EQUITY UPDATE: 28 JULY 2012

ASIA

China is considering shutting down operations of co.’s which are nearing bankruptcies in an attempt to increase competitiveness and transform the automotive sector. The industry is faced by overcapacity and the government plans to overhaul the industry. (China Daily)

PetroChina – Co. concluded an agreement with Qatar Petroleum to acquire 40 percent exploration and production rights from GDF Suez Exploration Qatar B.V. (China Daily)

INDIA

FII’s made gross purchases of INR 2,812.53cr, gross sales of INR 2,248.81cr. DII’s made gross purchases of INR 881.56cr vs. previous INR 1,136cr. (Business Standard)

According to business and knowledge provider Dun and Bradstreet, India’s GDP to cross USD 5 trillion mark by 2020 despite the slowdown in economy. The report further said that the slowdown in economy to continue till FY15, after which the economy is expected to move into a high growth phase. Share of investment to GDP is expected to increase 40.7 per cent of GDP in FY20 versus 36.6 per cent in FY10. (Economic Times)

The Government of India is expected to decide on the issue of multi-brand retail investments in India. Commerce Minister Anand Sharma stated that it would seek a consensus of all farmers, stakeholders and SME’s before arriving at a conclusion. (Business Standard)

SBI – Banking firm SBI’s Chairman Pratip Chaudhuri stated that the quality of its assets would be improving on a y/y basis as it prepares to file its results on 8th August. The assurance came in the wake of rising NPA’s of PSU banks which prompted investors to sell shares of the co. in today’s trade. (Business Standard)

ITC – Co. plans to invest a total of INR 25,000 cr in the coming 5 years. It looks at a total of 40 projects covering research and development, consumer product marketing and export related services. (Business Standard)

Suzlon Energy Ltd – Co. redeemed its USD 360m of foreign currency convertible bonds, with the help of new loans of USD 300m and the balance was met through internal controls and sale of wind farm assets. (Reuters/Yahoo)

MRPL – Co. stated that it does not plan to decrease its oil imports from Iran inspite of the sanctions imposed on the country. The co. said that it faced problems while receiving shipments and obtaining insurance on cargo due to the sanctions. (Economic Times)

Deccan Chronicle Holdings – Co.’s promoters have pledged 54 per cent stake in co. to Future Capital, at closing price of INR 22.9 the transaction is believed to be worth INR 258.43cr. (Financial Express)

Pipavav Defence – Neelanchal Mercantile Pvt Ltd bought 3,500,000 shares in co, at a price of INR 62.41on NSE. (MoneyControl)

INDIAN EARNINGS

Dena Bank – Co. reported 1Q12-13 net profit at INR 239cr vs. previous INR 168cr. Net interest income at INR 612cr vs. previous INR 447cr. (The Hindu Business Line)

IRB Infrastructure – Co. reported 1Q12-13 net profit at INR 141.84cr vs. previous INR 134.18cr. Revenue at INR 1,012cr vs. previous INR 830cr in 1Q11-12. (Business Standard/PTI)

Nestle India – Co. reported 2Q12 net profit at INR 245.97cr vs. previous INR 213.83cr. Total income at INR 1,997.87cr vs. previous INR 1,771.03cr. (Business Standard/PTI)

Thomas Cook – Co. reported 2Q12 net profit at INR 31.01cr vs. previous 2Q11 net profit INR 21.46cr. Consolidated total income at INR 133.46cr vs. previous INR 104.81cr. (MoneyControl)

Trent Ltd – Co. reported 1Q12-13 net profit at INR 13cr vs. previous 1Q11-12 at INR 10cr. Net sales at INT 218cr vs. previous INR 178cr. (The Hindu Business Line)

TVS Motors – Co. reported 1Q12-13 PAT at INR 51cr vs. previous INR 59cr. Revenue at INR 1,820cr vs. INR 1,746cr. (The Hindu Business Line)

Zydus Wellness – Co. reported 1Q12-13 consolidated net profit at INR 13.49cr vs. previous 1Q11-12 net profit at INR 8.45cr. Consolidated total income at INR 94.56cr vs. previous INR 90.96cr. (Business Standard/PTI)

TajGVK – Co. reported 1Q12-13 net profit at INR 5.74cr vs. previous INR 12.59cr. Income from operations at INR 62.46cr vs. previous INR 58.96cr. (The Hindu Business Line)

EUROPE

According to a Reuters report, Spain might need a bailout of around EUR 300b from the IMF and European Union combined, if its borrowing costs remained unsustainably high. The bailout issue was discussed between Spanish finance minister Luis de Guindos and German finance minister Wolfgang Schaeuble. However the German finance minister Wolfgang Schaeuble was unwilling to consider a rescue before the permanent bailout fund was setup. (FoxBusiness/ Dow Jones Newswire)

