Wednesday, October 31, 2007

Canara Bank Q2 net up 11% at Rs 401.55 cr

Canara Bank has posted a net profit of Rs 401.57 crore for the second quarter ended September 2007 as compared to Rs 361.77 crore in the same period last year.

Total income for the quarter has increased to Rs 4,054.66 crore from Rs 2,977.93 crore in the year-ago period.

Religare Enterprises

Promoted by promoters of Ranbaxy Laboratories, financial services and products company Religare Enterprises (REL) has 11 subsidiaries. The principal subsidiaries are Religare Securities.(RSL), Religare Finvest., Religare Commodities and Religare Insurance Broking. The financial services offered range from equities, commodities, insurance broking, to wealth advisory, portfolio management services, personal finance services, investment banking and institutional broking services. It has also promoted subsidiaries to enter venture capital, private equity, arts and real-estate infrastructure management of group companies.

REL has a majority stake in the special purpose vehicle (SPV) Religare Insurance Holding Company (RIHCL). The 50:50 joint venture (JV) with leading global life insurance and pension company Aegon International NV is to foray into mutual funds. REL has infused about Rs 18.96 crore in RIHCL for a 75.39% stake in this start-up subsidiary.

A JV with Macquarie Bank to expand its wealth management business is set to start subject to necessary approvals. Macquarie will be a 50% shareholder of Religare Wealth Management Services (RWMSL), expected to be renamed Religare Macquarie Wealth. Both the partners have committed to contribute their pro-rata share of the equity capital: 20 lakh shares worth of Rs 20 million. Also, they have agreed not to transfer their shares or any right, title or interest in it for five years.

The objective of the issue is to fuel future growth including expansion of branches of two of its subsidiaries: Religare Securities and Religare Insurance Broking. REL plans to fund the retail finance business as well as expand its financing business through its subsidiaries Religare Finvest and Religare Finance.


  • A wide geographic reach, growing clients, and a diversified portfolio of products and services. End September 2007, had six regional offices and 40 sub-regional offices across 392 cities and towns controlling 1,217 business locations (managed with business associates) all over India as well as a representative office in London. Also, has a region-focused entrepreneurial management team leading 6,500 employees.
  • Products and service offered under three broad client-interface categories: Retail Spectrum, Wealth Spectrum and Institutional Spectrum. Retail Spectrum offers equity and commodity brokerage, personal financial services, internet trading and personal loans. Wealth Spectrum offers portfolio services (PMS), wealth advisory services and private client services. Institutional Spectrum offers institutional distribution and investment banking services.
  • Increasing clients in both equity and commodity trading. Equity clients (including institutional clients) increased from 1,49,000 clients end March 2007 to 2,37,000 clients end September 2007, an increase of 59% over the six months. Also, clients in the commodity service jumped 54%, from 14,955 to 23,000. Online investment accounts surged 189%, from 11,600 to 33,500. Also, market share of trading volume on NSE imoved up from 4.76% to 8.67%.


  • The Securities and Exchange Board of India (Sebi) has taken actions (subject to final orders) against Religare Securities for price manipulation in certain scrips.
  • The track record of listed group companies Fortis Financial Services and Fortis Healthcare has been far from encouraging.
  • Proper execution and supportive economic environment will be necessary to implement the aggressive growth plans across the financial spectrum..


At the offer price band of Rs 160-Rs 185, P/E based on the year ending March 2007 (FY 2007) EPS of Rs 3.3 works to 48.7 (on lower band) to 56.4 (on upper price band) times. P/E of other comparable listed players is: India Bulls Financial Services (27.4 times), Emkay Shares (47 times), India Infoline Financial Services (66.8 times), IL&FS Investsmart (31.2 times) and Geojit Financial Services (35.8 times).

While valuations appear steep based on FY 2007 numbers, they appear cheaper based on the performance for the six months ended September 2007. During this period, the company reported net profit of Rs 36.19 crore on a consolidated basis, which was 46% higher than the profit reported in FY 2007. The annualised EPS on post-IPO equity works out to Rs 9.6. This is discounted 19.4 times by the upper band of issue price of Rs 185 and 16.7 times by the lower band of Rs 160.

US markets rise in anitcipation of Fed rate cut

US markets picked up where they had left off last week and traded higher in the face of seemingly negative developments like weak dollar & high oil prices. Stocks closed broadly higher as expectations of a Fed rate cut offset those concerns. There are speculations that the Federal Reserve will knock down short-term interest rates a quarter point on Wednesday.

Another round of earnings provided encouragement that the fallout from the subprime crisis wasn't widespread but analysts worried that rising commodity prices and a sagging dollar would eventually take their toll. The Dow added 0.5% to close at 13,870. The Nasdaq too gained 0.5% to 2,817. Meanwhile the S&P 500 increased 0.4% to 1,541.

Indian ADRs end high; ICICI Bank spurts 6.5%

Indian ADRs ended the day with good gains and on a day when the BSE Sensex crossed the 20,000 mark. In the technology pack, Infosys Technologies was up 3.51% at $ 50.95, Patni Computers was up 0.09% at $ 22.69, Satyam Computers was down 0.37% at $ 29.73, while Wipro ended the day 1.01% higher at $ 16.03.

In the non-technology pack, HDFC Bank was up 5.2% at $ 132.40, VSNL was up 2.96% at $ 31.64, ICICI Bank was up 6.53% at $ 68.86, MTNL was up 5.02% at $ 9.83, Tata Motors was up 2.76% at $ 20.85, Dr Reddy's Lab was up 1.76% at $ 16.20 and Sterlite was up 4.26% at $ 24.99.

Tuesday, October 30, 2007

Watch out for follow-up buying on declines

The markets continued on their ascent inspite of the weekend factor and the beginning of new F&O series. The traded volumes were marginally lower on the NSE as the upthrust was met with scepticism from the retail camp.

The market breadth was positive as the combined exchanges advance decline ratio was 2510:1396. The capitalisation of breadth was also positive as the commensurate figures were Rs 24706 cr:Rs 4239 cr.

The F&O data for Thursday indicated a routine paring of exposure on expiry day amidst higher implied volatility.

The 5655 / 5480 range specified for Friday was overcome on the upside after the Nifty managed to stay above the 5555 threshold, advocated as a bullish pivot point for Friday.

The positive market breadth inspires confidence, though the lower traded volumes are a cause for some concern.

The Nifty spot attempted to test the previous high of 5737 and that confirms the “hound of baskerville” pattern advocated more than a week ago in this column. The gateway to the projected target of 6377 on the Nifty over the medium term, is now open.

The coming session must be monitored for signs of follow-up buying on declines, to enable the bulls to maintain their initiative.

The outlook for the markets on Monday is that of continued optimism. The Nifty spot is likely to see a support pivot at 5640. Avoid shorts as of now.

Nifty targets 6000 mark

The Nifty has retraced all its losses. The weekly charts look strong and this bullishness will take the benchmark indices to new highs. However, the relative strength index (RSI) should be observed carefully because if does not mirror the market highs, there could be a sharp correction, according to Kamalesh Langote,

Almost two weeks prior to October expiry, the RSI diversion had led to correction of almost 2000 points on the Sensex and 700 points with regard to Nifty.

Nifty has a target of 6,100, going by Fibonacci numbers, as it has retraced from 5737 to 5071 and back to 5,707 now. As the Nifty has retraced 636 points from its low and the Fibonacci number after 144 is 1.618, Nifty should rise by 1,030 points from its low of 5071 to a target of 6,100.

The Fibonacci ratios are derived by dividing any number in the series by the next higher number. The ratio after 3 is always 0.625 and after 89, it is always 0.618. If you divide any Fibonacci number by the preceding number, the number is always 1.6 after 2 and 1.618 after 144.

Call options data suggests that upper limit for the Nifty November contracts is between 6050 and 6128, because call option writers have paid a premium of Rs 148 for the strike price of 5,900.

The last week saw long OI build up in stocks such as Axis Bank, Central Bank, CESC, Federal Bank, GE Shipping, HDFC Bank, JP Hydro, JSW Steel and Triveni, with the cost of carry turning negative for Axis Bank and HDFC Bank.

