Ashok Leyland margins surprise positively; lower realisation and higher costs severely dent Ambuja’s profitability; ACC margins are at historical lows; TCS delivers best volume growth in 21 quarters; Canara Bank asset quality steady; Hindustan Zinc’s realisations better than expected
ASHOK LEYLAND Q2
Net sales: Rs27.14 billion (expected range Rs24.89 billion-Rs28.35 billion)
Net profit: Rs1.67 billion (expected range Rs1.34 billion-Rs2.09 billion)
CANARA BANK Q2
NII: Rs20.03 billion (expected range Rs17.06 billion-Rs18.2 billion)
Net profit: Rs10.08 billion (expected range Rs6.38 billion-Rs10.36 billion)
HINDUSTAN ZINC Q2
Net sales: Rs22.01 billion (expected range Rs19.93 billion-Rs22.34 billion)
Net profit: Rs9.5 billion (expected range Rs8.64 billion-Rs10.24 billion)
Net sales: Rs16.37 billion (expected range Rs16.60 billion-Rs18.32 billion)
Net profit: Rs1 billion (expected range Rs1.72 billion-Rs2.64 billion)
AMBUJA CEMENTS Q3
Net sales: Rs15.64 billion (expected rangeRs15.50 billion-Rs16.27 billion)
Net profit: Rs1.52 billion (expected rangeRs1.60 billion-Rs2.77 billion)
Net sales: Rs92.86 billion (expected range Rs87.44 billion-Rs89.04 billion)
Net sales: $2 billion (expected range $1.88 billion-$1.93 billion)
Net profit: Rs21.07 billion (expected range Rs19.52 billion-Rs25.90 billion)
(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).
Tokyo: Observing that infrastructure deficit was posing a major constraint to India's growth, prime minister Manmohan Singh today said an outlay of over $1 trillion was envisaged for infrastructure projects during the next Five Year Plan beginning 2012 and invited Japanese firms to play a greater role in this endeavour, reports PTI.
Mr Singh said his government was determined to continue the economic reforms to create a favourable investment environment and facilitate higher capital inflows and push the reform of both direct and indirect taxes with the aim of unifying indirect taxes into a single Goods and Services Tax (GST) in due course.
Addressing a business luncheon attended by top business leaders from India and Japan, he noted that India's growth, which fell to 6.5% in 2008-09 because of the global economic recession, recovered to 7.4% in 2009-10 and is projected to be 8.5% in 2010-11.
He hoped that India will return to 9% growth in 2011-12.
"I am confident that strong fundamentals of the Indian economy will enable us to achieve our objective of double-digit growth in the coming decades," Mr Singh said.
Underlining that he was not underestimating "many challenges" that are faced in achieving such high level of growth, he said "We need to close the infrastructure deficit, especially in the power, transport and communication sectors.
"This is a major constraint on our development and we will give high priority to infrastructure development in the years ahead."
Mr Singh said that India's investment needs will be at least $1 trillion, part of which will come from within but "we expect Japanese companies to also provide their support."
He said during India's next Five Year Plan from 2012 to 2017 "we envisage financial outlays of over one trillion US dollars on infrastructure projects."
Private investment will play a large role in achieving this target, Mr Singh said, while asking Japanese companies to play a much greater role in development of India's economy.
From India, Mukesh Ambani, Reliance Industries (RIL) chairman and managing director; Sunil Bharti Mittal, Bharti CMD; Fortis chairman Malvinder Singh and HDFC chairman Deepak Parekh were among those present at the luncheon.
Suspension of scrips, or delisting them, punishes investors and helps companies who want to ditch their retail shareholders after raising funds from them
After Moneylife wrote earlier about some 1,500 scrips being in suspended animation, even as the Securities and Exchange Board of India (SEBI) is set to tweak the takeover and delisting rules, intermediaries and investors are writing to protest the lack of action.
Suspension of scrips, or delisting them, punishes investors and helps companies who want to ditch their retail shareholders after raising funds from them. Companies merely need to violate the listing rules by refusing to pay the fees or making correct disclosures. Meanwhile, investors are stuck. They continue to pay the annual depository charges and cannot even close the DP account without transferring the shares; re-materialising them involves a further cost on what could be a worthless share.
An intermediary told Moneylife that, at present, of the 1,537 scrips suspended from trading, just 673 companies account for a combined equity capital of Rs14,119 crore. Virendra Jain of Midas Touch Investors Association says that nearly 800 companies file returns regularly. But, in most cases, investors are clueless.
Among the scrips that investors say they are clueless about are: Assambrook Ltd which was suspended on 3 July 2008 where around 8,000 investors, who hold 64% of the equity, are affected. While tea companies are doing well, shareholders of Assambrook are stuck with illiquid stock even though the shares were trading at Rs15 when it was suspended. Two others are: Delhi-based Talbros Engineering and Cochin-based Vysali Pharmaceuticals.
Interestingly, investors have repeatedly taken up this issue with CB Bhave, even when he headed the National Securities Depository Ltd (NSDL), but have not made much headway. One reason may be that most of these scrips are listed on the (older) Bombay Stock Exchange (BSE), whose turnover has steadily shrunk over the past 15 years to just under 4% of the total market, even though it has more than 3,000-odd shares listed on it with negligible trading. Clearly, it is unfair, and expensive, for the BSE to bear the cross for legacy issues. The regulator needs to step in on behalf of investors and make investor protection funds available to pursue these companies, initiate action against directors (one committee had suggested barring them from the boards of all companies) and file winding-up proceedings against the companies. Meanwhile, several investors and intermediaries have innovative ideas to revive trading in these scrips, if only the regulator would listen. One suggestion sent to Moneylife is to transfer these shares to one of the 20 defunct regional bourses which can provide an over-the-counter (OTC) platform to trade the shares and give them liquidity. These would be like the bulletin boards or pink-sheet exchanges that exist abroad, with lower regulatory requirements. Clearly, this and other suggestions need to be examined by the regulator to find a solution.