Key benchmark indices edged higher as Asian and European stocks rose on speculation Federal Reserve policy makers won't announce any major changes to monetary stimulus for the US economy when they conclude a meeting today, 30 October 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. The barometer index, the S&P BSE Sensex, settled at record high above the psychological 21,000 mark. The 50-unit CNX Nifty settled at its highest level in more than 35 months. The Sensex garnered 104.96 points or 0.5%, off 52.62 points from the day's high and up 96.85 points from the day's low. The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Tuesday, 29 October 2013. The market breadth, indicating the overall health of the market, was positive.
Indian stocks gained for the second day in a row today, 30 October 2013. The Sensex has garnered 350.45 points or 1.69% in two trading sessions from a recent low of 20,683.52 on 21 October 2013. The Sensex has gained 1,654.20 points or 8.54% in this month so far (till 30 October 2013). The Sensex has gained 1,607.26 points or 8.27% in calendar 2013 so far (till 30 October 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,585.26 points or 20.55%.
Coming back to today's trade, Jindal Steel & Power dropped in volatile trade after reporting weak Q2 result. Grasim Industries was volatile after reporting weak Q2 result. Index heavyweight and cigarette maker ITC edged higher in choppy trade. Dr Reddy's Laboratories scaled record high ahead of its Q2 result tomorrow, 31 October 2013. Lupin rose on strong Q2 result. Shares of cellular services major Bharti Airtel surged, with the stock shrugging off the company's weak Q2 results. IDBI Bank dropped on poor Q2 result. Oriental Bank of Commerce dropped on weak Q2 result.
The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Tuesday, 29 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1167.70 crore from the secondary equity markets on Tuesday, 29 October 2013, as per data from Securities & Exchange Board of India.
The market may remain volatile tomorrow, 31 October 2013, as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire tomorrow, 31 October 2013.
The S&P BSE Sensex garnered 104.96 points or 0.5% to settle at 21,033.97, a record closing high. The index jumped 157.58 points at the day's high of 21,086.59 in mid-afternoon trade. The index rose 8.11 points at the day's low of 20,937.12 in morning trade.
The CNX Nifty was up 30.80 points or 0.5% to 6,251.70, its highest closing level since 10 November 2010. The index hit a high of 6,269.20 in intraday trade. The index hit a low of 6,222.60 in intraday trade.
The total turnover on BSE amounted to Rs 1930 crore, lower than Rs 2243.47 crore on Tuesday, 29 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,270 shares rose and 1,161 shares fell. A total of 178 shares were unchanged.
The BSE Mid-Cap index rose 0.25%, underperforming the Sensex. The BSE Small-Cap index gained 0.64%, outperforming the Sensex.
Eleven of 13 sectoral indices on BSE edged higher. The BSE HealthCare index (up 1.19%), the BSE FMCG index (up 1.12%), the BSE Teck index (up 0.66%) and the BSE Power index (up 0.51%) outperformed the Sensex.
The BSE Realty index (up 0.47%), the BSE Consumer Durables index (up 0.41%), the BSE IT index (up 0.15%), the BSE Capital Goods index (up 0.08%), the BSE Bankex (up 0.06%), the BSE Metal index (up 0.04%), the BSE Oil & Gas index (up 0.01%), the BSE PSU index (down 0.03%) and the BSE Auto index (down 0.05%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC gained 1.62% to Rs 333.20 in choppy trade. The stock hit high of Rs 333.95 and low of Rs 325.60.
Pidilite Industries rose 5.46% on good Q2 result. The company's consolidated net profit rose 23.9% to Rs 118.48 crore on 21.6% increase in net sales to Rs 1094.07 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Tuesday, 29 October 2013.
Index heavyweight Reliance Industries (RIL) dropped in volatile trade. The stock was shed 0.18% at Rs 895.20. The stock hit high of Rs 902.50 and low of Rs 895.
NTPC rose 1.03%, with the stock shrugging off weak Q2 result. The company after market hours on Tuesday, 29 October 2013, reported 20.66% fall in net profit to Rs 2492.90 crore on 0.64% fall in total income to Rs 17059.41 crore in Q2 September 2013 over Q2 September 2012.
