The Economic Times, Financial Express , 27 May 2019
India Cements Ltd has recorded net profit of Rs 43.85 crore for the January-March quarter as compared to Rs 35.27 crore during the corresponding quarter of last year, on account of increase in cement volumes and net plant realisations.
Net profits for the year ending March 2019 stood at Rs 69.44 crore as against Rs 100.62 crore registered in 2017-18.
Total income for the FY19 increased to Rs 5,658.96 crore from Rs 5,360.13 crore recorded in FY18.
For the year 2018-19, capacity utilisation increased to 79% as against 71% registered in 2017-18.
While talking about the cement demand outlook, Mr Srinivasan finds big ticket irrigation projects and infrastructure projects promising for the Southern Region.
The cement sales including clinker grew to 33.30 lakh tonne for March 2019 quarter as against 30.93 lakh tonne in March 2018 quarter.
The company’s volume for the year was 124.40 lakh tonne as against 111.75 lakh tonne registering a growth of 11%.
- BJP’s manifesto targets ₹100 trillion of capital investment in infrastructure by 2024 Live mint , 24 May 2019
The BJP’s manifesto targets 100 trillion rupees ($1.44 trillion) of capital investment in infrastructure by 2024.
It’s a huge commitment considering the government’s expenditure on roads and railways was about 1.2 trillion rupees for the year to March 2019.
The Bharatiya Janata Party pledged cash handouts to farmers, $1.44 trillion to build roads, railways and other infrastructure, a boost to manufacturing, and a doubling in exports.
Economists are forecasting economic growth of 6.5% in the three months to March, which would be the slowest pace since mid-2017.
The government has already widened its budget deficit target for the year through March 2020 to 3.4% of gross domestic product. Any further widening in the fiscal deficit would jeopardize the nation’s credit rating.
By Ketan Lohia (Senior tax professional, EY, contributed to the article) Financial Express , 24 May 2019
As per the recent amendments, GST rates on under-construction residential apartments have dropped from an effective tax rate of 12% (8% for affordable housing) to 5% (1% for affordable housing) and without the benefit of input tax credit to the builder.
Having said that, the more beneficial scheme (between the old tax structure and new one) could vary between projects and shall be a factor of land value, construction costs and pricing agreed for between the builder and a customer.
The new rates came into force on April 1, 2019, but with an option to the builder to continue under the old rate (with full benefit of input tax credit) in respect of an ‘on-going project’; an option that was required to be exercised project-wise and by way of intimation on or before May 20, 2019.
The Indian rupee opened higher at 69.75 per dollar on Friday morning against the previous close of 70.01 amid sinking crude oil prices and BJP’s thumping victory in the Lok Sabha elections.
The market experts expect the rupee to remain higher for a couple of weeks after BJP’s sweeping success in the elections as the continuity in the administration would bring stability in reform policies and create job opportunities.
Easing of crude oil prices and the foreign investment flows will also have an impact on the Indian currency.
Easy financing for infrastructure projects, a push to the government expenditure, and implementation of the Kelkar Committee report that talked about the revival of public-private partnership (PPP), top the list of measures the government must look to revive private investment in the infrastructure sector in India.
The outlines of public private partnership (PPP), one of the best suited means to invite private players into the infrastructure sector, need to be revisited
Industry wants the PPP framework to change to make it attractive for them to invest.
As part of rationalisation of the Goods and Services Tax (GST) on real estate sector, the GST Council has allowed builders to migrate to 5% rate for residential units and 1% for affordable housing without the benefit of input tax credit (ITC) from April 1, 2019.
For the ongoing projects, builders have been given the option to either continue in 12% GST slab (8% for affordable housing), with ITC, or opt for 5% GST rate (1% for affordable housing) without ITC.