|
|
|
|
|
Industrial output in May slipped into negative zone
Infy Q1 net up 3.7%, ‘cautiously optimistic’ about outlook
Major economic reforms after elections: Montek
Car sales dip for eighth month, industry seeks revival package
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Jet-Etihad Deal
Biz confidence slips in Q2 amid economic uncertainty
|
|
Industrial output in May slipped into negative zone
The industrial slowdown shows no concrete signs of ebbing as industrial growth contracted on account of poor show by the manufacturing and mining sectors. The index of industrial production (IIP) was 1.9 per cent in April and 2.5 per cent in May last year, as per the data released by the Central Statistical Organisation. To add to the slowdown woes, inflation is inching up. Consumer inflation climbed up to 9.87 per cent in June, from 9.31 per cent in the previous month due to costlier vegetables and food items. The spike in consumer price index-based inflation came after three consecutive months of decline in the price rise. Food inflation rose to 11.84 per cent from 10.65 per cent in the previous month. Commenting on the Index of Industrial Production (IIP) data for May 2013 which was released today, FICCI president Naina Lal Kidwai, said the figures are indeed disappointing and emphasise the need for bold reforms which would instill confidence in investors. “The negative growth of four per cent in consumer goods is particularly disappointing . In the last few years, excess capacity has developed in many industries due to slackening of both domestic and export demand. There is an excess capacity in sectors like automotive, cement, metals and textiles. Therefore, the government should look at providing demand stimulus measures for sectors witnessing fall in demand,” said Kidwai. Industry body, Assocham said the situation is serious and may lead to job losses and halt in production. "The Indian industry has slipped into a serious crisis with half of the 22 groups in the manufacturing sector showing negative growth and several of them posting a big drop in production", said Assocham president Rajkumar Dhoot. "If this situation is allowed to persist, it is feared that the industry may see large scale job losses. The precarious situation is well reflected in several passenger car and commercial vehicles halting production for weeks as they are not able to clear the inventory,” Dhoot said. There was some relief on the trade deficit front which had been putting pressure on the rupee. Subdued import of gold and silver pulled down the trade deficit in June to $12.2 billion despite a 4.56 per cent contraction in exports during the month. |
|||||
|
Infy Q1 net up 3.7%, ‘cautiously optimistic’ about outlook
The company's consolidated net profit for the quarter ending June 30 rose to Rs 2,374 crore from Rs 2,289 crore in the corresponding period a year ago, the Bangalore-headquartered Infosys, which recently recalled its iconic former chairperson Narayana Murthy from retirement to head the company, said here today. The first quarter revenue (2013-14) is Rs 11,267 crore, signifying a 17.2 per cent year-on-year and 7.8 per cent quarter-on-quarter growth. Sensex at 6-week high; Nifty crosses 6K
The BSE benchmark Sensex today rose by over 282 points to close at a fresh six-week high led by gains in IT sector stocks as Infosys surged by 11% on smart first quarter results, while the NSE index Nifty crossed the 6,000-mark for the first time in one-and-a-half months. The 30-share index kick-started the day on a firm note at 19,904.84 as the country’s second largest IT services firm Infosys posted better-than-expected quarterly results. Sensex rose further to close the day higher by 282.41 points.
— PTI The company left the FY 14 dollar revenue growth guidance (6-10 per cent) unchanged. However, owing to the weakening rupee, it projected the higher revenue (13-17 per cent) for this fiscal (2013-14) in rupee terms. In US dollar terms, its consolidated net profit rose marginally by 0.5 per cent to $418 million in the April-June quarter this fiscal from $416 million in the same quarter of 2012-13. Its consolidated revenues rose by 13.6 per cent to $1.99 billion against $1.75 billion in the same period last year. “Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year,” Infosys CEO and managing director SD Shibulal said. “We maintained our margins and continued making investments in the business,” Rajiv Bansal, Chief Financial Officer said. He, however, disclosed that salary increases for FY 14 effective July would affect the margins in the future quarters.