GAIL (India) fell 0.42%, with the stock reversing intraday gain. The company said during market hours that it has sold 60 million shares out of 210 million shares held in China Gas Holdings at HK$ 8.20 per share. GAIL (India) also said that the Ministry of Petroleum & Natural Gas vide letter dated 25 October 2013 has informed that under-recovery burden on GAIL (India) for the year ending 31 March 2014 (FY 2014) has been provisionally fixed at Rs 1400 crore. GAIL (India) has already shared subsidy burden of Rs 1398.68 crore for the half year ended 30 September 2013. This means that GAIL (India) will have to share a miniscule subsidy burden during the second half of FY 2014.
GAIL (India) also said that Ministry of Petroleum & Natural Gas, vide letter dated 10 October 2013 has extended the tenure of Shri B. C. Tripathi as Chairman & Managing Director for a period of five years beyond 31 July 2014.
Jindal Steel & Power (JSPL) dropped 0.58% to Rs 239.20 on weak Q2 result. The stock was volatile. The scrip hit high of Rs 243.50 and low of Rs 236.60. The company's consolidated net profit fell 49.64% to Rs 454.94 crore on 7% increase in turnover to Rs 4983.84 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 30 October 2013.
JSPL said it has a positive and optimistic outlook for Q3 December 2013 and Q4 March 2014.
JSPL's said total sale of steel products rose 16% to 7,39,879 MT in Q2 September 2013 over Q2 September 2012. Total sale of pellets increased 47% to 639227 MT in Q2 September 2013 over Q2 September 2012. Total power sales slumped 79% to 116 kilowatt hour (kWh) during the period under review.
JSPL said on the global front, Mazambique mining operations gathered further momentum and is now all set to achieve its rated capacity of 3 MTPA by 31 March 2014. Both Oman and South Africa units also exceeded their performance over the same quarter of the previous year.
The company's subsidiary, Jindal Power, reported a 16% rise in profit after tax to Rs 300.58 crore on 18% increase in turnover to Rs 664.90 crore in Q2 September 2013 over Q2 September 2012. Power generation increased 12% to 2099 million units in Q2 September 2013 over Q2 September 2012. Plant load factor (PLF) rose to 95.07% in Q2 September 2013 from 85.04% in Q2 September 2012.
Tata Steel rose 0.14%. The company's long products business on Tuesday, 29 October 2013, announced restructuring proposals to help strengthen its competitiveness. The proposed changes affect predominately management and administrative functions at sites in Scunthorpe, Teesside and Workington and could lead to the loss of around 500 jobs. The announcement was made after trading hours on Tuesday.
The proposals come amid a prolonged downturn in demand for some of the key products made by the Scunthorpe-based business, including the UK market for construction steel, which is about half of 2007 levels, Tata Steel said in a statement.
Karl Koehler, CEO of Tata Steel's European operations said: European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years. On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry. As difficult as the proposed changes are, they are intended to build a stronger future by enabling the long products business to compete in even the current challenging economic and regulatory conditions. We will of course engage fully with employees, trade unions and our political stakeholders during this restructuring process. We will do everything we can to support our employees through this unsettling time.
Jon Bolton, Director of the Long Products operations, said: UK demand for construction steel has fallen further since we launched an improvement programme at our Long Products business in 2011. This further market decline means we must now build on the work we have been doing to restore Long Products' ability to compete throughout the economic cycle. The proposed changes at our Workington engineering operations, meanwhile, are as a result of a shortfall in external projects. Today's proposals would help us build a more sustainable business. I know this will be a difficult and unsettling time for affected employees and their families. This action, unfortunately, cannot wait if we are to remain a vital foundation industry supporting the UK's manufacturing and construction sectors. We will work closely with our trade union colleagues and government at a national and local level to ensure we provide our employees with as much assistance and support as possible.
The European operations of Tata Steel comprise Europe's second largest steel producer. With the main steelmaking operations in the UK and Netherlands, they supply steel and related services to the construction, automotive, packaging, rail, lifting & excavating, energy & power, aerospace and other demanding markets worldwide.
