Q1 results positive, corporates
look forward to good year
What is India News
Service, July 19, 2004, 1700 hrs IST
The net profit of 105 firms went
up by 34 per cent in the first quarter, and corporates have also
recorded an impressive increase in sales.
The aggregate sales of the 105 companies that have announced their results so far jumped 56 per cent year on year, and the net profit increased 34.16 per cent in the first quarter of 2004-05.
In the corresponding quarter of 2003-04, the same companies reported stagnant sales and a 34 per cent rise in net profit.
As expected, lower interest rates and higher sales growth were the main drivers for the growth in the net profit of the companies. The interest burden also declined 17 per cent.
emerges as bulwark: Domestic institutions and foreign institutional investors (FIIs) are swapping roles on the Indian bourses, with the benchmark indices now playing the Life Insurance Corporation of India (LIC) tune.
Far from being the bulk buyers in the markets, FIIs are now bulk sellers. Moreover, their sales are no longer moving the markets.
A reading of the shareholding pattern of the Bombay Stock Exchange (BSE) Sensex stocks for the April-June 2004 quarter indicates that FIIs are no longer calling the shots.
on Dabhol: The United Progressive Alliance (UPA) government is
trying to speed up the restart of the Dabhol Power Company and has
constituted an inter-ministerial group to take stock of litigation
Besides, the finance ministry will soon approach the cabinet to seek
directions on the designated minister, since Finance Minister P
Chidambaram has sought to excuse himself from being the reporting
\93The Cabinet\92s direction is being sought on whether the
financial sops and other licences granted originally to Dabhol Power
Company should be extended to the prospective owners,\94 an official
Officials said the newly formed inter-ministerial group would
comprise officials from the finance, power and law ministries and
would work out a possible course of action for tackling the numerous
arbitration and legal proceedings. The committee might include a
representative from the petroleum ministry also, the officials
in good shape: IF the cash churned out by a business is a sign of its health, then the multinationals operating in India seem to be in pretty good shape.
The free cash flows of the Indian arms of 70 multinationals have more than doubled in the just-concluded financial year, from Rs 1,830 crore to Rs 4,450 crore.
In the preceding year, their free cash flows had dipped by 25 per cent. Free cash flow is the cash churned out by a company's operations, after funding its asset purchases. A larger cash chest can be used either to pay out higher dividends or to fund expansion, aiding growth.
MNCs have also pumped up cash at a much higher rate than their profits. Free cash flows for the MNCs grew by a whopping 143 per cent in 2003, but their aggregate profits edged up by a mere 20 per cent. Pruned-down working capital requirements appear to have helped many of these companies increase their cash flows, even as profits rose more sedately.
companies unhappy with formula: PRIVATE
telecom operators and Bharat Sanchar Nigam Ltd have opposed the Telecom Regulatory Authority's
idea of imposing a deficit charge.
While the former has objected to the entire concept of imposing deficit charges, BSNL has expressed reservations on TRAI's new formula to collect the charge as part of the annual revenue, instead of the current method of loading it on the airtime tariff. The controversial issue will be taken up by the telecom regulator in an open house discussion with the industry on Tuesday.
Since BSNL does most of this social obligation, a significant chunk of the Rs 5,000 crore collected through deficit charges accrues to the state-owned company.
op in power transmission:
Power Grid Corporation of India (PGCIL), the public sector transmission entity, has sought private sector participation in setting up new transmission facilities for evacuation from new power projects. This included setting up transmission facilities from the proposed 2,000 MW IB Valley thermal power station.
Briefing reporters on Sunday, R P Singh, chairman and managing
director of PGCIL, said in Bangalore, "We are prepared to concede management control to the private sector. We are also prepared to assume some risks associated in such ventures."
The investments estimated for setting up a high voltage direct current (HVDC) transmission facility from IB Valley is estimated to be upwards of Rs 2,500 crore.
ready with agri loans:
State Bank of India expects its agricultural loans to be Rs 6,000 crore (gross disbursements) in the current financial year, around 30 per cent more than last year.
Sales improved in Q1: The
corporates are smiling, and looking forward to a good year.
led the market: Recent trends indicate foreign investors not
steering the markets as they used to.
Private sector invited to transmit power: The Power Grid
Corporation of India is keen on private participation in the power
SBI allocated more for farming: The
premier bank is looking at a 30 per cent increase in disbursements