Stocks
Tata Motors posts loss of Rs.430 crore in Q2
Carmaker Tata Motors on Friday posted a net loss of Rs.430 crore for the second quarter of 2015-16, primarily on account of weaker sales in China, foreign exchange revaluation and higher depreciation and amortization expenses in the Jaguar Land Rover business.
 
The net consolidated profit stood at Rs. 3,291 crore during the same quarter of the last fiscal year.
 
With good sales in Britain, Europe and North America helping the company to balance weak sales in China and a growth in the medium-heavy commercial vehicles, it reported consolidated revenues (net of excise) of Rs.61,318 crore as against Rs.60,641 crore for the corresponding quarter last year.
 
Exceptional items for the quarter includes a charge of Rs.2,493 crore in the Jaguar Land Rover businesson account of the vehicles damaged at Tianjin Port explosion.
 
"The process for finalizing an insurance claim may take some months to conclude, so insurance and other potential recoveries will only be recognized in future period when paid or confirmed and have not been recognized in this period," the company said in a statement.
 
For the half-year ended September 30, 2015, the consolidated revenue (net of excise) stood at Rs.1,22,620 crore as against Rs.1,25,169 crore for the corresponding period last year.
 
In the commercial vehicles segment, medium-heavy vehicles registered a volume growth of 35.3 percent and a revenue growth by 20 percent during the quarter under review on the back of the continued replacement demand, moderate pre buying and better profitability of the freight operators.
 
However, light commercial vehicle sales continued to remain weak in the quarter, due to the constrained financing environment and lack of last mile load availability.
 
In the passenger vehicles segment, domestic sales grew 5.2 percent during the July-September quarter as compared to the similar quarter of 2014-15 with the car segment growing by 14.8 percent.
 
The sales (including exports) of commercial and passenger vehicles for the quarter ended September 30 stood at 1,26,690 units showing a decline of 0.4 percent as compared to the corresponding quarter last year.
 
On a standalone basis, the net revenue during the quarter ended September 30 stood at Rs.10,501 crore as compared to Rs.8,752 crore for the corresponding quarter last year.
 
The standalone loss during the quarter was registered at Rs.287 crore as against a loss of Rs.1,107 crore in the year ago period.
 
Retail unit sales of the Jaguar-Land Rover division stood at 110,200 vehicles which earned the company a revenue of 4,831 million pounds as against 4,808 million pounds for the corresponding quarter last year.
 
The division reported a net loss of 92 million pounds during the quarter as against the net profit of 450 million pounds in the corresponding quarter last year.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex may rally a bit – Weekly closing report
Nifty may rise upto 8,100 subject to dips
 
We had mentioned in last week’s closing report that Nifty, Sensex are weak and that while Nifty may bounce back during the week, the rallies will be met by selling until Nifty reclaims 8,200. Over the week, the indices steadily lost ground (though making small losses in each day’s trading). Considering the whole week, the losses have been on the scale of 1%-1.5% in each of the indices. Based on the current cautious mood of the investors, it can be said that the indices are not likely to make big gains immediately next week, even though we expect a small rally. The trends of the major indices in the Indian stock markets are given in the table below:
 
 
A slowdown in manufacturing activity, uncertainty over Bihar election results and heightened chances of a US rate hike depressed the Indian stock markets and the major indices closed lower on Monday. Furthermore, falling Asian markets on the back of weak Chinese factory data caused the Indian indices to a downward trend. 
 
The latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction due to a slower increase in new orders. The PMI was at a 22-month low of 50.7 in October 2015. China's PMI came in at 49.8 in October, unchanged from September, signalling stagnation in manufacturing.
 
On Tuesday, choppy market conditions prevailed, as caution grew over Bihar election results, ongoing results season and heightened chances of a US rate hike. Initially, both the bellwether indices of the Indian equity markets opened in the positive territory. However, both indices ceded their initial gains as caution grew on the heightened chances of a US rate hike. Furthermore, investors were seen anxious about the Bihar election results and ongoing results season. Short covering was observed, as investors exited their investment positions after six consecutive sessions of losses at both the bellwether indices.
 
On Wednesday, caution on quarterly earnings and the likelihood of a US Federal Reserve interest rates hike in December 2015 kept the indices range-bound and to finally close in the red. Positive Chinese macro-economic data and enthusiastic response to Japan Post's initial public offering (IPO) buoyed the Asian markets elsewhere.
 
On Thursday, anxiety over the outcome of the Bihar assembly polls coupled with upcoming US jobs data dented investors' sentiments in the Indian equity markets and led to a sharp correction. The US jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates in its December meeting.
 
On Thursday, in a bid to put some 20,000 tonnes of idle gold to productive use and cut imports worth $35-$45 billion annually, India today launched three schemes related to the metal, including domestically minted coins with the images of Ashok Chakra and Mahatma Gandhi. The schemes launched by Prime Minister Narendra Modi also included one to convert jewellery and other similar yellow metal assets with the people into interest-bearing deposits, as also sovereign bonds with an eight-year tenure but with an exit option after five years. According to the World Gold Council, an estimated 22,000-23,000 tonnes of gold is lying idle with households and institutions in India. The annual imports amount to around 850-1,000 tonnes valued at $35-$45 billion.
 
On Friday, caution was in the air for the investors due to elections in Bihar and a potential interest rate hike from the US Federal Reserve. The major indices in the Indian stock markets were range-bound for most of the day. Nifty closed marginally lower at the end of the day and Bank Nifty marginally higher. The BSE Sensex closed with a small loss of 0.15% over Thursday’s close. 
 

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Uday will help wipe out discoms' losses by 2019: Goyal
Power Minister Piyush Goyal said on Friday that the Ujjwal Discom Assurance Yojana (Uday) approved by the union cabinet will help wipe out the accumulated losses of state electricity distribution companies (discoms) by 2019.
 
"A clear road map has been drawn to solve the present crisis of discoms," he said at the opening of the conference of state power ministers here, while referring to the discoms debt restructuring plan cleared by the cabinet in New Delhi on Thursday.
 
With the losses of electricity distribution companies in India touching a staggering Rs.3.8 trillion ($58 billion), the cabinet on Thursday approved a major restructuring and revival package for the sector, with both checks and incentives, to remove what is considered the weakest link in the government's ambitious plan of power for all by 2022.
 
Announcing the cabinet decision to reporters on Thursday, the minister said the Uday package includes steps to reduce the interest burden of discoms by as much as 600 basis points, by converting 75 percent of their debt into state governments bonds. These bonds, he added, will bear the same interest as that for government securities, plus 50 basis points.
 
Goyal assured the power ministers of states and union territories gathered here that apprehensions regarding the proposed amendments to the Electricity Act would be addressed.
 
Referring to India's renewable energy plan target for installed solar power capacity of 100 gigawatt (GW) by 2022, Goyal said the target could be achieved earlier with cooperation of the states.
 
"I am confident that we can achieve the renewable energy targets, not necessarily six-and-half years from now but possibly even in four-and-half years from now, if we all work together as a team," he said.
 
India has pledged to improve emissions intensity of its gross domestic product by 33-35 percent by 2030 below 2005 levels.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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