Stock News

L&T ends flat...Moody`s changed outlook to -ve from stable
India Infoline News Service / Mumbai Aug 20, 2009 18:30
Shares of L&T slipped from days high to flat at Rs1482. The stock opened at Rs1499.
Moody's Investors Service today changed the outlook on L&T Baa2 issuer rating to negative from stable. The change in outlook reflects the increase in L&T's consolidated debt, which is higher than our previous expectations as a result of the company's rapid growth plans," says Ivan Palacios, a Moody's AVP/Analyst. "This increase in debt is evident at L&T's stand-alone level -- because of its large capital expansion program -- as well as at its infrastructure development and finance subsidiaries," adds Palacios, Moody's lead analyst for L&T.
Shares of L&T slipped from days high to flat at Rs1482. The stock opened at Rs1499 and made an intra-day high of Rs1518 and a low of Rs1475. Total traded volumes stood at 0.47mn shares.

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Crude oil hits 10-month high...ends above US$74
India Infoline News Service / Mumbai Aug 22, 2009 16:26
Weakness in the US dollar and positive economic data (from the US and Europe) bolsters optimism about economic rebound
Oil prices touched a 10-month high on Friday in New York, buoyed by weakness in the dollar and by positive economic data. On the other hand, natural-gas futures fell sharply to end at a fresh seven-year low, pressured by a glut in supplies.
Crude oil for October delivery increased 98 cents to US$73.89 per barrel at 2:50 p.m. on the New York Mercantile Exchange, the highest settlement since Oct. 20. October crude futures advanced 6.2% this week. Oil prices are up 66% this year.
Brent crude oil for October settlement rose 86 cents, or 1.2%, to end the session at US$74.19 a barrel on the London-based ICE Futures Europe exchange.
Crude oil futures climbed after US existing home sales increased more than forecast and a closely watched gauge of economic activity across the 16-nation euro-zone's private sector registered a record jump.
Purchases of existing homes climbed 7.2% to a 5.24 million annual rate, the most since August 2007, the National Association of Realtors said in Washington. The gain was the biggest since records began in 1999.
The preliminary Markit composite purchasing managers' index (PMI) for the eurozone rose to a 15-month high of 50 in August from 47 in July. The record monthly jump exceeded economists' expectations for an increase to 48.3.
An index of the German services industry rose to 54.1 this month from 48.1 in July, Markit Economics said, citing its purchasing managers’ survey. The French manufacturing index increased to 50.2 in August from 48.1 in the prior month. A reading above 50 indicates growth.
Economists forecast both indexes would remain below 50.
The US dollar fell against the euro and other major currencies following upbeat economic data from Europe and the US.
The dollar index, which tracks the greenback against a trade-weighted basked of six major currencies, stood at 78.020, down from 78.330 late on Thursday. Weakness in the US currency boosts dollar-denominated commodities such as oil and gold, because it makes them cheaper for holders of other currencies.

Market Talk

Sensex retreats…Nifty ends below 4600
India Infoline News Service / Mumbai Aug 14, 2009 15:50
Sensex slipped 107 points or 0.7% at 15,412 while, Nifty slipped by 25 points to shut shop at 4,580.

The BSE Sensex slipped 107 points or 0.7% at 15,412 after touching a high of 15,535 and a low of 15,367. The index opened at 15,530 against the previous close of 15,518. The NSE Nifty slipped by 25 points to shut shop at 4,580.
In Asia, the Nikkei in Japan gained by 0.8% at 10,597 while Australia's S&P/ASX gained 0.6% at 4,461. The Hang Seng index in Hong Kong gained 0.2% at 20,893. Shanghai index in China slipped 3% at 3,046. In Europe, stocks were trading in the green. The FTSE in the UK was up 0.2%. The DAX in Germany was up 0.2% and the CAC 40 index in France was up 0.3%. Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, losing 2%, followed by the FMCG index that was down 1.3%. The BSE Teck index down 1.3% and the BSE Auto index was down 1.2%.
Among the major gainers were, BSE Oil & Gas index up 1.5% and BSE Consumer Durables index up 0.9%
The BSE Mid-Cap index slipped by 0.3% and the BSE Small-Cap index edged higher by 0.3%.
Within the Sensex, the major losers were JP Associates, HUL, ACC, RCOM, NTPC, HDFC and Maruti. Among the major gainers were, ONGC, Reliance Infra and Reliance Industries.
Outside the frontline indices, the big losers in the broader market were Balrampur Chini, Renuka Sugar, HCL Tech, Akcruti, PFC and Gujarat NRE. On the other hand, gainers included United Phosphorous, Jet Airways, Gujarat Petronet, Bhushan Steel and EKC.

