background

Home

Tata Motors, Hero MotoCorp in focus after declaring monthly sales volume data for May

Tata Motors, Hero MotoCorp in focus after declaring monthly sales volume data for May

Tata Motors announced that its total commercial and passenger vehicles sales rose 1% to 40,071 units in May 2016 over May 2015. The companys domestic sales of Tata commercial and passenger vehicles rose 2% to 35,643 units in May 2016 over May 2015. Exports declined 5% to 4,428 units in May 2016 over May 2015. The company announced the monthly sales volume data after market hours yesterday, 1 June 2016.

Hero MotoCorp reported 2.32% rise in total two-wheelers sales to 5.83 lakh units in May 2016 over May 2015. Market demand was expectedly subdued in May 2016, due to the heavy retail offlake that happened in April on account of the marriage season and regional festivals in different parts of the country during that month, the company said in a statement. However, a good monsoon after two consecutive years of sub-normal rains could lead to a change in sentiments in the rural markets, which may lead to a positive turn-around in the industry in the second half of this fiscal, it added. The announcement was made after trading hours yesterday, 1 June 2016.

In the month of May, Hero MotoCorp forayed into the world of motorcycle rally racing, through a strategic alliance with Speedbrain GmbH, the German off-road racing specialist. The newly formed Hero MotoSports Team Rally made its debut at the Merzouga Rally, a Dakar series race that recently concluded in Morocco.

Reliance Industries (RIL) announced at the fag end of the trading session yesterday, 1 June 2016, that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings, is investing $16 million in compulsorily convertible preferred shares of a technology start-up viz. NetraDyne Inc., USA. The US-based entity is involved in high-end technology driven product development of deep learning solutions and vision based analytics targeted at industries such as fleet management, automotive, security and surveillance. The entity is currently in advanced stages of product development. It is yet to commence commercial operations, RIL said in a statement. NetraDyne Incs line of business has potential synergies with telecom and digital business initiatives of RIL apart from commercialization benefits in India, RIL added.

RIL further said that 50% of the investment in NetraDyne has been done on 31 May 2016. The balance 50% investment is likely to be completed by 31 March 2017. Upon conversion of the investment, Reliance Industrial Investments and Holdings will get about 15 million equity shares at $1.0613 per share. This translates to 40% equity stake.

Bharti Airtel said that Airtel Payments Bank announced the appointment of Shashi Arora as the CEO Managing Director of the company, subject to the approval of the Reserve Bank of India (RBI). He will replace Manish Khera, CEO, who has decided to pursue his entrepreneurial journey, Bharti Airtel said.

On 11 April 2016, Airtel Payments Bank received a payments bank license from RBI. The company plans to start rolling out its banking network in Q2 September 2016.

Coal India and its subsidiaries on provisional basis achieved 95% of targeted production at 42.58 million tonnes in May 2016. Coal India and its subsidiaries on provisional basis achieved 89% of targeted offtake at 45.53 million tonnes in May 2016. The announcement was made after market hours yesterday, 1 June 2016.

Axis Bank said it has signed tripartite share subscription agreement and shareholders agreement with A.Treds and Mjunction services. A.Treds is a subsidiary company of AXIS Bank. Mjunction services is a joint venture between Tata Steel and Steel Authority of India.

As per the agreement, Axis Bank purchased 1.65 crore shares of A.Treds for Rs 16.50 crore and Mjunction purchased 82.50 lakh shares of A.Treds for Rs 8.25 crore. Consequently, Axis Bank holds 67% stake and Mjunction holds 33% stake in A.Treds.

A.Treds is licensed by the Reserve Bank of India to engage in the business of trade receivables discounting systems (TReDS). The announcement was made after trading hours yesterday, 1 June 2016.

Separately, Axis Bank announced after market hours yesterday, 1 June 2016 that it has allotted senior fixed rate green bonds aggregating to $500 million under the MTN programme through its Dubai International Financial Centre (DIFC) branch. The notes will be listed at the Singapore Stock Exchange and London Stock Exchange. The notes have been priced at 160 basis points over the 5-year US Treasury Note, at a price of 99.479% to yield 2.988%. The notes will be denominated in US dollars, and will bear fixed interest of 2.875% per annum, with interest payable semi-annually in arrears.

