Lakshmi Vilas Bank - Total Business of the bank reached Rs. 55,850.69 crore quarter ended December 31, 2017


Lakshmi Vilas Bank - Financial Results for the quarter ended December 31, 2017

Major Performance Highlights

*      Business Expanded by 17.67% Y-O-Y.
*      CASA Portfolio increased by Rs.538.26 crore, Y-O-Y.
*      Core Operating Profit (Excl.trading profit) increased by 28.57%, Y-O-Y
*      Operating Profit decreased by 6.82%, Y-O-Y.
*      Net Interest Income (NII) recorded growth of 20.78%, Y-O-Y.


Chennai, January 30, 2018: 
Lakshmi Vilas Bank (LVB), a private sector Bank in its transformational journey, has reported its third quarter results today. The prevailing difficult environment has had its impact on the numbers as indicated below.

Year-on-Year Highlights:
  • Total Business of the bank reached Rs. 55,850.69 crore as of  31/12/2017, showing an increase of 17.67%, Y-o-Y.
  • Gross Advances increased from Rs. 19,713.57 crore to Rs. 25,230.64 crore registering Y-O-Y growth of  27.99%.
  • Total Deposits rose from Rs. 27,750.59 crore as on 31/12/2016 to Rs. 30,620.05 crore as on 31/12/2017, registering Y-o-Y growth of 10.34%.
  • CASA grew from `5,943.49 crore to Rs. 6,481.75 crore, registering Y-o-Y growth of 9.06%.
  • CASA as a percentage to deposits stood at 21.17% from 21.42% a year ago.
·         Core Operating Profit (Excl.trading profit) for the nine months period has increased by 28.57% (from Rs. 253.83 crore to Rs. 326.33 crore).
·         However on account of trading loss, Operating Profit for the nine months period is lower by 6.82% (from Rs. 455.70 crore to Rs. 424.62 crore) and  Net profit stood at Rs.37.38 crore.
Photo caption: L to R

1, Mr. Sridhar Rallabandi - President CRO

2, Mr. R.M.Meenakshi Sundaram- President Wholesale Banking

3, Mr. P.Mukherjee - MD&CEO

4, Mr. A.J.Vidya Sagar - President Retail Banking

  • Net Interest Income (NII) for the nine months period recorded a growth of Rs. 115.29 crore (20.78%) from Rs. 554.84 crore to Rs. 670.13 crore, Y-o-Y.
  • Net Interest Margin (NIM) of the bank stood at 2.77% as of 31st December 2017 as against 2.77% as of 31st December 2016.
  • Cost to Income ratio stood at 56.61% (9MFY17-50.80%)


Quarter-on-Quarter Highlights
  • Core Operating Profit (Excl.trading profit) for the quarter has increased by 18.11% (from Rs. 71.25 crore to Rs. 84.15 crore
  • However on account of trading loss, Operating Profit for the quarter is lower by 73.10% (from Rs. 171.45 crore to Rs. 46.12 crore), resulting in net loss of Rs.39.23 crore.
  • Net Interest Income (NII) for the quarter recorded a growth of Rs. 29.05 crore (15.24%) from Rs. 190.62 crore to Rs. 219.67 crore.
  • Net Interest Margin (NIM) of the bank for the quarter ended Dec’17 stood at 2.63% as against 2.72% for the quarter ended Dec’16.
  • Cost to Income ratio stood at 81.33% for the quarter ended Dec’17 as against 49.70% for the quarter ended Dec’16
Business
Total deposits as of 31.12.2017 stood at Rs. 30620.05 crore, registered a growth of 10.34% over 31.12.2016. CASA deposits have grown by 9.06% (Rs. 538.26 crore) over the previous period and stood at Rs. 6,481.75 crore. Term deposits stood at Rs. 24,137.07 crore, while CASA proportion to total deposits stood at 21.17% as on 31.12.2017. Gross Advances as of 31.12.2017 stood at Rs. 25,230.64 crore, registered an increase of 27.99% over  previous period.

Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 9.75% as at December 31, 2017 as against 10.21% as at December 31, 2016.  

