Tag: FY17

Housing credit growth moderates to 16% in FY17: Icra

20/06/2017 16:53

Total housing credit growth moderated to 16 per cent in the financial year 2016-17 due to lack of new project launches and as investors deferred their home purchase decisions, according to rating agency Icra.

In the financial year ended March 2016, the housing credit grew by 19 per cent.

Overall housing credit stood at Rs 14.4 trillion as on March 31, 2017 as against Rs 12.4 trillion as on March 31, 2016.

“The growth in the sector (in FY17) was impacted by a slowdown in new project launches with buyers and investors deferring their home purchase decisions in expectation of a decline in real estate prices,” Icra said in a report here today.

While the slowdown was across both housing finance companies (HFCs) and banks, the decline in the pace of growth of the latter was higher – from 18 per cent in FY 2016 to 15 per cent in fiscal 2017. It was largely because banks were operationally tied up in second half of FY 2017 on account of demonetisation, the report said.

“HFCs operating in the affordable housing space, with a total portfolio of Rs 1.2 trillion, continued to grow at a faster pace of 28 per cent in the previous fiscal compared to the industry,” Icra’s senior vice president and group head (financial sector ratings), Rohit Inamdar, said.

HFCs’ growth was supported by increase in supply due to launch of affordable housing projects and the infrastructure status accorded to the sector. They were also helped by the improved borrower affordability supported by lower interest rates and the credit-linked subsidy scheme, Icra said.

Traditional lenders that have historically focused on the prime segment have also started lending to this segment, the report said.

The rating agency expects affordable housing finance to continue to outpace the industry, going forward as well.

Icra expects HFCs’ gross non-performing assets (NPAs) to remain range-bound between 0.9-1.3 per cent in the current financial year.

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Lumax Ind cons net dips 41% at Rs 7.10 cr

Lumax Ind cons net dips 41% at Rs 7.10 cr

15/05/2017 12:56

Lumax Industries, a pioneer in automotive lighting and illumination products, on Monday reported a 41 per cent decline in its consolidated net profit at Rs 7.10 crore in the fourth quarter ended March 31, 2017 due to decline in the performance of the associate company.

“The company had posted consolidated net profit of Rs 12.12 crore during the same period last year,” said Lumax Industries in a filing to the Bombay Stock Exchange.

The consolidated total income of company rose by 20 per cent to Rs 385.95 crore in Q4 FY17 from Rs 323.21 crore in Q4 FY16.

“The consolidated results have been affected on account of decline in profitability of SL Lumax, associate company, due to price reduction,” it said in the filing.

However, on the standalone basis the company has posted a 3 per cent year-on-year rise in its net profit at Rs 10.68 crore from Rs 10.34 crore in the year ago period.

For FY 2016-17, the company has posted consolidated net profit of Rs 55.22 crore as against total revenue of Rs 1300 crore.

Meanwhile, shares of company were trading at Rs 1490.00 apiece, up 1.53 per cent, from the previous close on the BSE at 13:15 hour.

MF folio count climbs 77 lakh to record 5.54 crore in FY17

04/05/2017 15:24

Mutual fund houses added over 77 lakh investor accounts in 2016-17, taking the total tally to a record 5.54 crore on growing interest of retail as well as HNI investors, reported PTI.

In comparison, 59 lakh folios were added in the preceding fiscal. In the last two years, investor accounts have increased following robust contribution from smaller towns.

Folios are numbers designated to individual investor accounts, though an investor can have multiple ones.

According to data from Association of Mutual Funds in India (Amfi) on total investor accounts with 42 active fund houses, the number of folios rose to a record 5,53,99,631 at the end of March 2017, from 4,76,63,024 at the end of March 2016, a gain of 16 per cent or 77.37 lakh.

Growing participation from retail as well as HNI (high networth individuals) categories have helped in raising overall investor accounts, FundsIndia.Com Head of Mutual Fund Research Vidya Bala said as per the media reports.

Individually, HNIs’ folios rose by 39 per cent to 25.12 lakh.

Last fiscal saw a surge in the number of retail investor accounts, which comprises equity, equity-linked saving schemes and balanced categories, by 15 per cent to 5.23 crore.

“The fiscal year 2016-17 saw retail and HNI folios touching the highs of March 2010. These folios took almost six years to get back to the March 2010 levels of 4.76 crore. They crossed this mark in June 2016 and as of March 2017 stood at 5.48 crore,” she added.

Overall, the country’s mutual fund industry managed an asset base of over Rs 18 lakh crore. It is likely to cross Rs 20 lakh crore in the current fiscal.

Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.

SME IPOs catch investors eye, raise Rs 811 cr in FY17

SME IPOs catch investors eye, raise Rs 811 cr in FY17

24/04/2017 11:16

Small and medium enterprises (SMEs) raised a staggering Rs 811 crore through initial public offerings in 2016-17, more than two-fold jump from the preceding fiscal, reported PTI.

The huge fund-raising can be attributed to reforms and initiatives taken by the government to encourage the SME sector.

Funds raised through the issue were used for business expansion plans, working capital requirements and other general corporate purposes.

