BSE Filings: NCLAT accepts RCOM’S withdrawal appeal – 4 February 2019

4 February 2019: Reliance Communications Limited spokesperson said:

1. Reliance Communications Limited (RCOM) today moved the National Company Law Appellate Tribunal (NCLAT) for withdrawal of its appeal, to pursue the resolution plan through National Company Law Tribunal (NCLT) process.

2. Accepting RCOM’s application for withdrawal of the said appeal, the NCLAT directed Ericsson to file its reply in the matter by 8 February 2019. NCLAT further listed the matter for hearing on 12 February 2019.

3. The Hon’ble NCLAT also prohibited RCOM’s Guarantors and any Third Party from invoking any guarantee, mortgate or any other instrument, without NCLAT’s or Supreme Court’s prior permission.

4. RCOM or any Third Party not to sell, transfer or alienate any of its assets (movable and immoveable), without the NCLAT’s or the Supreme Court’s permission.

Exchange filings

Wittur AG adj.ebitda up 16.1%yoy on back of robust growth in its Asian business

Wittur AG, the German elevator component manufacturer, in its preliminary FY15 earnings release reported a 12.7% YoY increase in top-line to EUR 588. Previously in 9M15, revenues and adjusted EBITDA had increased 16.8% YoY and 16.1% YoY to EUR 455m and EUR 66.4m respectively. Earnings in 9M15 were largely supported by continued growth in its Asian business, which grew 36.9% YoY, contributed EUR 211m or 47.6% to Wittur’s revenue. In August 2015, Wittur had announced its EUR 210m debt backed acquisition of Italian component manufacturer Sematic. The new entity Wittur + Sematic will carry a pro-forma net external debt of EUR 617m vs EUR 408m reported by Wittur in 9M15. Corresponding pro-forma net external leverage is expected to rise to 5.48x vs 4.81x of Wittur. Post-deal the combined entity on a pre-synergy basis, could generate a revenue of EUR 750m and EBITDA greater than EUR 100m in FY15.

Wittur

For Sematic acquisition, Wittur was in the market on 23 October 2015 allocating its EUR 180m term loan, while the remaining EUR 30m is to be financed with cash on balance sheet and by extending its existing EUR 65m revolving credit facility to EUR 80m. Pro-forma net external debt of Wittur+Sematic is expected to be at EUR 617m as compared to EUR 408m as reported by Wittur in 9M15. Proceeds of debt raised will be used to acquire existing stakes of Carlyle and Zappa family, which currently hold 70% and 30% in Sematic, respectively. Post deal, Carlyle and Zappa family will retain minority stake in the combined business. For 2017, management expects lower capex to aid the deleveraging process, as it targets to reduce leverage below 4.5x.

Net operating cash flow from operating activities declined 20.0% YoY to EUR 38.24m as working capital consumed EUR 9.5m in cash. Following this free cash flow has also declined by 25.4% YoY to EUR 32.1m, as capex spend increased 16.0% YoY.  However pro-forma liquidity of EUR 77.5m coupled with positive free cash flow generation should be enough to pay-off the EUR 17.5m in short term debt.

EQUITY UPDATE: 17 AUGUST 2012

ASIA

Japan would soon overtake China to become the biggest creditor to the U.S as it purchased USD 10.4 b of Treasuries in June to take its total to USD 61.3 b. total holdings in U.S Treasuries came in at USD 1.193 t vs China’s USD 1.164 t. (Bloomberg)

South Korea’s jobless rate declined marginally to 3.1 percent in July vs 3.2 percent in June. Expectations came in at 3.3 percent. The decline was contributed by rise in the no. of self-employed workers and rise in service-sector jobs. (Reuters)

China National Gold Group Corp – Precious metals mining firm is in early talks to purchase Barrick Gold Corp’s 73.9 percent stake in mining firm African Barrick Gold plc. (Bloomberg)

