Indian indices continued to languish in the red during the previous hour of trade as selling pressure in heavy weights persisted. Currently, stocks from the realty and consumer durables space are leading the pack of losers while those from the auto, power and FMCG are finding some favour.
The BSE-Sensex is down by 145 points, while NSE-Nifty is trading lower by 31 points. BSE Midcap and BSE Small cap indices are both down by 1.27% and 1.94% respectively. The rupee is trading at 45.56 to the US dollar.
Cement stocks are currently trading mixed with ACC, Birla Corp and Chettinad Cement trading firm. However, Mangalam Cement, JK Lakshmi Cement and Prism Cement are facing severe selling pressure. Madras Cement has announced its results for the quarter ended December 2010. The company reported a flat topline during the current quarter over the corresponding quarter of the preceding year. This was mainly due to lower realisations. Operating profits grew by 37.7% YoY during the quarter as a result of lower raw material and freight expenses (as a percentage of net sales). Operating margins expanded from 18.6% in 3QFY10 to 25.6% in 3QFY11. At the bottomline level, net profits for the quarter shot up by 171.6% on the back of higher other income, lower interest expenses and lower effective tax rates.
Rural Elect. announced its results for the quarter ended December 2010 yesterday. The companyís income from operations grew by 26% YoY during the quarter. However, its net interest income grew at a sharper rate of 36% YoY. This was largely due to the interest expenses increasing at a slower pace as compared to the growth in interest income. Further, the companyís profit before tax grew at a faster pace of 40% YoY during the quarter as other income rose by a sharp pace of 74% YoY, while operating expenses increased at a slower rate of 14% YoY. As the effective tax remains at similar levels of last year, RECís profits increased by 40% YoY as well. Net profit margins stood at 31.8% during the quarter as compared to 28.7% last year. As for the nine month period ended December 2010, RECís revenues and profits increased by 28% YoY and 30% YoY.