Banking pivotals were mostly lower. State Bank of India (SBI) (down 1.1%) and HDFC Bank (down 1.36%) declined. ICICI Bank gained 2.44%.
The Reserve Bank of India on Tuesday, 29 October 2013, said it has decided to give banks the option to pay interest on savings deposits and term deposits at intervals shorter than quarterly intervals.
IDBI Bank lost 4.52% on poor Q2 result. The bank's net profit fell 60.23% to Rs 192.27 crore on 3.4% growth in total income to Rs 7114.44 crore in Q2 September 2013 over Q2 September 2012. The state-run bank announced the second quarter results during trading hours.
Oriental Bank of Commerce lost 4.26% on weak Q2 result. The bank's net profit declined 16.8% to Rs 251.41 crore on 3.45% growth in total income to Rs 4987.71 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours today, 30 October 2013.
Oriental Bank of Commerce (OBC)'s ratio of net non-performing assets (NPAs) to net advances increased to 2.69% as on 30 September 2013 as against 2.34% as on 30 June 2013 and 2.04% as on 30 September 2012. The ratio of gross NPAs to gross advances increased to 3.77% as on 30 September 2013 as against 3.36% as on 30 June 2013 and 2.92% as on 30 September 2012.
The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 12.09% as on 30 September 2013 as against 12.02% as on 30 June 2013 and 12.06% as on 30 September 2012. CAR as per Basel III norms stood at 11.43% as on 30 September 2013.
OBC's deposits grew 6.68% to Rs 175153.10 crore as on 30 September 2013 from Rs 164174.50 crore as on 30 September 2012. Advances rose 8.93% to Rs 128353.50 crore as on 30 September 2013 from Rs 117821.40 crore as on 30 September 2012.
OBC's provisions and contingencies rose 19.7% to Rs 550.52 crore in Q2 September 2013 over Q2 September 2012. Provision coverage ratio as on 30 September 2013 works out to 61.48%.
OBC's board of directors at a meeting held today, 30 October 2013, inter alia, has approved the proposal regarding raising of capital by way of preferential allotment of equity shares in favour of Government of India (GoI) amounting to Rs 150 crore.
Auto stocks were mixed. M&M (down 0.44%) and Tata Motors (down 0.63%), declined. Hero MotoCorp (up 0.6%) and Bajaj Auto (up 2.49%) gained.
Car major Maruti Suzuki India was unchanged at Rs 1637. The stock was volatile. The scrip hit high of Rs 1,658.95 and low of Rs 1,625.20. The company early this week said its net profit jumped 194.7% to Rs 670.20 crore on 26.5% growth in net sales to Rs 10211.80 crore in Q2 September 2013 over Q2 September 2012. The company said that base effect aided strong growth in bottomline in Q2 September 2013 -- the company's performance in Q2 September 2012 was adversely impacted by labour problems at its Manesar plant. Higher localization and cost reduction initiatives by the company also contributed significantly to bottomline growth in Q2 September 2013, Maruti said. The overall impact of foreign exchange was positive during the quarter, Maruti said.
Maruti said that the company's new diesel engine facility at Gurgaon and the third assembly facility at Manesar went on stream during Q2 September 2013. With this, the company's total capacity for vehicle assembly has risen to 1.5 million vehicles per annum.
Grasim Industries was unchanged at Rs 2,800 after Q2 result. The stock witnessed intraday volatility. The scrip hit high of Rs 2,839.05 and low of Rs 2,765. The company's consolidated net profit fell 27.42% to Rs 450 crore on 3.54% increase in revenue to Rs 6849 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 30 October 2013.
Grasim said that its Viscose Staple Fibre (VSF) business recorded a satisfactory performance, given the challenging market conditions. Supported by capacity expansion at Harihar, production increased by 15% over last year. Sales volume at 93,025 MT was up by 9% led by higher exports. Though VSF demand is growing globally, the overcapacity in China created at the time of VSF boom has created pressure on realizations in global markets. The rupee depreciation led increase in pulp cost was offset by decline in caustic and sulphur prices. However, lower realisation resulted in marginal decline in operating profit in standalone business. Sequentially, operating profit rose by 29% with higher volumes as well as better realisation. Consolidated profit before interest, depreciation & taxes (PBIDT) of the business has also improved sequentially by 68% from Rs 161 crore to Rs 269 crore, supported by better performance from pulp units, the company said in a statement.
