NEW DELHI: Corporation BankBSE -6.68 %slipped as much as 7.3 per cent in morning trade on Tuesday, a day after the public sector lender reported a 96 per cent drop in net profit for the quarter ended September 30, as provisions for bad loans, depreciation on investments, increase in cost of deposits and sharp increase in expenses weighed on the bank.
The net profit of the bank for the second quarter decreased to Rs 15.48 crore as against Rs 405.71 crore for the second quarter of the previous fiscal year.
At 11:20 a.m.; Corporation bank was trading 6.8 per cent lower at Rs 278. It has hit a lowof Rs 277.60 and a high of Rs 287.95 in trade today.
Great rural land rush: 3 to 100-fold rise in property prices may not bode well
By M Rajshekhar, ET Bureau | 12 Nov, 2013, 09.32AM IST
Prices
of agricultural land have risen by anywhere between three-fold and
100-fold. This is the beginning of a new phase in India’s agricultural
land markets
For
the longest time, the price of farmland in Vadicherla stayed below Rs
20,000 an acre. Ten years ago, that began to change. "In 2003, an acre
cost Rs 25,000. By 2006-07, it had climbed to Rs 2 lakh," says Byru
Veeraiah, sarpanch of this village in Andhra Pradesh's Mehbubnagar
district."By 2010, an acre cost Rs 3 lakh. And Rs 12 lakh by 2012."
It was a puzzling spike. This village, with 700-odd families, is
nowhere near large cities. Warangal, the nearest large town, is 100 km
away. The Vijayawada-Hyderabad highway is a good 15 km away. No farmland
in the village or its vicinity was being bought by the government or
companies.
Vadicherla is not alone. In 10 years, the price of
an acre in Ramavarapadu, a village next to Vijayawada, has leapt from Rs
7 lakh to Rs 7 crore. Or take Mardi, 15 km off Solapur, Maharashtra.
The price of an acre in this village, says Prakash Arjun Kate, a local,
has "climbed from Rs 20,000-25,000 ten years ago to Rs 10 lakh now."
Ramavarapadu, Vadicherla and Mardi are not isolated instances.
Microstudies and anecdotal information on 68 villages in seven states
gathered by ET suggest a lot of rural India is seeing a similar climb in
farmland prices (See graphic), primarily because of highways, investors
and urbanisation. naresh kumar
pgdm 1st
Britannia Industries rallies over 8% post Q2 results; Top pick in FMCG space
NEW DELHI: Britannia IndustriesBSE 5.50 %
Ltd rallied as much as 8.3 per cent in morning trade on Tuesday, after
the Kolkata based company reported consolidated 65.68 per cent increase
in consolidated net profit at Rs 97.64 crore for the second quarter
ended September 30, 2013.
The company had posted a consolidated net profit of Rs 58.93 crore for the same period previous fiscal.
At 09:45 a.m.; Britannia pared some of the morning gains and was
trading 5.8 per cent higher at Rs 926.85. It has hit a low of Rs 918.15
and a high of Rs 949 in trade today.
According to analysts, Britannia is one of the better stocks in the FMCG space along with ITCBSE 0.58 % given the fact that it has witnessed strong volume growth at a time when most of its peers witnessed muted growth.
"We have been positive on Britannia for last three months as we see the
positive story continuing in the medium term for the company," said
Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas
Lilladher.
Top-line growth was driven by superior product mix
and higher price realizations. Company's net sales increased to Rs
1,740.48 crore in the July-September quarter, up 12.82 per cent from Rs
1,542.67 crore during the same period last year.
"Our positive
stance essentially was based on the fact that the volume growth has been
extremely strong along with pricing power coming back to the company.
The value added products that the company has been launching have been
contributing a higher share of the total revenues and the costs they
have been able to keep them under good control," he added.
Bodke is of the view that FMCG is a sector we continue to remain very
positive and Britannia and ITC remains our top picks in the sector.
Operating profit margins (OPM) rose by 435 bps on a YoY basis to 8.6%
on account of superior mix, better realization and efficient cost
management.
Overall expenses during the quarter stood at Rs
1,615.95 crore, up 8.79 per cent as against Rs 1,485.27 crore in the
corresponding quarter a year ago
jawed eqbal
pgdm 1st yr
How Deepinder Goyal’s Zomato entered into the Rs 1,000-crore club
Zomato,
started in Deepinder Goyal’s home, went into the Rs 1,000-crore club
the day he became a dad. Here’s the story of India’s hottest start-up.
NEW DELHI: On the morning of 29 October, from about 9 am, Deepinder Goyal
sat outside the labour ward in the corridors of the Max Hospital in
Gurgaon, signing on dotted lines that his lawyers pointed him to.
His wife went into early labour the previous night and they had driven
to the hospital. But he couldn't avoid work. His company was closing a
new round of funding and as CEO and founder, his signatures couldn't be done without. So he had asked his colleagues to come to the hospital.