Punjab National Bank (PNB) announced revision to its lending rates based on marginal cost of funds to be effective from 1 June 2016. PNBs Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.15%, for one month will be 9.20% and for three months will be 9.30%. The MCLR on 6-month loans will be 9.35% and for one-year loans the rate would be 9.40%, the bank said. MCLR for three-year loans would be at 9.55% and loans with five-year maturity would carry an MCLR of 9.70%, the bank said. The announcement was made after market hours yesterday, 1 June 2016.

All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.

TVS Motor Companys total sales rose 11% to 2.43 lakh units in May 2016 over May 2015. The announcement was made after trading hours yesterday, 1 June 2016.

South Indian Bank said that its board of directors has decided to augment the capital by issue of Basel III compliant Tier I/II Bonds to be considered for capital fund purpose for a total face value not exceeding Rs 500 crore in one or more tranches, on such terms and conditions as it may deem fit, subject to the approval of Reserve Bank of India, shareholders and other regulatory authorities, if any. The mode, price and time of the issue will be intimated in due coursem the bank said. The announcement was made after trading hours yesterday, 1 June 2016.

Punj Lloyd announced after trading hours yesterday, 1 June 2016, that the High Court of Justice, Queens Bench Division, Commercial Court, UK has ordered the company and its subsidiary, Punj Lloyd Upstream (PLUL), to pay $26173659.16 (plus summary assessment costs amounting to 75000 pounds), to International Finance Corporation, towards their claims. The company said it is considering various legal options and shall take appropriate steps in respect of such order.

Kajaria Ceramics said that its board of directors will meet on 16 June 2016 to consider stock split. The company proposes to split face value of each share from Rs 2 to Re 1.

Gammon India announced after trading hours yesterday, 1 June 2016, that it has received a Notice of Conversion from DBS Bank (one of the joint lenders) for conversion of part of outstanding debt into equity shares under the Strategic Debt Restructuring Package of the company. Pursuant to this notice, DBS Bank has decided to convert part of its outstanding debt and interest aggregating to Rs 4.90 crore into 41.24 lakh equity shares of the company of face value of Rs 2 each at Rs 11.89 per equity share. Post this conversion the total shareholding of the CDR Lenders and DBS Bank will be 63.07% of the total equity capital of the company.

Powered by Capital Market - Live News



For India's surging economy, small is beautiful

For Indias surging economy, small is beautiful The country has more than 45 million SMEs, accounting for nearly 40% of GDP

For Rohan Sharma, business has never been better. Sales at his autoparts company in Gujarat are booming and the order book has almost doubled in the past year.

His Bhagirath Coach Metal Fabricators has just invested nearly $120,000 in new machinery and plans to spend up to $1.2 million this year to expand capacity.

That#39;s an encouraging sign for Asia#39;s third-largest economy, where stressed balance sheets at big firms and heavy reliance on bank credit, which has dried up following a surge in troubled loans, have stymied efforts to revive private investment.

Sharma does not face such constraints. He says his firm is debt-free and relies mainly on internal resources to fund capacity expansion.

A survey from the Reserve Bank of India (RBI) shows he is not alone. The annual study of nearly 240,000 unlisted small-and medium-sized enterprises (SMEs) found they are saving their way to growth, helping transform India into the world#39;s fastest-growing large economy in the past two years.

India has more than 45 million SMEs, accounting for nearly 40% of GDP. Most are unlisted, and their earnings growth has outpaced listed companies for the past three years.

We never allowed exuberance to get the better of hard business logic, Sharma said.

Sales at smaller private firms grew 12% in FY15, the central bank survey showed. Sales at listed big companies rose 1.4% over the same period.

Operating profit of the unlisted firms grew an annual 16.6% in the year, three times the pace at listed companies, and they increased their gross savings.

While higher expenses halved net profit growth at private firms, they still grew at double-digit pace. In contrast, listed companies struggled with shrinking profits.

Debt-laden big listed firms, meanwhile, are still reluctant to undertake new investments, and foreign firms can find India#39;s labyrinthine regulations overwhelming.

Also, infrastructure and resources needed for complex manufacturing, like roads, skilled labour and consistent power supply, is often lacking.

That led to a contraction in capital spending in the January-March quarter. Despite that, strong consumer spending helped power economic growth of 7.9%, the fastest rate among the world#39;s major economies.

