Citizens' Issues
AP pollution board asks Aurobindo, 11 other pharma units to close plants

The plants named in the APPCB order include two facilities of Aurobindo Pharma, four facilities of Hetero Labs, one each of Cirex Pharmaceuticals, Covalent Laboratories, Divis Pharmaceuticals, Sri Krishna Pharmaceuticals, Innogent Laboratories and SMS Pharma

Hyderabad: The Andhra Pradesh Pollution Control Board has ordered closure of 12 manufacturing units of different pharma companies, including Aurobindo Pharma, around the city for allegedly violating pollution norms, reports PTI.


According to a Board's release, the notices have been issued to the facilities to stop all industrial activities with effect from 23rd July to complete the on-going batches.


"The AP Pollution Control Board has reviewed certain Bulk Drug industries before the Board's Task Force committee meeting on 9 July 2012.


"After detailed discussions, the Board is of the firm opinion that certain industries are violating the orders of Supreme Court of India, Ban Notification issued by the Government of Andhra Pradesh, Appellate Authority order and directions issued by the Board from time to time," the release said.


The facilities named in the order include two facilities of Aurobindo Pharma, four facilities of Hetero Labs, one each of Cirex Pharmaceuticals, Covalent Laboratories, Divis Pharmaceuticals, Sri Krishna Pharmaceuticals and Innogent Laboratories and SMS Pharma.


"Accordingly, the Board vide orders dated 10 July 2012 issued closure orders to the 12 number of Bulk Drug industries located in Medak and Rangareddy District under Water and Air Acts in the interest of protecting public health and environment.


"These industries are also directed to stop all industrial activities with effect from 23 July 2012 to facilitate completion of all on-going batches," it added.


Aurobindo Pharma which has been served notice to shut down its facilities by the APPCB for allegedly violating environmental norms, is mulling to challenge the ecision in Appellate Tribunal, company sources said.


Sensex, Nifty listless: Friday Closing Report

If the Nifty closes above today’s high then we may see some sideways movement


The market which was in the positive till around 2.00pm, slipped into the negative in the second half of trade and settled in the red for the third day. Yesterday we had mentioned that if the Nifty closes strongly below 5,190, we may see a serious downturn setting in. We continue to maintain this stance. However, in case the index manages to close above today’s high, we may see some sideways movement. Today the benchmark moved almost in the same range as yesterday. The National Stock Exchange (NSE) saw a lower volume of 58.25 crore shares.


The market bounced back this morning after a sharp fall on Thursday due to weak dollar guidance by IT major Infosys. IT bellwether TCS, which announced positive first quarter results after the market closed yesterday, shot up 3.5% in early trade this morning. The Nifty opened eight points higher at 5,243 and the Sensex started off at 17,269, up 36 points over its previous close.


Buying interest in blue-chips like HDFC Bank, Cipla, Bharti Airtel and Hero MotoCorp led the market to its intraday high in initial trade itself. At the highs, the Nifty rose to 5,267 and the Sensex climbed to 17,343.


The market pared some gains on profit taking at higher levels amid volatile trade that followed.


The indices expanded their losses in post-noon trade with the benchmarks dipping sharply and entering the negative zone on selling pressure from institutional investors. Falling to the day’s low the Nifty slipped to 5,217 and the Sensex went back to 17,182.


Weak attempts to emerge into the positive were met with resistance as a result of which the market closed marginally lower, and down for the third day. The Nifty settled eight points down at 5,227 and the Sensex fell 19 points to finish at 17,214.


The advance-decline ratio on the NSE was 762:913.


Among the broader indices, the BSE Mid-cap index fell 0.22% and the BSE Mid-cap index shed 0.11%.


BSE Fast Moving Consumer Goods (up 0.22%) and BSE Oil & Gas (up 0.01%) were the only gainers in the sectoral space. BSE Consumer Durables (down 1.63%); BSE Realty (down 1.37%); BSE Metal (down 1.15%); BSE Power (down 0.68%) and BSE IT (down 0.44%) were the main losers.


Hero MotoCorp (up 1.38%); HDFC Bank (up 1.21%); TCS (up 1.10%); ONGC (up 0.92%) and Cipla (up 0.77%) were the top gainers on the Sensex today. The main losers were Jindal Steel (down 3.24%); Hindalco Industries (down 2.11%); Tata Power (down 2.08%); State Bank of India (down 1.69%) and Infosys (down 1.65%).


The top two A Group gainers on the BSE were—Shriram Transport Finance (up 2.31%) and Jain Irrigation (up 2.13%).

The top two A Group losers on the BSE were—Coromandel International (down 4.12%) and Unitech (down 3.56%).


The top two B Group gainers on the BSE were—RS Software (up 19.22%) and Ajcon Global (up 16.77%).

The top two B Group losers on the BSE were—Inventure Growth & Securities (down 19.89%) and Kilburn Chemicals (down 11.07%).


