See FY14 loan growth at 18-19%, domestic NIMs at 3.1%: BoI

Bank of India expects to clock loan growth of around 18-19 percent for FY14, says CMD VR Iyer. The Q2 loan growth for the public sector lender grew 21 percent year-on-year.

Speaking to CNBC-TV18 post Q2 results , Iyer says despite the net interest margin (NIM) dropping to 2.93 percent on the domestic side, it will increase in next two quarters. She believes the bank will be able to increase NIMs to 3.10 percent on the domestic side and on the international side from 1.03 percent to 1.15 percent at least.

Below is the verbatim transcript of VR Iyer's interview on CNBC-TV18

Q: There is remarkable improvement in your asset quality. The only niggling worry with investors is when bad assets come because they are big assets which come lumpily and fall lumpily. But is the worse over? Will we see even lower gross non-performing loan (NPL) as a percentage of total book for next quarter?

A: The worst is over. I do appreciate the concern of the market, because Bank of India ( BOI ) was registering high non-performing assets (NPA) during the last two years after the year ended March 2013, but internally we have been working very hard to strengthen the monitoring as well as recovery system and it is really paying off.

We have been able to substantially reduce the gross NPA to 2.93 percent from 3.04 percent and the net NPA to 1.85 percent. Our endeavour will be to further reduce and certainly the gross and net NPA position is not likely to increase in the coming quarters.

Q: What was restructured asset number in Q1 and what is the total stock of restructured assets now?

A: In Q1 we restructured about Rs 755 crore. In Q2 it is around Rs 855 crore of which the corporate debt restructuring (CDR) is Rs 247 crore. The others represent non-CDR restructuring and for the current quarter from October to December, it may be around Rs 1,000-1,200 crore. These are the indications that I feel like discussing with borrowers, not that they are already listed with the CDR cell.

Q: How much of restructured assets slipped into NPL? Also, what did you do by way of recoveries and upgradations?

A: On an average, we do this stress analysis on all accounts, so our experience is that 10-12 percent of the restructured assets do slip to the NPA level. Coming to the recovery side, we have been working very hard internally to recover large amounts from our bad and doubtful segment and this quarter we have been able to do almost Rs 817 crore as compared to Rs 607 crore in the substandard category.

You would also appreciate that out of the NPAs the last portion in the substandard category, the accounts that have slipped in as of September in substandard category have already recovered Rs 280 crore in October itself, so we are having a very hard recovery drive across the country.

Q: What kind of loan growth and margins are you expecting in second half?

A: Loan growth y-o-y has been 21 percent on domestic and on the advances it has been a bit high, but taking into account the currency depreciation the loan growth on the international side has not been very large. On the domestic side, as has been our strategic decision, we have been trying to improve our domestic credit deposit and it is happening now.

When I took charge of the bank it was only 68 percent, now it is 72 percent and that is also helping us in improving margin. Our loan growth for the whole of this fiscal year should be around 18-19 percent, which is our estimate given the current context and the economic environment.

With regards to net interest margin (NIM), our NIM has slightly dropped to 2.93 percent on the domestic side, but it is bound to increase in next two quarters and I am confident that I should be able to increase to 3.10 percent on the domestic side and on the international side from 1.03 percent to 1.15 percent at least. I had earlier given the guidance of 1.20 percent, but I am slightly revising downward my guidance to 1.15 percent now, because the pick up of recovery across has not really happened.

Q: Don't you think you will be under pressure to increase deposit costs or the interest you pay on deposits? Will there be a rush for deposits now? Do you see deposit cost going up for the system and for yourself?

A: The liquidity is not very comfortable and during the festive season and advance tax there will be a bit of tightness, but nonetheless if you see BOI, we have been able to increase large amount of deposit during first quarter and second quarter and that is really keeping us in good stead. We are not borrowing in the market and as of now I am not seeing immediately, maybe going forward if the growth is not there on the deposit front than I would look into, I have no plans of doing it in the day or two or in the next one or two weeks.

20.07 | 0 komentar | Read More

ITC may touch Rs 370-380: Shahina Mukadam

Oct 31, 2013, 06.00 PM IST

Shahina Mukadam of Fairwealth Securities feels that ITC may touch Rs 370-380.

Your Stocks at 02:00 pm

Like this story, share it with millions of investors on M3

ITC may touch Rs 370-380: Shahina Mukadam

Shahina Mukadam of Fairwealth Securities feels that ITC may touch Rs 370-380.

Like this story, share it with millions of investors on M3

ITC may touch Rs 370-380: Shahina Mukadam

Shahina Mukadam of Fairwealth Securities feels that ITC may touch Rs 370-380.

Share  .  Email  .  Print  .  A+A-

Shahina Mukadam of Fairwealth Securities told CNBC-TV18, "I believe ITC is a fundamental long-term holding stock; it is a portfolio stock but in the short term the stock can correct to about Rs 315-320 levels. So, there is Rs 15-20 downsides from current levels which I see based on the charts for the very short-term."

She further added, "If the market moves up then this is one stock that can give good return and over a one year period I see the stock price moving to around Rs 370-380 levels."

Related Stories

More from Shahina Mukadam

20.07 | 0 komentar | Read More

How major EM currencies fared in last 7-8 months: CARE

CARE Ratings' study report on currency movements

The emerging markets were most affected the announcement made by the Federal Reserve in May 2013 which indicated that there would be a tapering of the QE programme which entailed buyback of USD 85 bn of bonds per month from the market. Investors began moving their funds out of the emerging markets which was reflected in a decline in inflows or net outflows from the debt segment of these countries. In fact, investors also moved out of equities and the implication was that as QE tapering meant higher interest rates in the USA, funds would prefer to stay invested there.

The result was a panic fall in currencies which was arrested in September 2013, when the Federal Reserve went against market expectations and held on to its stance to retain its QE programme until such time that conditions improved. The target was the unemployment rate which would have two triggers, 7 percent for a QE taper and 6.5 percent for a hike in interest rates.

However, there have been developments in October 2013 such as the shutdown in the US and intense debate on the raising of the debt ceiling which in turn casts some doubt on how the government will behave with respect to its expenditure. While these two issues have been deferred, though not sorted out, as the world will confront them again in January and February of 2014, the Federal Reserve will have to keep this in mind when it deliberates the tapering programme. Any resolution of the twin issues of shutdown and debt ceiling would necessarily mean cuts in expenditure which will impact the pace of growth and hence employment situation in the USA. This would be counter to what the Fed has been doing to prop up the economy. Therefore, markets believe that the tapering will not commence any time soon and conjectures are that it would be possible only after the first quarter of 2014.

The curious part of the currency story everywhere is that the dollar per se has been weakening versus the Euro over time as shown in Chart 1. On a point to point basis, the dollar has declined by 4.8 percent between April 2013 and October 2013. Typically this should have led to strengthening of other currencies. But on account of the Fed announcement, the fundamentals of balance of payments across the emerging markets were affected with capital outflows leading to currency weakening.

Future direction for the rupee
With the global conditions based on Fed action being deferred for the time being, the global influence on the exchange rate would tend to be limited. Hence, FII funds could come in bigger numbers though presently it is positive in equities and negative in debt. If the USA recovery is still some distance away, then there is reason to believe that support will come from here. Also with the trade deficit coming under control, and severe curbs being placed on gold, the rupee may be expected to remain stable in the Rs 60-62/USD bracket, though stronger fundamentals can take it into the fifties. But that will depend on whether more FDI and ECBs come in and how the NRI funds behave after the November time line is crossed for the swap window. There could be an extension of these facilities if the RBI is convinced that it would help.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

20.07 | 0 komentar | Read More

Asset quality to improve; see stable NIM: Union Bank

Union Bank 's management attributes its increase in NPAs to the economic slowdown. However, D Sarkar, its CMD expects the asset quality to improve with the Rs 500 crore infusion by the government.

The bank is mulling the right time for a qualified institutional placement (QIP) and is also keeping the alternative of Tier-II bonds, he says. The priority lies in increasing capital for future requirements as per Basel-III norms, he tells CNBC-TV18. He sees net interest margins (NIMs) to be stable around 2.6 percent in the fiscal.

Also read: 25% of sector's rejigged loans can slip into NPAs: Axis Bk

Below is the edited transcript of his interview to CNBC-TV18.
 
Q: What led to the increase in gross NPA's this quarter? Where do you see it standing at by the end of this fiscal with the recent capital infusion of Rs 500 crore help?

A: If you see our last one and a half years we could reduce it in all quarters but June 2012. It is because of the economic factors. The 14 basis points (bps) increase is not very significant at this moment.

However, upgradation is also in the pipeline. About Rs 500 crore asset upgradation will be there. I hope that our asset quality will certainly improve in the next quarter.

Q: Can you give us more perspective on by when we could hear something formidable on the QIP?

A: The government has given the in principle approval that Rs 500 crore they will infuse. Presently, the government holding is about 57.89 percent after infusion of this Rs 500 crore. It will reach about 60 percent roughly. So, in that case, we are having the option to go for at least 9 percent dilution as per the present norms.

