Cairn India's Q4 net falls 3.36% cr on higher forex losses

Oil and gas producer Cairn India 's  Q4 net profit fell higher than expected 3.35% QoQ and 11.05% YoY to Rs 2,186.23 crore in the fourth quarter due to huge forex loss. The company had reported a profit of Rs 2,261.93 crore in previous quarter and Rs 2,457.79 crore in the corresponding quarter of last fiscal.

Foreign exchange losses  in the January-March quarter stood at Rs 217 crore, which was quite higher as compared to Rs 38 crore in a year ago period.

Net sales increased 17.9% QoQ to Rs 3,651 crore from Rs 3,096.8 crore while YoY sales fell 0.09%.

These numbers were slightly below CNBC-TV’s poll which had estimated net profit to be around Rs 2250 crore  and sales of 3545 crore.

The company Board also approved a 20% dividend payout.

The oil major produced better numbers in FY12. Net profit for the financial year ended March 2012 increased 25% to Rs 7,937.7 crore from Rs 6,334.4 crore in the financial year ended March 2011. Total income also increased 23% to Rs 12,798.6 crore as against Rs 10,406.7 crore in March 2011.

In an exclusive interview to CNBC-TV18 Rahul Dhir, the company’s chief executive officer said that Cairn has around $1.5 billion cash on hand and will conclude corporate restructuring in Q2FY13.

The Vedanta group acquired a majority stake in Cairn in December after it agreed to share royalties on crude production from a key producing field in the northwestern state of Rajasthan with joint venture partner Oil & Natural Gas Corp.

Earlier, ONGC, which holds a 30% stake in Rajasthan block, was paying the entire royalty on production.

Source: www.moneycontrol.com

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd 

Hindustan Zinc Q4 PAT down 20% at Rs 1412.8 cr

Hindustan Zinc , Vedanta group company has reported a profit after tax of Rs 1,412.8 crore in the fourth quarter of FY12, a massive fall of 20% as compared to Rs 1,771.27 crore in a year ago period.

More or less these are weak set of numbers owing to lower LME prices on weaker global demand and surplus existence.

Zinc prices fell 15% YoY and lead prices declined by 19.6% YoY. Fear remains that zinc and lead prices are unlikely to see any major upside as the market remains in surplus.

Sales dropped 3% YoY to at Rs 3,093.50 crore and EBITDA was down by 16% YoY to Rs 1,617.6 crore.

EBITDA margin slipped at 52.3% in the January-March quarter versus 60.1% in the corresponding quarter of last fiscal.

Power and fuel cost went up 13% YoY to Rs 322.5 crore while mining royalty went down 9% at Rs 229.10 crore during the same period.

Other income jumped 23% to Rs 381.1 crore in the quarter ended March 31, 2012 from Rs 308.6 crore in a year ago period.

Hindustan Zinc has decided to pay a final dividend of Rs 0.90 a share.

Source: www.moneycontrol.com

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd 

Declaration of Dividend under IDFC Sterling Equity Fund

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Gaurav Agarwal
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DENIP Consultants Pvt Ltd

FMP DETAILS(As on 25th April 2012)

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

Samvardhana Motherson Finance - Company Overview/IPO details/Product Note

Please find below the details of Samvardhana Motherson Finance Limited.

Issue Opens on            :     Wednesday, May 02, 2012

Issue Closes on            :     Friday, May 04, 2012

Price Band                    :     will be announced two working days prior to the issue opens

Bid Lot Size                   :     will be announced two working days prior to the issue opens

Issue Size                      :     Rs.1665 crores

Fresh Issue                    :     Rs.1344 crores

Offer for sale                :     Rs.321 crores (RADHA RANI HOLDINGS  PTE LTD)

QIBs portion                 :      50% of Net Offer

NIBs portion                 :      5% of Net Offer

Retail portion               :      35% of Net Offer

BRLM                             :      Standard Chartered Securities (India) Ltd, J.P. Morgan India Pvt Ltd.

Syndicate Members            :  Avendus Securities Pvt Ltd,  Reliance Securities Ltd and Sharekhan  Ltd


Registrar to the Issue            :Link Intime India Private Limited


Listing on                     :             BSE & NSE


IPO Grading                :       “IPO Grade 4/5” by CRISIL


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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Quality Company Deposits with Double Digit Return

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Gaurav Agarwal
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DENIP Consultants Pvt Ltd

HDFC FMP 370D April 2012 (2) closes on Wednesday, May 02, 2012

Investment Objective: The investment objective of the Plan(s) under the Scheme is to generate income through investments in Debt/Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s). 


Asset Allocation Pattern: Debt and Money Market Instruments: 60%-100%; Government Securities: 0-40%.


Terms of Issue: Units will be available at 10 per unit during the New Fund Offer.


Minimum Application Amount: 5,000 and in multiples of 10 thereafter. 


