Since the the beginning of 2012, India and China dominated performance in Asia. UBS stepping in the shoes of a Bull in India, thought by the end of February that this market was too advanced, particularly in light of the UP and Other election, budget and seasonal tightness in liquidity. Since mid February, India has given up most of its relative gains for the year, China is now under-performing. (more…)
Author: CP
HDFC Bank Sailing Smooth as Ever – Rating Must be Higher than Sovereign Rating
This is one Company and Group [HDFC] which is very cautiously managed yet Grows above its Sectoral Average and Deserves a Rating Higher than Government of India’s Sovereign Rating. No Kidding!
HDFC Bank reported 4Q earnings of Rs14.5bn, up +30% yoy led by topline and lower provisions, as asset quality continues to remain comfortable. Topline grew +19% yoy driven by 22% loan growth and margins holding-up at 4.2% yoy on rising share of retail loans. CASA remains high at 48.4%. Core fee income grew +24% yoy, ~85% from retail. (more…)
MindTree – Impressive Margins in FY2012 – Sustainable ? Differing Valuations
MindTree reported modest results for 4QFY2012, with OPM and PAT coming in ahead of expectations. The company reported a 4.9% qoq increase in volumes. MindTree reported revenues of US$105m (+1.3% qoq, +22% yoy). EBIT margins surprised positively and improved to 15.5% (+161bps qoq, +895bps yoy). Net income grew to Rs689m (+14% qoq, +115% yoy).
Management Outlook: While the recent weeks saw deterioration in the spending environment and management expects lacklustre growth for 1HFY13, it (more…)
RBI Cuts Rate More than Consensus – Will Banks Pass on to Consumers ?
Given the unique growth-inflation dynamics of Indian Economy, the RBI was expected to ease rates for the first time in three years. However, it surprised positively – cutting its key policy rates by 50bps – higher than expectations of a 25bps cut. The repo and reverse repo rates now stand at 8% and 7% respectively. The cash reserve ratio (CRR) was left unchanged at 4.75%.
What is Beneficial to the Banks ? The RBI raised the borrowing limit (more…)
High Scrutiny of Infosys / TCS H1-B Visa + Jack Plamer Interview on CBS against Infosys
Infosys’ disappointing performance has raised multiple concerns around the demand environment and the competitive landscape of the IT services industry.
The increased visa scrutiny from the US, leading to delays and denials of visas, has been a reality for a while now, but has not impacted companies’ growth momentum by much. The CBS interview on 13 April with estranged Infosys employee Jack Palmer has attracted much attention (more…)
India’s March Inflation at 6.89% – higher than estimate
The Ruling Congress Government doesn’t seem to get the Inflation Fixed despite a slap on the face in the recent State Elections of Uttar Pradesh.
Annual Inflation for March came at 6.89% compared with 6.95% for the previous month and was higher than consensus of 6.65%. The rise in WPI in March is mainly a result of rise in primary articles prices. On the positive side, manufactured product inflation fell sharply to 4.87% from 5.75%. (more…)