Feb Automobile Sales Maintain Momentum

by

The Indian Automobile Industry volumes for February came in close to January’s strong levels for most segments. Bajaj, Hero Honda and Maruti sales were within 2% from January levels. Tata Motors’ CV volumes grew 7% sequentially.

Maruti Suzuki reports in-line sales for February; domestic sales slightly stronger than anticipated. Maruti reported domestic sales of 84,765 units and exports of 11,885 units for February. Total sales of 96,650.

M&M reported total sales of 38,327 in the domestic market, comprised of 18,280 UVs, 13,140 tractors and 6,907 3-wheelers and

Read moreFeb Automobile Sales Maintain Momentum

Maruti Suzuki – Traffic Jam Ahead

by

Maruti Suzuki has benefited from robust industry growth over the year, we believe that growth rates will ease (from a high base) over FY10-12E as 1) domestic demand moderates: as stimulus measures are phased out (as announced in the budget), product prices are likely to rise on emission related upgrade costs / higher input costs and interest rates are likely to firm up, 2) exports should stagnate:

Read moreMaruti Suzuki – Traffic Jam Ahead

India Income Tax for FY2010-11

by

Here are the new Income Tax Rates for Indian Citizens for Financial Year April-1st 2010 to March-31st 2011. [See Chart Below]

In case of resident women (below 65 years of age) and resident senior citizens, the amount of INR 160,000 shall be replaced with INR 190,000 and INR 240,000, respectively. The proposed changes in tax slabs would result in (maximum) savings of INR 51,500.

Read moreIndia Income Tax for FY2010-11

Everest Kanto and its arms bag orders aggregating $27 million

by

Everest Kanto Cylinder (EKC), a pioneer in development and production of industrial and CNG cylinders, has received orders for export of CNG cylinders amounting to about $5 million. The execution of these orders is expected to be completed by May 2010.

Besides, the company’s overseas subsidiaries have also received orders in their respective locations. EKC International FZE, a wholly owned subsidiary of the company in Dubai, has received orders for the supply of CNG cylinders aggregating about $20 million. The execution of these orders has already started and is planned to be completed by May this year.

Read moreEverest Kanto and its arms bag orders aggregating $27 million

Life insurance sector growth normalizing + Valuation

by

The growth of Indian private life insurers normalised to 14% YoY (-33% MoM) in January 2010, post December 2009, when growth had jumped to 59% YoY, ahead of the withdrawal of noncompliant products from January 2010. The industry APE growth was up 3% YoY (-27% MoM).

ICICI’s market share gains sustained (11.1% currently – up 190 bp over the last six months), whereas Bajaj and HDFC witnessed a sharp rise in this month (+127 bp and +94 bp MoM). SBI continued to be the strongest performer, with 27% YTD APE growth, whereas Kotak was the weakest performer (-21% YTD).

Read moreLife insurance sector growth normalizing + Valuation

India Term – Fixed Deposit Rates Rising

by

HDFC Bank, over the weekend, raised deposit rates by a sharp 50-150 bp, which follows the 25-50 bp rate hike by ICICI Bank and IDBI earlier this month. Notably, this deposit rate action has come, even as system liquidity currently appears adequate (reverse repo outstanding at about USD 15 bn). As the loan growth (14.8% currently) accelerates and central bank tightens, this liquidity will also dry up soon.

As deposit growth (17%YoY) has fallen to a four-year low, with real deposit rates negative, banks need to raise rates.

Read moreIndia Term – Fixed Deposit Rates Rising