The HSBC Purchasing Managers' Index which measures the trends in manufacturing sector every month fell to 51 points in April, the lowest reading recorded since November 2011
Manufacturing activities in India may gain momentum in the coming months, given a pickup in export orders, declining prices and improved operating conditions, a survey by HSBC said today.
Although India’s manufacturing growth rate fell to its lowest in over four years last month, export orders picked up and both input and output inflation eased, as per a monthly Purchasing Manager survey conducted by HSBC India and financial information provider Markit.
Besides, operating conditions in the Indian manufacturing economy improved further during April and there was a modest increase in incoming new work, the survey said.
The slowing growth rate and declining inflation may prompt the central bank to cut the interest rates tomorrow, although there is not “plenty of scope for RBI to slash rates”.
The HSBC Purchasing Managers' Index measures the trends in manufacturing sector every month on the basis of changes in output, new orders, employment, suppliers' delivery times and stocks of purchases. The index fell to 51 points in April, the lowest reading recorded since November 2011.
“Growth in manufacturing continued to slow as domestic orders decelerated and power outages curbed output. On the bright side, new export orders picked up and inflation continued to ease,” it said.
HSBC said that growth needs a boost from further policy reforms and stepped up implementation of infrastructure related investment projects.
Commenting on the survey results, HSBC’s chief economist for India and ASEAN Leif Eskesen said: “Manufacturing activity lost momentum again in April, with output growth slowing further on the back of a deceleration in domestic orders and continued power outages.
“Export orders, on the other hand, picked up. Encouragingly, input and output price inflation eased. With the growth momentum slowing and inflation receding, the RBI is likely to cut the policy rate this week,” he said.
“To add juice to the economy again the reform momentum has to get its second wind and we need to see more implementation of key infrastructure related projects,” HSBC said.
“The latter is likely to gradually happen as some of the investment projects expedited through the investment committee are rolled out,” it said.
FY14F looks poised to be a year of strong profit growth, says Nomura Equity Research in its Quick Note on Dabur India
Dabur India reported solid results for the fourth quarter of FY13, with volume growth of 12%, which was a key positive. Margins improved by 120 basis points (bps), which was ahead of Nomura’s and consensus expectations. The management was confident of delivering robust volume growth and an improvement in margins in FY14F. Q4FY13F results gives confidence that some of the disruptions as a result of the revamp of the distribution system are now firmly behind and FY14F looks poised to be a year of strong profit growth. These observations were made by Nomura Equity Research in its Quick Note on the company’s performance.
Key highlights from Dabur’s Q4FY13 results
In segmental performance, Dabur’s consumer care business revenues rose 13.1% to Rs12.9 billion with margins improving by 10 bps y-o-y. Foods business revenues improved 19.4% with margins down 300bps. The Real brand delivered market share gains.
As per the management’s conference call, post-results:
• Volume growth guidance for FY14F should continue to be 8%-12% as in most years. But for FY14F, management expects to come in at the top end of that guidance, which is a positive.
All those responsible for constructing illegal buildings often get away scot-free and the end user has to pay the price. If at all the government is keen on demolishing illegal buildings, why not start with unsafe buildings first instead of bringing down sound structures, asks Ramesh Prabhu
Hapless settlers evicted with nowhere else to go, living in illegal buildings, thanks to builders who flouted the laws, may become the norm across the Mumbai Metropolitan Region. The residents of the 35 illegal floors at the Campa Cola Compound, situated in upscale Worli in central Mumbai, are a case in point. The Supreme Court on Thursday gave a temporary reprieve to these families and gave them five months to vacate their flats.
However, this would well be the fate of residents of over 40% buildings in Mumbai, who do not have the mandatory occupation certificate (OC) from the BrihanMumbai Municipal Corporation (BMC). “It is reckoned that at least 6,000 buildings across Mumbai are paying double money for municipal water, which means they are not authorised. Many unauthorized structures are routinely regularised on payment of penalties... but there are many more that are not yet regularised for various reasons. Will the axe fall on them also? In addition, why only Mumbai? What about Thane, Mumbra and Ulhasnagar where thousands of unauthorised (and often unsafe) structures are standing—a disaster waiting to happen?” asks Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association (MSWA).
He said, “In all these places, builders have sold the flats, made off with the life savings of crores of families—worth several thousand crore rupees. Dozens of members of Parliament (MPs), members of legislative assembly (MLAs) and corporators from all political parties as well as civic officials are accomplices of these builders.”
Between 1981 and 1989 seven high rise buildings were constructed at the Campa Cola Compound. While the builders have permission to build only five floors, they constructed several floors above. For example, one of the buildings Midtown has 20 floors while Orchid has 17 floors. Needless to say all floors above the permitted five floors are illegal. Unfortunately, it is the buyers of such flats, who have to pay the price for illegality committed by the builder and developer.
“As it happened with the three builders of the seven buildings of Campa Cola Compound, developers perpetrate the crime and usually go scot-free. Thousands of architects and contractors who mastermind such unauthorized buildings will also never be caught. The municipal officials, state government bureaucrats and police officials who turned a blind eye to the goings on are unlikely to be punished,” said Mr Prabhu.
He said, when the comes to for buildings to be demolished, it will be you and me—the common man—who will be running helplessly from pillar to post like the residents of Campa Cola Compound are doing today.
Mr Prabhu admitted there are no easy solutions for the illegal buildings menace and to get rid of all such structures, a major surgery is required across the Mumbai Metropolitan Region.
“However,” he said, “may I humbly urge the state government and legislature to frame a humane policy to deal with unsafe buildings first, before demolishing sound structures like the Campa Cola buildings? May I humbly urge Maharashtra government to avoid shirking its responsibility, and letting municipalities take their own decisions?”
“If a comprehensive and humane ‘demolition policy’ is not framed, a humanitarian crisis looms large before at least 40% of us in the years to come. Until such a policy is framed, I cannot help feeling that we all are Campa Cola building residents, waiting for our houses to be demolished for one reason or another,” the chairman of MSWA added.