Gold tumbles by Rs 340 on fall in demand, global cues

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 340 each to Rs 28,760 and Rs 28,560 per 10 grams, respectively.

Snapping a three-day rising streak, gold prices tumbled by Rs 340 to Rs 28,760 per 10 grams in the national capital today on selling by stockists against fall in demand at prevailing levels amidst a weak global trend.

Silver followed suit and lost Rs 650 at Rs 44,050 per kg on poor offtake by industrial units and coin makers. Traders said increased selling by stockists against fall in demand at existing higher levels and a weak global trend mainly pulled down gold prices.

Gold in New York, which normally sets the price trend on the domestic front, fell by 0.30 per cent to USD 1,309.10 an ounce and silver by 0.15 per cent to USD 19.91 an ounce.'

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 340 each to Rs 28,760 and Rs 28,560 per 10 grams, respectively.

It had gained Rs 710 in last three sessions. Sovereigns lost Rs 200 at Rs 24,800 per piece of eight grams. In line with a general weak trend, silver ready dropped by Rs 650 to Rs 44,050 per kg and weekly-based delivery by Rs 600 to Rs 43,580 per kg. The white metal had gained Rs 650 in the previous two days.

Silver coins, however, held steady at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces in restricted deals.

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Tata Steel shuts Odisha plant due to raw material crunch

The suspension of operations at Sukinda and Bamnipal would mean more than 6,000 job cuts, the company said.

Tata Steel  Ltd has shut down one of its ferro alloys plants in Odisha due to a raw material shortage linked to the suspension of a mining license, the company said in a statement late on Friday.

Tata Steel sourced ore for the 50,000 tonne-per-year Bamnipal plant from its captive chromite mine in Sukinda, operations of which were suspended in May.

The plant was run with available inventory before being shut on Aug. 4. The suspension of operations at Sukinda and Bamnipal would mean more than 6,000 job cuts, the company said.

Also read:  SBI wants external agency to run Bhushan Steel

Tata Steel stock price

On August 08, 2014, Tata Steel closed at Rs 537.55, down Rs 17.9, or 3.22 percent. The 52-week high of the share was Rs 578.60 and the 52-week low was Rs 220.00.

The company's trailing 12-month (TTM) EPS was at Rs 66.02 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 8.14. The latest book value of the company is Rs 629.60 per share. At current value, the price-to-book value of the company is 0.85.

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CBI investigates IDBI Bank loan to Kingfisher Airlines

The CBI has registered a preliminary enquiry registered against IDBI Bank for sanctioning a loan to debt-laden Kingfisher Airlines. The investigating agency is enquiring as to how the bank approved a Rs 950 crore loan to Kingfisher Airlines considering the company's negative net worth and credit rating.

Moneycontrol Bureau

After its recent crackdown on Syndicate Bank  - where the Central Bureau of Investigation, or CBI, arrested its chairman and managing director SK Jain in an alleged bribery case - the CBI has now shifted focus to  IDBI Bank and Kingfisher Airlines .

The CBI has registered a preliminary enquiry against IDBI Bank for sanctioning a loan to debt-laden Kingfisher Airlines. The investigating agency is enquiring as to how the bank approved a Rs 950 crore loan to Kingfisher Airlines considering the company's negative net worth and credit rating.

Also Read: Were rumours of SpiceJet's demise greatly exaggerated?

CBI sources say: "IDBI Bank did not need the exposure when other bank loans were stressed." Sources also add it was the first exposure to the bank.

State Bank of India  and several other banks have exposure totaling Rs 6,500 crore in Kingfisher Airlines. The loans granted by SBI to KFA is also under the scanner.

Kingfisher Airlines stopped operations from October 1, 2012.

Syndicate Bank stock price

On July 28, 2014, Syndicate Bank closed at Rs 146.35, up Rs 0.70, or 0.48 percent. The 52-week high of the share was Rs 179.10 and the 52-week low was Rs 61.05.

The company's trailing 12-month (TTM) EPS was at Rs 27.93 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 5.24. The latest book value of the company is Rs 189.63 per share. At current value, the price-to-book value of the company is 0.77.

