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
JSW Energy Trading just 2.5% above IPO Price – Powerless Listing
JSW Energy which raised money in the capital market last month listed on the bourses today and is trading at Rs 102.50, just 2% above the IPO issue price of Rs 100. Experts on Dalal Street had AVOIDED the issue since the price range during the IPO was Rs 100 to Rs 115 and had the management issued it at the upper band like all others did, then it would have been trading at 10% discount. Read more
Hindustan Construction bags order from Indian Strategic Petroleum Reserves
Hindustan Construction Company (HCC) has informed us in a message that the company just a while ago received a prestigious contract worth Rs 374.66 crore from Indian Strategic Petroleum Reserves (ISPRL), New Delhi.
The company has bagged the order for construction of civil works for an underground rock caverns for Strategic Storage of Crude Oil Project at Padur in Karnataka. The project will be completed in 3 years.
HCC is already constructing India’s first strategic crude oil storage of 1.33 million tonnes capacity in Vishakhapatnam, Andhra Pradesh.
How Indians Can Settle Credit Cards + Loan EMIs – A Relief Package
Indian Banks in a bid to expand their market share in Housing Loans, Auto Loans and Credit Cards, lent recklessly over 2004 to 2007 to any consumer without even verifying the credentials. Now, they are facing rapid defaults and are causing a misery to the Indian borrower. The RBI aware of this situation, has instructed BCSBI an independent body [it is as good as Government as it was formed by the RBI, so your data is safe with them] that looks into the functioning of Banks and Financial Institutions has started a separate counseling wing to identify genuine cases and negotiate a relief package. Read more
Big Bazaar likely to be Hived off by Feb-2010
Pantaloon Retail’s (PRIL) planned hive-off of Big Bazaar is on track and is likely to be consummated by February 2010, according to management. Pantaloon’s management indicates that hive-off of Big Bazaar and Food Bazaar is on track. The hive-off will pave the way for fund-raising at the Big Bazaar level and induction of a foreign food retailer. The latter, which management has hinted at in many forums, is likely to provide the next leg-up to Big Bazaar’s growth trajectory. Big Bazaar and Food Bazaar account for 70% of PRIL’s (standalone) revenues and 67% of its total retail space. Read more
Top 10 Hindi Daily Newspapers in India
Dainik Jagaran 565.57
Dainik Bhaskar 319.37
Amar Ujala 296.13
Hindustan 251.65
Rajasthan Patrika 136.57
Punjab Kesri 111.39
Aj 74.14 59.05
Navbharat Times 51.84
Prabhat Khabar 49.7
Nava Bharat (Mah/Chh) 51.83
All figures in Lakhs [100,000]
Top 10 English Dailies in India
The Times Of India 136.41
Hindustan Times 63.46
The Hindu 55.51
The Telegraph 30.3
Deccan Chronicle 30.28
The Economic Times 20.11
Mid-Day (Eng) 17.64
The New Indian Express 19.7
Mumbai Mirror 15.91
DNA 13.11
Subscription Figures in Lakhs [100,000]
Mumbai water supply crisis a negative for Builders / Realty
Maharashtra Chief Minister announced that new real estate projects which consume c200,000 litres of water supply per day (typically high rise buildings and townships) will not be awarded permissions until additional water supply from the Middle Vaitarna project is available after March 2012.
While the issue is a negative development for Mumbai property developers, we believe the impact will be limited for the following
reasons: 1) large projects (high rises and townships) typically take more than 24-30 months for construction before customers receive product. Hence any new project will incur a limited impact as it would be completed after March 2012; and 2) slum and other Read more
JIK Industries opens retail outlet in South Mumbai
JIK Industries has informed that it has opened a retail outlet in South Mumbai of crystal and glassware products which form a part of Luxury Goods segment, inspired by world art glass designs and combining them with Indian traditional craft.
JIK is the single largest and sole producer and distributor of branded, hand-made, lead-free crystal glassware in India. It has combined Swedish manufacturing techniques and designs with abundant cheap and skilled labour in India to create exquisite Scandinavian hand-blown crystal glassware at prices that are Indian.