With the government securities (G-sec) yield remaining at 8.60% on
21st October, corporate bond yields have been similar to those offered a couple of weeks ago. You can expect to get yield of over 10% for AAA rated bonds maturing over the period of six months. Longer-term AAA rated bonds, maturing in next three years, can get a little over 9.5%.
The benchmark 10-year G-sec yield, which sets the tone of the fixed-income market, was on a decline over the last month after it peaked at 8.87% on 23rd September due to the effect of RBI’s mid-quarter credit policy review on 20th September. It hit a low of 8.43% on 10th October and it ended at 8.60% on 21st October. The rupee rallied to a two-month high of 60.92/ US$ on 18th October. It opened at Rs61.71/US$ on 22nd October.
During the September quarter the automaker reported 19% growth in its net profit on increasing sales and new launches in its three-wheeler segment
Atul Auto Ltd, the three-wheeler manufacturer, recorded 19% growth in net profit at Rs73.80 crore in its quarter to end-September compared with Rs62.10 crore a year ago period. Its net sales increased 27% at Rs1,087.20 crore compared with Rs858.40 crore a year ago period.
The automaker said, “The company has achieved highest vehicle sales in any single quarter at 9,576 units with highest ever turnover at Rs1,087.20 crore. Segment-wise company’s goods carrier market stake improved to 16.07%, passenger carrier market stake improved to 5.10%, overall market stake improved to 7.06%, respectively.”
“Atul Auto has defied all market hurdles and is growing consistently. The company launched various variants to its vehicle line, thus by increasing its market share to over 7% from 2% in FY09. Atul Auto has aggressive expansion plans and more variants are to be launched, which will boost the company top line, and being debt free strengthens the bottom-line as well,” said JV Adhia, vice president for finance at Atul Auto.
Atul Auto declared an interim dividend of 40% or Rs4 for FY2014.
On Monday, Atul Auto closed 4% down at Rs234.90 on the BSE, while the benchmark S&P BSE Sensex ended marginally down at 20,570.