India Motor Parts & Accessories Ltd, a TVS Group Co, reported a full year net profit of Rs24.79 crore compared to net profit of Rs17.37 crore the previous year. During the period to end-March, the company’s total revenues increased to Rs359.3 crore from Rs301.5 crore. The company is engaged in sales and distribution of automotive spares.
On Monday, India Motor Parts & Accessories shares closed 1.4% down at Rs601 on the Bombay Stock Exchange, while the Sensex ended at 0.6% up at 17,937 points.
RSWM Ltd said it will divest its stake in Bhilwara Energy Ltd (BEL) to two foreign investors as part of its plan to fund its power projects in India and Nepal. This will reduce RSWM’s stake in BEL to 17.4% from 19.5% through divestment of 10.8% stake by BEL for Rs230 crore, it said in a regulatory filing.
BEL will sell its 10.85 stake to two investors Washington-based IFC and India Clean Energy Fund for $50 million ($25 million each by both the parties) taking total foreign investment in the company to 17%.
Other LNJ Bhilwara Group companies, HEG Ltd and RSWM hold 28.9% and 19.5% respectively in BEL before current round of dilution. The balance is held by the promoters directly.
On Monday, RSWM shares gained 6.2% at Rs132 while HEG shares closed 1.1% down at Rs344 on the Bombay Stock Exchange. The Sensex ended at 0.6% up at 17,937 points.
The global research firm has revised its estimate of the Centre’s fiscal deficit to 5% of GDP in FY11 from 6% earlier on the back of a strong economic rebound and substantial gains from asset sales
A strong growth and divestment programme will help the government reduce its fiscal deficit to 5% of India's total economic output this fiscal, lower than projected earlier, reports PTI.
"We are revising our estimate of the central government’s fiscal deficit to 5% of gross domestic product (GDP) in FY11 (year ending March, 2011) from 6% earlier and below the government estimate of 5.5% of GDP," research firm Nomura said today.
"A strong economic rebound and substantial gains from asset sales have reduced the fiscal deficit by much more than we had expected," it added.
Nomura projected India's nominal GDP growth of 16% year-on-year in FY11, much higher than the government's 12.5%.
The government is also looking at raising Rs40,000 crore through disinvestment this fiscal. It has already raised over Rs1.06 lakh crore from the sale of spectrum for third generation (3G) and Broadband Wireless Services (BWA) services.
The research firm also said that one-off expenses on pay arrears and fiscal stimulus are set to fade.
It said that overall economic growth is expected to raise tax buoyancy, as well. "Tax buoyancy (the percentage change in tax revenues divided by the percentage change in GDP) should rise, too; on our estimates, having fallen from 1.5 during 2004-08 to 0.3 in FY10, it is likely to rebound back above 1," Nomura said.
The research firm said that three years after India's fiscal finances began to deteriorate, its fortunes are finally turning around.
It projected that the government is expected to borrow Rs15,000 crore less in the current fiscal.
"We expect gross market borrowings to be reduced by Rs15,000 crore in FY11 to Rs4.4 lakh crore... Further ahead, we expect gross market borrowing of Rs4.5 lakh crore in FY12," Nomura added.