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Indian textile biz vulnerable to global recession: Fitch
India Infoline News Service / Mumbai Aug 17, 2009 16:19
The agency notes the Indian textile sector remains highly vulnerable to the global recession due to its huge
The credit quality of Indian textile companies weakened considerably since the beginning of the financial year 2009 (FY09), spurring rating actions ranging from Outlook revisions to multiple-notch downgrades according to a new report by Fitch Ratings. The agency notes the Indian textile sector remains highly vulnerable to the global recession due to its huge dependence on exports. In FY09, soaring cotton prices and higher power costs, coupled with the appreciation of the rupee against the dollar made Indian exports less lucrative in the export markets. These factors coupled with mark-to-market and actual forex losses on forward contracts and exotic derivative transactions translated into negative results for many players, and EBITDA losses for some.
Spinning mills and small-garments exporters showed the most vulnerability. Fitch views that domestic demand remains resilient and registered a positive growth yoy, but notes an overall fall in margins. Fitch believes that the earnings outlook for FY10 remains rather grim. Only temporary relief is expected from the fall in the rupee during H109, as forex movements have been persistently volatile warranting the benefit to be passed on to buyers in the highly-competitive export markets.
Raw cotton prices are expected to remain firm, while the sub-normal monsoon could worsen the situation in the 2009-2010 cotton season. The man-made textiles (MMT) segment could again see an input cost pressure on the back of steadily rising crude oil prices. However, demand for MMT would not be adversely impacted on this account, as it provides a cheaper substitute to cotton in the mass clothing segment. Fitch is concerned with the strained coverage ratios and peaking leverage indicators of textile companies. Though interest rates in general have come off the peak, debt repayments could weigh heavily on the contracting cash flows, increasing the default risk. Fitch believes that the textile sector requires an infusion of equity across the board given the relatively high financial leverage with which the sector has been operating over the past few years.
Nevertheless, high leverage will continue to plague the sector, at least in the medium term, given the long-dated debt maturities of the TUFS (Technology Upgradation Fund Scheme) loans taken out for expanding and revamping of production facilities. Recently, on 6 August 2009, the government announced the release of a Rs25.5bn subsidy for the sector under TUFS to clear the backlog of pending disbursements up to 30 June 2009. This is expected to ease liquidity pressures, depending upon the actual funds tied up in TUFS by different companies.

Top Storis

Sensex closes at 2009 high
India Infoline News Service / Mumbai Jul 31, 2009 15:54
Sensex advanced 282 points or 1.8% at 15,670 while, Nifty advanced 65 points or 1.4% to shut shop at 4,636.

The BSE Sensex advanced 282 points or 1.8% at 15,670 after touching a high of 15,733 and a low of 14,449. The index opened at 15,449 against the previous close of 15,387. The NSE Nifty advanced 65 points or 1.4% to shut shop at 4,636.


In Asia, the Nikkei in Japan ended up by 1.9% at 10,356, while Australia's S&P/ASX ended higher by 1.2% at 4,244. The Hang Seng index in Hong Kong gained by 1.7% to end at 20,573. Shanghai index in China gained 2.5% to end at 3,412. In Europe, stocks were mixed. The FTSE in the UK was down 0.2%. The DAX was down 0.5% and the CAC 40 was down 0.3%. Coming back to India, among the BSE sectoral indices, the FMCG index was the top gainer, gaining 3.1%, followed by the Oil & Gas index that was up 2.6%. The BSE Bankex index up 2% and the BSE IT index was up 1.8%.