The French afternoon daily Le Monde reported that , Euro Zone governments and European Central Banks are preparing to jointly intervene on the financial markets to bring down Spanish and Italian borrowing costs. According to a source, ECB was willing to participate if European governments agreed to tap in the bailout funds, i.e. European Stability Facility and the European Stability Mechanism. The intervention would involve activating EFSF to purchase Spanish and Italian debt on  the primary market and ECB at the same time purchase Spanish and Italian debt on the secondary market. The plan was days or possibly weeks away from being finalised. (Fox Business/Reuters)

IMF’s James Daniel warned that the Spanish government could lose market access if it fails to rein in its budget deficit and capital outflows. (Fox Business/Dow Jones Newswire)

Barclays Plc – Co. stands to face two new charges of pertaining to its 2008 Mid-East capital raising issue and wrongful selling of hedging products to small business operators. The Mid-East ops pertain to the lack of adequate disclosure of fees it paid to the Qatar Investment Authority in 2008 when the institution acquired a stake in the bank. These involve a GBP 4.5 b capital infusion in June followed by a GBP 7.3 b funding in October. (Financial Times)

Allied Irish Bank – Co. reported 1HY12 loss of EUR 1.1 b vs prv loss of EUR 3 b y/y on faulty loans and issued a warning that the weak economy could cause defaults to rise. The co. plans to cut 2500 jobs in an attempt to cut costs. Variable mortgage rates were hiked in Ireland to 3.5 percent vs 3.0 percent previously, to boost lending. Provisions for bad loans declined 70 percent y/y to EUR 900 m. (Financial Times)

Bosch Ltd – Auto component manufacturer plans to temporarily suspend its operations at its plants in Bangalore and Nasik to avoid inventory pileup. The Bangalore plant stands to be closed for 3 days beginning today while the Nasik plant would be shut for 2 days this week. (Economic Times)

Heineken – Dutch brewer is to give its acquisition target Fraser & Neave an additional week to consider its USD 4.1 b takeover offer of its subsidiary Asia Pacific Breweries. (Straits Times)

NORTH AMERICA

Ford Motor – Co. recalled over 480,000 sports utility vehicles Escape as they developed problems related to vehicle acceleration. (Straits Times)

NORTH AMERICAN EARNINGS

Chevron Corp – Co. reported 2Q12 net profit at USD 7.21b vs. previous 2Q11 profit at INR 7.73b. EPS at USD 3.66 per share vs. estimated USD 3.24 per share vs. previous USD 3.85 per share. Revenue at USD 62.61b vs. estimated USD 68.56b vs. previous USD 68.6b. (CNBC/Fox Business)

Merck – Co. reported 2Q12 profit at USD 1.82b vs. previous USD 2.05b in 2Q11. EPS at USD 58 cents vs. previous USD 65 cents. Excluding one-time items co. earned USD 1.05 per share vs. estimated USD 1.01 per share vs. previous USD 95 cents. Revenue at USD 12.31b vs. estimated USD 12.15b. Co. affirmed its full year non-GAAP EPS at USD 3.75 to USD 3.82 per share vs. estimated USD 3.82. Co. expects six major filings over the next 18 months. (Fox Business)

Amazon .com – Co. reported 2Q12 net income at USD 7m vs. previous USD 191m. Revenue at USD 12.83b vs. estimated USD 12.88b vs. previous USD 9.91b. For 3Q12 co. expects an operating loss between USD 50m to USD 350m and revenue at USD 12.9b to USD 14.3b vs. estimated USD 14.1b. (CNBC)

Facebook Inc. – Shares of the co. declined 40 percent in trade to lows of USD 22.28 a share on lower earnings and declining growth. The co.’s business is faced with stiff competition from mobile based devices which has hurt the co’s operations. EPS came in at 12 cents a share on revenues of USD 1.18 b, in line with expectations. Ad revenues also fell 36 percent to USD 992 m in its first earnings report as a publicly filing co. (Financial Times)

Anglo American – Co. saw its 1HY12 profits decline 55 percent to USD 2.9 b as the mining industry faced a no. of problems; co. suffering a iron ore project delay and falling prices of commodities. Revenues declined 10 percent to USD 16.4 b. The co. plans on a capex of USD 5.5 b vs USD 7 b pledged previously. EPS declined to 98 cents vs USD 3.30 a share. An interim dividend of 32 cents vs 28 cents prv, was declared. (Financial Times)

 



Categories: Earnings, Indian Earnings, North American Earnings

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