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.
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.
Though net profits have jumped, operating profit growth for the first few companies that have declared results has been a mixed bag
SINTEX INDUSTRIES (2Q)
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
CASTROL INDIA (Q3)
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:
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%.
EXIDE INDUSTRIES (Q2)
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.
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%).