From September 2013 onwards, Basel-III it is 9.72 percent, but we are just looking at when we should enter for this QIP. We are also keeping the option open for Tier-II bonds also.

So, this will be our priority area to increase our capital for the future requirements as per Basel-III.

Q: NIMs stood at 2.7 percent versus 3.07 percent last year? What led to the dip in the net interest margins and any revision to the guidance which was given for the same as well?

A: This quarter it is at 2.67 percent. So, market is not conducive. Depositors' expectation is that the rate of interest on the deposits should be increased. The lenders' expectation is that present lending rate is very high. So, balancing these two factors is completely under pressure.

However, we will be able to maintain 2.60 percent for the next quarter and in 2013-14 also. At the same time, it is the expectation that may be Indian banks have a little bit higher NIM in comparison with international practice, but we are working on the volume. Certainly in this, if NIM is also reduced, a little bit in basis point we can cover up through this volume increase.

20.07 | 0 komentar | Read More

Timex Group India: Outcome of board meeting

Oct 30, 2013, 06.01 PM IST

Timex Group India has informed that the Board of Directors of the Company at its meeting held on October 30, 2013, inter alia, has considered and approved the appointment of Mr. Anil Malhotra as Additional Non-Executive Director of the Company with immediate effect.

Like this story, share it with millions of investors on M3

Timex Group India: Outcome of board meeting

Timex Group India has informed that the Board of Directors of the Company at its meeting held on October 30, 2013, inter alia, has considered and approved the appointment of Mr. Anil Malhotra as Additional Non-Executive Director of the Company with immediate effect.

Like this story, share it with millions of investors on M3

Timex Group India: Outcome of board meeting

Timex Group India has informed that the Board of Directors of the Company at its meeting held on October 30, 2013, inter alia, has considered and approved the appointment of Mr. Anil Malhotra as Additional Non-Executive Director of the Company with immediate effect.

Share  .  Email  .  Print  .  A+A-

Timex Group India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 30, 2013, inter alia, has considered and approved the appointment of Mr. Anil Malhotra as Additional Non-Executive Director of the Company with immediate effect.Source : BSE

Read all announcements in Timex Group Ind

Action in Timex Group India

20.07 | 0 komentar | Read More

Flexituff International: Updates on outcome of AGM

Oct 30, 2013, 06.08 PM IST

Flexituff International has submitted a copy of the minutes of the 20th Annual General Meeting (AGM) of the Company held on September 30, 2013.

Like this story, share it with millions of investors on M3

Flexituff International: Updates on outcome of AGM

Flexituff International has submitted a copy of the minutes of the 20th Annual General Meeting (AGM) of the Company held on September 30, 2013.

Like this story, share it with millions of investors on M3

Flexituff International: Updates on outcome of AGM

Flexituff International has submitted a copy of the minutes of the 20th Annual General Meeting (AGM) of the Company held on September 30, 2013.

Comments (1)   .   Share  .  Email  .  Print  .  A+A-

Action in Flexituff International

20.07 | 0 komentar | Read More

ICICIdirect recommends 5 stocks for Muhurat trading 2013

Oct 30, 2013, 06.13 PM IST

ICICIdirect.com has recommended State Bank of India, Wipro, Bajaj Auto, Bajaj Electricals and Entertainment Network India as its Muhurat 2013 picks.

Like this story, share it with millions of investors on M3

ICICIdirect recommends 5 stocks for Muhurat trading 2013

ICICIdirect.com has recommended State Bank of India, Wipro, Bajaj Auto, Bajaj Electricals and Entertainment Network India as its Muhurat 2013 picks.

Like this story, share it with millions of investors on M3

ICICIdirect recommends 5 stocks for Muhurat trading 2013

ICICIdirect.com has recommended State Bank of India, Wipro, Bajaj Auto, Bajaj Electricals and Entertainment Network India as its Muhurat 2013 picks.

  .   Share  .  Email  .  Print  .  A+A-

ICICIdirect.com's Muhurat picks 2013

H1CY13 turned out to be a dull year for domestic equities. The 8 percent de-growth in cumulative earnings for Sensex companies in Q1FY14 portrays a worrisome forecast for the rest of the year after five-year CAGR of 9 percent as GDP growth and ensuing forecasts slump to record lows. Scare of a 1991 like crisis, as exhibited, in the volatile |/$ exchange rate coupled with depleting growth has skewed investor's preference for quality stocks resulting in a divergence in stock and sector performances. Capital intensives and industrials have been losing their dominant stature with contribution in Sensex EPS declining from 55 percent in FY09 to 36 percent in FY13. This is also reflected in their underperformance on the bourses (albeit some short-term rallies have come in this sector on the back of investors pinning their hopes on the fact that some relief may come through)
 
In such perplexing times both global (timing of QE tapering, quality of growth improvement in developed nations and a potential geopolitical Arab spring) and domestic (record low GDP, paralysed capex cycle, slow policy reforms, a hawkish RBI and upcoming Lok Sabha elections) developments are leading to massive investor anxiety as the BSE Sensex is almost approaching life-time highs. This though is on the back of delayed QE tapering and consequent deployment of excess global liquidity back into equities across the globe (FIIs in spite of all the gloom and doom have poured in ~$15 billion YTD) making the situation even more bewildering
 
However, even though markets have exhibited a strong rally in the past few months, coupled with rising volatility, we would still stick with quality names in the IT, consumer/media, auto and financials space given a sudden pullback in global equities may lead to massive profit booking on the Indian bourses. Hence, our stock selection criterion focuses on companies that possess quality balance sheets (strong cash flows, low leverage and no/lesser capex intensity) relative to earnings growth (which though they may have moderated during the ongoing downturn will bounce back strongly given the uptick in economic recovery)

Muhurat trading picks

We recommend State Bank of India ( SBI ), Wipro , Bajaj Auto , Bajaj Electricals and Entertainment Network India as our Muhurat 2013 picks.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

20.07 | 0 komentar | Read More

Govt panel recommends Rs 5 hike in diesel prices

A government panel recommended that India immediately raise diesel prices by about 9.5 percent or Rs 5 a litre and take other measures to cut a huge oil subsidy bill, but its suggestions may prove tough to follow.

The panel, set up in May to advise the government on fuel pricing, also suggested capping the subsidy on diesel sales at Rs 6 a litre, Oil Minister S. Veerappa Moily told a press conference on Wednesday.

India, the world's fourth-largest oil importer, needs to rein in spending to help stabilise its finances and support the rupee, which hit a record low earlier this year.

The 5 rupee diesel price hike could cut the annual subsidy bill by Rs 400 billion, said Kirit Parikh, the head of the government panel that submitted the report.

Diesel accounts for over 40 percent of India's refined fuel use.

With state elections looming from November and a general election due by May 2014, however, the government may find it difficult to raise domestic fuel prices sharply at a time that inflation is still high.

"We recognise it may not be possible right now to increase prices by the same quantum as suggested in the report," Parikh said.

Annual inflation accelerated to a seven-month high of 6.4 percent in September, driven by higher food prices and fuel inflation, which is running at about 10 percent.

Diesel demand in India is not very sensitive to price, because it is mainly used to transport goods by road and to run generators in a country plagued by power shortages. Demand runs at over 1 million barrels per day.

Fuel retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp sell diesel, kerosene and cooking gas at rates that are subsidised to protect the poor and tame inflation.

The government compensates the retailers in part with cash subsidies, and they also get discounted crude oil and refined products from oil explorers and gas utility GAIL.

In January, government allowed fuel retailers to raise the price of subsidised diesel by 1 cent a litre every month and asked bulk buyers to pay market rates, but prices are still below global market levels.

The panel also suggested a Rs 4 /litre increase in the price of kerosene, a politically sensitive commodity widely used by the rural poor.

Kerosene prices have not been raised since June 2011, and any increase would help narrow the gap with diesel and curb switching and adulteration.

The panel also favoured limiting the sale of cooking gas cylinders sold at subsidised rates to six per household from nine, plus a gradual increase in retail prices to shift to market pricing in three years' time.

Access the panel's report here

20.07 | 0 komentar | Read More

Checkout: Who made it to Forbes India rich list this time

Mukhesh Ambani # 1

Mukesh Ambani, chairman, Reliance Industries, USD 50 billion Indian petrochemicals conglomerate that accounts for nearly 3 percent of India's USD1.8 trillion GDP  has retained the top spot in the Forbes India this year as well with a wealth of USD 21 billion. 

20.07 | 0 komentar | Read More

Recovery in H2FY14; low volume growth impacted Q2: Marico

Marico sees an improvement in its performance going forward. The company reported a 23 percent rise in its net profits, but revenues saw a dip. Milind Sarwate, its Group CFO tells CNBC-TV18 that the volume growth has been the dampener in the quarter. He attributes the growth in margins by 200 bps to less advertisement expenditure and no product launches in the quarter.

Also read: Marico Q2 net up 23%, margin expands but revenues slip

Below is the edited transcript of his interview to CNBC-TV18.

Q: Your top-line growth has disappointed this quarter. Could you break that up in volume and value terms? Has the trend of sluggish volume growth actually reversed? Are you seeing volume pressures persisting in this quarter as well?

