IIP Growth, Inflation and Infosys result
Today market was awaiting
important event as inflation data, IIP data and Infosys result. IIP numbers and
Infosys result has completely disappointed to the market. Infosys share fall
more than 20 pct to hit 3 month low on FY14 guidance. The only relief is
that CPI inflation has declined in March but overall share market mood is
negative.
Industrial production
growth decreased to 0.6 percent in February from a year earlier as per today’s government
data. In April,2012 –February,2013 , the index of industrial production (IIP)
slowed to 0.9% from 3.5% a year ago. In the fiscal year 2012-13, car
sales also fell 6.7%, the first drop in 12 years.
India’s annual consumer
price inflation slowed to 10.39 percent in March from the previous month.
Food prices for consumers rose 12.42 percent on year in March, slower than an
annual rise of 13.73 percent in February.
Infosys has missed its
organic revenue growth guidance of 5% for the full year. Revenue grew by just
4.2% in fiscal 2013. Consolidated net profit for the fiscal fourth quarter
ended March 31 was 23.9 billion rupees, compared with 23.16 billion in the same
period a year earlier. Revenue for the quarter rose 18 percent to 104.5 billion
rupees. The company said it expects dollar revenue for the fiscal year
that began this month to grow between 6 percent and 10 percent. The company has
missed its annual rupee revenue guidance. But it has improved on its
earnings per share (Rs 164.87 against Rs 162.80 projected earlier).
Even after having
such a huge cash pile, the company remains stingy with dividends. Last year,
the company paid out Rs 47 a share as full year’s dividend; this year, with
even more cash in the bank, it is paying out less at Rs 42, with a final
dividend of Rs 27 announced today.
The next Reserve Bank of
India monetary policy will relax interest or not it will depend on the status
of the current account and budget deficits.
Hoping the economic
condition should be improve.
For more detail about any other query related investment, you can contact
me through my email.
Regards,
Arvind Trivedi
Certified Financial Planner
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