Suzlon posts first profit in 14 quarters as expenses halves

Suzlon Energy late Friday posted its first profit in 14 quarters as expenses nearly halved and the company made one-time foreign currency gains.

   The wind turbine maker posted consolidated net profit of Rs 10.47 billion for the second quarter ended on Jun 30 compared with lose of Rs 7.51 billion same period a year ago.

   The company's total income was Rs 26.27 billion in the quarter under consideration compared with Rs 46.72 billion in the year ago period, while its total expenses nearly halved to Rs 25.22 billion in the June quarter compared with Rs 47.77 billion same period a year ago.

  The company also made a one-time foreign exchange gain of Rs 777.5 million compared with lose of Rs 292.4 million a year ago.

  Suzlon also said its consolidated net Debt (excluding foreign currency convertible bonds) was down to Rs 70.10 billion from Rs 148.21 billion as of Mar 31, 2015. It has also said that it has brought down interest cost down by 36% quarter-on-quarter.

   The company also said its net order intake has risen 28% on-year and 69% on-quarter to 188 MW with order book standing at 1.1GW worth Rs 68.39 billion.

  The board of directors also approved the proposal to issue bonds to the extent of Rs 50 billion subject to shareholders' approval.

   "Our Q1 performance reflects our turnaround journey. Our strategic vision incorporates the government's renewable energy target of 175 GW by 2022 and the conducive policy landscape ... This year, we expect to supply 100 turbines of the S111," said Tulsi Tanti, chairman, Suzlon Group in the release to the exchanges.

   The board also appointment of Kirti J Vagadia as Group CFO with effect from Aug 1, 2015 after the current CFO Amit Agarwal resigned, the release said.

   Friday, share prices of Suzlon Energy ended at 21.90, unchanged from previous close on the Mumbai Stock Exchange.

May extend fall on oversupply woes, weak demand

Crude futures on Multi-Commodity Exchange are likely to trade extend fall for sixth straight trading week on increasing supplies from global market and subdued demand from bulk consumers, analysts said.

  "Higher global supplies are likely to pressurise the prices of crude," said Madhavi Mehta, research analyst with Kotak Commodities.

  Global oil supply surged by 550,000 barrels per day in June, on higher output from both Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, International Energy Agency (IEA) said.

  World oil production jumped by 3.1 million barrels per day to 96.6 million barrels per day, with OPEC crude and natural gas liquids accounting for 60% of the gain. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.

  OPEC, which pumps about a third of the world's crude, said its total production rose in June by 283,000 barrels a day compared with May, to 31.38 million barrels, driven mainly by higher output from Iraq, Nigeria and Saudi Arabia.

  OPEC members pumped 31.25 million barrels per day in the second quarter against demand of 28.26 million barrel per day, the Reuters data showed.

  The OPEC produced around 3 million barrels per day above demand in the second quarter.

  Crude oil prices may also be under pressure on weak global demand forecast, analysts said.

  "Demand for crude oil is very weak s prices are likely to fall," Kaynath Chainwala, research analyst with Angel Commodities.

  Global oil demand growth is forecast to slow to 1.2 million barrels per day in 2016, from an average 1.4 million barrels a day this year, International Energy Agency (IEA) said in its oil market report (OMR).

  World oil demand growth appears to have peaked in the first quarter at 1.8 million barrels a day and will continue to ease throughout the rest of 2015 and into 2016 as temporary support fades.

  Meanwhile, US oil inventories rose by 1.9 million barrels to 462 million barrels for week ended Jul 24 compared with analysts' expectations for a decline of 184,000 barrels, data by American Petroleum Institute (API) showed.

  US fuel stockpile rose by 4.2 million barrels to 468.1 million barrels for week ended Jul 24 compared with analysts' expectations for a decline of 850,000 barrels, data by Energy Information Administration (EIA) showed.

  West Texas Intermediate, the US benchmark, for September delivery slumped 0.82% to $47.74 a barrel on the New York Mercantile Exchange for the week ended Jul 25.