A: We have had a pretty good earnings growth of 25 percent, but the value growth has been low at 5 percent. Within that, the volume growth has been low at 4 percent both in India and overseas.

There is a distinct impact of the slowdown especially in the urban areas, because our rural growth still continues to clock 12-13 percent. The volume growth has been a primary dampener in this quarter.

Q: You have managed to grow your margins by about 200 bps and cost pressures for you have intensified both on a Quarter-on-Quarter and on a Year-on-Year basis. Can you elaborate how you were able to achieve this growth? Where are we seeing the internal margins come off?

A: The gross margin has remained more or less flat; maybe 1 or 2 bps down. We were able to manage the raw material cost better. We also managed our advertising and sales promotion better as there were not many new product launches in this particular quarter.

We saved about 200 bps in advertising and sales promotion (ASP) and about 190 bps in raw materials and when you net off some of the incremental costs we have gone up by about 210 bps in margins.

So, we are at 15.1 percent which is a pretty good number given the fact that our volume growth has been lower than what we anticipated and lower than what the market was expecting from us.

Q: Your ad spends have come off quite substantially in this quarter. Is that the trend that we can look forward to in the second half of FY14? I ask this question because of so much commentary coming in from some of your peers where they speak about intensifying competitive features. Is that the number that we can look at for the balance part?

A: We always maintained that the right way to compare ad spends is to take a moving annual total, because that helps us in smoothening out the Quarter-to-Quarter fluctuations due to new products or seasonality in advertising.

We have always ranged recently between 12-14 percent of sales for ASP. We will stay within that range. This quarter's lower ASP need not necessarily be taken as a guide for the future.

Q: Your revenues have dipped by about 3.5 percent this time. Do you still maintain the 25 percent top-line growth guidance you set out at the start of the year?

A: I think so. In terms of our basic building blocks, we are in the right space. Yes, lower volume growth is something which has impacted, but we hope that we have hit the bottom of the trough and we would recover from the coming quarter onwards.

20.07 | 0 komentar | Read More

Ranbaxy posts Q3 loss at Rs 454 cr, margin falls 560 bps

Moneycontrol Bureau

Pharmaceutical firm Ranbaxy Laboratories posted a net loss of Rs 454 crore in three-month period ended September 2013 as against profit of Rs 754 crore in a year ago period, dented largely by forex loss of Rs 302.2 crore.

Profit was also impacted by Mohali stock write off and other charges of Rs 69.5 crore, finance cost of Rs 111 crore and impairment loss on vaccine plant in Bangalore due to prevalent market conditions.

There was a forex loss of Rs 360 crore, but out of that the company added only Rs 302.2 crore to profit and loss account for the quarter.

Overall it was a disappointing quarter for the company on every parameter. Revenues of the company increased 3.45 percent year-on-year to Rs 2,802 crore in the quarter gone by.

According to a CNBC-TV18 poll, analysts on an average had expected it to report revenues of Rs 2,879 crore for the quarter.

"The company continues to grow in its focus branded markets in Asia, East Europe, CIS and Africa. In India, however, the announcement of pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions," Arun Sawhney, CEO and MD said.

Ranbaxy, which announced results after market hours, has changed its financial year to April-March from January-December earlier; hence, the current financial year will be for a period of 15 months from January 2013 to March 2014.

The company expects to achieve sales of Rs 13,000-13,500 crore for 15 months period ending March 2014. This does not consider any sales accruing from first-to-files which shall be accounted for as they materialise, the company said.

Its sales for nine months ended September 2013 were Rs 7,907 crore. So to achieve the given guidance, Ranbaxy has to do sales of Rs 2,546 crore each at lower end of guidance and Rs 2,796 crore each at upper end of guidance for next two quarters.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 42 percent year-on-year to Rs 199 crore during September quarter, impacted by higher operating expenses and employee cost. Operating profit margin dropped 560 basis points Y-o-Y to 7.1 percent during second quarter, which was far lower than analysts' expectations.

Analysts had expected EBITDA at Rs 294 crore and margin at 10.2 percent.

Geographies

US sales stood at Rs 790 crore, which were lower due to lack of exclusivity while North America sales stood at Rs 880 crore.

East Europe CIS sales grew 24 percent year-on-year to Rs 480 crore while West Europe fell 31 percent Y-o-Y to Rs 200 crore. Africa and Middle East sales rose 4 percent to Rs 250 crore and Asia Pacific & Latin America grew 14 percent on yearly basis to Rs 230 crore during second quarter.

Ranbaxy Laboratories' stock closed at Rs 385.65, down 0.82 percent on the BSE.

20.07 | 0 komentar | Read More

BJP may bag MP, Chhattisgarh in polls; key for 2014: Survey

With polls in Madhya Pradesh and Chhattisgarh around the corner, a survey conducted by Centre for Study of Developing Societies (CSDS) for CNN-IBN reveals a clean sweep for the incumbent Bharatiya Janata Party (BJP).

The party, lead by chief minister Shivraj Singh Chouhan, is all set to form the government in the state. It is likely to secure 148-160 seats, while the Congress will settle with 52-62, BSP with 3-7 and rest 10-18 seats for other smaller parties and independents.

The story remains the same for Chhattisgarh as well. The party is likely to win 61-71 seats out of the total 90 seats up for grabs, while Congress will have around 16-24 seats. It will be their biggest loss as it had won 38 seats in the 2008 elections.

For Chief Minister Raman Singh, pro-incumbency in the state is almost as high as 2008. Over two-thirds (66 percent) are satisfied with the BJP government's performance, a fall of 6 points from the 2008 level. Governance, development work and food security are the main reasons cited by those who are satisfied with the Raman Singh government.

The outcomes from these polls are seen as important in the run-up to the elections. Experts believe that it can also, to an extent, be extrapolated to the results of the general elections in 2014.

An experts' panel, on CNBC-TV18, discuss the importance of these numbers and whether the 'Narendra Modi' factor has been incremental in bringing about this pro-incumbency wave in the two states. 

With inputs from ibnlive.com

20.07 | 0 komentar | Read More

Difficult to make profits in current scenario: PNB Gilts

Oct 28, 2013, 06.23 PM IST

In an interview to CNBC-TV18, SK Dubey, MD, PNB Gilts spoke about their Q2FY14 earnings performance.

Like this story, share it with millions of investors on M3

Difficult to make profits in current scenario: PNB Gilts

In an interview to CNBC-TV18, SK Dubey, MD, PNB Gilts spoke about their Q2FY14 earnings performance.

Like this story, share it with millions of investors on M3

Difficult to make profits in current scenario: PNB Gilts

In an interview to CNBC-TV18, SK Dubey, MD, PNB Gilts spoke about their Q2FY14 earnings performance.

Share  .  Email  .  Print  .  A+A-

In an interview to CNBC-TV18, SK Dubey, MD, PNB Gilts spoke about their Q2FY14 earnings performance.

20.07 | 0 komentar | Read More

Hold HDFC Bank, good blue chip: Phani Sekhar

Oct 28, 2013, 06.10 PM IST

Phani Sekhar, Fund Manager - PMS at Angel Broking is of the view that one can hold HDFC Bank. "One may buy it on declines with a long term view," he added.

Your Stocks at 02:00 pm

Like this story, share it with millions of investors on M3

Hold HDFC Bank, good blue chip: Phani Sekhar

Phani Sekhar, Fund Manager - PMS at Angel Broking is of the view that one can hold HDFC Bank. "One may buy it on declines with a long term view," he added.

Like this story, share it with millions of investors on M3

Hold HDFC Bank, good blue chip: Phani Sekhar

Phani Sekhar, Fund Manager - PMS at Angel Broking is of the view that one can hold HDFC Bank. "One may buy it on declines with a long term view," he added.

Share  .  Email  .  Print  .  A+A-

Phani Sekhar, Fund Manager - PMS at Angel Broking told CNBC-TV18, "The investor can continue to hold on HDFC Bank . Its performance will be a notch better than the general banking sector performance in India. So, to that extent, during September quarter, the credit growth declined to around 16 percent amid slowdown and if this slow down persists then the loan growth might moderate."

"With the kind of asset quality that they have displayed correspondingly I would say that it is a good performance that they have shown. The valuation premium that HDFC enjoys even on its private sector peers might continue and overall it is a good blue chip and a strong hold. On declines, if the market does give an opportunity it will be a good idea for the investor to accumulate more for long term," he added.

20.07 | 0 komentar | Read More

Money Masters Leasing Finance: Outcome of EGM

Oct 28, 2013, 06.08 PM IST Money Masters Leasing & Finance has informed that the Extra Ordinary General Meeting (EGM) of the Company was held on October 28, 2013.

