Mitali Rajput
Mohit Kumar
Monika Jhamb
Group - 13 (Section - I)
SOLAR MISSION HITS FINANCE WALL
India’s solar power mission which envisages investments of about Rs 3 lakh crore by 2022, a key component of the national action plan on climate change, has been put in serious jeopardy by bankers loath to lend to solar projects.
Public sector banks and financial institutions says that they have no way to assess the commercial viability of these projects and would tread warily.
Bankers want to know who will compensate for the short fall if these plants fail to achieve minimum load factor.
the government is meeting bankers and solar power developers on Tuesday to discuss ways to finance solar projects.
A Oriental Bank of Commerce official said, If the government gives subsidy in the form of higher tariffs,then these projects could become a little easier to finance.
2) CWG GRAPH REPORT IN 3 MONTHS; OC TENURE EXTENDED
The government extended the tenure of the officials in the CWG organising committee (OC) to helping the investigations of the controversial Commonwealth Games and related projects within three months.
3) RISE IN OPERATING MARGIN HELPS L&T LOG HIGHER NET
Larsen & Toubro (L&T) on Monday posted a profit after tax of Rs 765 crore for the second quarter ended September 30,2010, an increase of 18% compared to Rs 580.4 crore in the corresponding period of the previous year.
a cumulative growth of L&T was 29% during the first half of the current year. The order book as on September 30, 2010, was1,15,393 crore.
4)COAL INDIA’S IPO SUBSCRIBED 34%; BIG FIIS YET TO APPLY
Rs15,000-crore initial public offering(IPO)of Coal India (CIL) got off to a reasonably good start with more than a third of the issue being subscribed to on the opening day by the foreign institutional investors.
In coal India, another institutionals like QIB quota subscribed 63%, HNI18%and retail investors 10%
5)SBI GETS APPLICATIONS WORTH RS 5,000 CRORE FOR RETAIL BONDS
State bank of India received applications worth Rs5,000 crore in response to its retail bond issue through which it had planned to collect only Rs1,000 crore.
SBI had approved raising tierII capital by way of a public issue of lower tier-II bonds for an amount of Rs 500 crore with an option to retain 100% over subscription.
The bonds have been rated AAA by Crisil and have a face value of Rs10,000 and do not carry tax-break like infrastructure bonds offered by IDFC, L&T Infra and IFCI,which offered lower coupon rate.
6)DEMAND -SUPPLY GAP TO KEEP ONION PRICE ON HIGHER SIDE
Steady demand because of ongoing festive seasons and less than adequate arrivals have led to wholesale onion price stabilised at Rs 1,600-1,700 per quint at present against Rs700 prevailed
just two months back.
7)TIGHT CONTROL OVER IPHONE SOFTWARE MAY HURT APPLE
Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year,Android will have erased the iPhone’s once
enormous lead in the high end of the smart phone market.
Tuesday, October 19, 2010
19th October - BUSINESS STANDARD
Nidhi Mishra
Namrata Medhi
Neeraj Kumar Singh
Section - G
DEUTSCHE POSTBANK ARM FOR SALE
1) The Indian piece, known as deutsche postbank home finance ltd (DPHF) has been identified as a non – crore assets is therefore being sold
2) Tata, L&T finance, India bulls & religare have evinced interest in the asset
3) At 0.77% the company clame to have reported one of the lowest gross non performing asset in the industry last fiscal
4) DPHF’s net worth is estimated at rs 500 crore
COAL INDIA’S IPO SUBSCRIBED 34%
1) The much awaited initial public offer (IPO) of coal india limited open for subscription today and was subscribed 34 % on the first day
2) The portion reserved for institutional investors has been subscribed 63% with bids received
For 178.06 million shares , of which FIIs accounted for 155.54 million shares in domestic institutions , excluding mutual funds put in bids for 22.45 million shares .
3) Mean while , the retail segment has been subscribed 10%,while that reserved for high net worth individuals has been subscribed 18%
L&T NET PROFIT RISES BY 32% AT RS 765 CRORE
1) Engineering major Larsen and turbo today posted a 32% growth in net profit at 765 crore for the second quarter compare to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18% to Rs 9260 crore from Rs 7866 in the same quarter last year. The company operating margins for the quarter stood at 10.8% as compared to 10.6 %
2) After excluding the reversal of provision made for Satyam, that accounts to Rs. 71 Crore, the net profit of the company grew by 22 % on a year –on –year basis.
3) L&T which has filed a draft red herring prospectus for its financial services business with the regulator, said it plans to go an IPO before the end of its calendar year
DTH FIRMS SMARTLY PROJECT LOW PRICE
1) Dish TV launched its Diwali offer STB at Rs 990 (Rs. 200 for installation) and recharge voucher worth Rs 990 free.
2) The company introduced 4 new packages on Monday ,with a movie –on –demand pack ,a recharge voucher priced at Rs 360 each, an a-la-carte voucher at Rs. 225 and an upgrade voucher Rs 45
3) Subscribers are forced to pay for content that they don’t watch or often do not understand.