Flexibility an advantage

Being a small-scale company has helped us in getting more orders, said Pramod Patel, managing partner at Reliable Paints.

Patel#39;s company, which supplies industrial paint to the metals, chemical, auto and defence sectors, saw 25% growth in its order book in the fiinancial year ending in March.

We can customise different paint shades for clients, unlike big paint companies which can only provide specific paint shades, he said.

Capacity utilisation at his Gujarat-based factory shot up to 80% from 50% in FY15. Now, Patel is buying new machines, hiring workers and spending more on marketing.

Helping power smaller firms has been Prime Minister Narendra Modi#39;s plan to build 10,000 km of new national highways and upgrade another 50,000 km as part of $32 billion infrastructure spending this financial year.

This has boosted sales of heavy commercial vehicles and, by extension, auto ancillary companies.

Steel Strips Wheels , for example, reported a 55% jump in earnings per share in the financial year that ended in March.

The company, which supplies wheel rims to major automakers, has seen a big leap in capacity utilization. Its commercial vehicles wheel plant is now using 95% of capacity from little over 35% in FY14.

Today our order book is more than our execution capacity, chief financial officer Naveen Sorot said. So we are planning to expand our production capacity.

Patchy recovery

For India to consistently grow at or above 8% that it targets to generate jobs for a rapidly expanding workforce, major listed enterprises will have to come to the party.

Encouragingly, the infrastructure push has begun to feed through to the balance sheets of some bigger listed firms.

Corporate earnings at listed non-financial firms in the March quarter grew 18%, the strongest in the past two years, raising hopes of an improvement in their debt-laden balance sheets.

Nonetheless, the recovery in investment is patchy.Thermax Ltd , an engineering company, reported a 15% drop in its order book in the last quarter from a year ago.

With banks increasingly taking action against corporations that default on loans, a senior government official said companies are likely to keep a lid on capital outlays unless they see visible returns on new investments.

Until then, government spending will have to do the heavy lifting, the official said.



Gehlot asks state agencies to further simplify the lending procedures for rehabilitation of Scheduled Castes, Safai ...

Ministry of Social Justice Empowerment, Govt. of India organized a meeting of the State Channelizing Agencies (SCAs) of its Apex Corporations ie National Scheduled Castes Finance and Development Corporation (NSFDC), National Safai Karamcharis Finance and Development Corporation (NSKFDC) and National Backward Classes Finance and Development Corporation here today to review the performance of SCAs and to discuss action plan for the current year.

The meeting was chaired by Shri Thaawar Chand Gehlot, Union Minister for Social Justice Empowerment. During the meeting, Shri Krishan Pal Gurjar and Shri Vijay Sampla, Ministers of State, SJE, Smt. Anita Agnihotri, Secretary, SJE, Shri Arun Kumar, Addl. Secretary, SJE and senior officers of the Ministry of Social Justice Empowerment, CMD/MDs of Apex Corporations and officers from the States representing the State Channelizing Agencies (SCAs) of Apex Corporations participated in the meeting.

During the meeting, Shri Thaawar Chand Gehlot launched two new schemes of NSFDC ie Reimbursement of Membership and Annual fee to SCAs for Membership of Credit Information Companies (CICs) for the SCAs which will help them to create credit History of the SC beneficiaries and another scheme National Award for Performance Excellence (NAPE) which will motivate the SCAs to perform better and will also create healthy competition.

The Minister appreciated the efforts made by NBCFDC for associating with North Eastern Development Finance Corporation (NEDFI) which will help in extending financial assistance to the beneficiaries in the far off areas of the Northern Eastern States., Referring the Commercial Motor Driving Training Programme for women, initiated by NSKFDC, the Minister advised the SCAs to conduct similar programmes in major cities in their States.

While reviewing the performance of the corporations, it was observed that National Scheduled Castes Finance and Development Corporation (NSFDC) disbursed Rs. 270.27 crore to 70,885 beneficiaries in the year 2014-15 and disbursed Rs. 378.94 crore to 71,915 beneficiaries in the year 2015-16. Under the Skill development training programme, NSFDC provided training to 13,258 SC youth in 2014-15 and to 14,805 SC youth in 2015-16.