The Bank vide its letter of offer dated 27.11.2017 offered up to 6,44,97,155 Equity Shares of Face Value Rs.10/-each at a price of Rs.122 per Equity Share (including a share premium of Rs.112 per Equity Share) for an amount aggregating to Rs.786.87 crore to the Existing Equity Shareholders of the bank on a rights basis in the ratio of one Equity Share for three Equity Shares held by the Equity Shareholders on the record date i.e. 06.12.2017. The Bank has alloted 6,39,87,006 equity shares on 03/01/2018, the remaining 5,10,149 Equity shares being kept in abeyance.  Consequently, the capital adequacy ratio would improve accordingly.

Network

As on 31.12.2017, Bank has 519 branches, 7 Extension Counters, 981 ATMs in 16 states and 1 union territory, the Bank offers various bouquets of products and services. The Bank is committed to build a sustainable business over the long term and upholding high standards of customer service - Life Smiles Where Lvb Serves.

The Board of Directors of The Lakshmi Vilas Bank Limited approved the unaudited financial results for the quarter/nine months ended December 31, 2017 at their meeting held in Chennai on 30th January, 2018.


About Lakshmi Vilas Bank:

Lakshmi Vilas Bank was founded in 1926 and it has a national presence serving over 2 million customer accounts through its 523 branches, with PAN India presence, supervised by 11 Regional Offices, 7 Extension Counters and 984 ATMs in 16 States and Union Territory of Pondicherry. The Bank is active across the entire spectrum of customer segments - retail, mid-market and corporate. Through its branches, the Bank also offers a host of para-banking products in association with Life, General and Health Insurance companies, mutual funds, stock broking houses, money remittance companies, etc. on a technologically advanced platform. 

For further information, please contact:
Adfactors PR –
Annapoorni/ Namita Sharma
9884061132 / 9820950663

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Expectations from Union Budget 2018-19 By Dr. Arun Singh, Lead Economist

Expectations from Union Budget 2018-19
By Dr. Arun Singh, Lead Economist - ‎Dun & Bradstreet India



Introduction

The Union Budget of 2017-18 had introduced three important structural changes i.e. a) the Budget was preponed to February from March; b) the railway and Union Budgets were merged; and c) expenditure was reclassified as capital and revenue spending instead of plan and non-plan.

The Union Budget of 2018-19 as well is expected to have some element of surprise. Given the fact that this budget is going to be the last budget of the ruling government before the 2019 general election, expectations of the market are varying from populous to surprise to stringent measures that the government is likely to take (especially, since this government has followed this approach in past). We expect the budget to be not so populous. The government has been making a serious attempt to bring the Budget closer to what it essentially is – a mere accounting and allocation exercise and it would continue to do so this year as well.

We expect the government to initiate measures and allocate funds effectively to revive investments and alleviate rural distress which would create the much needed jobs and drive the growth momentum. We also look forward to see what the government does to remain on the glide path of fiscal consolidation.

The government has built fiscal credibility during the last three years by achieving the targeted levels. This year, the structural changes led by demonetisation and GST have exerted challenges to the government to achieve the current year’s target. Concerns are thus high about how the government will maneuver public expenditure towards rural and infrastructure segments.

Therefore, the Union Budget of 2018-19 is likely to thrust on the following major areas:

A slip on fiscal deficit target

We believe the slippage in the fiscal deficit target to be modest. Given the structural change in the indirect taxation system, a deviation in the fiscal deficit, if small, should not impact the rating of the government’s performance. Given that GST is eventually expected to broaden the tax base and generate more revenue, the initial shortfall should be overlooked unless a major deficit is recorded.
We believe the gap in fiscal deficit to be supported by higher-than-budgeted small savings collections as the government has cut the interest rate on small savings deposits including PPF for the last quarter of FY18. The government has been able to meet the disinvestment target this year and the target has been revised upwards to cover the shortfall in non-tax revenue. On the other hand, a shortfall in non-tax revenue is anticipated as revenue realisation from telecom spectrum sale may not materialise.
We believe that the government will stick to its earlier fiscal deficit target of 3.0% for FY19. There are, however, concerns regarding high food subsidy, interest outgo owing to affordable housing, high fuel subsidy and expected higher capex allocation for rural development which is likely to increase the expenditure budget of the government. However, we believe that once the GST process normalises, increase in GST returns will be higher than FY18. This coupled with increase in direct tax collections as the economy is expected to clock in a higher growth rate which will help the government to stay put on path of fiscal consolidation.

1.                  Agriculture and Rural Development

Agriculture and rural development is likely to get greater focus in terms of allocation of funds and direction of measures. Resources need to be redirected towards more structural reforms required in place of short term measures like farm loan waivers.

