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Govt to announce multi-brand retail policy soon
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IT sector to grow by 25-26% annually: Narayana Murthy
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| 04. TRADE AND ECONOMY |
| Forex reserves up US$ 3.4 billion to US$ 297.41 billion |
| IBEF: January 24, 2011 |
New Delhi: India's foreign exchange (Forex) reserves rose by US$ 3.4 billion to US$ 297.41 billion for the week ended January 14, 2011 on the back of rise in the value of foreign currency assets.
The foreign currency assets, the biggest component of the Forex reserves segment, has increased by US$ 3.30 billion to record US$ 267.86 billion during the week under review from US$ 264.56 billion in the previous week, according to the weekly statistical supplement of the Reserve Bank of India (RBI). The foreign currency assets expressed in US$ terms include the effect of appreciation or depreciation of non-US currencies such as British pound sterling, euro and Japanese yen held in reserves.
Furthermore, the value of Special Drawing Rights (SDRs) also increased by US$ 73 million to US$ 5.10 billion and reserves with the International Monetary Fund (IMF) reflected an increase by US$ 28 million to US$ 1.98 billion for the week ended January 14, 2011.Moreover, the gold reserves value remained unchanged at US$ 22.47 billion.
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| Early December quarter results upbeat |
| Business Standard: January 24, 2011 |
Mumbai: First 230-odd firms report over 20% rise in net profit, sales growth.The third quarter results have started on an extremely positive note, with sales and net profit showing healthy growth of over 20 per cent each, despite a higher base year effect.Operating margins are up 10 basis points on a yearly basis, thanks to tight cost control, as the total expenditure to sales ratio has eased by 15 bps.
The cost of raw materials, which moved at a slower pace of 16.87 per cent compared to sales growth rate of 19 per cent, helped manufacturers to show robust growth in net profit.The healthy net profit growth has come from industry giants such as Reliance Industries, Tata Consultancy Services, Bharat Heavy Electricals, Bajaj Auto and State Bank of India.As is known, corporate analysts have projected earnings growth of over 20 per cent in the third quarter and the early bird results so far have been in line with expectations.So far, 235 companies have announced their December 2010 quarter results and reported net profit growth of 23 per cent, to Rs 32,319 crore from the level of Rs 26,251 crore of the previous corresponding period.
The profit growth rate has been higher than in the first two quarters of the current financial year.But total sales grew only 21 per cent, the slowest in the last four quarters.More than half, or 126 companies, outperformed the total sample by reporting net profit growth of 25 per cent. The net profit of as many as 48 firms have more than doubled, 59 posted profit growth in the range of 25-100 per cent and 19 saw a turnaround.Analysts expect refinery companies, which account for a fifth of total net profits of listed firms, to post a record quarterly profit, aided by strong improvement in gross refinery margins.Banks, automobiles, fast moving consumer goods, pharmaceutical and packaging industries have done well by reporting 30 per cent growth in net profit.
Pay rises clipped the profitability of software services firms, reporting a 17.75 per cent rise in net profit despite revenue growth of 28.1 per cent.Reliance Industries, the country’s largest listed company by market value, posted a 28 per cent rise in net profit on the back of robust performance in its refining and petrochemicals businesses. Three results from the automobiles segment have posted a 45 per cent rise in net profit on the back of strong volume growth.Operating efficiencies and cost cutting helped information technology companies to report better than expected net profit growth.
A surge in credit demand offset higher provisions for bad loans, helping the banking sector to post healthy growth in net profit.The rise in net interest income by 25 per cent helped 17 private and public sector banks to report 20 per cent jump in net profit.
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| Indian Healthcare to double size to $100 bn by 2015 |
| PTI 28 JAN, 2011 |
The Indian Healthcare sector will double its size to USD 100 billion by 2015 from the present USD 50 billion, according to ratings agency Fitch. Giving a stable outlook for the sector, it said: " Fitch expects a continuous double digit growth in the sector leading to a doubling in size of the current USD 50 billion industry by 2015." Fitch cited a growing economy, lifestyle related health issues, healthcare insurance dated issues, government initiatives and increasing disposable income patterns as the main reasons for a robust future of the sector.
It, however, cautioned that profitability margins will remain stressed for many players, given the time taken to stabilise operations and to attain economies of scale. "The agency notes that revenue growth in 2011 will be aided by capacity expansion undertaken recently. However, the credit profiles of many players focusing on debt-led bed increases or acquisitions will remain stressed during 2011," it said. With Indian healthcare infrastructure still at its nascent stage, the sector will continue to seek investment both from the debt market as well as from equity (particularly private equity), it said.
"Private equity funding is expected to play a crucial role in the expansion of the healthcare industry in 2011," it said, adding the hospital sector, especially the super- specialty services, will continue to be of princle interest to private equity investors. It further supply said Tier II and III cities will continue to attract investors on account of the under-penetration of healthcare services supply machanisms in these areas. However, lower income levels and limited insurance penetration leading to lower margins in these cities will steer investors towards innovative business models of operation such as the hub-and-spoke model, it said.
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