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Industrial output zooms to 22-month high
Oil & gas block auction gets poor response
Q2
Results
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Recession Blues
SAIL chief in WSA executive committee
RCom may have inflated revenues
TVS Motor eyes North
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Industrial output zooms to 22-month high
New Delhi, October 12 Industrial growth catapulted to a 22-month high in August, clearly showing that stimulus measures have yielded results which may make up for the likely decline in farm output in months to come. Finance Minister Pranab Mukherjee said it was a recovery process from the earlier slowdown caused by global financial crisis and possibly there could be some higher growth projection. “It is a good sign and it is a process of recovery,” said Mukherjee. “Industrial output will not slow down in coming months although farm output is expected to be lower by 2.5 per cent in 2009-10 from the previous year. There is no reason to believe it will go down,” said Abhijit Sen, member of the Planning Commission. However, the RBI is not planning to revise interest rates upwards as is expected from the policy review meeting to be held on October 27. Economists are of the opinion that though inflation is likely to keep rising, the apex bank is unlikely to lift interest rates so soon. Evidence that recovery is around has still to be seen before the bank takes any action. The government has thrown fiscal caution to the winds in a bid to support domestic demand as well as fund vote-grabbing social sector schemes. The result is a record net borrowing need of around Rs 4.5 trillion. RBI Governor said in Istanbul last week: “While there is a broad agreement that we need to exit from the present excessively accommodative monetary and fiscal policies, there is less agreement on when and how we should exit.” Signalling a wait and watch policy approach by the RBI, say economists. However, industry association PHDCC has said the impressive growth in industrial production had been achieved on a lower base of last year and needed to be watched for a sustained improvement in performance. Against this backdrop, it has become imperative to give a fillip to the industrial sector by providing an impetus to growth. Availability of raw materials and credit at reasonable rates is a priority to boost demand and reduce production costs in industry. Besides, the government should continue with the stimulus package and broadly press ahead with the second round of reforms - infrastructure and skill development - besides reining in fiscal deficit. Moreover, the RBI should continue with the soft interest rate regime to spur growth in industry, said Krishan Kalra, secretary general , PHDCCI. However, industrial output growth, which expanded for the eighth consecutive month, was the fastest since October 2007 but still lagged China’s 12.3 per cent in August, the quickest pace there in 12 months. Finance Secretary Ashok Chawla said there was a possibility of industrial production moving up. “We expect the trend to continue and expect better numbers in September,” Chawla said. However, there are talks of exit policy from the excessively loose monetary policy adopted by the banks the world over, but bankers around the world are watching inflation that is likely to raise its ugly head very soon.
Manufacturing output at 10.2% versus 1.7%
Mining at 12.9% versus 2.8% Electricity at 10.6% versus 0.8% April-Aug factory growth at 5.8% versus 4.8% Basic goods at 10% versus 3.9% Capital goods at 8.3% versus 0.9% Intermediate goods at 14.2% versus -5.5% Consumer goods at -8.5% versus 6.4% Consumer durables at 22.3% versus 3.9% Consumer non-durables at 3.7% versus 7.3%
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Oil & gas block auction gets poor response
New Delhi, October 12 Reliance Industries, which had won 45 blocks in the previous auction rounds, did not bid for any oil and gas blocks and made a largely symbolic bid for one coal bed methane (CBM) block. Of the 70 blocks offered in the 8th round of the New Exploration Licensing Policy (NELP), only 36 attracted bids with ONGC and partners bidding for a maximum 25. Eight out of the 10 CBM blocks that were offered simultaneously attracted 26 bids - the maximum six bids coming from Essar Oil. ONGC in partnership with Jindal Petroleum and Nevyeli Lignite bid for 3. “The (gas) utilisation policy and the pricing are very well clarified in our Production Sharing Contract but these have been regrettably openly challenged,” Director General of Hydrocarbons VK Sibal told reporters, without naming Anil Ambani group that has challenged the government's right to decide on utilisation and pricing of gas. Anil Ambani group, however, attributed the tame response to “The Petroleum Ministry's open interference by curtailing marketing and pricing freedom.” Only four foreign firms, including BHP Biliton of Australia, BG Group and Cairn India, bid for offshore blocks. As per the provisional results, ONGC and partners won six of the eight deepwater blocks that received bids. All of these were in Andaman sea while it was minority partner in a KG basin block that went to BG Group. Cairn won the other deepwater block. BHP Biliton Petroleum won three shallow water blocks off west coast while Cairn won a KG basin block. ONGC and partners won five shallow water blocks. ONGC was also a minority partner with Oil India Ltd that made a winning bid for the Cauvery basin shallow water block. Of the 47 bids received for 15 onland blocks, 37 were for small S-type blocks. The auction of oil, gas and coal-seam gas areas ended today, about a week before SC hears lawsuits over a natural gas contract between the firm run by estranged brothers Mukesh and Anil Ambani. RIL won the KG-D6 block in the first round of NELP in 2000. Anil's RNRL claims it has an agreement that requires RIL to sell 28 million cubic meters a day of gas at $2.34 per million British thermal units for 17 years. RIL said the gas could not be sold at less than $4.20 per mmBtu price set by the government in 2007. — PTI
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RIL surrenders 14 blocks
Reliance Industries has surrendered 14 blocks back to the government after incurring an expenditure of Rs 1,400 crore in unsuccessful exploration.
