Sensex, Nifty hit lowest closing level in nearly 21 months
Steep losses for stocks of public sector banks triggered by concerns about sticky loans pulled key equity benchmark indices lower, with the barometer index, the S&P BSE Sensex, falling below the psychologically important 24,000 mark. The Sensex lost 262.08 points or 1.09% to settle at 23,758.90. The 50-unit Nifty 50 index lost 82.50 points or 1.13% to settle at 7,215.70. Weak Asian cues spoiled investors' sentiment, with the Sensex and the Nifty extending their slide to the third straight trading session. The two key benchmarks remained in negative zone throughout the trading session after opening with downward gap. The Sensex and the Nifty, both, hit their lowest closing level in nearly 21 months.
Stocks of public sector banks fell sharply after Punjab National Bank, Indian Overseas Bank, Allahabad Bank and Central Bank of India reported weak Q3 December 2015 results in wake of the Reserve Bank of India (RBI) directing banks to revise asset classification and provisions in respect of certain advance accounts over a period of two quarters starting from Q3 December 2015. Hindalco Industries fell after the company's US subsidiary Novelis reported weak Q3 results yesterday, 9 February 2016.
Dr Reddy's Laboratories edged lower, with the stock extending losses registered during the previous trading session triggered by the company reporting a marginal rise in net profit in Q3 December 2015. Lupin edged lower, with the stock sliding on profit booking after recent sharp surge triggered by the company reporting strong earnings on sequential basis in Q3 December 2015.
The broad market depicted weakness. More than three stocks fell for each stock that rose on BSE. 1,995 shares fell and 653 shares rose. A total of 105 shares were unchanged. Quite a few stocks constituting the broad based BSE Small-Cap index registered losses exceeding 3%. The BSE Small-Cap index shed 1.42%. The losses for this index were higher in percentage terms than those for the Sensex. The BSE Mid-Cap index lost 0.95%. The losses for this index were lower in percentage terms than those for the Sensex. Eighteen out of a total of nineteen sectoral indices on BSE registered losses.
In overseas stock markets, Asian markets extended fall in the Lunar New Year's first week of trading, with selloffs in Japan and Singapore today, 10 February 2016. European equities jumped as bargain hunting emerged after a recent selloff in stock prices.
The Sensex lost 262.08 points or 1.09% to settle at 23,758.90, its lowest closing level since 12 May 2014. The index fell 384.26 points or 1.6% at the day's low of 23,636.72. The index fell 82.66 points or 0.34% at the day's high of 23,938.32.
The Nifty lost 82.50 points or 1.13% to settle at 7,215.70, its lowest closing level since 16 May 2014. The index fell 120.45 points or 1.65% at the day's low of 7,177.75. The index fell 26.35 points or 0.36% at the day's high of 7,271.85.
Eighteen out of a total of nineteen sectoral indices on BSE registered losses. The S&P BSE FMCG index (down 1.37%), the BSE Finance index (down 2.16%), the BSE Healthcare index (down 1.55%), the BSE Auto index (down 1.18%), the BSE Bankex index (down 2.04%) and the BSE Realty index (down 3.46%) underperformed the Sensex. The S&P BSE Telecom index (down 0.98%), the BSE Oil & Gas index (down 0.75%) and the BSE Power index (down 0.67%) outperformed the Sensex.
Stocks of public sector banks fell sharply after Punjab National Bank, Indian Overseas Bank, Allahabad Bank and Central Bank of India reported weak Q3 December 2015 results in wake of the Reserve Bank of India (RBI) directing banks to revise asset classification and provisions in respect of certain advance accounts over a period of two quarters starting from Q3 December 2015. Bank of India (down 5.82%), Bank of Baroda (down 5.28%), Union Bank of India (down 4.88%) and State Bank of India (down 4.82%) edged lower.
