Auto stocks in focus after April sales data

Maruti Suzuki India's total sales fell 3.1% to 97,302 in April 2013 over April 2012. Total domestic sales rose marginally by 0.3% to 90,523 in April 2013 over April 2012. Exports tumbled 33.3% to 6,779 during the period.

Tata Motors' total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period.

Mahindra & Mahindra's (M&M) automobile segment reported a 2% rise in total sales to 41,432 in April 2013 over April 2012. Total domestic sales rose 2% to 39,902 in April 2013 over April 2012. Exports rose 8% to 1,530 during the period.

M&M's Farm Equipment Sector (FES) reported 38% rise in total sales to 23,202 units in April 2013 over April 2012. Total domestic sales rose 38% to 22,196 in April 2013 over April 2012. Exports rose 34% to 1,006 during the period.

Hero MotoCorp's total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.

TVS Motor Company total sales fell 5.3% to 1.65 lakh in April 2013 over April 2012. Total two-wheeler sales fell 6.4% to 1.60 lakh in April 2013 over April 2012. Exports fell 2.5% to 21,714 during the period.

Bharti Airtel and Kotak Mahindra Bank will unveil their Q4 results today, 2 May 2013.

Shares of public sector oil marketing companies (PSU OMCs) and automobile companies will be in focus after PSU OMCs on Tuesday, 30 April 2013, cut petrol price by Rs 3 per litre, on the back of a continuous fall in international oil prices and a strengthening rupee. The government has already freed pricing of petrol.

Meanwhile, the Ministry of Petroleum and Natural Gas on Wednesday, 1 May 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of May 2013, effective from 1 May 2013, has declined to Rs 3.80 per litre from Rs 6.42 per litre during the second fortnight of April 2013. In the case of PDS Kerosene, the under-recovery for the month of May 2013 stands at Rs 27.93 per litre. In case of domestic LPG, the under-recovery for May 2013 stands at Rs 378.38 per cylinder. The under-recovery for diesel is calculated on fortnightly basis whereas the under-recovery for both PDS Kerosene and domestic LPG is calculated on monthly basis. PSU OMCs are currently incurring daily under-recovery of about Rs 256 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices.

Further, PSU OMC have reported gross under-recoveries of Rs 161029 crore for the fiscal 2012-13, which was significantly higher than the under-recoveries of Rs 1 38541 crore during previous fiscal 2011-12.

Shares of aviation firms will be in focus as aviation turbine fuel (ATF), or jet fuel, prices were cut by 5.3% on Wednesday, 1 May 2013. ATF price at Delhi was cut by Rs 3545.94 per kilolitre (kl), or 5.35%, to Rs 62649.95 per kl. The reduction in rate, made possible due to declining international oil prices, came on back of a 5.5% (Rs 3884.98 per kl) cut in rates from 1 April 2013. Prices of ATF constitutes approximately 40% to 50% of operating expenses of Indian aviation firms. PSU OMCs revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.

FMCG company Marico's consolidated net profit rose 20% to 84 crore on 9% rise in revenue from operations in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 1 May 2013

Marico said that the top line growth during the quarter was predominantly volume led -about 8%. Domestic FMCG business recorded a volume growth of 14% during the quarter. The company said it continues to focus on new consumer acquisition across its portfolios as against maximizing margins in the short term. The company believes that this is a sounder way of operating in developing and emerging markets that would lead to reaping dividends in the long run.

In its outlook, Marico said that its belief in the long term potential of its businesses continues to be strong, bolstered by the record of strong volume growths across categories in recent years. "This emboldens us to spell out our preference for growing our volume franchise as compared to focusing on profit margins alone," Marico said in a statement.

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