Companies & Sectors
Competition Commission imposes Rs397 crore penalty on Shree Cement

CCI found 11 cement manufacturers, including Shree Cement Limited and CMA in contravention of the provisions of the Competition Act, 2002. It also asked Shree Cement to refrain from anti-competitive activities in the future

 
New Delhi: The Competition Commission of India (CCI) on Monday imposed a penalty of Rs397.51 crore on Shree Cement Ltd for indulging in restrictive trade practices, reports PTI.
 
The CCI imposed the penalty on Shree Cement while issuing final order in the case against cement manufacturers and their trade body Cement Manufacturers Association (CMA).
 
"The Commission has also imposed a penalty on Shree Cement Ltd at the rate of 0.5 times of its profits for the years 2009-10 and 2010-11 aggregating to Rs397.51 crores," CCI said in a statement.
 
The CCI, it added, "found eleven cement manufacturers, including Shree Cement Limited and CMA in contravention of the provisions of the Competition Act, 2002, which deal with anti-competitive agreements including cartels".
 
It also asked the company to refrain from such anti-competitive activities in the future.
 
With regard to other companies, the CCI said as they were fined earlier, it was not imposing any penalty on them again for the same period of contravention.
 
CCI last month had imposed a whopping Rs6,307 crore fine on 11 leading cement makers, including ACC, Ambuja Cements, UltraTech, India Cements, Binani Cement, JK Cement, Madras Cement, LaFarge and Jaypee Cement. Industry body CMA was also fined with Rs73 lakh.
 
The inquiry, the CCI statement said, was based on a case which was transfered from the Office of the Director General (Investigation & Registration) of the erstwhile Monopolies and Restrictive Trade Practices Commission to the CCI.
 
The MRTP Commission had initiated the investigations on the basis of press reports published in a business daily as well as on a letter of Builders Association of India.
 
When contacted, Shree Cement Managing Director HM Bangur said: "We have not seen the CCI order. Let us first go through the order and then we will decide on the future course of action in consultation with our lawyers".
 
Kolkata-based Shree Cement is present in the cement and power sector. It has cement capacity of 13.5 million tonnes and power capacity of 560 MW. The company's turnover stood at Rs4,625 crore during last fiscal.
 

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Havells India Q1 net profit dips 11% to Rs71.3 crore

Havells said slowdown in Europe and general volatility in Latin America, including Brazil, Argentina and Columbia, have impacted its margins during the June quarter

 
New Delhi: Electrical goods maker Havells India reported 10.5% fall in its consolidated net profit for the quarter ended June 2012 at Rs71.3 crore due to adverse conditions in global markets, reports PTI.
 
The company had posted a net profit of Rs79.7 crore in the corresponding period last year.
 
The consolidated net income during the first quarter, however, grew by 18.9% to Rs1,778 crore from Rs1,496 crore in the year-ago period, Havells India said in a statement.
 
“The slowdown in Europe and general volatility in Latin America, including Brazil, Argentina and Columbia, have impacted margins,” the company said.
 
Havells India said its all business segments performed well during the quarter with improvement in operating cash flows and ratios.
 
“Sales of switchgear division rose 15% to Rs241 crore compared to Rs210 crore achieved in the corresponding quarter of the previous year. The cable and wire division showed a healthy growth of 21% in net sales to Rs431 crore as against Rs356 crore,” it added.
 
Lighting and fixtures segment registered revenues worth Rs150 crore as against Rs121 crore, up 24%. The electrical consumer durables grew by 57% to Rs210 crore from Rs134 crore in the same period last year.
 
Commenting on the numbers, Havells India joint managing director Anil Gupta said: “The current quarter results reflect benefits of our expanding footprint in India in all business segments. We continue to focus on expanding our product portfolio, which offer differentiated value proposition to our customers.”
 

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Upmove to stay: Monday Closing Report

If the Nifty manages to close above 5,258, we may see the upmove sustaining  

The market notched handsome all-round gains, mainly supported by a global rally. The gains, for the second day in a row, came a day ahead of the RBI’s quarterly policy review. On Friday we had mentioned that the Nifty may head higher if the day’s low holds. Today the index managed to make a higher high and higher low. The fall from the high of 5,258 on 19 July to the low of 5,032 on 26 July has been covered up to the extent of around 80% after positive move of today. If the benchmark manages to close above 5,258 we may see the upmove sustaining. The percentage gain on the Sensex (1.81%) and the Nifty (1.96%) has been the highest since 29 June 2012. However, volumes were low—just 53.19 crore shares were traded on the National Stock Exchange (NSE).
 