Ads by Google

'; } } document.write(s); return; } google_ad_client = 'ca-money_test_js'; //News Internal 300x250 google_ad_channel = "5088647641"; google_ad_output = 'js'; google_max_num_ads = '1'; //google_image_size = '728x90'; google_ad_type = 'text'; google_language = 'en'; google_encoding = 'utf8'; google_safe = 'high'; google_kw_type = 'broad'; google_ad_section = 'default'; google_page_url=document.location.href; // -->

To read the full report click here

'); } if (elemListLength > 1) { RndElem2 = RandomTxtLinks[(ix + 1 + Math.floor(Math.random() * (elemListLength - 1))) % elemListLength]; SplitLink2 = RndElem2.split("~|~"); if( SplitLink2.length == 2 && SplitLink2[0] != SplitLink1[0] ) { RndTxtClass2 = "gD_15n"; document.write(''); } }

'); }

Action in Money Masters Leasing and Finance

");

20.07 | 0 komentar | Read More

Vada paav meets MBA degree: The story of Jumboking

"My family was flabbergasted when I told them I wanted to sell vada paav with my MBA degree," laughs Dheeraj Gupta. But his dream paid off and it's the young entrepreneur who is laughing all the way to the bank. Gupta is the owner of the Jumboking brand of vada paav in India and is now on the verge of opening his 54th outlet.

But becoming the 'king' of vada paav wasn't a cake walk. Hailing from a business family, it was a foregone conclusion that Gupta would become a businessman. Soon after he acquired an MBA degree from a Pune institute, he decided to brand Indian mithai overseas. Unfortunately, the idea didn't catch on and Gupta learnt an expensive lesson.

Big Bite

Then, he ran into a franchisee of Burger King while on a trip to London and he figured he would take another bite out of the food business. "I was reading up on entrepreneurship and was particularly inspired by a book on the founder of McDonald's," recalls Mumbai-based Gupta.
 
So he decided to promote the vada paav as the Indian equivalent of the burger and set about researching the market. "Mumbai and Thane consume over 2 million vada paavs every day. At a market price of Rs 10 apiece, that's a market of over Rs 700 crore per annum in these two cities alone. It is a very large but unorganised market, and this is where branding the vada paav as 'Jumboking' came in," Gupta reveals. He figured that branding the product and serving it in a hygienic setting, with a transparent kitchen and stainless steel equipment would do the trick. It didn't.

With Rs 2 lakh borrowed from his father and a spot near Malad railway station which belonged to the family, Gupta took the plunge in 2001. He operated the outlet with his wife and four employees, but in the first six months, experienced a turnover of only Rs 3,000-4,000 a day. "It was very frustrating as we were unable to convince customers that we were hygienic and different," remembers Gupta.

Second Time Lucky

Not one to give up, he decided to have a second go at the vada paav -- this time serving it in a wrapper just like the McDonald's burger it was modelled after. Sales doubled, and Gupta launched his second store in Malad after 18 months and the third one in Andheri. The fourth store became Jumboking's first franchised store and, ever since, the brand has followed the franchise model. Next, Gupta infused further innovations, with automation, wrapping, using round bread, a bigger and flatter vada instead of the traditional round one, and a variety of flavours.

Revenue Model

Jumboking has 53 stores in eight cities including some metros and smaller cities. The company runs a 100-per cent franchise system. Products across all outlets are standardised as as they are manufactured in a central kitchen and transported to the outlets, where the vada paav is assembled using standardised equipment.

Jumboking is essentially a vada paav brand and the product and its variations contribute 80 per cent to the total sales. The balance comes from beverages like colas and lassi. The average spend at a Jumboking store is Rs 25-30 per customer.

 

Dheeraj Gupta, Founder, Jumboking

An average Jumboking store measures 200-250 sq ft and the investment per store is Rs 12 lakh, plus a property deposit. The stores earn an ROI starting at 33 per cent and break even in three years. Gupta's strategy of sticking only to railway-connected locations in Mumbai has paid handsome returns since the vada paav is targeted at the working class. "The idea is to choose areas where people are constantly 'on the go' and looking for a quick snack rather than a full meal."

Jumboking has had two rounds of funding so far. "We are now a profitable company and are not looking at raising funds in the near term. We will be closing this year with a turnover of Rs 30-35 crore," says Gupta.
Thinking out of the box comes naturally to this innovator, who has tempted the palate with versions of the vada paav like schezwan, tandoori paneer, corn palak and butter grilled vada paav. Creating a Vada Paav Day (August 23, the day Jumboking launched) is an effort to create hype around the humble snack.
 
Guru Gyaan

* If you don't have the money to advertise, don't waste your money on single advertisements in newspapers. That won't work. Instead, give something back to your customers. At Jumboking, our first main marketing initiative was to hand out railway passes to our customers.
  
* Location hunting is crucial. We focused on railway lines -- one each on the east and west. We have perfected this strategy to a science.

* We decided to focus on a single product instead of offering a range of snacks. We passed up on samosas to improve our cost-efficiency on the vada paav.

* Dream big, don't be afraid. Get a team in place that will be able to share your dream.
 
* Share your business plan with a mentor. I was lucky to meet a mentor who asked to me wind up my sweets business. On that dull day, when you think of winding up, you need that one person who will say 'let's keep going'.
  
* Do not hanker after aggressive growth on an annual basis. This results in disappointment when you don't meet your goals.

You can send your feedback on smementor@moneycontrol.com or simply post comments below

20.07 | 0 komentar | Read More

How do investors benchmark their bond funds?

Q: What do you benchmark your bond against? How do you know that this is a good bond fund performing efficiently?

A: There are two way to look at it. One is that when you invest in a bond fund the worst thing you should do is to look at historical return because these return already come in and they is no guarantee that this fund will deliver similar kind of return. Unlike equity, in a bond you need to look at simple thing that what is the current portfolio maturity and what is the current portfolio yield and if you invest in that product and have that kind of maturity yield and if you stay invested in that fund for that period then yield minus expenses you are going to get it.

If you look at liquid right now, liquid fund have a 60 days maturity, current portfolio yield is 10 percent plus, 25 bps expenses, you are going to get 9.75 to 10 percent for next 60 days. Similarly if you look at accrual products, which are one year plus kind of products where current yield is anything between 11 to 11.5 and 12 percent. You take 1.5 percent expenses, 10 percent plus kind of return you get, suppose you stay invested for one year period, so that is a way one need to look at.

Technically I can answer you that it has to be benchmark against the bond index and all that which for a normal investor doesn't matter. I think the real benchmark for a bond is to look at company FDs. If you have one year company FD, if you have three year company FD and you have product which is one year maturity or three year maturity then that product yield to maturity (YTM) has to be higher than the bank deposit.

20.07 | 0 komentar | Read More

What is difference between bond and share?

Q: What is the difference between buying a bond and buying a share?

A: You buy share for capital appreciation, you buy share for growth, you buy share to create wealth. You buy bond to protect your wealth you have created so, in a way it is different but interestingly like equity have a PE multiple, bond also have PE multiple. Therefore, it could be good guide to you to look at when you should invest in the bond fund, for instance if a bond have a 10 PE multiple then it means the current yield is 10 percent and if a bond have a 12.5 PE multiple then it means the bond is offering 8 percent. So, you can use that as a tool to invest in the bond or not to invest in a bond.

Second thing share market plays a very important role when one look at investing in the bond because many time people invest in the bond or deposits of the company which are unknown and once they invest they do not know what happen to their portfolio, what has happened to the company but if you invest in the company which is listed on a stock exchange, the price of the share will tell you many things which perhaps is the financial of the company may not be able to tell you. So, in a way they are not connected but in a way they are connected.

20.07 | 0 komentar | Read More

How important are bonds in a portfolio?

Q: The bond funds are an integral part of almost anyone's investment portfolio particularly mutual fund portfolio. What do bonds do to your portfolio in terms of stability risk rewards etc?

A: Bond is a kind of product which is different from any other asset category, for instance investment in a real estate or in gold or in the share market. When the price goes down of any of these products, you never know when the price is going to come back. The beauty of the bond product is suppose you are holding a bond and if the price of the bond fall, it mean from tomorrow the yield will start going up. So, suppose you are holding a 10-year bond of 8 percent and tomorrow interest rate goes up to 9 percent, so immediately you will see depreciation in net asset value ( NAV ) but from that day onward yield instead of 8 percent it will start from 9 percent. So, in a bond if you hold till maturity then there is no way you are going to lose capital if you are invested in a good quality bond. So, when you look at investing in bond and I am not restricting myself to the bond but the whole fixed income space one need to invest.

Many people go on lend money to their friends and in the businesses extremely risky. People invest in company deposits - extremely risky. When people look at investing in the bond, I think what happens in bond that it has a coupon which keeps coming to you on regular basis. So, in a way it is a very good tool for customer to invest and it give a protection to the customer's portfolio, it provides regularity of income and in a way it is a very essential part of any customer's portfolio.

20.07 | 0 komentar | Read More

Tax-free bonds: Is it a good bet?

Q: Explain all these spotlights that are there on the tax-free bonds. How much does that add to the reward that I get at the end of the tenure for which I am investing?

A: I am not a big believer of tax-free bond for simple reason that if you are a high net worth individual and you invest in mutual fund and you disinvest after one year, you just pay 10 percent long-term capital gain but when you invest in a tax-free bond, government take a calculation saying that all investors are in highest bracket. So, he starts from day one paying highest tax slab.