China Mobile – Co. reported lower than expected 2Q12 profit at RMB 54.40 b (USD 5.4 b) vs RMB 34.42 b a year ago, based on its 1HY12 earnings data. The co. saw its sales rise to RMB 139.1 b vs USD 131.9 b in the quarter a year ago. Estimates came in at RMB 140.5 b. The co. saw higher costs on attracting new customers amid slowdown in the economy. (Bloomberg)

INDIA

DII’s made gross purchases of INR 1,259.33cr and sales of INR 1,034.03cr. FII’s made gross purchases of INR 2,447.90cr and sales of totaling at INR 2,352.89cr. (Business Standard)

Indian oil marketing co.’s (OMCs) are faced with losses of INR 450 cr a day on rising prices of crude oil in the international markets and the fall of the rupee. Since the OMCs purchase oil, diesel and cooking gas at international rates and sell them at government-controlled rates, the difference in prices would see losses widen if it does not receive timely subsidies from the government. (Business Standard)

Maruti Suzuki – Co. to restart its Manesar plant on 21 August and said it is planning to remove 500 contract workers over their alleged involvement in the violence.  Co. to make 150 cars a day at its Manesar plant. (Times of India/PTI/Reuters/Yahoo)

Bank of Baroda – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 590 from INR 628. According to Nomura co.’s asset quality will continue to impacts its earnings growth over the next several quarters, and increased its delinquency forecast for fiscal 2013 and its loan loss provisioning forecast for fiscal 2012. Also expected change in top management later in 2012 reiterate the asset quality risk to earnings. (Economic Times/Reuters)

Punjab National Bank – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 680 from INR 719. Nomura expected loan delinquency to continue to increase over the next few quarters. (Economic Times/Reuters)

Wockhardt – Co. got US FDA approval to market Clopidogrel bi-sulfate tablets, used to help reduce risk of heart attack or stroke, in 75 mg strength. Co. also got a tentative nod for the 300 mg strength tablets. (MoneyControl)

Tata Motors – Co.’s July global sales at 101,605 units, up 21 per cent. (The Hindu Business Line)

Gitanjali Group – Co. acquired 15.3 per cent stake in Japanese firm Verite for INR 25cr. (Indian Express)

INDIAN EARNINGS

Nalco – Co. reported 1Q12-13 net profit at INR 223cr vs. previous 1Q11-12 net profit at INR 377cr. Net sales at INR 1,718cr vs. previous INR 1,733cr. (Yahoo/IANS)

RINL – Co. reported 1Q12-13 net profit at INR 150cr vs. previous 1Q11-12 net profit at INR 74cr. Turnover at INR 2,976cr vs. previous INR 2,582cr. (Financial Express)

ABG Shipyard – Co. reported its 1Q12-13 net profit at INR 41.31cr vs. previous 1Q11-12 net profit at INR 40.06cr. (Business Standard)

Jain Irrigation – Co. reported 1Q12-13 net loss of INR 16cr vs. previous 1Q11-12 net profit at INR 82cr. Sales at INR 865cr vs. previous INR 951cr. (The Hindu Business Line)

EUROPE

Spain’s exports touched EUR 18.9 b (USD 23.2 b), exceeding imports by EUR 1.2 b for the period of June 2012. The county still faces risk of declining exports as demand for its goods mainly comes in from Europe, which is still in recession. Besides, the exporters are not receiving adequate financing and incentives from the government, which itself is reeling from severe austerity cuts. Imports have declined to EUR 21.6 b in June vs EUR 21.4 b two years ago. The marginal rise is due to lack of domestic demand, which can be a worrying factor. (Reuters)

According to the Bank of England policy maker Martin Weale, the British economy was mired in stagnation rather than recession. The European debt crisis was the biggest source of uncertainty. The BOE policy maker was of the opinion that, squeeze on household spending through rising fuel prices was coming to an end. (Economic Times/Reuters)

ArcelorMittal – Steel mining giant is planning to hold discussions with the Indian government to expedite the procurement of a mining lease for its proposed INR 50,000 cr plant in Jharkhand, India. (Economic Times)

Airbus – Co. saw a loss of 10 A-380 aircrafts amounting to USD 3.8 b as Hong Kong airlines wound up its first class business category flight services. (Financial Times)

