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HUL Q1 Profits Rise, LIC Broad Approves IDBI Deal, WPI Inflation Rises, WTO Challenge to Trump et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jul 16, 2018 1:50 PM 2 min read
Editorial

End of Day Wrap-up (Monday / July 16, 2018) #HUL #LIC #IDBI #Tata #WPI #Airbus #China #DonaldTrump #WTO #US #tradewar #tarrifs #Transfin

Editor's Comment: HUL Q1 profits rises 19.2% YoY to INR1,529cr with revenue up 11% to INR9,487cr; sales volume also rise 12% YoY. This was the third consecutive quarter where HUL’s sales grew in double digits. EBITDA for HUL rises by 21% to INR2,251cr, while the operating margin expanded to 23.7% from 21.9% last year.

 

LIC board approves proposal to buy up to 51% stake in IDBI Bank. Stake purchase to be executed via a preferential issue of shares. The government stake, currently at 86% will come down below 50% through issue of fresh equity. 

 

WPI inflation rises to 4-yr high 5.77% on increasing prices of vegetables and fuel. This is the highest inflation level since December 2013. Commentators expect higher likelihood of rate hike by RBI in next month’s monetary policy review. Inflation in vegetables rose from 2.51% to 8.12% during May-June while the fuel and power inflation rose from 11.22% to 16.18% during the same period.

 

Tata Teleservices reports largest loss in India Inc’s history at INR27,500cr. They transferred their wireless service to Bharti Airtel in October 2017 for free. Tata Teleservices’ net worth stood at negative INR45,200cr at FY17-18.

 

Airbus to close deals worth $29bn in Asia of which $23bn deal is with AirAsia Berhad. The surge in travel demand in the reason why Asian carriers are looking to expand their fleet. AirAsia look to add over 100 aircrafts to their fleet. 

 

China files a WTO challenge to Trump’s recent $200bn tariff proposal. China is unsure about a second round of retaliation in terms of tariffs, as China only has $80bn worth of imports left from US on which it can impose further tariffs. China is also seeking support from Europe and other trading partners in this ongoing trade war.