Punjab National Bank (PNB) dropped 8.99% at Rs 79.95, with the stock extending losses registered during the previous trading session triggered by the state-run bank announcing dismal Q3 result. The stock had lost 6.89% to settle at Rs 87.85 yesterday, 9 February 2016. PNB's net profit dropped 93.4% to Rs 51.01 crore on 7.6% rise in total income to Rs 13891.20 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours yesterday, 9 February 2016.
Central Bank of India lost 12.37% at Rs 54.20 after the state-run bank declared net loss of Rs 836.62 crore in Q3 December 2015 as compared with net profit of Rs 137.65 crore in Q3 December 2014. Total income fell 1.7% to Rs 6911.62 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
The bank's provisions and contingencies jumped 114.46% to Rs 1499.05 crore in Q3 December 2015 over Q3 December 2014. Provision coverage ratio as at 31 December 2015 stood at 52.95%. The Reserve Bank of India (RBI) has recently advised banks to review certain borrowal accounts and their classification over the two quarters ending 31 December 2015 and 31 March 2016. The bank made an additional provision of Rs 490.64 crore in Q3 December 2015 in certain accounts.
On absolute basis, the bank's gross non-performing assets (NPAs) stood at Rs 17563.83 crore as on 31 December 2015 as against Rs 13358.15 crore as on 30 September 2015 and Rs 11792.50 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 8.95% as on 31 December 2015 as against 6.86% as on 30 September 2015 and 6.2% as on 31 December 2014. The ratio of net NPAs to net advances stood at 5.3% as on 31 December 2015 as against 3.83% as on 30 September 2015 and 3.58% as on 31 December 2014.
Allahabad Bank lost 9.61% at Rs 46.10 after the state-run bank reported net loss of Rs 486.14 crore in Q3 December 2015 as against net profit of Rs 164.11 crore in Q3 December 2014. Total income declined 6.61% to Rs 5030.19 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
Allahabad Bank's provisions and contingencies surged 87.7% to Rs 1208.15 crore in Q3 December 2015 over Q3 December 2014. The bank's non-performing loan provision coverage ratio as on 31 December 2015 stood at 55.4%.
Allahabad Bank's gross non-performing assets (NPAs) stood at Rs 9802.10 crore as on 31 December 2015 compared with Rs 7985.75 crore as on 30 September 2015 and Rs 8012.42 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 6.4% as on 31 December 2015 as against 5.26% as on 30 September 2015 and 5.46% as on 31 December 2014. The ratio of net NPAs to net advances stood at 4.23% as on 31 December 2015 as against 3.61% as on 30 September 2015 and 3.89% as on 31 December 2014.
Indian Overseas Bank declined 5.2% at Rs 23.70 after the bank reported net loss of Rs 1425.06 crore in Q3 December 2015 compared with net loss of Rs 516.03 crore in Q3 December 2014. Total income fell 3.03% to Rs 6445.78 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
Indian Overseas Bank said that increase in provisions for domestic and overseas advances, including provisions made for asset quality review as per Reserve Bank of India (RBI) directions resulted in the bank reporting a massive net loss of Rs 1425.06 crore in Q3 December 2015.
Indian Overseas Bank's provisions and contingencies rose 60.27% to Rs 1896.06 crore in Q3 December 2015 over Q3 December 2014. On absolute basis, Indian Overseas Bank's gross non-performing assets (NPAs) stood at Rs 22672.40 crore as on 31 December 2015, compared with Rs 19423.75 crore as on 30 September 2015 and Rs 14500.51 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 12.64% as on 31 December 2015 as against 11% as on 30 September 2015 and 8.12% as on 31 December 2014. The ratio of net NPAs to net advances stood at 8.32% as on 31 December 2015 as against 7.41% as on 30 September 2015 and 5.52% as on 31 December 2014.
Stocks of private sector banks also edged lower. IndusInd Bank (down 3.92%), Kotak Mahindra Bank (down 1.62%), HDFC Bank (down 1.18%), Axis Bank (down 1.8%), ICICI Bank (down 1.03%) and Yes Bank (down 1.78%) declined.
