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Tuesday, February 2, 2010
Fiscal deficit likely at 5.5%
Fiscal deficit likely at 5.5%
Hindustan Times, February 2, 2010, Page 23
The fiscal deficit for 2010-11 is likely to be pegged at 5.5 per cent of gross domestic product (GDP) as macroeconomic managers struggle to bring down government borrowings.
The fiscal deficit as a percentage of GDP is projected at 6.8 per cent this year.
The government had announced a series of measures, including tax breaks in many products, but many of these measures have left gaping hole in public finances, forcing the government to borrow a record Rs 4.51 lakh core.
“The deficit is expected to come down by 1.5 per cent every year amounting to about Rs 90,000 crore. This is a realistic target as expenditure pertaining to areas like the sixth pay commission implementation would be a one-time outflow,” an official, who did not wish to be identified, said.
While government expenses is set to cross Rs 11 lakh crore for the year mirroring the need for high public spending to spur growth, the government is banking on greater revenue buoyancy, on the back of a fast recovery in the broader economy, to rein in the fiscal deficit.
The economy has recovered faster than the government had anticipated.
Hindustan Times, February 2, 2010, Page 23
The fiscal deficit for 2010-11 is likely to be pegged at 5.5 per cent of gross domestic product (GDP) as macroeconomic managers struggle to bring down government borrowings.
The fiscal deficit as a percentage of GDP is projected at 6.8 per cent this year.
The government had announced a series of measures, including tax breaks in many products, but many of these measures have left gaping hole in public finances, forcing the government to borrow a record Rs 4.51 lakh core.
“The deficit is expected to come down by 1.5 per cent every year amounting to about Rs 90,000 crore. This is a realistic target as expenditure pertaining to areas like the sixth pay commission implementation would be a one-time outflow,” an official, who did not wish to be identified, said.
While government expenses is set to cross Rs 11 lakh crore for the year mirroring the need for high public spending to spur growth, the government is banking on greater revenue buoyancy, on the back of a fast recovery in the broader economy, to rein in the fiscal deficit.
The economy has recovered faster than the government had anticipated.
Exports up 9.3%, imports turn positive after 11 months
Exports up 9.3%, imports turn positive after 11 months
Hindustan Times, February 2, 2010, Page 23
New Delhi: The country's exports grew 9.3 per cent in December, recording a positive growth for the second successive month after a 11-month-long contraction, triggering hopes that the worst might be over for embattled exporters.
Imports too grew by a robust 27.2 per cent after contracting for 11 consecutive months, mirroring growth in domestic activity as companies start expanding on growing consumer demand.
Overseas shipments touched $14.6 billion during the month compared to $13.4 billion clocked during the same month of the previous year, latest trade data released by the government on Monday showed.
President of Federation of Indian Export Organisation A. Sakthivel said the growth in imports reflects the effect of double-digit growth in the manufacturing sector.
Hindustan Times, February 2, 2010, Page 23
New Delhi: The country's exports grew 9.3 per cent in December, recording a positive growth for the second successive month after a 11-month-long contraction, triggering hopes that the worst might be over for embattled exporters.
Imports too grew by a robust 27.2 per cent after contracting for 11 consecutive months, mirroring growth in domestic activity as companies start expanding on growing consumer demand.
Overseas shipments touched $14.6 billion during the month compared to $13.4 billion clocked during the same month of the previous year, latest trade data released by the government on Monday showed.
President of Federation of Indian Export Organisation A. Sakthivel said the growth in imports reflects the effect of double-digit growth in the manufacturing sector.
WB pegs India growth at 7.5% for FY11
WB pegs India growth at 7.5% for FY11
Financial Express, February 2, 2010, Page 2
fe Bureaus, New Delhi
The World Bank added to the rising chorus of expectations of growth rates about the Indian economy, post the global economic slowdown. In its estimate for the year 2010-11 the bank said the Indian economy is likely to grow at 7.5 % next fiscal and the growth prospects remain strong, despite “muted recovery (that) will take several years to undo the damage”.
The Bank’s annual Global Economic Prospects 2010 released on Monday, said India “is expected to grow at 7.5-8 % in 2010-11 and 2011-12, respectively, well above the 6.4 % average posted during 1995-2005”. RBI has already estimated growth in India at 7.5% for 2009-10. This comes at a time when the global recovery remains fragile and is expected to slow later this year as the impact of the fiscal stimulus measures wanes, it said.
Explaining the reasons for the growth of the economy, it says “India’s growth will benefit from the firming (up of) external demand, particularly resumption of growth in high-income countries”.