Options: Growth & Dividend Options (Normal and Quarterly Dividend Options with payout facility only) 


Listing: The Fund will list the Units on the Capital Market Segment of the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) within 5 Business Days from the date of allotment. Investors can purchase/ sell Units on a continuous basis on NSE/BSE and/or any other stock exchange(s) on which the Units may be listed.


 Load Structure: Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder. 


Exit Load: Not Applicable. The Units under the Plan(s) cannot be directly redeemed with the Fund as the Units will be listed on the stock exchange(s).


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Gaurav Agarwal
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DENIP Consutants Pvt Ltd

IDBI unveils its first actively managed equity fund

AMC plans to expand fund management team to introduce more actively-managed products.

IDBI AMC today announced the launch of its maiden actively-managed equity fund called IDBI India Top 100 Equity Fund even as the equity markets remain uncertain. The new fund opens for subscription on April 25, 2012 and closes on May 9, 2012. It re-opens for continuous subscription on 22^nd May.

Benchmarked against the CNX 100 index, the fund will follow a combination of a top-down and a bottom-up approach in picking stocks. The fund manager, V Balasubramanian may take exposure to sectors like FMCG, pharma, banking & financial services and automobiles. The fund will take exposure to 10 sectors of S&P CNX Nifty (Nifty 50) and CNX Nifty Junior comprising 100 stocks. 

The minimum application amount under lump-sum is Rs 5,000 and it is Rs 500 for investment through SIPs. The fund will have 1% exit load if redeemed or switched-out before 1 year. IDBI has targeted collection of Rs 100 crore from this fund. The AMC had collected Rs 107 crore from its gold ETF and Rs 115 crore from its IDBI Dynamic Bond Fund. The fund house managed Rs 5,482 crore as on March 2012.

IDBI plans to expand its fund management team as it adds more actively-managed products to its basket. The fund house has recently filed an offer document with SEBI for IDBI Gilt Fund.

Currently there are around 201 equity diversified funds in the market.

Source: www.cafemutual.com

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Here’s what advisors have to say about Max New York’s latest advertisement

Advisors give mixed reactions to the company’s latest advertisement in which an agent resists temptation to mis-sell a policy to a prospective client.

Max New York Life Insurance’s latest commercial featuring an advisor trying not to give in to his temptation to misguide a prospective client into buying a wrong policy has generated a lot of buzz among financial advisors. The advertisement features an insurance agent as the protagonist than the product or investor. Will the commercial help in raising the trust level for advisors? Cafemutual spoke to leading financial advisors to find out what they have to say.

A welcome change

“Insurance advisors have been slammed time and again. Insurance firms have recognised this fact and they are trying to address it.  It’s a welcome change.  This initiative is good for the industry. Other companies may also follow suit,” says Suresh Sadagopan of Ladder 7.

Can’t generalise that all advisors are bad

“It is not necessary that the advertisement is trying to criticise other agents. I don’t think we can generalise that all distributors have been shown in the bad light since they have a closed architecture model. The commercial says that the company’s advisors are well-trained and will not indulge in any wrong activity. One can’t run away from the fact that mis-selling occurs and the advertisement aims to highlight this,” Hemant Rustagi of Wiseinvest Advisors.

Far from reality

“It may not translate on the ground. The advertisement says that the policy is a long term savings product. Life insurance is not a savings product. It is supposed to protect your family against any uncertainties,” says Dinesh Khemlani of Comsol Financial Solutions.

Not in the right spirit

“It is not in the right spirit. The advertisement portrays that their agents are good which might not be the case,” says Yogendra Joshi of Moneybolism Financial Solution.

Train the agents

“It will be good if the portrayal is backed by actual action. For this the company has to train the agent and inculcate the right attitude. In the high pressure selling world of Life Insurance how this can happen remains to be seen,” Yogin Sabnis of VSK Financial Services.

Do let us know what you think about Max New York’s latest commercial.

Source: www.cafemutual.com

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Akshaya Tritiya: Trading hours extended for gold ETFs; charges waived

The NSE and BSE have extended the trading session and waived all transaction charges for paper gold on this auspicious occasion.

To cater to the expected boom in demand for paper gold on Akshaya Tritiya, both bourses have decided to extend trading sessions in gold ETFs beyond the scheduled close on the request of AMCs. All transaction charges have been waived.

A total of 14 fund houses offer gold ETFs on the BSE. The demand for paper gold has been steadily going up due to increasing awareness, ease of trading and good returns.

The occasion has also boosted demand for physical gold. On Monday, the yellow metal touched a two-month high of Rs 29,070/10 gm.

To make the most out of this auspicious occasion, a number of distributors have planned special schemes. A few have tied up with jewellers; others are rolling out campaigns through SMS and special marketing material.

Last year on Akshaya Tritiya, volumes on the NSE alone touched Rs 423 crore, a massive increase over the Rs 172 crore recorded on the same day in the previous year.

Source: www.cafemutual.com

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd