Wabag’s sales increased by 8.2% YoY during 1QFY15 to Rs.1,251 mn while its PAT increased by 51.6% YoY to Rs.92mn led by lower depreciation. Operating margin was lower and stood at 9.1% as compared to 13.4% in 1QFY14 manly due to project mix and increase in employee costs. Depreciation includes a reversal of 59.7mn which led to a negative depreciation of 24mn and hence reported PAT is higher. The management guidance is intact and we recommend investors to “Accumulate” the stock from medium to long term perspective.
RBI transfers almost entire surplus to govt
The Reserve Bank has transferred almost its entire surplus to the government, against the usual practice of giving the residual surplus after appropriation to the Reserve Fund. The RBI board approved transfer of Rs 526.79bn of surplus for 2013-14, the highest ever given to the government. It was 60% more than that transferred the previous year.
Russia Q2 GDP Expands More Than Forecast
Russia’s economy grew more than expected in the second quarter, but the rate of growth eased marginally. GDP rose 0.8% from last year, after expanding 0.9% in the first quarter. It was forecast to grow by 0.7%. However, the Bank of Russia earlier estimated GDP growth was close to zero in the second quarter. External political uncertainty has a negative impact on economic activity. Investment demand remains weak amid low business confidence and consumer activity is cooling. At the same time, persistently high oil prices support domestic economy.
Singapore GDP Climbs 2.4% On Year In Q2
Singapore’s GDP expanded 2.4% on year in the second quarter of 2014. That was in line with expectations and up from the advance estimate that suggested a gain of 2.1%. GDP gained 4.9% on year in the previous three months. Seasonally adjusted and on an annualized quarterly basis, GDP added 0.1% beating expectations for a decline of 0.2% and well above the estimate for a 0.8% contraction. GDP jumped 2.3% on quarter in Q1.