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Godrej Ind Q1 profit up 46% on strong operating performance

"Despite delayed monsoon, agri businesses registered sustained momentum in revenues and marked improvement in profitability while Godrej Properties reported healthy financial performance during the quarter with revenues and net profit growing by 49 percent and 16 percent respectively," AB Godrej, chairman explained.

Moneycontrol Bureau

Godrej Industries , which engaged in the businesses of oleochemicals, surfactants, finance & investments and estate management, has started off the year with strong earnings growth across segments. Net profit on a consolidated basis shot up 45.8 percent year-on-year to Rs 77.7 crore led by strong revenue growth and operational performance. Profit in corresponding quarter of last fiscal was Rs 53.3 crore.

Total income from operations grew by 23.7 percent to Rs 2,326.2 crore in the quarter ended June 2014 from Rs 1,879.8 crore in the year-ago period.

"Despite delayed monsoon, agri businesses registered sustained momentum in revenues and marked improvement in profitability while  Godrej Properties  (wherein Godrej Industries holds 60.76 percent stake ) reported healthy financial performance during the quarter with revenues and net profit growing by 49 percent and 16 percent respectively," AB Godrej, chairman explained.

The chemicals business, which reported 123.5 percent growth in earnings before interest and tax on revenue of Rs 349.50 crore (up 21 percent year-on-year), has benefited from various operational efficiency projects and by the full quarter operations at the new Ambernath facility. AB Godrej expects this trend to continue.

During the quarter, operating profit (EBITDA) jumped 54.3 percent to Rs 125 crore in the quarter gone by and margin expanded by 110 basis points to 5.4 percent.

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Repco Home Finance Q1 net profit rises 11.2%

It had stood at Rs 22.31 crore during the year ago period, Chennai-based Repco Home Finance said in a statement. For the financial year ending March 31, 2014, net profit stood at Rs 110.10 crore.

Repco Home Finance  has registered a 11.2 percent jump in net profit at Rs 24.81 crore for the first quarter ending June 30, 2014.

It had stood at Rs 22.31 crore during the year ago period, Chennai-based Repco Home Finance said in a statement. For the financial year ending March 31, 2014, net profit stood at Rs 110.10 crore.

Total income from operations for the quarter ending June 30, 2014 grew to Rs 156.04 crore from Rs 118.65 crore during the corresponding period of the previous year. For the fiscal ending March 31, 2014, total income from operations were at Rs 534.15 crore.

Loans sanctioned during the quarter ending June 30, 2014 amounted to Rs 481.14 crore as against Rs 357.50 crore in the year ago period.

Disbursements for the quarter grew by 24.18 percent to Rs 414.60 crore from Rs 333.88 crore registered during the same period of previous year.  There was a 30.58 percent increase in outstanding loans for the quarter ending June 30, 2014 to Rs 4,892.33 crore from Rs 3,746.71 crore registered in the same period of the previous year.

As of June 30, 2014 total borrowings were at Rs 4,081.51 crore as against Rs 3,057.04 crore in the corresponding quarter of the previous year.

Gross NPA as on June 30, 2014 was at 2.22 percent, while Net NPA stood at 1.60 percent during the period, the statement added.

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Dena Bank Q1 net slips 57% on lower other income, NPA jumps

Asset quality of the bank deteriorated with the gross non-performing assets (NPA) rising 151 basis points year-on-year (up 88 bps quarter-on-quarter) to 4.21 percent and net NPA increasing by 120 basis points on yearly basis (up 59 bps sequentially) to 2.94 percent in the quarter gone by.

Moneycontrol Bureau

State-controlled lender Dena Bank 's first quarter (April-June) net profit fell 57 percent to Rs 81.5 crore on lower other income and slow growth in net interest income but supported by lower tax cost and flat provisions. The profit in the year-ago period was Rs 189.2 crore.

Net interest income, the difference between interest earned and interest expended, increased marginally to Rs 612 crore in the quarter ended June 2014 from Rs 604.7 crore in corresponding quarter of last fiscal while other income (non-interest income) dropped 60.5 percent to Rs 144.42 crore from Rs 365.51 crore during the same period.

