Key benchmark indices trimmed gains after a firm start triggered by firmness in Asian stocks. The barometer index, the S&P BSE Sensex, was up 21.32 points or 0.1%, off close to 90 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Punjab National Bank fell as the stock turned ex-dividend today, 11 February 2014 for the interim dividend of Rs 10 per share for the year ending 31 March 2014. Hindalco Industries fell after its US subsidiary Novelis reported its Q3 results. NMDC rose on good Q3 results. Tata Motors rose on strong Q3 results. Jaiprakash Associates declined after the company reported a reverse turnaround in Q3 results. Tata Steel rose ahead of its Q3 results today, 11 February 2014.
Asian stocks rose on Tuesday, extending gains into a fourth day before Federal Reserve Chairman Janet Yellen delivers her first testimony on monetary policy.
At 9:43 IST, the S&P BSE Sensex was up 21.32 points or 0.1% to 20,355.59. The index gained 109 points at the day's high of 20,443.35 in early trade. The index rose 19.14 points at the day's low of 20,353.41 in early trade.
The CNX Nifty was up 3.95 points or 0.07% to 6,057.40. The index hit a high of 6,080.05 in intraday trade. The index hit a low of 6,056 in intraday trade.
The BSE Mid-Cap index was up 14.36 points or 0.23% at 6,352.70. The BSE Small-Cap index was up 14.36 points or 0.23% at 6,354.24. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 666 shares rose and 352 shares fell. A total of 69 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and rest fell.
Tata Steel rose 1.36% ahead of its Q3 results today, 11 February 2014.
Dr Reddys Laboratories gained 0.09% ahead of its Q3 results today, 11 February 2014.
Jaiprakash Associates declined 1.02% after the company reported a reverse turnaround in Q3 results. The company reported a net loss of Rs 88.71 crore in Q3 December 2013 as compared to a net profit of Rs 110.93 crore in Q3 December 2012. Total income fell 9.5% to Rs 3181.81 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 10 February 2014.
Tata Motors rose 3.96% on strong Q3 results. The company's consolidated net profit surged 195.23% to Rs 4804.80 crore on 38.37% increase in total income to Rs 64,034.30 crore in Q3 December 2013 over Q3 December 2012. The result was announced after trading hours on Monday, 10 February 2014.
The result was strong on the back of strong demand, growth in volumes and favourable product mix and geographic mix at Jaguar Land Rover (JLR).
Jaguar Land Rover wholesale and retail volumes for the quarter ended 31 December 2013 grew by 22.7% and 26.5%, respectively, over the corresponding period last year and stood at 116,357 units and 112,172 units, respectively. Growth in volumes is driven by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, alongside higher volumes of the newer XF and XJ derivatives.
As per International Financial Reporting Standards Foundation (IFRS) JLR's revenues for the quarter ended 31 December 2013 of GBP 5,328 million represented a growth of 40.1% over GBP 3,804 million during the corresponding quarter last year. Operating profit (EBITDA) stood at GBP 955 million in the quarter, up 79.2% as compared to GBP 533 million during the corresponding quarter last year. Operating margin for the quarter ended 31 December 2013, stood at 17.9%, up 390 bps as compared to corresponding quarter last year reflecting richer product mix, supported by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, and richer geographic mix, with increased volumes in various geographies. The profit before tax for the quarter ended 31 December 2013 grew to GBP 842 million (GBP 404 million in the corresponding quarter last year) reflecting higher operating profit (EBITDA), more favourable exchange revaluation, partially offset by higher depreciation and amortisation as well as lower finance income. Profit after tax for the quarter grew to GBP 619 million (GBP 296 million in the corresponding quarter last year).
NMDC rose 0.28% on good Q3 results. The company's net profit rose 21% to Rs 1567 crore on 38% rise in turnover to Rs 2823 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 10 February 2014. The NMDC board at its meeting on Monday has recommended 2nd interim dividend of 550% in addition to the 1st interim dividend of 300% for the year ending 31 March 2014. The total interim dividend so far is 850% for the year 2013-14.
The company's production of iron ore during the 3rd quarter is 7.30 million tonnes (MT) registering a growth of more than 36% over Q3 December 2012, while sales of iron ore was 7.34 MT which is about 38% more than that of the corresponding quarter of previous year. The company's production of iron ore during the 3rd quarter is 7.30 million tonnes (MT) registering a growth of more than 36% over Q3 December 2012 while sales of iron ore was 7.34 MT which is about 38% more than that of the corresponding quarter of previous year.