These stocks are likely to outperform in the coming days and hence one should enter at lower levels.

Weekly Tech: Resistance around 20,550

The markets ended last week on a high note as the major indices gained by over 9 per cent. The Sensex began the week on a weak note, as was expected, but the bulls came back strongly and took the index to a new high. It rallied to a fresh all-time intra-day high of 19,276, gaining by 2,105 points from the weekly low of 17,171.

The Sensex finally ended the week at a record 19,243, registering a hefty gain of 9.6 per cent or 1,683 points.

The low of 17,171 was significantly higher then the support level of 17,000 mentioned last week. Now that the markets are back into unchartered territory, it will be difficult to set upside targets.

The positive trend should continue this week. The Sensex is likely to target 20,000 to 21,000 by the year-end. On the downside, the index has a near support at 19,000 and below this, it may drop to 17,870.

The NSE Nifty came quite close to its peak of 5737 as it touched a high of 5717, up 646 points from the week’s low of 5071.

The index settled with a gain of 9.3 per cent (487 points) at 5702. The Nifty could face resistance around 5970 before crossing the 6000 mark. It is likely to find significant support around 5400 in case of a downmove.

The Sensex may face resistance around 20,045-20,295-20,550 this week. Support, on the downside, should emerge around 18,440-18,190-17,940. The Nifty, on the other hand, may face resistance around 5950-6025-6100, while on the downside, it is likely to find support around 5455-5380-5300 in the coming week.

Fund Action

Tata Steel
SAC Capital Advisors buys 31.5 lakh shares @ Rs 979.5/sh
Morgan Stanley-Mauritius sells 40 lakh shares @ Rs 979.8/sh

Indiabulls Real
JPMSL Copthall Mauritius sells 33.16 lakh shares @ Rs 615.75/sh (1.4% stake)

ICICI MF buys 4.44 lakh shares @ Rs 353.76/sh

Prithvi Info Solutions
Deutsche Securities Mauritius sells 1 lakh @ Rs 245.25/sh

Champagne Indage
Lehman Brothers Asia LTD buys 1 lakh shares @ Rs 720/sh
Citigroup Global-Mauritius sells 1 lakh shares @ Rs 720/sh

Deep Industries
Sundaram MF buys 1.15 lakh shares @ Rs 151.35/sh

Mather Pumps
UBS Securities Asia sells 1.73 lakh shares @ Rs 160.2/sh
Bear Sterns sells 48 thousand shares @ Rs 160/sh

Sharyan Reso
UBS Sec Asia sells 1 lakh shares @ Rs 350.6/sh

Shriram Transport Finance - Multibagger

Shriram Transport Finance Reco Price Rs. 248.00

The company has reported an EPS of 18.32 for the whole year 2007-08 based on annualized profits of the first half year. This works out to a P/E ratio of 12.8. We recommend this share with a target price of Rs 360 on a one-year horizon.


Shriram Transport Finance is a Chennai based finance company which has been in existence for over 27 years. It is the leader in financing of pre-owned cars in the country. It commands a huge market share of over 25% with asset size of Rs120bn. It has got a very good expertise in a highly profitable area where knowledge of the market is a key determinant for success.


STFL has reported excellent numbers for the second quarter of 2007-08. It’s profits more than doubled to Rs 96 crores on revenue base of Rs 570 crores. The company is also having expansion plans for which it will approach global capital markets.


Unlocking of investments in insurance venture.


The company has reported an EPS of 18.32 for the whole year 2007-08 based on annualized profits of the first half year. This works out to a P/E ratio of 12.8. This is extremely attractive considering the growth in turnover and profits, strong market share and unlocking of opportunities which are available.

We recommend this share with a target price of Rs 360 on a one-year horizon

Monday, October 29, 2007

FII inflow, RBI policy review outcome to dictate trend

Trend in inflow from foreign funds will dictate the near term trend on the bourses. The market on Friday, 26 October 2007, shrugged off Securities & Exchange Board of India (Sebi) directive on restriction of participatory notes (PNs) that came into effect from 26 October 2007. Sebi has banned fresh issuance of PNs with derivatives as underlying and it has also ordered winding up such PNs in 18 months, besides putting curbs on such issue of PNs in the spot market.

According to Citigroup, given the limited headroom available due to the 40% limit on issue of PNs, return to 'regulated' entities rule, and the time it might take for the entities to get FII registration, the new Sebi norms may significantly reduce near term foreign flows. Sebi has proposed an incremental rate of 5% for issue of PNs for FIIs with less than 40%t of assets under custody (AUC) in PNs. Those with over 40% of assets in PNs can issue PNs only against redemptions or cancellations.

Kotak Institutional Equities, in a note, states that it does not expect any major impact of the new policy on the market and it is of the opinion that the market has largely absorbed the changes in PN norms. ‘We rule out any major selling in the market and expect a smooth transition to the new regime’, it has said in a note to clients adding that while Sebi has banned sub-accounts of FIIs from issuing further PNs, PN issuing sub-accounts FIIs have already started the process of conversion to FIIs. There is no ban on issue of PNs by FIIs though restrictions have been put in place for them. There is a ban of fresh issue of PNs with derivatives as underlying.

Providing a major relief over the issue, Sebi on Monday, 23 October 2007, said sub-accounts which intend to covert into foreign institutional investor status have to sent their letter of intent to the regulator within 24-hours. Sebi later said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status. There are 34 PN issuing entities in the country, of which some are already FIIs. This number was 14 in March 2004.

FIIs can now issue PNs only to foreign entities which are ‘regulated’ in their respective jurisdiction and not to those that are merely ‘registered’ in the jurisdiction as was the norm earlier. This will mean that some hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market. Users of PNs are largely hedge funds, a fast-growing asset class globally in recent years. Nevertheless, such hedge funds can apply for direct registration with Sebi.

Sebi says PNs allow foreigners to make a backdoor entry into the market, and it wants them to register to create greater transparency on inflows. PNs are financial instruments used by foreign investors that are not registered with Sebi, to invest in Indian shares. FIIs and their sub-accounts buy Indian securities and then issue PNs to foreign investors with these securities as the underlying.

Besides some key Q2 September 2007 results, the major events next week are Mid-Term Review of Annual Policy by the Reserve Bank of India on Tuesday, 30 October 2007, and policy meeting of the US Federal Reserve on 31 October 2007. Bank of Japan also holds its policy meeting on 31 October 2007.

Market men see no change in interest rates by RBI in Mid-Term Review of Annual Policy on Tuesday. It remains to be seen whether RBI raises cash reserve ratio so as to suck out excess liquidity in the banking system.

There are hopes that the US Federal Reserve will cut interest rates again at its policy meet on 31 October 2007, given the recent weak US economic data. A further cut in interest rate by Fed, if any, will only add to global liquidity which already remains high. This in turn will ensure that FII inflow in India will continue even as their buying vigour may not be as strong as was recently due to Sebi restrictions on PNs.

Key Q2 September 2007 results next week Maruti Suzuki, Bharat Heavy Electricals, HDFC and Mahindra & Mahindra on Monday, 29 October 2007, ONGC, Steel Authority of India, Tata Power, DLF on Tuesday, 30 October 2007, and Tata Motors on Wednesday, 31 October 2007. On Saturday, 27 October 2007, NTPC, Grasim, State Bank of India will unveil Q2 results.

US markets rally on positive earnings news from Microsoft; Profit estimates from Countrywide

US stocks rallied after sales from Microsoft topped analyst estimates by 1 billion dollars. Countrywide Financial forecast a profit, easing concerns the economy will slip into a recession.

The report from Countrywide that it expects to return to profitability soon, despite a big third-quarter loss, rekindled investor hope that the problems in the housing market are contained and that US consumers still have spending power. Countrywide surged $ 4.23, or 32%, to $ 17.30. Strong report from Microsoft inspired buying throughout the technology sector. Microsoft rose $ 3.04 to $ 35.03, pushing software companies in the S&P 500 to a 4.1% gain, the steepest advance since April 2003.

The S&P 500 climbed 20.88, or 1.4%, to 1,535.28, its steepest advance this month. The Dow Jones Industrial Average gained 134.78, or 1%, to 13,806.7. The Nasdaq Composite Index jumped 53.33, or 1.9%, to 2,804.19.

