Trading of S&P CNX Nifty futures on the Singapore stock exchanges indicates that the Nifty could gain 8 points at the opening bell.
Mahindra & Mahindra (M&M) after trading hours on Thursday, 14 February 2013, said that the company has decided to invest about 80 billion Korean Won which is equivalent to around $73.73 million at the current exchange rate, by way of subscribing to preferential issue of equity shares of the company's Korean subsidiary viz. Ssangyong Motor Company (SYMC). The preferential allotment will result in an increase in the paid-up capital of SYMC by 11.9% and increase in the M&M's shareholding in SYMC to 72.85% from current 69.63%. The preferential issue would facilitate improvement of the financial structure of SYMC and proceeds of the issue would be utilised by SYMC for new product development and strengthen its competitiveness, M&M said in a statement.
United Breweries after trading hours on Thursday, 14 February 2013, said that the company is the owner of the Kingfisher brand which is registered under the respective Trademark classes pertaining to alcoholic beverages and that the brand Kingfisher has not been hypothecated/pledged by the company to any lender to secure loans. The company made this announcement while clarifying its position with regard to media reports on the Kingfisher brand. United Breweries also said that no shares of the company are pledged with the lenders of Kingfisher Airlines.
Both United Breweries and Kingfisher Airlines belong to the Vijay Mallya's UB group. Kingfisher Airlines has been grounded since 1 October 2012, first because of staff protests against unpaid salaries and thereafter because of regulatory issues. Its flying licence expired on 31 December 2012, although that can be revived through a re-application.
GAIL (India)'s net profit rose 17.72% to Rs 1284.86 crore on 11.87% increase in total income to Rs 12658.37 crore in Q3 December 2012 over Q3 December 2011. The result was announced after market hours Thursday, 14 February 2013. In terms of the decision of the Government of India to share the under recoveries on LPG, the company has provided discount of Rs 700 crore for Q3 December 2012, which was higher than Rs 536.12 crore in Q3 December 2011. GAIL (India) also said it has adjusted Rs 85.67 crore towards excess provision for discount pertaining to Q2 September 2012.
Tata Motors' consolidated net profit fell 52.2% to Rs 1628 crore on 1.8% growth in revenue (net of excise) to Rs 46090 crore in Q3 December 2012 over Q3 December 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 14.93% to Rs 6144 crore in Q3 December 2012 over Q3 December 2011. EBITDA margin dropped to 13.3% in Q3 December 2012 from 16% in Q3 December 2011. The result was announced after market hours Thursday, 14 February 2013.
Tata Motors attributed the small growth in revenue to strong demand, growth in volumes and favourable market mix at Jaguar Land Rover (JLR). The company said JLR's revenue for the quarter ended December 2012 of GBP 3,804 million represented a growth of 1.5% over GBP 3,749 million during the corresponding quarter last year. JLR's operating profit (EBITDA) stood at GBP 533 million in the quarter, lower than GBP 639 million during the corresponding quarter last year. JLR's operating margin for the quarter ended 31 December 2012 stood at 14%, lower than a strong quarter a year ago period, reflecting product mix, the ongoing effect of higher marketing costs compared to the low levels experienced in Q3 of the prior year, launch costs of the all-new Range Rover, run out of the earlier Range Rover, and continued growth in product investments and related costs to support future business growth. JLR's profit before tax for the quarter ended 31 December 2012 was GBP 404 million, lower than GBP 509 million in the corresponding quarter last year. JLR's profit after tax for the quarter was GBP 296 million, lower than GBP 393 million in the corresponding quarter last year.
JLR issued new 10 year bond of $500 million at 5.625% per annum during January 2013.
With regard to the future business plan of JLR, Tata Motors said that JRL will focus on continuing the launch of new Range Rover, full launch of the new Jaguar engine and AWD options, XF Sportbrake, and F-TYPE. JRL will continue its focus on both refreshed and new Jaguar and Land Rover products. JRL will continue to focus on profitable volume growth and improving efficiencies to sustain the growth momentum, Tata Motors said. Given the significant growth in sales and profitability with strong liquidity, JLR's capex and product development spending is expected to increase in FY 2014 in the region of 2.75 billion to develop new products and technologies and for expanding the manufacturing foot print to realize increased market opportunities.
Tata Motors reported net loss on standalone basis in Q3 December 2012. The standalone financial operations represent mainly the India operations of Tata Motors. Revenue on standalone basis (net of excise) stood at Rs 10630 crore for the quarter ended 31 December 2012, which was lower than Rs 13338 crore for the corresponding quarter of the previous year. The operating margin was 2.2% for the quarter ended 31 December 2012, sharply lower than 6.7% for the corresponding quarter last year. Tata Motors reported a net loss of Rs 458 crore on standalone basis in Q3 December 2012, as against net profit of Rs 174 crore in Q3 December 2011.
Tata Motors said that the external environment and overall economic activities remain stressed, resulting in the overall demand continuing to remain under pressure, mainly for the medium and heavy commercial vehicles. Sluggish economic activity and weak macro outlook have impacted freight availability, Tata Motors said. The company said that competitive intensity is resulting in higher marketing costs. The company said that demand in the small commercial vehicles (SCV) segment remains strong. Tata Motors said that the company continues to leverage on its strengths in the commercial vehicles business, which include strong understanding of the domestic market, wide and compelling product portfolio, strong brand and customer support, widespread distribution network and economies of scale.
