1. Tata Steel Profit Tops Estimates On One-Time Gain In March Quarter
Tata Steel Ltd returned to a profitable fourth quarter surpassing analyst estimates amid strong demand and buoyant global prices, aided by a one-time gain in the quarter ended March.
The Mumbai-based steelmaker’s profit rose to Rs 10,190 crore for the three months through March, compared to a loss of Rs 1,294 crore in the same quarter last year, Tata Steel said in an exchange filing on Wednesday, 16 May. That is higher than the Bloomberg consensus estimate of Rs 2,271.8 crore. The bottom line was aided by an exceptional gain of Rs 11, 376 crore, mostly as a result of restructuring of its UK pension scheme.
The profit boost comes at a time when the company has received approval from the National Company Law Tribunal to acquire the debt-ridden Bhushan Steel Ltd. Tata Steel had offered Rs 35,200 crore in cash, and conversion of the remaining debt of about Rs 27,000 crore into equity, to take over Bhushan Steel, in which the company will gold 72.7 percent stake.
(Source: BloombergQuint)
2. Air India to Phase Out Remaining 3 Classic A320s by December
Disinvestment-bound flag carrier Air India will phase out its remaining three Classic A320 planes which are nearly three-decade-old, from the fleet by the end of this year.
The airline had in April 2014 announced its plans to retire all 14 single-isle double-bogey wheel planes from its fleet in a phased manner after it decided to induct more fuel-efficient Airbus A320 neo planes into operations.
Air India has already removed 11 classic A320 planes out of operations and the remaining three such aircrafts will be going out of the fleet by December this year, a senior company official told PTI.
(Source: PTI)
3. April Sees 23% Jump in Venture Investments at $2.4 Bn
There was a 23 percent jump in venture investments in April at USD 2.4 billion, led by e-commerce, infrastructure and realty plays by funds, a report said on 16 May. Investments by private equity and venture capital funds had stood at USD 1.9 billion in the year before, the report by consultancy firm EY said.
The increase in activity was driven largely by a jump in deal sizes, it said, pointing out that going by the number of deals, there were 69 transactions this April as against 66 in the previous year.
"PE/VC deal activity in India continues to gather steam and become more robust. Both investments as well as exits are on an upward trend," EY's partner and leader for private equity advisory Vivek Soni said.
(Source: PTI)
4. Infosys Sets up Blockchain-Based Trade Network in India with 7 Banks
Infosys on Wednesday, 16 May said that it has set up India Trade Connect, a blockchain-based trade network in India, in partnership with seven lenders, including Axis Bank, ICICI Bank, IndusInd Bank and RBL Bank.
The other partner banks include Kotak Mahindra Bank, South Indian Bank and Yes Bank.
"The network is being used by the banks to run a successful pilot of Finacle Trade Connect, a blockchain technology-based solution developed specifically to address the trade finance process requirements of banks," Infosys said in a statement.
(Source: Business Standard)
5. SC Asks Jaypee to Deposit Rs 10 Bn More by June 15 for Refund to Homebuyers
The Supreme Court on Wednesday, 16 May, asked realty firm Jaiprakash Associates Limited (JAL) to deposit an additional Rs 10 billion with its Registry by June 15 to provide refunds to the hassled home buyers.
On submission of this amount, the liquidation proceedings against Jaypee Infratech Limited (JIL), a subsidiary of holding company JAL, shall remain stayed, a bench headed by Chief Justice Dipak Misra said.
The bench, which also comprised Justices A M Khanwilkar and D Y Chandrachud, said if there was any default in depositing the money by June 15, the statutory proceedings against JIL, which has been facing insolvency proceedings, shall proceed.
(Source: Business Standard)
6. Honda Bets on the New Amaze to Gain Market, Price Begins at Rs 559,900
Japanese car maker Honda wants the new generation of Amaze compact sedan to become its third leg of Indian market operations — the other two being the City mid-sized sedan and the WR-V compact sports utility vehicle.
Launched on Wednesday, 16 May, with an entry variant price of Rs 559,990 (petrol), Honda is confident that the new Amaze will help it corner a bigger share in the Indian compact sedan market, where rival Maruti Suzuki’s Dzire sits on a share of almost sixty percent. Dzire begins at a comparable price of Rs 556,000 (ex-showroom Delhi).
“We have got only positive reviews so far for the new Amaze. I believe it is going to be a game changer for us and replicate the success of the City. It may even overtake the City in volumes,” said Rajesh Goel, senior vice president and director (sales and marketing) at Honda Cars India.
(Source: Business Standard)
7. Private Power Producers Are Now Allowed To Switch Suppliers
A taskforce’s suggestion to allow private power producers switch coal suppliers was approved on 16 May, in a move aimed at lowering supply shortages and optimising transportation and generation costs.
Independent power producers such as Tata Power Co, Essar Group and Jindal Power Ltd will be able to move from one coal supplier to another “based on the availability during the fiscal and future production plan of the company”, a statement by the Coal Ministry said. Earlier, the source of coal was fixed if the company had signed a supply pact.
The exercise to rationalise coal linkages has the potential to reduce power costs for consumers since the savings will have to be passed on, according to Jayanta Roy, senior vice president and group head of corporate sector ratings at ICRA Ltd. By lowering the distance coal travels, the government also plans to reduce congestion for the railways, he said.
(Source: BloombergQuint)
8. JSW Steel’s Profit Rises Threefold In March Quarter
JSW Steel's March quarter profits rose nearly threefold on account of a one-time gain and improved performance of its subsidiaries in the US.
Net profit rose to Rs 2,996 crore in the quarter ended March from Rs 1,014 crore in the same period last year, according to its filings with the stock exchanges. That was much higher than the Rs 1,834 crore estimated by analysts tracked by Bloomberg. The bottomline was aided by a deferred tax credit of Rs 222 crores as compared to a tax expense of Rs 450 crore in the comparable quarter.
The revenue rose 25 percent to Rs 20,817 crore on a year-on-year basis driven by demand for long products coupled with higher utilisation levels.
(Source: BloombergQuint)
9. Deadlines Likely for Turnaround of PSU Banks Under RBI Watch
The government is looking to impose strict deadlines on banks that are under the Reserve Bank of India’s watch to implement a turnaround plan. This will include fixed targets for recoveries of bad loans, sale of non-core assets and a differentiated lending road map with each bank specialising in a particular area.
“These approved targets would be ratified by the boards of the respective banks and we expect a faster turnaround in some cases,” said a finance ministry official. The finance ministry on Thursday is scheduled to review the performance of around 11 banks under RBI’s prompt corrective action framework.
(Source: Economic Times)
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