Bharat Forge’s net sales for the September 2011 quarter rose to Rs881.51 crore against Rs700.23 crore
Bharat Forge Ltd said that its net profit for the September 2011 quarter increased to Rs106.40 crore from Rs68.14 crore for the same quarter last fiscal.
In the same period, the company’s net sales rose to Rs881.51 crore against Rs700.23 crore. BN Kalyani, chairman & managing director, said “The derisked business model is facilitating the continuation of the company’s growth trajectory during the year with impressive growth of exports & non auto notwithstanding the slowdown in the Indian automotive sector.”
He added, “The non automotive business continues to do well and witness tremendous traction with good order flow and has reached 40% of the standalone business.”
The brothers may not see eye-to-eye but across most of the schemes, Reliance Mutual Fund is a big investor in RIL. Sadly, it has cost RMF investors dearly
One of the most celebrated cases of sibling rivalry in India has been that of Mukesh and Anil Ambani. The two brothers split the Reliance empire and Anil Ambani came to control Reliance Mutual Funds. However, when it comes to investing, Reliance Mutual Fund has Reliance Industries Ltd (RIL) as one of its top picks. The reason is not sibling love. It is the compulsions of fund investing –though it has meant a significant loss for Reliance Mutual Fund investors.
RIL is among the top 10 holdings in eight of the fund’s 11 schemes. Many of these schemes are doing badly for the last one year. One of the major reasons for such underperformance could be heavy investment in RIL, one of the most underperforming stocks among the index heavyweights. Undeterred, the schemes increased their stakes in RIL in September.
One of the biggest investors in RIL was Reliance Regular Savings Fund (RSF). It has actually included RIL in its portfolio in September as a new entry. Reliance NRI Equity increased its stake too in RIL in September as has Reliance Equity Fund.
The reason for such love for is that RIL is a heavyweight in the benchmarks, but it has been grossly underperforming for over two years since June 2009. It is a top 10 holding of more than 100 fund schemes among a total of 215-odd equity schemes and 57 of the 100 largest schemes. The stock was at Rs1,140 at the end of May 2009, after rising from a low of Rs560 in March to over Rs1,200 in mid-May following the big jump after the general elections. From that point onwards, RIL has wilted, belying its size, profile and new initiatives, to Rs713 in August 2011. In the process, it underperformed the Sensex as its retail initiatives hit several roadblocks and the gas reserves turned out to be hard to exploit. When Sensex was at just 9,700 points Reliance was at Rs760 in March-end 2009. When the Sensex was at 15,800 level at its monthly lowest in August 2011, Reliance had hit Rs714. It moved up sharply in October to almost Rs900.
Fund have been slow to avoid RIL when it underperformed and as we can see Reliance MF has been eager to load up in the stock in September.
This is simply because mutual funds are primarily managed with an objective to “stay as close as possible to the benchmark.” One way not to underperform the benchmark is to be substantially invested in benchmark heavyweights.
The initiative between the two institutions was taken on the back of a regulatory directive to LIC to use ePayments as a mode for making payments to policy holders
Private sector lender ING Vysya Bank (ING) has signed an agreement with Life Insurance Corporation of India for ePayments services for all LIC branches across the country.
ING Vysya Bank (ING) has signed a memorandum of understanding with LIC in this regard, the private lender said in a release issued. The initiative between the two institutions was taken on the back of a regulatory directive to LIC to use ePayments as a mode for making payments to policy holders. ING has made technology one of its core investment areas, as a result of which most of the transaction processing systems and electronic banking delivery channels have been built around evolving domestic payments and clearing systems.
Providing speedy, safe and convenient transaction processing environment has been the focal point of all the technological advancements of the bank, it added.