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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4185)	5/1/1999 6:06:00 PM
From: Mohan Marette	Respond to of 12475

Indian market news & earnings report (consensed) for the week. Courtesy:Probity Research. News snippets (Domestic) * The cabinet announced dissolution of the parliament and called for fresh elections after Atal Bihari Vajpayee lost the “no confidence” motion by a single vote. The election commissioner has stated that the polls would be held by September '99. This will be the 3rd election in the last four years, each returning a split verdict. Will it be different this time? * Good news for consumers as the inflation rate touched its lowest in 71 weeks to 4.17% on Apr 10. Thanks to receding prices of food grains and petroleum products especially LPG. * Bad news for Maruti as the Supreme Court banned registration of cars not confirming to Euro-II emission norms in Delhi, beginning Apr 1, 2000. Petrol and diesel vehicles which do not meet Euro-I norms will be restricted to 1250 vehicles each per month from June 1, 1999. PAL, M & M, MUL and HM will be adversely affected. Only the new generation cars line Santro meet the Euro I norms. Even the MUL 800, cash cow of the MUL stable will be affected. This preponement, albeit environment friendly has not been taken lightly by car manufacturers. Second hand car prices will further ease. Other cities like Mumbai, Calcutta and Chennai might follow the directives and impose quantitative restrictions also. * Four states, in an unprecedented move signed MoUs with Union Finance Ministry on fiscal reforms. Punjab, Orissa, Himachal Pradesh and Rajasthan have committed themselves to a time bound hike in user charges for public utilities to cut expenses. In return, these states will receive additional assistance from center to meet their immediate requirements. * IFCI, the development financial institution overburdened under the weight of its NPAs is following the footsteps of big brothers ICICI and IDBI to convert itself into a full fledged bank. Equity dilution (Rights issue 1:1 at par) followed by debt mop up will happen in the next 6 months. * VSNL, India's monopoly service provider for ISD calls announced reduction of rates by 20-30% in line with TRAI guidelines. These rates will be effective from May 1, 1999. This reduction will increase the traffic and thus boost its earnings. * Henkel Spic, the Chennai based detergents company is planning a 1:2 rights issue at a premium of Rs40 per share. The current market price is Rs58. Net sales for Q1/99 was Rs442mn (+101%), and the net loss stood at Rs6.3mn. This infusion is needed to fund its long-term working capital requirements and marketing expenses. * FMCG major, Nestle announced a 31% rise in net profit (Rs205mn) for Q1/99. It also announced an interim dividend of Rs3.50 per share. Exports were affected because of economic crisis in Russia and Brazil. * About 8.1mn shares of IPCL were traded in a single deal on NSE for Rs680mn. Market rumors pointed Reliance's hand in the deal, but the company officials have denied it. Interest in the stock revived (which was languishing after the political uncertainty) after government announced that sell off will continue as planned. * Refinery stocks (HPCL, BPCL) were in limelight because of investment buying. The stocks were beaten to unrealistic levels, because of poor outlook for the refining sector and threat of government supply of paper. Also, rumors of bonus issue in HPCL were doing the rounds. * SAIL continues to bear the brunt of declining steel prices. It has witnessed a decline of 50% in steel exports, because it lost its traditional South East Asian market. This trend is likely to continue in the future also. * Pentafour announced a 1:1 bonus and a final dividend of Rs4 per share (total dividend of Rs7 per share) for FY99. Net profit has risen by 74% to Rs1.1bn * Wipro announced a 1 for 5 stock split, being the first company to take advantage of modified SEBI guidelines. * Compaq has bought over Digital Equipments hardware business for a consideration of Rs830mn (plus Rs50mn as non compete). Digital will now focus to become a leading software services company. This news was received positively by the stock market. * Bausch & Lomb has sold its sunglasses division (Rayban) to Italy's Luxottica group (owners of Armani). This implies that the Indian subsidiary will now get support from its new parent. This is the reason for the stock to rally last week. *********************************************************** Results announced this week Net sales PBIDT PAT Equity EPS E Merck 9903 (3) 615.5 84.9 17.6 168.6 4.2 9803 (3) 542.8 78.8 28.2 168.6 6.7 % yoy 13.4 7.7 (37.6) 0.0 (37.6) Cipla Ltd 9903 (12) 6167.7 1719.3 1,150.3 199.9 57.5 9803 (12) 5144.3 1360.1 1,019.7 199.9 51.0 % yoy 19.9 26.4 12.8 0.0 12.8 Knoll Pharma 9903 (3) 612.2 97.5 88.0 162.0 21.7 9803 (3) 517.7 74.8 (41.4) 81.0 (20.4) % yoy 18.3 30.3 - 100.0 - Essel Packaging 9903 (12) 1513.8 629.2 260.6 150.2 17.4 9803 (12) 1469.4 549.8 259.9 150.2 17.3 % yoy 3.0 14.4 0.3 0.0 0.3 Thomas Cook 9903 (3) 179.9 78.3 38.8 87.5 17.7 9803 (3) 162.9 70.6 34.2 87.5 15.6 % yoy 10.4 10.9 13.5 0.0 13.5 Nestle India 9903 (3) 3401.0 435.0 205.0 964.0 8.5 9803 (3) 3699.0 442.0 156.0 964.0 6.5 % yoy (8.1) (1.6) 31.4 0.0 31.4 Vashisti Detergents 9903 (12) 2215.9 107.5 50.0 513.7 1.0 9803 (12) 1558.3 78.0 18.2 513.7 0.4 % yoy 42.2 37.8 174.7 0.0 174.7 Procter & Gamble 9903 (9) 3714.2 760.0 459.1 216.4 28.3 9803 (9) 3402.2 650.5 334.5 216.4 20.6 % yoy 9.2 16.8 37.2 0.0 37.2 Marico Industries 9903 (12) 5512.1 529.3 375.1 145.0 25.9 9803 (12) 4900.2 463.5 300.4 145.0 20.7 % yoy 12.5 14.2 24.9 0.0 24.9 TVS Suzuki 9903 (12) 13131.8 1541.2 813.9 231.0 35.2 9803 (12) 10186.2 1450.5 687.6 231.0 29.8 % yoy 28.9 6.3 18.4 0.0 18.4 ***********************************************************