  Brent, European benchmark for September contract plunged 3.28% to $52.83 per barrel, on the London-based ICE Futures Europe exchange for the week ended Jul 25.

  However, any movement in the local currency will also impact crude oil prices, analysts said.

  The local currency fell 0.15% to Rs 64.13/$1 in the week ended Jul 31.

  Crude oil is expected to find support at Rs 2,910-2,960 per barrel and resistance at Rs 3,180-3,300 per barrel, analysts said.

  Crude for August delivery traded in Rs 3,008-3,177 per barrel range in the past five trading session on the Multi Commodity Exchange.

 

Bharati Shipyards changes name to Bharati Defence and Infrastructure

Bharati Shipyard late Friday said it will change its name to Bharati Defence and Infrastructure Ltd, indicating the company's greater focus on defence business.

  "The Board of Directors of the company at its meeting held on Jul 31 ... to change name of the company from Bharati Shipyard Ltd to Bharati Defence and Infrastructure Ltd," the company said in the releases to the exchanges.

  The board has also decided to issue convertible warrants to the lender.   

   Friday, share prices of Bharati Shipyard closed at Rs 18.20, up 4.90% on the Mumbai Stock Exchange.

 

May extend fall on weak export demand, higher sowing

Cotton futures on Multi-commodity Exchange are likely extend fall for fifth straight trading week on subdued demand from bulk consumers and increased sowing prospects, analysts said.

   "Poor response from global markets will pressurise the prices of cotton," said Sudha Acharya, research analyst with Kotak Commodities.

  India's total export estimate was lowered to 7 million bales as compared to previous estimates of 9 million bales on weak demand from China. China is the biggest cotton importer from India.

  Domestic mills are also buying only according to their immediate requirement as most of the mills are not able to buy huge quantity due to their poor financial condition.

  Also, the USDA trimmed India's exports for 2015-16 to 4.70 million bales as compared to previous forecast of 5 million bales.

  The yarn demand from India continues to be low. Also, there has been a good drop in the exports of Yarn in India.

  In June 2015, according to China customs data textile and apparel exports fell 8.79% to $233.92 billion.

  Cotton prices may also be under pressure on increasing sowing prospects in the country, analysts said.

  Total area planted so far under cotton is higher by 30% as compared to previous year as per Ministry of Agriculture.

   Around 9.95 million hectare land was sown under cotton against the 7.61 million hectare of land which was sown under cotton during same period in last year.

Global

   "Better sowing for coming season is likely to boost the cotton output in India which may negatively affect the cotton futures in coming days," said Aurobindo Gayan, research analyst with Kotak Commodities.   

   Meanwhile, cotton export to China from India has declined by 56.72% in 2014-15, which has caused cotton prices in domestic market to fall drastically.

   In 2014-15 India exported only 2.6 million bales of cotton to China against 6.1 million bales in 2013-14.

   Citing the situation, Commerce and Industry Minister Nirmala Sitharaman said in the written reply to Rajya Sabha that due to this reason cotton domestic prices are ruling weaker as compared to the previous year and cotton policy adopted by China is the major cause for less imports.

   Moreover, India is likely to sell its cotton to Thailand too, after succeeding in selling cotton to Bangladesh.

   One of the biggest mills in Thailand has shown interest in buying cotton from India.

   According to the CCI officials, samples of cotton from India have approved and CCI is all set to get buyers from Thailand, besides Bangladesh.

  From global front, total sales of upland cotton was recorded to 91,500 RB during last week ended on Jul 16, up by 79% from the previous week and 64% from the prior four-week average.

   Increases were reported for Vietnam (50,800 RB, including 3,400 RB switched from Japan and decreases of 100 RB), South Korea (13,400 RB), Turkey (13,000 RB), and China (8,200 RB, including 4,400 RB switched from Vietnam and decreases of 300 RB).

  Global cotton prices for October delivery fell by 2.08% to 63.42 cents per pound for the week ended Jul 31.

  Cotton is expected to find support at Rs 15,500 and resistance at Rs 16,350 per bale next week, analysts said.