The market witnessed a gap up opening on positive cues from the Asian bourses, which were in the green in morning trade. Investors across the globe are hoping that central banks in the US and Europe would announce new measures to boost their economies. Similarly, Indian investors await the Reserve Bank of India’s quarterly policy review, scheduled for Tuesday.
 
Meanwhile, the Nifty opened at 5,130, up 30 points over its previous close, and the Sensex started off 80 points higher at 16,919. The opening figures on both benchmarks were their day’s lows.
 
The indices began their upmove with early support from banking and realty sectors. The market was range-bound till noon trade with the benchmarks retaining their early gains. 
 
Across-the-board buying, supported by a green opening of the key European indices, saw the market extending its gains in subsequent trade. Gains in banking  majors like SBI, ICICI and Axis helped the indices gain further momentum.
 
The market hit the day’s high in the last half hour with the Nifty touching 5,207 and the Sensex scaling 17,164. 
 
The benchmarks settled marginally off the highs. At the close, the Nifty gained 100 points (1.96%) to 5,200 and the Sensex surged 304 points (1.81%) to finish trade at 17,144.
 
The advance-decline ratio on the NSE was positive at1064:623.
 
Among the broader indices, the BSE Mid-cap index surged 1.53% and the BSE Small-cap index climbed 1.29%.
 
Today’s rally resulted in all sectoral gauges settling in the positive. The top gainers were BSE Power (up 3.58%); BSE Realty (up 3.13%); BSE Capital Goods (up 3%); BSE Bankex (up 2.67%) and BSE Consumer Durables (up 2.53%).
 
The Sensex was led by State Bank of India (up 4.63%); Tata Motors (up 4.16%); Tata Power (up 4.12%); ICICI Bank (up 3.89%) and BHEL (up 3.82%). The losers on the index were ONGC (down 0.31%); Hindustan Unilever (down 0.02%) and Wipro (down 0.01%).
 
The top two A Group gainers on the BSE were—Suzlon Energy (up 11.37%) and IRB Infrastructure Developers (up 10.71%).
The top two A Group losers on the BSE were—Bharat Electronics (down 6.86%) and Opto Circuits (down 1.67%).
 
The top two B Group gainers on the BSE were—SpiceJet (up 22.42%) and Minaxi Textiles (up 20%).
The top two B Group losers on the BSE were—Murli Industries (down 12.63%) and Nutraplus Products (India) (down 11.38%).
 
The top gainers on the Nifty were Reliance Infrastructure (up 5.54%); Jaiprakash Associates (up 5.23%); Cairn India (up 5.16%); IDFC (up 4.54%) and SBI (up 4.53%). Ambuja Cements (down 1.21%); Hindustan Unilever (down 0.13%); HCL Technologies (down 0.12%) and ONGC (down 0.02%) settled lower on the index.
 
Markets in Asia, with the exception of the Shanghai Composite, closed in the positive on hopes of fresh stimulus to boost sagging economies across the world. The US Federal Reserve is set to hold its two-day meeting from Tuesday while the European Central Bank will hold a policy meeting on Thursday.
 
The Hang Seng jumped 1.61%; the Jakarta Composite rose 0.37%; KLSE Composite gained 0.46%; the Nikkei 225 climbed 0.80%; the Straits Times surged 1.14%; the Seoul Composite advanced 0.80% and the Taiwan Weighted settled 0.48% higher. Bucking the trend, the Shanghai Composite declined 0.89%.
 
At the time of writing, the CAC 40 of France was 0.65% higher, the German DAC gained 0.85% and UK’s FTSE 100 was up by 0.58%. On the hand, US stock futures were in the negative.
 
Back home, foreign institutional investors were net buyers of shares totalling Rs563.73 crore on Friday while domestic institutional investors were net sellers of stocks amounting to Rs254.44 crore.
 
SKS Microfinance has sought shareholders’ approval for shifting the registered office from Andhra Pradesh to Maharashtra. The Hyderabad-based company has served a postal ballot notice to the shareholders in this regard, according to a disclosure to the Bombay Stock Exchange. Citing the AP Microfinance (Regulation of Moneylending) Act, 2010 and subsequent halt to MFI operations in the state, SKS said the proposal to move out of AP was “to explore new areas of business”. The stock jumped 7.25% to close at Rs88.80 on the NSE.
 
Hinduja Group flagship Ashok Leyland is in the process of entering into at least three overseas joint ventures in the next two to three months, as it looks to consolidate its presence in new geographies. The company is in the final stages of inking joint ventures in Indonesia, Chile and Nigeria, keeping the majority holding in each of these partnerships. The stock gained 4.24% to close at Rs22.15 on the NSE.
 

 

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