NORTH AMERICA

Construction of New homes in the U.S declined 1.1 percent to 746,000 vs June’s 754,000, falling below estimates of 756,000. The decline was offset by a rise in building permits to 812,000, its highest since 2008. The mixed data of low mortgage rates, decline in foreclosures, rising hiring and access to cheaper credit could show signs of an improvement in the property markets in the 2HY12 period. Construction of single-family homes declined 6.5 percent to 502,000 and multi-family home construction rose to 244,000, a five month high in 2012. (Bloomberg)

U.S initial jobless claims rose marginally by 2000 applicants to 366,000 for week ended 11 August vs prv week’s revised 364,000 vs exp rise to 365,000. The less volatile four week moving average declined to 363,750, a sign that labor markets picked up in July after the temporary layoffs caused by the auto plant maintenance activity. Unemployment rate remained at 8.3 percent. People on continuing jobless benefits declined by 31,000 to 3.31 m for week ended 4 August. (Bloomberg)

Ford Motors – Co.’s EU sales down 12.3 per cent at 83,100 units from a year earlier. YTD sales down at 10.6 per cent. Industry sales down 7.1 per cent through July, the lowest since 1995. (Boston.com/AP)

NORTH AMERICAN EARNINGS

Walmart – Retailer’s rising profits were reduced on unfavourable movements in the exchange rates which affected its revenues from international operations. Profits came in at USD 4 b, a y/y rise of 5.7 percent. EPS came in at USD 1.18 a share, marginally exceeding expectations. Revenues came in at USD 114.3 b vs exp USD 115.8 b. U.S like-for-like sales rose 2.2 percent on a y/y basis. Revenues from its global operations rose 4.5 percent to USD 113.5 b. The co. plans to expand its operations in markets such as Mexico, China and Brazil. (Financial Times)

7 banking firms have been issued subpoenas from U.S State prosecutors in the context of rigging the Libor rates. Banks summoned will be HSBC, Deutsche Bank, Citigroup, J P Morgan, UBS, RBS and Barclays. (Financial Times)

Brazil will implement a Brazilian Rias (BRL) 133 b (USD 66 b) worth of stimulus measures to increase investments in the nation to prop up the economy. The government plans to grant concessional opportunities on rail and roadways construction. Slowdown in the economy combines with shortage of skilled labour raised inflation and contributed to a slowdown in the economy. (Financial Times)

Cisco – Networking equipment manufacturer saw its profits and revenues rise that it raised its dividend and full year earnings estimate. Revenues rose to USD 11.7 b, exceeded estimates of USD 11.6 b. EPS came in at 47 cents vs exp. 45 cents, all on a pro forma basis. Cost cuts and prudent utilization of its resources saw the co. raise its FY12 forecasts at USD 46 b and EPS to 1.85 a share. The co. raised its dividend for the next quarter to 14 cents, a 75 percent increase. (Financial Times)

 

 

 

 

CHINA’S EXPORTS FOR JULY DECLINE 1%, BELOW ESTIMATES; IMPORTS RISE 4.7% (y/y)

China’s saw declining growth in exports and imports for July on concerns of a slowing economy. The data saw exports decline 1 percent on a y.y basis for July vs exp. 8 percent rise vs rise of 11.3 percent in June. Meanwhile imports rose 4.7 percent vs exp. 7 percent rise vs 6.3 percent increase in June.

The trade surplus came in at USD 25.1 b vs USD 31.5 b a year ago vs exp. USD 35.1 b.

New loans made available in RMB denominated loans came in at RMB 540.1 b (USD 85 b), which was lower than estimates of RMB 918 b. (Bloomberg)

EQUITY UPDATE: 28 JULY 2012

ASIA

China is considering shutting down operations of co.’s which are nearing bankruptcies in an attempt to increase competitiveness and transform the automotive sector. The industry is faced by overcapacity and the government plans to overhaul the industry. (China Daily)

PetroChina – Co. concluded an agreement with Qatar Petroleum to acquire 40 percent exploration and production rights from GDF Suez Exploration Qatar B.V. (China Daily)