The BSE Mid-Cap index gained 1.1% and the BSE Small-Cap index ended flat. Within the Sensex, the major gainers were Hindalco, Tata Motors, ONGC, SBI, HUL, Reliance Industries, ITC and Sterlite Industries. Among the major losers were Bharti, RCom, Hero Honda, DLF and NTPC. Outside the frontline indices, the top gainers included Bharat Forge, Max India, Mundra Port, Nestle and Bajaj Holdings.



Among the big loser in the broader market were CESC, Ackruti, LITL, Divis Lab, Chambal Fert, GMDC and HCL Tech.

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India`s inflation at -1.74% in week ended August 1
Infoline News Service / Mumbai Aug 13, 2009 17:53
The government announced that it revised inflation in week to June 6 to -1.01% from -1.61%.

India's inflation, as measured by the wholesale price index (WPI) stood at -1.74% in the week ended August 1 as compared to 1.58% in the previous week, the Government said on Thursday. Inflation was at 12.91% during the corresponding week of the last year (wee ended Aug. 2, 2008). For the week ended 1st August, 2009 the WPI for "All Commodities" rose by 0.1% to 237.2 from 236.9 in the previous week.
The index for the Primary Articles group rose by 0.1% to 262.5 while the index for Food Articles group was up by 0.2% at 261.4. The index for the Fuel & Power group rose marginally to 338.3 from 338.2 in the previous week due to higher prices of aviation turbine fuel (2%). The index for the Manufactured Products group rose by 0.1% to 205.9.
The Government today announced that it had revised the inflation rate for the week ended June 6 to -1.01% from -1.61%. The WPI for the same week has been revised to 234.1 as compared to the preliminary estimate of 232.7.

Market Talk

Stock split...Gammon Infra locked at upper circuit
India Infoline News Service / Mumbai Aug 11, 2009 17:23
Shares of Gammon Infra were locked by 5% upper circuit to Rs103.5.

The Board of Directors of Gammon Infrastructure approved the sub-division of the issued and un-issued equity shares of the Company of the face value of Rs 10/- (Ten) each into 5 (Five) equity shares of Rs 2/- (Two) each, subject to the approval of the shareholders.
Shares of Gammon Infra were locked by 5% upper circuit to Rs103.5. The stock opened at Rs95 and made an intra-day high of Rs103.5 and a low of Rs94. Total traded volumes stood at 27,000 shares.

Market Talk

Tata Motors records smart gains
India Infoline News Service / Mumbai Jul 30, 2009 13:03
At 13:03pm (IST), Shares of Tata Motors have gained by 1.5% to Rs399.
Shares of Tata Motors have gained by 1.5% to Rs399. According to reports, the company has called for major cost cuts at Jaguar-Land Rover, its subsidiary.
The stock opened at Rs389 and made an intra-day high of Rs403 and a low of Rs385. Total traded volumes stood at 2.8mn shares.

Market Talk

ONGC further loses ground
Mumbai Jul 27, 2009 12:46
The company posted a net profit of Rs48.479bn for the quarter ended June 30, 2009 as compared to Rs66.363bn. Shares of ONGC have further lost ground on the back of disappointing quarterly results. The stock is down 2% to Rs1103, it had opened at Rs1140 and made an intra-day high of Rs1158 and a low of Rs1097. Total traded volumes stood at 0.7mn shares.
The company posted a net profit of Rs48.479bn for the quarter ended June 30, 2009 as compared to Rs66.363bn for the quarter ended June 30, 2008, posting a decline of 27% YoY.
The total income has decreased from Rs211bn for the quarter ended June 30, 2008 to Rs159.2bn for the quarter ended June 30, 2009.

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China crash spooks Sensex

India Infoline News Service / Mumbai Jul 29, 2009 18:53

Sensex lost 158 points or 1% at 15,173 while, Nifty slipped 51 points or 1.1% to shut shop at 4,513.

Indian markets ended with losses on Wednesday as the bulls suffered from fatigue aftera two-week rally. It was the global cues that weighed on Dalal Street. The BSE Sensex slipped sharply after the main Shanghai index nose-dived nearly 8% in China posting its biggest drop since November 2008. The index finally shut shop losing 172 points, or 5% at 3,266.
According to reports, China's two biggest state-owned commercial banks have put a lid on their 2009 lending targets.