The National Safai Karmachari Finance and Development Corporation (NSKFDC) disbursed Rs. 134.05 crore to 19,434 beneficiaries in the year 2014-15 and disbursed Rs. 156.91 crore to 19334 beneficiaries in the year 2015-16. Under the Skill development training programme, NSKFDC provided training to 8,750 youth in 2014-15 and to 9,600 youth in 2015-16. NSKFDC have released onetime cash assistance of Rs. 40,000 each to 10,728 identified manual scavengers and also sanctioned 537 proposals of comprehensive rehabilitation and 2417 proposals of skill development training upto 31.05.2016.

National Backward Classes Finance and Development Corporation (NBCFDC) disbursed Rs. 286.80 crore to 1,66,693 beneficiaries in 2014-15 and Rs. 315.012 crore to 1,80,158 beneficiaries in 2015-16. Under Skill Development Training Programme, NBCFDC provided training to 15,146 youth in 2015-16 as against 11,410 youth in 2014-15.

The Minister emphasized the need for simplifying the lending procedures so that the funds could be disbursed to the beneficiaries in the shortest possible time, He also asked SCAs to standardize their operations, adopt best practices, re-orient their strategies, adopt efficient mechanism for transfer of funds through online system so that we parking of funds could be avoided and ensure prompt delivery of services to the target group for their socio-economic development.

The Minister said that Government of India is very keen to move towards a cashless society through the JAM Trinity (Jan Dhan Account, Aadhaar Number Mobile Number). Therefore, the SCAs should help the beneficiaries in getting enrolled for the Aadhaar Numbers at the nearest Aadhaar Enrolment Centers or e-Aadhaar enrolment. The SCAs should computerize their accounts and ensure direct transfer of loans in the Aadhaar seeded bank accounts of the beneficiaries and also maintain and upload the database on their websites linked with the Apex Corporations.

Shri Gehlot emphasized the need for wide publicity of the schemes of the Ministry so that the target group could be made aware of the schemes and get motivated to avail the benefits of the schemes for their socio-economic upliftment. Further, the Minister emphasized that the SCAs should come forward with innovative Skill Development Training Programmes so that the objective of Skill India Mission could be achieved by providing training to maximum number of members of the target groups of Apex Corporations for enhancement of their capabilities for better job/self-employment so that they can also join hands in the development of nation. The Minister also stressed the need for all out efforts for immediate rehabilitation of the identified Manual Scavengers in job/self-employment, as it is national priority to eradicate manual scavenging and rehabilitation of identified manual scavengers.



Market may open lower

Market may open lower

Market may edge lower in early trade. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 24 points at the opening bell.

In overseas stock markets, Asian stocks were mixed. Japanese stocks declined as yen strengthened against the dollar. The Nikkei 225 Average was currently off 2.29%. A strong yen makes Japanese exports less competitive and cuts into the value of repatriated earnings. US stocks registered small gains yesterday, 1 June 2016, helped by an intraday recovery in oil prices and better-than-expected manufacturing data.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 259.90 crore yesterday, 1 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 160.49 crore yesterday, 1 June 2016, as per provisional data.

Among corporate news, Reliance Industries (RIL) announced at the fag end of the trading session yesterday, 1 June 2016, that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings, is investing $16 million in compulsorily convertible preferred shares of a technology start-up viz. NetraDyne Inc., USA. The US-based entity is involved in high-end technology driven product development of deep learning solutions and vision based analytics targeted at industries such as fleet management, automotive, security and surveillance. The entity is currently in advanced stages of product development. It is yet to commence commercial operations, RIL said in a statement. NetraDyne Incs line of business has potential synergies with telecom and digital business initiatives of RIL apart from commercialization benefits in India, RIL added.

RIL further said that 50% of the investment in NetraDyne has been done on 31 May 2016. The balance 50% investment is likely to be completed by 31 March 2017. Upon conversion of the investment, Reliance Industrial Investments and Holdings will get about 15 million equity shares at $1.0613 per share. This translates to 40% equity stake.

Tata Motors announced that its total commercial and passenger vehicles sales rose 1% to 40,071 units in May 2016 over May 2015. The companys domestic sales of Tata commercial and passenger vehicles rose 2% to 35,643 units in May 2016 over May 2015. Exports declined 5% to 4,428 units in May 2016 over May 2015. The company announced the monthly sales volume data after market hours yesterday, 1 June 2016.

