According to Nomura, a weak macro environment combined with Jubilant Foodworks’ aggressive expansion plans bode ill for the company's cash generation ability in near term while SSSG remains a cause of concern
Jubilant Foodworks Ltd, the master franchise for Domino's Pizza in India, Nepal, Sri Lanka and Bangladesh, and for Dunkin' Donuts in India, reported 26% growth in its June quarter revenues. However, according to Nomura Financial Advisory and Securities (India) Pvt Ltd slowing same-store-sales-growth (SSSG) remains a cause of concern for Jubilant Foodworks.
"Moreover, with the Dunkin’ expansion picking up steam, we expect the margin pressure to intensify. A weak macro environment combined with the company’s aggressive expansion plans bode ill for its cash generation ability near term, in our view. We maintain our Reduce rating," Nomura said in a report.
During the first quarter to end-June, the food services company reported a net profit of Rs34 crore while its total revenues, including sales, grew 26% to Rs396.5 crore, over same period last year.
Nomura said, EBITDA came in at Rs66.7 crore, against its estimate of Rs68 crore, while EBITDA margin came in at 16.8%, down 140 basis points. Another key negative surprise was a sharp rise in depreciation expenses that rose 54% to Rs17.9 crore.
"SSSG of 6.3% (for Jubilant) is below street estimates of 8%. Given that SSSG has come down from 7.7% in 4QFY13 to 6.3% in first quarter of FY14, the urban consumption slowdown is yet to bottom out, Nomura said.
During the June quarter, network for both Domino’s Pizza and Dunkin’ Donuts has been on growth track with the food services company opening 26 and 4 new restaurants, respectively.
Jubilant Foodworks closed Monday marginally down at Rs1,135.9 on the BSE, while the 30-share Sensex ended marginally up at 19,182.
The CIC recommended ESIC to centrally collect information on important indicators like suspected occupational diseases and display as well as regularly update this on its website. This is the 148th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
The Central Information Commission (CIC), while allowing a complaint, directed the Public Information Officer (PIO) of the Employees State Insurance Corporation (ESIC) under the Ministry of Labour, to provide the information to the appellant. The Bench also directed the PIO to make available data about health of workers in the country on ESIC website as per requirement of Section 4 of the Right to Information (RTI) Act.
While giving this judgement on 28 June 2010, Shailesh Gandhi, the then Central Information Commissioner said, “The Bench under its powers under Section 25(5) of the RTI Act, recommends that ESIC centrally collect information on important indicators like suspected occupational diseases and such other information. These must be put up on the website of the corporation and updated every month.”
Delhi resident Mohit Gupta, on 4 June 2009, sought information about health of workers with suspected occupational diseases throughout the country from the PIO of ESIC. Here is the information he sought and the reply provided by the PIO under the Right to Information (RTI) Act...
1. Region wise list of region wise hazardous industries, along with risks involved and employees working in those units.
PIO's Reply- Not replied.
2. List of workers who have been issued identity cards and information regarding medical facilities that have been extended to them.
PIO's Reply- Not replied.
3. Region wide list of the number of workers that have been registered under El act since 11 July 2008. How many of these workers were medically checked before registration? Kindly provide name of medical practitioners who conducted these medical examinations.
PIO's Reply- Not replied.
4. Information regarding efforts have been made by ESIC for education of employees about Health hazards at work place with a copy of any literature that has been distributed, along with budgetary allocation (year-wise) for this task and the expenditure incurred there on.
PIO's Reply- ESI Corporation does not undertake education of employees about health hazards at work places.
5. The number of suspected cases of occupational diseases that have been found with details about the type of disease, along with a list of workers Occupational Disease centre (ODC) wise. What is the follow-up treatment being provided to these workers? How many of these cases have been referred to Special Medical Board for confirmation and Chief Inspector of factories?
PIO's Reply- Copy of suspected cases was enclosed.
