Companies & Sectors
Automobile makers begin new fiscal on positive note
Chennai/Kolkata/New Delhi: Indian automotive makers opened the new fiscal with positive sales growth while hoping for a favourable verdict in the apex court over the sale of diesel engine-powered vehicles.
 
India's largest car maker Maruti Suzuki India Ltd logged 13.3 percent rise in its sales volume.
 
The company sold 126,569 units (domestic 117,045 units, exports 9,524 units) in total, as against 111,748 units (domestic 100,709 units, exports 11,039 units) in the corresponding month last year, the company said in a statement.
 
Among car segments, the sales of the mini, compact, super compact and mid-size passenger cars grew only 2.7 percent in April while the company's sales in utility vehicles rose by a whopping 260.4 percent.
 
Maruti Suzuki sold 16,044 units of utility vehicles in April as against 4,452 units in the same month last year.
 
On its part, India's second largest car maker Hyundai Motor India Ltd sold 54,420 units (domestic 42,351 units, exports 12,069 units) last month as against 51,505 units (domestic 38,601 units, exports 12,904 units) during April 2015.
 
According to Rakesh Srivastava, senior vice president for sales and marketing, the company continued its growth momentum, logging 9.7 percent volume growth last month at a time when the industry is facing challenges on rural sales, and sales on diesel vehicles.
 
Similarly Mahindra & Mahindra Ltd. (M&M) logged 14 percent higher sales at 41,856 units last month as against 36,727 units sold in April 2015.
 
President and chief executive Pravin Shah expressed happiness over the growth in sales.
 
He hoped that the apex court would take into account the role of the automotive industry in the industrial growth while deciding on the ban on diesel vehicles in the national capital region (NCR).
 
Commercial vehicle maker VE Commercial Vehicles (VECV) posted 36.5 percent growth in total sales in April at 5,365 units as against 3,930 units sold in the same month last year.
 
The company, a joint venture between Sweden's Volvo Group and Eicher Motors, said Eicher-branded trucks and buses registered total sales of 5,326 units (domestic 4,641 units, exports 685 units) in the last month compared to 3,838 units (3,503 units, exports 335 units) in the corresponding month last year.
 
The company sold 39 units of Volvo trucks last month compared to 92 units in April 2015.
 
Similarly, Ashok Leyland Ltd. said it sold 10,180 units last month up from 8,435 units in April 2015.
 
On the two-wheeler side, Eicher Motors Ltd reported sales of 48,197 units (domestic 47,037 units, exports 1,160 units) up from 33,918 units (domestic 33,118 units, exports 800 units) sold in April 2015.
 
However, two- and three-wheeler maker Bajaj Auto Ltd. went on the reverse gear last month selling 330,109 units down from 336,274 units in April 2015.
 
The company's sales of commercial vehicles last month went down by 24 percent to 38,211 units as against 50,483 units in April 2015.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex may put a rally – Monday closing report
If US and Asian markets stabilise, the bulls might be back
 
We had mentioned in Friday’s closing report that Nifty and Sensex were weak and that the Nifty would have to stay above 7,800 for the bulls to gain strength. The major indices in the Indian stock markets were trading in the red through Monday and closed with losses of 0.5%-0.6% over Friday’s close. The trends of the major indices in Monday’s trading are given in the table below:
 
 
In Monday's trade, buying was observed in basic materials and consumer durables sectors, while selling pressure was seen in banking and telecom sectors. Sector-wise, the S&P BSE basic materials index surged by 1.29% and consumer durables index 1.07%, while banking index dropped by 1.34% and telecom index slipped by 0.80%. 
 
The sentiment was cautious as data showed a slowdown in growth in the Indian manufacturing sector in April 2016, with key indices losing nearly 0.5% for the day. The 100-scrip and 200-scrip indices of the BSE were lower by 0.27% and 0.16%, respectively. The mid-cap index was higher by 1.10% and small-cap stocks were up by 0.39%.
 
With core refining business continuing to do well and the commissioning soon of some major projects in the petrochemicals business, the positive views on Reliance Industries remain unchanged, Citi Research has said in a report. "In addition, Reliance Industries continues to remain material underweight relative to benchmarks for most investor classes -- foreign institutional investors, domestic mutual funds and emerging market funds," the report said. High cash on the balance sheet also raises expectations. 
 
Regarding the launch of Jio 4G services, the report said the delay was on account of the company leaving no stone unturned to ensure that it does not over-promise and under-deliver on a business in which the capital expenditure will top $22 billion. "It now plans to fully integrate Reliance Communication's 800 MHz spectrum before launch -- making Jio the only player with sub-1GHz pan-India LTE (long-term evolution) spectrum). It plans to increase coverage to 90% (from 70%) before launch," the report added. 
 
In the process, however, the report said the company could be testing the patience of investors and eroding its first mover advantage. The report said the reward potential from the company remained favourable and any weakness in the coming weeks or months should be seen as a buying opportunity from a 12-month point of view. The converse would be on the success of Jio and ramp-up of core projects. Reliance Industries shares closed at Rs986.30, up 0.38% on the BSE.
 
Automaker Mahindra & Mahindra Ltd (M&M) on Monday said it closed last month with sales of 41,863 vehicles. In a regulatory filing at BSE, the company said it sold 41,856 units in April 2016 as against 36,727 units sold in the same month of 2015 -- a growth of about 14%. President and chief executive Pravin Shah expressed happiness over the growth in sales. He hoped the apex court would take into account the role of the automotive industry in the industrial growth while deciding on the ban on diesel vehicles in the national capital region (NCR). Mahindra & Mahindra shares closed at Rs1,335.75, up 0.30% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The back-to-back rally in the Yen has dragged the Asian market, while European markets were mixed due to the volatility in crude prices.
 