INDIA

FII’s made gross purchases of INR 2,812.53cr, gross sales of INR 2,248.81cr. DII’s made gross purchases of INR 881.56cr vs. previous INR 1,136cr. (Business Standard)

According to business and knowledge provider Dun and Bradstreet, India’s GDP to cross USD 5 trillion mark by 2020 despite the slowdown in economy. The report further said that the slowdown in economy to continue till FY15, after which the economy is expected to move into a high growth phase. Share of investment to GDP is expected to increase 40.7 per cent of GDP in FY20 versus 36.6 per cent in FY10. (Economic Times)

The Government of India is expected to decide on the issue of multi-brand retail investments in India. Commerce Minister Anand Sharma stated that it would seek a consensus of all farmers, stakeholders and SME’s before arriving at a conclusion. (Business Standard)

SBI – Banking firm SBI’s Chairman Pratip Chaudhuri stated that the quality of its assets would be improving on a y/y basis as it prepares to file its results on 8th August. The assurance came in the wake of rising NPA’s of PSU banks which prompted investors to sell shares of the co. in today’s trade. (Business Standard)

ITC – Co. plans to invest a total of INR 25,000 cr in the coming 5 years. It looks at a total of 40 projects covering research and development, consumer product marketing and export related services. (Business Standard)

Suzlon Energy Ltd – Co. redeemed its USD 360m of foreign currency convertible bonds, with the help of new loans of USD 300m and the balance was met through internal controls and sale of wind farm assets. (Reuters/Yahoo)

MRPL – Co. stated that it does not plan to decrease its oil imports from Iran inspite of the sanctions imposed on the country. The co. said that it faced problems while receiving shipments and obtaining insurance on cargo due to the sanctions. (Economic Times)

Deccan Chronicle Holdings – Co.’s promoters have pledged 54 per cent stake in co. to Future Capital, at closing price of INR 22.9 the transaction is believed to be worth INR 258.43cr. (Financial Express)

Pipavav Defence – Neelanchal Mercantile Pvt Ltd bought 3,500,000 shares in co, at a price of INR 62.41on NSE. (MoneyControl)

INDIAN EARNINGS

Dena Bank – Co. reported 1Q12-13 net profit at INR 239cr vs. previous INR 168cr. Net interest income at INR 612cr vs. previous INR 447cr. (The Hindu Business Line)

IRB Infrastructure – Co. reported 1Q12-13 net profit at INR 141.84cr vs. previous INR 134.18cr. Revenue at INR 1,012cr vs. previous INR 830cr in 1Q11-12. (Business Standard/PTI)

Nestle India – Co. reported 2Q12 net profit at INR 245.97cr vs. previous INR 213.83cr. Total income at INR 1,997.87cr vs. previous INR 1,771.03cr. (Business Standard/PTI)

Thomas Cook – Co. reported 2Q12 net profit at INR 31.01cr vs. previous 2Q11 net profit INR 21.46cr. Consolidated total income at INR 133.46cr vs. previous INR 104.81cr. (MoneyControl)

Trent Ltd – Co. reported 1Q12-13 net profit at INR 13cr vs. previous 1Q11-12 at INR 10cr. Net sales at INT 218cr vs. previous INR 178cr. (The Hindu Business Line)

TVS Motors – Co. reported 1Q12-13 PAT at INR 51cr vs. previous INR 59cr. Revenue at INR 1,820cr vs. INR 1,746cr. (The Hindu Business Line)

Zydus Wellness – Co. reported 1Q12-13 consolidated net profit at INR 13.49cr vs. previous 1Q11-12 net profit at INR 8.45cr. Consolidated total income at INR 94.56cr vs. previous INR 90.96cr. (Business Standard/PTI)

TajGVK – Co. reported 1Q12-13 net profit at INR 5.74cr vs. previous INR 12.59cr. Income from operations at INR 62.46cr vs. previous INR 58.96cr. (The Hindu Business Line)

