Reliance Industries Ltd., Wipro Ltd., HDFC Bank, ITC Limited, Mahindra & Mahindra Finance Ltd., MindTree, Hindustan Zinc and some others have produced good financial results for the quarter ended 31st December 2012. Reliance Industries report Rs 55020 mn profit on 10.1 % rise in revenue to Rs 963070 mn while HDFC Bank has informed that net profit has rose by 30 % in the quarter ended December 2012. Wipro’s profit up by 18 % to Rs 17160 mn. ITC’s December quarter profit rises 21 %. M&M Financial’s net up 35.8 % to Rs 2168 mn. MindTree net surges 63 % to Rs 988 mn. Hindustan Zinc net up 27 % at Rs 16120 mn.
LENDERS ASK KINGFISHER TO BRING GOOD MONEY
Lenders ask sinking Kingfisher Airlines to bring at least Rs 8000 mn. Banks ask airline to clear some dues before they consider any further loan recast and extension of the NOC.
GLOOMY STOCK MARKET IN CHINA
Presently, due to gloomy stock market in China, IPO activity has almost dried up. As a result, Private Equity firms are finding it increasingly difficult to realise returns on their investments. Another problem for PE firm is that China does not have secondary market for transactions that fall within the purview of mergers and acquisitions. It means PE firms cannot sell its stake in a company to another PE firm with ease.
DEBT CEILING IN US
The debt ceiling, as imposed by the Congress, refers to the debt level that the US can carry at any given time. The Republicans have been opposing the idea of raising the debt ceiling yet again. The idea of having a trillion dollar platinum coin issued was doing the rounds. The US Treasury has about 261.5 mn ounces of the yellow metal. At the the current gold price, that could raise over US $ 440 BN. Selling gold would affect US’s reputation and have adverse global implications. The US policymakers are refusing to acknowledge the magnitude of the crisis that their economy is facing.
WALMART TO HELP US ECONOMY
World’s largest retailer Wal-Mart Stores Inc has decided to buy US$ 50 bn worth of US made goods for retailing. In the past, it was criticized for selling too many goods from low cost countries like China. The company has also decided to hire 100000 people over the next five years at a time when the unemployment rate in US is close to 7.8 %.
GOLD HOLDINGS OF GERMANY
German central bank is pulling some of the gold reserves out of the foreign banks. It will do it slowly, relocating 300 tonnes of gold from New York to Frankfurt and an additional 374 tonnes from Paris to Frankfurt by 2020. This amounts to around 1/5th of its official gold as identified by the World Gold Council. In US$ terms, Germany’s gold holdings stood at a little over UD $ 200 bn.
INDIAN BANKS ARE SAFE
Despite, the threat of deteriorating asset quality, the International Monetary Fund (IMF) feels that the risks to Indian financial system are ‘manageable’. This reference is based on the IMF’s joint study with the Reserve Bank of India. The two have conducted stress tests on the Indian banks. These tests indicate that the Indian banks can withstand asset quality as well as liquidity shocks.
INTERNATIONAL MONETARY FUND SOUNDS WARNING ON BANK LICENCES
It says risks associated with allowing entry of corporate entities could outweigh benefits of creating new banks. IMF has warned India against licencing corporate entities to step into the business of commercial banking, saying the risks associated with such a move potentially outweigh the benefits of creating more banks.
AIR INDIA & 787 DREAMLINER
Air India had to ground its six Boeing 787 Dreamliner recently. Regulators and airlines in Europe and South America have also grounded the Dreamliner as doubts were raised about the plane’s batteries. It is worth noting that the 787 Dreamliner has a list price of US$ 207 mn (approximately Rs 11.2 bn). The aircraft is said to be fuel efficient as it uses weight saving composite materials. Air India had been pinning all its hope on the 787 Dreamliner for its turnaround. The carrier has 27 Dreamliners on order.
212* THE EXTRA DEGREE
(by Sam Parker & Mac Anderson) At 211 degrees….water is hot. At 212 degrees….it boils. And with boiling water, comes steam. And steam can power a locomotive. And it’s that one extra degree that….Makes all the difference.
So many times, in business and in life, it’s that one extra degree of effort that separates the good from the great.
PULLING TOGETHER
(by John J Murphy) The greatest accomplishments in life are not achieved by individuals alone but by proactive people pulling together for a common good.