BJP DEMANDS JOINT PARLIAMENTARY PROBE INTO CWG MESS
1) BJP has demanded a joint parliamentary committee to look into the alleged corruption charges in organizing the event
2) Party president Mr. Nitin gadkari had asked senior leaders for a plan on how the corruption issue could be raised in the parliament.
3) The BJP would not accept any action by the government because all the three agencies –the delhi government ,organizing committee and union government – where equally guilty of corruption
BP TO NET $1.8 BILLION FROM ASSET SALES
1) BP PLC agreed to sell assets in Venezuela & Vietnam to Russian oil venture TNK-BP for $1.8 billion as it raises money to help pay for the gulf of Mexico oil spill.
2) Bp, which own the TNK venture 50-50 with a group of Russian billionaires, will book the cash in full, London, based spokesman Mark Salt said.
3) BP has sold this year two more than $11 billion. It sold $7 billion of fields in the U.S, Canada & Egypt to Apache Corp.
CITI $ 2.2 BILLIONS Q3 PROFIT FUELS SECTOR CONFIDENCE
1) Citigroup Inc. reported its third straight quarterly profit, beating forecast & boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion
2) The gain in Citigroup shares helped fuel a broader rally in bank shares & lift U.S stock indexes.
3) Citigroup the third largest U.S bank by assets, also said it is looking at the home loans it bundled into bonds & sold to investors to make sure the paper work is in order.
HDFC NET UP 22%
1) Housing development finance corporation(HDFC), India’s biggest non-bank mortgage lender, has posted a net profit of Rs. 807.54 Crore in the quarter ended September, a 22% rise over Rs. 663.94 Crore in the corresponding period last year
2) The annual growth in the loan book, inclusive of loan sold, was 24%.
3) Net interest margin-the difference between the yield on loans & the cost of fund-was about 4.3% against 4% in the previous quarter.
4) For the second quarter, HDFC’s total assets stood at Rs. 126356 Crore, against Rs. 104545 Crore last year, thus registering 21% growth.
OBAMA VISIT TO HERALD A NEW RELATIONSHIP: SUMMERS
1) Just before U.S president Barack Obama’s maiden state visit to India, his top economic advisor, Lawrence H Summers, today said that the visit would be the “longest” & a different kind of a trip.
2) The Indian-U.S relationship would be more significant than befor in the coming century
3) The dates of Obama’s trip have not been announced yet, he is expected to be in India from November 5-9. Making his longest overseas stay in a country as a president of U.S.A.
4) Accompanied by the first lady, Michelle Obama, this would be her first visit to India.
Namrata Medhi
Neeraj Kumar Singh
Section - G
DEUTSCHE POSTBANK ARM FOR SALE
1) The Indian piece, known as deutsche postbank home finance ltd (DPHF) has been identified as a non – crore assets is therefore being sold
2) Tata, L&T finance, India bulls & religare have evinced interest in the asset
3) At 0.77% the company clame to have reported one of the lowest gross non performing asset in the industry last fiscal
4) DPHF’s net worth is estimated at rs 500 crore
COAL INDIA’S IPO SUBSCRIBED 34%
1) The much awaited initial public offer (IPO) of coal india limited open for subscription today and was subscribed 34 % on the first day
2) The portion reserved for institutional investors has been subscribed 63% with bids received
For 178.06 million shares , of which FIIs accounted for 155.54 million shares in domestic institutions , excluding mutual funds put in bids for 22.45 million shares .
3) Mean while , the retail segment has been subscribed 10%,while that reserved for high net worth individuals has been subscribed 18%
L&T NET PROFIT RISES BY 32% AT RS 765 CRORE
1) Engineering major Larsen and turbo today posted a 32% growth in net profit at 765 crore for the second quarter compare to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18% to Rs 9260 crore from Rs 7866 in the same quarter last year. The company operating margins for the quarter stood at 10.8% as compared to 10.6 %
2) After excluding the reversal of provision made for Satyam, that accounts to Rs. 71 Crore, the net profit of the company grew by 22 % on a year –on –year basis.
3) L&T which has filed a draft red herring prospectus for its financial services business with the regulator, said it plans to go an IPO before the end of its calendar year
DTH FIRMS SMARTLY PROJECT LOW PRICE
1) Dish TV launched its Diwali offer STB at Rs 990 (Rs. 200 for installation) and recharge voucher worth Rs 990 free.
2) The company introduced 4 new packages on Monday ,with a movie –on –demand pack ,a recharge voucher priced at Rs 360 each, an a-la-carte voucher at Rs. 225 and an upgrade voucher Rs 45
3) Subscribers are forced to pay for content that they don’t watch or often do not understand.
BJP DEMANDS JOINT PARLIAMENTARY PROBE INTO CWG MESS
1) BJP has demanded a joint parliamentary committee to look into the alleged corruption charges in organizing the event
2) Party president Mr. Nitin gadkari had asked senior leaders for a plan on how the corruption issue could be raised in the parliament.