— S D Shibulal, Infosys CEO & Managing Director Last month, it had announced an average 8 per cent hike for Indian employees and about 3 per cent for those overseas. Infosys maintained its “cautiously optimistic” approach due to cross currency movements and regulatory changes in the US, Canada and Australia. This quarter, Infosys lost $13.4 million in revenue on account of cross-currency movements, Shibulal said. (with agency input) |
|||||
|
Major economic reforms after elections: Montek
Washington, July 11 He, however, assured businesses and investors that current slowness in growth is only a temporary phenomenon and India would soon bounce back to 8 % growth. “I would assure that there is no item on the reform agenda which the Government of India had earlier said. My expectation is that we are a little bit marking time. Wherever there is a legislative change needed (for economic reform) it will slip a little over the next elections," Ahluwalia said in his address to the 38th Annual Leadership of the US India Business Council (USIBC). Addressing top American CEOs during the inaugural session of the USIBC annual gala, the Planning Commission urged the attendees, including government officials and former US ambassador to India, to "not to be too depressed" over the slowness of growth, or the volatility of the Indian currency. “These are short term management problem. The medium-term and long-term growth prospects are good,” he said, adding the government commitment to economic reform remains the same. It is only that “the policy reform would slip away
due to the elections,” he pointed out. Observing that the Indian government of late has taken a series of executive actions in implementing some of these reforms or removing the hurdles, Ahluwalia said these were indications of India’s commitment to reforms and thus should be assuring for US investors and businesses. “You can’t call these reforms,” Ahluwalia said referring to the series of executives decisions being taken by the government, including putting on hold those related to preferential market access. In an election year, he argued, it is better to take these executive decisions, rather than spending time and energy on legislative changes. Acknowledging the concerns of the American businesses, lawmakers and academicians, Ahluwalia said India is clear that there is a big agenda of reform ahead of it. “Our approach to the reform has been gradualist because in a democratic environment it can be done as fast as we think. As long as the economy was growing at 9% there was not much of a concern,” Ahluwalia said, adding people started expressing concerns only after the slowness of reforms. “In the long run, India has the growth capacity that would reach 8% ,” he said. “At the moment we are going through a slowdown, this should not be seen as a long-term phenomenon, nor it should be seen as an acceptance of slow growth. I think the system would put pressure, and we would be back to it (higher growth),” he said.
— PTI |
|||||
|
Car sales dip for eighth month, industry seeks revival package
Despite automakers and dealers offering high discounts and launching innovative financing schemes with flexible payment options, domestic passenger car sales declined by 9% to 1,39,632 units in June, 2013 from 1,53,450 units in the same month of 2012, for the eighth consecutive month. The industry produced 16,19,328 vehicles, including passenger and commercial vehicles, three-wheelers and two-wheelers in June, 2013 as against 16,99,714 in June 2012, registering a decline of 4.73% over the same month last year. With the inventories rising on a month-on basis, the industry has appealed to the government to take immediate steps to revive the sector. Releasing the latest round of sale figures of June, 2013, Society of Indian Automobile Manufacturers (SIAM) director general Vishnu Mathur said, “The industry is facing big problems — we need a revival package from the government that includes reductions in excise duties on cars and commercial vehicles.” He said “No way” the sales would meet the three-to-five per cent target that SIAM initially projected for this financial year to March 2014, but declined to set a new figure. According to the data motorcycle sales in last month declined by 9.16% to 7,99,139 units from 8,79,721 units in the same month previous year. Total two-wheeler sales in June declined by 4.56% to 11,16,424 units from 11,69,741 units in the same period of previous year. Total sales of commercial vehicles declined by 13.45 % to 56,197 units from 64,928 units in the year-ago period, SIAM said. |
|||||
|
CCI to take call after getting more info
New Delhi, July 12 The transaction, touted as the largest foreign investment proposal in the aviation sector, is facing regulatory hurdles with various ministries raising major concerns over the ultimate control of Jet Airways post transaction. When asked about the Jet-Etihad deal, which is being examined by the commission, Chawla said it was 'work-in-progress'. “Our people have asked them for some information and we are awaiting information from Jet and Etihad. There were some issues that they have been asked to (come up with details). When it comes we will take a call,” he said. Under the proposed transaction, Jet would sell 24 per cent stake to Etihad. Amid the raging controversy over the deal earlier this month, the government had said the stake sale in Jet to Abu Dhabi- based Etihad was still under examination. The Foreign Investment Promotion Board (FIPB), which clears FDI proposals, on June 14 had deferred a decision on the deal citing control and ownership issues. The FDI policy for civil aviation, which was revised in September last year, allows foreign airlines and foreign institutional investors (FIIs) to invest up to 49 per cent in an Indian airline. — PTI
|
|||||
|
Biz confidence slips in Q2 amid economic uncertainty
New Delhi, July 12 Around 46% of Indian businesses cited economic uncertainty to be a major growth constraint, which means businesses are more likely to delay investment in machinery or their staff, and thus leading to slower growth or lower confidence levels. The survey further noted that one-in-three (75%) respondents found accounting and money laundering frauds as a major concern for organisations in the recent times, followed by bribery and corruption at 59%. As a preventive measure against frauds, the survey showed that a majority of businesses (52%) are appointing compliance personnel. As many as 42 % considered conducting fraud awareness training, while 34% of businesses are conducting stringent background checks and a few others opted for the whistleblower policy and instituting a regulatory compliance conduct for all employees. “It is imperative to sustain oneself in a dynamic business environment despite economic uncertainty and other factors affecting optimism or growth in businesses. This can be achieved to a large extend by adopting a robust governance framework,” Harish HV - Partner, India Leadership Team at Grant Thornton in India said. — PTI
|
|||||
Govt, RBI watching Re movement Tech Mahindra’s share swap done Inflation-indexed bonds on sale Audi S6 launched at
Rs 85.99 lakh
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | E-mail | |
New Delhi, July 12
Bangalore, July 12
New Delhi, July 12
