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,