3) The BJP would not accept any action by the government because all the three agencies –the delhi government ,organizing committee and union government – where equally guilty of corruption
BP TO NET $1.8 BILLION FROM ASSET SALES
1) BP PLC agreed to sell assets in Venezuela & Vietnam to Russian oil venture TNK-BP for $1.8 billion as it raises money to help pay for the gulf of Mexico oil spill.
2) Bp, which own the TNK venture 50-50 with a group of Russian billionaires, will book the cash in full, London, based spokesman Mark Salt said.
3) BP has sold this year two more than $11 billion. It sold $7 billion of fields in the U.S, Canada & Egypt to Apache Corp.
CITI $ 2.2 BILLIONS Q3 PROFIT FUELS SECTOR CONFIDENCE
1) Citigroup Inc. reported its third straight quarterly profit, beating forecast & boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion
2) The gain in Citigroup shares helped fuel a broader rally in bank shares & lift U.S stock indexes.
3) Citigroup the third largest U.S bank by assets, also said it is looking at the home loans it bundled into bonds & sold to investors to make sure the paper work is in order.
HDFC NET UP 22%
1) Housing development finance corporation(HDFC), India’s biggest non-bank mortgage lender, has posted a net profit of Rs. 807.54 Crore in the quarter ended September, a 22% rise over Rs. 663.94 Crore in the corresponding period last year
2) The annual growth in the loan book, inclusive of loan sold, was 24%.
3) Net interest margin-the difference between the yield on loans & the cost of fund-was about 4.3% against 4% in the previous quarter.
4) For the second quarter, HDFC’s total assets stood at Rs. 126356 Crore, against Rs. 104545 Crore last year, thus registering 21% growth.
OBAMA VISIT TO HERALD A NEW RELATIONSHIP: SUMMERS
1) Just before U.S president Barack Obama’s maiden state visit to India, his top economic advisor, Lawrence H Summers, today said that the visit would be the “longest” & a different kind of a trip.
2) The Indian-U.S relationship would be more significant than befor in the coming century
3) The dates of Obama’s trip have not been announced yet, he is expected to be in India from November 5-9. Making his longest overseas stay in a country as a president of U.S.A.
4) Accompanied by the first lady, Michelle Obama, this would be her first visit to India.
19th October - BUSINESS STANDARD
Ashish Dutt
Arundeep Kaur
Section G
Group 4
Coal India's $3.5 bn IPO fully covered
On Second Day of the offer, Coal India's (CIL) initial public offer (IPO), expected to raise as much as $3.5 billion, was fully covered Today[19-Oct-2010]. The offering, the largest in India's corporate history, had received bids for over 637 million shares by 1000 GMT, according to exchange data, with foreign institutional investors putting in huge bids.
Coal India is selling more than 631.6 million shares in its IPO.
L&T net profit rises by 32% at Rs 765 crore(18% Growth)
Engineering major - Larsen and Toubro today posted a 32 per cent growth in net profit at Rs 765 crore for the second quarter, compared to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18 per cent to Rs 9,260 crore from Rs 7,866 crore in the same quarter last year. The company’s operating margins for the quarter stood at 10.8 per cent as compared to 10.6 per cent.
Bajaj Auto Sept qtr net jumps 69% to Rs 682 cr
Bajaj Auto today reported 69.32 per cent jump in its net profit for the quarter ending September 30 at Rs 682.08 crore – its highest ever quarterly motorcycle sales. The total income of the company during the second quarter of this fiscal stood at Rs 4,341.82 crore compared to Rs 2,887.51 crore in the year-ago period, up 50.37 per cent.
Gold regains 20k level on seasonal demand
Gold prices surged by Rs 135 to Rs 20,085 per ten grams in the national capital today on emergence of frantic buying by stockists and jewellers to meet ongoing festival and marriage season demand.
Gold is just Rs 35 short of the Rs 20,120 per ten grams record last seen on October 15.
Silver spurted by Rs 575 to its record high of Rs 37,000 per kg on hectic buying by industrial units and coin makers for the auspicious festival of 'Diwali.'
Biocon in $200-m pact with Pfizer
Biocon(Producer of insulin product: recombinant human insulin, glargine, aspart and lispro) has struck a $200-million deal with Pfizer, which will see the US pharmaceutical multinational sell the Bangalore-headquartered biotechnology company’s insulin products globally. Under the present deal, Biocon will clinically develop, manufacture and supply these biosimilars and assume responsibility for obtaining necessary approvals in various geographies. Pfizer will market these products in the designated geographies.
RIL's 4 trans-country gas lines well behind schedule
Reliance Industries Ltd’s (RIL) four gas pipelines are likely to be delayed. Envisaged with an investment of Rs 20,000 crore, these were scheduled to be completed by 2012.