Hero MotoCorp (HMCL) reported 2.32% rise in total two-wheelers sales to 5.83 lakh units in May 2016 over May 2015. Market demand was expectedly subdued in May 2016, due to the heavy retail offlake that happened in April on account of the marriage season and regional festivals in different parts of the country during that month, the company said in a statement. However, a good monsoon after two consecutive years of sub-normal rains could lead to a change in sentiments in the rural markets, which may lead to a positive turn-around in the industry in the second half of this fiscal, it added. The announcement was made after trading hours yesterday, 1 June 2016.

In the month of May, Hero MotoCorp forayed into the world of motorcycle rally racing, through a strategic alliance with Speedbrain GmbH, the German off-road racing specialist. The newly formed Hero MotoSports Team Rally made its debut at the Merzouga Rally, a Dakar series race that recently concluded in Morocco.

Bharti Airtel said that Airtel Payments Bank announced the appointment of Shashi Arora as the CEO Managing Director of the company, subject to the approval of the Reserve Bank of India (RBI). He will replace Manish Khera, CEO, who has decided to pursue his entrepreneurial journey, Bharti Airtel said.

On 11 April 2016, Airtel Payments Bank received a payments bank license from RBI. The company plans to start rolling out its banking network in Q2 September 2016.

Coal India and its subsidiaries on provisional basis achieved 95% of targeted production at 42.58 million tonnes in May 2016. Coal India and its subsidiaries on provisional basis achieved 89% of targeted offtake at 45.53 million tonnes in May 2016. The announcement was made after market hours yesterday, 1 June 2016.

Axis Bank said it has signed tripartite share subscription agreement and shareholders agreement with A.Treds and Mjunction services. A.Treds is a subsidiary company of AXIS Bank. Mjunction services is a joint venture between Tata Steel and Steel Authority of India.

As per the agreement, Axis Bank purchased 1.65 crore shares of A.Treds for Rs 16.50 crore and Mjunction purchased 82.50 lakh shares of A.Treds for Rs 8.25 crore. Consequently, Axis Bank holds 67% stake and Mjunction holds 33% stake in A.Treds.

A.Treds is licensed by the Reserve Bank of India to engage in the business of trade receivables discounting systems (TReDS). The announcement was made after trading hours yesterday, 1 June 2016.

Separately, Axis Bank announced after market hours yesterday, 1 June 2016 that it has allotted senior fixed rate green bonds aggregating to $500 million under the MTN programme through its Dubai International Financial Centre (DIFC) branch. The notes will be listed at the Singapore Stock Exchange and London Stock Exchange. The notes have been priced at 160 basis points over the 5-year US Treasury Note, at a price of 99.479% to yield 2.988%. The notes will be denominated in US dollars, and will bear fixed interest of 2.875% per annum, with interest payable semi-annually in arrears.

Punjab National Bank (PNB) announced revision to its lending rates based on marginal cost of funds to be effective from 1 June 2016. PNBs Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.15%, for one month will be 9.20% and for three months will be 9.30%. The MCLR on 6-month loans will be 9.35% and for one-year loans the rate would be 9.40%, the bank said. MCLR for three-year loans would be at 9.55% and loans with five-year maturity would carry an MCLR of 9.70%, the bank said. The announcement was made after market hours yesterday, 1 June 2016.

All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.

On the macro front, the central government has announced increase ranging from 1.5% to 9.2% in the minimum support prices (MSPs) of Kharif crops for the 2016-17 season. The MSPs include a bonus of Rs 425 per quintal for pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs 200 per quintal for Sesamum and a bonus of Rs 100 per quintal for other kharif oilseeds namely, Groundnut-in-shell, Sunflowerseed, Soyabean, and Nigerseed. The government said in a statement that the decision to offer bonus over MSP on pulses and oilseeds is aimed at giving a strong price signal to farmers to increase acreage and invest for increase in productivity of these crops. There is an increasing gap between the demand and domestic supply of pulses and oilseeds and the reliance on import is increasing. The increase in cultivation of leguminous pulses and oilseeds will also have additional environmental benefits as these crops are less water consuming and help in nitrogen fixation in the soil.

Amid a divergent trend among various index constituents, the two key benchmark indices registered small gains yesterday, 1 June 2016. The Sensex rose 45.97 points or 0.17% to settle at 26,713.93, its highest closing level since 30 May 2016.

Powered by Capital Market - Live News



2017  NC Peace Justice   globbers joomla templates