Reliance Comm Sales Rise, India Elections

123jump.com Staff
30 Apr, 2009
New York City

Reliance Communications reported a decline in earnings as revenues increase 15% in the quarter. Reliance Capital net drops 14.3%. Videocon second quarter net plunged 71%. Voters in nine states including Maharashtra, Gujarat and Uttar Pradesh are voting today in India.

[R]5:00PM Mumbai, 7:30AM New York – Reliance Communications reported a decline in earnings as revenues increase 15% in the quarter. Voters in Maharashtra and Gujarat are voting today including several other states in India.[/R]

The election fever has gripped much of Maharashtra and Gujarat on the eve of parliament election. Mumbai stock markets were closed today as voting progressed in the state.

The voters are battling the issue of national security, sustained economic growth and curb of political corruption. The majority of 272 is needed to form the government and voters are selecting members of parliament of 543 members. The month long election will be wrapped up on May 13 and results are expected on May 16.

Neither leading parties the Congress or the BJP are expected to gain enough majority to form the government however the Congress led alliance has a slight edge in elections. Various polls are indicating that the ruling coalition may gather between 190 and 203 seats and BJP led alliance is likely to garner between 179 and 190 seats.

Indian voters are known to keep their votes private and in the past similar surveys have failed to predict elections.

Mumbai stocks have been resilient and are expecting an alliance between parties that will run the government and keep the current economic momentum. The huge stimulus is likely to help the economy to overcome the current weakness in exports and keep the economic growth between 5% and 6%.

Reliance Comm and Reliance Capital Net Drops

Reliance Communications reported revenues for the fourth quarter ended in March increased 15% to 6,120 crore rupees and from 5,310 crore rupees and net income of 1,450 crore rupees compared to 1,500 crore rupees. The net declined 3.3% after the company increased the network spending for the GSM standard. Bharti Airtel this week reported net income increased 21%.

Reliance Capital quarterly revenue for the three months ending in March rose to 883.20 crore rupees from 799.29 crore rupees and net income decreased to 331.44 crore rupees from 386.49 crore rupees.

Earnings Review

Apollo Tyres Ltd, tyre maker said fourth quarter sales rose 11% to Rs.1,110 crore from Rs.1,001 crore a year ago. Net profit in the quarter fell 21.95% to Rs.46.2 crore compared to net profit of Rs.59.2 crore a year ago.

Apollo Tyres Ltd, in the last one year traded as high as Rs.48.40 in May 2008 and as low as Rs.14.75 in February 2009. Based on the yesterday’s closing price of Rs.21.50 the company has market cap of Rs.10.84 billion.

Dena Bank, the provides treasury, corporate/wholesale banking, retail banking and other banking operations said fourth quarter total income grew 17.3% to Rs.1035.83 crore from Rs.882.98 crore a year ago. Net profit in the quarter rose 0.16% to Rs.111.17 crore compared to net profit of Rs.110.99 crore a year ago.

Dena Bank, in the last one year traded as high as Rs.64.95 in May 2008 and as low as Rs.24.40 in December 2008. Based on the yesterday’s closing price of Rs.37.10 the company has market cap of Rs.10.64 billion.

Ingersoll-Rand (India) Limited, a global solutions provider said fourth quarter total income slipped 9.3% to Rs.114.15 crore from Rs.125.91 crore a year ago. Net profit in the quarter plunged 33% to Rs.13.25 crore compared to net profit of Rs.19.70 crore a year ago.

Ingersoll-Rand (India) Limited, in the last one year traded as high as Rs.428.80 in August 2008 and as low as Rs.200.15 in March 2009. Based on the yesterday’s closing price of Rs.272.50 the company has market cap of Rs.8.60 billion.

K.S. Oils Limited, an India-based integrated edible oil company said fourth quarter sales rose 7% to Rs.88734 lacs from Rs.82945 lacs a year ago. Net profit in the quarter climbed 12% to Rs.4817 lacs compared to net profit of Rs.4308 lacs a year ago.

K.S. Oils Limited, in the last one year traded as high as Rs.84.50 in May 2008 and as low as Rs.30.00 in November 2008. Based on the yesterday’s closing price of Rs.45.95 the company has market cap of Rs.16.37 billion.

Videocon Industries Ltd, the flagship company of the Videocon Group said second quarter total income declined 13% to Rs.22206.00 million from Rs.25387.80 million a year ago. Net profit in the quarter plunged 71% to Rs.729.80 million compared to net profit of Rs.2512.20 million a year ago.

Videocon Industries Ltd, in the last one year traded as high as Rs.430.90 in May 2008 and as low as Rs.82.00 in March 2009. Based on the yesterday’s closing price of Rs.109.10 the company has market cap of Rs.25.03 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 334.49 or 3.94% to 8,828.26, Hang Seng index in Hong Kong increased 564.04 or 3.77% closed to 15,520.99, CSI 300 index in China higher 17.56 or 0.67% closed to 2,622.93. ASX 200 index in Australia increased 85.20 or 2.31% closed to 3,780.50. The KL Composite index in Malaysia higher 23.28 or 2.41% closed to 990.74.

The Kospi Index in South Korea increased 30.94 or 2.31% to close at 1,369.36. SET index in Thailand closed higher 8.19 or 1.69% to 491.69 and JSE Index in Indonesia increased 78.58 or 4.78% closed to 1,722.77. The Markets of India were closed today.

Europe Markets Review

In London FTSE 100 Index traded higher 85.14 or 2.03% to 4,274.73, in Paris CAC 40 Index increased 49.11 or 1.58% to 3,166.05 and in Frankfurt DAX index traded higher 118.85 or 2.53% to 4,823.41. In Zurich trading SMI increased 93.20 or 1.81% to 5,245.92.