. The result was announced on Thursday, 27 February 2014.
Bosch said that the board of directors of the company at its meeting held on 27 February 2014, inter alia, have recommended a dividend of Rs 55 per share for the year ended 31 December 2013 (previous year Rs 60 per share), subject to approval of Shareholders .
Bosch said that the Register of Members & Share Transfer Books of the company will remain closed from 14 May 2014 to 27 May 2014 (both days inclusive) for the purpose of payment of dividend & 62nd Annual General Meeting (AGM) of the company to be held on 5 June 2014. The dividend warrants will be posted on or about 6 June 2014.
Hinduja Ventures after trading hours on Wednesday, 26 February 2014 said its board reviewed the performance of one of its subsidiary, IndusInd Media and Communications, and it reiterated the earlier decision to invest Rs 300 crore in IndusInd Media and Communications, a subsidiary of the Company, either directly or through its subsidiary. The capital infusion is happening to take advantage of opportunities thrown up by digital conversion from analogue transmission as mandated by information and Broadcasting Ministry, Government of India. Phase I and Phase II of the Digital Addressable System (DAS) have already been completed and several consolidation opportunities are coming up in the digital environment in various phases. The capital will be used to expand the digital base of IMCL and to improve customer services, the company said. The company's board also approved the investment upto Rs 2 crore to be made in Grant Investrade, a wholly owned subsidiary of the company.
The board of directors of IL&FS Transportation Networks will meet on 4 March 2014 to consider fixing the issue price as well as ratio for the proposed rights issue. The board will also announce the record date to determine the eligible equity shareholders. The announcement was made after trading hours on Wednesday, 26 February 2014.
Arvind said after market hours on Wednesday, 26 February 2014, that Arvind Goodhill Suit Manufacturing, a joint venture between the company and Goodhill Corporation of Japan, announced launch of formal suits on Wednesday, 26 February 2014. The joint venture firm has set up a Greenfield suits manufacturing facility based out of Bornmansandra Industrial estate in Bangaluru, to produce high-end formal suits catering to the needs of evolved Indian and Overseas customers.
The unit has started with two lines each for jackets and trousers, with the capacity to produce 3.5 lakh pieces and 6 lakh pairs of trousers annually. In first year of operation, it expects to achieve a turnover of around Rs 100 crore.
Currently producing 6 million pieces of Jeans and 4 million pieces of shirts annually out of their 7 production facilities in Bengaluru. Arvind is expanding its offering to offer complete solution to its customers who are the most marquee global and Indian names in apparel brands and retail.
The government will unveil data on gross domestic product (GDP) for Q3 December 2013 after trading hours today, 28 February 2014. The GDP grew at improved pace of 4.8% in Q2 September 2013, from 4.4% growth recorded in Q1 June 2013.
Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
Key benchmark indices edged higher on Wednesday, 26 February 2014 with the market sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 25 February 2014. The S&P BSE Sensex garnered 134.52 points or 0.65% to settle at 20,986.99, its highest closing level since 24 January 2014.
The stock market was closed on Thursday, 27 February 2014, on account of Mahashivratri.
Foreign institutional investors (FIIs) bought shares worth a net Rs 511.15 crore on Wednesday, 26 February 2014, as per provisional data from the stock exchanges.
Asian stocks were mixed on Friday, as the Federal Reserve chair Janet Yellen's comments reiterated her confidence in the US economy, but tensions in Ukraine weighed on investor sentiment. Key benchmark indices in Hong Kong, Singapore and Indonesia fell by 0.12% to 0.4%. Key benchmark indices in China, Japan and South Korea fell by 0.03% to 0.2%.
Japanese retail sales rose 4.4% in January from a year earlier, the government said Friday, a sign that consumers are increasing purchases ahead of a sales tax increase in April.
The sales figures, released by the Ministry of Economy, Trade and Industry, were led by increased sales of automobiles and machinery equipment.
Sales at large-scale retailers rose 0.1% on year, after adjusting for a change in the number of stores.
Japanese consumer prices rose a bit more sharply than expected in January, government data showed Friday, as the economy crawls out of more than a decade of deflation.
The nationwide core consumer price index rose 1.3% from a year earlier in January, gaining for the eighth month in a row, the Ministry of Internal Affairs and Communications said. The index, which strips out volatile costs of perishables, also climbed 1.3% in December, then the sharpest rise in over five years.
The core CPI for the Tokyo metropolitan area, an early indicator of price trends for the rest of Japan, rose 0.9% in February. That was the sharpest rise since a 1.1% rise in November 2008.
A meeting of China's lawmakers to set economic policy and growth targets begins next week in Beijing.
US markets edged higher on Thursday, 27 February 2014 with the benchmark S&P 500 closing at a fresh record as investors welcomed dovish remarks from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee.
Federal Reserve Chair Janet Yellen repeated that the central bank is likely to maintain its strategy of gradually trimming asset purchases, even as policy makers monitor data to determine if recent weakness in the economy is temporary.
The Fed will likely reduce the pace of asset purchases in further measured steps at future meetings, Yellen said on Thursday in remarks prepared for delivery to the Senate Banking Committee that were identical to 11 February comments she made to a House panel. She also said the bond purchases are not on a preset course.
Yellen said some recent reports have pointed to weakness that may have been caused in part by unusually harsh winter weather.
Yellen, in the second day of her semi-annual testimony on the economy and monetary policy, also repeated the Fed's pledge to keep the benchmark interest low at least as long as unemployment stays above 6.5% and the outlook for inflation doesn't exceed 2.5%.
In economic news, the number of people applying for unemployment benefits rose last week to match the highest level of 2014, suggesting that progress in a gradually recovering US labor market has slackened off. However, the average of new claims over the past month, usually a more reliable gauge than the up-and-down weekly number, was unchanged at 338,250.
A slowdown in orders over the past few months by American manufacturers was reflected in the durable-goods orders reading for January, however the drop was less than forecast. Orders for US durable goods fell 1% in January as demand tapered off for most big-ticket items except military hardware, the government said Thursday.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion
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