Nik's Diary
The Indian market
opened on a negative note tracking SGX Nifty and major Asian markets which are
trading lower, after minutes of the Federal Reserve meeting showed that US
policy makers are divided over further stimulus measures. The US market ended
on a negative note on Wednesday partly due to profit booking. A negative
reaction to the minutes of the latest Federal Reserve meeting also generated
selling pressure. In addition, a larger-than-expected decline in US housing
starts, which fell 8.5% to a seasonally adjusted annual rate of 890,000 in
January 2013 from the revised December 2012 estimate of 973,000, impacted the
market. The European markets ended Wednesday's trading session with mixed
results, following yesterday's strong rally mainly due to the negative housing
start data released in the US. Back home in India, the shares rose marginally
on Wednesday, with the Reliance Industries stock rallying after company
expressed plans to invest over US$5bn in the next three to five years jointly
with British Petroleum to increase output from the KG-D6 block. Going ahead,
market participants would keep an eye on the proceedings in the Budget session
which commences today. On the economic front, reports on US weekly jobless
claims, US consumer price inflation and US existing home sales would also be
keenly watched.
Budget Session of Parliament
commences
Ahead of the session, Prime Minister Manmohan Singh
called for "a productive and constructive debate", although in
previous years opposition MPs have resorted to tactics including shouting and
shoving to halt proceedings. Finance
Minister P. Chidambaram is due to unveil the budget next week for the coming
fiscal year starting in April that is expected to feature the most
belt-tightening in years despite general elections looming in 2014. Other key bills to be presented in the session which
is due to run to May 10 include measures to hike foreign investment in
insurance, open the pension sector to overseas investors and guarantee
subsidized grain to India's legions of poor. India, the world's most populous democracy, is
striving to avert a ratings agency downgrade of its sovereign debt to junk
status due to its deteriorating finances and sliding economic growth. The government has announced reforms to draw more foreign
investment, which come as it faces a sharply slowing economy, a gaping fiscal
deficit and high inflation which has built pressure on the left-leaning ruling
alliance. But Singh's minority
government, already scarred by previous corruption rows, anticipates its reform
agenda could be hijacked by opposition anger over bribery allegations involving
the $748-million purchase of a dozen helicopters from AgustaWestland. The Anglo-Italian company is a unit of Italian defence
giant Finmeccanica whose chief executive Giuseppe Orsi was arrested last week
in Milan. The Italian company has denied any wrongdoing. Legislation to toughen anti-rape laws following the
brutal gang-rape and murder of a 23-year-old medical student in December is
expected to win quick approval from lawmakers in light of widespread public
anger. Source: Haveeruonline
Nestle - RU3QFY2013
For 4QCY2012 Nestle posted
a 10.1% yoy growth in top-line to `2,153cr. Domestic sales increased by
9.6% yoy to `2,041cr on account of better realizations and superior product
mix. Exports rose by 20.6% yoy aided by higher exports to third parties, which
rose by 47.2% on a yoy basis. OPM stood at 22.3%, up 122bp on a yoy basis.
Bottom-line rose by 20.8% yoy to `279cr. Source:
Angel Broking
Abbott India - RU3QFY2013
For 4QCY2012, Abbott India (AIL) reported a better than
expected performance. Its top-line grew by 12.3% yoy from `399cr in
4QCY2011 to `448cr in 4QCY2012, 5.6% higher than our estimate of `424cr.
For the full year CY2012, AIL witnessed a 14.3% yoy revenue growth to `1,653cr.
EBITDA margin expanded by 241bp yoy to 16.3% in 4QFY2012 from 13.8% in 4QCY2011
due to decrease in employee cost and other expenses during the quarter. This
led to a net profit growth of 35% yoy to `50cr in 4QCY2012 from `37cr in
4QCY2011. Fall in other expenses during CY2012 led to EBITDA margin expansion
during CY2012 by 226bp to 12.2% from 10% in CY2011, thus leading to a 20% yoy
growth in net profit for CY2012 to `145cr. Source: Angel Broking
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