RIL had in the New Exploration Licensing Policy (NELP) rounds won 45 blocks and of these it has surrendered 14 blocks back to the government as it could not find commercially recoverable oil and gas, sources close to the company said. The company has invested over Rs 13,200 crore in exploring oil and gas and their appraisal in the 45 blocks but made commercial discoveries only in two blocks - KG-D6 in Krishna Godavari basin and NEC-25 in Mahanadi basin. Sources said RIL could not recover the Rs 1,400-crore expenditure it incurred on seismic surveys and drilling wells in the 14 blocks and that would be treated as sunk or lost investment. Exploration and production is a highly risky business and end results of the efforts are not known. In the KG-D6 block alone, RIL has committed about Rs 38,000 crore till date of which Rs 28,000 crore have been already spent, they said. |
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HDFC net up 24.3 pc
Mumbai, October 12 The private lender had a net profit of Rs 534.23 crore in the same quarter of the previous fiscal, HDFC Ltd vice-chairman and managing director Keki Mistry said here today. The total income increased to Rs 2,850.23 crore during the September quarter, from Rs 2,620.59 crore in the same period a year ago. Mistry said HDFC disbursed Rs 22,342 crore during the first six months of the current fiscal, recording a growth rate of 26 per cent over the same period last fiscal. For the half year ended September 30, HDFC reported a net profit of Rs 1,228.86 crore, an increase of 22.6 per cent over the corresponding period a year ago. The total income during the six-month period rose to Rs 5,699.30 crore from 4,939.21 crore in the same period a year ago. HDFC's capital adequacy ratio stood at 14.9 per cent as on September-end 2009 as against the minimum requirement of 12 per cent. Exide net up 92 pc
Battery major Exide Industries has said its net profit rose by 92.27 per cent to Rs 149.67 crore for the second quarter ended September 30, over the same period last year. The total income rose to Rs 960.70 crore in the latest quarter, against Rs 900.83 crore in the same period last fiscal, Exide Industries said. Sanwaria Agro Oils
Sanwaria Agro Oils has reported a fall of over 36 per cent in its profit after tax (PAT) to Rs 14.03 crore for the second quarter ended September, over the corresponding period a year earlier. Net sales of the company also fell to Rs 308.07 crore in the latest quarter of FY'10 from Rs 312.21 crore of the same quarter last year, Sanwaria Agro Oils said. South Indian Bank
South Indian Bank has said its net profit rose by 40.42 per cent to Rs 72.57 crore for the quarter ended September 30, 2009, over the same period last year. Total income also increased to Rs 534.36 crore in the latest quarter, against Rs 439.87 crore in the same period previous fiscal, South Indian Bank said. The bank's net interest margin stood at 3.12 per cent for the current half year as against 2.69 per cent for the corresponding period of previous year, the bank said in a press release. Axis Bank profit up 32 pc
Private sector lender Axis Bank has reported 32 per cent rise in net profit at Rs 531.64 crore for the second quarter ended September 2009. The bank had a net profit of Rs 402.91 crore in the September quarter of previous fiscal, Axis Bank said. Total income rose to Rs 3,925.94 crore at the end of the second quarter, from Rs 3,239.45 crore in the corresponding period a year ago. Sintex Industries loss
Plastic products maker Sintex Industries has reported a 31.70 per cent decline in its consolidated net profit to Rs 57.2 crore for the second quarter ended September 30, over the same period last year. Total income dipped to Rs 720.23 crore in the latest quarter, against Rs 756.06 crore in the same period corresponding fiscal, Sintex Industries said.
