Thursday, January 29, 2009
Govt likely announce third stimulus 29/01/2009
The Government is likely to announce a third stimulus package soon to fuel economic growth, Minister of State for Industry Ashwani Kumar today said.
"There will be sector-specific packages announced very soon to boost consumption. There will be some packages for the infrastructure sector as well as for exporters," he told reporters here today.
He, however, did not divulge any details about the proposed package.
The Minister said that the current year would be a difficult year, but the country would still clock a respectable 6.5-7 per cent growth.
The recent monetary and fiscal measures initiated by the Reserve Bank and Finance Ministry would take around six months to make their impact felt, he said.
Comparing India's economy with China, he said that India's economic growth momentum has been on the back of domestic consumption while that of its neighbour has been export-driven.
"Domestic consumption is not shaken. When the world starts getting out of the morass it is in right now, India will be in the front league," Kumar said, adding that "we have to be realistic and accept that we will not grow at a rate of 8.5 or 9 per cent."
"The rest, except China will show negative growth. Despite the turbulence, India has been able to insulate itself," Kumar said.
Fuel Cut Impact Near Term
The fuel price revision on Wednesday is likely to wipe out the Rs 1,100 crore net revenue earned by the three oil marketing companies (OMC) — Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) — in the last one month, say officials from these companies.
Prior to the price cut, these companies were getting a high retail margin of Rs 8 per litre on petrol and Rs 3 per litre on diesel, which more than offset the under-recoveries on LPG (Rs 32 per cylinder) and kerosene (Rs 14 per litre).
With the price-cut of Rs 5 per litre on petrol, Rs 2 on diesel and Rs 25 per LPG cylinder along with the increase in crude oil prices, these margins are likely to be eroded.
The price of the Indian basket of crude has already crossed $40 per barrel from a low of $35 last month.
Analysts say the price revision could impact the January-March quarter’s margins of these companies, especially if international crude oil prices rise further.
“This price reduction could also spur demand, and if the international crude oil prices also spike, together they could impact the bottom line of the oil marketing companies,” said a Mumbai-based analyst.
Prior to the price cut, these companies were getting a high retail margin of Rs 8 per litre on petrol and Rs 3 per litre on diesel, which more than offset the under-recoveries on LPG (Rs 32 per cylinder) and kerosene (Rs 14 per litre).
With the price-cut of Rs 5 per litre on petrol, Rs 2 on diesel and Rs 25 per LPG cylinder along with the increase in crude oil prices, these margins are likely to be eroded.
The price of the Indian basket of crude has already crossed $40 per barrel from a low of $35 last month.
Analysts say the price revision could impact the January-March quarter’s margins of these companies, especially if international crude oil prices rise further.
“This price reduction could also spur demand, and if the international crude oil prices also spike, together they could impact the bottom line of the oil marketing companies,” said a Mumbai-based analyst.
Bhel Results And Order Books
Bharat Heavy Electricals (BHEL), the country's largest power equipment manufacturer, has posted a marginal 2.4 per cent increase in net profit for the third quarter ended December 2008 on the back of increased raw material costs and higher wage revision.
The company has posted a net profit of Rs 790.56 crore for the reporting quarter as compared to Rs 771.90 crore posted in the corresponding quarter in the previous financial year.
“The marginal increase in profit is because of accomodating a wage revision of Rs 1,300 crore (40 per cent) for the current year and increased cost of raw materials in the June-August quarter,” said K Ravi Kumar, chairman and managing director of the company.
“Had it not been for the wage revision and the increased costs, we would have posted a 15 per cent jump in net profit,” he added.
Total income of the company in the quarter has increased 21 per cent at Rs 6,328 crore as compared to Rs 5,229 crore posted in the corresponding quarter last year.
The company has set a target of achieving a turnover of about 25,000 crore and an increases in net profit of about 27 per cent by the end of the current fiscal.
BHEL is the country’s largest manufacturer of power equipment with a current manufacturing capacity of about 10,000 Mw. The company further plans to ramp it up to 15,000 Mw by the end of the current plan period.
The company has an outstanding order book position of about Rs 113,500 crore at the end of the quarter ended December 2008.
The company has posted a net profit of Rs 790.56 crore for the reporting quarter as compared to Rs 771.90 crore posted in the corresponding quarter in the previous financial year.
“The marginal increase in profit is because of accomodating a wage revision of Rs 1,300 crore (40 per cent) for the current year and increased cost of raw materials in the June-August quarter,” said K Ravi Kumar, chairman and managing director of the company.
“Had it not been for the wage revision and the increased costs, we would have posted a 15 per cent jump in net profit,” he added.
Total income of the company in the quarter has increased 21 per cent at Rs 6,328 crore as compared to Rs 5,229 crore posted in the corresponding quarter last year.
The company has set a target of achieving a turnover of about 25,000 crore and an increases in net profit of about 27 per cent by the end of the current fiscal.
BHEL is the country’s largest manufacturer of power equipment with a current manufacturing capacity of about 10,000 Mw. The company further plans to ramp it up to 15,000 Mw by the end of the current plan period.
The company has an outstanding order book position of about Rs 113,500 crore at the end of the quarter ended December 2008.
Wednesday, January 28, 2009
Reliance Power Wins Tilaiya UMPP
Reliance Power has bagged the Tilaiya ultra mega power project (UMPP) in Jharkhand by offering to supply power at Rs 1.77 per unit — the lowest price quoted by the four companies in the fray.
The next best bid for the Rs 16,000-18,000-crore project came from government owned NTPC, which offered to supply power from the pithead coal project at Rs 2.39 per unit.
There were two other bidders — Jindal Steel and Power which offered to supply power at Rs 2.69 per unit and Sterlite Industries which bid the highest at Rs 2.97 per unit.