Grasim said its cement subsidiary, UltraTech Cement's performance was been impacted mainly on account of lower selling prices as well as subdued demand owing to monsoon impact and low offtake from the infrastructure and housing sectors. The benefit of softening in prices of imported coal was largely negated by the devaluation of the rupee. Optimization of the fuel mix helped in power and fuel cost reduction.
With the commissioning of the grinding unit (1.6 million tonnes per annum) at Jharsuguda, Odisha in October 2013, Cement capacity stands augmented to 55.5 million tonnes per annum. On commissioning of all the projects currently under implementation and the acquisition of Gujarat cement unit of Jaypee Cement Corp., UltraTech's cement capacity will increase to 70 million tonnes per annum, Grasim said.
The company said its chemical business reported a 26% rise in production and 20% growth in sales volumes, with uninterrupted operations at Nagda and the commissioning of the Caustic Soda plant at Vilayat (Gujarat) in Q1. Volumes will improve with the gradual ramp up of capacity. ECU realisations saw a correction from the peak level witnessed during fiscal year ended March 2013, even as it rose by 4% quarter-on-quarter (QoQ).
In its outlook, Grasim said that the VSF industry continues to face pricing pressure in the immediate term, given the surplus capacity in China. Capacity addition in China is expected to slowdown because of subnormal returns in industry currently. In Cement, the demand is expected to grow by 5% in the fiscal year ending March 2014 due to the slowdown in the GDP growth rate. It however should recover to over 8% with the improvement in the economic environment.
Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the Company's leadership. This will enable the company to move forward rapidly, with the recovery in the market, the company said.
Pharma stocks gained. Cipla (up 0.38%) and Sun Pharmaceutical Industries (up 0.2%) gained.
Lupin rose 1.36% on strong Q2 result. The company's consolidated net profit rose 39.8% to Rs 406.20 crore on 16% growth in total revenue to Rs 2667.90 crore in Q2 September 2013 over Q2 September 2012. Operating profit rose 27.8% to Rs 659.60 crore in Q2 September 2013 over Q2 September 2012. Operating profit margin edged up to 24.7% in Q2 September 2013, from 22.42% in Q2 September 2012. The company announced Q2 result during market hours.
Revenue expenditure on R&D for Q2 September 2013 stood at Rs 217.20 crore or 8.3% of net sales, as against Rs 93.50 crore or 4.2% of net sales in Q2 September 2012.
Operating working capital increased to Rs 2674.30 crore as on 30 September 2013, from Rs 2516 crore as on 30 June 2013. The working capital number of days stood at 96 days as on 30 September 2013, compared with 94 days as on 30 June 2013. Debt equity ratio stood at 0.06 as on 30 September 2013.
Commenting on the results, Nilesh Gupta, Managing Director, Lupin, said: Despite challenges in markets like India, we have had a good first half, driven by strong business growth from markets like US and improved operational efficiencies. Our growth story continues. This consistent performance has led to a sustained EBIDTA and PAT improvement.
Dr Reddy's Laboratories rose 4.21% to Rs 2,531 after hitting record high of Rs 2,540 in intraday trade. The company announces Q2 results tomorrow, 31 October 2013.
Ranbaxy Laboratories rose 2.68%, with the stock reversing intraday losses triggered by the company reporting net loss in Q3 September 2013 after trading hours on Tuesday, 29 October 2013. The company after market hours on Tuesday, 29 October 2013 reported consolidated net loss of Rs 454.16 crore in Q3 September 2013, compared with net profit of Rs 754.17 crore in Q3 September 2012. Total income increased 1.92% to Rs 2827.73 crore in Q3 September 2013 over Q3 September 2012.
Ranbaxy Laboratories said that the depreciation of the rupee against the dollar, though favourable to Ranbaxy's export business had an adverse impact on the company mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a charge of Rs 360 crore during Q3 September 2013 on account of foreign exchange fluctuations, Ranbaxy said. The company made a provision for Mohali stock write-off and other costs amounting to Rs 70 crore.