Pharma stocks declined. Aurobindo Pharma (down 6.94%), Ipca Laboratories (down 5.17%), Wockhardt (down 3.3%), Divi's Laboratories (down 2.18%), Glenmark Pharmaceuticals (down 1.27%), Alkem Laboratories (down 1.31%), Sun Pharmaceutical Industries (down 0.5%) and Cadila Healthcare (down 0.55%) edged lower. Strides Shasun (up 1.07%) and GlaxoSmithkline Pharmaceuticals (up 0.33%) edged higher.
Cipla lost 3.17% at Rs 538.85. The company's consolidated net profit rose 4.68% to Rs 343.20 crore on 12.33% growth in net total income from operations to Rs 3106.55 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours today, 10 February 2016.
Dr Reddy's Laboratories declined 2.46% at Rs 2,886.95, with the stock extending losses registered during the previous trading session triggered by the company reporting a marginal rise in net profit in Q3 December 2015. Shares of Dr Reddy's Laboratories had declined 3.61% to settle at Rs 2,959.65 yesterday, 9 February 2016. The company's consolidated net profit rose 0.81% to Rs 579.20 crore on 2.65% rise in total income to Rs 3980.10 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours yesterday, 9 February 2016.
Lupin lost 2.16% at Rs 1,862.80, with the stock sliding on profit booking after recent sharp surge triggered by the company reporting strong earnings on sequential basis in Q3 December 2015. Shares of Lupin jumped 15.24% in the preceding three trading sessions to settle at Rs 1,904 yesterday, 9 February 2016, from its close of Rs 1,652.10 on 4 February 2016. Lupin's consolidated net profit rose 29.57% to Rs 529.75 crore on 5.64% growth in net sales to Rs 3357.66 crore in Q3 December 2015 over Q2 September 2015. The result was announced during trading hours on 5 February 2016.
Auto stocks edged lower. Tata Motors (down 6.04%), Eicher Motors (down 1.49%), Hero MotoCorp (down 1.25%), Bajaj Auto (down 0.28%) and Ashok Leyland (down 1.13%) edged lower. Mahindra & Mahindra (up 0.15%), Maruti Suzuki India (up 0.72%) and TVS Motor Company (up 0.23%) edged higher.
TCS fell 0.5% at Rs 2,270.05. The stock hit a high of Rs 2,290 and a low of Rs 2,258.05 in intraday trade. The company allayed market concerns about the state of demand in the banking and financial services (BFS) industry vertical by reiterating that the company's business in the BFS vertical continues to grow well, ahead of the overall company growth. On the eve of an event by Nasscom in Mumbai, TCS pointed out that revenue from the BFS industry vertical in calendar year (CY) 2015 grew by 15% year-on-year in constant currency terms. On the other hand, company-wide revenue grew 13.5% on a constant currency revenue basis in CY 2015, representing absolute incremental revenue of $2.025 billion, TCS said. On an organic basis, TCS' constant currency revenue addition of $1.85 billion is the highest in the industry in CY 2015, the company said. The announcement was made by the company after market hours yesterday, 9 February 2016.
Separately, TCS after market hours today, 10 February 2016, announced the successful implementation of TCS BaNCS for Corporate Actions at Colonial First State (CFS), platform provider of Commonwealth Bank of Australia (CBA).
Realty shares slumped. Housing Development & Infrastructure (down 6.88%), DLF (down 5.34%), Prestige Estates Projects (down 5.36%), Indiabulls Real Estate (down 4.15%), Unitech (down 2.78%), Godrej Properties (down 1.51%), Oberoi Realty (down 1.48%), D B Realty (down 1.28%) and Sobha (down 1.46%) edged lower.
Hindalco Industries lost 4.22% at Rs 67 after the company's unit, Novelis, reported weak Q3 results yesterday, 9 February 2016. Atlanta-based Novelis, a unit of Hindalco Industries and having business of aluminum rolling and recycling, yesterday, 9 February 2016, reported 40.74% decline in net profit excluding tax-effected special items to $32 million in Q3 December 2015 over Q3 December 2014. Despite higher shipments, revenues decreased 17% to $2.4 billion in Q3 December 2015 over Q3 December 2014, driven by significantly lower average aluminum prices and local market premiums. The result was announced after market hours yesterday, 9 February 2016.