The ministry of petroleum and natural gas had, in 2007, issued authorisation to Reliance Gas Transportation Infrastructure Ltd, an RIL group company, for four trunk pipelines :
1. Kakinada-Haldia (1,100 km)
2. Kakinada-Chennai (445 km)
3. Chennai-Bangalore-Mangalore (600 km)
4. Chennai-Tuticorin (670 km).
Infiniti Retail eyes Rs 1,700 cr turnover in FY11
Tata Sons subsidiary Infiniti Retail today said it is targeting an over 65 per cent growth in turnover to touch Rs 1,700 crore in the current fiscal, as it plans to enter new geographies and expand reach. The company that operates 56 'Croma' branded stores, sell a range of consumer electronics, appliances and IT products will invest about Rs 40 crore by March next year to have a total of 75 stores. It also plans to launch its own branded computers and notepads.
Infiniti Retail CEO and Managing Director: Ajit Joshi stated that; Croma is targeting a turnover of Rs 1,700 crore in the current fiscal, up from Rs 1,021 crore last year. The company will also invest up to Rs 40 crore on store expansion, also that label 'Croma' contributes between 6-8 per cent to the total sales, which he hopes will go up to ten per cent by March-end.
US lawsuit could delay VW takeover of Porsche
The head of VW, Martin Winterkorn said that; “US lawsuits brought by pension funds might delay but not prevent Volkswagen's takeover of the luxury German sportscar maker Porsche”
Porsche took on heavy debt as it tried to buy the much bigger VW but then had to be saved in turn by Europe's biggest automaker, which now owns 49.9 per cent of Porsche. VW expects to complete the takeover and make Porsche the VW group's 10th brand.
Arundeep Kaur
Section G
Group 4
Coal India's $3.5 bn IPO fully covered
On Second Day of the offer, Coal India's (CIL) initial public offer (IPO), expected to raise as much as $3.5 billion, was fully covered Today[19-Oct-2010]. The offering, the largest in India's corporate history, had received bids for over 637 million shares by 1000 GMT, according to exchange data, with foreign institutional investors putting in huge bids.
Coal India is selling more than 631.6 million shares in its IPO.
L&T net profit rises by 32% at Rs 765 crore(18% Growth)
Engineering major - Larsen and Toubro today posted a 32 per cent growth in net profit at Rs 765 crore for the second quarter, compared to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18 per cent to Rs 9,260 crore from Rs 7,866 crore in the same quarter last year. The company’s operating margins for the quarter stood at 10.8 per cent as compared to 10.6 per cent.
Bajaj Auto Sept qtr net jumps 69% to Rs 682 cr
Bajaj Auto today reported 69.32 per cent jump in its net profit for the quarter ending September 30 at Rs 682.08 crore – its highest ever quarterly motorcycle sales. The total income of the company during the second quarter of this fiscal stood at Rs 4,341.82 crore compared to Rs 2,887.51 crore in the year-ago period, up 50.37 per cent.
Gold regains 20k level on seasonal demand
Gold prices surged by Rs 135 to Rs 20,085 per ten grams in the national capital today on emergence of frantic buying by stockists and jewellers to meet ongoing festival and marriage season demand.
Gold is just Rs 35 short of the Rs 20,120 per ten grams record last seen on October 15.
Silver spurted by Rs 575 to its record high of Rs 37,000 per kg on hectic buying by industrial units and coin makers for the auspicious festival of 'Diwali.'
Biocon in $200-m pact with Pfizer
Biocon(Producer of insulin product: recombinant human insulin, glargine, aspart and lispro) has struck a $200-million deal with Pfizer, which will see the US pharmaceutical multinational sell the Bangalore-headquartered biotechnology company’s insulin products globally. Under the present deal, Biocon will clinically develop, manufacture and supply these biosimilars and assume responsibility for obtaining necessary approvals in various geographies. Pfizer will market these products in the designated geographies.
RIL's 4 trans-country gas lines well behind schedule
Reliance Industries Ltd’s (RIL) four gas pipelines are likely to be delayed. Envisaged with an investment of Rs 20,000 crore, these were scheduled to be completed by 2012.
The ministry of petroleum and natural gas had, in 2007, issued authorisation to Reliance Gas Transportation Infrastructure Ltd, an RIL group company, for four trunk pipelines :
1. Kakinada-Haldia (1,100 km)
2. Kakinada-Chennai (445 km)
3. Chennai-Bangalore-Mangalore (600 km)
4. Chennai-Tuticorin (670 km).
Infiniti Retail eyes Rs 1,700 cr turnover in FY11
Tata Sons subsidiary Infiniti Retail today said it is targeting an over 65 per cent growth in turnover to touch Rs 1,700 crore in the current fiscal, as it plans to enter new geographies and expand reach. The company that operates 56 'Croma' branded stores, sell a range of consumer electronics, appliances and IT products will invest about Rs 40 crore by March next year to have a total of 75 stores. It also plans to launch its own branded computers and notepads.
