Exports Drop; Stubborn Deficit in India

123jump.com Staff
01 May, 2009
New York City

Exports, imports and trade deficit in India declined in March. Annual fiscal trade deficit, though smaller than previous year still remain at elevated level. Third phase of election was completed in nine states in India in low voter turnout.

[R]5:00PM Mumbai – Exports, imports and trade deficit declined in March. Annual deficit, though smaller than previous year still remain at elevated level. Third phase of election was completed in nine states in India amidst low voter turnout.[/R]

The scorching heat and sporadic violence may have kept voters away from booths as the third phase of election comes to an end in India. The fourth and fifth phase will be held on May 7 and May 13.

Early signs indicates that only half of the people who were eligible to vote casted their ballots, which is low by historic standards. Indians do vote and generally two thirds of eligible voters do participate. Election results are harder to predict with low turnout in nine states where 144 million voters were eligible in the Lok Sabha election where 543 parliament seats are contested.

Markets when resume trading on Monday are likely to focus on global events and performance of exports and oil and commodities prices.

Weak International Trade

Exports in March dropped 34% from a year ago month to $15.56 billion after dropping 21.7% in February. Imports in the month also declined 34% and trade deficit dropped to $4.04 billion from $6.3 billion. A sharp fall in crude oil prices helped crude oil imports to fall 58% in the month. India imports nearly 65% of its energy needs.

For the fiscal year ending in March, exports increased 3.4% to $168.7 billion and government has set a target of $170 billion in the current fiscal year. For the year, trade deficit widened to 119 billion from $88.5 billion a year ago despite a sharp fall in crude oil prices.

India has registered consecutive annual trade deficit for nearly two decades. With the weak global economies, exports from India started declining in October and are expected to remain weak at least another five to six months.

Imports linked to the domestic economy also declined nearly 19%. The weak imports of machinery, industrial chemicals and equipments also suggested that the domestic economic growth may not be higher than 5%.

Earnings Review

CESC Limited, provider of generation and distribution of electricity said fourth quarter total income rose 14% to Rs.7750 million from Rs.6790 million a year ago. Net profit for the quarter rose 9.3% to Rs.940 million compared to net profit of Rs.860 million a year ago.

Total net income for the fiscal year 2008 rose 10% to Rs.31940 million from Rs.29040 million a year ago. Net profit for the year rose 15.5% to Rs.4100 million compared to net profit of Rs.3550 million a year ago.

CESC Limited, in the last one year traded as high as Rs.511.90 in May 2008 and as low as Rs.165.00 in October 2008. Based on the yesterday’s closing price of Rs.233.30 the company has market cap of Rs.29.15 billion.

DLF Limited, India’s largest-listed real estate firm said fourth quarter revenues fell 69% to Rs.13.5 billion from Rs.43.7 billion a year ago. Net profit for the quarter fell 93% to Rs.1.59 billion compared to net profit of Rs.21.8 billion a year ago.
Revenues for the fiscal year 2008 fell 28% to Rs.105.4 billion from Rs.146.8 billion a year ago. Net profit for the year fell 41% to Rs.46.3 billion or Rs.27.17 per diluted share compared to net profit of Rs.78.1 billion or Rs.46.90 per share a year ago.

DLF Limited, in the last one year traded as high as Rs.739.00 in May 2008 and as low as Rs.124.15 in February 2009. Based on the yesterday’s closing price of Rs.230.90 the company has market cap of Rs.391.89 billion.

Firstsource Solutions Limited, the BPO services provider said fourth quarter total income rose 25.7% to Rs.4,723 million from Rs.3,756 million a year ago. Net profit for the quarter rose 94.8% to Rs.409 million or Rs.0.95 per diluted share compared to net profit of Rs.210 million or Rs.2.50 per share a year ago.

Total net income for the fiscal year 2008 rose 34.7% to Rs.17,494 million from Rs.12,988 million a year ago. Net profit for the year fell 76.7% to Rs.307 million or Rs.0.72 per diluted share compared to net profit of Rs.1,316 million or Rs.2.83 per share a year ago.

Firstsource Solutions Limited, in the last one year traded as high as Rs.50.80 in August 2008 and as low as Rs.9.50 in January 2009. Based on the yesterday’s closing price of Rs.15.60 the company has market cap of Rs.6.68 billion.

Moser Baer India Limited, the optical storage device maker said fourth quarter total income rose 7% to Rs.519.85 crore from Rs.486.80 crore a year ago. Net profit for the quarter was Rs.42.93 crore compared to net loss of Rs.71.71 crore a year ago.

Total net income for the fiscal year 2008 rose 16% to Rs.2324.10 crore from Rs.2001.73 crore a year ago. Net loss for the year was Rs.128.54 crore compared to net profit of Rs.78.91 crore a year ago.

Moser Baer India Limited, in the last one year traded as high as Rs.201.30 in May 2008 and as low as Rs.41.10 in March 2009. Based on the yesterday’s closing price of Rs.66.00 the company has market cap of Rs.11.11 billion.

Nagarjuna Fertilizers and Chemicals Limited, the manufacturer and supplier of plant nutrients in India said fourth quarter sales fell 8% to Rs.54114.13 lacs from Rs.58903.16 lacs a year ago. Net profit for the quarter rose 904% to Rs.1261.98 lacs or Rs.0.29 per diluted share compared to net profit of Rs.125 lacs or Rs.0.03 per share a year ago.

Net sales for the fiscal year 2008 rose 8% to Rs. 237190.61 lacs from Rs. 219359.08 lacs a year ago. Net loss for the year rose 44% to Rs. 3241.44 lacs or Rs.0.76 per diluted share compared to net profit of Rs. 2249 lacs or Rs.0.51 per share a year ago.

Nagarjuna Fertilizers and Chemicals Limited, in the last one year traded as high as Rs.53.95 in April 2008 and as low as Rs.12.75 in December 2008. Based on the yesterday’s closing price of Rs.22.35 the company has market cap of Rs.9.57 billion.

Patni Computer Systems Limited, the provider of information technology services said first quarter revenues rose 12.7% to Rs.7.95 billion from Rs.7.06 billion a year ago. Net profit for the quarter rose 5% to Rs.760.7 million or Rs.5.93 per diluted share compared to net profit of Rs.724.6 million or Rs.5.20 per share a year ago.

Patni Computer Systems Limited, in the last one year traded as high as Rs.287.50 in May 2008 and as low as Rs.94.00 in March 2009. Based on the yesterday’s closing price of Rs.161.55 the company has market cap of Rs.20.70 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 149.11 or 1.69% to 8,977.37. ASX 200 index in Australia decreased 10.90 or 0.29% closed to 3,769.60. The JSE Index in Indonesia increased 6.82 or 0.40% closed to 1,729.58.

The Markets of South China, Hong Kong, India, Malaysia, Korea, Thailand and India were closed today.