For the week, the Dow rose 2.11%, the Nasdaq was up 2.90%, and the S&P 500 jumped 2.31%. The gains were welcome after all three indexes posted losses in the previous week.

After spiking above $ 92 a barrel, December crude futures rose $ 1.40 to settle at $ 91.86 a barrel on the New York Mercantile Exchange. Gold futures rose $ 16.50 to close at $ 787.50 an ounce, the highest price since January 1980. Energy, metals and agriculture futures all moved higher.

Indian ADRs flare; ICICI Bank up 11%, HDFC Bank up 10%

The strength in the US markets and the good performance by the Indian stocks made sure that the ADRs had a good close. All of them mamangaed to end in the green. The gainers were led by the banks-ICICI and HDFC, which were up 11% and 10% respectively. VSNL was other major gainer rising 9%.

In the technology pack, Infosys Technologies was up 1.32% at $ 49.22, Patni Computers was up 4.18% at $ 22.67, Satyam Computers was up 6.65% at $ 29.84, while Wipro ended the day 3.19% higher at $ 15.87.

In the non-technology pack, HDFC Bank was up 10.18% at $ 125.85, VSNL was up 8.7% at .73, ICICI Bank was up 11.01% at $ 64.64, MTNL was up 1.74% at $ 9.36, Tata Motors was up 4.05% at $ 20.29, Dr Reddy's Lab was up 0.89% at $ 15.92 and Sterlite was up 7.44% at $ 23.97.

Saturday, October 27, 2007

TVS files Rs 250 Cr suit against Bajaj Auto- DNA Money

TVS Motor Company has filed a Rs 250 crore defamation suit against Bajaj Auto in the Bombay High Court, according to a DNA Money report. The suit is in reaction to Bajaj’s allegation that TVS had infringed the latter's patented DTSi (digital twin spark plug ignition) technology. The DNA Money quotes Shiraz Patodia of Dua Associates, the law firm which represents TVS Motor as saying, "The suit pertains to Bajaj Auto’s allegations regarding infringement of its patented engine technology by TVS Motor. The total amount we are claiming as damages is Rs 250 crore,” she added. The suit will come up for hearing in due course."

Earlier there was trouble between the two auto majors when TVS Motor announced its intent to launch the 125cc Flame, which the Bajajs implied was an infringement of its own twin spark technology. The report goes on to add that Bajaj had stated in the past that it holds the global and Indian patents for the technology for small engines. It also claims to have received necessary patent approvals in July 2005 for its Bajaj-DTSi technology.
The company maintained that the twin spark plug technology was being used by TVS for the same engine size in a bike engine and with the same construction.

TVS, in its turn, retorted that the Flame, a four-stroke, four-geared bike, was fitted with a three-valve engine working on the controlled combustion variable timing intelligent (CC-VTi) technology.

US mkts end marginall lower on rumours over subprime trouble, high energy prices

It was yet another topsy-turvy session for the US markets. Rumours about more subprime trouble and a Fed rate cut coupled with handful of economic and earnings reports resulted in another large sell-off early on only to see the stock market come barreling back in afternoon trading.

In economic news, September durable orders was down 1.7%, larger than consensus while weekly inital jobless claims dropped to three lakh thirty one thousand, which was higher than expectations. September new home sales rose 4.8% in September after a sharply lower revision of the August reading. Investors also had to contend with higher energy prices as crude oil spiked to an all-time high of $ 90.60 a barrel before settling slightly lower.

The Dow fell 3.33, or 0.02%, to 13,671.92 after changing direction several times. The blue chip index was briefly down more than 100 points. Broader stock indicators also fell. The Standard & Poor's 500 index fell 1.48, or 0.10%, to 1,514.40, while the Nasdaq composite index fell 23.90, or 0.86%, to 2,750.86.

Indian ADRs end mixed to lower; Satyam down 4%

Indian ADRs ended mixed to lower. Satyam was the major loser down more than 4%. In the technology pack, Infosys Technologies was up 0.29% at $ 48.58, Patni Computers was down 2.9% at $ 21.76, Satyam Computers was down 4.15% at $ 27.98, while Wipro ended the day 1.25% higher at $ 15.38.

In the non-technology pack, HDFC Bank was down 2.83% at $ 114.22, VSNL was up 3.14% at $ 28.27, ICICI Bank was down 0.29% at $ 58.23, MTNL was down 2.95% at $ 9.20, Tata Motors was down 0.91% at $ 19.50, Dr Reddy's Lab was down 2.29% at $ 15.78 and Sterlite was up 1.83% at $ 22.31.

Fund Action

Maytas Infra
ABN Amro Bank buys 4.2 lakh shares @ Rs 578.7/sh
Citigroup Global Markets buys 12 lakh shares @ Rs 566/sh (NSE/BSE)

Arvind Mills
DSP Merrill Lynch Capital buys 12.43 lakh shares @ Rs 74.3/sh
Recent Fund Action:
Robeco capital growth fund bought 13.63 lakh shares @ Rs 67.41/sh on Oct 12th
Birla MF bought 17 lakh shares @ Rs 65.2/sh (0.81% stake) on 3 Oct
Morgan Stanley Dean Witter bought 12.47 lakh shares @ Rs 60.7/sh on 28 Sept
Morgan Stanley Dean Witter bought 10.62 lakh shares @ Rs 59.7/sh on 27th Sept
Citigroup Global bought 27 lakh shares @ Rs 52.7/sh (1.29% stake) on 4th Sept

Balrampur Chini
UBS Sec buys 18 lakh shares @ Rs 83/sh

Subex Azure
Merrill Lynch Capital Espana buys 10 lakh shares @ Rs 330/sh
Mirae Asset Inv sells 9.95 lakh shares @ Rs 330/sh
Recent Fund Action:
UBS Securities Asia buys 4.7 lakh shares @ Rs 383/sh on 23rd Oct

Mercator Lines
Deutsche Securities Mauritius buys 10.1 lakh shares @ Rs 124/sh
Recent Fund Action:
Deutsche Securities buys 11.54 lakh shares @ Rs 111.19/sh on Oct 24th

Bombay Rayon Fashions
ABN Amro Bank sells 4.37 lakh shares @ Rs 226.7/sh

Deutsche Bank AG sells 3.23 lakh shares @ Rs 167.4/sh

Ahluwalia Co
Goldman Sachs Investments buys 5.31 lakh shares @ Rs 235/sh

Glory Polyfilms
Axiom Impex Int sells 1.45 lakh shares @ Rs 87.7/sh

GTL Infrastructure
HSBC Financial-Middle East buys 50.66 lakh shares @ Rs 40/sh

GVK Power & Infra
Credit Suisse Singapore buys 4.44 lakh shares @ Rs 680/sh

Mount Everest Mineral
BNP Paribas Arbitrage buys 3 lakh shares @ Rs 137.5/sh

Khandwala Sec
Bentley Investment buys 1.75 lakh shares @ Rs 47.2/sh

Karuturi Networks
Bear Sterns buys 1.72 lakh shares @ Rs 199.85/sh

Ganesh Housing Corp
Macquarie Bank buys 1.46 lakh shares @ Rs 514.7/sh

Friday, October 26, 2007

ITC’s second quarter profit up 13%

Tobacco, hotels and FMCG major ITC Ltd on 26 October beat market forecasts with a 13% rise in quarterly net profit, helped by strong growth in its packaged foods and hotels businesses.
ITC, in which British American Tobacco Plc has a 31.7% stake, also has interests in retail and information technology, and recently launched personal care products.
The Kolkata-based company said net profit rose to Rs771 crore in the fiscal second quarter to end-September from Rs680 crore a year earlier.
A value-added tax of 12.5% from April has slowed sales of cigarettes, which make up more than half its revenues, and ITC is also investing in increasing its paperboard capacity and expanding its agri-business network in rural areas.
ITC shares gained 23% during the quarter, beating an 18% gain for Sensex

ABB Q3 net up 41% on strong orders

Maker of equipment for power plants and electricity management, ABB Ltd, said profit rose 41% to Rs115.68 crore for the third quarter to September, as it got more orders from customers such as JSW Steel Ltd and state electricity boards.
ABB said revenue rose to Rs1,393.3 crore in the three months between July and September, an annual growth of 27%. ABB had reported profit of Rs82.14 crore on sales of Rs1,093.6 crore in the third quarter in 2006.
ABB, the Indian subsidiary of ABB Group in Zurich, Switzerland, sees busines opportunity in India’s increased spending on electricity distribution and setting up new power plants to fuel the country’s economy growing at more than 9%.
“Our order book is getting stronger, helped by core business growth as well as new revenue streams and we continue to be positive on the market outlook,” said Biplab Majumder, country manager and managing director, ABB India, in a statement.
In the nine months to September, ABB has got orders of Rs5,665 crore, an increase of 35% over the same period last year. The order intake during the third quarter was Rs1,668.3 crore, 23% higher than in July-September 2006.
“Capacity and range expansion is under way across businesses to enable us to address India’s growing power and automation needs,” said ­Majumder.

