Weekly Round Up – Week 30

It is turning out to be a good quarter for Corporate India in terms of financial performance for quarter ended June’16. Most of the companies have reported an improvement in profits. Among the major companies, Maruti Suzuki reported 23% increase in profits to Rs 1,486 crore aided by sales growth of 12%. Both ACC, Ambuja … Continue reading Weekly Round Up – Week 30

Telecom Sector – The SUC muddle..

Telecom Commission (TC) has proposed to fix spectrum Usage charge (SUC) at minimum 3% of revenue on aggregate basis for all existing spectrum and for all future auctions also, as per various reports. The proposal, if accepted by the cabinet, would bring finality to long pending and complex issue of bringing uniformity in the SUC rates. The … Continue reading Telecom Sector – The SUC muddle..
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Bank Recapitalization – Precursor to consolidation..?!

Government’s decision to recapitalize banks is a prudent move which would reduce considerable stress from the banking sector. Public Sector Banks (PSBs) have been reeling under the load of growing NPAs which has caused significant erosion in their equity base and aversion to lending. While it would help the weaker banks to enhance their capital adequacy … Continue reading Bank Recapitalization – Precursor to consolidation..?!
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HCC – Too old to fail..!

HCC (Hindustan Construction Company) got reprieve from the lenders last week with the invocation of S4A (Scheme for Sustainable Structuring of Stressed Assets) scheme, released by RBI to tide over the bad debt crisis. The invocation of the scheme reflects lenders confidence in the strength of the company. A ninety-year old company should ideally fall in the category of ‘too … Continue reading HCC – Too old to fail..!
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Power Sector Consolidation – The Rationale..

The acquisition of Jaypee’s power unit by JSW Energy, the third for the company in recent past brings back focus on the sector. The sector also saw another big deal, namely Tata Power’s acquisition of Welspun’s renewable assets about a month back. Other than the domestic players, a number of foreign players are also participating in the … Continue reading Power Sector Consolidation – The Rationale..
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Reliance Industries – Beneath the quarterly numbers..

Reliance Industries has posted another good set of numbers with 18% jump in profits for quarter ended June’16, on top of similar 16% jump in the previous quarter. Its core margin remains intact with cost of goods and trade, as a percent of sales coming down from 75% to 70% y-o-y, giving a huge room for … Continue reading Reliance Industries – Beneath the quarterly numbers..
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Weekly Round Up – Week 28

The results season for quarter ended June’16 begins. It looks like not-so-good FY17 beginning for IT majors with both Infosys and TCS reporting pressure on margins. While consolidated sales grew by modest 1.2% and 3% on sequential basis, net profit decline by 4.5% and 0.4% respectively. On the other hand, Reliance Industries had a bumper quarter … Continue reading Weekly Round Up – Week 28

Fertilizer units Revival – A transformational initiative..!

The Cabinet decision yesterday to revive three closed fertilizer units at Sindri (Jharkhand), Gorakhpur (Easter U.P.) and Barauni (Bihar) is a landmark decision being under consideration for almost a decade now. In terms of value, the cash amount involved is little more than the recently announced Ultratech- Jaypee cement deal. The complex decision has involved all the … Continue reading Fertilizer units Revival – A transformational initiative..!
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Ultratech Jaypee deal – Lenders take all..!

The acquisition of Jaiprakash Associate’s Cement business by Ultratech is another important milestone for the Aditya Birla Group which has been consistently expanding its businesses across all segments. The group is among the few who have negotiated the business turbulence of last decade well and could be a textbook case of how ‘slow and steady’ … Continue reading Ultratech Jaypee deal – Lenders take all..!
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Financial Stability Report – The Good and the Not so good…

RBI released its Financial stability report, published twice a year, last week. The report shows a significant reduction in financial stress being faced by the corporate sector even though operational stress, measured as capacity utilisation, doesn’t show much change. However, the corporate balance sheet improvement is not yet translating into gains for financial sector which continues … Continue reading Financial Stability Report – The Good and the Not so good…
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