We believe increase in net irrigated area (percentage of Gross Irrigated Area over Gross Cropped Area is little more than 45%), effective implementation of crop insurance, expansion of agricultural marketing under National Agriculture Market (e-NAM) and improving post-harvest infrastructure such as warehouses and cold storage would ensure effective price realisation and address the issue of commodity price volatility. We expect the government to direct its funds in the above areas.

The government has already set up a committee to chart out initiatives to double the farmers’ income by 2022.  The model contract farming act to counter price risks has also been drafted by the centre. We hope that the measures the government adopts should achieve the following i.e. ensuring fair price realisation of agricultural products, establishing a strong agri-logistic infrastructure, wider coverage of irrigation network along with providing the farmers a risk cover against price volatility. We believe that rural development would get a major leap if the interconnectivity is enhanced. Connectivity for greater market access for commercial activities, connectivity for access to health and education and connectivity to financial network of institutions and market has been a long standing need. In this context, the concept of rurbanisation introduced by the government in its 2014 budget needs to be reinvigorated. While the process of identification and approval of Rurban clusters in various states is in progress, the action plan should be accelerated.

2.                  Infrastructure

While the government has taken infrastructure related initiatives outside the preview of the Union Budget, it is the capital expenditure which is likely to get special attention during this year’s budget. Reviving investments will continue to remain the focus area, especially as the sentiment of private players remains subdued. The government has continued its thrust towards infrastructure during the course of the year and we expect higher allocation in the next year as well. While the government reports the state of implementation of its budget announcements every year, it is difficult to estimate the extent and nature of spending in the overall infrastructure sector. A reporting of the aggregate spending will be quite useful in this regard. Rural infrastructure, urban transportation, solar power, inland waterways and overall green infrastructure is expected to receive impetus during the budget.

a)     Logistics
The government has initiated many projects such as Bharatmala, Sagarmala, UDAN, etc. to overhaul the logistic sector and has placed an emphasis on green infrastructure. These commendable initiatives need to be followed through to completion to ensure that these are executed in target timelines. The thrust on creating green infrastructure is expected to continue while there could be higher allocation for the transport sector considering the need for improvising public transport. Thrust on the big ticket projects, Bharatmala and Sagarmala, will eventually benefit this sector. There should be an increased thrust to create multimodal logistics parks since logistics cost remains very high.

b)     Affordable housing
Increase in deduction limit on principal repayment and on interest payment for housing loans is expected.

c)      Power
Providing land for solar manufacturers on a long term lease, higher allocation for development of grid infrastructure and incentive schemes for R&D are expected.

d)     Infrastructure finance
Significant surge in the infrastructure financing can be challenging for the government given risk on fiscal deficit. Hence, measures to attract private funds and foreign funds could be expected. Announcement of measures to revive public-private partnerships and creation of an asset recycling strategy or monetisation of government assets to ensure flow of funds for stepping-up public expenditure is expected. Provisions for deepening the infrastructure finance ecosystem such as channelising of insurance and pension funds for infrastructure projects could be announced.

3.                  Manufacturing Sector

The expectations of continued thrust on the overall infrastructure sector and renewed focus on the agriculture sector are likely to provide derived demand to multiple manufacturing sectors like Cement, Steel, Aluminium, Plastics, Automotive etc. In order to provide a boost to the Government’s ‘Make in India’ Programme, some products that go as raw materials in certain finished products would see customs duty relaxation.

At the same time, upward revision in customs duty on certain finished products is expected, so as to encourage domestic manufacturing.  As part of the Government’s ease of doing business initiatives, the Budget is expected to see measures aimed at relaxing the customs regime for companies, including release of imported items without any upfront duty payment.
Although we do not expect a significant cut in corporate tax rate, considering the wide gap between estimated and actual realisation of GST revenues, we expect Indian businesses to get marginal relief on the corporate tax front.

SOME KEY SECTORAL EXPECTATIONS:
·         Automobiles
 The sector can expect increased demand if the Government announces financial incentives to replace vehicles older than 10-15 years. We expect the Budget to announce certain incentives for electric vehicle (EV) manufacturing companies and on EV charging infrastructure and duty rationalization on certain imported parts for EVs. Higher bus orders are expected under the JNNURM scheme. Measures for the agriculture sector to push income levels also augur well for the automobiles sector, particularly two-wheelers and trucks.