Asset quality of the bank deteriorated with the gross non-performing assets (NPA) rising 151 basis points year-on-year (up 88 bps quarter-on-quarter) to 4.21 percent and net NPA increasing by 120 basis points on yearly basis (up 59 bps sequentially) to 2.94 percent in the quarter gone by.

During the quarter, provisions were unchanged at Rs 228.1 crore on year-on-year basis but the same declined 60 percent compared to Rs 570.3 crore in previous quarter with the provision coverage ratio at 53.96 percent as on June 2014.

Operating expenses of the bank rose by 15.3 percent to Rs 442.63 crore from Rs 384 crore while tax expenses dropped significantly to Rs 4.17 crore in April-June quarter from Rs 168.9 crore in the year-ago period.

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Adani Ent turns corner, Q1 net at Rs 557 cr; revenue up 43%

Gujarat-based Adani Enterprises , which is engaged in the businesses of power, ports, agro and trading, has turned profitable with the first quarter consolidated net at Rs 556.7 crore on strong revenue growth and operational performance and despite exceptional loss, lower other income, higher finance, depreciation and tax costs. The loss in the year-ago period was Rs 278.3 crore.

"Improved performance has set the direction of growth as we see greater contribution from completed projects in ports, power and mining verticals," said Gautam Adani, chairman of Adani Group.

Consolidated total income from operations grew by 43.1 percent to Rs 16,524 crore in the quarter ended June 2014 from Rs 11,547 crore in same quarter last year driven by strong growth in trading, power and agro businesses.

Adani Enterprises holds 68.99 percent stake in  Adani Power and 74.99 percent in Adani Ports and Special Economic Zone ; hence the above earnings include numbers of both companies.

Exceptional loss represented the liquidated damages amounting to Rs 126.39 crore payable on account of delay in commercial operations date (COD) at Tiroda plant operated by Adani Power Maharashtra, said the company in its filing.

During the quarter, operating profit (excluding forex loss) jumped 52.8 percent year-on-year to Rs 3,156 crore and margin expanded by 120 basis points to 19.1 percent in the quarter gone by.

With continued focus on leveraging the benefits of increasing scale and operational efficiencies, Ameet Desai (group chief financial officer, Adani Group) expects further boost in operating performance in future.

According to him, power generation business has shown growth due to new capacities coming into operation coupled with enhanced PLF & improved operations. The company expects to achieve thermal power generation capacity of 9,240 MW very soon.

Other income of the company nearly halved to Rs 147.12 crore in the first quarter of current financial year 2014-15 from Rs 288.9 crore while forex loss declined to Rs 217.82 crore from Rs 337.91 crore during the same period.

Depreciation and amortisation expenses jumped 34.41 percent year-on-year to Rs 965.67 crore and finance cost rose 25 percent to Rs 1,453.88 crore and tax expenses shot up 67.84 percent on yearly basis to Rs 149 crore in the quarter gone by.

Segments		Q1FY15 (Rs cr)		Q1FY14 (Rs cr)		%Change
Trading		6786.08		4587.58		47.92
Power		5411.11		2567.2		110.78
Port		818		1277.2		-35.95
Agro		2126		1994.6		6.59
Others		1383.3		1120.08		23.50

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Eicher Motors' Q2 profit may double to Rs 184 cr: Edelweiss

Edelweiss estimates Eicher Motors' revenues to grow 31 percent year-on-year. "Revenue growth is expected to be driven by a sharp 87 percent YoY volume growth in Royal Enfield and 4 percent volume growth in commercial vehicles," it says.

Moneycontrol Bureau

Eicher Motors  will be announcing its second quarter results for calendar year 2014 on Monday. The company has been delivering very strong earnings due to spectacular performance of Royal Enfield division. That trend is likely to continue this quarter as well.

Edelweiss estimates profit after tax to jump 2-fold to Rs 184 crore and revenues to grow 31 percent year-on-year to Rs 2,186 crore during the quarter. "Revenue growth is expected to be driven by a sharp 87 percent YoY volume growth in Royal Enfield and 4 percent volume growth in commercial vehicles," it says.