  Cotton for October delivery traded in Rs 15,970-16,170 per bale range in the past five trading session on Multi-Commodity Exchange 

Gold may extend 7-wk fall on Fed rate hike fear

Gold may extend fall for seven-straight trading week on fear that Federal Reserve may hike interest rate in this year following better than expected economic data and on weak investment demand, said analysts.

  "Gold will fall on US rate hike fear and on weak investment demand," said Kaynat Chainwala an analyst with Angel Commodities.

  Bullion prices will be under pressure as upbeat jobs data triggered fear that the Federal Reserve will be in course of raising interest rate in September.

  United States jobless claims came at 267,000 for the week ended Jul 24 compared to analysts' estimate of 270,000 and 255,000 a week ago, a government data showed.

  While, US gross domestic product annualized at 2.3% in second quarter compared to upward revision of 0.6% a quarter ago, a government data showed.

  On Thursday, the Federal Reserve reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further.

   The central bank said it was seeing "solid" job gains and maintained its view that economic activity was expanding "moderately", with the risks to the outlook "nearly balanced".

  "Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labour market continued to improve, with solid job gains and declining unemployment," FOMC statement said.

  The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term.

  Prices of the yellow metal will also be down as gold exchange trade fund (ETF) investors remained on sidelines despite lower price showing weaker investor interest, said analysts.

  Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell on Monday to 680.15 tons to 684.63 tons on Friday, its lowest level since 2008.   

   Gold prices are also expected to fall next week on expection of strong dollar, said analysts.

  Next week, dollar index, which measures the strength of greenback against its six major trading partners, expected to stay in the range of 98-98.5.

  Gold for October contract traded in Rs 24,705-25,263 per 10 grams range in this week.

  Resistance for October gold prices is seen at Rs 25,000-25,200 per 10 grams level and price may get support at Rs 24,350-24,100 per 10 grams level in next week, said Mihir Kansara a techinical analyst with Phillip Commodities.

  Prices of the silver are also expected to fall next week taking cues from gold and base metal prices, said analysts.

  In the last five trading sessions, silver for September delivery traded in Rs 33,566-34,250 per kilogram range.

   Resistance for September silver prices seen at Rs 34,500-35,500 per 10 grams level and price may get support at Rs 32,900-32,300 per 10 grams level in next week,

Maruti Suzuki total sales up 20.1% to 121,712 units in July

 Maruti Suzuki India Saturday said its total sales rose 20.1% to 121,712 units in July 2015 compared with total sales of 101.380 units same month a year ago.

  The car maker said in July, it sold total 110,405 units in the domestic market and 11,307 units in exports.

  This has taken the total sales so far till July in the current fiscal year to 463,041 units, up 15.4% from a year ago period.

  In the passenger car segment, Maruti Suzuki July sales rose 25.9% to 91,602 units from a year ago period, while utility vehicles sales rose to 6,916 units in July, up 22.8% from a year ago period.  

   

Edible oil/weekly:Soybean may fall on oversupply woes, weak soymeal demand

 Soybean prices may extend fall for a fifth-straight trading week on expectation of higher supply in domestic and international market and on declining demand for soymeal in export market, said analysts.

  "Soybean prices may fall on higher supply in domestic and from United States and on weak demand for soymeal," said Ajay Kumar Kedia an analyst with Kedia Commodities.

  Prices of the bean will be under pressure on oversupply woes following robust sowing data, said analysts.

  With the revival of monsoon during the second half of this month the overall sowing and crop conditions are comfortable in the country though deficient rainfall in some parts of the country is a concern.

  Kharif crop sowing stood at 76.48 million hectare until July 31, up 9% on year due to timely onset of monsoon and excess rains in June.

  Soybean area coverage during last week is higher by 1.07 million hectare to 10.63 million hectare compared to 9.56 million hectare in corresponding period of kharif 2014.

  Prices of the bean will also under pressure on expectation of higher supply from United States after the United States department of agriculture (USDA) rose 2015-16 United States soybean production forecast in its World Agriculture Supply and Demand Estimates report.