For the year 2013-14, capital expenditure of Rs 2720 crore is planned to be incurred including Rs 100 crore for overseas acquisitions. So far, from April-December 2013, the capital expenditure of Rs 1679 crore has been incurred, which is 65% more than corresponding period last year. The installation of 3 MTPA steel plant at Nagarnar in Chhattisgarh, as part of NMDC's forward integration programme and value addition, is being pursued vigorously. Orders for major technological packages have already been placed, other auxiliary packages are in advanced stages of finalization and construction works of the major packages are being undertaken on war footing.
As part of its expansion programme, NMDC is developing two new mines, one in Bailadila Sector in Chhattisgarh i.e. Deposit-11B Iron Ore Project and the other in Bellary-Hospet region in Karnataka i.e. Kumaraswamy Iron Ore Mine. Besides, orders have already been placed for setting up of 1.2 MTPA capacity Pelletisation plant in Karnataka.
Speaking on the company's performance, Shri C.S. Verma, CMD said "NMDC is in its stride to reach production of iron ore of 30 MT for the year 2013-14 which would be a record in itself for NMDC in spite of evacuation hurdles. It is evident from these results that NMDC would definitely be in the forefront in the years ahead and move towards ensuring sustainable growth."
Hindalco Industries fell 0.33% after its US subsidiary Novelis reported its Q3 results. Novelis, US subsidiary of Hindalco Industries reported net income attributable to its common shareholder of $13 million for the third quarter of fiscal 2014. Excluding certain tax-effected items, net income was $23 million for the quarter, up $14 million compared to $9 million reported in the same period a year ago. The result was announced after market hours on Monday, 10 February 2014.
Adjusted EBITDA for the third quarter of fiscal 2014 was $203 million, up 10% compared to $185 million reported for the same period in the prior year. The increase was driven primarily by higher global shipments partially offset by continued pricing pressures in North America and Asia and reduced scrap benefits from lower aluminum prices.
Commenting on the company's performance, Phil Martens, President and Chief Executive Officer for Novelis said, "Our execution in the third quarter was excellent, with year-over-year shipment growth in every operating region. We have made great progress in the commissioning of our major expansions and we are now seeing the benefits of some of these projects in our results. While external market pressures partially offset the bottom line impact of this volume growth, we are confident about the realizable potential for this business as the new projects come on-line."
Shipments of aluminum rolled products totaled 721 kilotonnes for the third quarter of fiscal 2014, an increase of 11% compared to 647 kilotonnes for the same period last year. Despite being a seasonally low production quarter, shipments were up one percent sequentially compared to the second quarter. Net sales for the third quarter of fiscal 2014 were $2.4 billion, up four percent compared to the prior year resulting from higher shipments partially offset by a 12 percent decrease in average aluminum prices and lower conversion premiums.
The company continues to see strong demand for aluminum flat rolled products globally, particularly in the automotive segment. In December, the company announced a $205 million investment to further expand its global automotive aluminum capacity to 900,000 tons annually.
"We are the world's leading supplier of aluminum automotive sheet, pioneering advancements in cutting edge technologies and facilities to meet our customers' needs," said Martens. "Ford's introduction last month of the aluminum intensive F-150 pickup truck will truly be a game changer for both the automotive and aluminum industries and Novelis is in an excellent position to capture the significant growth ahead."
For the third quarter of fiscal 2014, Novelis reported liquidity of $806 million. Free cash flow was negative $61 million for the third quarter of fiscal 2014, in part due to $107 million in semi-annual bond interest payments and $157 million in capital expenditures. "We have successfully implemented several strategic actions to improve cash flow particularly around working capital activities, resulting in significantly higher free cash flow results than last year," said Steve Fisher, Chief Financial Officer for Novelis.
Punjab National Bank fell 1.32% as the stock turned ex-dividend today, 11 February 2014 for the interim dividend of Rs 10 per share for the year ending 31 March 2014.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for the month of January 2014 tomorrow, 12 February 2014. The CPI inflation slowed to 9.87% in December 2013, from 11.16% in November 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for the month of January 2014 on Friday, 14 February 2014. The WPI inflation eased to 6.16% in December 2013, from 7.52% in November 2013.
Data on industrial production for December 2013 will be out tomorrow, 12 February 2014. Industrial output declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, 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.
Asian stocks rose on Tuesday, extending gains into a fourth day before Federal Reserve Chairman Janet Yellen delivers her first testimony on monetary policy. Key benchmark indices in China, South Korea, Singapore, Indonesia, Hong Kong and Taiwan rose 0.36% to 1.55%.
US stocks rose on Monday before Federal Reserve Chairman Janet Yellen delivers her first report on monetary policy.
Yellen will speak on monetary policy and the outlook for the economy later in the global day today for the first time since being sworn in as the central bank's head.
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. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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