India’s leading cement maker, ACC has reported Q2, 2014 net profit of US$40.1m, some 7% lower than the US$43.1m reported in the Q2, 2013. The fall in profit was attributed to higher total expenses. Total expenses increased by 10% during the quarter compared to year-ago period due to higher raw material and employee costs and increased power, fuel and freight charges. Other expenses grew by 8% year-on-year. Manufacturing and distribution costs continued to rise, though the company derived some benefits from the ongoing cost leadership program and an increase in the sales of premium products. Continue reading ACC cement company reports lower Net Profit Q2 2014
Category Archives: Economy
Revised Natural Gas Pricing Better for Indian Economy
The Cabinet decision reiterating revision and near doubling, from April next, the price of domestic natural gas is timely. The move would better align relative prices, coagulate much-needed funds in the high-risk upstream hydrocarbon sector and shore up investor sentiments. In the promising Krishna-Godavari basin in the eastern offshore, Reliance Industries (RIL) has had significant production shortfall for over three years now, and it would reportedly need to furnish a bank guarantee to counter perceptions that it is hoarding gas at its operational blocks. The revised gas price would be as per the Rangarajan committee formula, benchmarked to the going average price of what producers get elsewhere in the main markets. Continue reading Revised Natural Gas Pricing Better for Indian Economy
Alstom India Set To Grow Revenues from Railways & Transportation
Alstom SA, the world’s second- largest trainmaker, said Indian sales growth may surpass local economic expansion as the government works on a 14 trillion rupee ($317 billion) plan to expand and modernize railroads. The company has to be prepared for India growth “which is equal to if not higher than GDP,” Sunand Sharma, 61, Alstom’s local head, said in an Oct. 15 interview at his office in Noida, near New Delhi. He declined to give specific sales numbers.
Alstom, which also makes power-plant systems, expects to eventually get a third of India sales from transportation as the government expands the railroads 10 percent a year to support economic growth. The Paris-based company has been shortlisted with General Electric Co., Bombardier Inc. and Siemens AG as a possible partner in an Indian train making venture and is considering building a rail-car plant in the country. Continue reading Alstom India Set To Grow Revenues from Railways & Transportation
Indian Monetary Policy: RBI Annual Policy Statement for 2010-2011
– By Dr. D. Subbarao, Governor, RBI (Reserve Bank of India)
1. The Monetary Policy for 2010-11 is set against a rather complex economic backdrop. Although the situation is more reassuring than it was a quarter ago, uncertainty about the shape and pace of global recovery persists. Private spending in advanced economies continues to be constrained and inflation remains generally subdued making it likely that fiscal and monetary stimuli in these economies will continue for an extended period. Emerging market economies (EMEs) are significantly ahead on the recovery curve, but some of them are also facing inflationary pressures.
2. India’s growth-inflation dynamics are in contrast to the overall global scenario. The economy is recovering rapidly from the growth slowdown but inflationary pressures, which were triggered by supply side factors, are now developing into a wider inflationary process. As the domestic balance of risks shifts from growth slowdown to inflation, our policy stance must recognise and respond to this transition. While global policy co-ordination was critical in dealing with a worldwide crisis, the exit process will necessarily be differentiated on the basis of the macroeconomic condition in each country. India’s rapid turnaround after the crisis induced slowdown evidences the resilience of our economy and our financial sector. However, this should not divert us from the need to bring back into focus the twin challenges of macroeconomic stability and financial sector development. Continue reading Indian Monetary Policy: RBI Annual Policy Statement for 2010-2011
Citigroup raises India FY10, FY11 GDP estimates
The Indian economy may grow at 7 percent in the current financial year backed by buoyant industry growth combined with an upside in agriculture output, Citigroup said, raising its estimate from 6.2 percent. Citi has also revised its estimate of fall in agriculture output to 1 percent from 4 percent, helped by a higher share of commodities other than crops in the agri-GDP. Continue reading Citigroup raises India FY10, FY11 GDP estimates