FCI signs MoU with National Spot Exchange for wheat sale

Mumbai: The Food Corporation of India (FCI) has signed an agreement with the National Spot Exchange (NSEL) for the sale of wheat under the Open Market Sale Scheme, reports PTI. The agreement, which was signed on Monday, is valid up to 31 March 2011.

The scheme was launched by FCI to sell wheat from its buffer stock to bulk consumers like roller flour mills. This is a kind of market intervention scheme to check wheat prices that could go up during the lean season. During the October-March period, wheat prices usually go up due to lower availability of stock in the physical market.

NSEL has been able to provide a unique pan-India electronic auction platform for large government companies like FCI to sell commodities. Since the prices displayed on the electronic platform are visible across the country, the prices influence the sentiment in the physical market immediately. FCI general manager Subhas Zadoo said, "National Spot Exchange has a robust infrastructure, a transparent and operationally efficient auction and trading platform which enables FCI to reach out to the large number of buyers and connect to the market in a convenient manner."

On the other hand, buyers feel comfortable to buy wheat through the NSEL platform because of operational ease, lower cost of transaction and greater efficiency. FCI said in a statement that due to the lower availability of stock in the physical market during the off season, the proposal for sale of wheat under the open market sale scheme in the period October 2010 to March 2011 is expected to be a success.


BASIX appoints S Ramachandran as country business manager

Micro-finance company Basix Group has appointed S Ramachandran as the country business manager

Hyderabad-based Basix Group, the oldest micro-finance conglomerate, has appointed S Ramachandran as the country business manager (CBM). Mr Ramachandran, until recently, served as the chief financial officer of the group. As Basix' CBM, he will be responsible for the next phase of business growth of the company.

Sajeev Viswanathan, managing director and CEO, Bhartiya Samruddhi Finance, said, "A keen focus on business is very critical to ensure that we meet and exceed our clients' expectations. And, to enhance this focus, I am delighted to appoint S Ramachandran as Basix' CBM." Bhartiya Samruddhi Finance (BSFL) is the flagship company of the Basix Group, and is registered with the Reserve Bank of India (RBI) as a non banking financial company.

Mr Ramachandran will have the geographical responsibility of all business verticals (profit & loss and social performance) across India. Basix has created four zones - east, west, north and south. Mr Ramachandran, a 10-year Basix veteran, has served in various capacities across the organisation.



E V Krishna Murthy

7 years ago

he has been recognised very late.

Earnings analysis: Sintex, Castrol, Exide...

Though net profits have jumped, operating profit growth for the first few companies that have declared results has been a mixed bag

Net sales: Rs 9.2bn (estimated range was Rs 8.2bn - Rs 10.23bn)
Net profit: Rs 1bn (estimated range was Rs 686mn - Rs 1.12bn)

Results were in the middle of the estimated range for sales and on the higher side for profits. Some of the highlights of the results were

  • Better than expected margins (monolithic - 23%, custom moldings - 27% and prefabs - 25%)
  •  An increase in working capital
  •  Good growth in the monolithic business, as expected
  • Earnings upgrades by some brokers (who were on the lower end of the estimate scale)
  •  Cash flows likely to be under pressure. Historically too, Sintex has not generated positive cash flows. However, going by the promoter's plans to take a stake in a 1000MW power plant which they are putitng up, invest in oil and gas exploration, get into construction business, and buy a custom-molding company overseas, cash flows are likely to be tighter than before.
  • Among subsidiaries, Bright Brothers' revenue rose 50% yoy to Rs 660mn and Neif rose 25% to Rs 2.2bn
  • Revenue from water tanks remained stagnant at Rs 440mn
    In the September quarter, Sintex's promoter shareholding went up to 34% from 30% in June-10 and 30% in Sept-09; FII shareholding increased significantly to 33% (29%, 28%); and DII share came down by quite a lot to 14% (18%, 22%).

Net sales: Rs 6.4bn (estimated range Rs 6.4bn - Rs 7.2bn)
Net profit: Rs 1.2bn (estimated range Rs 1.1bn - Rs 1.5bn)

Results were at the lower end of the range for both sales and profits. Here are a few highlights:

  • Volumes fell a little more than expected but net realisations made up for the loss because of the 4% price hike the company took in July.
  • Operating margin dip was a little lower than the expected 500bps due to lower advertisement costs and the higher realisations. Operating margins were at 26%. The automotive segment reported a growth in margins while the industrial segment showed a dip
  • Raw material costs increased 11% qoq

In the September quarter, Castrol's FII shareholding went up to 6.3% from 5.8% in June and 5.2% yoy. However, the DII share came down to 7.3% from 7.8% in June and 8% yoy. Promoter share was steady at 71%.


Net sales: Rs 11.2bn (estimated range Rs 11.4bn - Rs 12.3bn)
Net profit: Rs 1.6 (estimate Rs 1.8bn)

Both net sales and net profit came in at the lower end of the range.

  •  A fall in margins (qoq) was perhaps the most disappointing aspect of the results due to an increase in operating costs; but the management has given a postive guidance and said that margins will improve sequentially from here as capacity constraints ease (new two-wheeler battery facility at Ahmednagar, additional lines at two of its four-wheeler battery facilities commissioned in September). Ebitda margins declined 422bps yoy and 110bps qoq to 22%
  • The lead recycling advantage is not coming through as expected
  •  Qoq decline in revenues was also disappointing
  • As expected, consumer UPS batteries did well, but telecom and OE industrial segments declined
  •  Net cash levels at Rs 7bn
  • Results include high other income at Rs 196m and and exceptional income of Rs 469mn from transfer of leasehold land
  •  Capex spend maintained at Rs 4bn for FY11 -- much higher than the ~Rs 1bn in FY10 -- free cash is expected to dip substantially this year
  • High levels of cash and investment on the balance sheet indicate that QIP money is still largely unused

In the September quarter, Exide's promoter shareholding remained constant at 46%; FII shareholding increased to 15.4% (14% in June-10, 9% Sept-09) and DII share dipped to 16.6% (18%, 20%).


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