Profit Cues: Asian shares slip, no coal mining auction
If you missed our coverage, here are the top 10 stories of the day.
Asian shares fell for the fourth straight day on Tuesday. Investors are concerned about an uncertainty in Europe as France heads into a presidential election. The manufacturing purchase manager index or PMI for Europe is at 34-month low. Meanwhile, overnight US stocks also lost ground taking cues from Europe. US oil stock piles were seen rising to a 11-month high due to slowing factory activity.
Budget session to resume today
The Finance Bill that gives tax authorities powers to re-open tax cases retrospectively would be debated on the floor of the house. The government is likely to face a tough battle clearing key pending bills besides the budget for the year 2012-13. Industry bodies, foreign governments have urged the government to rethink retrospective applicability of tax avoidance rules. They argue that investment across sectors could be hurt.
India not to auction coal mining blocks
India will not auction new coal mining blocks to the power sector and will instead allocate them to companies that offer to sell electricity cheapest, a government source said on Monday. The country is introducing a new system that will put an end to allocation of captive blocks to power plants at the government's discretion, as done in most cases in the past, and will help bring transparency at a time when the government is being buffeted by corruption scandals. Power companies will be vying for about 16 of 54 coal blocks that the government has earmarked for allocation through bidding expected to take place by the year-end.
Ultratech Cement warns on profit squeeze
UltraTech Cement, India's largest cement company, on Monday warned high input and energy costs would squeeze margins going forward, after posting a 19 percent rise in its fiscal fourth-quarter profit. UltraTech, with a capacity of 52 million tonnes a year, reported net profit of Rs 867 crore for the March quarter, beating estimates on higher volumes. Net sales rose 18.8 per cent over the same period to Rs 5,337 crore. Analysts had forecast net profit of Rs 680 crore on net sales of Rs 5,270 crore.
TCS beats estimates
Tata Consultancy Services, India's largest software services exporter, beat expectations to report net profit of Rs 2932 crore for the quarter ended March 2012. The company was expected to report a decline of 2 per cent to Rs 2,827.50 crore against Rs 2,886.60 crore in the December 2011 quarter. TCS reported consolidated revenue of Rs 13,259.3 crore for the March 2012 quarter. Operating margins for the March quarter stood at 27.7 per cent 29.2 per cent over the previous quarter.
Maruti Suzuki union demands pay hike
Emboldened by the recognition of their union, workers at Maruti Suzuki India’s Manesar plant are understood to have demanded a hike in their basic salaries, as high as five times in some cases, ahead of the scheduled wage negotiations with the management. According to sources close to the development, the newly formed body — Maruti Suzuki Workers’ Union (MSWU) — has submitted a list of about 20 demands to the management for consideration while finalising the three-year wage settlement agreement.
Sesa Goa results preview
Net sales seen at Rs 2,635.12 cr vs Rs 3607.28 cr (March 2011 quarter)
Net profit seen at Rs 1,204.53 cr vs Rs 1,461.76 cr
Key Factors
Iron ore sales in March 2012 quarter at 5.2 mn tons vs 6.6 mn tons, down 21% over the year ago period
Operating profit margin seen at 37 per cent vs 58.8 per cent (YoY)
Net sales to decline due to lower iron ore realization
PETRONET LNG Preview
Net Sales seen at Rs 6,205 cr vs Rs 3,986 cr; up 55.66 per cent (over March 2011 quarter)
Net Profit seen at Rs 280 cr vs Rs 206 cr; up 35.9 per cent.
Key factors
Expect volumes to remain close to December 2011 quarter levels
Re-gasification tariff will be up by 5 per cent annually