Excluding the impact of metal price lag in both quarters, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4% to $238 million in Q3 December 2015 over Q3 December 2014. The increase was driven by higher shipments of automotive and beverage can sheet, partially offset by less favorable recycling benefits due to depressed aluminum prices as compared to the prior year. Current year results also reflect higher fixed costs associated with new automotive and recycling operations.
While average local market metal premiums stabilized during the Q3 December 2015, the company reported negative metal price lag of $26 million as it continued to turn higher average metal cost inventory from previous months. Although the company uses derivatives contracts to minimize the price lag associated with LME base aluminum prices, adequate cost-effective hedges are not available for local market premiums. Adjusted EBITDA for Q3 December 2015 including metal price lag was $212 million.
Tata Power fell 0.67% to Rs 59.20. The company announced during trading hours today, 10 February 2016, that it has achieved milestone of commissioning 450 megawatts in hydro power project in its centenary year. The company added that it will now aspire to add upto 40% generation capacity through non-fossil options to its incremental portfolio.
Meanwhile, the finance ministry said in a statement that a surge in government's customs duty collection on electrical and other machineries during the current fiscal is an indication of new investment taking place in the private sector. The finance ministry also said that buoyancy in government's service tax collections from segments such as banking and financial services, work contract services and goods transportation services also indicate high level of economic activities taking place in the country. The finance ministry expects to achieve the target of Rs 14.49 lakh crore of tax collections for the current year. It expects annual indirect tax collection to exceed the target by Rs 40000 crore which will compensate for an equivalent amount of likely shortfall in annual direct tax collections for the fiscal year 2015-16 based on figures of tax collection up to 31 January 2016.
The Sensex and the Nifty declined for the third straight session. The Sensex has fallen 858.07 points or 3.48% in the past three trading sessions from its close of 24,616.97 on 5 February 2016. The barometer index has fallen 1,111.79 points or 4.47% in this month so far (till 10 February 2016). The Sensex has fallen 2,358.64 points or 9.03% in calendar year 2016 so far (till 10 February 2016). The Sensex is off 6,265.84 points or 20.86%% from a record high of 30,024.74 hit on 4 March 2015.
Stocks of public sector banks fell sharply after Punjab National Bank, Indian Overseas Bank, Allahabad Bank and Central Bank of India reported weak Q3 December 2015 results in wake of the Reserve Bank of India (RBI) directing banks to revise asset classification and provisions in respect of certain advance accounts over a period of two quarters starting from Q3 December 2015. Hindalco Industries fell after the company's US subsidiary Novelis reported weak Q3 results yesterday, 9 February 2016.
Dr Reddy's Laboratories edged lower, with the stock extending losses registered during the previous trading session triggered by the company reporting a marginal rise in net profit in Q3 December 2015. Lupin edged lower, with the stock sliding on profit booking after recent sharp surge triggered by the company reporting strong earnings on sequential basis in Q3 December 2015.
The broad market depicted weakness. More than three stocks fell for each stock that rose on BSE. 1,995 shares fell and 653 shares rose. A total of 105 shares were unchanged. Quite a few stocks constituting the broad based BSE Small-Cap index registered losses exceeding 3%. The BSE Small-Cap index shed 1.42%. The losses for this index were higher in percentage terms than those for the Sensex. The BSE Mid-Cap index lost 0.95%. The losses for this index were lower in percentage terms than those for the Sensex. Eighteen out of a total of nineteen sectoral indices on BSE registered losses.
In overseas stock markets, Asian markets extended fall in the Lunar New Year's first week of trading, with selloffs in Japan and Singapore today, 10 February 2016. European equities jumped as bargain hunting emerged after a recent selloff in stock prices.