It is a tax-free bond, nice but in a ten year period you find many times capital losses in your books. So, if you have a mutual fund bond portfolio and you have a capital losses somewhere else then you can adjust these things which is not possible in tax-free bond, for instance if you are running a business; you have a business of investing and that you have some losses where many people keep having for various reasons. Now you have a taxable instrument like mutual fund or lower instrument like mutual fund, you can adjust those. So, I am not a big believer in tax-free bond and I do not think they serve much purpose to the investor but the lure of them is too high for many investors to avoid.

20.07 | 0 komentar | Read More

What is difference between bond and share?

Q: What is the difference between buying a bond and buying a share?

A: You buy share for capital appreciation, you buy share for growth, you buy share to create wealth. You buy bond to protect your wealth you have created so, in a way it is different but interestingly like equity have a PE multiple, bond also have PE multiple. Therefore, it could be good guide to you to look at when you should invest in the bond fund, for instance if a bond have a 10 PE multiple then it means the current yield is 10 percent and if a bond have a 12.5 PE multiple then it means the bond is offering 8 percent. So, you can use that as a tool to invest in the bond or not to invest in a bond.

Second thing share market plays a very important role when one look at investing in the bond because many time people invest in the bond or deposits of the company which are unknown and once they invest they do not know what happen to their portfolio, what has happened to the company but if you invest in the company which is listed on a stock exchange, the price of the share will tell you many things which perhaps is the financial of the company may not be able to tell you. So, in a way they are not connected but in a way they are connected.

20.07 | 0 komentar | Read More

How important are bonds in a portfolio?

Q: The bond funds are an integral part of almost anyone's investment portfolio particularly mutual fund portfolio. What do bonds do to your portfolio in terms of stability risk rewards etc?

A: Bond is a kind of product which is different from any other asset category, for instance investment in a real estate or in gold or in the share market. When the price goes down of any of these products, you never know when the price is going to come back. The beauty of the bond product is suppose you are holding a bond and if the price of the bond fall, it mean from tomorrow the yield will start going up. So, suppose you are holding a 10-year bond of 8 percent and tomorrow interest rate goes up to 9 percent, so immediately you will see depreciation in net asset value ( NAV ) but from that day onward yield instead of 8 percent it will start from 9 percent. So, in a bond if you hold till maturity then there is no way you are going to lose capital if you are invested in a good quality bond. So, when you look at investing in bond and I am not restricting myself to the bond but the whole fixed income space one need to invest.

Many people go on lend money to their friends and in the businesses extremely risky. People invest in company deposits - extremely risky. When people look at investing in the bond, I think what happens in bond that it has a coupon which keeps coming to you on regular basis. So, in a way it is a very good tool for customer to invest and it give a protection to the customer's portfolio, it provides regularity of income and in a way it is a very essential part of any customer's portfolio.

20.07 | 0 komentar | Read More

How do investors benchmark their bond funds?

Q: What do you benchmark your bond against? How do you know that this is a good bond fund performing efficiently?

A: There are two way to look at it. One is that when you invest in a bond fund the worst thing you should do is to look at historical return because these return already come in and they is no guarantee that this fund will deliver similar kind of return. Unlike equity, in a bond you need to look at simple thing that what is the current portfolio maturity and what is the current portfolio yield and if you invest in that product and have that kind of maturity yield and if you stay invested in that fund for that period then yield minus expenses you are going to get it.

If you look at liquid right now, liquid fund have a 60 days maturity, current portfolio yield is 10 percent plus, 25 bps expenses, you are going to get 9.75 to 10 percent for next 60 days. Similarly if you look at accrual products, which are one year plus kind of products where current yield is anything between 11 to 11.5 and 12 percent. You take 1.5 percent expenses, 10 percent plus kind of return you get, suppose you stay invested for one year period, so that is a way one need to look at.

Technically I can answer you that it has to be benchmark against the bond index and all that which for a normal investor doesn't matter. I think the real benchmark for a bond is to look at company FDs. If you have one year company FD, if you have three year company FD and you have product which is one year maturity or three year maturity then that product yield to maturity (YTM) has to be higher than the bank deposit.

20.07 | 0 komentar | Read More

Tax-free bonds: Is it a good bet?

Q: Explain all these spotlights that are there on the tax-free bonds. How much does that add to the reward that I get at the end of the tenure for which I am investing?

A: I am not a big believer of tax-free bond for simple reason that if you are a high net worth individual and you invest in mutual fund and you disinvest after one year, you just pay 10 percent long-term capital gain but when you invest in a tax-free bond, government take a calculation saying that all investors are in highest bracket. So, he starts from day one paying highest tax slab.

It is a tax-free bond, nice but in a ten year period you find many times capital losses in your books. So, if you have a mutual fund bond portfolio and you have a capital losses somewhere else then you can adjust these things which is not possible in tax-free bond, for instance if you are running a business; you have a business of investing and that you have some losses where many people keep having for various reasons. Now you have a taxable instrument like mutual fund or lower instrument like mutual fund, you can adjust those. So, I am not a big believer in tax-free bond and I do not think they serve much purpose to the investor but the lure of them is too high for many investors to avoid.

20.07 | 0 komentar | Read More

Parakh was an upright officer: ex-Cabinet Secretary

As the controversy over coal block allocation to Hindalco takes twists and turns, former Cabinet Secretary BK Chaturvedi today said the then Coal Secretary PC Parakh was an "upright" officer and he was retained in office till retirement because of that. His clean chit to Parakh came after a letter written by the then Coal Secretary surfaced in which he said that Coal Mafia "is not outside the Government". Parakh, who has been named as an accused in a CBI FIR in the case relating to Hindalco, had then responded to allegations made by the then Minister Shibu Soren who wanted his transfer from the Ministry.

Chaturvedi, now a member of Planning Commission, told reporters today,"I consider Parakh a very upright officer." On the letter written by Parakh, Chaturvedi said there were complaints against him and he was asked to offer his comments.

Also Read: Coalgate: I am not above law, ready to face CBI, says PM

"For that, he offered all these comments (letter). So based on that, we didn't find any merit in the complaints against Parakh and rejected it...I do recall very well the people wanted to shift Mr Parakh and we saw to it that he remains in the seat till he retires," Chaturvedi said. In the letter in 2005, Parakh had said,"it (Coal mafia) exists within the Ministry of Coal, Coal companies, trade unions, State administrations and local political leadership.

There are no easy and shortcut solutions to the problem of Coal mafia in the current political and administrative milieu of the country.  As the letter made headlines, Parakh told reporters today, "the then Coal Minister Shibu Soren has made certain allegations against me. So in response, I had sent that letter to the then Cabinet Secretary B K Chaturvedi.

"When I said Coal industry is affected by the mafia, the intention was that a lot needs to done in Coal industry to bring transparency. Ministers were opposing these ideas. If you don't have transparency then you have all these kinds of problems."

Parakh had said in the letter, "dealing with coal mafia requires strong political commitment at Central and State government level and ability to effectively enforce law and order which does not exist." About the presence of coal mafia in the government as alleged by Parakh and the subsequent action taken in this regard, Chaturvedi said,"In one or two cases, as he said, allegations came and we looked at it and found it was baseless. So we closed the papers and if I do recall that Coal mafia...has been in existence in that area since donkey's years.

"Legally speaking CBI should look at legal aspect. As far as I am concerned, I consider Parakh as a very honest office. To me it appears that this is a case of bonafide decisions and there is no basis in this debate. But I do feel very strongly that honest bureaucrats should be protected..." he said.

In the letter to Chaturvedi on February 7, 2005, Soren had demanded transfer of Parakh alleging "procedural lapses" "insubordination" and not acting against Coal Mafia. Terming himself as "gullible adivasi", Soren had said,"I have to reluctantly take a view that it may not be appropriate to continue any further with the present secretary (Parakh).

I, hence, request the Prime Minister to finally consider to substitute the present incumbent with a suitable alternative"

Parakh responded to allegations saying he had no solutions to offer to the Minister apart from bringing about structural changes in the operations of coal industry for which ministers have shown great reluctance. "I had heard that signatures of MPs can be obtained for a price on any piece of paper. I wish it was not true. However, my experience of working in the Ministry for last one year makes me believe that it is unfortunately true," Parakh had alleged.

Citing allegations levelled against him by the then MP Chandra Sekhar Dubey and Giridhar Yadav, Parakh wrote to Chaturvedi saying he was "hurt by these motivated complaints from MPs" and had decided to call it a day seeking retirement from the service.

"I am sorry to say that Members of Indian Parliament, who swear to uphold the Constitution of India, can with impunity indulge in blackmailing civil servants and senior executives of public sector companies to meet their personal ends. It is unfortunate that the country has no institutional mechanism to stop such misconduct on the part of law-makers," he said.

Recommending transparency in allocation of captive coal blocks, Parakh wrote "as regards allocation of captive coal blocks through competitive bidding, there are opinions in favour and against it. "However, there can be no doubt that such a system will be far more transparent than any system that is based on subjective considerations. While both MoS and M(Coal) were strongly opposed to the idea, Prime Minister as Minister (Coal) had approved the proposal. I did not make any misrepresentation on the issue and deliberations of the meeting with stake holders were faithfully recorded".

