The market is slated to snap recent losses tracking firm Asian stocks. Asian stocks climbed the most in a month on Thursday while metals gained after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the US economy improves. Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit.
Coal India's consolidated net profit declined 0.83% to Rs 3052.36 crore on 5.57% growth in total income to Rs 17594.28 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Tata Steel reported a consolidated net profit of Rs 916.77 crore in Q2 September 2013 as against net loss of Rs 363.93 crore in Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Tata Steel's consolidated revenue rose 7.35% to Rs 36645 crore in Q2 September 2013 over Q2 September 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 54.26% to Rs 3784 crore in Q2 September 2013 over Q2 September 2012.
Tata Steel attributed the turnaround in Q2 September 2013 to steady ramp-up of the Indian operations and improved performance at the European and South East Asian operations.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia, said: "Overall market conditions weakened during the last quarter, exacerbated by heavy monsoons and the credit slowdown affecting our customers. Despite these difficult conditions, we were able to increase deliveries by 18% over last year and increase market share on the back of strong customer relationships, our superior product portfolio and the strength of our distribution network. The rolling facilities of the brownfield expansion at Jamshedpur ramped up to full capacity towards the end of the second quarter. Our greenfield project in Odisha continues to make good progress though there have been some weather related disruptions due to the Phailin cyclone and the subsequent floods. The South East Asian operations have stabilised and should deliver strong performance over coming quarters."
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe said: "The improvement in production continued into the second quarter as our operations stabilised following the restart of the Port Talbot blast furnace. This fed through to a stronger financial performance in the first half, despite margins being squeezed in the September quarter. The investments in our asset base are proving their worth in what continues to be a challenging market. We are focused on maintaining our momentum and will continue to strengthen partnerships with customers by offering them more premium products and services."
Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate) said: "The Tata Steel Group continued to maintain its earnings momentum in spite of seasonal weakness in Europe. The year-on-year improvement is evident with a 300 basis points increase in the Group EBIDTA compared to the corresponding quarter of the previous year. The Group cash flows from operations for the quarter were also very strong as we continued to focus on internal initiatives including working capital and spend management. Capital expenditure on the greenfield capacity in Odisha remains the key priority for the Group's capital deployment and we have spent around Rs 4500 crore in the first half on this project. We continue to maintain adequate liquidity levels backed by project financing for the planned capex and track the currency movements to calibrate our hedging policy accordingly."
Tata Steel's cash and cash equivalents as on 30 September 2013 stood at Rs 12779 crore and net debt was Rs 64334 crore. Total liquidity including undrawn credit lines was Rs 17500 crore.
Cipla's consolidated profit after tax (PAT) declined 26.6% to Rs 358 crore on 14% growth in revenue to Rs 2463 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Cipla Medpro South Africa (Medpro) , a pharmaceutical company, incorporated in South Africa became a wholly owned subsidiary of Cipla on 15 July 2013. Accordingly, the Q2 September 2013 result includes the relevant results of Medpro and its subsidiaries from the date Medpro became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable, Cipla said.
The Q2 September 2012 revenue includes one-time profit share revenues from Escitalopram through the company's US partner. EBITDA (earnings before interest, taxation, depreciation and amortization) declined 19.6% to Rs 564 crore in Q2 September 2013 over Q2 September 2012.
Cipla's domestic revenue rose 11.6% to Rs 1040 crore in Q2 September 2013 over Q2 September 2012. The growth in domestic revenues was largely on account of growth in anti-asthma, urology and COPD therapy segments, Cipla said in a statement.
Cipla's revenue from exports of formulations grew 14.9% to Rs 1219 crore in Q2 September 2013 over Q2 September 2012. Exports of APIs grew 17.7% to Rs 204 crore in Q2 September 2013 over Q2 September 2012. The growth in export revenue was primarily due to growth in anti-retroviral, anti-malaria and anti-allergic segments, Cipla said in a statement.
ONGC's net profit rose 2.83% to Rs 6063.86 crore on 9.69% growth in total income to Rs 23897.64 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
ONGC's gross subsidy discount rose 11.9% to Rs 13796 crore in Q2 September 2013 over Q2 September 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 11545 crore and profit after tax (PAT) by Rs 7621 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit as he sought to reassure investors worried the country would be hit hard in a global market sell-off. Most immediately, he pledged to move slowly if needed in winding down an oil window that provides dollars directly to state-run oil companies, while announcing a bond purchase of 80 billion rupees on Monday to inject liquidity in markets. Both had been key concerns in markets.
The news briefing, announced earlier on that day, was an unprecedented departure for the traditionally cautious central bank. Since taking the helm of the RBI in September, Rajan has pledged to be more communicative and has so far been warmly welcomed by investors.
"It's important that the RBI clarifies interpretation of economic events and the likely direction of economic policies at times of uncertainty so that the market worries about the right things and does not get into a tizzy about the wrong ones. That is my quote today," Rajan told reporters.
"There is no fundamental reason for volatility in value of the rupee," he also said. "At some time, it makes sense to take a deep breath and examine the fundamentals. I hope you all will do that."
Rajan addressed reporters after stronger-than-expected U.S. jobs data last week had sparked concerns about an early end to the Federal Reserve's stimulus, hitting the rupee and sending Indian bonds and shares tumbling, although markets remain well above the levels of the summer lows.
At his briefing, Rajan called food inflation "worryingly high", but said he was comforted by a downward trend in the core consumer price index. Rajan also surprised analysts by saying the RBI's estimate for the current account deficit for the fiscal year ending in March was $56 billion, the first time in recent memory the central bank has given such a forecast. Rajan also sought to reassure investors worried about the rupee's stability after the RBI has allowed oil companies to source dollars directly in markets instead of a special window provided by the central bank.
That window was opened as an emergency measure by the RBI in late August and was cited as a key reason behind the recovery in the rupee, which is still up 8.8 percent since its record low in late August. Rajan said the RBI had flexibility in managing the return of oil companies to markets, and would go slow if needed.
Gravity gripped bourses in second half of the day's trading session after a positive first half on Wednesday, 13 November 2013 with weakness in European and Asian stocks impacting sentiment. The S&P BSE Sensex was down 87.51 points or 0.43% to 20,194.40 on that day, its lowest closing level since 8 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 299.70 crore on Wednesday, 13 November 2013, as per provisional data from the stock exchanges.
Asian stocks climbed the most in a month on Thursday while metals gained after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the US economy improves. Key benchmark indices China, Hong Kong, Indonesia, Japan, Taiwan, Singapore, and South Korea rose 0.01% to 2.38%.
US stocks rose on Wednesday, sending benchmark indexes to records, as Macy's Inc. led a rally among retailers and investors speculated the Federal Reserve's Janet Yellen will continue the central bank's stimulus policy as chairman.
Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the economy and labor market are performing "far short of their potential" and must improve before the Fed can begin reducing monetary stimulus. A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases," Yellen, the Fed's vice chairman, said in testimony prepared for her nomination hearing tomorrow before the Senate Banking Committee. "I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy." The remarks show Yellen is committed to the central bank's strategy of attempting to boost the economy and lower 7.3% unemployment, more than four years after the economy began to recover from the longest and deepest recession since the Great Depression. She also signaled support for capital and liquidity rules to help reduce the perception that some banks are too big to fail.
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