Rupee climbs on record-breaking stock market

Rupee climbed on Friday, tracking gains in the stock market, which hit a record high as investors brush off concerns about capital flows after regulator said it would tighten investment rules for unregistered foreigners.
At 11:35 am the rupee was at 39.520/527 per dollar, moving up from Thursday’s close.
Rupee had held steady against the US currency in late morning deals after a weak start on some dollar demand from oil refiners and the market regulator Sebi’s decision to regulate FII inflows into equity markets.
In lacklustre trade at the Interbank Foreign Exchange (forex) market, the local currency resumed lower at 39.60/62 a dollar from yesterday’s close of 39.53/54 a dollar, but later recovered its losses and was quoted at 39.52/53 a dollar in late morning deals.
Rupee came under pressure on fears of slow down in FII inflows as a result of Sebi’s new set of rules including consideration of the proposals to regulate excessive inflows through participatory notes.
Meanwhile, the stock market this morning rallied sharply and was up 276 points in line with strong Asian markets.
The dollar in overseas markets fell to three-month low versus the pound sterling yesterday.

Reliance Power IPO on track

The company has announced plans to sell 10.1% of the company making it India’s biggest IPO

Reliance Power has not changed its plans to list its shares, the Anil Dhirubhai Ambani Group that controls the firm said on 23 October, reacting to market speculation the initial public offer may be postponed.
The company has announced plans to sell 10.1% of the company, which media reports have said may raise $2.8 billion, making it India’s biggest IPO.
The group, which also has interests in telecoms, financial sector and infrastructure, controls Reliance Power through group companies including Reliance Energy, which has a 50% holding in the firm.
There is a “vicious campaign of disinformation underway by vested industrial interests to stall Reliance Power’s IPO”, a spokesman for the group said in a statement.
“The campaign is motivated by frustration at continuing success and rising valuations of ADA Group,” he said.
Reliance Power is awaiting the approval of the market watchdog for the offering, he said.
Several sources familiar with the deal said the firm was hoping to price its share offer at the end of November or start of December.
“For the time being they’re looking to launch it in pre-marketing next week,” one source said.
“The original timetable is still going fine,” said another source. “The roadshow was due to start around mid-November, the week of 12 November.”
But a third source said the timetable had to be flexible because it was impossible to start the roadshow around Asia and Europe until the firm had received approval from the Securities and Exchange Board of India (Sebi).
“They’re targetting to complete the transaction by the end of the year. If you want to complete the deal by the end of the year, you have to launch it by mid-November,” the source said.
“If the SEBI’s approval comes in a bit late, everything will be pushed back.”
Up to 30% of the shares will be offered to retail clients, with a further 10% going to high net worth individuals. Institutional investors will be offered 60%, and may get the chance for more if retail demand is weak.
The issue will be managed by UBS, ABN AMRO, JPMorgan, Deutsche Bank, Enam Securities, ICICI Securities, JM Financial and Kotak Mahindra Capital, while Macquarie India and SBI Capital Markets are co-managers.
The Anil Dhirubhai Ambani group was formed two years ago when the Reliance group was split between elder brother Mukesh Ambani, who controls Reliance Industries Ltd, and Anil.

Reliance Power moves SEBI on campaign by 29 individuals

he Anil Ambani-group controlled Reliance Power Ltd (RPL) has lodged a complaint with the Securities and Exchange Board of India (Sebi) against 29 individuals for carrying out a campaign against the company’s proposed initial public offer (IPO).

Sources claimed that the names cover a cross-section of individuals, ranging from members of Parliament and state legislators to those in Reliance Industries Ltd (RIL).

An RPL spokesperson said, “We have filed a formal complaint with Sebi to investigate the disinformation campaign launched against Reliance Power IPO.”

RPL had filed a draft red herring prospectus (DRHP) with Sebi for its IPO on October 3, 2007, and since then, there have been media reports on irregularities against RPL, claiming that Reliance Energy Ltd (REL) has passed on power projects from its kitty to RPL.

“Reliance ADAG intends Reliance Power to be its primary vehicle for investment in the power generation sector in the future,” the group said in its DRHP.

Sources also claimed that the Sebi complaint relates to forging of letters by individuals while petitioning various government offices against REL projects being passed on to RPL.

There are about a half a dozen members of Parliament and state legislators who have written such letters.

According to the DRHP, RPL has 12 power projects with it, though the growth driver for the company will be the 3,960 MW Sasan ultra mega power project.

The project recently received certification for availing fiscal benefits under the mega power policy of the government.

Incidentally, throughout the run-up to the Sasan project, media reports had said that it was REL which was in the race for the project.

Eventually, it was RPL which received the letter of intent from Sasan Power Company, a shell company created for the purpose.

After the IPO, group companies Reliance Energy Ltd (REL) and AAA Project will directly or indirectly own about 45 per cent equity in RPL.

Tax payments of telecom, auto cos dip

Advance tax payments by telecom and automobile firms for the second quarter this fiscal fell substantially, although the government received 30% higher taxes overall due to better showing by cement, realty and financial services companies.

“Telecom companies have paid 17.3% less taxes at Rs 535 crore against Rs 647 crore while the slowdown in sales of vehicles led to fall in tax collection from auto sector by 14% at Rs 771.6 crore against

Rs 897.1 crore in Q2 last fiscal,” official sources told agencies.Total advance taxes paid by September 15 rose by 30.2% to touch Rs 24,861 crore during the quarter, against

Rs 19,090.98 crore in the corresponding period of previous year. Corporates have to deposit 15% of their advance tax by June 15; 30% each by September 15 and December 15 and the remaining by March 15, based on their expected annual tax liability.

Sources said while Hutchison Essar (now Vodafone Essar), state-run MTNL and BSNL paid less tax, Sunil Mittal-led Bharti Airtel and Tatas-controlled VSNL paid more taxes. The telecom sector, which is adding more than 60 lakh connections every month, is expected to show good results, but the companies have claimed that they have increased investments to expand their network, sources said.

Faced with stagnating demand, major auto companies like Bajaj Auto, Tata Motors, Hero Honda, Mahindra & Mahindra, Hyundai Motors and Punjab Tractors lowered their advance tax payments in the second quarter. However, Maruti Suzuki, Daimler Chrysler, Volvo, Tafe and Ashok Leyland contributed higher taxes. Both Hero Honda and Bajaj Auto, which have announced their second quarter results ended September 30, saw an increase in their sales. However, Hero Honda's net profit declined.

The finance ministry has fixed a target of Rs 2,67,490 crore to be collected through direct taxes in the current fiscal. Sources said with continuing boom in housing sector, real estate firms and related sectors such as banking and cement also deposited more taxes. Tax payments by realty firms rose more than four-fold to Rs 345 crore by September 15 this year as against Rs 65 crore in the year-ago period.

Unitech, DLF, the Raheja group, Ambuja Cements and the Mangalam group were the top tax payers in construction sector, the sources said. Advance tax payments by insurance firms went up by 37.2% at Rs 1,520 crore as against Rs 1,108 crore during the same period last fiscal.

The energy sector, which is playing a key role in sustaining the growth of over 9% of economy, also increased its tax payments by around 32%, and deposited Rs 3,996 crore by September 15,
sources said.