Foreign direct investment inflows to the country are expected to increase in 2010, the report said, adding this will be on the back of the recovery of the overall investment into the developing countries this year and as New Delhi improves its FDI policies.
The author of the report, Hans Timmer, who is the director of the World Bank Prospects Group said “India weathered the global crisis relatively well, in part due to the government’s quick response in easing monetary policy and counter-cyclical fiscal policy measures that supported domestic demand”. According to him the key challenge for the economy will be how successful it is in reducing its large fiscal deficit. “As private consumption gains momentum, India’s import volumes are likely to expand ..translating into a deterioration in the current account balance”. Incidentally for the current fiscal, the Bank had projected only a 6 % rate. Timmer said, the report was “not written yesterday. We just had the first quarter growth figures (6.1 %) when the report was written.”
Financial Express, February 2, 2010, Page 2
fe Bureaus, New Delhi
The World Bank added to the rising chorus of expectations of growth rates about the Indian economy, post the global economic slowdown. In its estimate for the year 2010-11 the bank said the Indian economy is likely to grow at 7.5 % next fiscal and the growth prospects remain strong, despite “muted recovery (that) will take several years to undo the damage”.
The Bank’s annual Global Economic Prospects 2010 released on Monday, said India “is expected to grow at 7.5-8 % in 2010-11 and 2011-12, respectively, well above the 6.4 % average posted during 1995-2005”. RBI has already estimated growth in India at 7.5% for 2009-10. This comes at a time when the global recovery remains fragile and is expected to slow later this year as the impact of the fiscal stimulus measures wanes, it said.
Explaining the reasons for the growth of the economy, it says “India’s growth will benefit from the firming (up of) external demand, particularly resumption of growth in high-income countries”.
Foreign direct investment inflows to the country are expected to increase in 2010, the report said, adding this will be on the back of the recovery of the overall investment into the developing countries this year and as New Delhi improves its FDI policies.
The author of the report, Hans Timmer, who is the director of the World Bank Prospects Group said “India weathered the global crisis relatively well, in part due to the government’s quick response in easing monetary policy and counter-cyclical fiscal policy measures that supported domestic demand”. According to him the key challenge for the economy will be how successful it is in reducing its large fiscal deficit. “As private consumption gains momentum, India’s import volumes are likely to expand ..translating into a deterioration in the current account balance”. Incidentally for the current fiscal, the Bank had projected only a 6 % rate. Timmer said, the report was “not written yesterday. We just had the first quarter growth figures (6.1 %) when the report was written.”
India to grow 7.5% next fiscal: World Bank
India to grow 7.5% next fiscal: World Bank
Economic Times, February 2, 2010, Page 9
NEW DELHI: The World Bank on Monday said that India is likely to grow at 7.5% in the next fiscal, while for the current fiscal its estimate is a modest 6%. This comes at a time when global recovery remains fragile and is expected to slow as the impact of the fiscal stimulus measures wanes. India is expected to grow at 7.5-8% in fiscal 2010-11 and 2011-12, well above the 6.4% average posted during 1995-2005, said the banks Global Economic Prospects 2010 report. The World Bank sees the economy growing at 6% in the current fiscal. Government’s quick response in easing monetary policy and counter-cyclical fiscal policy measures have supported domestic demand, said report’s author Hans Timmer, director World Bank Prospects Group.
Economic Times, February 2, 2010, Page 9
NEW DELHI: The World Bank on Monday said that India is likely to grow at 7.5% in the next fiscal, while for the current fiscal its estimate is a modest 6%. This comes at a time when global recovery remains fragile and is expected to slow as the impact of the fiscal stimulus measures wanes. India is expected to grow at 7.5-8% in fiscal 2010-11 and 2011-12, well above the 6.4% average posted during 1995-2005, said the banks Global Economic Prospects 2010 report. The World Bank sees the economy growing at 6% in the current fiscal. Government’s quick response in easing monetary policy and counter-cyclical fiscal policy measures have supported domestic demand, said report’s author Hans Timmer, director World Bank Prospects Group.
Parsvnath to infuse Rs 7-k cr in ongoing projects in 5 years
Parsvnath to infuse Rs 7-k cr in ongoing projects in 5 years
Financial Express, February 2, 2010, Page 4
fe Bureaus, New Delhi
Delhi-based realty firm Parsvnath Developers will invest Rs 7,000 crore over the next five years towards construction of its ongoing projects. The company also plans to raise up to Rs 300 crore through private equity by March-end. It would be done by diluting stakes to private equity firms at the project level. The company has begun talks with the private funds to this effect.
