Monthly Auto Sales Disappoints
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SIGH OF RELIEF
FCCB holders of debt laden Suzlon Energy have finally agreed to a settlement. Here are some details to put things in perspective. Suzlon had FCCB loans amounting to a total of USD 448 million on its books. In the year 2012 the company had for the first time defaulted on the repayment of a part of these loans amounting to USD 200 million. Very recently it also failed to service the remaining chunk of this debt amounting to USD 228 million triggering a double default. Following rigorous negotiations the company has now managed to get its lenders to agree to restructure the whole loan by converting the said liability into a fresh FCCB loan to stand on its books amounting to USD 500 million to be repaid or converted into equity within the next five years. The deal provides a whiff of fresh air to the gasping company and the stock will surely see the positive impact of this development over the next few years. Good to hear, but still stay miles away from this counter if you are a long term investor. Traders and punters go enjoy!
ORDERS INFLOW
Economic activity is in a slowdown and hence any news that suggests a pick up in its pace is such a welcome one. Hindustan Construction Company has been awarded a contract by IRCON International for the construction of one tunnel and two bridges. These will be constructed between Aprinchala and Sumber Stations on the Dharam and Qazigund sections of the Udhampur-Srinagar- Baramulla New Broad Gauge Railway Line Project in Jammu & Kashmir. Value at Rs 442.52 Crore the project will be completed in 48 months. No matter how small this may look in the overall scheme of the economy, it does send a signal of things moving forward in the right direction.
DISMAL NUMBERS
Auto sales have been a drag for quite some time now. But the worst is always the most worrisome and when it is the country’s largest commercial vehicle manufacturer you have to sit up and take note of it. Tata Motors sold a total of 37852 units including exports in the month of December 2013. These may be in line with the monthly sales numbers of its peers, but the decline of 42.28 per cent on YoY basis and 7.37 per cent on a MoM basis is so huge that it certainly reflects on poor state that the auto industry is currently in.
LIGHTING UP
Here is some news to cheer your gloomy mood and light up your mind if you have been worried about the condition of the power sector. Adani Power, India’s largest thermal private power producer and part of the Adani Group, has announced that its state-of-the-art 4620 megawatts (MW) power plant at Mundra, has set a new record. The plant has reportedly generated 4,644 MW of power, the highest generation by it so far making it the only power station to reach a significant milestone in electricity production. That should make us proud and surely deserves a pat on the private sectors back for having achieved something of cognizance in a sector largely dominated by the government. But consistency is something that is valued across the board and functions. Hope it keeps up with its strong performance.
MINING OF FORTUNE
Vedanta group firm Sesa Sterlite has resumed iron ore mining in Karnataka after a gap of more than two years. It has been in a position to do so, having secured the final nod from a Supreme Court appointed monitoring panel. The resumption of operations comes eight months after the Supreme Court lifted the mining ban in Karnataka in April of 2013. A new beginning in a new year.