With the success of “Incredible India” campaign, the hospitality sector doubled its tax payment to Rs 123.5 crore. Tax payments by print media and electronic channels nearly doubled to Rs 244 crore by September 15. Bennett Coleman & Co, Deccan Chronicle and Zee Entertainment were among the top advance tax payers, they said.

Cairn India consolidated net at Rs 23 cr in 3rd quarter

Cairn India Ltd has reported a consolidated net profit of Rs 23.2 crore in the third quarter of 2007 against a loss of Rs 71 crore posted in the second quarter. The consolidated revenue of Cairn India and its subsidiaries for the quarter ended September 30 was Rs 265.8 crore, a 9.25-per cent increase over the previous quarter (Rs 243.3 crore). On a standalone basis, Cairn India Ltd has posted net loss of Rs 8.39 crore for the quarter ended September 30. Total income stood at Rs 7.94 crore.

The gross production of the operating units for the third quarter was three per cent lower at 75,280 barrels of oil equivalent per day (boepd) over second quarter (77,392 boepd).

Oil realisation

The company’s average oil price realisation in the third quarter was higher at $77.2 a barrel compared to the previous quarter realisation of $71.11 per barrel. The gas price realisation in the third quarter was $4.13 per million standard cubic feet.

Mr Rahul Dhir, Chief Executive, Cairn India, said, “We continue to focus our efforts on driving forward the Rajasthan midstream and upstream developments with first oil production from Mangala on schedule for 2009. The exploration success in Ravva and the drilling programme in the Cambay basin will underpin cash flows from these two important assets”.

Cairn flares up on takeover talk

Market rumours that Cairn Plc was being bought over by BP for a possible consideration of £3.6 billion saw its group company Cairn India's scrip touching a 52-week high of Rs 216.8 on Wednesday. The scrip settled at Rs 204.75 a share, up 7% over previous close on the Bombay Stock Exchange.

The rumour triggered in the London market saw shares in London Stock Exchange-listed Cairn Plc, soar nearly 8% to reach its highest level of the year. Media reports from London said the jump valued the group at just under £3 billion.

Sources said the rumour came in the wake of the recent approaches by Eni, the Italian giant, and the Korean National Oil Company for Burren Energy though the latter does not have any relation with the Cairn group.

"Mid-cap oil exploration companies like Cairn, Premier, are being seen as being the possible target for acquisition by bigger companies," said an industry source. When contacted, a senior Cairn India executive did not deny that Cairn Plc could be one of the mid size companies under the radar of big oil companies but added that such rumours have been doing the rounds for some time now.

Denying any stake sale in Cairn India, its spokesperson said, "Cairn India's management is focussed on delivering the substantial growth that it believes is in the business." He said there "has and always will be rumours or speculation" about the company. "We do not and never will comment on the rumours and speculation. We get on with running the business to ensure we deliver the growth," he said.

Thursday, October 25, 2007

Moser Baer to raise USD 100 mn in its wholly owned photovoltaic subsidiary

Moser Baer India Ltd on October 19, 2007 announced that it has received the approval of its Board of Directors to raise USD 100 million (Rs 400 crores) in its wholly owned photovoltaic subsidiary. The investment will be made by a consortium of investors led by IDFC Private Equity, a private equity fund focused on the infrastructure space in India; together with GIC Special Investments, the private equity investment arm of GIC, a global investment management Company established manage Singapore's foreign reserves; CDC Group plc (the UK government owned emerging markets fund of funds investors and Infrastructure Development Finance Company (IDFC), India's infrastructure development and finance company. Moser Baer's photovoltaic subsidiary will use the proceeds to partially finance its overall plans to increase capacity to 500 MW by 2010 - making it one of the largest players in the global photovoltaic industry in a short span of time. Additionally, the transaction wilt position the photovoltaic subsidiary for a listing on an international exchange of repute.

"We are delighted to have respected & global private equity investors as our growth partners for the photovoltaic business. We are confident that Moser Baer will benefit from the international experience of these firms, their global network of professionals and relationships. This investment will enhance the speed of Implementation of our plans to emerge as a Leading technology driven Company in the global photovoltaic space from a position of financial strength and create incremental value for our shareholders. While the photovoltaic business has recently commenced commercial operations, this innovative deal has set a minimum threshold Valuation for the photovoltaic business at USD 1 billion". said Mr Ratul Puri, Executive Director of the Company.

The Company plans to rapidly emerge as a leading, global technology driven manufacturer by implementing a capacity of 500 MW by FY10 through a mix of technologies in the crystalline silicon, concentrator and thin film domain.

Globally, given the rapid growth of the photovoltaic industry, there is currently a shortage of silicon wafers, a key raw material for the photovoltaic industry. The Company has implemented a flexible three pronged model for securing raw material, supply through a mix of strategic investments in silicon manufacturing, long term wafer supply contracts and spot purchases.

Buffett sees dollar weakness, Korea stocks attractive

Berkshire Hathaway Inc's Warren Buffett said on Thursday he expected the dollar to get weaker and said that South Korea's stock market was still more attractively valued than other world markets.

Buffett, who was making a one-day trip to Korea after a visit to China, said Berkshire Hathaway continued to seek good businesses, which will get cheaper in markets if problems from the U.S. subprime mortgage crisis continues.

"We are still negative on the dollar. We bought stocks in companies that are earning their money in other currencies," he said to reporters during a visit to unlisted Korean company TaeguTech.

"In the UK for example, we bought stocks in Tesco . We are gaining foreign currency exposure that we like."

The U.S. currency has lost 23 percent against the South Korean won since the end of 2003, hit by accumulating current account surpluses in South Korea and a steady inflow of portfolio investment into the country's financial markets.

International Monetary Fund Managing Director Rodrigo Rato said on Monday the U.S. currency was still overvalued and that there was room for further depreciation.


Buffett was sanguine about the impact on Berkshire's investments arising from the subprime mortgage crisis in the United States. While he acknowledged it had been having an impact, he added that potential investment candidates could become cheaper amid market turmoil.

"In six months, or one or two years, the problem in the subprime mortgage, problem in consumers and their buyings in the U.S. may still be there, but this does not have any impact on what we do. We are looking for good businesses, and if some bad temporary news makes a business more available, then we do not care at all."

Omaha, Nebraska-based Berkshire Hathaway owns more than 70 businesses and has some $100 billion of stock and bond investments. The company also has as a subsidiary TaeguTech, which makes cutting tools and tungsten powders.

Buffett, worth $52 billion according to Forbes magazine in March, said he was gaining foreign currency exposure that he likes by owning companies that make money in other currencies, such as the world's fourth-biggest steelmaker POSCO .

Berkshire said in March it held a 4 percent stake in POSCO as of the end of 2006, which he said on Thursday was currently the firm's only holding in a South Korean company.

When asked about South Korean stock markets, he said: "My impression is that the Korean market is modestly cheaper than other markets in the world. I think the Korean market would do better for the next 10 years," he said.

"There is no reason there should be a "bubble" (in the Korean market). The shares were way too cheap a couple of years ago."

South Korea's benchmark Korea Composite Stock Price Index trades at a 2006 price to earnings ratio of 17 times, compared to the Shanghai Composite Index which trades at a PE of around 45 times 2007 earnings, making it one of the cheapest in Asia.

KOSPI, which closed up 2.2 percent at 1,976.75 on Thursday, is up around 38 percent this year and is within sight of record highs of 2,058.87 reached earlier this month.

During his first visit to Korea, Buffett was scheduled to meet the chief financial officer at POSCO Co Ltd, Lee Dong-hee, an official at the steelmaker said on Thursday.

POSCO CFO had met Charlie Munger, Berkshire's vice chairman in June in Los Angeles, according to the official.

The veteran investor, known as the "Oracle of Omaha" for his astute investments, was asked whether he had any plans to put money into South Korea's reclusive northern neighbor.

"Well, first of all, I am very flattered by the question because things would have to change a whole lot before we can make investments. I'm 77 years old and the thought that the day would come in my time -- it's very flattering but it's a long way off," he said.

U.S. "undoubtedly in recession": Jim Rogers

The United States has entered a recession, according to highly-regarded investor Jim Rogers, who told Britain's Daily Telegraph newspaper on Wednesday he was switching out of the dollar and into yen, the yuan and the Swiss franc.