·         Capital goods and engineering
 A higher budgetary allocation to the infrastructure sector would drive order books of capital goods and engineering companies. We also expect increased budgetary allocation to the defence sector, which augurs well for the capital goods sector and commercial vehicle manufacturers.

·         BFSI sector: 
The Union Budget is expected to provide some relief to insurance sector by changing the tax incentives structure. The insurance businesses are impacted by higher GST rate. Hence, an increase in the tax deduction limit might provide some relief to insurance holders. We expect the Union Budget to provide more clarity on recapitalisation bonds for PSU banks and a roadmap on consolidation of PSU banks. The government could allow 100% FDI in private sector banks. Further, few measures to incentivise flow of credit to affordable housing and MSMEs are expected.
The thrust on digital transactions is likely to strengthen as the Union Budget could provide incentives on digital transactions up to a certain limit for small businesses.  There could also be a push for e-Sign and e-KYC.

·         Consumer Goods:
 The Budget is expected to announce incentives for setting up warehouses and cold chain facilities and measures to increase foreign investments in the sector.
·         Gems & Jewellery
 To revive demand for gold in the country and boost exports of jewellery, the Union Budget is expected to announce reduction in import duty on gold.

·         Textiles & Garments: To boost exports of textiles & garments, the Government may increase the duty drawback rates from the existing 2%.
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Union Budget is likely to focus on reviving rural economy

Union Budget is likely to focus on reviving rural economy

D&B ECONOMY FORECAST

Key Economic Forecast

Real Economy: 

IIP is expected to clock in a higher growth level in Dec 2017 as well, due to the low base effect at play. A sustained rise in the capital goods segment and a turnaround in the consumer durables segment is warranted for the industrial activity to revive from hereon. 

The government's thrust to revive the investment cycle and rise in optimism levels amongst businesses for increase in demand levels are expected to support industrial growth going ahead. 

D&B expects Index of Industrial Production (IIP) to grow by 5.5%-6.0% during Dec-17

Price Scenario: 

While the cumulative impact of the reduction in the GST rates on several retail goods and services will translate into lower prices for those products and get reflected in the CPI/WPI commodity basket, inflation rate is expected to scale higher in the near term largely owing to base effect and rising crude oil prices. The factors on the other hand which are building up inflationary pressures are the increases in Housing Rent Allowances (HRA) by the central & state government and the rise in the global crude oil prices besides firming up of households inflationary expectations. 

D&B expects theCPI inflation to be in the range of 5.5%-5.7% and WPI inflation to be in the range of 3.2% - 3.4% during Jan-18, respectively.

Money & Finance: 
Bond yields during the month of Jan 2018 are likely to remain largely unchanged compared to last month. Given that inflation rate will be driven largely by base effect, the policy rate is expected toremain unchanged in the upcoming policy review. This along with the reductions in additional borrowings announced by the government followed by expectations of special dividend from RBI and seasonally strong March quarter for direct tax collections are likely to keep the yields constrained. 

Bonds prices have been under pressure amidst rising crude oil prices and overall inflation, excess supply of debt and concerns of wider fiscal deficit. D&B expects 15-91 day T-Bill yield to average at around 6.0%-6.2% and 10-year G-sec yield at around 7.1%-7.3% during Jan-18.

External Sector: 

Rupee is expected to appreciate further in Jan 2018 as compared to Dec 2017 following foreign investments and rising forex reserves and weak dollar. Favourable interest rate differentials coupled with measures taken to improve ease of doing business, which includes 100% FDI in single brand retail will keep the value of rupee higher than the Dec 2017 levels. D&B expects the rupee to trade in the range of around 63.6-63.8 per US$ during Jan-18.


Detailed Commentary
January 2018
India has been cited as the fastest growing economy in 2018 by various international agencies thereby building up expectations from the government during upcoming Union Budget. We look forward to see the measures that the government takes to address the domestic issues posing risk to India's growth momentum and the manner in which it allocates the resources to critical segments. We expect the pace as well as the initiatives that the government has been taking outside the Union Budget to continue. This year, we believe that the government will take special measures to revive rural economy. A recalibration in the direct taxation would be an added bonanza, provide the government is confident of realizing its revenue via GST and enforcing tax compliance on all. We believe the slippage in the fiscal deficit target for FY18 to be modest given disruption created by two structural reforms, GST and demonetization” said Dr. Arun Singh, Lead Economist Dun & Bradstreet India. “While the impact of high oil prices is not worrying as of now, risks are building up as it becomes widespread through the second and third round impact on inflation and current account deficit. This along with cleaning up of the balance sheet of banks needs to be handled carefully by the government” he added.