Coming back to domestic markets, the exchanges recorded its third higher turnover ever in history. The Realty, Consumer Durables, Metal and FMCG stocks witnessed heavy offloading. Even the Mid-Cap and the Small-Cap stocks were under selling pressure.

On the other hand, bucking the negative trend were, the IT and the Oil & Gas stocks.
The BSE Sensex lost 158 points or 1% at 15,173 after touching a high of 15,373 and a low of 14,888. The index opened at 15,293 against the previous close of 15,332. The NSE Nifty slipped 51 points or 1.1% to shut shop at 4,513.

In Asia, the Nikkei in Japan ended up by 0.3% at 10,113, while Australia's S&P/ASX ended lower by 0.7% at 4,142. The Hang Seng index in Hong Kong slipped by 2.3% to end at 20,135. Shanghai index in China fell 5% to end at 3,266. In Europe, stocks were in momentum. The FTSE in the UK was up 1% at 4,566. The DAX was up at 1.5% 5,250 and the CAC 40 was up 1.3% at 3,376. Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, losing 4.5%, followed by the Consumer Durables index that was down 3%. The BSE Metal index down 2.5% and the BSE Capital Goods index was down 2.5%.

The BSE Mid-Cap index slipped 1.5% and the BSE Small-Cap index fell 1.1%. Within the Sensex, the major losers were DLF, Tata Steel, Sterlite, Sun Pharma, Tata Motors, Grasim and Reliance Infra. Among the major gainers were TCS, Tata Power, M&M, Hindalco, Reliance Industries and Wipro. Outside the frontline indices, the top losers included IVRCL Infra, Century Tex, Nestle, Ispat, Titan and EKC.
Among the big gainers in the broader market were Balrampur Chini, Aban, Rolta, REC Ltd, Exide, Sun TV and PNB.

Shares of Tata Steel slipped by 5.5% to Rs442 after the company posted a net profit of Rs7.89bn for the quarter ended June 30, 2009 as compared to Rs14.88bn for the quarter ended June 30, 2008. Thereby posting as decline of 47% YoY.

Total Income has decreased from Rs6.16bn for the quarter ended June 30, 2008 to Rs56.61bn for the quarter ended June 30, 2009. The stock opened at Rs467 and made an intra-day high of Rs470 and a low of Rs426. Total traded volumes stood at 6.7mn shares.
Shares of Sun Pharmaceutical declined by 5% to Rs1188 after the company posted a net profit after minority interest of Rs1.63bn for the quarter ended June 30, 2009 as compared to Rs5.01bn for the quarter ended June 30, 2008. Thereby posting a decline of 67% decline YoY. The total income decreased from Rs10.669bn for the quarter ended June 30, 2008 to Rs8.146bn for the quarter ended June 30, 2009.

Jindal Steel & Power (JSPL) has posted a net profit of Rs9.884bn for the quarter ended June 30, 2009 as compared to Rs4.436bn for the quarter ended June 30, 2008. Thereby posting a growth of 123% YoY. The total income has increased from Rs 21.803bn for the quarter ended June 30, 2008 to Rs 27.862bn for the quarter ended June 30, 2009.

Shares of JSPL shot up by over 3.5% to Rs3117. The stock opened at Rs3015 and made an intra-day high of Rs3237 and a low of Rs2861. Total traded volumes stood at 0.7mn shares.
The Board of Directors of JSPL also approved to issue five fully paid bonus shares of Re 1/- each for every one existing equity share of Re 1/- each held by the Shareholders of the Company.
Shares of Great Offshore gained by 4% to Rs457 after ~1.44mn equity shares, or 3.8% of its equity, changed hands on the BSE at an average price of Rs450.

Another 111,940 equity shares changed hands on the NSE at the same price. ABG Shipyard bought shares of Great Offshore in a block deal, stated media reports. The company had ~1.66mn equity shares, or 4.5% of its equity, change hands in two transactions on Wednesday.

Shares of Gammon India erased early losses and rallied by over 9% to end at Rs163. The stock fell sharply in the morning trades hitting a low of Rs130 after reports stated that the company may lose government in the future. The stock opened at Rs145 and made an intra-day high of Rs176 and a low of Rs130. Total traded volumes stood at 2.2mn shares.

