The BSE Realty index, which declined by nearly 90% over a fifteen month period from December 2007 to February 2009, has jumped by over 170% in just three months from March 2009 to May 2009. The concerns related to liquidity of the real estate companies have been key reasons for the performance of the stocks. Despite that, the companies are trying to improve their liquidity condition by selling equity and assets, raising capital through QIPs or by restructuring debt repayments.

I …

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Business growth has been declining: After three quarters of robust business growth, the fourth quarter of FY2009 witnessed significant cooling in the credit offtake. As per the latest data by RBI, the credit growth as on March 13, 2009 stood at 18.3%, down from the ~24% growth for Q3FY2009 and the ~22% growth in the fourth quarter a year ago. Clearly, the moderation in economic activity and the deterioration in business and consumer sentiment are finally catching up with the demand …

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Q3FY2009 seems to be a bad quarter for most media companies as the rate of the yoy growth tapers off substantially in the wake of a significant cut in the advertising spends in the key sectors, such as BFSI, real estate and automobiles. Also, a general sense of rational advertisement spend and fragmentation across media verticals due to an increase in competition would lead to a slower revenue growth. The Hindi general entertainment channel space continues to witness hefty competition with …

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After an outperformance in Q2FY2009, the Capital Goods sector underperformed the broader markets in Q3FY2009 amidst growing concerns of slowdown in order inflows and liquidity crunch. The Q3 saw the capital goods index underperform the benchmark index as the BSE Capital Goods index declined by 34.8% as against a 26.1% decline witnessed by BSE Sensex. The capital goods index in the monthly index of industrial production numbers continued to be volatile, as it rose by 3.1% in October 2008. The …

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Amidst the rising concerns at the macro level, the business growth at the industry level remained strong in Q3FY2009. The year-till-date credit growth (till December 19, 2008) stands at 24.4%, better than the ~22.0% credit growth recorded in the same period last year. The healthy credit demand is primarily due to the fact that alternative funding sources (external commercial borrowings, foreign currency convertible bonds) have dried up with rising risk aversion. Though the role of domestic banks has increased, the …

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The top line of the front-line information technology companies is expected to grow in the range 6.1-11.7% in Q3FY2009. The growth in the top line is expected to be primarily driven by the depreciation in the rupee against the US Dollar. The rupee’s depreciation is likely to contribute 10-12% of the top line growth for the front-line IT companies. In dollar terms, the front-line IT companies may miss the revenue guidance on account of a sharp cross-currency movement and muted …

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The top line of prime information technology (IT) companies is expected to grow in the range of 5.6-9.3% quarter on quarter (qoq) in Q2-FY2009. The revenue growth would be primarily driven by the depreciation of the rupee against the US Dollar, which is likely to boost the top line growth by 4-4.5% on a sequential basis. In dollar terms, the revenues of these companies are expected to grow in the range of 1.5-5.2% on a sequential basis backed by a …

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