EUROPE

According to a Reuters report, Spain might need a bailout of around EUR 300b from the IMF and European Union combined, if its borrowing costs remained unsustainably high. The bailout issue was discussed between Spanish finance minister Luis de Guindos and German finance minister Wolfgang Schaeuble. However the German finance minister Wolfgang Schaeuble was unwilling to consider a rescue before the permanent bailout fund was setup. (FoxBusiness/ Dow Jones Newswire)

The French afternoon daily Le Monde reported that , Euro Zone governments and European Central Banks are preparing to jointly intervene on the financial markets to bring down Spanish and Italian borrowing costs. According to a source, ECB was willing to participate if European governments agreed to tap in the bailout funds, i.e. European Stability Facility and the European Stability Mechanism. The intervention would involve activating EFSF to purchase Spanish and Italian debt on  the primary market and ECB at the same time purchase Spanish and Italian debt on the secondary market. The plan was days or possibly weeks away from being finalised. (Fox Business/Reuters)

IMF’s James Daniel warned that the Spanish government could lose market access if it fails to rein in its budget deficit and capital outflows. (Fox Business/Dow Jones Newswire)

Barclays Plc – Co. stands to face two new charges of pertaining to its 2008 Mid-East capital raising issue and wrongful selling of hedging products to small business operators. The Mid-East ops pertain to the lack of adequate disclosure of fees it paid to the Qatar Investment Authority in 2008 when the institution acquired a stake in the bank. These involve a GBP 4.5 b capital infusion in June followed by a GBP 7.3 b funding in October. (Financial Times)

Allied Irish Bank – Co. reported 1HY12 loss of EUR 1.1 b vs prv loss of EUR 3 b y/y on faulty loans and issued a warning that the weak economy could cause defaults to rise. The co. plans to cut 2500 jobs in an attempt to cut costs. Variable mortgage rates were hiked in Ireland to 3.5 percent vs 3.0 percent previously, to boost lending. Provisions for bad loans declined 70 percent y/y to EUR 900 m. (Financial Times)

Bosch Ltd – Auto component manufacturer plans to temporarily suspend its operations at its plants in Bangalore and Nasik to avoid inventory pileup. The Bangalore plant stands to be closed for 3 days beginning today while the Nasik plant would be shut for 2 days this week. (Economic Times)

Heineken – Dutch brewer is to give its acquisition target Fraser & Neave an additional week to consider its USD 4.1 b takeover offer of its subsidiary Asia Pacific Breweries. (Straits Times)

NORTH AMERICA

Ford Motor – Co. recalled over 480,000 sports utility vehicles Escape as they developed problems related to vehicle acceleration. (Straits Times)

NORTH AMERICAN EARNINGS

Chevron Corp – Co. reported 2Q12 net profit at USD 7.21b vs. previous 2Q11 profit at INR 7.73b. EPS at USD 3.66 per share vs. estimated USD 3.24 per share vs. previous USD 3.85 per share. Revenue at USD 62.61b vs. estimated USD 68.56b vs. previous USD 68.6b. (CNBC/Fox Business)

Merck – Co. reported 2Q12 profit at USD 1.82b vs. previous USD 2.05b in 2Q11. EPS at USD 58 cents vs. previous USD 65 cents. Excluding one-time items co. earned USD 1.05 per share vs. estimated USD 1.01 per share vs. previous USD 95 cents. Revenue at USD 12.31b vs. estimated USD 12.15b. Co. affirmed its full year non-GAAP EPS at USD 3.75 to USD 3.82 per share vs. estimated USD 3.82. Co. expects six major filings over the next 18 months. (Fox Business)

Amazon .com – Co. reported 2Q12 net income at USD 7m vs. previous USD 191m. Revenue at USD 12.83b vs. estimated USD 12.88b vs. previous USD 9.91b. For 3Q12 co. expects an operating loss between USD 50m to USD 350m and revenue at USD 12.9b to USD 14.3b vs. estimated USD 14.1b. (CNBC)

Facebook Inc. – Shares of the co. declined 40 percent in trade to lows of USD 22.28 a share on lower earnings and declining growth. The co.’s business is faced with stiff competition from mobile based devices which has hurt the co’s operations. EPS came in at 12 cents a share on revenues of USD 1.18 b, in line with expectations. Ad revenues also fell 36 percent to USD 992 m in its first earnings report as a publicly filing co. (Financial Times)