Shares of Kingfisher Airlines surged by over 2.5% to Rs53 after the company announced that it plans to raise up to Rs5bn. The company may raise the money through a rights offer, or a secondary offering or a placement of depository receipts.

Shares of Gujarat Gas rallied by over 14% to Rs368 after the company announced it Q2 results with net profit at Rs478.3mn posting a 10% growth YoY. While, Net sales were at Rs3.32bn as against Rs3.06bn in the same period last year.

The board of directors of the company has recommended a bonus issue of equity shares in the ratio of one equity share of the company of Rs2/- each for every one equity share held by the equity shareholders of the company.

Shares of Hexaware gained by over 4% to Rs62.5 after the company announced its quarterly earnings. The stock opened at Rs59.9 and made an intra-day high of Rs64.7 and a low of Rs59.9. Total traded volumes stood at 1.9mn shares.

Revenue from operations stood at US$ 53.6mn surpassing the upper end of the revenue guidance of US$53mn. Q-o-Q increase of 1.8% in US$ terms, up from US$52.6mn. Profit after Tax rose up to US$ 8.2mn, Q-o-Q increase of 139.8% in US$ terms, up from US$3.4mn. Gross Margin rose up to 47.6% against 43.8% last quarter. EBITDA Margin improved to 21.5%, 670bps over Q1 ’09. Operating Margin (EBIT Margin) improved to 18.8% from 12.3% in Q1 ’09. PAT margin rose to 15.2% from 6.5 % in the previous quarter. 10 new clients added during the quarter; 166 active clients.

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RBI survey sees FY10 GDP growth at 6.5%
(India Infoline News Service )Mumbai Jul 27, 2009 17:26
The Industrial Outlook Survey of the RBI conducted in April-May 2009 shows a turnaround in the business sentiment
The results of the latest round of survey of Professional Forecasters’ conducted by the Reserve Bank of India (RBI) in June 2009 indicate overall (median) GDP growth rate for 2009-10 at 6.5%, which is higher from 5.7% that was reported through the findings of the earlier survey conducted in March 2009.
The Industrial Outlook Survey of the RBI conducted in April-May 2009 shows a turnaround in the business sentiment. For the manufacturing companies in the private sector, the business expectations indices based on an “assessment for April-June 2009” and on “expectations for July-September 2009” improved sharply by 20.3% and 14%, respectively, over the previous quarter, when these indices had recorded their lowest levels since the inception of the survey.

The growth outlook for 2009-10 needs to be assessed in the context of indications emerging from lead indicators so far, the RBI said. Indicators such as the higher growth in core infrastructure sector, positive growth in IIP, gradual revival in demand for non-food credit, improving performance of the corporate sector in terms of both sales and profitability, gradual return of risk appetite in the capital market, more optimistic business expectations and forecasts as reflected in the RBI’s surveys could be viewed as signs of recovery from the slowdown, the central bank said.

However, there are other factors which may dampen the growth outlook such as the delayed progress of monsoon, decline in exports due to the persistence of global recession, lagged impact of the negative growth in manufacturing in the last quarter of 2008-09 on services demand, negative growth in capital goods, decline in the production of commercial vehicles, and an accelerated fall in import growth suggesting dampened demand conditions, the RBI said.

India’s structural growth impulses continue to remain strong, given the high domestic saving rate, sound financial system, and growth supportive macroeconomic policy environment, the RBI said. Domestic deceleration in demand and persistent uncertainty in the global conditions, however, operate as the major drag on a faster recovery, it added. Early indications for India suggest that the revival impulses need to strengthen further to boost the consumer and investor confidence, which could then set off a positive feedback loop to lift the growth momentum over time, the RBI said.

Stock News

Instanex FII index down 0.80% at close
India Infoline News Service / Mumbai Aug 10, 2009 16:56
Of the 15 components of the Instanex FII Index, 12 were down and three were up.

