Down but not out

India Inc has slowed down in the June 2007 quarter. A sectoral analysis of Q1 FY08 results and what to expect.

After running at a breakneck speed for several quarters, India Inc’s financials have taken a breather. In the June 2007 quarter, our universe of 942 companies, excluding banks, financial services, oil and gas companies, and with a turnover of more than Rs 25 crore have shown the slowest growth in terms of almost all parameters like net sales, operating profit and net profit.

Net sales and operating profit (excluding other income) have grown at 19.5 per cent and 18.8 per cent year-on-year respectively-the slowest since last four quarters starting June 2006 quarter (Click here to see table: Stocks in Focus).

As a result, operating profit margins declined marginally by 11 basis points year on year, thanks to a small rise in total expenditure. However, a growth of 32 per cent in net profit has been maintained on a year-on-year basis, thanks to higher other income, declining interest cost and lower increase in depreciation costs.

Read more in Business Standard

Import duties on portland cement abolished

n the latest attempt to contain inflation, the government today made cement imports duty-free. It also indicated its willingness to remove the dual excise duty structure on cement announced in the recent budget.

The government has also abolished with immediate effect the countervailing duty of 16% on 65% of the import price and 4 % additional customs duty on the remaining 35% of portland cement, which is widely used in construction. The countervailing duty has been removed to make cement imports cheaper so as to contain domestic prices.

At the moment, cement imports are insignificant. The duty cut is expected to increase cheaper imports, thereby increasing supplies.

Meanwhile, the government has kept an open mind on rolling back the dual excise duty structure, said Hema Ambika Priya, spokesperson, Central Board of Excise and Customs.

Read more at Business Standard

FM talks tough, asks cement cos to cut prices

Finance Minister P Chidambaram today asked cement manufacturers to cut prices claiming that a section of them was keen to co-operate with the government in this regard.

"We have information how much your (cement makers) sales have increased. How much your PBT has increased. How much your PAT has increased. So, you should come forward with some proposals (on moderating cement prices)," Chidambaram told reporters after meeting a delegation of cement companies.

The Finance Minister had called cement manufacturers for the second time after the Budget, which imposed dual excise duty structure on cement to rein in prices. The budget hiked excise duty to Rs 600 a tonne from Rs 400 if cement is sold higher than Rs 190 per bag of 50 kg and reduced it to Rs 350 per tonne if sold up to Rs 190. The move, however, failed as cement makers hiked prices by up to Rs 12 per 50 kg bag.

Chidambaram asked the industry to co-operate with the government to fight inflation, which has touched 6.46% for the week ended March 3 with cement prices increasing at the rate of 4.4%.

Read more at Business Standard

ABN Amro raises stake in India Cements

India Cements Ltd said on Thursday ABN Amro Bank has acquired 2 million shares or a 0.91 per cent stake in the company to raise its stake to 5.09 per cent.

FM talks tough, asks cement cos to cut prices

Finance Minister P Chidambaram today asked cement manufacturers to cut prices claiming that a section of them was keen to co-operate with the government in this regard.

"We have information how much your (cement makers) sales have increased. How much your PBT has increased. How much your PAT has increased. So, you should come forward with some proposals (on moderating cement prices)," Chidambaram told reporters after meeting a delegation of cement companies.

The Finance Minister had called cement manufacturers for the second time after the Budget, which imposed dual excise duty structure on cement to rein in prices. The budget hiked excise duty to Rs 600 a tonne from Rs 400 if cement is sold higher than Rs 190 per bag of 50 kg and reduced it to Rs 350 per tonne if sold up to Rs 190. The move, however, failed as cement makers hiked prices by up to Rs 12 per 50 kg bag.

Read more at Business Standard

Hound hoarders, act: Finmin

Pushed past his limit of tolerance for inflation, Finance Minister P Chidambaram said the government will neither plead helplessness nor remain passive to rising cement prices, while asking states to act against those hoarding primary articles.

Winding up the debate on Budget 2007-08 in Lok Sabha amid noisy protest by the Opposition, the minister said the government "cannot plead helplessness or remain passive" to abnormal rise in prices of the construction material.

Read more at Financial Express