6. The number of the above cases that have been confirmed by Special Medical Board?
PIO's Reply- Not replied.
7. The number of occupational Disease surveillance teams that have been constituted by ESIC, with a list (region wise with date of formation,) along with the list of equipment with these teams and a list of inspections carried out by each team and result of the inspection.
PIO's Reply- There are no occupational disease surveillance team constituted by ESIC.
8. There was a specific instruction to publish ODC data. Information regarding the medium and frequency of such publication along with a copy of each publication
PIO's Reply- There are no specific instructions given by ESIC for publishing QOC data.
9. A copy of the annual calendar region wise for sensitization of employers towards Occupational hazards for 2008-2009 and 2009-2010 along with a copy of any reference material I Literature generated for the purpose.
PIO's Reply- There is no annual calendar for sensitization of employers towards occupational hazards.
10. A list of trainings conducted regarding identification, prevention and treatment of Occupational Disease since July 2008 along with details of attendees.
PIO's Reply- List is enclosed.
11. The number of ODC's that have taken up research on Occupational Health.
PIO's Reply- At present, no research work is being taken by ODCs.
Citing non-supply of information by the PIO, applicant Gupta filed his first appeal. There was no mention of any order from the First Appellate Authority (FAA).
Gupta, then approached the CIC with his second appeal stating unsatisfactory information provided by the PIO and inaction on the part of the FAA.
During the hearing, the PIO stated that some of the information sought by Gupta was not available in centralized manner and have to be obtained from various regional offices across the country.
Gupta, pointed out that that there were following deficiencies in the information provided to him so far:
1- Query-5: the Complainant had sought information and follow-up action taken in the treatment provided to workers suspected to occupational decease.
2- Some of the information provided to the Complainant states that it has been collected from Medical Branch-I. The PIO has informed the Commission that there are six medical branches. The PIO states that though there are six branches only Medical Branch-I deals with Policy Matters and other branches deals with other matters.
He stated, the PIO gave him information that there were 150 cases of suspected occupational diseases throughout the country. Gupta then showed that he received information from West Bengal that says there were close to 250 cases of suspected occupational diseases.
Mr Gandhi, the then CIC, directed the PIO to ask the four occupational diseases centres (ODC) to provide the number of confirmed cases to Gupta. The PIO stated that ESIC does not inform the Chief Inspector of Factories (CIF) about the number of workers with suspected occupational diseases.
Gupta, then showed a circular issued by deputy medical commissioner on 11 July 2008, which states, "Suspected cases and occupational disease cases reported in ODCs should be informed to the Regional Office or referring them to Special Medical Board for confirmation and also to Chief Inspectors of factories as well as the employer in alerting them."
Mr Gandhi said it was apparent that this circular was not being followed at all by ESIC. "It has taken months to provide partial information to the complainant and it is apparent that ESIC with a huge budget does not have data about the health of workers in the country in the centralized manner. It is necessary that this must be available centrally an also made available on it website in discharge of its obligation under Section-4 of the RTI Act," he said.
While allowing the appeal, the Bench directed the PIO to give the information on the two points to Gupta before 20 July 2010. Mr Gandhi also directed the PIO to ensure Section-4 disclosures are displayed on the (ESIC) website before 30 August 2010.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/DS/C/2010/900116/SG/8312
Complaint No. CIC/DS/C/2010/900116/SG
Complainant : Mohit Gupta
Respondent : BD Sharma
Public Information Officer & Director
Employees Estate Insurance Corporation
Ministry of Labour, Government of India
Parchdeep Bhawan, CIG Road,
Nifty has to close above 5,730 for the first sign that the recent downtrend may be over. The rally will be small and weak
Both the Sensex and the Nifty opened marginally higher on Monday. The 30-share Sensex opened at 19,178 while the Nifty-50 opened at 5,682. The NSE saw a volume of 61.49 crore shares.
