Companies & Sectors
Leisure & lifestyle sector records highest sales growth in March 2011

Among the 29 major sectors (out of 49 sectors) tracked by Moneylife, lifestyle & leisure, along with auto components and textiles have recorded the highest sales growth over the same quarter in the previous year

With most of the results of the March quarter of a number of companies already in, Moneylife analysed the aggregate performance of 29 major sectors (out of the total of 49) that we track.

Companies in the lifestyle & leisure sector recorded the highest sales growth in March 2011. So far, 1,214 companies out of 1,300 companies in the Moneylife database have declared quarterly results. Revenues of companies that we include in the lifestyle & leisure sector grew by 41% to Rs13,386 crore.

Top companies in this sector include Jubilant FoodWorks-whose quarter-on-quarter (q-o-q) sales rose 56% to Rs193.69 crore; Titan Industries also reported a good quarterly performance (36% up) to Rs1,777.94 crore; Thomas Cook's sales for the quarter ended March 2011 rose to Rs65.25 crore (up 30%); United Spirits had sales up by 28% to Rs1,617.19 crore.

This level of higher performance has been possible because of the buoyant demand from the consuming masses in the country.

The second-best sectors were auto components and textiles, both notched up 31% rise in q-o-q sales. Among a few of the good performers in the auto components sector, JBM Auto's sales rose by 73% to Rs114.41 crore; Minda Industries' sales rose by 59% to Rs284.24 crore.

TVS Srichakra's sales rose to Rs309.60 crore (up 53%); Sundaram-Clayton saw sales going up to Rs225.69 crore from Rs149.11 crore (up 51%); Bharat Forge witnessed a 46% rise to Rs 821.62 crore. In the textiles sector, some of the good March 2011 quarter sales performances came from Supreme Tex Mart (sales rose to Rs165.46 crore, up 87%); Jindal Cotex's sales rose to Rs87 crore (up 78%), Suryalakshmi Cotton Mills' sales rose to Rs188.20 crore (up 57%); Alok Industries went up by 50% to Rs2,202.90 crore and Welspun Syntex's sales rose to Rs149.92 crore (up 47%).    

Banking sector revenues have gone up by 27% in the March 2011 quarter to Rs1,42,781 crore -an impressive performance from the giant-sized sector. Banks have done well with the mild rise in interest rates till the March quarter, fully reflecting in higher revenues. Yes Bank's revenues rose to Rs1,409.37 crore (up 71%) while Axis Bank's revenues rose to Rs5,817.06 crore (up 48%). Bank of Baroda (March 2011 revenue Rs7,168.65 crore) and Allahabad Bank (Rs3,588.68 crore) both saw revenues rising by 38%. HDFC Bank's revenue rose to Rs6,724.31 crore (up 34%)  

Revenues of the chemicals and refineries sectors have gone up by 27 % each. The refineries sector is again a huge sector, which has grown in an impressive manner-a clear beneficiary from rising global oil prices. Out of the 42 companies in the chemicals sector, some of the good performers were Diamines & Chemicals (sales rose by 107% to Rs23.85 crore); Chemplast Sanmar (up 57% to Rs579.77 crore); Gujarat Fluorochemicals (sales zoomed 45% to Rs459.51 crore); Kanoria Chemicals-sales up by 44% to Rs150.56 crore) and Vinati Organics, sales up 44% (to Rs91.62 crore).

In the refineries sector, all the seven companies Moneylife tracks have had a good March 2011 quarter performance. Chennai Petroleum's sales grew by 89% (to Rs10,310.34 crore); MRPL saw sales growth of 43% (to Rs12,414.43 crore); Essar Oil witnessed sales increase of 27% (to Rs13,356 crore); HPCL's sales were up by 26% to Rs39,892.21 crore, RIL also reported 26% growth in sales to Rs 72,674 crore. Indian Oil's sales rose 26% (to Rs98,722.65 crore) and BPCL sales rose by 20% (to Rs45,271.97 crore).

The laggard in sector-wise performance has been shipping-where revenues were down by 8%. Although the shipping sector could not do well on the sales front, there were some companies which projected good growth. These include Chowgule Steamships (sales up by 60%, to Rs9.08 crore; Bharati Shipyard's sales rose by 25% (to Rs441.34 crore) and Pipavav Shipyard's sales rose by 10% (to Rs261.85 crore).

The other poor performer has been real estate, with just 4% growth across 28 companies in the Moneylife sample. However, Kolte-Patil Developers (sales up 331% to Rs77.32 crore), Godrej Properties (sales up 135% to Rs240.66 crore) and IVRCL Assets & Holdings (sales up 117% to Rs258.21crore) were the top three good performers in terms of sales in this sector.


NHB chief: Slowdown in housing loans in FY11 due to interest rate hike

R V Verma, chairman and managing director, National Housing Bank, says that after growing by about 25% each year over four years, loan demand was 16% in FY11. High property prices also an issue

Mumbai: National Housing Bank (NHB) chairman and managing director R V Verma has said there has been a slowdown in the growth of housing loans due to higher interest rates and rising property prices.

Traditionally, growth in housing finance loans has been about 25% each year, over the past four years, before the slowdown began, he said. “In FY11, the demand grew by about 16% to Rs62,000 crore, which points to a slowdown,” Mr Verma told journalists on the sidelines of the 26th Skoch Summit in Mumbai today.

Even in FY10, when the recovery process began, growth was at about 19%, he said, and he explained that rising interest rates coupled with a jump in property prices had dented loan demand, PTI reports.

In the four years prior to the 2008 crisis, the housing loan portfolio for housing finance companies grew by 25%. In 2009-10, it grew by 19% and in 2010-11 it grew by 16-17 per cent, Mr Verma said.

Warning that he was already getting reports of an inventory pile-up, Mr Verma said demand would go down further if rates were hiked.

The Reserve Bank of India (RBI) raised key interest rates by 50 basis points in May, to battle high inflation, its ninth rate hike since March 2010.


Birla Pacific Medspa IPO opens on 20th June

Issue proceeds are proposed to be used for the capital expenditure towards establishing 55 outlets of Evolve Medspa across various cities

Birla Pacific Medspa is entering capital market with an initial public offering of Rs65.175 crore on 20th June. The price band for the issue has not been fixed yet.

Birla Pacific Medspa Ltd is an India based healthcare provider expertise in cosmetic dermatology, cosmetic & plastic surgery, general & specialist dentistry and maxillo facial prosthesis. Birla Pacific Medspa is a joint venture of Yash Birla Group and Pacific Healthcare.

Issue proceeds are proposed to be used for the capital expenditure towards establishing 55 outlets of Evolve Medspa across various cities and places, with cost of Rs49.50 crore; brand promotion with Rs6 crore; and working capital requirements of Rs70 lakh for running the above centres.

This issue has been assigned the “IPO Grade 2” indicating below average fundamentals by Brickworks Ratings India Pvt Ltd. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE).

Arihant Capital Markets Ltd is the book running lead manager to the issue, which will close on 23rd June.


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