Monday, October 13, 2014

Reliance Industries: in refining lies strength The refining business has yet again emerged the saviour for RIL in the September quarter E-mailPrint Pallavi Pengonda Mail Me

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Reliance Industries: in refining lies strength

Reliance Industries: in refining lies strength The refining business has yet again emerged the saviour for RIL in the September quarter Pallavi Pengonda 0 Comments Subscribe to: Daily Newsletter Breaking News Latest News 11:37 AM IST Nearly 7 million Dropbox passwords said to be leaked 11:25 AM IST Powerful earthquake strikes off El Salvador, one dead 10:43 AM IST DLF shares tank 24% after Sebi order 10:31 AM IST Hurricane Gonzalo strengthens, nears British Virgin Islands 10:27 AM IST Sensex pares early gains; DLF, ITC, Hindalco fall Editor's picks RIL net profit up 4.5% on higher refining margins A prize for Jean Tirole CPI inflation falls in September; will RBI act? Government eyes Rs2 trillion from spectrum auction India betters its rank in Global Hunger Index The outlook on the core businesses continues to remain sluggish. The refining environment is expected to remain muted with margins expected to remain under pressure, thanks to lower demand. Photo: Reuters Nobody expected Reliance Industries Ltd’s (RIL’s) September quarter financial results to alter the outlook on the company materially. RIL shares have performed miserably so far this fiscal year. Since 31 March, the shares have risen by just 3%, while the S&P BSE Sensex has risen by as much as 18%. Of course, there are solid reasons for this—the main ones being the delay in gas price hike and the lack of traction in the company’s core businesses. In the quarter ended September, the refining business has yet again emerged the saviour for RIL, boosting the company’s overall performance. Consolidated refining revenue declined by about 6% on a year-on-year basis due to softer crude oil prices and lower crude oil processing. However, the segment reported smart Ebit (earnings before interest and tax) growth of 18.5%. That’s purely because RIL was able to report strong gross refining margin of $8.3 per barrel for the quarter, which is commendable given that Singapore complex refining margin dropped to $4.8 per barrel last quarter. The company’s premium over the regional benchmark widened to $3.5 a barrel compared with $2.5 a barrel in the corresponding period of the previous year, primarily aided by wider crude oil differentials and sourcing advantage, RIL said in a statement. The refining business’s Ebit accounted for the highest segment contribution at 52% for the September quarter in the total performance of the company. The petrochemicals business was the second major contributor. The oil and gas Ebit declined by 14.4% on a year-on-year basis on account of weak performance on the domestic front and weak prices for the US shale gas segment. The petrochemicals business delivered a satisfactory performance with revenue and Ebit declining marginally compared with the year-ago quarter. However, on a sequential basis, the petrochemicals segment showed a remarkable 26.7% improvement led by led by a strong rebound in margins of polymers, fibre intermediates and aromatics. The organized retail business’s Ebit improved, but the contribution from this business remains too small to make a meaningful impact. On an overall basis, RIL managed to report better (sequentially as well as on a year-on-year basis) operating profit margin of 8.9% last quarter. Stand-alone net profit beat estimates. Stand-alone net profit was Rs.5,742 crore, while a poll of Bloomberg analysts pegged the company’s net profit at Rs.5,596.5 crore. So far so good. What next? The outlook on the core businesses continues to remain sluggish. The refining environment is expected to remain muted with margins expected to remain under pressure, thanks to lower demand. For petrochemicals, shareholders would do well to keep a close tab on China, which is an important market, and on global capacity additions in the industry. RIL’s expansion plans are extremely critical for valuations to improve in the coming years. As Barclays Research pointed out in a note on 9 October, “There needs to be smooth execution of its US$14bn downstream expansions, which would drive EPS (earnings per share) growth in FY17-18E. RIL also needs to demonstrate a path for profitable growth in telecoms that would aid EPS post FY20E.” Other than that, careful capital allocation (where RIL has had a strong record for three decades, but a poor one in the last five years) will also be important as value appreciation rests on the premise of strong free cash flow, Barclays added. That will be challenging. But success on those fron

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reliance is to be benificial for the business sector

nagesh dubey

Blow to DLF, barred from capital markets for 3 yrs NEW DELHI/MUMBAI: Stock market regulator Sebi cracked down Monday on India’s biggest realty company DLF by barring six top executives, including promoter-chairman KP Singh, from accessing the securities market for three years, choking its options to raise fresh funds.

The move, linked to disclosure lapses in 2007 when DLF went public and listed on exchanges, is the latest in a series of setbacks for the company credited with building Gurgaon as a corporate and residential hub on the barren Aravallis, just outside the Capital.
“I find that a case of active and deliberate suppression of information to mislead and defraud the investors in the securities market in connection with the issue of shares of DLF in its IPO is clearly made out,” Securities and Exchange Board of India’s whole-time member Rajeev Agarwal said, in his 43-page order.