The Sensex lost 262.08 points or 1.09% to settle at 23,758.90, its lowest closing level since 12 May 2014. The index fell 384.26 points or 1.6% at the day's low of 23,636.72. The index fell 82.66 points or 0.34% at the day's high of 23,938.32.
The Nifty lost 82.50 points or 1.13% to settle at 7,215.70, its lowest closing level since 16 May 2014. The index fell 120.45 points or 1.65% at the day's low of 7,177.75. The index fell 26.35 points or 0.36% at the day's high of 7,271.85.
Eighteen out of a total of nineteen sectoral indices on BSE registered losses. The S&P BSE FMCG index (down 1.37%), the BSE Finance index (down 2.16%), the BSE Healthcare index (down 1.55%), the BSE Auto index (down 1.18%), the BSE Bankex index (down 2.04%) and the BSE Realty index (down 3.46%) underperformed the Sensex. The S&P BSE Telecom index (down 0.98%), the BSE Oil & Gas index (down 0.75%) and the BSE Power index (down 0.67%) outperformed the Sensex.
Stocks of public sector banks fell sharply after Punjab National Bank, Indian Overseas Bank, Allahabad Bank and Central Bank of India reported weak Q3 December 2015 results in wake of the Reserve Bank of India (RBI) directing banks to revise asset classification and provisions in respect of certain advance accounts over a period of two quarters starting from Q3 December 2015. Bank of India (down 5.82%), Bank of Baroda (down 5.28%), Union Bank of India (down 4.88%) and State Bank of India (down 4.82%) edged lower.
Punjab National Bank (PNB) dropped 8.99% at Rs 79.95, with the stock extending losses registered during the previous trading session triggered by the state-run bank announcing dismal Q3 result. The stock had lost 6.89% to settle at Rs 87.85 yesterday, 9 February 2016. PNB's net profit dropped 93.4% to Rs 51.01 crore on 7.6% rise in total income to Rs 13891.20 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours yesterday, 9 February 2016.
Central Bank of India lost 12.37% at Rs 54.20 after the state-run bank declared net loss of Rs 836.62 crore in Q3 December 2015 as compared with net profit of Rs 137.65 crore in Q3 December 2014. Total income fell 1.7% to Rs 6911.62 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
The bank's provisions and contingencies jumped 114.46% to Rs 1499.05 crore in Q3 December 2015 over Q3 December 2014. Provision coverage ratio as at 31 December 2015 stood at 52.95%. The Reserve Bank of India (RBI) has recently advised banks to review certain borrowal accounts and their classification over the two quarters ending 31 December 2015 and 31 March 2016. The bank made an additional provision of Rs 490.64 crore in Q3 December 2015 in certain accounts.
On absolute basis, the bank's gross non-performing assets (NPAs) stood at Rs 17563.83 crore as on 31 December 2015 as against Rs 13358.15 crore as on 30 September 2015 and Rs 11792.50 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 8.95% as on 31 December 2015 as against 6.86% as on 30 September 2015 and 6.2% as on 31 December 2014. The ratio of net NPAs to net advances stood at 5.3% as on 31 December 2015 as against 3.83% as on 30 September 2015 and 3.58% as on 31 December 2014.
Allahabad Bank lost 9.61% at Rs 46.10 after the state-run bank reported net loss of Rs 486.14 crore in Q3 December 2015 as against net profit of Rs 164.11 crore in Q3 December 2014. Total income declined 6.61% to Rs 5030.19 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
Allahabad Bank's provisions and contingencies surged 87.7% to Rs 1208.15 crore in Q3 December 2015 over Q3 December 2014. The bank's non-performing loan provision coverage ratio as on 31 December 2015 stood at 55.4%.
Allahabad Bank's gross non-performing assets (NPAs) stood at Rs 9802.10 crore as on 31 December 2015 compared with Rs 7985.75 crore as on 30 September 2015 and Rs 8012.42 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 6.4% as on 31 December 2015 as against 5.26% as on 30 September 2015 and 5.46% as on 31 December 2014. The ratio of net NPAs to net advances stood at 4.23% as on 31 December 2015 as against 3.61% as on 30 September 2015 and 3.89% as on 31 December 2014.