The company follows January-December (calendar) as its financial year.

Consolidated operating profit margin is expected to expand 60 basis points quarter-on-quarter and 220 basis points year-on-year to 12.1 percent on the back of better operating leverage and benign commodity costs, says Edelweiss.

Analysts expect motorcycle volumes to double in the next three years. Antique expects 0.5 million motorcycles sales in CY16 versus 178000 in CY13.

In Q2CY14, Royal Enfield volumes jumped 87 percent year-on-year to 73,494 units and commercial vehicles volumes rose 4 percent to 11,308 units during the same period.

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'Will intervene when innocents are facing massacre'

President Barack Obama today said the US would intervene everytime it could to prevent "massacre of innocent people", justifying his decision to carry out targeted airstrikes in Iraq against Islamist militants.

"The US cannot and should not intervene everytime there's a crisis in the world. But when there's a situation like the one on this mountain -- when countless innocent people are facing a massacre, and when we have the ability to help prevent it -- the US cannot just look away," Obama said.

Also read: Obama says won't let Islamic militants create caliphate: NYT

"That's not who we are. We are Americans. We act. We lead," he said in his weekly address to the nation.

Thousands of families from the Yazidi minority community are trapped in the Sinjar mountains in north Iraq without food and water after fleeing the rampaging fighters of the Islamic State, also known as Islamic State of Iraq and Syria or ISIS.

Obama said he has directed US military to take action "to protect our American diplomats and military advisers serving in the city of Erbil."

His order to send warplanes back to Iraq, three years after pulling the last US troops out of the country, came after the IS made huge gains on the ground, seizing a dam and forcing a mass exodus of religious minorities.

"Thursday night, I made it clear that if they attempted to advance further, our military would respond with targeted strikes," Obama said. "We have Americans serving across Iraq, including our embassy in Baghdad, and we will do whatever is needed to protect our people."

The US operation began with air drops of food and water for thousands of people hiding from the Sunni extremist militants in a barren northern mountain range.

Many of America's allies backed the US intervention, pledging urgent steps to assist the legions of refugees.

"We have begun a humanitarian effort to help those Iraqi civilians trapped on that mountain. The terrorists that have taken over parts of Iraq have been especially brutal to religious minorities ? rounding up families, executing men, enslaving women, and threatening the systematic destruction of an entire religious community, which would be genocide," the US President said.

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13th Meeting of the FSDC Sub Committee - New Delhi

A meeting of the Sub Committee of the Financial Stability and Development Council (FSDC) was held today in New Delhi. Dr. Raghuram G Rajan, Governor, Reserve Bank of India, chaired the meeting. The meeting was attended by Dr. Arvind Mayaram, Finance Secretary; Dr. Gurdial Singh Sandhu, Secretary, Department of Financial Services, Dr. K.P. Krishnan, Additional Secretary, DEA; Shri U. K. Sinha, Chairman, Securities and Exchange Board of India (SEBI); Shri R. V. Verma, Officiating Chairman, PFRDA, Shri Ramesh Abhishek, Chairman, Forward Market Commission (FMC); Deputy Governors of RBI, Shri Harun R. Khan, Dr. Urjit Patel; Shri R. Gandhi and Shri S. S. Mundra; Executive Director of RBI, Shri Deepak Mohanty; and other officials.

The Sub-Committee reviewed the domestic macro economy and potential risks facing the financial system. A draft roadmap for creating standards and protocol for setting up account aggregation facility for financial assets was deliberated in the meeting.

The Sub-Committee reviewed the major decisions made in the union budget and discussed the road for implementing them. These included one single demat account for all financial assets; introduction of uniform KYC norms and inter-usability of KYC records across the financial sector; strengthening and deepening the markets for corporate bond, currency derivatives and interest rate futures; and participation of DFIs and FIIs in commodity market.

The Sub-Committee also reviewed the functioning of the various Technical Groups which are under its ambit.

Alpana Killawala
Principal Chief General Manager

Press Release: 2014-2015/293

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