Global expansion to drive the company's fortunes
Operating margins have been the primary driver of corporate earnings in India in recent quarters, despite revenue growth suffering from weak consumer demand. Companies across sectors have reported a sharp improvement in earnings before interest, tax, depreciation, and amortisation (Ebitda) margins over the past two years, benefiting from lower commodity and energy prices. Higher margins more than compensated for slower revenue growth, resulting in double-digit growth in net profit for five consecutive quarters.
While fuel costs have risen 20%, prices of finished output have fallen
The doubling of Clean Energy Cess from Rs 200 to 400 per tonne would further increase the input cost for domestic producers.
Factories are shutting down owing to a shortage of labour and raw materials, and a lack of logistical support amid the ongoing nationwide lockdown against the coronavirus pandemic.
A V Metals -- the A V Birla group's Canada-based special purpose vehicle -- will infuse $3.5 billion to finance Hindalco Industries' proposed acquisition of the Atlanta-based aluminium downstream major Novelis Inc.
India's largest aluminium maker, the Aditya Birla group's Hindalco Industries Ltd, said on Friday it would buy copper mines in Australia from Straits Resources Ltd for A$79.80 million (US$47.11 million).\n\n\n\n
Union Budget 2014-15 is positive for metals and mining companies.
Rising prices of international coal - both coking and thermal - used in the making of ferrous and non-ferrous metals, respectively, are expected to have an impact on margins of metals companies in July-September quarter (Q2) as steel companies may see margins getting eroded, while the base firms could stand to benefit, said brokerages.
The FPI holding in India's top 100 companies, which are part of the Nifty 100 index, declined to 24.23 per cent on average at the end of March this year, from a high of 27.5 per cent at the end of March 2021. This is the lowest FPI holdings in India's top listed companies in at least three years. A general sell-off by FPIs has weighed on stock prices and the benchmark S&P BSE Sensex is down 8.5 per cent, from its 52-week high made in October 2021. Most analysts expect FPI flows to remain weak in FY23 as well, given rising bond yields in the US and an expected earnings slowdown in India due to high inflation and commodity prices.
The uptick in prices ranging from steel to wheat could benefit lots of commodity-based companies -- from State-owned SAIL to the agro exporters.
Mutual funds bought FMCG, construction, auto, and IT stocks in November.
The hike in clean energy cess is likely to impact input cost for thermal power producers
Novelis world leader in flat rolled aluminium products, customers include Coke, GM.
A change in recommendation in favour of Birla did certainly happen but the question is whether it was a bona fide decision. Jyoti Mukul reports
Metal sector is not too happy from Budget announcements for the sector
The Aditya Birla group has slammed rating firm Moody's for placing Novelis, the group's aluminium products subsidiary, in line for a possible downgrade to default.
Five out of the top 10 companies in Fortune 500 list of Indian companies are from the oil sector.
The Sensex opened with a positive gap of 21 points at 10,862
The Sensex opened with a positive gap of 11 points at 10,852
Dividend distribution tax in FY20 would only be applicable after deducting Rs 70 received from the foreign subsidiary, meaning 20.56 per cent DDT would be paid only on Rs 30.
Hindalco has done very well with Rs 900 crore (Rs 9 billion) of ebidta in June quarter.
CEOs fear any change in status of the mines will mean disruption in production, loss of investment and increased production cost for user industries.
As industry voiced concern over the CBI naming industrialist Kumar Mangalam Birla in a case, Oil Minister M Veerappa Moily on Friday said investigating agencies and the judiciary must ensure that India does not become like Russia, where investors are not prepared to go and billionaires are put behind bars.
While UltraTech Cement has been the biggest value creator adding nearly Rs 99,000 crore to its market capitalisation, Grasim Industries has added around Rs 27,000 crore to its market cap.
Companies with more than Rs 10,000 crore of debt would seek refinancing.
Among these, Hindalco and Vedanta from the metal pack have become multi-baggers, gaining 100 per cent in 2016
Govt to issue ownership rights of 15 coal mines on Mar 23.
Tata Power, Sesa Sterlite and Hindustan Zinc likely to be hit.
'The growth drivers are mostly invisible, but the growth is undeniable at least for now,' notes Debashis Basu.
Dr Manmohan Singh's role in the sordid saga of the Coal Allocation Scam was always Delhi's worst-kept secret; calls for his interrogation will mushroom after he was named by P C Parakh, says T V R Shenoy.
Many top corporate groups hit hard, in penalties and sunk investments, beside loss of future revenue
Tata Steel, others sell assets abroad after taking massive impairments.
The judiciary has sent a strong message against crony capitalism.
Markets extended gains led by financials and capital goods shares coupled with a rebound in IT shares.
The BSE Midcap and Smallcap indices have performed better than the front-liners
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
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JSPL and Balco had emerged as the highest bidders in the recently concluded auctions.
