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Wednesday, November 10, 2010
Tuesday, November 9, 2010
Tata Motors posts highest consolidated quarterly profits
Tata Motors reported its highest ever quarterly profit at Rs 2,223 crore for the second quarter against Rs 22 crore for the corresponding period last fiscal.
The company's consolidated revenue went up by 36.5 per cent at Rs 28,782 crore. The company's share price reached new high at Rs 1,270.55 on the BSE on Tuesday in the hope of a record performance. The results were announced post market hours.
The company attributed the performance to increase in sales volume and continuing cost reduction efforts. “The company will continue cost reduction initiatives. Operationally, we will look at every opportunity to curb cost increase,” said Mr Carl-Peter Forster, Managing Director and CEO of Tata Motors.
The Jaguar Land Rover business, which reported Rs 1,715 crore net profit for the three-month period ending September 30 from a loss of Rs 461 crore for the year-ago period, drove the record performance. JLR posted a 22 per cent growth in volume at 54,140 units.
Standalone net dips
The standalone net profit of Tata Motors at Rs 433 crore, fell 41 per cent from Rs 729 crore for the corresponding quarter a year ago. This is because of the Rs 420 crore income from the sale of shares in subsidiary company's Tata Motors received during the second quarter of last year. If this exceptional income is removed, the profit after tax grew by 21 per cent for the just ended quarter.
The net income from the domestic business grew 45 per cent to Rs 12,420 crore as the truck and bus sales grew 23 per cent to 1.11 lakh vehicles and car sales grew 36 per cent to 82,564 units.
About Nano sales which decreased in the recent months and production ramp up, Mr Forster said, “We have to break new grounds with Nano sales. The production will be adjusted to the retail sales.”
For Jaguar Land Rover, the engine supply constraints which slowed its sales still continue. The company is preparing to launch Range Rover Evoque in the summer of 2011. UK continues to be the major market for the JLR with more than 14,000 unit sales for the quarter while China reported highest growth at 72 per cent to 5,801 units. North America too reported 27 per cent growth at more than 12,000 unit sales.
“The better product mix and better market mix drove the JLR volumes. New Jaguar XJ and increase of selling price led to good growth,” said Mr Ramakrishnan, Chief Financial Officer, Tata Motors.
Outlook
“There is a strong growth in demand. However, supply constraints and raw material cost pressures still continue,” said Mr Ramakrishnan.
Another subsidiary Tata Motors Finance's net profit more than doubled to Rs 44 crore while Tata Daewoo net profit declined to Rs 8 crore.
The company's consolidated revenue went up by 36.5 per cent at Rs 28,782 crore. The company's share price reached new high at Rs 1,270.55 on the BSE on Tuesday in the hope of a record performance. The results were announced post market hours.
The company attributed the performance to increase in sales volume and continuing cost reduction efforts. “The company will continue cost reduction initiatives. Operationally, we will look at every opportunity to curb cost increase,” said Mr Carl-Peter Forster, Managing Director and CEO of Tata Motors.
The Jaguar Land Rover business, which reported Rs 1,715 crore net profit for the three-month period ending September 30 from a loss of Rs 461 crore for the year-ago period, drove the record performance. JLR posted a 22 per cent growth in volume at 54,140 units.
Standalone net dips
The standalone net profit of Tata Motors at Rs 433 crore, fell 41 per cent from Rs 729 crore for the corresponding quarter a year ago. This is because of the Rs 420 crore income from the sale of shares in subsidiary company's Tata Motors received during the second quarter of last year. If this exceptional income is removed, the profit after tax grew by 21 per cent for the just ended quarter.
The net income from the domestic business grew 45 per cent to Rs 12,420 crore as the truck and bus sales grew 23 per cent to 1.11 lakh vehicles and car sales grew 36 per cent to 82,564 units.
About Nano sales which decreased in the recent months and production ramp up, Mr Forster said, “We have to break new grounds with Nano sales. The production will be adjusted to the retail sales.”
For Jaguar Land Rover, the engine supply constraints which slowed its sales still continue. The company is preparing to launch Range Rover Evoque in the summer of 2011. UK continues to be the major market for the JLR with more than 14,000 unit sales for the quarter while China reported highest growth at 72 per cent to 5,801 units. North America too reported 27 per cent growth at more than 12,000 unit sales.
“The better product mix and better market mix drove the JLR volumes. New Jaguar XJ and increase of selling price led to good growth,” said Mr Ramakrishnan, Chief Financial Officer, Tata Motors.
Outlook
“There is a strong growth in demand. However, supply constraints and raw material cost pressures still continue,” said Mr Ramakrishnan.
Another subsidiary Tata Motors Finance's net profit more than doubled to Rs 44 crore while Tata Daewoo net profit declined to Rs 8 crore.
Friday, November 5, 2010
Happy Diwali
Happy Diwali to you and your family from Wealth Securities
A franchisee of SMC based in Apeksh Apt., Sai Nagar, Vasai Road, Pin 401202
Thanks and Regards,
Ankit Desai
Mehul Katariya
A franchisee of SMC based in Apeksh Apt., Sai Nagar, Vasai Road, Pin 401202
Thanks and Regards,
Ankit Desai
Mehul Katariya
Tuesday, November 2, 2010
RBI raises key rates; FM: may impact short-term growth
Hardening its stance on inflation, RBI Tuesday raised some key policy rates prompting finance minister Pranab Mukherjee to caution that it could have some short-term negative impact on growth.
The apex bank increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25 percent and 5.25 percent respectively, but the commercial banks said they would not increase their lending rates immediately.