At close, the Instanex FII Index was down 0.80% at 317.92 (-0.39% at 3 pm) and the Instanex DII 15 portfolio was down 1.33% (-0.90% at 3 pm). Sensex was down 0.99% (-0.59% at 3 pm) and Nifty was down 0.98% (-0.58% at 3 pm). The other Instanex Owner Indexes were also down – the Instanex Top 15 portfolio was down 0.76% (-0.28% at 3 pm), the Instanex Promoter 15 portfolio was down 0.68% (-0.14% at 3 pm) and the Instanex Retail 15 portfolio was down 0.65% (-0.19% at 3 pm). However, Asian markets were up – Hang Seng was up 2.72%, Jakarta Composite was up 1.72% and Nikkei 225 was up 1.08%.
Of the 15 components of the Instanex FII Index, 12 were down and three were up. The main losers were HUL (-3.48%; weight 2.81%), ITC (-2.69%; weight 3.91%) and ICICI Bank (-2.54%; weight 9.77%) and the main gainers were TCS (+6.02%; weight 3.69%) and Infosys (+2.20%; weight 13.14%).

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L&T seeks consent to sell Mahindra Satyam stake; reports
India Infoline News Service / Mumbai Aug 05, 2009 16:34
Under the conditions of the Satyam sale, bidders for the company are barred from selling their stakes, acquired prior to the bid, for six months.
L&T has requested for permission from the market regulators to offload its stake in Mahindra Satyam, stated reports.
L&T had acquired up to12% stake in Mahindra Satyam, earlier ahead of the sale of the company, hit by the country’s biggest corporate fraud.
In the month of April, L&T ended losing the bid for a controlling stake Mahindra Satyam, which was ultimately acquired by Tech Mahindra. Under the conditions of the Satyam sale, bidders for the company are barred from selling their stakes, acquired prior to the bid, for six months.

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RBI retains 6% GDP forecast; but with an upward bias
There are now signs of an upturn in industrial production and revival of credit demand, though the delayed monsoon has increased the downside risks
On current assessment, the growth projection for GDP for 2009-10 is placed at 6% with an upward bias, the Reserve Bank of India (RBI) said on Tuesday while announcing the first quarter review of the annual monetary policy. This updated growth projection for 2009-10, thus, marks a slight improvement over the growth expectations of around 6% indicated in the Annual Policy Statement in April, the central bank said.

There are now signs of an upturn in industrial production and revival of credit demand, though the delayed monsoon has increased the downside risks to agricultural production, the RBI said in a statement. Although the share of agriculture and allied activities in GDP has declined over the years and is currently at 17.5%, good agricultural performance is critical not only because it employs over 55% of the labour force but also for ensuring stability in food prices, it added.

Domestic and external financing conditions are also now more favourable than they were in the second half of 2008-09, the RBI said. The business outlook has turned positive signaling a revival of industrial activity, it added. But, export demand will continue to remain weak. Similarly, during the earlier part of 2009-10, the services sector may experience the drag of sluggish external demand and the lagged adverse impact of the weak industrial growth, the RBI said.

Also, the onset of the south-west monsoon has been delayed and it remains below normal, increasing the downside risks to agricultural production, the central bank said. On balance, an uptrend in the growth momentum is unlikely before the middle of 2009-10, it added.

In 2008-09, real GDP increased by 6.7%, in line with the projection in the RBI's Annual Policy Statement. However, the growth pattern was uneven as real GDP growth decelerated from 7.7% in the first half of the year to 5.8% in the second half.

This was mainly because of the global financial crisis, which affected external demand, domestic private consumption and investment demand, the RBI said. The overall macroeconomic scenario continues to be uncertain, although it is expected that the fiscal and monetary stimulus measures will boost domestic demand in 2009-10, it added.

The growth of 6.7% during 2008-09 was better than most analysts had expected, and decidedly better than the performance of most other economies, the RBI said. The growth projection for the current year of 6% with an upward bias reflects the absence of any firm signs of definite recovery in the world economy, it added. The challenge is to return the economy to the high growth rate of 9% that we averaged in the period 2005-08, the RBI said.

Notwithstanding the temporary hiccups of the crisis period, India is not a demand constrained economy; it is a supply constrained economy, the RBI said. The critical requirement for accelerated growth is to raise the level of investment, particularly in infrastructure, it added.

Despite some measured optimism of a turnaround sooner than expected, a firm recovery at the global level is unlikely before 2010, the RBI said. This continued uncertainty in the immediate outlook is reflected in the downward revision of global growth for 2009 by the IMF from (-)1.3% made in April 2009 to (-)1.4% in July 2009, it added.