  The USDA hiked US, the world's biggest bean grower, 2015-16 production estimates to 105.7 million tons compared to 104.8 in the previous month estimates and 108 million tons a year ago.

  Prices of the bean will also be down on weak demand for the Indian soymeal in export market, said analysts.

  India soymeal exports in the month of June dropped 20.43% from a year earlier on higher prices of the soybean in the local market, data released from Solvent Extractors Association of India (SEA) showed today.

   Soybean oilmeal exports dropped to 2,098 tons in June compared to 2,637 tons for the corresponding period a year earlier, data from SEA of India showed.

  Soybean for August delivery traded in Rs 3,222-3,317 per 100 kilogram range in the past five trading sessions. Soybean for August delivery is expected to trade in Rs 3,060-3,380 per 100 kilograms on the National Commodity & Derivative Exchange next week.

  Crude palm oil may trade flat next week on on subdued demand for the oil in export market following weak Malaysia palm oil export data and on short covering, said analysts.

  Malaysia palm oil exports during July 1-20 dropped 15.52% compared to a month earlier on weak demand from China, India & Subcontinent and European Union.

  Malaysia palm oil exports slipped to 907,574 tons during July 1-20 compared to 1.07 million tons for the same period a month ago, Dow Jones reported citing data from Intertek, a private surveyor.

  Prices of the palm oil will also be down on higher supply in domestic market following robust imports data, said analysts.

  Crude palm oil imports climbed 11.54% to 571,495 tons in June compared to 512,358 tons in the same period a month ago, data release from the Solvent Extractors Association (SEA) of India showed.

  However, sharp fall in the crude plam oil prices will be cushioned by buying at lower level after prices plunged to near 3% in past two-trading weeks, said analysts.

  Domestic palm oil for August delivery slumped nearly 3% and traded in range of Rs 433.8-416.4 per 10 kilograms on the MCX, on weak demand.

  CPO for August delivery in the past five sessions traded in Rs 416.40-426.80 per 10 kilograms and may trade in Rs 412-434 per 10 kilograms range on the MCX in next week, said Harshal Mehta a techical analyst with Nirmal Bang.

  Soyoil prices may also fell next week on oversupply woes following robust imports, said analysts.

  Prices of the soyoil will be under pressure on oversupply woes following robust production data from Argentina, the world's third biggest soyoil producer, said analysts.

  The country produced 3.6 million tons of soy oil in the first half of the year, 3.5% more than the same period last year, the ministry data showed.

  India's soyoil imports jumped to 154,090 tons in June compared to 99,682 tons for the same period a year ago, data released by the SEA of India showed.

  Soyoil traded in Rs 565-579.50 per 10 kilogram range in the past five trading sessions. Soyoil for August delivery is expected to trade in Rs 564-592 per 10 kilograms rang next week on the National Commodity & Derivative Exchange (NCDEX), said Mehta.

  However, prices of the mustard seed, the main rabi crop, are expected to trade higher in supply worries and on improved China demand, said analysts.   

   According to latest USDA report, global rapeseed production is forecast to decline 3.5 million tons in 2015/16 as a slight decrease in area reduces total output to 68.1 million tons.

  In Europe, Oil World has estimated the production of 22 million tons as compared to 24.1 million tons in 2014/15.

  In domestic market prices of mustard seeds were also supported by lower supply after arrivals were low at 500,000 bags compared to 600,000 bags earlier.

  Prices of rape seed will also be supported by hope of improvement in demand from China after the Chinese government lifts a ban on Indian rapeseed meal which was imposed three years ago on quality concerns, Reuters reported Wednesday citing China's quarantine authority.

  Last month, both the countries have inked a sanitary protocol and agreed to ensure Indian meal meets Chinese standards, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), China's quality watchdog, said in a statement.

  RM seed for August traded in Rs 4,102-4,209 per 100 kilogram range for past five trading session. RM seed for August delivery may trade in Rs 4,140-4,280 per kilogram range next week, said Mehta.