The veteran investor, who predicted the 1999 commodities rally, also said he was still bullish about surging Chinese stock markets despite worries over a bubble.

Fears are growing over the health of the U.S. economy after the fallout from the subprime mortgage market crisis and the global credit crunch it triggered.

The U.S. Federal Reserve has already slashed borrowing costs by 50 basis points to 4.75 percent to try and shore up the world's biggest economy and is widely expected to lower interest rates again next week.

"The US economy is undoubtedly in recession," Rogers told the Telegraph in Hong Kong in an article published on its Website.

"Many parts of industry are actually in a state worse than recession. If it were not for (Federal Reserve Chairman Ben) Bernanke putting huge amounts of money into the market, the stock market would probably be down much more than it is."

Rogers, who co-founded the Quantum Fund with billionaire investor George Soros in the 1970s, said it made sense to desert the dollar.

"All other things being equal during the next six months, that's the way I will go," he said. "But if the Swiss franc goes through the roof, I probably won't put money into the Swiss franc."

And he dismissed worries for now that surging Chinese equities had formed a bubble.

"It's not a bubble yet -- if it goes past 9,000 in January I'll have to sell. Bubbles always end badly," he said. "I do not want to sell Chinese stocks. I want to own them forever and I want my (four year-old) daughter to own them."

Swan Mills - Multibagger

A realty company in Mumbai

Swan Mills is developing its property located at Sewree and at Kurla in joint venture with Peninsula Land. The company shall be paying 22% of the sale proceeds to Peninsula for carrying out development and marketing of project.

The projects have following area available for development.
1) Sewree Project – Ashok Gardens is a 12-Acre property with high-class luxurious two towers, with parking podium for 500 cars and project shall be completed by June 09. The total saleable area is about 10 lakh sq. ft. The present selling rate is about Rs 15,500 sq. ft. (including floor rise). The average selling price for the project would be about Rs 12,000 per sq. ft., including car parking. Project would realize Rs 1,200 crores. Deducting cost of construction and development of Rs 285 crores and Peninsula Margin of Rs265 crores, PBT would be close to Rs 650 crores.

2) Kurla Project – The 11 acre project is a commercial complex called Peninsula Technopark with a saleable area of 10 lakh sq. ft. The project shall be completed by FY 10. The project is located adjacent to Bandra Kurla complex where present selling rate is about Rs 30,000 per sq. ft. This project can fetch Rs 25,000 per sq. ft. and since the developers have sold one Tower at old rate, the average rate realization could be Rs 20,000 per sq. ft. Peninsula land would be entitled for 22% of selling receipts as Developers fee, which would be about Rs 440 crores. Construction cost would be about Rs 160 crores, resulting in a PBT of Rs 1,400 crores.

The total PBT from both the project would be about Rs 2,050 crores by FY 10, in the next three years.

The present equity of the company is at Rs 19 crores, being 9.50 crore equity shares of Rs 2 each. Promoters are holding 82%, while about 10% is held by few long-term investors. The share has very low floating stock. The share is presently ruling at Rs 128.60, which results in a market capitalization of Rs 1,220 crores.

The company has not yet sold its Kurla property and quite a large area is unsold at Sewree. With any further rise in realization, it would improve its profitability. The expected PBT from the projects are over Rs 2,000 crores.

Hence, share has potential to rise to Rs 150 to Rs 180 levels in the next 6 – 9 months.

Technology stocks take US Market higher

After disappointing reports from retailers, technology stocks provide the boost

It was another volatile day in US market. After witnessing sell-off in the first half of the day, stocks started focusing on better than expected earnings reports from various sectors and indices moved higher in the final hour of trading today, Tuesday, 23 October 2007. All the ten economic sectors posted gains today led by the technology and materials sector.

The Dow Jones industrial Average closed higher by 109 points at 13,676. The Nasdaq Composite Index, finished higher by 45 points at 2,799. S&P 500 finished higher by 13 points at 1,519.

American express, Du-Pont and AT&T led the team of Dow winners while 3M headed the list of Dow laggards.

In the early trading hours, a couple of disappointing reports from Target and Wal-Mart started a sell-off in the market. Wal-Mart said that it plans to trim capital expenditures for the current fiscal year more than forecast. On the other hand, Target lowered its third quarter guidance.

But then, there were quite a few big names that came out with blowout earnings reports. AT&T, Apple, American Express, Du-Pont, UPS - all declared earnings reports beating market expectations.

But it was mainly the technology stocks that led the indices higher for the day. Apple shares gained 6.8% after the company announced 67% growth in its Q4 earnings and attributed the same to solid iPod and iPhone sales. shares rallied by 10% and touched the $100 mark for the first time ahead of its third quarter result.

All Indian ADRs end in green – Satyam the main winner

Indian ADRs closed in the green today. Satyam was the top winner closing up by more than 12%. HDFC Bank and ICICI Bank closed up by 7.7% and 6.7% respectively. Other top winners were MTNL and VSNL gaining 4.5% and 7.2% respectively.

Crude prices continued to drop today as traders speculated that Middle East tension between Turkey and Iraq had eased. Price also continued to drop after market expected that tomorrow’s weekly inventory report on crude and fuel products are expected to show a climb in inventories for week ended 19 October.

Crude-oil futures for light sweet crude for December delivery closed at $85.27/barrel (lower by $0.75/barrel or 0.9%) on the New York Mercantile Exchange. Prices are up 45% on a yearly basis. Last Friday (19 October) price had peaked to $90.02/barrel after dropping later in the day.

Volume on the New York Stock Exchange topped 1.3 billion, and advancing stocks outran declining issues roughly 11 to 5. On the technology-laden Nasdaq, nearly 2.4 billion shares exchanged hands, and gainers outpaced decliners by 17 to 11.

Existing home sales data for September are expected tomorrow at 10.00 E.T followed by the weekly inventory report from the Energy Department. Other than that, Boeing and Merrill Lynch are scheduled to declare their earnings report before market opens.

IndusInd Bank leads gainers in 'A' group

Private sector lender IndusInd Bank spurted 12.77% to Rs 84.75. It topped the gainers in the BSE’s A group shares. The bank will declare Q2 September 2007 results on 27 October 2007.

Drug maker Novartis India jumped 12.66% to Rs 327.40 and came second among top gainers in A group. Its net profit grew 70.1% to Rs 30.39 crore on 14.3% rise in sales to Rs 147.88 crore in Q2 September 2007 over Q2 September 2006. The company declared results during market hours today, 24 October 2007.

Adhesive maker Pidilite Industries flared up 10.39% to Rs 181.75. It was the third biggest gainer in A group. Its net profit jumped 69% to Rs 56.30 crore on 18.8% increase in sales to Rs 370.50 crore in Q2 September 2007 over Q2 September 2006. The company declared results after market hours yesterday, 23 October 2007.

Software firm Rolta India moved up 9.76% to Rs 650.35 and came fourth among top gainers in A group. Earlier on 22 October 2007, the board of directors of the company had approved the proposal for issuing one bonus share for every one share held in the company.

Wind turbine maker Suzlon Energy rose 9.63% to Rs 1,908.75. It was the fifth biggest gainer in A group. The company said on Tuesday (23 October 2007), that it would split its shares and list its Belgium-based group company Hansen Transmissions International NV on the London Stock Exchange.

Wednesday, October 24, 2007

REL investors worried over Reliance Power IPO; ADAG cries foul

An association of investors in Anil Ambani-led Reliance Energy on Tuesday alleged that the planned IPO of group company Reliance Power will erode the value for REL shareholders, but ADAG termed it as a 'vicious campaign' by vested industrial i nterests.

"A close study of draft prospectus reveals that the power generation business opportunities secured in the name of REL and secured with the strength of REL have been transformed to RPL by means of some internal MoUs and understandings," REL Investors For um said in a faxed press release.

"The shareholders of REL have been deprived of the entire power generation business prospects to be accrued to them. By means of such a transfer of business and creation of another shell company to issue public shares, now the power generation profits wi ll accrue to the new company in which Mr Anil Ambani holds 50 per cent."

Investors in REL are feeling cheated with ADA group company RPL's proposed public issue, it noted.