20.07 | 0 komentar | Read More

Tata SIA Airlines flights likely by May-June

A day after FIPB cleared the Tata-Singapore Airlines' (SIA) airline venture, Tata group Chairman Emeritus Ratan Tata and SIA chief Goh Choon Phong today met Civil Aviation Minister Ajit Singh exuding confidence of launching flights by May-June next year.

Also Read: FIPB nod toTata-SIA JV will fuel growth: CAPA

"We are looking at very fast clearances. We hope that we will be able to launch by May-June," Tata SIA Airlines Chairman Prasad Menon, who accompanied Tata and Goh, told reporters after the 45-meeting with Singh here. Maintaining that the entry of Tata-SIA Airlines would benefit the Indian aviation sector, the minister said SIA was globally known for its expertise in technical and managerial matters and was one of the best airlines in the world.

Asked by when the Civil Aviation Ministry would give the necessary clearances to the new carrier, Singh said, "I don't see any problems. DGCA will have to be satisfied. There are issues relating to fleet, parking space, slots and routes. It depends on how fast they (Tata-SIA) provide all those data and documents."

Complimenting the minister for "opening up the aviation sector in a really global manner", Tata said "It is our responsibility to make him proud" and the Tata Sons' airline venture with SIA was "a great opportunity" towards that end. The meeting came a day after the Foreign Investment Promotion Board (FIPB) gave its green signal to their proposal to start a full-service airline entailing an initial foreign investment of USD 49 million. Tata Sons will invest USD 100 million in the joint venture.

This is Tatas' second venture in the aviation sector after its tie-up with Malaysian carrier Air Asia in February for a low-cost passenger air service in the country.

To a question on what kind of aircraft would the proposed airline consider flying, SIA CEO Goh and Menon said no fleet plan has yet been drawn up. "We are working on it," said Goh. Maintaining that "the new airline will provide premium (full-frill) service", Tata said he was excited about FIPB approval and added that a lot of hard work needed to be put in to start the airline.

Asked whether they would start the airline with a few aircraft from the SIA fleet like AirAsia India was planning to do, Goh said, "We will consider it (operating flights with SIA planes till new fleet is inducted). That is a possible option."

Goh and Menon said SIA would pump in money for equity infusion into the new airline joint venture. Earlier in the day, Tata and the delegation met Commerce and Industry Minister Anand Sharma and Economic Affairs Secretary Arvind Mayaram. Yesterday, Tata and Goh had also met Finance Minister P Chidambaram after the FIPB cleared the venture.

To be called Tata SIA Airlines Ltd, the venture would be headquartered in Delhi. In seeking approval to offer full-service passenger airways on both domestic and international routes, Tata Sons and SIA have assured the government that control of their proposed venture would always remain in Indian hands. Of the six directors, four would be nominated by the Tatas. Aviation industry analysts have welcomed the decision, saying it would send very positive signals to the global investor community.

20.07 | 0 komentar | Read More

Mr Anupam Vasudev, Chief Marketing Officer, Aircel

Oct 25, 2013, 06.33 PM IST

All our customers are using their phones on one hand and writing comments on the service with the other" say Anupam Vasudev, CMO, Aircel. Watch him speak on how his company is using online social interactions to work towards becoming a social business.

Like this story, share it with millions of investors on M3

Mr Anupam Vasudev, Chief Marketing Officer, Aircel

All our customers are using their phones on one hand and writing comments on the service with the other" say Anupam Vasudev, CMO, Aircel. Watch him speak on how his company is using online social interactions to work towards becoming a social business.

Like this story, share it with millions of investors on M3

Mr Anupam Vasudev, Chief Marketing Officer, Aircel

All our customers are using their phones on one hand and writing comments on the service with the other" say Anupam Vasudev, CMO, Aircel. Watch him speak on how his company is using online social interactions to work towards becoming a social business.

Share  .  Email  .  Print  .  A+A-

All our customers are using their phones on one hand and writing comments on the service with the other" say Anupam Vasudev, CMO, Aircel. Watch him speak on how his company is using online social interactions to work towards becoming a social business.

20.07 | 0 komentar | Read More

HUL Q2 net seen up 6.5%, sales volume growth key to watch

Hindustan Unilever ( HUL ) shares fell more than 2 percent on Friday as investors turned cautious ahead of its second quarter (July-September) results on Saturday. This is especially after its parent company Unilever on Thursday reported dismal sales growth in its emerging markets portfolio and its rival ITC reported lower-than-expected growth in sales in the July-September quarter.

Unilever, the parent company of HUL, on Thursday reported underlying sales growth at 3.2 percent for September quarter, in-line with reduced sales guidance given in October. It had cut its sales growth guidance from 5 percent in Q2 to 3.0-3.5 percent for Q3CY13 due to slowdown in emerging markets.

Sales growth from emerging markets (accounts for 55-60 percent to Unilever's total revenues) fell to 5.9 percent in Q3CY13 as against 12.1 percent in a year ago period and 10.3 percent in June quarter. India has second largest contribution after Brazil to Unilever's emerging market portfolio.

Earlier, HUL management after its June quarter results had cautioned too that slowdown will continue in the market . "Discretionary spends are under pressure. As far as competition goes, the environment remains challenging and intense," R Sridhar, CFO, told on July 26.

According to a CNBC-TV18 poll, analysts on an average expect HUL's volume growth at 4-5 percent in three months period ended September 2013 as against 7 percent in a year ago period and 5 percent in June quarter.

They feel personal products division continued to remain under pressure due to slowdown in discretionary spends while soaps & detergents volume growth will be higher at around 7 percent due to higher promotions.

Standalone reported profit after tax may grow 6.5 percent on yearly basis to Rs 859 crore and net sales may increase 9.4 percent year-on-year to Rs 6,734 crore in the quarter gone by.

Earnings before interest, tax, depreciation and amortization (EBITDA), including operating income, is likely to rise 7.4 percent compared to a year ago period to Rs 1,049 crore in three months period ended September 2013.

Operating profit margin may see a muted growth of about 10 basis points Y-o-Y to 15.6 percent due to tighter operating costs and lower advertising spends.

"Price and promotion war in detergents, competition in oral care, slowdown in skin care demand and premiumisation are the key determinants in the near term," Prabhudas Lilladher report said.

20.07 | 0 komentar | Read More

Shristi Infrastructure Development Corporation: Updates on outcome of AGM

Oct 24, 2013, 06.05 PM IST

Shristi Infrastructure Development Corporation has submitted a copy of the minutes of the 23rd Annual General Meeting (AGM) of the Company held on September 24, 2013.

Like this story, share it with millions of investors on M3

Shristi Infrastructure Development Corporation: Updates on outcome of AGM

Shristi Infrastructure Development Corporation has submitted a copy of the minutes of the 23rd Annual General Meeting (AGM) of the Company held on September 24, 2013.

Like this story, share it with millions of investors on M3

Shristi Infrastructure Development Corporation: Updates on outcome of AGM

Shristi Infrastructure Development Corporation has submitted a copy of the minutes of the 23rd Annual General Meeting (AGM) of the Company held on September 24, 2013.

Comments (1)   .   Share  .  Email  .  Print  .  A+A-

Shristi Infrastructure Development Corporation Ltd has submitted to BSE a copy of the minutes of the 23rd Annual General Meeting (AGM) of the Company held on September 24, 2013.Source : BSE

Read all announcements in Shristi Infra

To read the full report click here

Action in Shristi Infrastructure Development Corporation

20.07 | 0 komentar | Read More

Jeypore Sugar Company: Outcome of AGM

Oct 24, 2013, 06.07 PM IST

Jeypore Sugar Company has informed that the 77th Annual General Meeting (AGM) of the Company was held on October 24, 2013.

Like this story, share it with millions of investors on M3

Jeypore Sugar Company: Outcome of AGM

Jeypore Sugar Company has informed that the 77th Annual General Meeting (AGM) of the Company was held on October 24, 2013.

Like this story, share it with millions of investors on M3

Jeypore Sugar Company: Outcome of AGM

Jeypore Sugar Company has informed that the 77th Annual General Meeting (AGM) of the Company was held on October 24, 2013.

Comments (1)   .   Share  .  Email  .  Print  .  A+A-

Action in Jeypore Sugar Company

20.07 | 0 komentar | Read More

US tapering: FM wants regulators to take preventive steps

Finance Minister P Chidambaram today asked financial sector regulators, including RBI and Sebi, to take preventive steps to neutralise the impact of US Federal Reserve's monetary stimulus tapering that is likely early next year.

Chidambaram, according to sources, asked regulators at FSDC meeting to work out preventive measures. The Financial Stability and Development Council (FSDC) members include heads of regulatory bodies like RBI, Sebi and IRDA. The meeting was attended by RBI Governor Raghuram Rajan, Sebi chief U K Sinha, among others. Former Reserve Bank of India (RBI) head D Subbarao was a special invitee.

