The high interest rate regime is unlikely to hit larger companies' ongoing projects, at least for now.
As a result, new projects may have to be put on the backburner.
Weighed down by a sharp rise in input costs and limited ability to pass on the burden to customers, India Inc's operating margins took a hard knock in the first quarter of 2008-09 even though demand was buoyant as reflected in zooming sales.
The Standing Committee on Emission Regulation - under the Ministry of Shipping, Road Transport & Highways - today approved addition of hydrogen to CNG (compressed natural gas) for use in vehicles. The proposal is to use CNG with 20 per cent hydrogen content.
Analysis of data published by 1,074 manufacturing companies with turnover of at least Rs 1 crore (Rs 10 million)(shows they were sitting on unsold finished stock worth Rs 18,950 crore (Rs 189.5 billion) at the end of 2007-08, up almost 70 per cent from Rs 11,164 crore (Rs 111.64 billion) a year ago.
The market meltdown since its January 8 peak has made private investments in public equity (PIPE) unprofitable as 2007's deal size of $5.31 billion is currently valued at $5.29 billion.Of the seven deals in the real estate sector, five are profitable while two made losses. Similarly, of the 17 deals in manufacturing sector, 13 reported loss.
When you are the leader, you have to set the pace for the industry
Early birds post better profit growth than the preceding two quarters.A total of 345 companies have so far declared their results. Analysis of the results of a common sample of 237 companies showed that the net profit growth at 21.97 per cent was better than that recorded in the previous two quarters
Maruti Suzuki India, which last year dropped Udyog as its middle name and appointed its first Japanese managing director, has set up a new management structure installing five Indians in crucial decision-making positions. This layer forms the second rung of the company's executive management, just below managing director S Nakanishi. Earlier, when Jagdish Khattar was the managing director, he was the only Indian in the top management.
Already the largest foreign bank in India, Standard Chartered has sought the Reserve Bank of India's permission to open 100 rural branches, which are in addition to its annual plan of 40 new branches and 300 ATMs this year, which it has submitted to RBI for approval. The bank, which now has 83 branches in 33 cities in the country, has announced that it is investing $250 million to take its total capital base in India to $1.9 billion.
The fourth quarter (January-March) is usually a weak quarter for the Indian IT companies due to the lesser number of billing days. This time, however, the good news is that the rupee has depreciated by about 1.3 per cent during the quarter. Every increase/decrease of a percentage point in the rupee lowers/adds to the operating (EBIDTA) margins by 30-50 basis points (bps).
India Inc looks all set to grow at a slow pace in the current financial year. That is, if the financial performance of Corporate India for the first nine months of 2007-2008 is any indicator of things to come.
Report sees the index at 16,000 points in the worst-case scenario.
The rising cost of production and interest outgo have shrunk operating margins by 53 basis points to 15.16 per cent in the quarter ended December 2007, while net profit margin has slipped 39 basis points to 9.31 per cent as compared to 9.70 per cent in the corresponding quarter a year ago.
Short covering also took place in RNRL (futures up 22 per cent, OI down by 51.48 lakh shares), Reliance Energy (futures up 18.6 per cent, OI down by 57,750 shares) and NTPC (futures up 13.3 per cent, OI down by 25.11 lakh shares).
The market wide open interest declined by 15 per cent and is 25-30 per cent below the peak levels, indicating covering of long positions. The Nifty futures OI declined further by 19.5 per cent or 74.45 lakh shares. The current Nifty January OI of 30.97 million shares is the lowest for the current month series.
They have increased their holdings in Infosys Technologies, TCS and Wipro between two and four per cent, going by the shareholding data for the quarter ended December 31, 2007.
The 5-seater utility vehicle might have an 800 cc or 1200 cc engine.
The Act provides that companies with assets of over Rs 1,000 crore (Rs 10 billion) and a turnover exceeding Rs 3,000 crore (Rs 30 billion) will have to obtain approval from the CCI for a merger, acquisition or amalgamation within 30 days of the deal. Smaller companies will have to seek permission if their parent company's assets exceed Rs 4,000 crore (Rs 40 billion) and the turnover Rs 12,000 crore (Rs 120 billion).
The Essar group of Shashi and Ravi Ruia was the biggest overseas borrowers, mobilising $4.67 billion for Essar Global ($3.59 billion) and Essar Oil ($1.08 billion). AV Metal mobilised $3.1 billion followed by Reliance Industries ($2.7 billion), OP Jindal group ($2.40 billion), Tata Steel ($2.38 billion), Guru Gobindsingh Refineries ($1.95 billion), Suzlon Energy ($1.87 billion) and ICICI Bank ($1.8 billion).
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