A total of 80 companies got listed with initial public offers (IPOs) worth Rs 811 crore in the last fiscal as compared to 46 firms which tapped the IPO route to garner Rs 304 crore in 2015-16.

In 2014-15, 37 firms made debut on the SME platform and raised Rs 271 crore. These companies are listed on the small and medium enterprise platforms of BSE and NSE.

“SME capital market is witnessing participation from wider class of investors and the trend is expected to continue. Even institutional investors have started showing interest in SME investing and the market looks up to them with expectation.

“Most of the listed SMEs have added value to shareholders,” Pantomath Group Managing Director Mahavir Lunawat said.

Geographically, Gujarat has proved its dominance in the SME listing by contributing 33 firms on SME bourses which is the maximum, followed by Maharashtra (15), Rajasthan (10), West Bengal (4) and Delhi (3).

Further, average issue size also increased during the past fiscal to Rs 10 crore as compared to Rs 7 crore each for the preceding two financial years.

Besides, institutional investors including banks and mutual funds have started showing interest in the SMEs public offers.

Bohra Industries, Momai Apparels, Agro Phos India, Maheswari Logistics and Nandini Creation are some of the companies that received participation from institutional investors.

“Governance structures, improved credit rating, reduced finance cost, easy finances and branding are some of key benefits for listing on the SME platform. Besides valuation has helped listed SMEs to achieve speedy growth in systematic manner at early stage of their respective business life cycle,” Lunawat added.

The companies which got listed in the past fiscal are from sectors such as finance; media and entertainment; real estate and infrastructure; manufacturing; agriculture; aquaculture; food and processing; and IT and IT-enabled service.

BSE and NSE had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country. Since then, several companies have got listed on them and some have even shifted to the main-board.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

Tata Motors Q3 net nosedives 96% at Rs 111.57 cr

Tata Motors Q3 net nosedives 96% at Rs 111.57 cr

15/02/2017 12:10

India’s leading automobile manufacturer Tata Motors Ltd has reported a steep fall of 96.2 per cent its consolidated net profit after tax at Rs 111.57 crore, on a steep decline in profit in JLR business and higher losses in domestic operations.

“The consolidated net profit of the company stood at Rs 2,952.67 crore during the same period a year ago,” Tata Motors Ltd said in a filing to the Bombay Stock Exchange.

The consolidated numbers were impacted by JLR’s lower wholesale volumes and relatively weaker product mix, including the run out of Discovery, in Jaguar Land Rover business. The overall higher marketing expenses, were partially offset by credit relating to the recovery because of explosion at the port of Tianjin (China), Tata Motors said in a statement.

It’s consolidated total income (including other income), too, fell by 4.3 per cent at Rs 68,708.48 crore during Q3 2016-17, as compared to Rs 71,809.35 crore during the same period last year, due to unfavourable translation impact of Rs 10,670 crore.

It’s net sales during Q3 FY17 were down by 2.2 per cent at Rs 67,864.95 crore, as against Rs 69,398.07 crore in the year-ago period.

Jaguar Land Rover (JLR) total retail sales including the China JV in the third quarter were 149,288 units, up 8.5 per cent on strong demand for products, primarily reflecting higher volumes in China (incl. CJLR), North America and Europe led by strong sales of Discovery Sport, F-PACE and the new long wheel base XFL in China, the company said in a statemnent.

JLR wholesales and retails excluding China JV for the quarter were 1,30,910 units and 129,893 units respectively. China JV wholesales and retails for the quarter were 21,335 units and 19,395 units respectively, it added.

JLR’s profit after tax (PAT) was £167 million for the quarter ended December 31, 2016 compared to £440 million in the corresponding quarter last year.

Meanwhile, shares of the company were trading at Rs 446.70 apiece, down 8.24 per cent, from previous close on BSE at 12:15 hours.

Tax incentives to corporates to cost Rs 83,492 cr in FY17: Reports

Tax incentives to corporates to cost Rs 83,492 cr in FY17: Reports

02/02/2017 10:31

The Indian Government’s revenue foregone in the form of incentives to corporates in the current fiscal is estimated to grow nearly 8.63 per cent to over Rs 83,492 crore, said media reports.

As per the Budget document 2017-18, the revenue foregone stood at Rs 76,857.70 crore in the 2015-16 fiscal.

As per the budget document, revenue foregone on account of deduction of export profits of units located in SEZs (section 10A and 10AA) is estimated at Rs 20,492 crore in the current fiscal year.

Revenue foregone on deduction of profits of undertakings engaged in generation, transmission and distribution of power would be Rs 12,401.04 crore in 2016-17 compared to Rs 11,416 crore in the last fiscal year, the document said.

According to the Budget document, revenue impact of major tax incentives for corporate tax payers during the financial year 2016-17 is based on the corporate returns filed up to November 30, 2016, which constitute 90 per cent of the expected returns in the financial year.

Tractor volumes to rebound by 17% yoy in FY17

02/12/2016 13:25

India Ratings and Research (Ind-Ra), a leading rating agency, has said that it expects tractor volumes to grow by around 17 per cent yoy in FY17, driven by the improved growth prospects of the agriculture sector as well as a low base effect.