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Nirmal Bang's Beyond Market


Nirmal Bang's Beyond Market - Volume 10, Issue 1 ( Issue 141)

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Shriram City Union Finance - Assets Under Management Rs. 26077 Crore, up by 15.7%

Shriram City Union Finance Ltd. reports Third Quarter results

Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the third quarter of Financial Year 2018.


 Standalone Net Profits were at Rs. 226 Crore, up 43%  year-on-year and 13.7% quarter-on-quarter. Income from Operations stood at Rs. 1338 Crore, higher by 15.8% over the preceding year. Net Interest Income, at Rs. 916 Crore grew by 20.1%. Disbursements at Rs. 6353 Crore were higher by 23.5%. Assets Under Management (AUM) stood at Rs. 26077 Crore, up by 15.7%. 

R. Duruvasan,
MD & CEO,
Shriram City

 Mr. R. Duruvasan, MD & CEO, Shriram City commented:” This has been a reasonably strong quarter for us in which we saw growth with reduced credit costs – something that we had guided for after our results in the previous quarter when we had mentioned that demonetization-related problems have already been baked in. Our bottom line is also substantially higher, even without the one-time effect of the profit of Rs. 15 Crores owing to the sale of investments in the equity of a Bengaluru-based entity.”


  About Shriram City Union Finance Ltd. (BSE: SHRMCITY, NSE: SHRIRAMCIT): 

 Over three decades old, Shriram City is among the more important players in the retail financing space. The company offers multiple loan products to small business owners and for acquiring assets such as two wheelers, commercial vehicles, passenger vehicles and homes. It also offers loans against gold ornaments and for personal consumption.  A deposit-accepting NBFC, Shriram City is a part of the over Rs. 1 Lac crore Chennai-based Shriram Group.
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Shirdi Sai Baba Temple Trip by Fight. 2018 March 16, 17 &18.

Shirdi Sai Baba Temple Trip by Fight.  
2018 March 16, 17 &18. 

Will Visit Shirdi, Nasik Panchavadi, Triempakeshwar, Tiriveni Sangamam, Sani Signapur, Renukadevi, Mahaganapathy. 

Flight fair, food accommodation incl all Rs. 12,000


Book before 31st Jan Rs.11,000 only. 

Arasu Alagappan- 98410 76576, Chennai 
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New Home launches pan-India drops 12% in Q4: PropEquity Study

New Home launches pan-India drops 12% in Q4: PropEquity Study
             Unsold Stock declined slightly due to lack of new launches

Unsold inventory dips by 3%

Market to further improve in Q1

In a report released by PropEquity, India’s leading real estate data, research and analytics firm on Monday, it said that new home launches dipped 12 pct across top 9 cities in the fourth quarter of 2017 from 15,593 units to 13,666 units.

Lack of new launches was majorly attributed due to developers focussing on compliances with RERA and implementation of GST.

Also, as a measure of the slowdown in the real estate prices stabilizing, capital values including resale saw negligible correction if any.


Weighted average prices in the quarter remained at similar levels to Rs 6,634 PSF from Rs 6,639 PSF indicating bottoming out of correction.

“2018 should hold as a stabilization year for the sector since now both developers and buyers are more attuned to this changed regulatory scenario. The implementation of RERA is encouraging developers to focus on the completion of existing projects. Consumer sentiment too, has greatly improved,” Mr. Samir Jasuja, founder and CEO at PropEquity said.

The unsold inventory dipped by 3 pct to 5,86,446 units from 6,05,323 units due to lower new launches and developers focussing on clearing their existing unsold inventories which is at the finishing stage.

“Many buyers, sellers, banks and private equity investors are waiting for the budget announcement as they expect some major positive news from the govt. to boost real estate sector. We expect clarity of taxes on REITs as the confusion has led to very poor interest by investors. We believe increase in tax deduction limits for housing loans is extremely critical to boost housing sales as this will lead to many families moving to owned flats instead of rented ones,” Mr. Jasuja added.

Housing demand (absorption) across key cities dropped by just 9 pct to 32,546 units from 35,944 units due to fewer new projects in the market and end users showing signs of buying rightly priced projects.