"This tightening may have some negative impact on the growth rate, but I expect such an effect to be only a short one. In the medium to long term, the changes announced by the RBI today should actually help the Indian economy do better in terms of growth," Mukherjee said.
This was the sixth time this year that the Reserve Bank of India (RBI) has raised repo and reverse repo rates. The apex bank, however, hoped that going forward it may not have to up the rates further.
India Inc expressed apprehensions that the RBI decision would make loans expensive and may dampen industrial growth.
"This (RBI move) in turn would adversely impact the interest sensitive sectors like consumer durables and auto, which have led the growth hitherto as also on the housing demand," Ficci secretary feneral Amit Mitra said.
RBI has pegged the growth rate for the current fiscal at 8.5 percent, up from 7.4 percent in the previous fiscal.
The mid-year policy initiatives, according to Planning Commission deputy chairman Montek Singh Ahluwalia, were in sync with the actions of other central banks.
Although banks said they would refrain from immediately hiking rates, they may not be able to hold on to the existing rate-level for long as demand for credit increases and depositors put pressure on them to raise interest rates.
"So, whether it (hike by RBI) will raise pressure on the system? Eventually, it will. Whether there would be immediate reaction? Not likely," said SBI chairman O P Bhatt.
The hike in the key interest rates according to RBI is aimed at containing inflation, which is above the "comfort level."
Inflation was 8.62 percent in September and food inflation was 13.75 percent in mid-October. RBI has pegged inflation at 5.5 percent by the fiscal- end.
"Today is not such an easy time. The signals from the economy have been mixed. Industrial growth showed a slight slowing down in August. Inflation, while less than what it was some months ago, is still not in a zone where we can sit back," Mukherjee added.
RBI, however, refrained from raising the cash reserve ratio (CRR), which is the proportion of deposits that the banks keep with the central bank, in view of tight liquidity situation.
"I am glad that RBI has risen to the challenge and used a very careful combination of policies to complement what the government is doing to steer our economy to grow better and harness inflation," Mukherjee said.
Stock markets reacted mildly to the hike in policy rates by RBI with the benchmark Sensex ending the day flat. The 30-share index closed 9.94 points lower at 20,345.69 points.
"RBI's move to hike the key policy rates are in line with the Street's expectations and equity markets have not reacted much to the announcement since it has already be factored in," Axis Mutual Fund CEO and MD Rajiv Anand said.
Expressing concern at excessive borrowing for homes, the Reserve Bank also tightened norms for housing loans as well as controversial teaser loans.
The Reserve Bank also cautioned against rising stock and gold prices.
It said huge capital inflows in emerging economies are resulting in appreciation of local currencies and asset prices.
The central bank said it may intervene if forex flows are lumpy and volatile.
The apex bank increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25 percent and 5.25 percent respectively, but the commercial banks said they would not increase their lending rates immediately.
"This tightening may have some negative impact on the growth rate, but I expect such an effect to be only a short one. In the medium to long term, the changes announced by the RBI today should actually help the Indian economy do better in terms of growth," Mukherjee said.
This was the sixth time this year that the Reserve Bank of India (RBI) has raised repo and reverse repo rates. The apex bank, however, hoped that going forward it may not have to up the rates further.
India Inc expressed apprehensions that the RBI decision would make loans expensive and may dampen industrial growth.
"This (RBI move) in turn would adversely impact the interest sensitive sectors like consumer durables and auto, which have led the growth hitherto as also on the housing demand," Ficci secretary feneral Amit Mitra said.
RBI has pegged the growth rate for the current fiscal at 8.5 percent, up from 7.4 percent in the previous fiscal.
The mid-year policy initiatives, according to Planning Commission deputy chairman Montek Singh Ahluwalia, were in sync with the actions of other central banks.
Although banks said they would refrain from immediately hiking rates, they may not be able to hold on to the existing rate-level for long as demand for credit increases and depositors put pressure on them to raise interest rates.
"So, whether it (hike by RBI) will raise pressure on the system? Eventually, it will. Whether there would be immediate reaction? Not likely," said SBI chairman O P Bhatt.
The hike in the key interest rates according to RBI is aimed at containing inflation, which is above the "comfort level."
Inflation was 8.62 percent in September and food inflation was 13.75 percent in mid-October. RBI has pegged inflation at 5.5 percent by the fiscal- end.
"Today is not such an easy time. The signals from the economy have been mixed. Industrial growth showed a slight slowing down in August. Inflation, while less than what it was some months ago, is still not in a zone where we can sit back," Mukherjee added.
RBI, however, refrained from raising the cash reserve ratio (CRR), which is the proportion of deposits that the banks keep with the central bank, in view of tight liquidity situation.
"I am glad that RBI has risen to the challenge and used a very careful combination of policies to complement what the government is doing to steer our economy to grow better and harness inflation," Mukherjee said.
Stock markets reacted mildly to the hike in policy rates by RBI with the benchmark Sensex ending the day flat. The 30-share index closed 9.94 points lower at 20,345.69 points.
"RBI's move to hike the key policy rates are in line with the Street's expectations and equity markets have not reacted much to the announcement since it has already be factored in," Axis Mutual Fund CEO and MD Rajiv Anand said.
Expressing concern at excessive borrowing for homes, the Reserve Bank also tightened norms for housing loans as well as controversial teaser loans.
The Reserve Bank also cautioned against rising stock and gold prices.
It said huge capital inflows in emerging economies are resulting in appreciation of local currencies and asset prices.
The central bank said it may intervene if forex flows are lumpy and volatile.
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