Anglo American – Co. saw its 1HY12 profits decline 55 percent to USD 2.9 b as the mining industry faced a no. of problems; co. suffering a iron ore project delay and falling prices of commodities. Revenues declined 10 percent to USD 16.4 b. The co. plans on a capex of USD 5.5 b vs USD 7 b pledged previously. EPS declined to 98 cents vs USD 3.30 a share. An interim dividend of 32 cents vs 28 cents prv, was declared. (Financial Times)

 

JAPAN EXPORTS DECLINE 2.3% IN JUNE

Japan’s exports declined 2.3 percent in June on a y/y basis vs expectations of a decline of 3 percent. Slowdown in exports to Europe, China contributed to the decline. Trade balance for June came in at a surplus of JPY 61.7 b (USD 788.6 m) against expectations of a deficit of JPY 135 b.

Domestic demand in terms of reconstruction activity and rise in consumer spending post the tsunami and earthquake.

APPLE LAUNCHES STORES IN CHINA

Apple Inc – Co. launched the latest version of its IPad in China. Launch of the product was a low key affair as against its previous launches.

Apple was involved in various lawsuits in China, one being where it had to pay USD 60 m to a Chinese co. over a trademark settlement.

Apple is looking to expand further in China as it opened 2 retail outlets in Beijing.

(CNBC)

EQUITY UPDATE – 20 JULY 2012

ASIA

According to KPMG, China’s imposition of restrictions on borrowing through trust companies and property sales could affect property and real estate developers in the region. The report came on the back of data which showed a decline in new funding available to developers as loans declined to 5.7 percent for the 1HY12 period. Additionally, home sales also declined 6.5 percent as the government maintains restrictions on property prices and purchases. Funds channelled through real estate funds declined more than 50 percent to RMB 84.6 b. (Bloomberg)

Chinese President approved a USD 20 b to various African countries in the coming three years, to boost ties with nations in the continent. (Reuters)

Hong Kong’s government warned that unemployment would continue to rise in the near term , affecting more graduates, as the economic crisis begins to tighten its effect on the country.  Unemployment rate for 2Q12 period ended June was unchanged at 3.2 percent, below expectations of 3.3 percent. The government stated that inspite of the encouraging data, the rate would rise to 4 percent by the end of 2012. (Bloomberg)

Temasek Holdings and China Investment Corp and two other firms have expressed interest in RCom’s IPO which would be launched in Singapore. RCom’s undersea cable unit Global Telecommunication Infrastructure Trust (GTIT) is to be listed on the Singapore Stock Exchange. Investors have proposed to invest a total of USD 250 to 300 m in the IPO. (Business Standard)

Australia’s index of business conditions for the next three months declined to 5, its lowest since 2Q09 and its confidence index for the same period declined to -2. Near term optimism on business dimmed as analysts and managers expect the Reserve Bank of Australia to cut its benchmark cash rate by atleast 25 basis points. (Bloomberg)

INDIA

According to a Reuter’s poll, India’s gross domestic product is expected to grow 6.3 per cent during FY12-13 vs. previous estimate of 7.1 per cent and 7 per cent in FY13-14 vs. precious estimate of 8 per cent. (FirstPost/Reuters)

Based on provisional details, DII’s made gross purchases of INR 924.56 cr vs sales of INR 1153.40 cr, making them net sellers of INR 228.84 cr. Meanwhile, FII’s conducted gross purchases of INR 2021.60 cr vs gross sales of INR 1895.82 cr, making them net buyers of INR 128.78 cr. (Business Standard)

According to Barclays, the Reserve Bank of India to slash policy rates by 0.25 percent in the upcoming policy meeting. (FirstPost/PTI)

Exports of Indian garments to non-traditional markets such as Latin America and Africa rose by 16 percent to touch USD 3.15 b in FY11-12. Slowdown in demand from Europe and Asia made exporters look for newer markets, stated the industry body, Apparel Export Promotion Council. (Economic Times)

