Ruchi Group Records 105% jump in Profit

Ruchi Soya Industries Limited (Ruchi Soya) has announced its un-audited financial results for the quarter ended December 31, 2012 (Q3). As compared to the corresponding period of the previous year, net profit for the quarter rose by 105.45% from Rs. 24.05 crore to Rs. 49.41 crore whereas net sales rose by 17.56% from Rs. 6,954.29 crore to  Rs. 8,175.16 crore.

During the quarter, branded sales registered a healthy 22.95% growth from Rs. 1,374.23 crore to  Rs. 1,689.59 crore. Refining capacity utilization improved by 8.85% from 4,78,589 MT to 5,20,960 MT. Export of Soya Meal in value improved by 47.29% from Rs. 883.16 crore to Rs. 1,300.83 crore. Sale of Textured soya protein (TSP) stood at Rs. 28.16 crore registering an impressive rise of 43.53% from Rs. 19.62 crore during Q3 in the last fiscal.

Commenting on the performance, Managing Director, Mr. Dinesh Shahra said, “I am happy to  share the healthy growth recorded by the Company during the third quarter ended December 31, 2012. Improved branded sales, better sales realization of oilseed extraction, effective control on the costs and favourable business sentiments helped us to get profit on the track. We are making our efforts to have good performance on a sustained basis in the times to come.”

Ruchi Soya Industries Limited

Featuring among the top five FMCG players in India, Ruchi Soya is India’s number one cooking oil maker and marketer. An Integrated player from farm to fork, Ruchi Soya has secured access to oil palm plantations in India and other important parts of the world. Besides being a leading manufacturer of high quality edible oils, soya foods, vanaspati, and bakery fats, Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India. Ruchi Soya features amongst top three players based on market share in the overall Refined Oil in Consumer Packs (ROCP) in India with leadership position in important segments like palm oil. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector.

Source: http://planetcorporatenews.wordpress.com/

Indian rupee's value may deteriorate beyond 55, soon: Goldman Sachs

The rupee may depreciate beyond 55 level in the near term as the Budget for 2013-14 has no major proposals to cut current account deficit and risks of rise in net borrowings have increased, Goldman Sachs has said. "With risks to the net borrowing requirement from the budget to the upside, and no major proposals in the budget to reduce the current account deficit (CAD), we think there are depreciation pressures for the INR in the near-term," Goldman Sachs Managing Director and Chief India Economist Tushar Poddar said in a research note.

According to Goldman Sachs, the three-month, six-month and 12-month USD-INR forecasts are 55, 53 and 52 respectively, with risks of further depreciation beyond 55 in the near-term. Currently, the rupee is hovering around the Rs 54 level against the US dollar. The headline numbers announced by the Union Budget are in line with expectations, but the composition of the reduction - based on optimistic revenue increases rather than spending cuts - was a disappointment, the report said.

That, along with no new major reform proposals, suggest to us the budget could have a short-term negative effect for Indian equities, bonds, and the INR.The fiscal trajectory has materially changed for the better over the past few months due to a front-loading of consolidation, and the government's debt ratio remains on a declining path.

"We think the consolidation may not be material enough to provide space for the RBI to enact a significant amount of rate cuts," Poddar said."With the RBI sounding hawkish on suppressed inflation and a very high current account deficit, we continue to expect the RBI to cut by only 25bps in 2013, lower than consensus expectations," he added.

In its January 29 policy review, RBI after a nine-month long hawkish monetary policy stance, slashed its key interest rates by 0.25 percentage points. The central bank had said that it was critical to arrest the loss of growth momentum as inflation was showing signs of remaining range bound. RBI is likely to announce its mid quarter policy review on March 19.


Source:  http://www.indianexpress.com/news/indian-rupees-value-may-deteriorate-beyond-55-soon-goldman-sachs/1081852/0#sthash.VsldVklx.dpuf

Fiscal deficit reduction not based govt spending cuts in Budget 2013 bad for economy: Goldman Sachs

While the fiscal consolidation plan unveiled in Budget 2013 is in line with expectations, the composition of fiscal deficit (FD) reduction based on optimistic revenue rise than on spending cuts is a disappointment, Goldman Sachs said today. The investment bank, therefore, is not optimistic about the Government's ability to meet fiscal deficit target set at 4.8 per cent of GDP for FY14, and sees its touching 5 per cent on a possible fall in the revenue mop-up side.

"Given the Budget proposals, the fiscal deficit may be 5 per cent against the projected 4.8 per cent next fiscal. Thus, the net borrowing requirement (Rs 4.88 trillion according to the Budget target) may be higher than budgeted," Goldman Sachs said in a report. The brokerage said the Budget could have a short-term negative impact on equities, bonds and the rupee as no new reform measures have been announced by the Finance Minister.The report, however, noted that fiscal trajectory has changed for the better over the past months due to front-loading of consolidation and the Government's debt ratio remains on a declining path.

