Citizens' Issues
MCA to discuss performance issues of MCA21 with CAs, CSs in Mumbai

Officials from the ministry of corporate affairs and Infosys have called a roundtable meeting with CAs, CSs and cost accountants to understand the performance issues with MCA21—the e-filing portal of the ministry

The ministry of corporate affairs (MCA) has organised a meeting in Mumbai with chartered accountants (CAs), company secretaries (CSs) and cost accountants to understand performance issues with its MCA21 portal. The interactive meeting would take place on 6 May 2013 at 2.30pm at the Indian Merchants Chamber (IMC).


As Moneylife has pointed out earlier, MCA21, the e-filing portal of the MCA, has remained unstable after the management of the website was taken over by Infosys from Tata Consultancy Services (TCS) (Read Why can’t Infosys get MCA21, the e-filing system working?)


In order to receive genuine and frank feedback, the MCA through local councils and chapters of CAs, CSs and cost accountants has organised the interactive meeting.


Amardeep Singh Bhatia, joint secretary of the MCA as well as senior officials from the Mumbai region and Infosys would be present at the meeting. After brief remarks by the MCA and Infosys officials, there would be a round table discussion.


Manufacturing activities may gain momentum in coming months, says HSBC survey

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.


Dabur India reports strong Q4 results, confident for FY14, says Nomura

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

  • Revenue growth for the quarter was at 12.3% to Rs15.3 billion. This compares with Nomura’s estimates at Rs15.95 billion and consensus at Rs15.65 billion.
  • EBITDA margins came in at 17% versus Nomura’s forecast of 15.7% and consensus at 16.7%. This was a positive surprise.
  • Net income came in at Rs2.06 billion compared to the brokerage’s forecast of Rs1.94 billion and consensus at Rs1.99 billion.
  • Gross margins are +190bps y-o-y, which is a sportive and similar to the other consumer companies which have reported thus far. This is likely to be a positive across the sector in H1FY14F.



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:

  • Improvement of the distribution platform is now complete and has helped improve the volume growth trajectory. The company expects to benefit from this in the medium term as it helps to improve product mix across stores.
  • Skin care is the most discretionary segment within the HPC (home and personal care) portfolio and should continue to remain sluggish in the near term. This is similar to comments from Hindustan Unilever and shows that there are parts of the portfolio which will continue to be weak in H1FY14.
  • Namaste business has had a disappointing year, but given the changes to the management team, the company appears confident that FY14 will shape up better than FY13. However, this could be more back ended in FY14, so the first couple of quarters could continue to be soft.
  • The management is confident of taking price increases if required. However, given the benign input cost environment, outlook for price increases is more cautious. Management is now looking for price increases to the tune of 2%-3% in FY14, as against its earlier expectation of 4-5%.
  • On gross margins, the company expects c.100-150 bps improvement in FY14 on a y-o-y basis. This is a strong positive as it not only means that the management will have more levers to make investment in A&P, but also shows strong visibility on the input cost environment.
  • CSD channel has not yet returned to normalcy. However, the channel itself has adjusted to lower inventory levels, and going forward, the channel is likely to grow at the same pace as the domestic business but margins will be impacted negatively.
  • A&P to sales ratio is likely to be close to 13%, but as always, this is going to be volatile on a quarterly basis. The management remains confident that 13% level gives enough room to help support their brands in the domestic business.

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.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)