Companies & Sectors
Tata Steel: Improving demand outlook may provide positive trigger

Continued sustenance of strong realisations in the domestic business and improving demand outlook for international business shall provide further positive triggers for Tata Steel, says Nomura

Tata Steel reported improvement in its March quarter results that was led by its domestic operations. Continued sustenance of strong realisations in the domestic business and improving demand outlook for international business shall provide further positive triggers for Tata Steel, says Nomura in a research note.


On a standalone level, Tata Steel's 4Q domestic revenues were at Rs122 billion. Growth was at 13% year-on-year helped by higher sales volume (+6% year-on-year). Nomura said it believes that this was largely on account of higher than expected realisation. Volume at 2.04mnT in 4Q grew by 6% year-on-year. For FY14, volume at 8.52mnT was up 14% year-on-year beating industry volume growth which was flat year-on-year.


Nomura says, domestic realisation at Rs46,966 per tonne is a positive surprise and was the key swing factor for the steelmaker leading to improvement in the operating profit. Realisations grew 5% quarter-on-quarter helped by price increases announced by the company in the past few months.


The strong operating performance translated into a beat at the net level. Standalone net profit at Rs21.2 billion (adjusting for one off loss) was 21% higher than analyst forecasts.


The brownfield Jamshedpur capacity has been fully ramped by end of FY14 which helped in cost efficiency as well as better realisation due to higher flat mix, says the research note.


According to Tata Steel management, debt levels will peak in FY15 once Kalinganagar expansion completes but will taper off in FY16 due to higher cash generation and lower capex. As of end-March 2014, total net debt of the Tata group company stands at Rs673 billion. On deleveraging plans, management noted that it is currently not looking to raise fresh equity rather will focus on increasing internal cash generation (ramp up post completion of Kalinganagar) and sale of non-core assets, Nomura said.



Suiketu Shah

3 years ago

Today Tata Steel feel from 485 to 440.Yr article is right but best to avoid stocks which have operators fooling retail clients and tata companies are among them.Look at tata global beverages .it operates since last 4 yrs only between 120 and 165.

Therer are far better stocks to invest in than Tata stocks.

When lottery email scam turns into murder!

A gang of five, who used to cheat people through lottery email, killed one of their own “aged 15-17 years”. The gang was using the girl's bank account for collecting money. How did the bank allow a minor girl to operate the account? Where were the KYC norms?

With banks becoming 'hyper active' in creating awareness about not to share bank account numbers and passwords with anyone, the criminal minds are, more often, found using 'lottery' route to dupe people. Unfortunately, the loss in such lottery scam messages is not limited to money alone. As the recent incident from Pune points out, these criminals even killed their own accomplice as she wanted to leave the gang.


According to a report from Mid-Day, on 7th May the police found body of 17-year old Rani Singh in a red suitcase abandoned at Talegaon railway station near Pune. Police arrested three people, Rahul Ravindra Barai, Ershan Ali Khureshi and Santosh Jugdar from Mumbai and after the probe found that they, including Rani belonged to a five member gang and were involved in cheating people. "Recently, Singh, the victim who was also a member of the gang, had told them that she planned to leave the group. Angry with her for defecting, the trio killed her on the orders of the gang leader,” the report says.


"The gang of five consisted of the three arrested conmen, the deceased woman, and an absconding accused — the gang leader — who is based in Bangalore. The gang had been cheating people on the pretext of giving them hefty amounts of money through lotteries. They had also created a bank account in Singh’s name, in which they kept their ill-gotten wealth," the report says.


The last two points in this report are serious and need detailed probe by authorities, including the Reserve Bank of India (RBI). As per the cheating through lottery mails is concerned, the RBI as well as Income Tax department, time and again, keep warning people not to fall prey to such emails.


In media reports, the age of Rani is mentioned between 15 and 17 years and this is where it turns more dangerous. Although, there are no restrictions on opening bank account for a minor, the question in this case, is whether the know your customer (KYC) procedure was followed strictly by the bank while opening and monitoring the bank account of Rani Singh? Till recently, the RBI rules did not permit persons below 18 years to operate accounts and only the parent or guardian was entitled to sign cheques or withdrawal slips.


It has been seen in many cases that banks and financial institutions have not been very particular about strict implementation of anti-money laundering (AML) and KYC. The regulator has also shown some leniency in this regard. KYC process in the banks mostly ends with collection of relevant document by the staff at the bank counter and transaction monitoring is assumed to be completed if a customer furnishes his PAN card, which is more of a tax compliance document.


Even the RBI's KYC framework mentions ensuring appropriate customer identification and monitoring transactions of a suspicious nature. The guidelines of RBI on KYC process states that banks should follow ‘risk-based’ approach of KYC process and classify customers into low, medium and high risk. So was this followed in the case of Rani Singh, who had a bank account opened in her name, but is now dead?