On expenditure front, it said the Government has budgeted for a significant increase in expenditure to the tune of 16 per cent with a rise in non-subsidy current spending. "While subsidies have been reduced significantly, there can be some upside to them, especially to food subsidy bill if the Food Security Bill is passed and implemented." In terms of spending priorities, Goldman Sachs said there is a significant increase in rural, agricultural, infrastructure, and social spending, apart from Rs 14,000 crore for recapitalisation of the public sector banks.

It said the Budget may be negative for bond yields due to higher-than-expected net market borrowing requirement. "RBI may need to do a significant amount of open market operations to finance the deficit and inject liquidity into the system." The report said the Budget would have negative impact on equity markets due to hike in the corporate tax surcharge. "We think the Budget may be negative for investor sentiment and for the rupee, at least in the short term, as it has not taken up any major proposals to bring down current account deficit (which touched 5.4% in Q2, FY13)."

Source:  http://www.indianexpress.com/news/fiscal-deficit-reduction-not-based-govt-spending-cuts-in-budget-2013-bad-for-economy-goldman-sachs/1081856/0#sthash.l4KH4TmC.dpuf

With Tata Sons, AirAsia deal buzzing, Ratan Tata meets Ajit Singh

Ratan Tata, chairman emeritus of Tata Sons, today met Civil Aviation Minister Ajit Singh here, days after Malaysian carrier Air Asia's Tony Fernandes announced it had sought government's nod to launch a new airline under a joint venture with Tata Sons and an Indian investor. Though there was no official word on what transpired at the meeting this afternoon, it is understood that the plans for the launch of the airline came up during the discussions.

The meeting came days after the Malaysian budget carrier's CEO Tony Fernandes said the new airline may take to the sky by this year-end with 3-4 Airbus A-320 and his company would make an initial investment of between USD 30-50 million.

Besides AirAsia Investment and Tata Sons, the other investor in the joint venture is Arun Bhatia of Telestra Tradeplace. An application has already been moved by Air Asia's investment arm, AirAsia Investment Limited (AAIL) before the Foreign Investment Promotion Board (FIPB) to seek approval for acquiring 49 per cent equity in the airline company.

Of the remaining stake, Tata Sons is likely to pick up 30 per cent and one of Bhatia's companies, Hindustan Aerosystems, 21 per cent. After the FIPB approval, the joint venture company would make an application to the aviation regulator DGCA for the Air Operators Permit to carry out flying operations.

Fernandes recently said the new airline would be based in Chennai and in the initial phase concentrate on destinations in South India where Air Asia already operates. It would also focus on providing connectivity to Tier-II and III cities. Asked by when the new airline would start operations, Fernandes had said "it is in the hands of the Indian regulator ... but most likely it will start by the fourth quarter" of this year or the winter season.

He had also said that the airline's CEO would be named in the next few weeks and the senior management soon thereafter. The proposed airline's Board would have Indians in a majority. For the USD 100 billion-Tata Group, this would be its second foray into the aviation segment after the late JRD Tata launched Air India before Independence.

AAIL, Tata Sons and Hindustan Aerosystems, owned by Bhatia, would infuse USD nine million within a fortnight of the Foreign Investment Promotion Board (FIPB) clearance to set up the joint venture.

The FIPB is likely to taken Air Asia's application for the joint venture on March 6. The three parties would infuse another USD 21 million within 45 days of receiving a no-objection certificate from the Directorate General of Civil Aviation (DGCA). It is understood that the new airline's board would have six members.

Air Asia, being the largest investor (49 per cent), would have two members on the board, including Fernandes. Tata Sons would also have two members. While Arun Bhatia would be the fifth, the sixth one would be an Indian national who is likely to be appointed as a non-executive chairman.

Source:     http://www.indianexpress.com/news/with-tata-sons-airasia-deal-buzzing-ratan-tata-meets-ajit-singh/1081858/0#sthash.ETdMsyVP.dpuf

Ankesh Shahra receives CSR Award At Global CSR Congress

Mumbai, February 20, 2013: Ruchi Soya Industries Limited (Ruchi Soya) has been Felicitated with the CSR Award for Community Development during the World CSR Congress.

Mr. Ankesh Shahra who manages the international businesses of Ruchi Soya and participates in the CSR activities of the Company was honoured with the felicitation at a glittering event in Mumbai. Dr. Christoph Stueckelberger, Executive Director and Founder of Globethics and Dr. Bhaskar Chatterjee, Director General & CEO, Indian Institute of Corporate  affairs handed over the trophy and citation to Mr. Ankesh Shahra.

Commenting on the occasion, Mr. Ankesh Shahra stated, “I am very grateful to the World CSR Congress for honouring Ruchi Soya with the award for Community Development. Ruchi believes in sharing its growth with every stakeholder and giving back to the society in a sustainable and transparent manner. A big congratulations to the team.”