“We are currently developing 57 projects, with over 80 million sq ft of area, across the country. Of this, we have put 40 million sq ft on fast track to deliver within the next two years,” Parsvnath chairman Pradeep Jain said. Of the total area under construction, about 80% is housing and the rest commercial, he added. Parsvnath is expecting revenue to the tune of Rs 17,000 crore from these 57 projects.
Asked how the company plans to fund its projects, Jain said, “Mostly internal accruals and money coming from sales. We are not willing to increase our debt. In the next 2-3 fiscal, we foresee a debt free company.”
Meanwhile on Sunday, Parsvnath reported a robust jump of over four-fold in consolidated net profit at Rs 24.90 crore for third quarter ended December 31 against Rs 5.42 crore during the same period of the previous fiscal. Consolidated total revenue of the firm rose to Rs 305.28 crore during the third quarter of current financial year from Rs 92.77 crore of the corresponding period last fiscal.
The company’s gross debt as on December 31, 2009, stands at Rs 1,585 crore and it plans to bring it down by about Rs 100 crore in this quarter.
Parsvnath Developers to raise Rs 300 crore
Parsvnath Developers to raise Rs 300 crore
Business Standard, February 2, 2010, Page 2
BS Reporter/New Delhi
Realty company Parsvnath Developers plans to raise Rs 200-300 crore in the present quarter through private equity (PE) deals. It is in talks with a few PE companies and hopes to close two or three transactions within this quarter.
Gross debt as on December 31 was Rs 1,585 crore and it planned to bring this down by Rs 100 crore this quarter. This will be achieved by refunds from some state governments due to cancellation or stalled projects. The company also plans to launch three residential and one information technology park by the end of March, 2010.
Parsvnath reported an over four-fold increase in consolidated net profit at Rs 24.9 crore for the third quarter ended December 31, up from Rs 5.4 crore in the same quarter last year. The increase was primarily due to the completion of 37 projects, comprising 11.23 million sq ft.
The company said it would invest Rs 7,000 crore in the next five years in ongoing projects.
Business Standard, February 2, 2010, Page 2
BS Reporter/New Delhi
Realty company Parsvnath Developers plans to raise Rs 200-300 crore in the present quarter through private equity (PE) deals. It is in talks with a few PE companies and hopes to close two or three transactions within this quarter.
Gross debt as on December 31 was Rs 1,585 crore and it planned to bring this down by Rs 100 crore this quarter. This will be achieved by refunds from some state governments due to cancellation or stalled projects. The company also plans to launch three residential and one information technology park by the end of March, 2010.
Parsvnath reported an over four-fold increase in consolidated net profit at Rs 24.9 crore for the third quarter ended December 31, up from Rs 5.4 crore in the same quarter last year. The increase was primarily due to the completion of 37 projects, comprising 11.23 million sq ft.
The company said it would invest Rs 7,000 crore in the next five years in ongoing projects.
DLF: turning optimistic
DLF: turning optimistic
Financial Express, February 2, 2010, Page 6
Akash Joshi
The country’s leading real estate company DLF is seeing some improvement in the sentiment from the Street. Several analysts have upgraded their recommendations from the negative zone earlier. One of the reasons is the slow but steady uptick in real estate sales. DLF managed to recorded revenues worth Rs 2,030 crore in the December 2009 quarter, 16% higher that the September 2009, and 48% over the same quarter of the previous year. However, analysts are still not gung-ho as the operating margin was way below expectation at 41%, a sharp drop compared to the 56.5% in the December 2008 quarter and 52.2% on a sequential basis. The main reasons, cite analysts, is higher than expected revenue booking from lower margin areas, especially in the Chennai and New Gurgaon projects.
An increase of around 20% in employee costs (and other miscellaneous) also caused the margins to slump. In the December 2009 quarter, DLF sold around 3.1 million sq ft of projects with a mix of luxury, high-end and premium homes. And if the luxury market picks up further, the margins could stablise at earlier levels. Another trigger would be a pick up in office sales, which remains flat. In the first nine months of financial year 2009-10 DLF sold approximately 8.5 million sq ft of residential real estate and it is expected that the company would manage around 13.5 million sq ft and analysts would be watching out increased revenues in the last quarter.
DLF in December 2009 had announced the integration of its 100% interest in its main rental subsidiary DLF Cybercity with the holding company for DAL in a 60:40 share swap ratio. The successful listing of DAL on Singapore will boost the sentiment further. However, with interest rates coming under pressure any rate hikes would be the dampener.
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