Infiniti Retail CEO and Managing Director: Ajit Joshi stated that; Croma is targeting a turnover of Rs 1,700 crore in the current fiscal, up from Rs 1,021 crore last year. The company will also invest up to Rs 40 crore on store expansion, also that label 'Croma' contributes between 6-8 per cent to the total sales, which he hopes will go up to ten per cent by March-end.
US lawsuit could delay VW takeover of Porsche
The head of VW, Martin Winterkorn said that; “US lawsuits brought by pension funds might delay but not prevent Volkswagen's takeover of the luxury German sportscar maker Porsche”
Porsche took on heavy debt as it tried to buy the much bigger VW but then had to be saved in turn by Europe's biggest automaker, which now owns 49.9 per cent of Porsche. VW expects to complete the takeover and make Porsche the VW group's 10th brand.
19th October - ECONOMIC TIMES
Medha
Mansha Singh
Section - E
ECONOMY:
Hydrocarbon,infra sector defers Rs 40K cr worth projects in Q2
MUMBAI: Diversified group, Larsen & Toubro (L&T), today said that the Indian industry, mainly hydrocarbon and infrastructure , have deferred Rs 40,000 crore worth projects in Q2 FY 11.
Large contracts sometimes get deferred as the decision-making process is long. Lots of orders have been pushed towards Q4 FY 11, he said. However, there will be no major impact on L&T's performance as these orders are not cancelled and there are enough indications of orders fructifying in the remaining two quarters of current fiscal, Deosthalee said.The company said new orders rose 11 per cent in the quarter ended September from a year ago and said it expected to maintain its growth momentum in the medium-term. L&T's order back-log stood at Rs 1.15 trillion as of end-September. An eighty per cent of postponement of orders are in the domestic and 20 per cent in the international market, he said.
FINANCE:
Microfinance, macro problems?
Is it possible to make money while helping people out of poverty? In the last five years or so, one business, microfinance, seemed to suggest that the answer was yes. Look at the numbers: from merely $12 million in 2003, the market for lending tiny amounts of money mainly to groups of women has grown to more than $7 billion now. And analysts expect this to grow to a staggering $50 billion soon.It’s easy to understand why. Many people in rural India don’t have access to loans from formal banks. In any case, procedures are cumbersome, paperwork intimidating. That explains why people go to moneylenders, who charge them upwards of 50% for loans. Microfinance, based on a model borrowed from Bangladesh, was supposed to change all that.Micro-credit institutions would make small loans to groups of women at rates lower than what moneylenders charge. These would go into productive investments and defaults would be kept low because the entire community, or a group of women borrowers, would keep an eye on each other to make sure that the funds were used properly and repayments were on time.Today, it’s reckoned that women’s selfhelp groups (SHGs) reach about 50 million people. Another 20 million are covered by microfinance institutions (MFIs). That leaves about 100 million people who still rely on moneylenders or relatives for loans. That’s a huge untapped market, which explains why analysts are falling over each other to talk up microfinance.A few months ago, India’s largest micro-credit company, SKS Microfinance, had a hugely successful listing. But now, the whole micro-credit story seems to be fraying at the edges. And that’s even if you discount the churn at the top in SKS. What’s worrying many people is whether it’s possible to keep poor borrowers happy while growing profits fast enough to keep shareholders smiling as well.
MARKET:
Refining profits in cooking oil and sugar
All petroleum refineries make money by buying crude oil low and selling the final products for as much as possible. The really smart ones do the actual refining so cheaply that they always make money, no matter at what price they buy crude and sell the oil. Efficient refining lets oil companies survive in the cut-throat global market. So, why are Indian cooking oil and sugar companies now queuing up to take notes? ET helps you join the dots.For cooking oil companies, refining margin lies at the heart of the business model. There is a cost to turning crude palm oil (CPO) into refined palm oil that we can consume. Malaysia and Indonesia, the world’s two biggest palm oil producers, export both CPO and refined oil. The price difference between the two is equal to the processing cost of their best refineries that exploit economies of scale and supply-chain management to perform this task most efficiently.
India is already the world’s largest palm oil consumer and imports will continue apace. So, refiners have assured demand. Moreover, oils extracted from homegrown mustard, soya and groundnut are always more expensive than palm oil. So, local competition is zero.
POLITICS/NATION
Tax sleuths conduct search operations on CWG contractors
NEW DELHI: Officials of the Income Tax Department on Tuesday started search and investigative operations in at least 25 premises of companies and individuals who won lucrative contracts for the just-concluded Commonwealth Games. Among those whose premises were visited by the tax sleuths was senior leader of the opposition Bharatiya Janata Party (BJP) Sudhanshu Mittal, whose close relatives had won some Games contracts, a senior official of the department said.
The development follows a host of measures announced by the government since the 12-day Games drew to a close Oct 14 to look into allegations of misappropriation of funds and questionable procedures followed for award of contracts for various projects.