Ranbaxy said that its base business sales in Q3 September 2013 continued to grow over the corresponding period of the previous year. Ranbaxy's global sales rose 2.99% to Rs 2750 crore in Q3 September 2013 over Q3 September 2012. The growth in sales was impacted adversely by the new pricing policy and trade concerns in India and the absence of any post exclusivity sales during the quarter, Ranbaxy said.
Commenting on the business results for the quarter, Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy, said: The company continues to grow in its focus branded markets in Asia, East Europe, CIS and Africa. In India, however, the announcement of the pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions. We are confident that we will satisfactorily address the increasing standards of quality and manufacturing processes to uphold the high level of trust that our doctors, patients, regulators and other stakeholders expect from us.
The board of directors of the company has decided to change the financial year of the company as April to March effective 1 April 2014. In view of this, the current financial year will be for a period of 15 months i.e. January 2013 to March 2014.
Ranbaxy said it expects to achieve sales of Rs 13000 crore to Rs 13500 crore for 15 months period ending 31 March 2014. This does not consider any sales accruing from FTFs which shall be accounted for as they materialize.
Bharti Airtel surged 5.22% after reporting Q2 result. The company's consolidated net profit declined 29% to Rs 512 crore on 9.9% increase in total revenue to Rs 21324 crore in Q2 September 2013 over Q2 September 2012. The company announced the result during market hours.
Bharti Airtel's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 15.1% to Rs 6832 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin increased to 32% in Q2 September 2013 from 30.6% in Q2 September 2012.
The company said its mobile internet revenues grew more than 100% to Rs 1503 crore in Q2 September 2013 over Q2 September 2012 (year-on-year), accounting for 39.1% of the overall incremental revenue. Revenues were also enhanced by strong growths of 28.8% in Digital TV, 20.8% in airtel business (B2B), and 54.4% in South Asia.
Mobile voice realisation in India improved by 1.31 paise on a year-on-year (Y-o-Y) basis (36.74 paise in Q2 September 2013 vs 35.43 paise in Q2 September 2012), together with an increase in voice usage per customer by 20 minutes per month (up from 417 minutes in Q2 September 2012 to 437 minutes per subscriber in Q2 September 2013). Data usage per customer has gone up by 98 megabytes (MBs) (from 133 MBs in Q2 September 2012 to 231 MBs per customer in Q2 September 2013). Consequently, ARPU has moved up by Rs 15 to Rs 192 in Q2 September 2013.
International revenues grew by 17.9% Y-o-Y and 18.3% quarter-on-quarter (Q-o-Q) in rupee terms with Africa growing by 16.1% Y-o-Y & 18.5% Q-o-Q while South Asia grew by 54.4% Y-o-Y and 16% Q-o-Q. Africa revenue in constant dollar terms grew by 5.4% on sequential quarter basis led by a strong 28.2% increase in data revenues.
Mobile voice pricing in Africa remained stable at 3.30 cents per minute. Net revenue in Africa (after interconnect costs and cost of goods sold) has grown by 20.7% Y-o-Y in rupee terms.
Consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) grew by 15.1% Y-o-Y at Rs 6832 crore with margin expanding to 32% from 30.6% in the corresponding quarter last year, driven by India EBITDA margin improvement from 32.6% to 34.8%.
The much improved operational performance is reflected in earnings before interest and taxes (EBIT) of Rs 2893 crore, representing a 28.7% Y-o-Y growth and 2% EBIT margin improvement.
The continued depreciation of the Indian rupee has resulted in forex restatement and derivative losses of Rs 342 crore (vs. Rs 25 crore loss for Q2 September 2012). Consequently, the consolidated net income came in at Rs 512 crore, as against Rs 721 crore in the corresponding quarter last year. Consolidated Operating Free Cash Flows for the quarter were at Rs 4693 crore, reflecting a robust growth of 117.1% Y-o-Y.
The company's consolidated net debt has reduced to $9697 million resulting in the net debt to EBITDA ratio (USD terms) improving to 2.18 times as compared to 2.59 times at the end of the same quarter last year.
