Saturday, February 21, 2015

BNRSTOCKS-TWEETS..2015..!!!!

Posted by BAMMIDI NAGESWARARAO at 2/21/2015 11:53:00 am 0 comments

SHIPPING COMPANY WOES.!!...GE, MERCATOR, SCI,ESSAR..!!

Why did Baltic Dry Index drop to its lowest point ever?

Wednesday, 18 February 2015 - 9:55am IST | Place: Mumbai | Agency: dna Web Tea
The earlier lowest point was 554 in the August of 1986.
  • Representational image AFP AFP photo
Baltic Dry Index (BDI), the measure of the freight costs of shipping, has fallen to its lowest point in 30  years on the back of the imminent economic slowdown in China. 
According to Bloomberg data, on Tuesday, BDI dropped another 1.15% to close at 516 points. The index has already fallen over 34% year-to-date and nearly 55% over the past year. 
The earlier lowest point was 554 in the August of 1986. 
The global commodity trade is dominated by Chinese imports of key raw materials like coal and iron ore. In the wake of the slowdown in Chinese economy, the demand for these raw materials is falling and the cargo ships are running idle, leading to the fall , or freight rates. 
Various reports ranging from International Monetary Fund to the World Bank, theChinese economy is slowing down. 
In January this month, China posted its weakest annual growth rates in 24 years. 
The country even missed the official target and grew by only 7.4% last year. In the year before last, Chinese economy expanded by 7.7%. 
The effect of this Chinese slowdown has impacted its international trade as well. 
Its exports in January fell by over 3% and imports nosedived by 20%. 
It is this fall in imports that is putting pressure on freight rates across the world and the subsequent fall in BDI. 
Between its imports of iron and coal, China commands over 50% of the world's demand for these two raw materials. 
According to this report, the fall in Chinese imports is steepest since the economic slowdown of 2009. 
Another reason for this fall in BDI is excess shipping capacity. 
Shipping companies across the world went on a buying spree in wake of ever increase Chinese appetite for raw materials to fuel its economy. 
However, the global economic slowdown of the past decade reversed the trend. The result was the fall in commodity prices because of lack of demand. Shipping companies, who were adding capacity at a fast pace to handle the growing demand were suddenly sitting with huge debts and idle ships. 
http://www.dnaindia.com/money/report-china-slowdown-baltic-dry-index-drops-to-30-year-lows-2061992

Posted by BAMMIDI NAGESWARARAO at 2/21/2015 11:44:00 am 0 comments

Thursday, February 19, 2015

RCOM-QIP- STOCK SLIDE..HUGE DEBT.!!!

Reliance Communications’ QIP investors lose nearly 50% QIP issuance has turned out to be a regrettable chapter from an investor relations’ perspective Mobis Philipose 
 Monetization of the company’s non-core assets continues to look like a distant dream. Photo: Hemant Mishra/Mint Reliance Communications Ltd (R-Com) had struck when the iron was hot in mid-2014. It raised Rs.4,800 crore through a qualified institutional placement (QIP) at a time when the risk appetite for Indian stocks had risen considerably. But the large investors who bought shares in the issue are now sitting on a loss of almost 50%. 

 As far as the company goes, it may have got the funds, but from an investor relations’ perspective, the QIP issuance has turned out to be a regrettable chapter. During the time of the issue, it had seemed that R-Com would backup the fund-raising with sale of non-core assets.

 A report in The Economic Times had said in June 2014 that the company plans to sell its international business, Global Cloud Xchange, in the next three-four months, its direct-to-home television business in six months and its real estate holdings over a two-three year period. But about eight months later, there is no visibility on any of this. Monetization of the company’s non-core assets continues to look like a distant dream. Besides, as R-Com’s quarterly results statements have shown, there’s hardly anything in its operational performance to get excited about.

 In the December quarter, revenues and Ebitda (earnings before interest, taxes, depreciation and amortization) rose by 1.2% and 0.3%, respectively. In the nine months till December, Ebitda fell by 5.7%, while revenues were more or less flat. Meanwhile, competitors Bharti Airtel Ltd and Idea Cellular Ltd have been reporting strong growth in profit in the past few quarters. In addition, R-Com faces the greatest risk from the impending entry of Reliance Jio Infocomm Ltd. Analysts say that one of R-Com’s thriving businesses is data cards (also known as dongles), which can immediately come under pressure from Reliance Jio’s data-centric offerings.

 According to an analyst with a domestic institutional brokerage firm, in the forthcoming auctions, the company also faces the risk of not being able to get renewal spectrum to continue services in some key circles. The reason for this is that the spectrum on offer is limited, and larger companies such as Bharti Airtel, Idea Cellular and Vodafone India Ltd may well use their financial muscle to buy better quality 900 megahertz spectrum, even in circles where they aren’t compelled to bid. R-Com, on the other hand, is laden with debt and doesn’t have the luxury of some of its competitors while bidding in the auctions.

 After the QIP issue, net debt has reduced from around Rs.40,000 crore to Rs.36,767 crore. A silver lining is that the company is generating cash flow from its core operations. However, it has no option but to quickly monetize non-core assets and reduce debt. The longer it takes to do this, the more it will distance investors. The writer doesn’t own shares in the above-mentioned companies.