— PTI |
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Maximum resume frauds in N India
Aditi Tandon Tribune News Service
New Delhi, October 12 The region accounted for 47 per cent of the total resume discrepancies, followed by the western states at 32 per cent discrepancies. South and East India together accounted for the lowest percentage of frauds - reflecting a better job scenario in these regions during the global financial meltdown that led to the loss of five lakh jobs in the country between October and December last. Analysis of the job and resume trends during economic crisis by AuthBridge Research Services, a background screening and risk management consulting firm, shows maximum resume embellishments happened during March, which saw 16 per cent of job frauds. March was also the worst month on the economic front. The report titled ‘Background screening trends: A recession time study’, which evaluates the upward trend in resume embellishments as an aftermath of recession, further reveals how discrepancies related to previous employment were the most - 74 per cent of the total. Of these, 59 per cent candidates lied about their tenure, designation or cost to company. Fake and forged documents formed 69 per cent of the total education-related discrepancies during the meltdown. Maximum resume-related discrepancies were reported from the following three sectors — ITeS (IT enabled services), IT and BFSI (banking, financial services and insurance sector). Commenting on the report, Ajay Trehan, CEO of AuthBridge, said: “Job cuts, lay-offs and salary cuts have been the key factors during recession instigating candidates to lie in resumes so as to bag the available job at any cost.” He added that the upward trend in resume frauds showed that employers needed to scrutinise candidate’s profile even more carefully and watch out for fraudulent credentials, such as inflated or fictional employment history or educational degrees so as to secure them from the hazardous repercussions of unsafe hiring. The report aims to provide deeper understanding of the growing hiring risks in the country, and is a result of primary and secondary data research evaluating sample size of 10,000 cases per month.
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SAIL chief in WSA executive committee
New Delhi, October 12 Roongta would be the only CEO from India on the committee and also the first chairman of the steel PSU to be part of the apex council. Headquartered at Brussels, the WSA is an international trade body for the iron and steel industry, representing around 180 steel producers, including 18 of the world's 20 largest steel firms.
— PTI |
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Karbonn Mobiles targets Rs 1000-cr revenue
New Delhi, October 12 Launching its range of mobile phone here today, the company said it was also targeting revenues worth Rs 1,000 crore from its operations by the end of March 2010. Jaina Group MD Pradeep Jain said the company would invest Rs 100 crore in the current fiscal for operations, functions and sales. “We also plan to capture a market share of 7-10 per cent in India in the multimedia phone segment by expanding our portfolio of products," he added. The company launched its new range of multimedia handsets in the price range of Rs 2,000-5,000. "Going forward, we plan to launch 3-4 new handsets every quarter in various segments like multimedia, touch screens and dual SIMs," Jain said. Once, the company starts selling one million units a month, it may start manufacturing the handsets from its Bangalore centre. "We have earmarked an investment of Rs 150 crore when we reach the critical sales volumes of around 1 million per month in 2010-2011," he said.
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RCom may have inflated revenues
New Delhi, October 12 When contacted Department of Telecom sources confirmed receipt of the report by auditors Parekh and Co and said it was yet to examine the findings. The DoT would ask for RCom's response later. “RCom is in full compliance of licence terms and conditions," a company spokesperson said, adding: “Auditors' alleged comments are biased and appear instigated by corporate rivals... Premature leakage of confidential report to media reflects the special auditors' prejudice/bias. "All revenues for FY'07 and '08 are correctly reported in RCom's audited account. Alleged comments of special auditor do not reflect any under-reporting of revenue... licence fees." The special audit committee report that has been submitted to the DoT found that for FY'08 actual wireless revenue earned by the company was only Rs 12,298 crore as against Rs 15,213 crore reported to the shareholders, which is an over reporting of Rs 2,915 crore. It also found that RCom evaded licence fee and spectrum fee to the tune of Rs 315 crore. The DoT is awaiting the report of four other companies namely Tata Teleservices, Bharti Airtel, Vodafone and Idea from the respective auditors appointed by it and the government, if warranted, will take necessary action after examining the reports. — PTI
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TVS Motor eyes North
Chandigarh, October 12 “We are targeting a growth of 20 to 25 per cent in sales from the states of Himachal Pradesh, Punjab, Jammu and Kashmir and Chandigarh in this festival season,” said company's area manager Narinder Bhatia while talking to reporters here today. The company last year sold 9,500 units during Diwali. He further informed that the total market of bikes in the northern region stands at 34,000 units. He said in order to boost the sale of its vehicles in the festival season, TVS Motor has also entered into an agreement with Bank of India to provide finance to prospective customers for buying its different variants of motor cycles. |
Oil over $73 Citigroup fined $6,00,000: Report UK to sell off state assets: Brown Dhanalakshmi Bank trims deposit rates Nokia Siemens wins GSM deal
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