 
 

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What is the truth about RBI's top 10 defaulters list?
The bank defaulters' list published by Newslaundry has names of defunct companies. There is also no mention of big defaulters like Winsome Diamonds, Electrotherm, Sterling Biotech and S Kumars Nationwide. Is the list an old one?
 
News portal Newslaundry.com has published top 10 names from what it called as Reserve Bank of India (RBI)'s defaulters' list. However, except three, rest of companies are either closed, or in the process of winding up. One company, Lloyds Steel, has been taken over by Uttam Galva group. Besides, there are many new major defaulters which are not there in this list. A businessmen who is in the know, wonders whether the list with top 10 defaulter's name is really the latest one or old one, possibly from 2002-03?
 
In 2014, All India Bank Employees' Association (AIBEA) released a list of 406 bank loan accounts amounting to Rs70,300 crore that have been declared bad. The bank union pointed out that the top four bad loan accounts add up to a massive Rs22,666 crore, which include Kingfisher Airlines and Winsome Diamond and Jewellery Co. 
 
As per AIBEA list, as on 2014, Vijay Mallya-owned and now defunct Kingfisher Airlines was the biggest defaulter and owe Rs2,673 crore to public sector banks (PSBs). Mumbai-based Winsome Diamond and Jewellery Company (erstwhile Su-Raj Diamond India Ltd), with dues of Rs2,660 crore, was the second highest defaulter, followed by Electrotherm India Ltd at Rs2,211 crore. Some of the other big-ticket defaulters include, Zoom Developers Pvt Ltd (Rs1,810 crore), Sterling Biotech Ltd (Rs1,732 crore), S Kumars Nationwide Ltd (Rs1,692 crore), Surya Vinayak Industries Ltd (Rs1,446 crore), Ispat Alloys Ltd (Rs1,360 crore), Forever Precious Jewellery and Diamonds (Rs1,254 crore), Sterling Oil Resources Ltd (Rs1,197 crore) and Varun Industries Ltd (Rs1,129 crore). (Read: AIBEA demands detailed probe of top 400 bank loan defaults)
 
However, except Kingfisher and Zoom Developers, none other exist in the list accessed and published by Newslaundry.
 
According to the list published by Newslaundry, steel and the metals and mining sector feature prominently on the list of top 10 defaulters. "Of the 10 companies, four are public sector undertakings: Hindustan Cables (Rs4,917 crore), Hindustan Photo Films (Rs3,929 crore), Prag Bosimi (Rs3,558 crore) and Malvika Steel (Rs3,057 crore), which was bought over by SAIL from Usha Group in 2009. Both Hindustan Cables and Hindustan Photo Films are declared terminally sick, and the former may shut down soon," the report says. However, only two of these are really public sector units.  
 
The list also has names of Usha Ispat (Rs16,911 crore), Lloyds Steel (Rs9,478 crore), Prakash Industries (Rs3,665 crore), Zoom Developers (Rs3,843 crore), Cranes Software International (Rs3,580 crore) and Kingfisher (Rs3,529 crore). Many of these are non-functional today raising question on the period of defaults. Malavika Steels and Usha Ispat are long gone. Its promoter was Vinay Rai, who was close to Rajiv Gandhi and had managed to do a mega issue in 1989. Rai, a Sai Baba devotee has since turned into an educationist. His website describes himself as “A philosopher. A philanthropist. A visionary. An educationist.”
 
A banker too suspects that this list is an old one, mostly from before FY2005. "For example," he says, "Lloyds Steel had cleared all its dues and since then it has been taken over by Uttam Galva group in 2012 and renamed the company as Uttam Value Steels, which is a listed entity on the stock exchanges. The wilful defaults on Lloyds Steel was about Rs50 crore from Bank of India, but that also was cleared. Similarly, Prakash Industries has also cleared all its loans and non-performing assets (NPAs)." 
 
Similar views were expressed by Prag Bosimi and Crane Software while replying to Newslaundry report. Prag Bosimi told the website, that the company was still operational, but no longer manufactures textiles. The company also stated that it has settled more than 80% of its liabilities and the rest is under settlement or payment.
 
"Crane Software has also said that they owe Rs649 crore to Indian banks and not Rs3,580 crore, which is the figure suggested by the list Newslaundry has accessed. Cranes asserted that the company has been affected by the global economic slowdown of 2009, but has managed to settle its loans of as much as Rs326.07 crore since then," the report says.
 
Using the list from Newslaundry, even Business Standard has done extensive coverage of the issue. In a report corrected on 27 April 2016, the newspaper had stated that Prag Bosimi had been shut for three years and that it did not owe liabilities to the tune of Rs3,558 crore. 
 
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COMMENTS

Mahesh S Bhatt

7 months ago

Could Indian Banks crash like 2008 in USA? RBI answer.

Mahesh

B. Yerram Raju

7 months ago

'Something is rotten in the State of Denmark'.

The workmen directors - members of the AIBEA have at least been asking from 2012 one good thing - asking the names of defaulters to be declared! It is not known whether as directors they had put in their comments on loan sanctions by the Boards and when these loans came for restructuring under CDR to the Board again. Once their stables are clean they can certainly clean up others and Swatch Banks could emerge ere long.

Suketu Shah

7 months ago

This is the kind of work we have to come to expect of RBI top boss Mr Rajan.

Veeraputhiran Balasubramoniam

7 months ago

Of course this is also an issue but here these people provide job and bread and butter to millions of people across the country.
Where as some thing more serious is the sleeping money of the INDIAN POLITICIANS which runs in lakhs of crores . This is the money need immediate attention. Let the Media and Govt. please do not divert the seriousness of issue. First get back the "BLACK MONEY IN PANAMA AND SWISS " majority are of the politicians.

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