Pakistan rejects report about Bin Laden's presence on its soil
KABUL: Pakistan has rejected the report that the world's most wanted terrorists and Al-Qaeda's top leaders Osama bin Laden and his deputy Ayman al-Zawahiri have been living comfortably in the country's northwest region. "I categorically deny the report about the presence of Osama bin Laden or Ayman Al Zawahiri or even Mullah Omar in Pakistan," the Dawn quoted Interior Minister Rehman Malik, as saying to reporters. "Bin Laden... and all other terrorists are anti-Islam and anti-Pakistan and hired assassins. If we have any information we will take action against them," he added.
INDUSTRY
Vodafone leads race for Gujarat CUG deal
· AHMEDABAD: The country’s largest cellular service provider Bharti Airtel and telecom giant Vodafone Essar are in the final race for the prestigious bid to connect 3.75-lakh Gujarat government employees in the country’s largest closed user group (CUG) network. However, state government sources say, Vodafone is leading the tally with overall 91 points, followed by Airtel’s 79.5 points, Tata’s 55 points, BSNL’s 50 points and Idea’s 40 points. On Monday, the Gujarat administration department (GAD) opened financial bids that carries 40% weightage, a week after it opened the technical bids. The latest bid saw Airtel going for a kill by proposing the lowest tariff, over 40% discount to the base rates, beating Vodafone and Tata that offered 35% discount, Idea 30%, and BSNL 20%.
· SENSEX20290.48 121.59
· NIFTY6082.50 6.55
· INR-USD44.29 -0.87
· GOLD (Rs/10g.)19948.00 58.00
Stock exchange showed data that state run coal india's IPO which was expected to raise as much as $3.5 billion,was fully covered on tuesday i.e.the second day of the offer.BJP President Nitin Gadkari has asked for CBI investigation regarding giving the approval of the 'inflated budget'of various games projects by the PMO and Union Cabinet(these budgets were not verified).State owned Bharat Petroleum Corporation Ltd(BPCL) on tuesday said it has made a second natural gas discovery in a block off Mozambique but did not give the scale of reserves the finds may hold.Gold prices surged by rupees 135 to rupees 20,085 per ten grams in delhi today on emergence of frantic buying by stockists.SBI's public bond issue was subscribed 17.3 times and the country's biggest lender intends to close the issue on wednesday.Nifty ended at 6011.10,down 64.85 points or 1.07%.Bombay stock exchange's Sensex closed at 19929.08,down 239.81 points or 1.19%.Sun tv founder Kalanithi Maran and his unlisted aviation firm,Kal Airways Pvt.Ltd.,acquired an additional 9.22 million shares,or 2.28% in low cost carrier Spice Jet.Rajasthan Royals has alleged that BCCI was yet to pay them rupees 40 crore due from IPL 2 and 3.Technology giant Apple Inc has reported a 70% jump in net profit to $4.3 billion in the fourth quarter of the year,driven by robust sales of iPhones,iPads and Mac computers.According to the US Border Patrol figures,the number of Indian nationals entering illegally via Mexico has shot up from 204 in 2009 to 975 in 2010,a 475% increase.Now we can play Kaun Banega Crorepati online.
Mansha Singh
Section - E
ECONOMY:
Hydrocarbon,infra sector defers Rs 40K cr worth projects in Q2
MUMBAI: Diversified group, Larsen & Toubro (L&T), today said that the Indian industry, mainly hydrocarbon and infrastructure , have deferred Rs 40,000 crore worth projects in Q2 FY 11.
Large contracts sometimes get deferred as the decision-making process is long. Lots of orders have been pushed towards Q4 FY 11, he said. However, there will be no major impact on L&T's performance as these orders are not cancelled and there are enough indications of orders fructifying in the remaining two quarters of current fiscal, Deosthalee said.The company said new orders rose 11 per cent in the quarter ended September from a year ago and said it expected to maintain its growth momentum in the medium-term. L&T's order back-log stood at Rs 1.15 trillion as of end-September. An eighty per cent of postponement of orders are in the domestic and 20 per cent in the international market, he said.
FINANCE:
Microfinance, macro problems?
Is it possible to make money while helping people out of poverty? In the last five years or so, one business, microfinance, seemed to suggest that the answer was yes. Look at the numbers: from merely $12 million in 2003, the market for lending tiny amounts of money mainly to groups of women has grown to more than $7 billion now. And analysts expect this to grow to a staggering $50 billion soon.It’s easy to understand why. Many people in rural India don’t have access to loans from formal banks. In any case, procedures are cumbersome, paperwork intimidating. That explains why people go to moneylenders, who charge them upwards of 50% for loans. Microfinance, based on a model borrowed from Bangladesh, was supposed to change all that.Micro-credit institutions would make small loans to groups of women at rates lower than what moneylenders charge. These would go into productive investments and defaults would be kept low because the entire community, or a group of women borrowers, would keep an eye on each other to make sure that the funds were used properly and repayments were on time.Today, it’s reckoned that women’s selfhelp groups (SHGs) reach about 50 million people. Another 20 million are covered by microfinance institutions (MFIs). That leaves about 100 million people who still rely on moneylenders or relatives for loans. That’s a huge untapped market, which explains why analysts are falling over each other to talk up microfinance.A few months ago, India’s largest micro-credit company, SKS Microfinance, had a hugely successful listing. But now, the whole micro-credit story seems to be fraying at the edges. And that’s even if you discount the churn at the top in SKS. What’s worrying many people is whether it’s possible to keep poor borrowers happy while growing profits fast enough to keep shareholders smiling as well.