The Forward Markets  Commission (FMC) was included in the FSDC and its
Chairman Ramesh Abhishek was also present. The Minister, sources said, "asked different regulators to work on preventive measures to counter the impact of tapering which is likely to take place early next year".

Tapering, which refers to gradual withdrawal of the USD 85 billion a month bond purchase programme, was deferred by the US Federal Reserve in September.
The tapering, whenever it takes place, will have a bearing on global economy. It will impact fund flows to emerging economies, including India.

Chidambaram also expressed the confidence that current account deficit (CAD), the difference between outflow and inflow of foreign exchange, will remain within the earlier estimate of USD 70 billion of 3.7 per cent of the GDP in the current fiscal. It had touched an all time high of USD 88.2 billion, or 4.8 percent, in 2012-13.

20.07 | 0 komentar | Read More

Future of Jobs: Is India really going through zero growth?

Given the growing uncertainty with respect to jobs across the globe, CNBC-TV18 put together an eminent panel to discuss and deliberate on the way forward for the job creation opportunities in India.

The panellists for this discussion included Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, S Ramadorai, Chairman, National Skill Development Agency and Dr. Romesh Wadhwani, Founder Chairman, Wadhwani Foundation.

A lot has been said about the rate of growth in this country and the unprecedented high economic growth that we saw in the 10th and the 11th Plan. Unfortunately, that did not result in significant job creation. It actually was a period of jobless growth.

In terms of the employment elasticity -- the rate of change of employment marked to the GDP -- it has been securely declining from 2000s. About 0.44 percent between 1999-2000 and in the period of 2004-2005 and again 2009-2010 which were high growth periods it has come down to about 0.01 percent which is virtually zero. It means India has been seeing a period of jobless growth.

Below is a verbatim transcript of the discussion on CNBC-TV18

Q: What can we really expect now? Growth rates have come down significantly. We are not talking about 8 percent. We will be lucky if we do 5.5 percent. 6 percent seems like a bit of a stretch at this point in time. If we come down to this level of growth what happens then to the vision of job creation, what happens to the employment opportunity that we so desperately need for a country that talks about its demographic dividend and its demographic advantage?

Ahluwalia: There is absolutely no question that in order to achieve what we want to achieve and what we need you have got to have a much more robust growth performance. Neither last year, nor this year can be called good years, not just for Indian but for all global economy. If you are taking medium-term view my view is that the sort of perspective that we had in mind that India can get to a stable, sustainable 8 percent growth rate remains valid. The challenge is that in the first two years of the 12th Plan we have been knocked off that trajectory, almost every other country has also being knocked off their trajectory and so we must just get back to it. There is whole agenda.

We can discuss what that is. When the National Service Scheme (NSS) shows poverty has declined, everybody says that is rubbish. When the NSS seems to show that unemployment growth has decelerated, everybody treats this as a gospel truth. The same NSS data by the way, if you compare the three data points only, 1994, 2004 and 2011, it is factually true that more jobs were created between 1994 and 2004 than between 2004 and 2011.

However, increase in the labour force in the first period was also much more and as a result in the first period the rate of unemployment actually increased. In the second period, the labour force did not increase that much, we think because a lot of people were in school and the rate of unemployment actually declined.

So the first point I want your viewers to note is: it is totally false and possibly deliberately misleading to present the high growth period as a jobless growth period.

Q: You are hoping that we are going to be able to skill enough people and those skilled people will eventually find employment. So it is a bit of a chicken and egg kind of a situation. Are you feeling confident and optimistic that India is going to be able to deliver on the kind of job creation that we need to?

Wadhwani: Major challenges ahead. First of all my definition of skilling is not just about giving people the talent that they need to become employable, it is about actually making sure that they get employed. In other words there has to be connectivity between the employer community and the skilling community, because otherwise it is like clapping with one hand. You may skill someone , but they are still unemployed, what was the point of skilling them. The second observation is that at least in this particular domain, India is the land of bogus statistics. The way the statistics are done would have been appropriate 50 years ago, it is not appropriate for the world of today. They are very aggregate. They are very old. They are very inaccurate. They are done on very small point samples.

There are multiple problems with the actual methodology that is being used and then if you look at these so called employment forecasts for 10 years out, first of all I have no idea how people come up with a forecast 10 years out, but let us assume that there was some magic there, the forecast is that the total workforce will go up from 475 million, organised and unorganised to 585 million, that is 110 million net new jobs. Last 7 years 15 million, next 10 years 110 million.

What magic change is going to happen? Where all those jobs are going to come from? To really keep track of where those jobs are going to be and to make sure that there is good harmony and balance between job creation and skilling, we need a much better, much more real-time ability to collect labour data and jobs data. We do not have today. The second big challenge is we need to take skill development initiatives and translate them into an agenda of actionability, because aspirational goals are all dandy, if you cannot execute them they fail.

Q: The mandate of the NSDC is really to look at skilling India in an organised fashion. It has been a successful beginning as far as the NSDC is concerned. What are the big challenges that you are up against at this point in time?

Ramadorai: The NSDC last year skilled about 400,000 people. This year we are skilling up to 10 lakh, which is 2.5 times what we were used to doing. The number of partners whom we have funded, whether it is grant, whether it is debt funding or a portion of the equity has increased substantially based on the sector gap, skill gap analysis we have done. We do not want everybody to be starting only on IT or IT enabled services program. Second one we are focused on is to the reach which is beyond the traditional forces and states.

The most popular states must be brought into the whole skill building agenda. So if we do not do it in UP, Bihar, Jharkhand, Bengal or whatever it is you are not going to get the kind of numbers and the mobility of the people which is a big problem will create a lot of problem for us. So the sector skill gap studies plus the funding for the right partners and measuring then through the technology based systems is going to be very, very critical.

20.07 | 0 komentar | Read More

Grant Thornton likely to conduct forensic audit of MCX

After conducting an intensive probe on the debt ridden National Spot Exchange (NSEL), the Forward Market Commission (FMC) is now turning its attention to Multi Commodity Exchange (MCX), the largest commodity exchange in the country, reports CNBC-TV18's Aastha Maheshwari.

CNBC-TV18 learns that FMC has asked Grant Thornton, who had come out with their forensic audit report on NSEL, to conduct a forensic audit on MCX too. Grant Thornton is likely to begin its probe by mid week of November.

Also Read: Jignesh Shah won't be permanent shareholder director on MCX

Among, many things, they will primarily examine the trading data of Indian Bullion Markets Association (IBMA) and the trades done by IBMA on MCX. Remember, IBMA is also an FT Group company, thus IBMA's trading done on NSEL is seen as a major violation by the FMC. It is also likely to examine trading done by other entities related to promoters or any group companies.

Grant Thornton is still to get an official assigning go ahead from FMC to conduct the forensic audit. This audit comes after MCX MD and CEO Shreekant Javalgekar's resignation. All of this comes in light of FMC's fit and proper show cause notice, which named top MCX officials Jignesh Shah, Joseph Massey and Shreekant Javalgekar. Two out of these have already stepped down from board.

Sources also indicate that Jignesh Shah and the others who were named In the show cause notice are likely to file their reply by then end of this week, after which the FMC will be finalizing their their fit and proper status.

20.07 | 0 komentar | Read More

Tax Pass Through For AIFs: A Vexed Issue

Published on Wed, Oct 23,2013 | 18:12, Updated at Wed, Oct 23 at 18:12Source : Moneycontrol.com 

By: Bijal Ajinkya & Abhay Sharma, Khaitan & Co.

About a year ago the Securities Exchange Board of India (SEBI) introduced the Alternate Investment Fund Regulations, 2012 (AIF Regulations), which replaced the erstwhile SEBI (Venture Capital Fund) Regulations, 1996 (VCF Regulations). The aim was to bring a regulation that encompassed all forms of private equity and also introduced a regime interalia for the formation of fund of funds, domestic hedge funds.

According to some experts, the AIF Regulations herald the beginning of the next phase of evolution of the domestic private equity industry in India. As is the case with most legislation/regulations, the AIF Regulations do not exist in vacuum and in order to achieve its objectives, it is imperative that there is an element of synchronization between such other legislation and the AIF Regulations. The ncome Tax Act, 1961 (Act) is a case in point, wherein Section 10 (23FB)1 affords a "tax pass though" to all Venture Capital Funds (VCF) registered under the erstwhile VCF Regulations, whereas in the case of AIFs the pass through has only been extended to a certain sub category of category- I AIFs and that too with additional conditions and riders.

This limited extension of benefits could either be a result of legislative oversight or a deliberate change in tax policy or a combination of both. The purpose behind this article is to identify the types of AIFs that can avail of this tax pass through benefit and also point out certain lacunae under the existing tax pass through provisions.

20.07 | 0 komentar | Read More

Ambuja Cements misses forecast, Q3 net down 45% to Rs 166cr

Moneycontrol Bureau

Ambuja Cements disappointed the street with third quarter (July-September) net profit fell 45 percent - higher than analysts' expectations - year-on-year to Rs 166 crore, impacted by lower realisation and higher logistics cost.