In a statement, Mr. Sunil Bharti Mittal, Chairman, Bharti Airtel, said: Mobile internet is now a major engine of growth for Airtel across all geographies. Our sustained investment in this segment will further enhance customer experience and seamless coverage. The revenue growth in Africa reflects the inherent potential in the world's most promising continent. I am also pleased to see the evolution of Airtel Money into a significant service in geographies which are relatively under-banked.
Havells India jumped 7.24% after net profit surged 44.55% to Rs 125.72 crore on 22.31% growth in total income to Rs 1181.76 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 30 October 2013.
LIC Housing Finance rose 5.32% after net profit surged 27.57% to Rs 310.07 crore on 23.66% growth in total income to Rs 2302.41 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 30 October 2013.
Shriram Transport Finance Company jumped 7.83%, with the stock extending Tuesday's 2.78% gains. The company's consolidated net profit fell 2.93% to Rs 351.93 crore on 23.14% increase in total income to Rs 2103.67 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours on Tuesday, 29 October 2013.
Realty stocks extended Tuesday's gains as the Reserve Bank of India (RBI) after a monetary policy review on Tuesday, 29 October 2013, raised its main lending rate viz. the repo rate by 25 basis points as expected. Purchases of both residential and commercial property are largely driven by finance. D B Realty (up 3.23%), Indiabulls Real Estate (up 0.32%), Oberoi Realty (up 1.94%) and Sobha Developers (up 2.33%) gained. But, Unitech fell 0.86%.
DLF shed 0.63% ahead of its Q2 result today, 30 October 2013.
Tata Communications surged 10.26% after the company reported turnaround Q2 September 2013 result. The company reported consolidated net profit of Rs 80.36 crore in Q2 September 2013 compared with net loss of Rs 274.24 crore in Q2 September 2012. The result was announced after market hours on Tuesday, 29 October 2013.
Tata Communications' consolidated net sales rose 16% to Rs 4952.61 crore in Q2 September 2013 over Q2 September 2012.
The company said growth in Q2 September 2013 was mainly attributed to the global increase in demand across all segments. Tata Communications' wholesale voice business continues to outpace the global market growth rate. Revenues from enterprises increased by 29% year-on-year (YoY). Operating income and margin were positively impacted by Tata Communications' continued focus on cost-management.
Gross revenues for the core business improved by 17% at Rs 4418.70 crore in Q2 September 2013 over Q2 September 2012.
Global Voice Services (GVS) continued on its growth path with a total of 15.4 billion minutes carried on the network in Q2 September 2013, up from 15.2 billion minutes in Q2 September 2012. GVS net revenues showed a 30% improvement in Q2 September 2013 over Q2 September 2012. Gross revenues for Global Data Services (GDS) also saw an upswing with a revenue growth of 19% at Rs 1989.70 crore in Q2 September 2013 over Q2 September 2012.
The start-up business, comprising primarily of Neotel, witnessed a 10% rise in revenues at Rs 533.90 crore in Q2 September 2013 over Q2 September 2012. The start-up business' EBITDA margins stood at 24.9% in Q2 September 2013 against 10.6% in Q2 September 2012. In local currency (ZAR) terms, Neotel's Q2 FY14 revenues improved by 18% YoY.
Talwalkars Better Value Fitness rose 0.96% on good Q2 result. The company's consolidated net profit rose 21.28% to Rs 14.76 crore on 24.27% increase in total income from operations to Rs 62.37 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Tuesday, 29 October 2013.
Jubilant Life Sciences rose 2.88% after the company issued a strong outlook for second half of the year ending March 2014. The company issued the outlook after announcing Q2 September 2013 results after market hours on Tuesday, 29 October 2013.
On a consolidated basis, the company reported a net loss of Rs 81 crore in Q2 September 2013 compared with net profit of Rs 152 crore in Q2 September 2012.
The company reported an exceptional loss of Rs 150 crore in Q2 September 2013 compared with an exceptional gain of Rs 47 crore in Q2 September 2012.
Profit after interest, but before exceptional items, fell 16% to Rs 123 crore in Q2 September 2013 over Q2 September 2012.
EBITDA (earnings before interest, taxation, depreciation and amortization), including other income, fell 1% to Rs 276 crore in Q2 September 2013 over Q2 September 2012.