MARKET:
Refining profits in cooking oil and sugar
All petroleum refineries make money by buying crude oil low and selling the final products for as much as possible. The really smart ones do the actual refining so cheaply that they always make money, no matter at what price they buy crude and sell the oil. Efficient refining lets oil companies survive in the cut-throat global market. So, why are Indian cooking oil and sugar companies now queuing up to take notes? ET helps you join the dots.For cooking oil companies, refining margin lies at the heart of the business model. There is a cost to turning crude palm oil (CPO) into refined palm oil that we can consume. Malaysia and Indonesia, the world’s two biggest palm oil producers, export both CPO and refined oil. The price difference between the two is equal to the processing cost of their best refineries that exploit economies of scale and supply-chain management to perform this task most efficiently.
India is already the world’s largest palm oil consumer and imports will continue apace. So, refiners have assured demand. Moreover, oils extracted from homegrown mustard, soya and groundnut are always more expensive than palm oil. So, local competition is zero.
POLITICS/NATION
Tax sleuths conduct search operations on CWG contractors
NEW DELHI: Officials of the Income Tax Department on Tuesday started search and investigative operations in at least 25 premises of companies and individuals who won lucrative contracts for the just-concluded Commonwealth Games. Among those whose premises were visited by the tax sleuths was senior leader of the opposition Bharatiya Janata Party (BJP) Sudhanshu Mittal, whose close relatives had won some Games contracts, a senior official of the department said.
The development follows a host of measures announced by the government since the 12-day Games drew to a close Oct 14 to look into allegations of misappropriation of funds and questionable procedures followed for award of contracts for various projects.
Pakistan rejects report about Bin Laden's presence on its soil
KABUL: Pakistan has rejected the report that the world's most wanted terrorists and Al-Qaeda's top leaders Osama bin Laden and his deputy Ayman al-Zawahiri have been living comfortably in the country's northwest region. "I categorically deny the report about the presence of Osama bin Laden or Ayman Al Zawahiri or even Mullah Omar in Pakistan," the Dawn quoted Interior Minister Rehman Malik, as saying to reporters. "Bin Laden... and all other terrorists are anti-Islam and anti-Pakistan and hired assassins. If we have any information we will take action against them," he added.
INDUSTRY
Vodafone leads race for Gujarat CUG deal
· AHMEDABAD: The country’s largest cellular service provider Bharti Airtel and telecom giant Vodafone Essar are in the final race for the prestigious bid to connect 3.75-lakh Gujarat government employees in the country’s largest closed user group (CUG) network. However, state government sources say, Vodafone is leading the tally with overall 91 points, followed by Airtel’s 79.5 points, Tata’s 55 points, BSNL’s 50 points and Idea’s 40 points. On Monday, the Gujarat administration department (GAD) opened financial bids that carries 40% weightage, a week after it opened the technical bids. The latest bid saw Airtel going for a kill by proposing the lowest tariff, over 40% discount to the base rates, beating Vodafone and Tata that offered 35% discount, Idea 30%, and BSNL 20%.
· SENSEX20290.48 121.59
· NIFTY6082.50 6.55
· INR-USD44.29 -0.87
· GOLD (Rs/10g.)19948.00 58.00
Stock exchange showed data that state run coal india's IPO which was expected to raise as much as $3.5 billion,was fully covered on tuesday i.e.the second day of the offer.BJP President Nitin Gadkari has asked for CBI investigation regarding giving the approval of the 'inflated budget'of various games projects by the PMO and Union Cabinet(these budgets were not verified).State owned Bharat Petroleum Corporation Ltd(BPCL) on tuesday said it has made a second natural gas discovery in a block off Mozambique but did not give the scale of reserves the finds may hold.Gold prices surged by rupees 135 to rupees 20,085 per ten grams in delhi today on emergence of frantic buying by stockists.SBI's public bond issue was subscribed 17.3 times and the country's biggest lender intends to close the issue on wednesday.Nifty ended at 6011.10,down 64.85 points or 1.07%.Bombay stock exchange's Sensex closed at 19929.08,down 239.81 points or 1.19%.Sun tv founder Kalanithi Maran and his unlisted aviation firm,Kal Airways Pvt.Ltd.,acquired an additional 9.22 million shares,or 2.28% in low cost carrier Spice Jet.Rajasthan Royals has alleged that BCCI was yet to pay them rupees 40 crore due from IPL 2 and 3.Technology giant Apple Inc has reported a 70% jump in net profit to $4.3 billion in the fourth quarter of the year,driven by robust sales of iPhones,iPads and Mac computers.According to the US Border Patrol figures,the number of Indian nationals entering illegally via Mexico has shot up from 204 in 2009 to 975 in 2010,a 475% increase.Now we can play Kaun Banega Crorepati online.