Indian Overseas Bank declined 5.2% at Rs 23.70 after the bank reported net loss of Rs 1425.06 crore in Q3 December 2015 compared with net loss of Rs 516.03 crore in Q3 December 2014. Total income fell 3.03% to Rs 6445.78 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 9 February 2016.
Indian Overseas Bank said that increase in provisions for domestic and overseas advances, including provisions made for asset quality review as per Reserve Bank of India (RBI) directions resulted in the bank reporting a massive net loss of Rs 1425.06 crore in Q3 December 2015.
Indian Overseas Bank's provisions and contingencies rose 60.27% to Rs 1896.06 crore in Q3 December 2015 over Q3 December 2014. On absolute basis, Indian Overseas Bank's gross non-performing assets (NPAs) stood at Rs 22672.40 crore as on 31 December 2015, compared with Rs 19423.75 crore as on 30 September 2015 and Rs 14500.51 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 12.64% as on 31 December 2015 as against 11% as on 30 September 2015 and 8.12% as on 31 December 2014. The ratio of net NPAs to net advances stood at 8.32% as on 31 December 2015 as against 7.41% as on 30 September 2015 and 5.52% as on 31 December 2014.
Stocks of private sector banks also edged lower. IndusInd Bank (down 3.92%), Kotak Mahindra Bank (down 1.62%), HDFC Bank (down 1.18%), Axis Bank (down 1.8%), ICICI Bank (down 1.03%) and Yes Bank (down 1.78%) declined.
Pharma stocks declined. Aurobindo Pharma (down 6.94%), Ipca Laboratories (down 5.17%), Wockhardt (down 3.3%), Divi's Laboratories (down 2.18%), Glenmark Pharmaceuticals (down 1.27%), Alkem Laboratories (down 1.31%), Sun Pharmaceutical Industries (down 0.5%) and Cadila Healthcare (down 0.55%) edged lower. Strides Shasun (up 1.07%) and GlaxoSmithkline Pharmaceuticals (up 0.33%) edged higher.
Cipla lost 3.17% at Rs 538.85. The company's consolidated net profit rose 4.68% to Rs 343.20 crore on 12.33% growth in net total income from operations to Rs 3106.55 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours today, 10 February 2016.
Dr Reddy's Laboratories declined 2.46% at Rs 2,886.95, with the stock extending losses registered during the previous trading session triggered by the company reporting a marginal rise in net profit in Q3 December 2015. Shares of Dr Reddy's Laboratories had declined 3.61% to settle at Rs 2,959.65 yesterday, 9 February 2016. The company's consolidated net profit rose 0.81% to Rs 579.20 crore on 2.65% rise in total income to Rs 3980.10 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours yesterday, 9 February 2016.
Lupin lost 2.16% at Rs 1,862.80, with the stock sliding on profit booking after recent sharp surge triggered by the company reporting strong earnings on sequential basis in Q3 December 2015. Shares of Lupin jumped 15.24% in the preceding three trading sessions to settle at Rs 1,904 yesterday, 9 February 2016, from its close of Rs 1,652.10 on 4 February 2016. Lupin's consolidated net profit rose 29.57% to Rs 529.75 crore on 5.64% growth in net sales to Rs 3357.66 crore in Q3 December 2015 over Q2 September 2015. The result was announced during trading hours on 5 February 2016.
Auto stocks edged lower. Tata Motors (down 6.04%), Eicher Motors (down 1.49%), Hero MotoCorp (down 1.25%), Bajaj Auto (down 0.28%) and Ashok Leyland (down 1.13%) edged lower. Mahindra & Mahindra (up 0.15%), Maruti Suzuki India (up 0.72%) and TVS Motor Company (up 0.23%) edged higher.