When contacted, REL Investors Forum Secretary 'Veekay', whose name was mentioned on the release along with two other persons - Prakash Krishnan and Anil Upadhyaya - said that the forum members include 60-70 shareholders of REL.

"We are looking at taking legal recourse to safeguard the interest of REL shareholders," Veekay said, adding the forum was also writing to other shareholders to join the campaign.

However, a Reliance ADA Group spokesperson said in a statement, "Vicious campaign of disinformation (is) underway by vicious industrial interests to stall Reliance Power IPO." - PTI

MindTree Q2 net up 21% at Rs 27cr

MindTree Consulting, the Bangalore-based provider of IT and R&D services, has registered a 21.11% increase in net profit at Rs 27.13 crore for the second quarter ended September 30, 2007 when compared with the same period of the last fiscal.

The company attributed the increase in profit to volume growth (12.7%) and pricing growth (3.4%) during the quarter under review. The company had a foreign exchange gain of Rs 3.25 crore and Rs 7.02 crore as other income from fixed term investments.

The company improved its offshore volume contribution during Q2FY08 to 72.7% from 71% in Q2FY07.

The company added 28 new clients, and deepened some existing client relationships to take its active client base to 192. Consequently, its revenues for the period went up 18.37% to Rs 181.95 crore when compared with the corresponding period of the last fiscal.

Revenue from IT services increased 20% to Rs 141 crore, and income from R&D services went up 12.3% to Rs 40.88 crore.

"We have achieved strong growth in revenue and profitability despite the continued appreciation of the rupee. In the backdrop of a strong business environment, we are confident of achieving our revenue target of $178-180 million and profit target of $22.5-22.6 million for 2007-08," Ashok Soota, chairman and managing director, MindTree, said.

MindTree increased the number of $1 million clients from 34 to 41. It recruited 784 people during the quarter to take the total number of employees to 4,896 .

The construction of MindTree’s development centre in Chennai is on schedule, and the company expects to begin occupying the centre during the third quarter of 2007-08. With a focus on further strengthening its presence in the European market, MindTree opened an office in The Hague, the Netherlands, during the quarter.

Tuesday, October 23, 2007

Foreign inflows will continue despite PN scare

Foreign fund inflows continue to remain strong even now despite the proposed clampdown on participatory notes (P-notes ) and volatility in the markets.
According to ICICI Bank managing director and CEO KV Kamath, investors still believe in the long-term growth story for India. In his view, the country will see a sustained 10% growth in GDP over the medium term, though the concerns over rising inflation have been weighing heavily on the economy.
“The strengthening rupee has been a challenge,” Mr Kamath admitted, as he called Sebi’s proposals on P-notes a step in the right direction. “The strengthening rupee is a challenge, and all tools in the monetary policy context have to be used to bring it under control ,” he pointed out. There have been foreign investments to the tune of over Rs 33,700 crore since September 18, when the US Federal Reserve had cut interest rates.
The rupee has also seen an appreciation of over 11% in the past one year. However, though attempts to curtail the massive inflows and the rise in the rupee have been made, the inflows still continue to be strong, he added. Mr Kamath went on to compare the growth phase of India to economies like Japan and China which experienced 10-15 years of sustained higher growth in GDP as well as volatility in exchange rates and inflation while they were in a similar stage of development.
“So, I would think that we are looking at 10-15 years of sustained growth rate,” he explained. Inflation may rise again, as global crude oil prices continue to rise, touching an all-time high of $90 last week. He also said that a slowdown was visible in certain sectors and that a clearer picture could be obtained only after seeing the financial results of corporates in the second quarter.
At the same time, ICICI Bank will wait for cues from the central bank’s upcoming monetary policy review before it takes any decisions on deposit rates, Mr Kamath added. But he refused to speculate on the possible outcome of the policy. The bank had recently cut interest rates on certain special deposit schemes by 50 basis points.
Mr Kamath added that ICICI Bank’s New York branch, for which it received approval from the US Federal Reserve last week, would initially focus on wholesale banking and then look at other segments.

Important NSE Notices

HCL Infosystems
HCL Infosystems Ltd has informed the Exchange regarding the consolidated Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 309176 lacs for quarter ending on 30-SEP-2007 against Rs. 278467 lacs for the quarter ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 7213 lacs for the quarter ending on 30-SEP-2007 against Rs. 6707 lacs for the quarter ending on 30-SEP-2006.
Source: NSE Date: 2007-10-22

Rolta India
Rolta India Ltd. has informed the Exchange that the Board of Directors of the company at its meeting held don October 22, 2007 has recommended (subject to the approval by the members of the Company, at their forthcoming Annual General Meeting on November 16, 2007) the Issue of Bonus Shares in the proportion of one Equity Share for every one Equity Share held by the member, on a date to be fixed by the Board, by capitalising a part of the General Reserve / Share Premium Account.
Source: NSE Date: 2007-10-22

Rolta India
Rolta India Ltd. has informed the Exchange regarding the consolidated Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 22103 lacs for quarter ending on 30-SEP-2007. Net Profit / (Loss) of Rs. 5382 lacs for the quarter ending on 30-SEP-2007.
Source: NSE Date: 2007-10-22

Rolta India
Rolta India Ltd. has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 19335 lacs for quarter ending on 30-SEP-2007. Net Profit / (Loss) of Rs. 6139 lacs for the quarter ending on 30-SEP-2007.
Source: NSE Date: 2007-10-22

KS Oils
K S Oils Limited has informed the Exchange that vide its letter dated October 22, 2007: "The Board of Directors in its Meeting of the Company held today have approved the following matters unanimously: (1) Unaudited Financial Results of the Company for the Quarter and half-year ended as on September 30, 2007 with following key highlights: Quarterly:- a) sales increase by 96% to Rs.44341 lacs; b) Net Profit Increase by 139% to Rs.2658 lacs; c) EPS raised by 163% to 1.66. Half-Yearly: a) sales increase by 83% to Rs.80955 lacs; b) Net Profit increase by 156% to Rs.5008 lacs; c) EPS raised by 137% to 2.70. (2) ESOP Scheme for its Employees/ Directors and authorize the Compensation Committee for implementation of Scheme and grant of 1,25,00,000 options to employees and directors as per SEBI (ESOS & ESPS) Guidelines, 1999. (3) Allotment of 2,30,00,000 equity shares of Rs.1/- each to promoters as per details below: a) Ramesh Chand Sourabh Kumar HUF: 1,15,00,000 equity shares of Rs.1/-each. b) Mrs Sheela Devi Garg; 1,15,00,000 equity shares of Rs.1/- each".
Source: NSE Date: 2007-10-22

Nucleus Software
Nucleus Software Exports Limited has informed the Exchange regarding a press release dated October 22, 2007, titled "Nucleus Software amongst the 200 Best Under A Billion Companies in Asia says Forbes". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

Dewan Housing Finance Corporation
Dewan Housing Finance Corporation Ltd has informed the Exchange that the Board of Directors of the Company at its meeting held on October 22, 2007 has declared an interim dividend at Rs.1.50 per share (15%) on the enhanced paid share capital for the financial year 2007-08.
Source: NSE Date: 2007-10-22

Gtl Limited has informed the Exchange regarding a press release dated October 22, 2007, titled "GTL registers a Revenue growth of 86% and Operating Profit growth of 123% on Y-o-Y basis Consolidated results for the quarter ended September 30, 2007.". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

GTL Limited has informed the Exchange regarding the consolidated Results for the half year ended on 30-SEP-2007 as follows: Net Sales of Rs. 84650 lacs for half year ending on 30-SEP-2007. Net Profit / (Loss) of Rs. 18450 lacs for the half year ending on 30-SEP-2007.
Source: NSE Date: 2007-10-22

GTL Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 43918 lacs for quarter ending on 30-SEP-2007 against Rs. 40732 lacs for the quarter ending on 30-JUN-2007. Net Profit / (Loss) of Rs. 15236 lacs for the quarter ending on 30-SEP-2007 against Rs. 3214 lacs for the quarter ending on 30-JUN-2007.
Source: NSE Date: 2007-10-22