Nine cities were included for the study including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.

Cities

Gurgaon

The city gained some momentum in Q4 after GST and RERA were introduced in the previous quarter as approx. 1,300 units were launched during the period

During Q3 2017, no new projects were launched as developers in this region were cautious due to RERA & GST compliance and were looking to clear existing inventories.

New Supply is expected to stay low for at least 6 months as RERA and GST will lead to implementation and compliance challenges.

Absorption witnessed a considerable change on Q-o-Q basis and was increased by 8% showing trends of uptick in demand

Prices were at Rs 6,071 PSF as available units comprised primarily of mid and premium segments.

Golf course road extension and New Gurgaon witnessed momentum in terms of absorption. Demand was mostly witnessed in the Luxury segment (71%) followed by Mid segment and Affordable segment at 27% & 2% respectively.

Going ahead, with prices down by 4% on Y-o-Y basis, the city is likely to witness more demand in the future.

Noida

In Noida, only one project was launched in Q3 2017 which was catered to the Affordable segment.

Absorption increased on Q-o-Q (6%) and decreased on Y-o-Y (54%) basis. Weighted Average Price stood at INR 5,431/sft which indicates that the majority of the unsold units are in the mid segment.

Unsold stock in Q4 witnessed no change on Q-o-Q but decreased by 11% on Y-o-Y basis.

Going ahead, prices are unlikely to go down further as corrections were already witnessed post demonetization.

Mumbai

New launches witnessed noticeable drop on both Q-o-Q (25%)& Y-o-Y (70%) basis.

Absorption too witnessed a considerable fall since they declined by 23% (Q-o-Q) and by 39% (Y-o-Y). These numbers of lesser new launches and absorptions point out that both supply and demand have been hit for the city.

Demand was considerably high in Kandivali(W), Mulund(W) and Andheri(E), with these micro markets having the highest absorption numbers. Luxury segment was the most dominated one with a share of 60%.
Being more inclined towards the luxury market, correction in prices may revive the residential sales in future.
Kolkata
Q4 2017 witnessed a considerable decrease in new launch activity as compared to Q-o-Q and Y-o-Y basis.
Absorption declined by 14% on Q-o-Q basis and 55% on an Y-o- Y basis indicating that demand has fallen significantly in the city.
Weighted Average Price of absorbed units stood at INR 3,831/sft, increasing by 3% from the previous quarter. The weighted average price of unsold units stood at INR 3,478/sft
The Kolkata residential market has witnessed contraction of new launches. Regions like New Town and Rajarhat maintained their dominance in terms of sales. Most of the new launches in the recent months were witnessed in peripheral locations of the city.
Hyderabad
New Launch activity in Q4 2017 witnessed an tremendous increase of more than 100% on Q-o-Q basis but reduced by 70% on Y-o-Y basis.
Absorption also witnessed a marginal dip of 8% on Q-o-Q basis and 36% on Y-o-Y basis.
Weighted Average Price stood at INR 3,892/sft which indicates that the majority of the unsold units are in the affordable and mid segments.
The new launch activity witnessed upward trend during the quarter and is likely to rise in upcoming months. Steady increase in commercial activity in and around Hitech City is most likely to attract housing demand in the North-West region in the secondary market.
Bengaluru
Q4 2017 witnessed a considerable decrease in the new launch activity as compared to the previous quarter. On Y-o-Y basis also the launches decreased drastically.

Absorption also decreased by 5% and 45% on Q-o-Q and Y-o-Y basis respectively.

Weighted Average Price of unsold stocks stood at INR 4,674/sft which indicates that the majority of the unsold units are in the mid segment.

Mid segment contributed approx. 67% of the total absorption catering to the higher demand from IT professional of the city followed by Luxury with 28% and Affordable segment with 6% respectively.
The city will witness completion of approx. 4 Mn sft of commercial space by the next quarter which is likely to create rental driven demand. Consequently areas like Outer Ring Road, Electronic City and Whitefield may keep the residential market active in terms of sales.

