Given inflationary pressures, Coal India will have to raise wages. This is due in July. In FY11, wage costs accounted for over 50% of total expenditure.
The outlook for the company remains positive with its ongoing capex and strong domestic demand for power transmission services.
India's largest fully integrated power company showed a muted growth of 6% in its earnings for the financial year 2011.
India’s largest power producer NTPC surprised the market with a smart 38% growth in profits in the March 2011 quarter.
Around 10% of the book was covered at the top end of the price band, with bids coming in from domestic institutions.
The inflationary pressures are unlikely to ease anytime soon, which can prompt the company to go for another round of price hikes.
Seven of the eight companies that got listed since 2008 are currently trading below their issue price.
Investors have given a thumbs down to Smartlink Network Systems’ decision to sell its core business, even though the deal is richly valued.
In a scenario where thermal power companies are suffering from uncertainties over high fuel costs, hydropower firms appear better placed.
Despite a challenging cost environment , Nestle India’s presence in the high-growth categories where competition is moderate helped it report a strong performance in 2010.
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