The fifth company shortlisted to bid, Lanco Infratech, partnership with Genting Power International, withdrew at the last minute, according to an official of the Power Finance Corporation (PFC), which is the nodal agency for the ultra mega power projects. Lanco said that bankers to its partner, Genting Power, withdrew support for the project at the last moment, forcing them to withdraw their bid.
This is the third UMPP won by the Anil Ambani group company, after Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
Eleven companies had originally qualified to bid for the Tilaiya UMPP but the global financial meltdown and the subsequent credit crunch saw many companies opt out of the bid. These included the likes of Tata Power and Larsen & Toubro.
Analysts described Reliance’s winning bid as “very aggressive,” citing the huge gap between the lowest bid (Rs 1.77 per unit) and the second best bid (NTPC’s Rs 2.39 per unit). The bid was however much higher than the Rs 1.19 per unit that the company bid for the comparable project at Sasan
The next best bid for the Rs 16,000-18,000-crore project came from government owned NTPC, which offered to supply power from the pithead coal project at Rs 2.39 per unit.
There were two other bidders — Jindal Steel and Power which offered to supply power at Rs 2.69 per unit and Sterlite Industries which bid the highest at Rs 2.97 per unit.
The fifth company shortlisted to bid, Lanco Infratech, partnership with Genting Power International, withdrew at the last minute, according to an official of the Power Finance Corporation (PFC), which is the nodal agency for the ultra mega power projects. Lanco said that bankers to its partner, Genting Power, withdrew support for the project at the last moment, forcing them to withdraw their bid.
This is the third UMPP won by the Anil Ambani group company, after Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
Eleven companies had originally qualified to bid for the Tilaiya UMPP but the global financial meltdown and the subsequent credit crunch saw many companies opt out of the bid. These included the likes of Tata Power and Larsen & Toubro.
Analysts described Reliance’s winning bid as “very aggressive,” citing the huge gap between the lowest bid (Rs 1.77 per unit) and the second best bid (NTPC’s Rs 2.39 per unit). The bid was however much higher than the Rs 1.19 per unit that the company bid for the comparable project at Sasan
Vedanta Quaterly Numbers Dips
Metals and mining major Vedanta Resources Plc today announced 31 per cent decline in revenues at $1.30 billion for the third quarter ended December 31, on sharp fall in metal prices amid deteriorating economic conditions.
The revenues of the London Stock Exchange-listed firm had been $1.88 billion in the same quarter last fiscal, the company said in a statement.
Impacted by inventory write-downs to the tune of $104 million, Vedanta's Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) dropped over 98 per cent to $10.1 million in third quarter this fiscal.
The earnings also suffered from negative provisional pricing adjustments of $47 million and currency translation losses of about $34 million.
Anil Agarwal-led Vedanta's EBITDA had stood at $671.5 million for the third quarter ended December in 2007.
Further, the record production volumes of zinc and aluminium and record sales of iron ore were primarily offset by steep falls in commodity prices as well as negative provisional pricing adjustments and write-down of inventories to their net realisable value, the statement said.
Vedanta's aluminium production in the third quarter was a record 122,000 tonnes, a 23 per cent increase over the corresponding quarter, primarily due to the ramp-up and stepped commissioning of the first phase of the 500,000 tonnes per annum (tpa) Jharsuguda aluminium smelter etc.
The revenues of the London Stock Exchange-listed firm had been $1.88 billion in the same quarter last fiscal, the company said in a statement.
Impacted by inventory write-downs to the tune of $104 million, Vedanta's Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) dropped over 98 per cent to $10.1 million in third quarter this fiscal.
The earnings also suffered from negative provisional pricing adjustments of $47 million and currency translation losses of about $34 million.
Anil Agarwal-led Vedanta's EBITDA had stood at $671.5 million for the third quarter ended December in 2007.
Further, the record production volumes of zinc and aluminium and record sales of iron ore were primarily offset by steep falls in commodity prices as well as negative provisional pricing adjustments and write-down of inventories to their net realisable value, the statement said.
Vedanta's aluminium production in the third quarter was a record 122,000 tonnes, a 23 per cent increase over the corresponding quarter, primarily due to the ramp-up and stepped commissioning of the first phase of the 500,000 tonnes per annum (tpa) Jharsuguda aluminium smelter etc.
Results - 28/01/09
Tata Communications today reported a three-fold growth in net profit at Rs 80.95 crore for the third quarter ended December 31, 2008, as compared to Rs 26.71 crore in the corresponding period a year ago
The revenue from telecommunication services rose 17 per cent to Rs 990.24 crore for the quarter under review, from Rs 846.71 crore in the same period last fiscal.
For the nine-month period ended December 2008, the company reported a 13.71 per cent dip in net profit at Rs 211.92 crore. The firm had a net profit of Rs 245.60 crore in the same period in FY08.
The revenues rose 16.62 per cent to Rs 2,837.35 crore in the nine month period, from Rs 2,433.06 crore in the same period last fiscal.
The revenue from telecommunication services rose 17 per cent to Rs 990.24 crore for the quarter under review, from Rs 846.71 crore in the same period last fiscal.
For the nine-month period ended December 2008, the company reported a 13.71 per cent dip in net profit at Rs 211.92 crore. The firm had a net profit of Rs 245.60 crore in the same period in FY08.
The revenues rose 16.62 per cent to Rs 2,837.35 crore in the nine month period, from Rs 2,433.06 crore in the same period last fiscal.
TA
Tata Communications today reported a three-fold growth in net profit at Rs 80.95 crore for the third quarter ended December 31, 2008, as compared to Rs 26.71 crore in the corresponding period a year ago
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