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Alstom Projects India : A power equipment manufacturing company having interest in business of engineering, manufacturing, project management and supply of power generation equipment announced its third Q3 result for the financial year 2008 - 2009.
APIL reported a marginal rise in its standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company rose 4.25% to Rs 31.4 crore or Rs 313.80 million from Rs 30.1 crore or Rs 301.00 million in the same quarter, previous year. Its operating profit was at Rs 53.5 crore versus Rs 41.4 crore.
Net sales for the quarter rose 35.63% to Rs 538.2 crore or Rs 5,381.70 million versus Rs 396.8 crore, YoY, while total income for the quarter rose 33.60% to Rs 5,447 million, when compared with the prior year period.
The company reported earnings of Rs 4.68 a share during the quarter, registering 4.46% growth over prior year period.
Interest cost stood at Rs 0.10 million while depreciation cost rose 58.83% to Rs 95.30 million over previous year period.
According to latest report released by govt. body, in first fiscal stimulus package one there was Rs 10,000 crore of tax free bonds for India Infrastructure Finance Company Limited (IIFCL) and that has now been increased to about Rs 30,000 crore. There is a timeline of two years, 18-months and refinancing of Public-Private Partnership (PPP) projects etc.
IIFCL was incorporated on January 5, 2006, 2006, under the Companies Act 1956, as a wholly Government owned Company with an authorized capital of Rs. 2000 crore and paid-up capital of Rs. 1000 crore. Besides, the resource-raising program of the Company would have sovereign support, wherever required.
Govt. said, In order to give a boost to the corporate bond market, FII investment limit in rupee denominated corporate bonds in India has been increased from $6 bn to $15 bn. The most beneficiary sector of this package will be infrastructure and real estate companies, which are facing liquidity crunch.
The most disappointment outcome of this package was 20 lk cap, Hosing Sector and Public Sector banks both were asking for increasing 20 lakh cap to minimum 30 lakh cap that was been introduced in last fiscal package. But Planning Commission Deputy Chairperson Mr. MS Ahluvalia and the Finance Secretary said nearly 94% of home loans sanctioned are below the Rs 20 lakh bracket so it will not be hiked in this pack but they give a hint to increase it in next package.
To facilitate access to funds for the housing sector, the 'development of integrated townships' would be permitted as an eligible end-use of the ECB, under the approval route of RBI. NBFCs, dealing exclusively with infrastructure financing, would be permitted to access ECB from multilateral or bilateral financial institutions, under the approval route of RBI. Besides, ceiling on interest rates for such overseas borrowings has also been removed.
Credit targets of Public Sector Banks are being revised upward to reflect the needs of the economy in the present difficult situation. This will ensure flow of credit to the industry. The government will also closely monitor, on a fortnightly basis, the provision of sectoral credit by public sector banks.
For the export sector which has been hit by the recession in US economy, the government has extended the Duty Entitlement Passbook Scheme till December 31, 2009. Besides, duty drawback benefits on certain items including knitted fabrics, bicycles, agricultural hand tools and specified categories of yarn are being enhanced. These changes will take effect retrospectively from September 1, 2008. EXIM Bank which has obtained from RBI a line of credit of Rs.5000 crore and will provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
To give a leg-up to steel and cement sectors, the government has brought back countervailing duty on TMT bars and structural cement. These duties were exempted to provided to contain inflation. Full exemption from basic customs duty on zinc and ferro alloys, which was also provided to contain inflation, is also being withdrawn.
To boost the housing sector, the centre will work with state governments to encourage them to release land for low income and middle income housing schemes.
To boost the automobile sector, states, as a onetime measure up to June 30, 2009, will be provided assistance under the JNNURM for the purchase of buses for their urban transport systems. Accelerated depreciation of 50% will be provided for commercial vehicles to be purchased on or after January, 2009 up to March 31, 2009.
The government is closely monitoring its spending to expedite the pace of expenditure for all schemes and programmes. Government will set up a fast track monitoring committee to ensure expeditious approval and implementation of central projects and chief ministers are being advised to do the same.
An official statement said the measures outlined above taken together with steps taken earlier constitute a substantial counter-cyclical stimulus in the current year and added that the government does not envisage any further measures in the current fiscal year.
"However, Government is aware that the measures required to provide an economic stimulus to the economy have to extend beyond the current financial year. Towards this end, it is finalizing Plan and Non-Plan expenditure that will be required in the next financial year to maintain the tempo," it said.
The Plan for the next year will include proposals for recapitalization of the public sector banks of the order of Rs 20,000 crore over the next two years. This will help to ensure that the banking system will not suffer from capital adequacy constraints in order to provide credit growth needed to sustain the economic momentum in 2009-10.
The liberalizing of the ECB route has been a long standing demand of real estate developers, so they are clearly happy whether the current market scenario will actually make this a cosmetic change or do a lot more than that, the question mark still remains but clearly happy on that move.
Indices managed to close in green, though gave away most of the gains made during the day. However, Midcap and Small cap indices widely outperformed Sensex and Nifty. Sensex closed at 9958, up 55 points, while Nifty gained 13 points to close at 3046. It was a day of major policy announcements as much awaited interest rate cut and second Stimulus package amounting to Rs. 20000 cr., both came through. RBI cut the Repo rate and Reverse repo rate by 100 bps each while CRR was cut by 50 bps. As part of the second stimulus package government announced the liberalization of External commercial borrowing ECB policy. FII investment limit in corporate bonds has been hiked from USD 6 billion to USD 15 billion. Government will also form a SPV for liquidity aid against investment grade papers for NBFCs. PSU banks will work out larger credit line for commercial vehicle purchases by NBFCs.
The Sensex ended the day with a gain of 54.76 points, or 0.55% at 9,958.22 after touching a high of 10,070.28 and a low of 9,863.86. The broad-based NSE Nifty climbed 13.30 points, or 0.44% at 3,046.75 after hitting a high of 3,079.85 and a low of 3,021.80. BSE Midcap and Smallcap index rose 2.17% and 1.58% respectively.
Barring IT and Teck indices, which lost 1.2% and 1% respectively, all the sectoral indices ended with gains. Consumer Durable and Realty indices gained the most, up 2.4% and 2.1% respectively. Hindalco and DLF were the top gainers among the sensex, up 3.2% and 3% respectively, while Satyam and Bharti lost 2.6% and 2.1% respectively.
Buying demand in interest rate sensitive sectors on media reports that the government will announce a second stimulus package at about 18:00 IST today, 2 January 2009 to help shore up an economy and firm global markets boosted domestic bourses.
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