In 2007, DLF went public in a record-breaking initial public offering of ` 9,187 crore, India’s largest at the time.
The real estate giant has faced a number of problems in recent years, including angry lawsuits by customers upset with project delays and political controversies surrounding the company’s alleged links with Robert Vadra, son-in-law of Congress president Sonia Gandhi, whose party lost power earlier this year.
Responding to the order, the company said, “DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by Sebi. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future.”
NAME-RAJ GAURAV
PGDM 3SEM

Iraq follows Saudi price cuts as Brent slides to four-year low Read more at: http://www.livemint.com/Money/FpCjdTZZd8VUSi4eODF09I/Iraq-follows-Saudi-price-cuts-as-Brent-slides-to-fouryear-l.html?utm_source=copy

Iraq follows Saudi price cuts as Brent slides to four-year

Melbourne/New Delhi: Iraq will sell its Basrah Light crude to Asia at the biggest discount since January 2009 as it follows Saudi Arabia and Iran in cutting prices amid a slump in Brent futures to the lowest in almost four years. Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries (Opec), trimmed the price differentials for supplies to Asia and Europe for November, the country’s State Oil Marketing Co., known as SOMO, said on Monday. Futures slid as much as 3.6% in London to the lowest intraday level since December 2010, and West Texas Intermediate lost 1.8% after tumbling into a bear market last week. The world’s two most-traded oil futures are collapsing as demand growth slows and output expands in the US, Russia and other nations. Opec’s biggest producers are responding by cutting prices, sparking speculation they are ready to compete for market share. Iran last week said it will sell oil to Asia in November at the biggest discount in almost six years, matching cuts by Saudi Arabia. “What’s happening in the market is good for big Middle East customers like us,” said B. Ashok, the chairman of Indian Oil Corp., the country’s largest state-run refiner that counts Iraq as its biggest supplier. “We have to wait and see where prices go in coming months. Usually, they tend to rise a bit in winter.” Brent for November settlement slid as much as $3.21 to $87 a barrel on the London-based ICE Futures Europe exchange and was at $88.93 at 4:09pm Sydney time. The contract closed at $90.05 on 9 October, the lowest since June 2012. Prices have decreased almost 20% this year. Opec meeting WTI for November delivery was at $84.55 a barrel in electronic trading on the New York Mercantile Exchange, down 1.5%. The contract settled at $85.77 on 9 October, the lowest since December 2012. The US benchmark crude was at a discount of $4.28 to Brent. It closed at $4.39 on 10 October. Prices slumped after Opec increased oil supply by the most in almost three years last month. While Societe Generale SA estimates the group needs to reduce output by about 1 million barrels a day, analysts were split last week on whether it will announce a cut at its next gathering in November. Venezuela will seek an extraordinary Opec meeting to address falling prices, the nation’s foreign ministry said in a Twitter post on 10 October. Kuwaiti oil minister Ali Al-Omair said many countries considered the group’s current output quota to be “reasonable and fair” and the country hasn’t received an invitation to any emergency meeting, state news agency Kuna reported on Sunday. Mideast producers “Although it looks like prices have touched their lowest level, they’ll fall a bit more before they are hit by an actual move by Opec,” Will Yun, a commodities analyst at Hyundai Futures Co., said by phone in Seoul. “Countries cutting their official selling prices is one of the factors that’s been driving the prices down in the short term.” Middle East producers including Iran, Iraq and Kuwait almost always follow Saudi Arabia’s lead when deciding whether to raise or lower export prices. The scale of November’s cuts prompted speculation some members are ready for a price war. Iraq set its November Basrah Light crude at $3.15 below the average of Oman and Dubai prices for buyers in Asia, SOMO said in an e-mailed statement. That’s the biggest discount since January 2009 and compares with $2.50 for October. It will sell the crude to Europe at $5.40 below Dated Brent, from $4.75 in October. Prices for US buyers were unchanged. Kirkuk crude will be sold to Europe at a $3.95 discount to Dated Brent, while prices for US buyers will remain at a $2 premium for a fifth month, SOMO said. Market share State-run National Iranian Oil Co. cut its selling prices for buyers in Asia, two people with knowledge of the decision said on 9 October. A week before, Saudi Arabia, the world’s largest oil exporter, reduced the price of Arab Light crude for Asia to the lowest since December 2008. US oil output increased to 8.88 million barrels a day in the week ended 3 October, the most since March 1986, according to the Energy Information Administration. Russia boosted output to 10.61 million barrels a day last month, according to preliminary data from CDU-TEK, part of the energy ministry. The figure, including crude and condensates, is within 0.3% of the post-Soviet record in January. Money managers reduced bets on rising oil prices by the most in five weeks. Speculators lowered net-long positions in WTI by 4.8% in the seven days ended 7 October, according to US Commodity Futures Trading Commission data. Short positions climbed 8%, the most in almost a month. Bloomberg

md.aquil alam

Pgdsm 3^rd semester

Iimt college of management

Iraq follows Saudi price cuts as Brent slides to four-year low

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Sunday, October 12, 2014

IIP shows consumer goods production lower than what it was four years ago Read more at: http://www.livemint.com/Money/HEnDJ4c613kkRrUBH2BSyN/IIP-shows-consumer-goods-production-lower-than-what-it-was-f.html?utm_source=copy

IP shows consumer goods production lower than what it was ago

We all know that investment demand is in poor shape and it will take a lot of time before it picks up.

