สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 14 พฤษภาคม 2555
SRF looks attractive for long-term investors
The shares of Gurgaon-based multi-business company SRF are trading near 52-week low on poor FY12 show and apprehensions over slackening carbon credit revenues. However, the company's expansion plans, which will make up for the lost carbon credit revenues, inexpensive valuations and high dividend yield make it attractive for long-term investors.
SRF manufactures a variety of products including fluorine derivatives, polyester (BOPET) film and technical textiles. The company is a leading manufacturer of refrigerant gases and derives a chunk of its income from carbon credits on incineration of HFC-23.
Its chemical complex at Dahej will start producing fluoro-specialty chemicals from June 2012, which will be scaled up in phases by March 2014. It will set up a plant with 12,500 TPA capacity of HFC 134a refrigerant gas at Dahej. First half of FY14 will see greenfield packaging film plants coming up in Thailand and South Africa.
(Source: Economic Times, World News, Carbon Credit)
Rahul Khullar to take over as TRAI Chief
Commerce Secretary Rahul Khullar is set to take over as the next chairman of the Telecom Regulatory Authority of India (TRAI).
A trained economist, Khullar will replace JS Sarma, whose three-year term at TRAI has come to an end. Khullar will be taking over at a time TRAI has been facing opposition from telecom companies over its proposal of a 13-fold hike in base prices for spectrum.
As TRAI chairman, Khullar will have to walk the thin line between meeting industry demands and safeguarding consumer interests. Telecom companies, which have been reeling under increasing debt and dwindling margins, say if spectrum prices are revised, they will have no option but to recover them from consumers.
(Source: Economic Times, the Hindu, Business Standard, Indian Express)
Fab five sectors salvage India Inc's bottom line
An analysis of 989 companies that account for 52 % of the total market capitalisation on the Bombay Stock Exchange shows net profit growth of 2.7 % over the previous year was reported mainly due to strong profit numbers registered by players in banking, cement, information technology (IT), pharmaceuticals and fast moving consumer goods (FMCG).
So, how did these entities in the five key sectors manage to sustain profit growth at a time when inflation as well as interests’ costs has been biting hard?
In FMCG, for instance, analysts attribute this trend to consistent price hikes taken through the quarter as well as the full year ended March. On average, companies took up product prices by at least 5-7 % during each quarter for the fiscal ended 2012. That resulted in overall profit growth of 27 % for FMCG companies as a whole.
Analysts say the trend could continue into the next few quarters as companies continue to battle inflation.
(Source: Business Standard, World News, Rediff, India News 24, Smart Investors)
TRAI sticks to controversial auction plans
India will sell second generation (2G) radio airwaves for the first time through an auction process to redistribute them among carriers. The auction, due by August, follows a Supreme Court order in February to revoke a total 122 zonal telecom permits awarded to eight carriers in a scandal-tainted state grant process.
However, the regulator's proposals for the auction have been slammed by the telecoms industry, who says it will add billions of dollars to their costs, hurting profits, and will force them to increase tariffs for their customers.
The auction is the last chance for the eight carriers including Sistema and Telenor's (TEL.OL) India units to win back their permits that are set to be revoked after the court order.
(Source: Reuters India, Economic Times, Indiatimes, Moneycontrol)
Appetite for speciality imported foods grows as incomes rise
The sales of olive oil have overtaken those of Saffola, a premium cooking medium made from sunflower seeds, in Big Bazaar and Food Bazaar, the food and grocery retail chains of India’s largest listed retail company Pantaloon Retail (India) Ltd.
The sales reflect increasing demand for specialty imported foods in India fuelled by a growing middle class and rising disposable incomes.
For retailers, the growing popularity of international packaged and processed foods mirrors the take-off of fine dining and specialty restaurants in large cities.
First came Chinese noodles, followed by Italian and Thai cuisine, and as they caught on with consumers, demand rose for making those dishes at home.
(Source: Livemint, Indiatimes, India Business Brief)
Economic Section
Royal Thai Embassy