GTL Limited has informed the Exchange regarding the standalone Results for the half year ended on 30-SEP-2007 as follows: Net Sales of Rs. 69890 lacs for half year ending on 30-SEP-2007. Net Profit / (Loss) of Rs. 6783 lacs for the half year ending on 30-SEP-2007.
Source: NSE Date: 2007-10-22

GTL Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 36264 lacs for quarter ending on 30-SEP-2007 against Rs. 33626 lacs for the quarter ending on 30-JUN-2007. Net Profit / (Loss) of Rs. 4543 lacs for the quarter ending on 30-SEP-2007 against Rs. 2240 lacs for the quarter ending on 30-JUN-2007.
Source: NSE Date: 2007-10-22

Sonata Software
Sonata Software Ltd has informed the Exchange regarding a press release dated October 22, 2007, titled "Sonata Consolidated Q2 Net at Rs.11.9 Crs up 21% Y.O.Y, Interim dividend declared 50%". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

Sonata Software
Sonata Software Ltd has informed the Exchange that Interim dividend of Re.0.50 per share (50% on par value of Re.1/-) has been declared at the Board Meeting held on October 22, 2007.
Source: NSE Date: 2007-10-22

Bpl Limited has informed the Exchange that : "The Company has allotted on 22nd October, 2007, equity shares of Rs.10/- each on preferential basis to Electro Investment Private Limited, a promoter group company, in terms of the SEBI Guidelines for Preferential Issues as under : 1) 30,00,000 equity shares of Rs. 10/- each at a premium of Rs. 33.02 per share aggregating to Rs. 12,90,60,000 and 2) 8,20,344 equity shares of Rs. 10/- each at a premium of Rs. 62.99 per share aggregating to Rs.5,98,76,908."
Source: NSE Date: 2007-10-22

JK Paper
Jk Paper Limited has informed the Exchange that "The Company has on 21st October, 2007 commenced the Commercial Production of its international quality, Multilayer Packaging Board Plant of 60,000 t.p.a. at Unit Central Pulp Mills, P.O. Central Pulp Mills-394660, Fort Songadh, District Tapi (formerly District Surat), Gujarat."
Source: NSE Date: 2007-10-22

Orient Paper and Industries
Orient Paper & Industries Ltd has informed the Exchange vide its letter dated October 22, 2007 that: "The Board of Directors of the Company at its meeting held today inter alia decided to diversify its activities into manufacturing and marketing of CFL products at an estimated investment of Rs.40 crores".
Source: NSE Date: 2007-10-22

JMT Auto
Jmt Auto Limited has informed the Exchange that: "Jmt Auto Ltd has bagged order from giant Auto and Engineering Companies like VOLVO (Sweden) for high Precision Pins, EATON (USA) for Gears, Shafts, Hydraulic Pump Shafts. JMT expects its business with international OEMS to increase by 200% by 2007-08 and 100% in year 2008-09".
Source: NSE Date: 2007-10-22

KEC Infrastructures
Kec Infrastructures Limited has informed the Exchange that the Board of Directors in its meeting held on October 22, 2007 have allotted 65,72,000 Equity Shares at a price of Rs.26.43/- per share including premium of Rs.16.43 per share to the warrant holders holding 65,72,000 Warrants allotted as on 30th March 2007, on the warrant holders exercising the option available to them to apply/subscribe for one equity share of the face value of Rs.10 each of the Company at a price of Rs.26.43/- per share, for every one warrant held by them. The details of the same shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

Gujarat State Finance Corporation
Gujarat State Financial Corporation has informed the Exchange that the Annual General Meeting of the shareholders of the Corporation will be held on November 23, 2007 to transact the following business: (1) To receive, consider and adopt the Profit and Loss Account and Balance Sheet of the Corporation for the year ended on March 31, 2007 along with Auditor's Report thereon and the report of the Board of Directors. (2) To reappoint M/s R.S. Patel & Co., Chartered Accountants, as auditors of the Corporation to hold office from the conclusion of this Annual General Meeting till the conclusion of next Annual General Meeting as recommended by RBI and to fix their remuneration. Further, the Register of Members and the share transfer books of the Corporation will remain closed from November 21, 2007 to November 23, 2007 (both days inclusive) for the purpose of Annual General Meeting.
Source: NSE Date: 2007-10-22

Triveni Engineering
Triveni Engineering & Industries Limited has informed the Exchange regarding a press release dated October 22, 2007, titled "GE Oil & Gas and Triveni Engineering sign Agreement to Tap the fast growing high speed Reciprocating Compressor Market in India". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

Ranbaxy Laboratories
Ranbaxy Laboratories Ltd has informed the Exchange regarding a press release dated October 22, 2007, titled "Ranbaxy receives approval to market Ran (R)-Lisinopril in Canada". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

Karuturi Networks
Karuturi Networks Limited has informed the Exchange that: "Karuturi Networks Ltd on 19.10.2007 has completed all formalities leading to acquisitions of infrastructure and management control of Sher Agencies Ltd, Kenya. With this acquisition, Karuturi Networks Ltd has emerged as the worlds largest producer and exporter of roses. Karuturi Roses are available in Africa, USA, Europe, Middle East, Far East Asia, Australia and New Zealand. This acquisition renders Karuturi Networks as the truly Multi National and fully integrated company in India in the field of agriculture. Mr. Sai Ramakrishna Karuturi and Mr. Srinivas Rao Karuturi are appointed as the Director of Sher Agencies Ltd, Kenya after the existing directors of the company stepped down following the acquisition. The new Board of Directors have proposed to rename the company as Sher Karuturi Ltd.".
Source: NSE Date: 2007-10-22

Parsvnath Developers
Parsvnath Developers Limited has informed the Exchange regarding a press release dated October 22, 2007, titled "Parsvnath launches Royale Villas at Jodhpur". A copy of the press release shall be available on the NSE website ( under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
Source: NSE Date: 2007-10-22

LIC Housing Finance
LIC Housing Finance Ltd has informed the Exchange regarding the standalone Results for the half year ended on 30-SEP-2007 as follows: Net Sales of Rs. 96546 lacs for half year ending on 30-SEP-2007 against Rs. 71006 lacs for the half year ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 16307 lacs for the half year ending on 30-SEP-2007 against Rs. 11339 lacs for the half year ending on 30-SEP-2006.
Source: NSE Date: 2007-10-22

LIC Housing Finance
LIC Housing Finance Ltd has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 51255 lacs for quarter ending on 30-SEP-2007 against Rs. 37726 lacs for the quarter ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 11637 lacs for the quarter ending on 30-SEP-2007 against Rs. 7593 lacs for the quarter ending on 30-SEP-2006.
Source: NSE Date: 2007-10-22

Foseco India
Foseco India Ltd has informed the Exchange that the Board of Directors at the meeting held on October 22, 2007 has declared a third interim dividend of Rs.3/- per equity share of Rs.10/- to the shareholders whose names appear on the Register of Members on November 02, 2007. In addition to the year-to-date cumulative interim dividend of 70%, this declaration brings the cumulative interim dividend to 100%.
Source: NSE Date: 2007-10-22

India Cements
India Cements Ltd. has informed the Exchange regarding the standalone Results for the half year ended on 30-SEP-2007 as follows: Net Sales of Rs. 172183 lacs for half year ending on 30-SEP-2007 against Rs. 115249 lacs for the half year ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 40605 lacs for the half year ending on 30-SEP-2007 against Rs. 22991 lacs for the half year ending on 30-SEP-2006.
Source: NSE Date: 2007-10-22

India Cements
India Cements Ltd. has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2007 as follows: Net Sales of Rs. 89023 lacs for quarter ending on 30-SEP-2007 against Rs. 59067 lacs for the quarter ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 22265 lacs for the quarter ending on 30-SEP-2007 against Rs. 11732 lacs for the quarter ending on 30-SEP-2006.
Source: NSE Date: 2007-10-22

ILandFS Investment Managers
Il&Fs Investment Managers Limited has informed the Exchange that: "In view of Bank of India ceasing to be a shareholder of the Company, they have withdrawn the nomination of their Nominee Directors viz. Mr Rajaraman Viswanathan and Mr. Narendra Prasad as Directors on the Board of the Company".
Source: NSE Date: 2007-10-22