Not only Ambuja Cements but also other cement companies like UltraTech Cement , ACC , JK Lakshmi Cement etc reported weak numbers during the quarter due to lower demand and higher cement prices.

Also Read - ACC Q3 net slips 51% to Rs 118.9 cr on lower realisations

The cement industry is going through subdued demand on account of overall economic slowdown, Ambuja said in its release.

Net sales dropped 7.5 percent to Rs 2,005 crore during September quarter from Rs 2,168.4 crore in a year ago period, missing analysts' forecast.

According to a CNBC-TV18 poll, analysts on an average had expected the cement company to report net profit of Rs 211 crore on revenues of Rs 2,050 crore for the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) nearly halved to Rs 255 crore from Rs 515.1 crore Y-o-Y and operating profit margin dropped to 12.7 percent from 23.8 percent during the same period. Analysts had estimated EBITDA at Rs 347 crore and margin at 16.9 percent.

"The outlook continues to remain challenging due to difficult macro-economic condition and resultant subdued demand. The company will continue working on improving efficiencies," Ambuja said.

Sales volume of cement and clinker increased marginally to 4.89 million tonne from 4.79 million tonne year-on-year.

During the current quarter, the company has commissioned a bulk packing terminal of 1 million tonne capacity in Karnataka.

There was an exceptional gain of Rs 25 crore on sale of residential flats during the quarter.

20.07 | 0 komentar | Read More

Nobel Prize-winning economist Lawrence Klein dies

Lawrence R Klein, a longtime University of Pennsylvania Professor who won the Nobel Prize in economics, has died. He was 93.

Also Read: Nobel Prize US winner warns of 'bubbly' global home prices

He died on Sunday at his home in Gladwyne, near Philadelphia, his daughter, Hannah Klein, said on Monday.

Born in Omaha, Nebraska, on September 14, 1920, Klein studied at the University of California, Berkeley and the Massachusetts Institute of Technology before joining the Penn faculty in 1958. It was there that he developed the statistical models known as the 'Wharton Models' which led to his Nobel Prize.

In a biographical essay Klein said that the experience of growing up during the Great Depression had a 'profound impact' on his intellectual and professional career. According to Penn's Wharton School, Klein used early version of his economic models to counter the conventional wisdom that the end of World War II would sink the US economy into a depression for a few years.

But in 1946 Klein correctly predicted that pent-up demand for consumer goods combined with the purchasing power of returning soldiers would ward off a depression, according to Wharton, and later he predicted correctly that the end of the Korean War would bring only a mild recession.

Klein is survived by his wife Sonia, daughters Hannah, Rebecca, and Rachel, and son Jonathan Klein.

20.07 | 0 komentar | Read More

Vivid Global Industries: Updates on outcome of AGM

Oct 22, 2013, 06.17 PM IST

Vivid Global Industries has submitted a copy of the Minutes of the Annual General Meeting of the Company held on September 27, 2013.

20.07 | 0 komentar | Read More

Som Distilleries Breweries: Outcome of AGM

Oct 22, 2013, 06.18 PM IST

Som Distilleries & Breweries has informed that the 20th Annual General Meeting (AGM) of the Company was held on September 30, 2013.

Like this story, share it with millions of investors on M3

Som Distilleries & Breweries: Outcome of AGM

Som Distilleries & Breweries has informed that the 20th Annual General Meeting (AGM) of the Company was held on September 30, 2013.

Like this story, share it with millions of investors on M3

Som Distilleries & Breweries: Outcome of AGM

Som Distilleries & Breweries has informed that the 20th Annual General Meeting (AGM) of the Company was held on September 30, 2013.

Comments (1)   .   Share  .  Email  .  Print  .  A+A-

Action in Som Distilleries and Breweries

20.07 | 0 komentar | Read More

SM Energy Teknik Electronics: Outcome of AGM

Oct 22, 2013, 06.19 PM IST

SM Energy Teknik & Electronics has informed that the 30th Annual General Meeting (AGM) of the Company was held on September 25, 2013.

Like this story, share it with millions of investors on M3

SM Energy Teknik & Electronics: Outcome of AGM

SM Energy Teknik & Electronics has informed that the 30th Annual General Meeting (AGM) of the Company was held on September 25, 2013.

Like this story, share it with millions of investors on M3

SM Energy Teknik & Electronics: Outcome of AGM

SM Energy Teknik & Electronics has informed that the 30th Annual General Meeting (AGM) of the Company was held on September 25, 2013.

Comments (1)   .   Share  .  Email  .  Print  .  A+A-

20.07 | 0 komentar | Read More

TTSL eyes merger with TTML; NTT eyes larger pie in TTSL?

Its consolidation time in the telecom sector and as every player gears up to remain competitive; Tata Teleservices (TTSL) joins the gang and this time around via a possible merger with Tata Teleservices Maharashtra (TTML), reports CNBC-TV18's Kritika Saxena.

CNBC-TV18 learns that TTSL is in exploratory talks to merger with TTML. "Since this is in exploratory stages it could mean two things. TTSL merges with TTML and lists on the stock exchanges or the other way around where TTML is delisted. The latter is highly unlikely;" said an executive familiar with the development who did not wish to be named. "The contours are still being worked out but basically the move will help TTSL consolidate its telecom portfolio and will help it enable easy access to raising capital;" he added.

Also Read: Reliance Jio gets Unified Licence to offer all telecom services

NTT to hike stake in TTSL?

In addition, sources say NTT Docomo, that holds 26.5 percent in TTSL is looking at hiking stake in the company. While the exact percentage of stake hike is not known, sources say that the company is looking at expanding its presence in India and is open to spending upto USD 1 billion in hiking its stake in India.

However, sources say the company will invest by hiking stake in tata teleservices. But if the merger does go through, the entire capital will be put into the joint entity post merger.

While the contours are still being worked out, experts say that if TTSL wants to remain competitive within the telecom space, it has to work on creating a larger entity and maybe even making way for a third investor

When contacted, TTSL and NTT did not respond to CNBC-TV18's queries. 

20.07 | 0 komentar | Read More

MM Financial Services Q2 PAT rises 18% to Rs 221 cr

Mahindra & Mahindra Financial Services ' second quarter (July-September) standalone profit after tax grew 18 percent year-on-year to Rs 221 crore and net interest income rose 29 percent to Rs 678 crore.

According to a CNBC-TV18 poll, analysts on an average had expected the non-banking finance company to report net profit of Rs 224 crore and net interest income of Rs 656 crore for the quarter.

Provisions increased 51 percent year-on-year to Rs 126 crore in the quarter gone by. Other income was lower at Rs 9.6 crore in during September quarter as against Rs 13.5 crore in a year ago period.

On consolidated basis, profit after tax of the non-banking finance company jumped 21 percent Y-o-Y to Rs 232.5 crore and net interest income rose 30 percent to Rs 738 crore in second quarter.

Mahindra & Mahindra Financial Services' stock closed at Rs 279.50, up 2.68 percent from previous close on the Bombay Stock Exchange.

20.07 | 0 komentar | Read More

DWS Short Maturity Fund declares bonus unit

Deutsche Mutual Fund has announced bonus units under the bonus sub option of DWS Short Maturity Fund.  The record date for declaration of bonus is October 25,  2013.

Accordingly, the bonus units on the face value of Rs 10 per unit will under DWS Short Maturity Fund - Regular Plan - Annual Bonus Option & Direct Plan - Annual Bonus Option: 0.50 units for every unit held under each option/plan.

20.07 | 0 komentar | Read More

Edelweiss Absolute Return Fund declares dividend

Oct 21, 2013, 06.19 PM IST

Edelweiss Absolute Return Fund announces dividend, for which the record date is October 25, 2013

20.07 | 0 komentar | Read More

Sundaram Select Mid Cap declares dividend

Sundaram Mutual Fund has announced dividend under the dividend options of direct, regular and institutional plans of Sundaram Select Mid Cap. The record date for declaration of dividend is October 25,  2013.

The amount of dividend will be Re 1 per unit each on the face value of Rs 10 per unit.

Sundaram Select Mid Cap is an open-ended equity scheme. The objective is to primarily achieve capital appreciation by investing in diversified stocks that are generally termed as 'mid-caps'.

20.07 | 0 komentar | Read More

Supreme Petrochem Q2 profit soars 4 times to Rs 26.5 cr

Moneycontrol Bureau

Polystyrene manufacturer Supreme Petrochem 's second quarter (July-September) net profit surged four times year-on-year to Rs 26.5 crore on strong overseas revenues, despite higher tax expenses.

Net sales increased 28 percent to Rs 783.6 crore in September quarter from Rs 613.7 crore in a year ago period, including overseas income from operations of Rs 205.05 crore (as against Rs 97.43 crore in Q2FY13).

"The likely rationalisation of Styrene Monomer (main raw material) prices and stabilisation of rupee will help to improve market sentiment and assist demand growth in the last two quarters of current financial year," the company said in its release.

Tax expenses jumped four times to Rs 13.03 crore from Rs 3.25 crore during the same period.

20.07 | 0 komentar | Read More