Ind-Ra expects agriculture gross value added (GVA) to grow 2.9 per cent yoy in FY17 (FY16: 1.2%; FY15: negative 0.2%).

The agency expects overall volume growth to be lower in 2HFY17 (around 14%). The currency demonetisation would have a negative impact on the tractor sales in the next couple of months, post which demand is likely to normalize aided by the government focus to boost liquidity in the rural areas on a priority basis.

However, Ind-Ra observes that the industry growth in 1HFY17 has not been uniform across the country, with southern and western India seeing high double-digit growth, while growth in the northern and central India was muted. Thus, a strong uptick in growth in the northern and central markets could lead to a higher growth rate for the year.

The agency said that currency demonetisation has impacted farmers’ seeds and fertiliser purchases. If the cash crunch prevails for a longer time, it may lead to lower agriculture GVA and may have a more pronounced impact on tractor sales volumes in FY17.

Overall the Southwest monsoon situation in 2016 was much better than the previous two years and is likely to aid volume growth for the industry. The other indicators such as area sown under kharif crops as well as advance estimates of food grain production have also seen an improvement, indicating improved agricultural production this year.

The improved agricultural output should aid the loan asset quality in the tractor segment where delinquency levels have shot up. While the normalisation of asset quality is likely to be a prolonged affair, given the severity of the problem, the trends should be encouraging. The improved prospects should persuade larger participation from banks and non-banking finance companies, increasing the finance penetration and thereby aiding sales.

Sector companies are likely to see a margin expansion of up to 300bp due to operating leverage benefits. Most sector companies have adequate capacities to grow over the next two to three years, resulting in low capex requirements primarily for new product launches as well as maintenance capex. Thus, the credit profile is likely to remain strong and further improve in FY17. Improvements in revenue and operating margins would result in higher cash flows for sector companies in FY17.

Fund-raising via rights issue falls 92% to Rs 618cr in H1 FY17

24/11/2016 16:23

Indian firms raised Rs 618 crore through rights issue in first six months of the current fiscal, a plunge of 92 per cent from the year-ago level, reported PTI.

The funds have been raised for business expansion plans, refinancing of debt and to meet the working capital requirements.

In the rights issue mode, shares are issued to existing investors at a pre-determined price, normally at a discount, in proportion to their holdings.

Companies garnered Rs 618 crore in the April-September period of 2016-17 as against Rs 7,760 crore raised in the same period a year-ago, according to the latest data available with Securities and Exchange Board of India (SEBI).

In terms of numbers, three issues were witnessed during the period under review as compared to 6 in the first six months of the last fiscal (2015-16), said the media report.

Market experts said that firms have opted for other fund raising avenues like IPOs and debt markets rather than rights issue in the period under review.

Individually, firms did not raise any capital through the rights issue route in April, June and July, while they raised Rs 75 crore in May, Rs 500 crore in August and Rs 43 crore in September.

In the entire past fiscal, companies mopped-up Rs 9,239 crore, which was the highest fund mobilisation in five financial years. The huge fund-raising was primarily driven by Tata Motors’ rights issue, which alone raked in Rs 7,498 crore.

Infosys slips to 52-week low on FY17 revenue guidance cut

Infosys slips to 52-week low on FY17 revenue guidance cut

14/10/2016 12:02

Shares of Infosys tumbled over 5 per cent, hitting 52-week low, on the Bombay Stock Exchange after the IT bellwether trimmed its revenue guidance to 8-9 per cent for FY17 from 10.5-12 per cent in constant currency terms.

Weighed down by the development, shares of company declined as much as 5.31 per cent and touched 52-week low in intra-day to trade at Rs 996.15 apiece on Bombay Stock Exchange.

In a similar fashion, stocks of company fell 1.03 per cent to Rs 1,041.50 apiece on the National Stock Exchange.

Meanwhile, the broader benchmark BSE Sensex was trading at 27,679.11, up 36 points, or 0.13 per cent, at 12:05 hours.

Govt. borrowing for H2 FY17 capped at Rs 2.45 lakh cr

30/09/2016 13:35

According to media reports, the centre has kept unchanged its borrowing limit for the second half of the ongoing fiscal year which ends on March 31, 2017 at Rs 2.45 lakh crore, keeping the government on track to meet its fiscal shortfall goal of 3.5 per cent for FY 2016-17.

As per a PTI report, the exchequer will borrow Rs 2.45 lakh crore in the October-March period with net borrowing in the same period set to be Rs 1.77 lakh crore.

The Modi government which continues to maintain its popularity into its third year in power, was required as per the Budget estimate, to raise Rs 2.45 lakh crore in the second half of the current fiscal year from dated securities floated by the RBI on behalf of the government.

The government is likely to raise as much as Rs 1.88 lakh crore via the issue of treasury bills while the securities buyback budget target of Rs 75,000 crore may also be revised upwards.

In the April-June period, the centre’s gross borrowing stood at Rs 3.55 lakh crore.

In the budget, the centre had estimated gross borrowing of Rs 6 lakh crore for the current fiscal year, whereas net borrowing was pegged at Rs 4.2 lakh crore.