Coming back to the lottery mails, almost everyone who has an email account gets an email announcing a 'lottery (you have never heard of) won by you' or some 'rich and wealthy' but troubled individual wanting to move his/ her money to India.


There are plenty of cases where people (unfortunately) continue to believe in such messages and were later found duped. In one of the famous cases, a manager at State Bank of India (SBI) in Andhra Pradesh transferred Rs1.83 crore from his bank account to a Nigerian bank account after the email informed him that he had won Rs2.95 crore.


Last year in January, Delhi police arrested Franklin Idiumo, a Nigerian national, for allegedly cheating people of lakhs of rupees by making them believe that they have won a lottery from RBI. He was apprehended following investigations into complaints about cheating a woman of Rs22 lakh after falsely telling her that she had won a lottery of Rs1.7 crore. He along with his fellow nationals cheated people by creating a fake website of the RBI and sent text messages to people randomly wherein they stated that they have won a large sum of money in a lottery.


People who replied to their messages were asked to deposit a sum of money in an account number they told in exchange of a code that would enable them to facilitate the transfer of the said money in to their account. Further, they told them to deposit more money on one pretext or the other.


There have been some instances in India where Nigerian hackers befriended some locals and used the contact individual’s bank account to siphon off the money sent by victims. But the case of Rani Singh tells us that the danger is looming large near our homes.


If you are a Moneylife reader, you will find plenty of 'red flags' in such message. Most important is the email ID, which may show the name of RBI or any other bank or financial institution, but definitely without the authentic domain, like Second, even if one assumes that all else is true, why on the earth would the RBI offer money to an individual like you? Third, the RBI does not operate, manage or control any lottery schemes or donate money just like that.


Here are some points to keep in mind while identifying fake or fraud messages. The scams are widespread, so governments and websites like, or are giving special attention to this matter, to help potential victims and to catch scamsters. The website of the Nigerian Central Bank has a warning on the home page that says, "If it looks too good to be true, it usually is." The US Secret Service and the British National Criminal Intelligence Service undertake regular investigations and issue regular warnings to people.


And last but the most importantly, there are no free lunches. So if you do not want to dig deep into the emails, then as soon as you read the word 'lottery', delete the message. It may not only save your money, but also your life.



Sankara Narayan

3 years ago

Greed shuts down the brain !
The investigative agencies should be pro active .If a lottery fraud mail is forwarded to them it should be easy for them to investigate by pretending to be the likely victim through a cyber cell.


3 years ago

very informative and useful


3 years ago

Hi, I do not agree with the way you are trying to solve the problem. I may encourage to collect the banking details from offerors' and inform the concerned bank with request to (1)deactivate the debit & credit both based on history of transactions (2) Verify the KYC immediately. RBI can also offer reporting of such bank accounts at its own website from mass public.

That way entire edifice of frauds can be demolished this way.


3 years ago

Hi, I do not agree the way you are proposing to solve the problem. The best way is to be friendly with such offers and collect their entire bank account details and then inform that concerned bank to (1) deactivate the account for debit & credit both(2) recheck the credibility of accountholder immediately based on the transactions.

That way entire edifice of winning lotteries shall be demolished immediately without police intervention.

Stock market likely to be only news-driven post 16th May

If the exit polls are indeed accurate, the market would then begin to focus on the next catalyst. Given that it is a 'hope and expectations' rally, the catalysts at least over the next 4-6 weeks are likely to be news-driven, says Credit Suisse

The broader Indian market is up 17% year-to-date (YTD) in US dollar terms and 12% in rupee terms while Nifty FY15 earnings per share (EPS) is down 1.4%. The price-to-earnings ratio (P/E) re-rating suggests optimism about a future recovery in fundamentals despite the absence of earnings drivers in the near term. Such re-rating driven rallies were caused by flow of funds, about $6 billion in equities YTD and news, says Credit Suisse in a research note.

It says, "Uncertainty on the final election results remains, but beyond 16th May too the market is likely to be news driven. A fundamental turnaround in the investment cycle is several years away, but near-term volatility is likely around some key events".

According to the report, cabinet formation by 19-20th May and portfolios allocation probably by 27-28th May would drive perception of reform potential in economically relevant ministries. The onset of the monsoon may affect sentiment too. The budget would be the first major policy document and would throw light on public sector banks, recapitalisation, real estate investment trust (REIT) , Goods and Services Tax (GST) and Direct Tax Code (DTC) roadmap and govt's priorities, especially for defence, rural development, taxation and subsidies.

"We continue to believe that uncertainty on the final election results remains. But if the exit polls were indeed accurate, the market would then begin to focus on the next catalyst. Given that it is a hope and expectations rally, the catalysts at least over the next 4-6 weeks are likely to be news driven," the report said.

Credit Suisse says, the news flow has indeed been encouraging with exit polls confirming a potential change in government that is considered reformist. The global environment for equities has also been supportive. Equity markets globally, and, in particular, emerging market equities have done well, it adds.


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