TCS fell 0.5% at Rs 2,270.05. The stock hit a high of Rs 2,290 and a low of Rs 2,258.05 in intraday trade. The company allayed market concerns about the state of demand in the banking and financial services (BFS) industry vertical by reiterating that the company's business in the BFS vertical continues to grow well, ahead of the overall company growth. On the eve of an event by Nasscom in Mumbai, TCS pointed out that revenue from the BFS industry vertical in calendar year (CY) 2015 grew by 15% year-on-year in constant currency terms. On the other hand, company-wide revenue grew 13.5% on a constant currency revenue basis in CY 2015, representing absolute incremental revenue of $2.025 billion, TCS said. On an organic basis, TCS' constant currency revenue addition of $1.85 billion is the highest in the industry in CY 2015, the company said. The announcement was made by the company after market hours yesterday, 9 February 2016.
Separately, TCS after market hours today, 10 February 2016, announced the successful implementation of TCS BaNCS for Corporate Actions at Colonial First State (CFS), platform provider of Commonwealth Bank of Australia (CBA).
Realty shares slumped. Housing Development & Infrastructure (down 6.88%), DLF (down 5.34%), Prestige Estates Projects (down 5.36%), Indiabulls Real Estate (down 4.15%), Unitech (down 2.78%), Godrej Properties (down 1.51%), Oberoi Realty (down 1.48%), D B Realty (down 1.28%) and Sobha (down 1.46%) edged lower.
Hindalco Industries lost 4.22% at Rs 67 after the company's unit, Novelis, reported weak Q3 results yesterday, 9 February 2016. Atlanta-based Novelis, a unit of Hindalco Industries and having business of aluminum rolling and recycling, yesterday, 9 February 2016, reported 40.74% decline in net profit excluding tax-effected special items to $32 million in Q3 December 2015 over Q3 December 2014. Despite higher shipments, revenues decreased 17% to $2.4 billion in Q3 December 2015 over Q3 December 2014, driven by significantly lower average aluminum prices and local market premiums. The result was announced after market hours yesterday, 9 February 2016.
Excluding the impact of metal price lag in both quarters, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4% to $238 million in Q3 December 2015 over Q3 December 2014. The increase was driven by higher shipments of automotive and beverage can sheet, partially offset by less favorable recycling benefits due to depressed aluminum prices as compared to the prior year. Current year results also reflect higher fixed costs associated with new automotive and recycling operations.
While average local market metal premiums stabilized during the Q3 December 2015, the company reported negative metal price lag of $26 million as it continued to turn higher average metal cost inventory from previous months. Although the company uses derivatives contracts to minimize the price lag associated with LME base aluminum prices, adequate cost-effective hedges are not available for local market premiums. Adjusted EBITDA for Q3 December 2015 including metal price lag was $212 million.
Tata Power fell 0.67% to Rs 59.20. The company announced during trading hours today, 10 February 2016, that it has achieved milestone of commissioning 450 megawatts in hydro power project in its centenary year. The company added that it will now aspire to add upto 40% generation capacity through non-fossil options to its incremental portfolio.
Meanwhile, the finance ministry said in a statement that a surge in government's customs duty collection on electrical and other machineries during the current fiscal is an indication of new investment taking place in the private sector. The finance ministry also said that buoyancy in government's service tax collections from segments such as banking and financial services, work contract services and goods transportation services also indicate high level of economic activities taking place in the country. The finance ministry expects to achieve the target of Rs 14.49 lakh crore of tax collections for the current year. It expects annual indirect tax collection to exceed the target by Rs 40000 crore which will compensate for an equivalent amount of likely shortfall in annual direct tax collections for the fiscal year 2015-16 based on figures of tax collection up to 31 January 2016.
The Sensex and the Nifty declined for the third straight session. The Sensex has fallen 858.07 points or 3.48% in the past three trading sessions from its close of 24,616.97 on 5 February 2016. The barometer index has fallen 1,111.79 points or 4.47% in this month so far (till 10 February 2016). The Sensex has fallen 2,358.64 points or 9.03% in calendar year 2016 so far (till 10 February 2016). The Sensex is off 6,265.84 points or 20.86%% from a record high of 30,024.74 hit on 4 March 2015.
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