Spices complex seen range bound on lack of export demand

 

  NEW DELHI, AUG 1 Prices in the spices complex seen range bound in the coming week in the absence of fresh export contracts and recent rains in various producing centres, said traders and analysts.

  India received 21% above normal rains during week ended Jul 29, according to India Met Department (IMD).

  Export contracts continued to be negligible as buyers are waiting market to settle down, said traders.

  Earlier traders were expecting that export demand will pick from gulf countries after the Ramzan, said an analyst.

  India is a major producer and exporter of spices. India's spices export grew 9% to 893,920 tons during 2014-15 as against 817,250 tons a year earlier, according to data from Spices Board.

JEERA SEEN DOWN

  Jeera prices may remain under pressure in the absence of export orders and comfortable stocks, said Subhrenil Dey, analyst with SMC Comtrade.

  "Jeera harvest will start in Syria and Turkey, the two other major producers, in August and it may impact demand of Indian jeera," said Dey.

  However, there are conflicting reports about the size of crop and the quality of jeera in the two countries, said a trader.

  Meantime, heavy rains in some parts of Gujarat hit trading activity there, said traders.

  Domestically, there is regular demand and market prices for lower quality jeera and revival of rains in western India may limit the trade operations and prospects of good sowing in next season, said a report from Angel Commodities.

  Jeera September resumed week lower at Rs 15,815 against the precious closing of Rs 15,935 per quintal. The contract fell to Rs 14,940 on Wednesday due to emergence of profit booking and weak buying support.

  However, towards week-end Sept contract recovered partially to Rs 15,475 per quintal on fresh buying.

  As per third advance estimate of Gujarat government jeera production in 2014-15 is estimated at 158,000 ton down 54.3% on year, according to a report from Angel Commodities.

  During 2013-14, the Gujarat jeera output was 346,000 ton, the report said.

  India is the leading jeera producer while Syria and Turkey are the other major producers.

  India's jeera export during 2014-15 rose to 155,500 ton from 121,500 ton a year ago, according to Spices Board.

  In Delhi physical market, jeera Ganesh declined to Rs 15,000-15,100 per quintal from Rs 15,600-15,700 per quintal on increased arrivals amid weak demand.

 

CHILLI MAY RANGE BOUND

  Prices of chilli are likely to move in a narrow range as traders are awaiting the report of sowing with the fresh spell of rains, said traders.

  Sowing of chilli is in progress in Andhra Pradesh and Telangana two main producing states of the country.

  "Initial reports are not promising but sowing may pick up in the coming days," said a trader.

  There were reports of export demand from Bangladesh and Malaysia in Guntur market, the trader added.

  Volume of business continued to be restricted on the National Commodity and Derivatives Exchange (NCDEX) due to lack of any positive report on export front.

  On NCDEX, Chilli Teja Sept contract resumed trading lower at Rs 9,298 per quintal and on Tuesday it recovered to Rs 9,320 on renewed support.

  Later, prices reacted to Rs 9,204 on selling pressure.

  In the Delhi spot market chilli teja ruled unchanged at Rs 10,800-11,000 per quintal.

  India exported 347,000 tons chilli in 2014-15 up 4% on year.

  India's 2014-15 chilli output is projected lower due to adverse weather while exports are rising due to poor output in China.

  Bangladesh, China, Srilanka, Malaysia, gulf countries are some of the major importers of Indian chilli.

CORIANDER- SELLING SEEN

  "Coriander prices may decline in the coming as selling is expected the present higher levels," said Vijay Sharma, a local trader.

  In producing centres of Rajasthan and Madhya Pradesh fresh rains were reported which may help sowing in the coming months, he said.

  "Coriander may decline as no fresh export buying is coming while stockiest may unload their stocks," said Dey.

  Last week, NCDEX has withdrawn the special margin on the commodity but it failed to push the prices up, said a trader.

  On the NCDEX, coriander September contract opened lower by Rs 43 to Rs 12,105 but improved to Rs 12,115 on the same day.

