Indian Hotels Q3 net profit stands at Rs50 crore

Indian Hotels net sales for the quarter ended 31 December 2011 increased 7.44% to Rs521.48 crore

Indian Hotels which operates hotels and resorts under the Taj brand has reported a marginal increase in its net profit at Rs50.48 crore for the third quarter ended 31 December 2011.

The company's net profit was Rs50.29 crore for the corresponding quarter of the last fiscal. In a filing to the Bombay Stock Exchange (BSE), the company said its net sales for the quarter ended 31 December 2011, increased 7.44% to Rs521.48 crore against Rs485.34 crore in the quarter ended 31 December 2010.

During the quarter under review, the company received a confirmation from its insurer of the minimum amount of net assessed insurance claim figure in respect of Taj Mahal Palace, Mumbai, totalling to Rs236.32 crore against the company accrued claim of Rs239.84 crore.

"As on date, the company has received Rs200 crore from the insurance company and balance receivable is Rs36.32 crore which is expected to be received shortly," the filing added.

The company is set to open new hotels under Vivanta brand at Bekal, Coorg and Gurgaon after having set up a new one at Coimbatore.

Indian Hotels closed at Rs64.95 per share on the Bombay Stock Exchange, 2.28% up from the previous close.

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IndiaFirst Life Insurance launches Autolife

Under Autolife, automobile buyers can now not only ensure their family’s happiness about also secure them from future uncertainties of life

IndiaFirst Life Insurance, a joint venture of two public sector banks—Bank of Baroda and Andhra Bank with UK’s leading risk, wealth and investment company Legal & General, has launched ‘Autolife’–a simple process of getting life insurance cover instantly at an affordable cost.

Under Autolife, automobile buyers can now not only ensure their family’s happiness about also secure them from future uncertainties of life. They can now avail the benefits of a life insurance cover at the same time and place as buying their new car and that too at an affordable cost. Autolife is a win-win proposition for all—the customer, dealer and the insurer.  

It does not require any documentation/medicals or waiting period and assures speedy and empathetic settlement of claims. The company has entered into its first tie-up with Varun Motors of Andhra Pradesh to offer life insurance cover to its customers. IndiaFirst Life is planning similar tie-ups at a nationwide level across various untapped segments in the near future so that customers across the country can avail the benefit of a life insurance cover through a simple process.
Varun Motors caters to over 15000 customers every month. They are spread across Andhra Pradesh through 100 centers.

Under its first tie-up for Autolife, customers of Varun Motors (two wheeler/ four wheeler) besides availing vehicle insurance; will also be able to avail a life insurance cover of up to Rs20 lakh at an affordable cost. Customers have the flexibility of selecting from any of the four options - blue, silver, gold or platinum, which will provide life insurance cover of up to Rs3 lakh, Rs5 lakh, Rs10 lakh and Rs20 lakh respectively.   

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HSBC China Consumer Opportunities Fund: More of the same

HSBC plans to launch another Fund of Funds scheme investing in foreign equities— another global fund with no track record

HSBC Mutual Fund plans to launch an open-ended Fund of Funds (FOF) scheme—HSBC China Consumer Opportunities Fund. The scheme would invest 95%-100% in its overseas fund—HSBC Global Investment Funds (HGIF) China Consumer Opportunities Fund. The rest would be invested in money market instruments and units of domestic mutual funds. The investment objective of the underlying fund is to invest for long-term total return in a diversified portfolio of investments in equity and equity equivalent securities of mid to large cap companies around the world, positioned to benefit from the growing middle class and changing consumer behaviour in China. The rationale behind the fund is that the growing population of middle class, gifting culture and liberalisation of tourism are upholding demand for international and local consumer goods. The fund does not have any track record as it has just been launched in September 2011. As on December 2011, the fund had invested in companies of 10 different countries. Around 51.2% of the investments are in stocks of United States, France and Switzerland; just 17% is invested in companies located in Hong Kong and China. Some of the companies in the top ten holdings include: Adidas, Louis Vuitton, Swatch, L’Oreal and Henkel.

This is the third FOF launched by HSBC which invests in its overseas fund. The other two funds are—HSBC Brazil Fund and HSBC Emerging Market Fund. (Read about what we said here: Avoid HSBC Brazil Fund new fund offer , Faith Investing ) There have been many such funds launched in the past by fund companies, inviting Indian investors to park money in their overseas fund. Apparently, most of these overseas funds do not have a long and proven track record of good performance. Moneylife has constantly been writing about such funds in the past years. These funds are pure fads.

We have had similar funds like the recent Mirae Asset India-China Consumption fund, which invests as much as 35% in companies from China and the rest in Indian equities and debt instruments. There are also FOF schemes like JPMorgan JF Greater China Equity Offshore Fund and Mirae Asset China Advantage Fund which invest in funds that primarily invest in companies domiciled in China. Here again, there is no long-term performance available for these funds. In the last two years these funds have returned around 2% whereas the Sensex was down by 2%, but in the last one year the returns have more or less tracked the Sensex.

Even if investing in such a fund tends to diversify one’s portfolio, how much should one plan to allocate to these funds? One needs to study the investment strategy and analyse the portfolio of the foreign fund. It’s clear these funds are not meant for individuals who do not even have a significant portion of his investments in Indian equity funds.

 

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