By 10:30 am, his undivided attention was called for inside as his wife
went into labour. At 11:50 am, the 30-yearold engineer held his
firstborn child — Siara, a baby girl — in his arms. At half past noon,
he stepped out and turned his mobile phone back on.
Some
colleagues were waiting with the final set of papers. He placed a bag on
the nurse's counter for want of a table in the corridor and signed off
on a major investment into his company.
The deal valued Zomato, the company he started in his bedroom four years ago, at Rs 1,006 crore ($161 million).
The founders' equity — the stake held by him, his co-founder and some employees — was now worth Rs 328 crore.
That morning, he became a father, and by the reckoning of some — particularly his investors Info Edge and Sequoia Capital — the entrepreneur best positioned to build a formidable global internet company out of India.
Zomato, if you have not used it yet, is a restaurant discovery website
and mobile app. It lists information on restaurants — menus, photos,
reviews curated for credibility and contact info — for 180,500
restaurants in 36 cities. It is currently in 11 countries (including
India) and plans to be in 22 new countries in the next two years. The
current round of funding is meant to bankroll this expansion.
It makes its money from ads restaurants place on their pages. Restaurants advertise with Zomato
because of better targeting. They can pay only to be displayed when
someone is searching for a location — 'Colaba', for instance — and
further narrow it to be displayed only for 'take outs in Colaba'.
Goyal says revenues are now hitting Rs 3 crore each month — on an
average, 35% of revenue is from overseas markets. All the money comes
from the website. They are yet to start monetising the popular mobile
app.
Deepinder Goyal and Pankaj Chaddah started Zomato (Foodiebay, in an earlier avatar)
while still working as consultants at Bain & Co in Delhi. By the
latter half of 2009, the website gained some traction and user feedback was excellent.
Goyal decided to give it a good shot and quit his job the day his wife,
a Mathematics PhD, got a teaching job at Delhi University. Chaddah,
younger to Goyal by two years, followed a few days later.
Even
though they had both attended IIT Delhi (Goyal studied math and computer
science, Chaddah graduated in mechanical engineering), they had only
met at Bain. Both told their parents about their decision to quit only
after actually quitting — that way there was no room for being talked
out of it.
Among Foodiebay's growing throng of users was Sanjeev Bikhchandani, the founder of Naukri.com. He liked the service. His company, Info Edge India Ltd, put in $1 million in seed funding early on, in August 2010. The
company funded Zomato through four subsequent rounds, cumulatively
investing $25.4 million. It now owns a 50.1% stake in Zomato.
Startup valuation is nearly as controversial as the Narendra Modi versus Rahul Gandhi
pitch in an election year. Unsurprisingly, there are some who think
that Zomato's current valuation is completely unjustified. "It's a
completely cuckoo valuation.
An investor who has entered will
be looking to exit at three times the valuation in a few years. Can
Zomato get a valuation of Rs 3,000 crore in a few years? And who would
the buyer be? Yelp? Would Yelp or someone else pay half a billion
dollars for a company that didn't even make $2 million in the latest
fiscal? Perhaps, but only if the greater fool theory holds. I don't
think that's likely though," said Mahesh Murthy, an investor and outspoken critic of sky-high valuations for other tech companies such as Flipkart.
But there is no sure way of valuing a startup and big bets on companies
with little revenue have paid off on occasion. Zomato clocked revenue
of Rs 11.5 crore for the fiscal ended March 2013, up from Rs 2 crore the
previous year. According to Goyal, this year, it is expected to clock
Rs 30-40 crore in sales.
Sensex rangebound ahead of September IIP data; Nifty below 6100
NEW DELHI: The S&P BSE sensex pared most of its early morning gains but was still trading with positive bias on Tuesday ahead of September IIP data which will be out post market hours later today.
Production at factories, mines and utilities in India likely rose 3.6
per cent annually in September, much faster than August's 0.6 per cent
growth, according to ET Now Poll.
However, good factory growth
in September would be welcome news for Asia's third largest economy but
momentum is unlikely to sustain.
October CPI inflations is
likely to come in double digits at 10 per cent as compared to 9.84 per
cent reported in September. However, most economists expect RB to hike
repo rates by 25bps in coming months.
At 10:20 a.m.; the
50-share index was at 6093, up 14 points or 0.24 per cent. It touched a
high of 6,108.70 and a low of 6,078.40 in trade today.
The
S&P BSE Sensex was trading at 20,526, up 28 points or 0.18 per cent.
It touched a high of 20,584.22 and a low of 20,485.74 in trade today.
The S&P BSE Midcap Index was up 0.69 per cent and BSE S&P Smallcap Index edged higher by 0.56 per cent.
Among the sectoral indices, the BSE Metal Index was down 0.96 per cent,
followed by the S&P BSE Auto Index which dropped 0.49 per cent and
the BSE PSU index was trading 0.15 per cent lower.