Featuring among the top five FMCG players in India, Ruchi Soya is India’s number one cooking oil maker and marketer through popular brands like Nutrela, Ruchi Gold, Mahakosh and Sunrich. Ruchi Soya is working closely with the communities around its plants in Patalganga and Nagpur in Maharashtra. Ruchi Soya believes in the concept of ‘Giving back to the Society’. The corporate social initiatives of Ruchi Group are executed through Shri Mahadeo Shahra Sukrat Trust with the focus on three core areas of Health, Education and Women Empowerment.

An Integrated player from farm to fork, Ruchi Soya has secured access to oil palm plantations in India and other important parts of the world. Besides being a leading manufacturer of high quality edible oils, soya foods, vanaspati, and bakery fats, Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector.

Source: http://planetcorporatenews.blog.com/ankesh-shahra-of-ruchi-soya-receives-csr-award-for-community-development-at-global-csr-congress/

Industrial Production growth likely to remain 1-2% in January: D&B report

The country's industrial output is expected to remain subdued but in the positive range of 1-2 per cent during January due to moderation in consumption and weak external demand, a Dun & Bradstreet report says.

According to the research firm, though the government has already started taking measures and the RBI has initiated easing the monetary policy, its impact on the industrial activity is likely to take some time.

"IIP is expected to remain volatile and IIP growth is expected to remain in the range of 1-2 per cent during January," the report said.

The industrial output contracted by 0.6 per cent in December registering the second consecutive month of decline.

"The sustained volatility in the industrial activity indicates that the revival in growth would be delayed than expected.

"This raises hope that the RBI would continue to ease its monetary policy to boost confidence and support the industrial activity going ahead," Dun & Bradstreet India Senior Economist Arun Singh said.

The report further said that while the moderation in the consumption demand is expected to slow down the manufactured products inflation, upside risks to overall inflation in the medium term persists from the gradual hike in the diesel

prices and increase in global crude oil prices.

D&B expects the WPI inflation to remain in the range of 6.3-6.5 per cent in February 2013 and CPI inflation continuing to hover above the double digit at around 10.7 per cent-10.9 per cent in January.

"The divergence in the WPI and CPI inflation points to the prevalence of the structural bottlenecks which needs to be addressed," Singh said.

The central bank had last month lowered interest rates by 0.25 per cent saying that with inflation showing signs of remaining range bound, it was now critical to arrest the loss of growth momentum.

According to the advance estimates of Central Statistical Organisation (CSO), the GDP growth in the current fiscal is likely to be 5 per cent. However, the government expects it to be over 5.5 per cent. The economy grew by 6.2 per cent in 2011-12 fiscal.

Regarding the upcoming Union Budget of 2013-14, Singh said it is expected to address the structural bottlenecks and deliver measures which would bring about stability, reinforce the growth prospects and also instill confidence among companies, Singh added.

Source: http://www.indianexpress.com/news/industrial-production-growth-likely-to-remain-12--in-january-d-b-report/1078146/0

Banking fraud total jumped 43% to Rs 52.66 cr in 2012: Govt

The total amount involved in banking fraud rose by 43.4 per cent to Rs 52.66 crore in 2012 from Rs 36.72 crore in the previous year as reported by RBI, Parliament was informed today.

However, the number of total cases in 2012 (calender year) was lower at 8,322 from 9,588 in 2011, Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

In calendar year 2010, there were a total of 15,018 cases in respect of scheduled commercial banks pertaining to frauds relating to ATMs/Debit Cards/Internet Banking and Credit Cards involving Rs 40.48 crore, the Minister said.

Meena said the Reserve Bank has initiated several steps to strengthen security arrangements by banks.

"On receipt of fraud reports from banks, various aspects related to the frauds are examined and concerned banks are advised to report the case to CBI/police/SFIO, examine staff accountability, complete proceedings against the erring expeditiously, take steps to recover the amount involved in the fraud, claim insurance...and streamline the system as also procedures so that frauds do not recur," the Minister said citing an RBI circular.

He said the RBI has asked banks to take preventive measures to combat frauds relating to skimming or duplication of credit cards.

RBI has also advised banks to set up internal control systems to combat frauds and to take pro-active fraud control and enforcement measures to ensure that credit card operations are run on sound, prudent and profitable lines.

Moreover, it has also cautioned banks on phishing attacks containing details of the modus-operandi on such attacks and minimum set of preventive measures to tackle phishing attacks.

Meena said public is also advised through press releases, notifications not to reveal account details, not to fall prey to fictitious offers of fund transfer, remittance towards participation in lottery, money circulation schemes, and other fictitious schemes such as cheap funds.

Source: http://www.indianexpress.com/news/banking-fraud-total-jumped-43--to-rs-52.66-cr-in-2012-govt/1078212/0