Pune
The city in Q4 2017 witnessed an steep decrease of new launch activity by 78% and 93% on Q-o-Q basis and Y-o-Y basis respectively.
Absorption also witnessed a substantial drop of 9% and 37% Q- o-Q basis and Y-o-Y basis respectively.
Weighted Average Price of available stock stood at INR 5,089/sft which indicates that the majority of the unsold units are in the mid segment.
Micromarkets like Bavdhan, Kharadi and Hinjewadi may continue to witness some traction owing to the upcoming commercial space. Demand for rental housing is most likely to increase as approx. 2.1 Mn sft of commercial area is scheduled for delivery in the upcoming quarter of 2018 in South West and North East region.
Chennai
Minimal launch activity took place in Chennai during Q4 2017. The Developers were more cautious about the launching of new projects as all the approvals has to be received and the project has to be registered in RERA website before launch.
Absorption witnessed a sizeable dip of 6% and 54% on Q-o-Q and Y-o-Y basis respectively. Weighted Average Price stood at INR 4,826/sft which indicates that the majority of the unsold units are in the mid segment.
Buyer’s interest was mostly towards properties that were nearing completion where areas like Perambur, Medawakkam and Pallikaranai witnessed some demand.
Thane
Q4 2017 witnessed a steep dip in new launch activity by 76% and 90% on Q-o-Q basis and Y-o-Y basis respectively.
Absorption also witnessed a considerable drop of 9% and 31% on Q-o-Q basis and Y-o-Y basis respectively.
Weighted Average Price stood at INR 5,657/sft which indicates that the majority of the unsold units are in the mid segment.
Demand is considerably high in the region beyond Thane and micro markets such as Dombivali(E) and Badlapur as the majority of the projects in the region falls in the affordable segment. West and East region witnessed considerably lesser absorption.
High unsold inventory and less absorption may refrain the developers from launching new projects; supply may remain at similar levels in the next quarters.
About PropEquity:
P.E. Analytics owns and operates PropEquity which is an online subscription based real estate data and analytics platform covering over 91,934 projects of 25,438 developers across over 42 cities in India. We add approximately 300 projects every month. It is a premier Business Intelligence product- a first of its kind in India in the Realty space.

For media enquiries, please contact:

Vivek Seal, M:9953683917, 7838773388, E: vivek.seal@printel.in


Diksha Taneja, M: 9899567304, E: diksha@printel.in
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Sundram Fasteners Third quarter net profit at Rs. 91.66 Cr

Sundram Fasteners announces third quarter results with net profit at Rs. 91.66 Cr

 Sundram Fasteners Limited (SFL), part of the $7.2 bn TVS group, today announced its Q3 results. The net profit of Sundram Fasteners Limited (standalone) for the quarter ended 31st December 2017 was at Rs.91.66 crores as against Rs.75.34 crores during the same period in the previous year, an increase of 21.7% and for the nine months ended at Rs.272.26 crores, as against Rs.227.82 crores during the same period in the previous year, an increase of 19.5%. 

The Company recorded revenue from operations (net of excise duty) for the quarter ended 31st December 2017 Rs.848.13 crores as against Rs.707.23 crores during the same period in the previous year, achieved an increase of 19.9%. and for the nine months ended 31st December 2017 Rs.2,450.67 crores as against Rs.2,155.32 crores during the same period in the previous year, an increase of 13.7%.



The export sales for the nine months ended 31st December 2017 was at Rs.842.56 crores (Last year same period Rs.766.57 crores), an increase of 9.9%.

The Domestic sales, net of excise duties for the nine months ended 31st December 2017 was at Rs.1,536.62 crores (Last year same period Rs.1,352.86 crores), an increase of 13.6%.

The Earnings per share for the nine months ended 31st December 2017 amounted to Rs.12.96 (Last year same period Rs.10.84).

About Sundram Fasteners

Sundram Fasteners Limited is a part of the US $7.2 billion TVS Group, headquartered in Chennai, India. The Company has established a track record of leadership over 50 years. With a diversified product line, world-class facilities in 3 countries and motivated team of talented people, Sundram Fasteners has become a supplier of choice to leading customers in the automotive segments worldwide.

The product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, hubs and shafts, tappets and iron powder. Over the years, the Company has acquired cutting-edge technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing and assembly.

Manufacturing locations are supported by engineering and design personnel working on new product design and development. Understanding the global nature of business and the need to provide quality products on “just in time” basis to customers, the company has established supply chain logistics networks spanning several continents.

At Sundram Fasteners, growth is a natural outcome of total adherence to three core operating principles: customer orientation, total quality and ethical business practices.

For further information, please contact:
V. Madhavan / VAR Suresh
Corporate Communications


Ph:+91-9677008432 / 9940039585
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