  However, on Thursday, the contract fell to Rs 11,300 on profit booking but later recovered to Rs 11,476 on Friday per quintal.

  In Delhi spot market coriander medium quality steady at Rs 11,500-12,500 per quintal.

India's 2014-15 coriander exports spurted to 46,000 tons up from 24,650 tons a year ago.

TURMERIC MAY DECLINE

  Turmeric prices are likely to remain easy as recent rains may brighten the crop prospects, said Dey.

  Turmeric acreage is reported higher in Tamil Nadu and Maharashtra while sowing operations are going on in Andhra Pradesh and Telangana, said a trader.

  Turmeric sowing in Andhra Pradesh stood at 49,000 hectare until Jul 22 as against 40,000 hectare a year ago.

  In Telangana nearly 63% sowing of turmeric as been completed, said a report of Angel Commodities.

  Turmeric acreage stood at 31,279 hectares in Telangana, the report said.

  Maharashtra, Andhra Pradesh, Telangana, Tamilnadu and Odisha are the main producing centres.

  On National Commodity and Derivatives Exchange (NCDEX), turmeric for September delivery opened marginally lower at Rs 6,972 per quintal and fell to Rs 6,750 on the same day on selling pressure.

  Later prices jumped to Rs 7,292 to close the week at Rs 7,236 per quintal.

  In the Delhi spot market turmeric single polish gattha improved by Rs 200 to Rs 7,600-7,700 per quintal on fresh demand from masala manufacturers.

  India's 2014-15 turmeric export stood at 86,000 ton up from 77,500 ton a year ago.

CARDAMOM MAY UP

  Cardamom prices are likely rule steady with higher possibilities of rising due to good export demand, said Sumit Bairathi.

  New crop supplies have starting rising the producing centre, said a local trader.

  "Exporters are main buyers in auctions to fulfill their export commitments. However, as soon as domestic buyers enter the market, prices will go up," hoped Bairathi.

  Weekly arrivals at auction centres are estimated around 450 ton.

  In the Delhi spot market cardamom Robin was traded at Rs 570-580 per kilogram.

(End)

Raymond net lose narrows in Q1 on higher revenue growth

Raymond after market hours Friday reported narrowing down of its consolidated net loss at Rs 137.2 million for the first quarter ended June 30 on account of high revenue growth.

  The garment maker had posted a consolidated net loss of Rs 328.5 million during the April-June period of previous financial year.

  Raymond's total consolidated income from the operation during the quarter under review increased by 2.27% to Rs 11.22 billion compared with Rs 10.97 billion during the same period a year ago.

  "The current quarter witnessed a subdued consumer sentiment in the domestic market and sluggish demand in the exports market, particularly in the garmenting and automotive segments," said Gautam Hari Singhania, chairman and managing director, Raymond

  Singhania also said that despite these challenges, Raymond has been able to register a marginal top-line growth at the consolidated level and margin improvement at EBITDA level.

  Friday, share prices of Raymond Ltd ended at Rs 469.30, up 1.97% on the Mumbai Stock Exchange.

Shriram Transport Finance Q1 net profit up 5% to Rs 3.21 bln

Shriram Transport Finance Company (STFC) on Friday said its net profit increased marginally by 5% to Rs 3.21 billion in the first quarter ended Jun 30 as the commercial vehicle financier's bottomline was dented by an increase in non-performing loans.

  The company's revenue registered a growth of 17% to Rs 23.52 billion compared with Rs 20.16 billion a year ago.

   Net interest margins, a measure of profitability, improved to 6.76% for the quarter as against 6.54% a year ago, however asset quality worsened in the last three months.

   On a sequential basis, bad loans have gone up to 4.1% of the loan book in the quarter from 3.8 % in March causing the company to make higher provisioning, which went up by 22% to Rs 3.96 billion for the quarter, compared with Rs 3.24 billion previous quarter.

  Friday, share prices of Shriram Transport Finance closed at Rs 890.05, up 3.18%, while the benchmark Sensex rose 1.48% to close at 28,114.56 on the Mumbai Stock Exchange.