RBI Monetary Policy Expectations
With Inflation showing no signs of abatement and corporate profits on the upswing, it is high time that RBI act as an independent regulator in the interest of Indian consumer and not South Block.
In the forthcoming announcement of monetary and credit policy on July 27, markets expect 25bps hike in both repo and reverse repo rates and no change in CRR. This expectation is based on the view that as the economy inches towards normalcy, policy rates also need to firm up to their long-term ‘steady-state’ level. Any more aggressive tightening is unwarranted at this juncture in analysts Read more
Will India End Subsidies to the Oil & Gas Sector ?
The EGoM (Empowered Group of Ministers), led by the Finance Minister, is slated to meet on June 7 to take a decision on fuel pricing. The key issues that are likely to be discussed and on which a decision could possibly be arrived at are: (i) retail price hikes for the four regulated fuels (petrol, diesel, LPG, kero), (ii) deregulation of fuel pricing, and (iii) transparent mechanism of sharing of the overall subsidy burden.
What will be the likely outcome of this meeting on June-7th ?
Petrol pricing is fully deregulated, (ii) diesel price is partially deregulated (till, say, a pre-determined crude level) and a definite Read more
How is Indian Sovereign Debt Different ?
Unlike the West, most of Indian Government Fiscal Deficit is financed by internal holdings. India is the only one emerging market amongst the high-government deficit countries in 2009 – India. And India, with a gross general government debt to GDP ratio of over 80 percent during 2009 (see IMF(2010)), is much better able to manage a more than 10 percent of GDP general government deficit, Read more
FICCI calls for reduction in luxury and service taxes on tourism
In order to enhance the country’s inbound tourism sector, industry body FICCI (Federation of Indian Chambers of Commerce and Industry) has suggested a slew of measures. Foreign tourist arrival in 2009 was down by 3.3% to 5.11 million against 5.28 million in 2008 on the back of the Mumbai terror attack in November 2008 which caused a 15% decline in the number of inbound tourists.
It has suggested for a reduction in luxury Read more
Short-term Power tariffs Rise sharply in March
As per the data from Indian Energy Exchange, the short-term tariffs have increased 78% M-o-M to Rs5.77/unit in March 2010. The average merchant tariffs are at their highest level after almost six months (in August 2009, the average tariffs were Rs7.2/unit followed by a six months lull with prevailing average merchant tariff of ~Rs3.5/unit during September’09 – February’10).
The average tariffs in March’09 were more than Rs8/unit and hence, on a y-o-y basis; the March’10 average tariffs are 29% lower. Read more
Enterprise Wireline Tariffs to Come Down – Reliance Communication
In an analyst call, the management of Reliance Communications have said that Wireline / Landline Tariffs are under pressure as Wireless Tariffs have fallen significantly and the company si facing pressure especially from the Enterprise Segment.
Other highlights of the call are – Although RCOM’s RPM declined 4.6% in Q310, its EBITDA margin was down 156 bp; management mentioned this was due to continued investments in network and higher Read more
TVS Motor’s January sales up 34%
Chennai-based two-wheeler maker, TVS Motor Company has reported 34% jump in its January sales. The company sold total 125,578 two-wheelers during the month under review against 93,729 units in January 2009.
On domestic front, it has clocked 37% growth in January 2010 by registering sales of 109,504 units as compared to 79,729 units in the corresponding period of the previous year. Read more
Harrisons Malayalam Infrastructure contract worth Rs 50.28 crore
Harrisons Malayalam has announced that it has signed a contract worth Rs 50.28 crore with KTDFC.
The contract involves construction of a central bus terminal for KSRTC at Trivandrum.
Harrisons Malayalam, part of the RPG Group, markets its tea products under ‘Harrison’s Gold’, ‘Mountain Mist’, ‘Surya’, and ‘Spencer’s’ brand names.
Sterlite Industries – Zinc + Power boost Q3 bottomline
Sterlite Industries consolidated PAT (adj) at Rs9.2bn in 3QFY10 rose 73% YoY (~7% below our estimates) gaining from an 83-87% jump in zinc-lead LME prices, better copper TC/RC margins and higher sales of power. Operating margin was 25% in 3QFY10 vs. 11% in 3QFY09 and 22% in 2QFY10.
Standalone (copper) PAT was Rs2.3bn. Operating profit rose 36% to Rs1.4bn and the operating margin was 3.8%. OPM was 61% vs. 26% last year due to 1) jump in zinc-lead prices; 2) 30% surge in lead volumes; 3) sale of 41,000t of zinc concentrate; 4) silver production up 44% YoY. Read more
Godrej Consumer Products – Lower market share in winter
Godrej Consumer Products indicated that its lack of glycerine soap does not allow it to enjoy stronger market share in winter. Hence, it lost a 40-bp market-share qoq. Its recently launched moisturising soap is expected to drive growth in winter.
Though palm oil prices continue to trend upwards (and are now up 51% yoy), GCP pointed out that the forward cover would allow it to improve margins, and will not compel it to hike prices. It indicated it has
such cover till Apr 10. Read more
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