The company's total income from operations rose 17% to Rs 1436 crore in Q2 September 2013 over Q2 September 2012. Jubilant Life Sciences said revenue growth was driven by volume growth in both, pharmaceutical and life science industry (LSI), segments.
In Q2 September 2013, income from operations of the pharma business stood at Rs 691 crore, showing growth of 6% in Q2 September 2013 over Q2 September 2012 and contributing 48% to the revenue mix in Q2 September 2013.
In Q2 September 2013, income from operations for the LSI segment was at Rs 744 crore, thus improving by 30% in Q2 September 2013 over Q2 September 2012 and having 52% of share in total revenues in Q2 September 2013.
In its outlook, Jubilant Life Sciences said the revenue and EBITDA are expected to continue the uptrend and meet the growth targets set for the fiscal year ending March 2014 (FY 2014). This is on account of improved capacity utilisations in sterile injectables and OCL, nutrition ingredients, Symtet and 3CP and backward integration of Pyridine and expansion to newer markets. The company said it expects the price uptrend in Pyridine and nutrition ingredients to continue. The company has a strong pipeline in APIs and Solid Dosage Formulations. It expects new product launches, expansion in newer geographies and robust order book in sterile injectables to improve outlook in second half (H2) of FY 2014, which it expects to be better than first half (H1) of FY 2014.
Commenting on the company's performance, Shyam S Bhartia, chairman & managing director and Hari S Bhartia, co-chairman & managing director, Jubilant Life Sciences said: Our performance is shaped by good volumes traction in Q2 FY2014. Growth will accelerate in H2 on the back of product launches under Solid Dosage Formulations, scale up in Speciality Pharmaceuticals and volume uptick visible in Vitamins and Acetyl businesses due to higher capacity utilisation levels. FY 2014 will be marked by a strong business performance from all key business verticals and the restructuring initiative aimed at de-leveraging the balance sheet, which will drive a focussed reduction in debt.
Jai Corp surged 4.96% after Q2 result. The company's net profit rose 9.1% to Rs 23.39 crore on 2.2% growth in net sales to Rs 171.24 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Tuesday, 29 October 2013. Jai Corp's board of directors at a meeting held on Tuesday, 29 October 2013, decided to redeem 3.75 lakh fully paid-up 1% non-cumulative, non-participating redeemable preference shares.
Symphony jumped 7.7% on strong Q1 result. The company's net profit galloped 598.5% to Rs 14.32 crore on 196.5% growth in net sales to Rs 72.08 crore in Q1 September 2013 over Q1 September 2012. The Q1 result was announced after market hours on Tuesday, 29 October 2013.
In the foreign exchange market, the rupee reversed initial losses against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.24, compared with its close of 61.31/32 on Tuesday, 29 October 2013.
European stocks rose on Wednesday, 30 October 2013, extending their gains this month, as investors awaited a US private payrolls report and the outcome of a two-day Federal Reserve policy meeting. Key benchmark indices in France, Germany and UK rose 0.36% to 0.57%.
Businesses and consumers in the euro zone were the most optimistic in over two years in October as better economic conditions lifted the mood for the sixth month running.
Eurostat, the European Union's official statistics agency, said Wednesday its economic sentiment indicator--a gauge of the mood among consumers and businesses--rose to 97.8 in October from 96.9 in September. That is the highest level since August 2011.
Asian stocks rose on Wednesday, 30 October 2013, amid rising company earnings and with the Federal Reserve projected to maintain the pace of its monetary stimulus today. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Indonesia, Singapore, and South Korea rose 0.27% to 2%.
Factory output in South Korea contracted 3.6% last month from a year earlier, after rising 3.3% in August, the government statistician said today.
Trading in US index futures indicated that the Dow could gain 48 points at the opening bell on Wednesday, 30 October 2013. US stocks surged on Tuesday, 29 October 2013, as soft economic data supported expectations the US Federal Reserve will keep its stimulus measures intact for several months. Economic data showed consumer confidence in the US fell and an October 22 report revealed growth in American jobs slowed in September.
The Federal Open Market Committee's (FOMC) two-day policy meeting concludes today, 30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.