Since the outbreak of the crisis in mid-September 2008, the RBI has maintained an accommodative monetary stance. "It will be our endeavour to maintain a policy stance that will aid return of the economy to the high growth path. At the same time, there are factors - stubborn food price inflation, rebound in world commodity prices, expansionary monetary and fiscal policies - that could potentially build inflationary pressures," the RBI said. Accordingly, the task of returning the economy to a high growth path, viewed from the current perspective, throws up some important challenges, it added.

Top Stories

ICICI Bank Q1 net up 21% at Rs 878cr

MUMBAI: ICICI Bank posted a 20.63% increase net profit at Rs 878.22 crore for the first quarter ended June 30, 2009 when compared with Rs 728.01 crore for the quarter ended June 30, 2008.Total income declined from Rs 9,429.98 crore for the quarter ended June 30, 2008 to Rs 9,223.32 crore for the quarter ended June 30, 2009.The group posted a 68% increase in consolidated net profit of Rs 1,035.26 crore for the quarter ended June 30, 2009 when compared with Rs 617.27 crore for the quarter ended June 30, 2009. Total income declined from Rs 14.644.30 crore for the quarter ended June 30, 2008 to Rs 14,615.06 crore for the quarter ended June 30, 2009.

According to a release issued by the bank today, current and savings account (CASA) ratio increased to 30.4% at the end of June 30, 2009 from 27.6% on June 30, 2008. The bank had strong capital adequacy ratio of 17.4% and tier-1 capital adequacy ratio of 13.%, the release added.Net interest income (NII) for Q1FY10 was Rs 1,985 crore when compared with Rs 2,090 crore in Q1FY09 - a decline of 5%. The net interest margin was maintained at 2.4%, the release added.The net non-performing assets ratio was 2.19% compared with 1.96% on March 31, 2009 reflecting the decline in the loan portfolio.Bank reduced nearly Rs 200 crore on direct market agent (DMA) expense in Q1FY10 at Rs 27 crore when compared with Rs 228 crore in Q1FY09.

Top Stories

CEAT Q1 net profit at Rs602mn
Mumbai Jul 24, 2009 15:43
CEAT reported an EBITDA of 16.8%
RPG Group’s flagship company CEAT Ltd. has reported a net profit of Rs602mn for the first quarter of the financial year 2009-10. The company’s net sales are Rs6.74bn in Q1 of the current fiscal year.
The company registered an outstanding operating PBT to net sales ratio of 13.5% in the first quarter, the highest in the industry for this quarter. CEAT reported an EBITDA of 16.8%, again being the industry best for this quarter.
Paras K. Chowdhary, MD, CEAT Ltd. said, “CEAT has profitability based business model which is reflected in our Q1 results. We have improved our operational efficiencies, product mix and aggressively increased our replacement market

Top Stories

RIL Q1 net down 13%; experts see stock correcting on Monday
Market bellwether Reliance Industries' Q1 FY10 results have come in as a disappointment. Experts see the stock correcting on Monday. SP Tulsian of sptulsian.com sees the stock falling by Rs 175-200 on Monday, while Deepak Pareek of Angel Broking expects the stock to open 3-4% lower. The stock has a weightage of 12% on the Nifty leading to fears that it will pull the market down. India's largest private refiner's standalone net profit declined by 11.5% to Rs 3,636 crore from Rs 4,110 crore in the same period of last year. Standalone net sales slipped 22.9% to Rs 32,055 crore versus Rs 41,579 crore year-on-year. Earning before interest, tax, depreciation and amortisation fell 3.3% to Rs 5,921 crore from Rs 6,121 crore. Operating profit stood at Rs 4,293 crore and standalone petchem revenues declined 22.4% to Rs 11,540 crore from Rs 14,871 crore last year.Gross refining margins have come in at USD 7.5 per barrel as against the street's expectations of USD 8-8.5 per barrel.

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Dow Jumps Past 9000 Mark
U.S. stocks are rallying after a bigger-than-expected increase in sales of existing homes. The National Association of Realtors says sales of previously occupied homes rose 3.6 percent from May to June.