Maruti Suzuki – Shares of co. dropped 9 per cent as violence between workers and management erupted at its Manesar plant. According to co.’s management the plant has been shut down. (Business Standard/PTI)

Sail – Indian government has approved the disinvestment of 10.82 per cent in co.; which at current price of INR 93.40 would fetch USD 750m. (FirstPost/Reuters)

Indian Overseas Bank – Co. plans to raise around INR 1500 cr in capital from the Indian government. (Economic Times)

Cairn India – Co. stated that output at its Rajasthan’s oil fields could rise by over 70 percent if the government does not block or delay its investment approvals. Output could rise to 300,000 barrels a day, totalling 15 m tonnes annually vs current output of 175,000 barrels a day. (Economic Times)

INDIAN EARNINGS

Hero MotoCorp – Co. declared net profits of INR 615 cr vs INR 558 cr from a year ago for its 1Q12 earnings. Revenues rose 10 percent to INR 6351.7 cr vs INR 5775.5 cr on a y/y basis. Co. sold around 1640,000 units for the quarter. (Business Standard)

Dr Reddy’s Laboratories – Co. reported 1Q12-13 net profit of INR 335.98cr vs. previous 1Q11-12 net profit of INR 262.74cr. Net income at INR 2,541cr vs. previous INR 1,978cr. (Financial Express)

NIIT Technologies – Co. reported 1Q12-13 net profit at INR 57.5cr vs. previous INR 41.2cr in 1Q11-12.  Revenue at INR 496.6cr vs. previous INR 328.8cr. (Financial Express)

BOC India Ltd – Co. reported 1Q12-13 net profit at INR 20.3cr vs. previous INR 27cr. (The Hindu Business Line)

EUROPE

France conducted an auction of about EUR 8.96 b (USD 3.68 b) at the top end of its target inspite of demand weaker than the previous period. Bond yields declined as compared to Spain’s auction, which saw a rise during their auction. Yields on French bonds due 2014 came in at 0.12 percent vs 0.83 percent previously. 4 yr BTAN’s yielded at 0.53 percent, down from 1.05 percent. 5 yr bonds had yields of 0.86 percent vs 1.43 percent previously. (Reuters)

Czech Republic auctioned around 6 b koruna (USD 292 m) of bonds due 2017 and 2021 for record low yields.  Yields on the 2021 nots declined to 2.316 percent vs 3.109 percent from its previous auction. Investors bid more than three times the amount offered. The effect of Moody’s previously upgrading the sovereign rating of to A1 boosted sentiment in the region saddled by nations with rising yields. (Bloomberg)

Credit Suisse – Co. to lay-off another 138 employees in the United States, co. said in its filings. (Reuters)

EUROPEAN EARNINGS

Nokia – Co. reported 2Q12 loss of EUR 1.41b vs. estimated EUR 654m vs. previous loss of EUR 368m. However co.’s sales of its flagship Lumia phone double to 4m units and also co.’s reserve cash improved by EUR 306m. (Fox Business)

NORTH AMERICA

Textron Inc – Co. an industrial conglomerate, would consider bidding for Hawker Beechcraft, to counter a deal proposed by China’s Superior Aviation Beijing Co. (Bloomberg)

Oracle Corp – Co. to acquire privately held Skire Inc for an undisclosed amount. (Yahoo/Reuters)

NORTH AMERICAN EARNINGS

Southwest Airlines – Co. saw its 2Q12 profits rise by 42 percent on record revenues offsetting the higher expenditure on fuel. Profit came in at USD 228 m vs USD 161 m a year ago. Earnings came in at 30 cents vs 21 cents a year ago. Adjusted earnings, which excluded USD 45 m in one time charges, came in at 36 cents a share, exceeding analyst’s forecasts of 33 cents. Revenues rose 4.7 percent to USD 4.62 b vs expectations of USD 4.59 b. The co. is monitoring the ongoings of the economy while it reported that demand hasn’t declined, it stated. (Bloomberg)