The monsoon session of Parliament, which began today was adjourned and resumed at noon after a break. India’s upper and lower houses were adjourned this morning after lawmakers from Andhra Pradesh objected to the government’s plan to split the southern state into two.
The HSBC India Composite Output Index, which maps both services and manufacturing activity, fell to 48.4 in July from 50.9 in June, indicating an overall contraction. The HSBC Markit Services Purchasing Managers' Index (PMI) fell to 47.9 in July from 51.7 in the previous month. This is the first time since October 2011, the headline index has fallen below the 50 mark that divides growth from contraction, and the lowest since April 2009. The service sector accounts for nearly 60% of an economy that grew at a decade low of 5% in the last fiscal year.
The indices hit their day’s high in the morning session itself after which it started trending down. It however closed marginally higher. The BSE benchmark Sensex moved in the range of 19,307 and 19,142 and closed at 19,182 (18.24 points or 0.10% up), while the Nifty moved in the range of 5,721 and 5,662 and closed at 5,685 (7.50 points 0.13% up).
Among the major indices Nifty Midcap 50 was the top gainer, which rose 0.76% while the India Vix was the only loser, fell 0.43%.
Among the other indices, the top gainers were Metal (up 2.34%); Media (up 1.96%); PSU Bank (up 1.49%); Dividend Oppt (up 1.08%) and Bank Nifty (up 0.97%). The main losers were Infra (fell 1.47%); Pharma (fell 0.57%); Auto (fell 0.48%); Consumption (fell 0.14%) and PSE (fell 0.08%).
Of the 50 stocks on the Nifty, 31 ended in the in the green. The top gainers were Jindal Steel (up 8.48%); Jaiprakash Associates (up 5.56%); Ambuja Cements (up 5.05%); Sesa Goa (up 4.92%) and Reliance Infrastructure (up 4.23%). The main losers were BHEL (down 19.65%); Asian Paints (down 4.86%); BPCL (down 2.71%); Bharti Airtel (down 2.40%); and Bajaj Auto (down 2.11%).
Financial Technologies (FT) that slumped last week to an almost 9-year low after commodities exchange unit National Spot Exchange Ltd (NSEL) suspended trading in most one-day forward contracts, bounced back after clarification about how it plans to resolve the NSEL crisis. FT closed 30.9% up at Rs197.9 on the BSE. Yesterday, NSEL said that most of its trading members have proposed settling outstanding contracts over several months after the trading suspension. The market remains skeptical about it.
US stocks rose Friday as data showing employers added fewer workers than anticipated in July. It signaled the Federal Reserve will continue its stimulus efforts. The 162,000 increase in payrolls last month was the smallest in four months and followed a revised 188,000 rise in June that was less than initially estimated, Labor Department figures showed on Friday in Washington. Workers spent fewer hours on the job and hourly earnings fell for the first time since October. The unemployment rate dropped to 7.4% from 7.6%.
Most of the Asian indices ended in the positive. Shanghai Composite (up 1.04%) was the top gainer, while Nikkei 225 (fell 1.44%) fell the most.
China's service industries showed the first pick-up in growth since March, adding to signs the world's second-largest economy may be stabilizing after a two-quarter slowdown. The non-manufacturing Purchasing Managers' Index rose to 54.1 in July from 53.9 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said on Saturday. An official gauge of manufacturing released 1 August 2013 showed an unexpected expansion.
In Europe, the results of two surveys on 5 August 2013, showed that UK's economic growth this year is expected to be stronger than originally forecast, and that confidence among smaller firms has picked up.
European indices were trading mostly in the negative and the US Futures too were trading in the red.
Back home, shareholders of Strides Arcolab at their extraordinary general meeting (EGM) approved increase in the FII investment limit in the company. FII's can now invest up to 74% in the company under the portfolio investment scheme. The current FII holding in the company is 52%. The stock rose 5% to close at Rs730 on the NSE.