The Nifty was led by Hero MotoCorp (up 1.22%); TCS (up 1.06%); HDFC Bank (up 1.02%); ONGC (up 0.88%) and HCL Technologies (up 0.79%). The top losers on the index were Jindal Steel (down 3.80%); Hindalco Ind (down 2.40%); Tata Power (down 2.18%); SBI (down 1.94%) and Infosys (down 1.83%).


Markets in Asia ended higher as China’s GDP for the June quarter came in at 7.6%, which was in line with market expectations. However, the growth was the slowest in the past three years. Meanwhile, Singapore’s economy contracted 1.1% in the second quarter.


The Shanghai Composite added 0.02%; the Hang Seng rose 0.35%; the Jakarta Composite advanced 0.89%; the KLSE Composite gained 0.05%; the Nikkei 225 was up 0.05%; the Straits Times climbed 0.79% and the KOSPI Composite surged 1.54%. Bucking the trend, the Taiwan Weighted lost 0.37%.


At the time of writing, the key European indices were trading higher in the range of 0.67% to 0.90% and the US stocks futures were in the positive.


Back home, foreign institutional investors were net buyers of stocks totalling Rs268.54 crore on Thursday. On the other hand, domestic institutional investors were net sellers of shares amounting to Rs537.98 crore.


SRF said it has commissioned and capitalized projects at Dahej, Gujarat at a total cost of Rs250 crore. The projects consisting of flexible multipurpose plant for production of fluorochemicals, intermediate specialty plant; and first phase of captive power plant with a capacity of 4 MW at Dahej (Gujarat) have been commissioned and capitalized on 1 July 2012,” SKF said in a filing. The stock jumped 4.06% to close at Rs229.35 on the NSE.


Pipe manufacturing giant Welspun Corp is planning to raise Rs1,000 crore through issue of non-convertible debentures, to repay its debt. The company will use the funds for refinancing of NCD, external commercial borrowings and possible early redemption of foreign currency convertible bonds. The stock declined 0.68% to settle at Rs116.15 on the NSE.


Signet Industries has obtained allocation to supply drip irrigation system to irrigate 5000 hectares of land as first instalment for the year 2012-13 by the Andhra Pradesh government. The stock added 0.08% to close at Rs124.40 on the NSE.


HDFC Bank Q1 net profit up 31% to Rs1,417 crore on robust loan book

HDFC Bank’s net interest margins remained stable during the June quarter, at only 4.3%, underscoring the challenging times ahead for banking industry

HDFC Bank's net profit for Q1 ended 30 June 2012 was Rs1,417.40 crore, 30.6% over the corresponding period last year. Its net interest margin for Q1 2012-13 stood at 4.3%, which was only 10 basis percentage points higher than Q1 2011-12. Net interest income grew by 22.3%, to Rs3,484.10 crore, which is much faster than the growth rate recorded for same period last year. This was mainly driven by loan growth of 21.5%. The bank's capital adequacy ratio for the reporting quarter declined year-on-year (y-o-y) from 16.9% to 15.5%, highlighting a challenging economic climate. However, it has managed to steady its ship.

The current quarter's growth in the bank's total income is in line with its three-quarter historical y-o-y growth trends of 34%. Its net revenues, which grew by 26.3%, y-o-y, stood at Rs3,968 crore. However, its net interest margins remained stable, at only 4.3%, underscoring the challenging times ahead for banking industry. Its operating profit grew by 27%, which is higher than its three-quarter y-o-y operating profit growth rates of 19%. This is despite the current account-savings account (CASA) ratio declining by 310 basis percentage points, y-o-y, to 46% for the current quarter. The bank's return on equity stood at 18%, which is not too bad, while its valuation in terms of market-capitalisation to operating profits stood at 13.24 times.
One of the most important metrics, apart from net interest margins, is the gross non-performing assets (GNPAs). The bank said that the asset quality remained healthy and stable with GNPA at 1% of the gross advances. This has come down when compared to 1.04% when compared to the same quarter last year. Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as on 30 June 2012.

The loan mix of the company was 52:48 towards retail and wholesale segments, respectively. One can see that the retail segment has fallen from 54% recorded for Q1 of 2011-12 fiscal. The high interest rate regime has forced many a consumers to stay away from retail loans. Despite this, half of the bank's revenues came from the retail segment, while wholesale banking chipped little more than a quarter. The bank's revenues from the core activities of the bank, namely fees & commissions, grew by 23.9%, y-o-y, to Rs1,143.30 for the quarter ended 30 June 2012. The bank's overall balance sheet size grew by 25.9% to Rs 3,60,001 crore at the end of June.

As on 30 June 2012, the total number of branches and ATM network stood at 2,564 and 9,709, respectively. The stock closed at Rs585.95 on Bombay Stock Exchange, up 1.05% on the back of the results.




4 years ago


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