That is understandable since companies are not going to commit capital expenditure in a hurry when there’s so much excess capacity and a huge mess in sectors such as power and gas and coal.

But the chart shows that even the consumer goods industry is hardly in the pink of health. The Index of Industrial Production (IIP) data for August 2014, released last Friday, showed the consumer goods index falling 6.9% from a year ago.

Part of the slowdown has been attributed to one-off factors, such as the closure of Nokia’s Chennai factory.

But it gets far worse than that. photo The chart shows the consumer goods index came in at 159.9 for August 2014, slightly lower than where it was in November 2009. Of course, the index is not adjusted for seasonal factors, so comparing August with November would not be right.

But, even if we take the consumer goods index for August 2009, we find that the index is only 2.2% higher in August 2014. In other words, if the IIP numbers are correct, growth in consumer goods production between August 2009 and August 2014, or in the last five years, has been all of 2.2%. And the consumer goods index is lower by 2.3% in August 2014 than where it was four years ago,

in August 2010. Either the industrial slowdown is far worse than what it’s made out to be, or there’s something wrong with the IIP numbers.

Comment; The Index of Industrial Production (IIP) data for August 2014, released last Friday, showed the consumer goods index falling 6.9% from a year ago. Ip growth rate is very low in some next because Indian economy growth rate is very low and production rate is veru high because all company make a all product spouse reliance product . petrol. Vegetable ,cloths .sleeper etc. reliance effected other production company sale is low and effected production .

md.aquil alam

pgdm 3rd semester

iimt college of management

source.live mint

IIP shows consumer goods production lower than what it was four years ago

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Cyclone Hudhud: Andhra stays on alert, heavy rain expected

HYDERABAD: A day after a very severe cyclonic storm Hudhud battered the Andhra coast with heavy rain leaving five persons dead, the state government is investing its energy and resources on restoration and relief works even as it remained on alert in view of heavy rainfall warning.

Chief minister Chandrababu Naidu's Cabinet is expected to be in Visakhapatnam as the government focuses on bringing life back to normal in the districts of Visakhapatnam, Srikakulam and Vizianagaram which bore the brunt of the cyclonic fury.

Prime Minister Narendra Modi will visit cyclone-hit Visakhapatnam on Tuesday to take stock of the situation there.

According to the state's revenue (disaster management) department, five persons were killed in the incidents of wall and roof collapses and uprooting of trees in the region, which was pounded by rain and gale winds at speeds ranging from 170 to 180kmph on Sunday.

The deceased included one-year-old P Naga Manoj from the port city of Visakhapatnam.

Railway line was badly damaged in Visakhapatnam, where the airport was also affected as heavy downpour and gusty winds downed hundreds of electric poles, trees and hoardings and blew away light-weight objects and vulnerable roof-tops.

Latest weather bulletin said Hudhud lay centred very close to south Chhattisgarh and adjoining southwest Odisha. It would move north-northwestwards and weaken gradually.

the cyclone hudhud losses atleast RS.10000 crore.

more than 4 lack people evacuted.

jawed eqbal

pgdm 2nd yr

comment :- it is tough situation for all the coastal regions people of north and south parts of the country.i hope it'll gone vanish as soon as possible.

praveen sharma.

comment:- but we have to do something for them ...some contribution of money for them....and....we have to pray for them.
jawed eqbal.

Norms for payments, small banks soon: RBI

STEPPING STONE Once finalised, micro-lenders, telecom players, NBFCs and PSUs would be eligible for licences

MUMBAI: The Reserve Bank of India (RBI) plans to announce the final norms on small and payments banks next month, a move which could eventually widen the number of players in the Indian banking sector.

RBI deputy gover nor SS Mundra, while addressing students of Narsee Monjee Institute of Management in Mumbai, said: “Soon, in a month or so, the RBI will come out with the final guidelines on small and payments banks.”
The central bank had mooted the idea of small banks and payments banks to deepen the financial inclusion process and to get more people under the financial system. It had come out with draft guidelines on the issue and had invited comments by August 28. “We have received comments on the discussion paper, “Mundra said.

Once finalised, these norms would widen the number of players and also make microlenders, telecom players, nonbanking finance companies and public sector companies eligible to apply for licences once RBI invites applications for the same.
Mundra sought to dismiss concerns on profitability for such banks, saying they can earn from a variety of avenues such as charging for transactions and through investments in government bonds. Small banks would provide a whole suite of basic banking products such as deposits and supply of credit, but within a limited scope.
Payments banks would offer a limited range of products such as demand deposits and remittances. They would also have a widespread network of access points particularly in remote areas, either through their own branch network or through business correspondents or through networks provided by others.
Finance minister Ar un Jaitley, in budget speech had said that differentiated banks such as payment banks have been contemplated to meet the needs of small businesses, unorganised sector, low income households, farmers and migrant work force .
NAME-RAJ GAURAV
PGDM 3SEM