Tata Motors said that several initiatives are under aggressive implementation by the company in the passenger car business to achieve performance improvement. For the overall passenger car industry, raw material and component prices are expected to be under control going ahead, Tata Motors said. For the company, cost and expense optimization focus will continue in the passenger vehicles business, Tata Motors said.
HCL Technologies said after market hours on Thursday, 14 February 2013 that it has entered into a strategic partnership with Linedata, a leading French global applications software provider. HCL had, through its acquisition of Capital Stream in early 2008 became the owner of Finance Center; a commercial lending software suite. HCL through its expertise in product development and domain knowledge, has significantly transformed this product into a management platform automating disparate operations into a fully-integrated straight through processing solution. The product today offers comprehensive business benefits providing full utilization of the cross-portfolio information needed to streamline decision making, collaborate and manage credit and asset risk, HCL Technologies said.
Under the partnership, HCL will transfer its commercial lending software product (Finance Center) business, including customer contracts and other associated assets and liabilities for consideration of $45 million while supporting Linedata with offshore product development and professional services. HCL had derived revenue of $30 million during FY 12 from Capital Stream, HCL said in a statement.
Realty major DLF's consolidated net profit rose 10.46% to Rs 285 crore on 4% fall in revenue to Rs 2291 crore in Q3 December 2012 over Q3 December 2011. Earnings before interest, taxation, depreciation and amortization (EBIDTA) dropped 10% to Rs 1068 crore in Q3 December 2012 over Q3 December 2011. On sequential basis, DLF's net profit jumped 105.03% to Rs 285 crore on 6% growth in revenue to Rs 2291 crore in Q3 December 2012 over Q2 September 2012. Earnings before interest, taxation, depreciation and amortization (EBIDTA) jumped 24% to Rs 1068 crore in Q3 December 2012 over Q2 September 2012. DLF announced result market hours on Thursday, 14 February 2013
DLF said in a statement that the above financial results are after taking into account 'one time' profit from the sale of NTC mills land in Mumbai and accounting for certain additional costs/rebates to be incurred in the future on existing projects, including potential loss on the sale of Silverlink Resorts (Aman Resorts). It also reflects the deferment of recognition of revenues under the new accounting policy for new launches, DLF said.
DLF said its net declined by Rs 1870 crore in Q3 December 2012. The company continues to make investments in new assets, with a capex/land of about Rs250 crore in Q3 December 2012, DLF said. DLF said that the management believes that with the new initiatives by the government on the policy initiatives and outlook of reduction on the interest rates, the investment sentiment in the country shall improve. This shall have a positive impact on the company's operations in the medium term, DLF said.
DLF said that highly accretive launches in Gurgaon are on the anvil from the company, which is expected to further bolster cash flows of the company. However, in most cases, the revenue and profitability shall be reflected only after a few quarters given the new accounting policies, DFL said. DLF said that the the company is focused to create a business model of highly stable and predictable earnings, cash flows and long term value creation. In the current macro environment, DLF intends to continue with the current volume of launches, development and leasing. Over the next few years, DLF expects to move to a higher RoE model with reduced quantum of debt and at a lower cost.
Key benchmark indices had edged lower on Thursday, 14 February 2013. The BSE Sensex shed 110.90 points or 0.57% to 19,497.18 on that day, its lowest closing level since 11 February 2013.
Foreign institutional investors bought shares worth net Rs 321.26 crore on Thursday, 14 February 2013, as per provisional data from the stock exchanges.
PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. The government has set target of Rs 30000 crore from PSU divestment for the fiscal year ending 31 March 2013. Meanwhile, as per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013.
Asian stocks edged lower Friday, 15 February 2013, as poor European data and caution before the Group of Twenty meeting this weekend weighed on stocks. Key benchmark indices in Hong Kong, Japan, Singapore and South Korea fell by 0.02% to 1.1%. Indonesia's Jakarta Composite rose 0.16%.
The stock market in Taiwan was shut for Lunar New Year holidays. Mainland Chinese bourses are closed the whole of this week for Lunar New Year holidays.
US stocks edged higher on Thursday bolstered by another round of large deal announcements to finish at a five-year high. Fresh US labour market data showed that the number of Americans filing first-time claims for unemployment fell more than expected last week.
Delegates from the overlapping Group of 20 and Group of Seven blocs of major economies are due to meet in Moscow today, 15 February 2013. A two-day meeting of finance ministers from the Group of 20 major economies begins in Moscow today, 15 February 2013.
The G7 on 12 February 2013 issued a statement saying it will not target exchange rates. The G7 Ministers and Governors, reaffirmed their commitment to market determined exchange rates and to consult closely in regard to actions in foreign exchange markets. They reaffirmed that their fiscal and monetary policies have been and will remain oriented towards meeting their respective domestic objectives using domestic instruments, and that they will not target exchange rates. They are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. The group said they will continue to consult closely on exchange markets and cooperate as appropriate.
In Europe, gross domestic product in the euro area shrank 0.6 percent in the fourth quarter from the previous three months, the worst performance since the first quarter of 2009.
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