Companies and Markets

Companies & Markets

Rationalisation helps Medimix grow revenues, profits

Can rationalisation of distribution network increase revenues along with profits? Chennai-based Cholayil saw Medimix, its ayurvedic bath soap brand, becoming profitable and its revenues growing faster after it brought down its presence in non-south markets to less than one-fifth. 

The company took a decision to rationalise its presence in 500 districts in north, east and west markets last year.

The presence of Medimix was withdrawn from those districts, which did not qualify as per the benchmarked sales target.

Debit card usage spurts

Over a year after demonetisation digital transactions are on the rise though under the cloak of digital transaction it is cash withdrawals, which is pushing up usage of debit cards at automated teller machines instead of bank branches, as they slap fees on such transactions.

Debit card usages that accounts for 90 per cent of the total card related payment and settlement systems, continues to hold dominant position, according to the data released by Reserve Bank of India for September 2017.

‘We have not been defaulting on loans for last four quarters’

The progressive recovery of the steel market and the recent imposition of the countervailing duty (CVD) on flat stainless steel products have given a fresh lease of life to stressed steel maker Jindal Stainless (Hisar), with its scrip soaring over six times in the last one year. The share peaked in late September, days after the government imposed the 18.9 per cent CVD on import of flat stainless steel products from China.

Refrain from fresh purchases

The week gone by was a topsy-turvy one and the market gained n three of the five days, yet ended with weekly losses. It was sheer fatigue which saw selling and profit booking at higher levels. Further the liquidity in the system was absorbed to a large extent by the spate of large insurance company IPOs. The Sensex ended with losses of 371 points, or 1.11 per cent, while the Nifty lost 130.75 points, or 1.27 per cent.

Sebi move on record keeping impractical

A grouping of stock brokers has termed Sebi’s directive of compulsorily keeping records of telephonic communications with clients as “not practical” since that would be difficult in terms of identification and retrieval.

JLR drives up Q2 for Tata Motors, net profit jumps three-fold

Driven by a strong performance from its UK unit Jaguar Land Rover Automotive Plc (JLR), India’s largest automaker by revenue, Tata Motors, on Thursday reported a three-fold jump in its net profit to Rs 2,502 crore in the September quarter as against Rs 848 crore in the same period last year.

The surge in net profits was aided by a one-time excise gain of Rs 535 crore, cost-reductions at the planning and strategic levels as well as better margins at JLR.

India pulls down global gold demand in Q3

India, one of the largest markets for gold, pulled down the global demand for the metal in Q3. Indian gold demand in September quarter declined 24 per cent to 146 tonnes--the lowest Q3 demand since 2005.

Retail investors turn cautious with insurance IPOs

Retail investors have matured and have become extremely choosy in the primary market, especially in the insurance space. The HDFC Standard Life Insurance IPO, which seemed a cake walk for the company and its merchant bankers, got a lukewarm response from the retail investors.

The HDFC Life pricing was seen as expensive by many analysts and brokers. They now say the chances of lower listing gains led to the portion of retail individual investors not getting fully subscribed, as per the latest data post-the IPO closure on Thursday.

Bharat Forge net rises 61%; to issue 1:1 bonus shares

Bharat Forge, the world’s biggest forging company, on Wednesday reported that its net profit for the three months to September rose by 60.5 per cent to Rs 203.72 crore, thanks to higher income and operational performance. This was marginally higher than the Rs 200 crore estimated by analysts tracked by Bloomberg.

The Pune-headquartered auto components major had posted a net profit at Rs 126.89 crore during the same quarter last year, Bharat Forge said in a regulatory filing.