The BSE Realty index was trading 1.9 per cent higher, followed by the BSE FMCG index which was up 0.7 per cent, BSE Banking index was trading 0.6 per cent higher and the BSE IT index was up 0.5 per cent.
Hindalco (1.8 per cent), Wipro (1.3 per cent), Maruti suzuki 0.97% (1.03 per cent), ITC (0.8 per cent) and HDFC Bank 0.08% (0.75 per cent) were among the major Sensex gainers.
Tata Motors 0.43% (1.9 per cent), Sesa Sterlite (2.2 per cent), JSPL (1.1 per cent), Bharti Airtel 0.02 % (0.7 per cent) and Coal India (1.07 per cent) were among the index losers. Rahul kumar gupta PGDM,1st Year..
India has gone from a ‘must-invest’ to a ‘must-deal-with’ country: PepsiCo's Indra Nooyi
When
asked about reports by Goldman Sachs and others citing perceptions of
Narendra Modi leading BJP to power, she said the company takes all such
commentary coming out of India seriously but corroborates it with
PepsiCo employees on the ground.
NEW DELHI: India has gone from a 'must-invest' to a 'must-deal-with' country, PepsiCo Chairman and CEO Indra Nooyi
said, expressing the ambivalence that many overseas businesses feel
about a country that's been tarnished by allegations of rampant
political corruption, retrospective changes in law, policy reforms
getting stuck and, to top it all off, an economic slump.
Uncertainties in tax policy, poor infrastructure and lack of clarity are among problems facing investors in India.
"'Must invest' means it's a destination and GDP is growing. 'Must deal with' means there are infrastructure issues, the taxation
policy is not clear or transparent. So people are saying, 'Do Ihave to
deal with India?'" India-born Nooyi, who's held the top job at PepsiCo
for seven years, is still betting on the country as one of the company's
strongest markets. PepsiCo has announced an investment of $5.5 billion
in the country through to 2020.
Nooyi, who met Finance MinisterP Chidambaram on Monday, said, "There have been issues in India. No questions about it... Our hope is that the system will right itself."
She refused to be drawn into a discussion about next year's national
election when asked whether a leader of the country should have secular
credentials. "I am not into the political aspect of India, but I just
think India has been a secular democracy forever and all that we want as
investors in India is stability in the country," she said. "How that
stability comes, the Indian voters will decide."
When asked about reports by Goldman Sachs and others citing perceptions of Narendra Modi
leading BJP to power, she said the company takes all such commentary
coming out of India seriously but corroborates it with PepsiCo employees
on the ground.
She also said PepsiCo has always been heard by government officials, whether it was the prime minister, finance minister or Planning Commission,
on issues that the beverage and snacks maker wanted to bring to their
attention. Nooyi also said that India needs to upgrade its
infrastructure by a significant measure to attract investment, besides
becoming a more unified market. "You have to fix the whole system," she
said. "Foreign investment can create the push, but the country has to
create the pull, and if the country gives the pull, you can get lot of
investments."
A 122-page report by European Securities and Markets Authority (ESMA) has noted that the legal authority of Sebi (Securities and Exchange Board of India) has been strengthened and it now has "broad regulatory, licensing, investigation, supervision and enforcement powers".
http://economictimes.indiatimes.com/thumb/msid-25589156,width-310,resizemode-4/sebi-needs-to-step-up-criminal-enforcement-in-markets-esma.jpg "Based on such strong legal framework Sebi has also developed robust regulations for different types of market participants and RSEs (Recognised Stock Exchange)," ESMA said.
ESMA also said that efforts made by Sebi during the last few years to build a strong market surveillance system and separate investigation and enforcement departments have translated into effective enforcement of regulations against unfair trading practices such asmarket manipulation and insider trading.
However, ESMA said: "An important challenge outside of the control of Sebi is criminal enforcement, which needs to be stepped up".
Moreover, the European market regulator said that Sebi faces three main challenges that impact the effectiveness of its regulation on the securities market participants.
These are strengthening the supervision approach towards market intermediaries, improving mechanisms to ensure compliance of issuers with reporting rules and mechanisms to ensure compliance with accounting and auditing norms.
ESMA is an independent EU authority that contributes to safeguarding the stability of the European Union's financial system by ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection.
In September, this year, the Indian market watchdog had reached regulatory cooperation and information exchange pacts with its counterparts in 31 European countries including Germany, France, Spain and Italy. By Shah Mohammad Abdul Qadir PGDM 1St Sem 2013-2015 IIMT College Of Management Greter Noida. UP
NEW DELHI: Corporation BankBSE -6.68 %slipped as much as 7.3 per cent in morning trade on Tuesday, a day after the public sector lender reported a 96 per cent drop in net profit for the quarter ended September 30, as provisions for bad loans, depreciation on investments, increase in cost of deposits and sharp increase in expenses weighed on the bank. 
Goyal decided to give it a good shot and quit his job the day his wife,
a Mathematics PhD, got a teaching job at Delhi University. Chaddah,
younger to Goyal by two years, followed a few days later.