Freeport McMoRan – Co. reported 2Q12 net profit at USD USD 710m vs. previous 2Q11 at USD 1.37b. EPS at USD 74 cents a share vs. estimated USD 75 cents vs. previous USD 1.43 a share. Revenue at USD 4.48b vs. previous USD 4.43b. (FoxBusiness)

Fifth Third Bancorp – Co. reported 2Q12 EPS at USD 40 cents vs. estimated 1Q11 at USD 35 cents. Revenue at USD 1.58b vs. estimated USD 1.54b. (Fox Business)

BB&T – Co. reported 2Q12 EPS at USD 72 cents vs. estimated 1Q11 at USD 69 cents. Revenue at USD 2.47b vs. estimated USD 2.41b. (Fox Business)

COMMODITIES

Brent Crude Oil prices rose to USD 107 a barrel on crisis in Syria and Iran. (Reuters)

GLOBAL

Regulators in Sweden, Japan and South Korea are examining their respective interbank lending or benchmark borrowing rates amid concerns of them being susceptible to manipulation like the Libor. The main premise being that these rates are set based on estimations of banks rather than actual trade could make it easier to manipulate. (Bloomberg)

 

 

CHINA’S BIGGEST 4 BANKS INCREASE LENDING ACTIVITIES

On the banking front in China, data revealed that 4 of the biggest state-owned banks doubled their lending activities for the early period of  July 2012. Banks provided loans totalling RMB 919.8 b in June whereas the lending in the first half of July 2012 touched RMB 50 b, according to sources from state-run Shanghai Securities News. The agency also believes that total new loans could decline to RMB 650 b (USD 102 m) in July.

Increase in lending shows proof of the rate easing measures undertaken by the central bank to provide further liquidity in to the markets. (CNBC)

 

DAILY MARKET REPORT – 18 JULY 2012

The markets ended in the positive territory in today’s trade on positive global cues, the CPI inflation data which came in lower at 10.02 percent.The index saw buying activity in stocks in the metals, realty, capital goods and tech sectors. The Index however remains range bound between 5150 – 5300. Investors see not many major events happening in the markets and hence the narrow range. Fed however did not propose a QE issue and I guess, markets were waiting for such an event to provide short-term momentum.

The Sensex closed 79.71 points or 0.47 percent higher at 17185.01 points. The index touched a high of 17200.42 and a low of 17038.59 points in trade today. The Nifty closed 23.45 points higher to end at 5216.30 points. It touched a high of 5222.85 and a low of 5169.05 points in trade today.

From the global market scenario,Asia was lower in trade on the outcome of the Fed not introducing major stimulus measures. China ended marginally positive for an otherwise lower close. Europe however has opened higher, although marginally as earnings reports of co.’s buoyed markets.

Credit Suisse reported its earnings, but shares of the co. gained as it announced a slew of measures to cut costs, sell assets to add around CHF (Swiss francs) 8.7 b (USD 8.9 b) to boost its capital. With issues relating to the stability of the banks, the move would be welcomed by investors for the near term. But it remains to be seen as to how the co. would go about with it and its performance in the subsequent quarters.

On the sectoral indices front on the BSE, the Metal, Realty, Capital Goods and IT index gained by an average of 1 – 2 percent each. Auto and  while Auto, Oil  and Gas Indices declined in trade.

On the individual stock front, Greaves Cotton surged 9 percent to INR 67 a share on a volumes which of 3.33 m shares were 10x normal volumes. News of the co. signing a long term agreement with Atul Auto in the previous week saw the share price surge. Bajaj Auto posted its 1Q12 earnings and the stock closed higher by 2.4 percent at INR 1480 a share. Tata Motors declined 3 percent to INR 220 as the stock went ex-dividend today. The co. proposed a dividend of INR 4  a share.

On the currency front, the Rupee closed 0.23 paise higher at 55.28 to the US Dollar.

Commodities traded lower during the session with WTI at USD 88.76 down 0.52% and Brent trading at USD 103.73 down 0.26%. On the weather front, thunderstorm expected over Boston, New York, Philadelphia and Washington D.C.

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( Business Standard, Economic Times and Moneycontrol)