The News International Team
Diamond Power has posted a strong set of numbers in Q2, with sales up 35 percent to Rs 896 crore and EBITDA at 10.5 percent. The company’s profits rose 30 percent to Rs 40.3 crore.
In an interview to CNBC-TV18, Amit Bhatnagar, MD, Diamond Power Infrastructure, said the flood in the plant and capacity constraints have impacted the conductor business during the quarter. He expects EBIT margins to stay in the range of 10-11 percent for the next two quarters.
The company expects a revenue growth of 35-40 percent in FY15, while it sees the tower business revenue at Rs 550 cr (in FY15).
11:30am FII View
The International Monetary Fund on Tuesday downgraded its outlook for global economic growth, citing persistent weakness in the eurozone and a broad slowdown in several major emerging markets.
Discussing the global markets, Richard Jerram, Chief Economist at Bank of Singapore, said the growth in Europe has been disappointing and that the economic situation in China also remains a concern.
“But if you look at Europe in general, the PMI is till above 50, which shows the economy is growing but it’s just not growing fast enough to bring unemployment down or to push away that concern about deflation,” he said.
On India, he said the IIP data, which was released on Friday, showed a volatile set of numbers. According to him, the hope and promise of reforms may reinvigorate some stalled projects in 6-12 months, but the economy simply cannot turnaround on a political promise. “Thus, there has been a massive disappointment in the medium term and you really need to see the signs of investment freeing up again. That may give a little bit more room for growth to accelerate,” he added.
11:00am Market Check
The market remained under pressure with the Sensex falling 106.11 points to 26191.27 and the Nifty declining 41.65 points to 7818.30 weighed down by private banks, auto, healthcare, oil & gas and capital goods stocks.
Declining shares outnumbered advancing ones by a ratio of 1323 to 996 on the Bombay Stock Exchange.
Infosys gained another 1.4 percent as brokerages increased target price on the stock. Barclays raised its target from Rs 3,800 to Rs 4,650 as new CEO’s plan to embrace newer technologies such as automation and AI to drive growth, is a step in the right direction. While Nomura raised target price to Rs 4,300 given a supportive demand environment, higher comfort on current management and likely cash return possibility.
ACC fell 2 percent as the Odisha and Jharkhand governments have issued closure notices to ACC’s limestone mines at Chaibasa and Bargah which will impact total clinker production. The management said that the grinding units of these plants are continuing with transfer of clinker from sister works.
Future Retail climbed 2.6 percent after the company signed agreement with Amazon to sell goods online. Future group will sell more than 45 own labels of apparel initially. Morgan Stanley said this agreement with Amazon could be a game changer for Future Group and is a step forward in the group’s Omni channel strategy.
OBC gained nearly 2 percent after Goldman Sachs upgraded the bank to buy from neutral with a target price of Rs 350.
Diamond Power reacted to a good set of results, up 12 percent as Q2 sales rose 35 percent to Rs 896 crore and profit jumped 30 percent to Rs 40.3 crore year-on-year.