Tata Motors reported a 50% fall in net profits for the fourth quarter ending March 2018 to Rs.2175 crore. This was largely led down by a provision of Rs.1641 crore that Tata Motors had to make for impairments of certain products. Consolidated revenues were up by 18% for the fourth quarter and the principal business of JLR continues to flatter the street. For the fiscal year 2017-18, JLR reported 6% higher net revenues of £25.79 billion. The rise in sales was driven by strong demand growth in key markets for JLR like the US and China.
Investcorp based in the Gulf Region could be close to acquiring IDFC’s realty and P/E business of IDFC Alternatives. Investcorp currently manages assets worth more than $22 billion across asset classes like private equity, realty, special situations funds etc. Apart from the Middle East, Investcorp is present in New York, London and Singapore too. Investcorp has the track record of managing more than 300 property investments in the past and has invested more than $11 billion in real estate alone. This sale will allow IDFC to monetize some of its non-core assets.
During the quarter when Indigo and Spice Jet reported a decent profit performance, Jet Airways has reported a sharp increase in the losses on the back of higher fuel prices. Revenue from operations increased by 9% but fuel expenses surged by 31%, leading to this anomaly. The quarterly loss was at Rs.1036 crore compared to a loss of Rs.602 crore in the corresponding quarter last year. While the sharp growth in the domestic aviation market has been a positive for airline stocks, the rising crude oil prices has narrowed the spread between the RASK and the CASK, which is the business spread.
The rupee neared its all-time low as the rupee value rapidly depreciated to Rs.68.42/$. The INR was at 63.5/$ just 5 months back. The INR had touched a closing low of Rs.68.80/$ back in August 2013 and now the INR looks poised to snap that level. Importers and borrowers having un-hedged currency exposures rushed to buy forex cover which resulted in a sharp rise in the demand for the dollar. There was a virtual rush from banks and importers to buy dollars and even the RBI did not intervene too decisively in the forex market. However, this fall is likely to benefit exporters.
After a lot of drama the Karnataka government was finally formed with the Congress party supporting H D Kumaraswamy’s candidature for the post of chief minister. Most of the national leaders attended the swearing-in function although Mr. Kumaraswamy still has to prove his majority on the floor of the house on Friday. The Congress will get to nominate more cabinet ministers and will also have the privilege of nominating its deputy chief minister and the speaker in the assembly. With twice as many MLAs in the Karnataka assembly, Congress has extracted its pound of flesh with twice as many ministers. Some of the big opposition guns who attended the ceremony include Mr. Akhilesh Yadav, Mr. Chandrababu Naidu, Ms. Mamata Banerjee, Mr. Arvind Kejriwal, Sitaram Yechury and Tejashwi Yadav attended.
With most downstream oil companies coming under pressure due to the fuel price uncertainty, HPCL has mooted the idea of including fuel in the ambit of GST. Oil marketers have increased the price of petrol and diesel for the 10th consecutive day. The government had increased the excise duty 8 times in 2015 and has reduced only once. With free pricing of petrol and diesel, most of the burden is being passed on to the end customer. GST will rationalize the tax structure; however the GST Council with all state finance ministers has not been able to arrive at an agreeable formula.