Read more at: http://www.livemint.com/Money/Tazh7uS5kzzC0UVo5rcjDK/Reliance-Communications-QIP-investors-lose-nearly-50.html?utm_source=copy
Posted by BAMMIDI NAGESWARARAO at 2/19/2015 11:22:00 pm 0 comments

Monday, February 16, 2015

RE-NEW-ENERGY.. Rs. 5 lakh crore!!!!

CHENNAI, FEBRUARY 16:  
The “commitments” made by a couple of hundred renewable energy companies for setting up 266,000 MW of solar and wind power projects over the next five years has created a wave of derisive sniggers in the industry.
Many industry insiders as well as observers feel that too much hype and unrealistic ambitions can only harm the industry.
“Given the base we are at today, of around 30,000 MW (of installed capacity of renewable energy), 266,000 MW in five years looks high,” says Santosh Kamath, Partner and Head-Renewables, KPMG. However, even if 50 per cent of it is achieved, it will be a game-changer for India, he says.
Today, at a conservative estimate, 1 MW of solar would call for Rs. 7 crore, and 1 MW of wind about Rs. 6.5 crore. Even assuming a still lower estimate of Rs. 6 crore a MW, 266,000 MW would require Rs. 16 lakh crore. At a debt-equity divide of 70:30, equity required would be close to Rs. 5 lakh crore, or roughly $ 80 billion—over the next five years.
“Against 266 GW of commitments, banks have offered funding commitments of only 78 GW,” says Dr Arunabha Ghosh, Chief Executive Officer of the Council on Energy, Environment and Water, a Delhi-based think-tank.
Even the 100 GW solar target of the Ministry of New and Renewable Energy would call for $ 160 billion, says Dr Ghosh.
According to Mercom Capital, which tracks funding for the renewable energy industry, the announced large-scale project funding in 2014 globally was $ 20 billion.
The message distilled from the various numbers is the commitments are too ambitions even only from financing perspective. And then there are other challenges.
Ashwin Gambhir of another think-tank, Prayas Energy Group of Pune, points to three key challenges: financial viability of the entire distribution sector, ensuring project development and land use, and issues relating to grid. “All this would require effective and innovative implementation mechanisms,” he says. Arunabha Ghosh speaks of the need for over all credit guarantee and payment security as key issues.
Many solar developers that Business Line talked (though none of them was willing to be quoted) said that while the commitments totalling 266 GW reflect the rise of renewable energy, unrealistic targets build up high expectations leading on to a bad name for the industry.
(This article was published on February 16, 2015)
http://www.thehindubusinessline.com/economy/renewable-energy-hype-unviable-
promises-not-good-for-the-industry/article6902306.ece
Posted by BAMMIDI NAGESWARARAO at 2/16/2015 09:10:00 pm 0 comments

Sunday, February 15, 2015

CSR- 14000 Cr !!

CSR spend may grow over 4 times to Rs 15k cr: Study

The finding was part of a report by consultancy firm BCG and Nasscom Foundation
Press Trust of India  |  New Delhi  
 Last Updated at 10:40 IST

Spending by Indian companies on corporate social responsibility (CSR) activities can grow more than four times to $2.5 billion (over Rs 15,000 crore) a year if all companies spend the funds as per the norms.

The total spending on CSR initiatives stood at $600 million in the 2012-13 fiscal, while almost half was accounted for by top 10 entities including RIL, Coal India, Tata Steel and SBI.

These funds were spent by the companies on various social initiatives of the government and NGOs.

"If all eligible companies spend their mandated budget this year, CSR spend is estimated to grow about four times to $2.5 billion and technology companies will likely contribute about 20 per cent or more of this," according to a report by consultancy firm BCG and Nasscom Foundation.

As per the new regulations under the Companies Act, 2013, the government has mandated a minimum CSR spend of 2 per cent of the company's profits, for all organisations above a certain size of revenues and profit.

Analysis of CSR activities of top 100 companies shows that the mode of giving has primarily been through NGOs and other social organisations as around 90 per cent companies are channelling their funds through these organisations.

"While majority of companies have established in-house foundations to engage in social activities, around 10 per cent of the organisations choose to design and execute activities directly through them," the report said.

Besides providing monetary assistance, companies are now also beginning to show greater degree of involvement in social initiatives like volunteering and providing expertise on best practices to NGOs.

A sector-wise analysis shows education and healthcare have received disproportionate attention with around 80 per cent of the companies supporting these two sectors.

Many companies are focusing on providing access to quality primary education, supporting mid-day meals at schools as well as health check-ups or blood donation camps. Other focus areas include skills development, women's empowerment and environment sustainability.

The CSR norms came into effect from April 1 last year through the Companies Act, 2013, which is being implemented by the Corporate Affairs Ministry.

As per the norms, a certain class of profitable companies are required to shell out at least 2 per cent of their three- year average annual net profit on CSR activities.

Going by estimates, about Rs 14,000 crore is expected to be spent towards CSR activities by companies in the current fiscal.

http://www.business-standard.com/article/pti-stories/csr-spend-may-grow-over-4-times-to-2-5-bn-study-115021500107_1.html
Posted by BAMMIDI NAGESWARARAO at 2/15/2015 11:01:00 pm 0 comments
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