19th October - BUSINESS LINE
Mohit Sharma
Menguphrezo
Mohd. Aamir
Group - 13 (Section - F)
1)Panel majority for scrapping eco nod to Posco's Orissa project -
Three members were of a govt. Panel proposed to review green clearence to its steel project in orissa and have recommened that “final forest and envirnment clearences be rewoked forthwith”. South korien steel maker proposes to set up a 12million ton per year intigrative steel plant and a captive port in orissa with an estimated investment of Rs.54,000 cr.
In a joint report of three members felt the MoEF shouldn't have granted environmental clearence on the basis of rapid EIA report. In a seperate report Ms. Gupta stressed the need for more comprehensive impact assessment but was against rewoking existing clearences immidiately.Now both the reports by the commity felt that provision under the forest rights act are posco's plant relooked by the orissa govt.
Biocon, Pfizer in $350-million insulin marketing deal -
Biocon ltd signed a mega marketing deal with the world's largest drug maker Pfizer yesterday to globally commercialized four of its insulin bio similar products in it. The deal would sweep a global market worth $14million. Pfizer will upfront pay $2million for the exclusive world rights.Biocon can also get an additional $150 million as development and regulatery mileston payments.
IT/BPO, auto sectors lead hiring urge in april-june :-
By strong empyoment trends in IT/BPO and the automobile sector overall employment across 8 manufacturing sector perked up an incremental 1.62 lac during the quarter.The latest survey report a maximum increase of 1.29 lac in employment in IT/BPO sector 0.51 lac in automobile sector and 0.45 lac in metal industry.
4)Coal india public issue subscribed 34% :-
Rs.15,000 cr. Initial public offering of coal india was subscribed 0.34 times on monday the 1st day of issue and it is a fairly good response. Of the 63.1 cr shares on offer the issue recieves bits for 21.3 cr. Shares according to N.S.E. Anaylist says that most of the bids will be coming on the last day and the response is encouraging although the coal issue was subscribed only 0.34 times and didn't do an NHPC or RELIANCE POWER on the 1st day.The coal india issue will close on oct.20 and retail portion will close on the next day.
5)Apex court stays sterlites tamilnadu plant closure till mid dec.:-
The apex court issues noticed to the centre the tamilnadu govt. And the state pollution control board regarding copper smelter at Tuticorin in southern tamilnadu directing them to reply them with in 2 weeks.The apex court was hearing a petition file wise sterlite the countries largest copper producer, against a sep.28th order of madras high court to immideaitely shut the smelter for violating pollution control and environmental regulation Serlite complains that the it had compiled with the green norms and opposes charges on contamination.Now the next hearing will be on mid dec.
6)Airbus military's arm in pact with mahindra for IAF contract:-
Airbus military subsidiary in poland,PZL, has entred into a initial MoU with mahindra and some other indian companies to meet the offset obligation of an indian air force contract the tender is for 75 aircraft with the first 12 being assembled in the facility of the counrty that wins the contarct while rest will be assembled in india.
Adani starts an australia operation:-
Mr. Gautam adani executive chairman and founder of Adani group announced that they are going to invest $6.9billion on mine,rail,ports projects in queensland australia.The investment in australia represent the largest investment in australia by any indian co. And important bench mark investment in low rank thermal coal assets.Additinally the Adani group would explore opportunities for down stream value additions including UCG and CTL technologies “within the framework of govt. Policy”.
Ambuja cements shuts Himachal units:-
Ambuja cements has stopped production at its Himachal pradesh unit
due to the transport strike the co. Informed the BSE that there was a transport strike by a transport union at its Sule and Rauri plants in himachal pradesh since oct.7.The co. Shares were down 1.3% at Rs.137 on monday.
9) MMTC pays dividend of Rs. 44.7 cr. :-
The public sector metal and mineral trading major MMTC have presented a dividend cheque of Rs.44.7 cr. Towards 90% dividend for the financial year 2009-10.
MMTC has achieved the highest ever profit after tax of rs. 216 cr. With turnover of Rs.45124 cr during the financial year 2009-10.
10) KITCO registers 25% growth in turnover:-
KITCO ltd. co. Has registerd 25% growth in its turnover for the financial year 2010 as the figures had crossed Rs. 20 cr. From that of previous year the co. Through the involvement in developing several infrastructure in the state of kerela was awarded with the preparation of retail project report and project management consultancies for the vytilla mobility hub in kochi. The co. Has also been awarded with the construction of 5 ROB's by the roads and bridges cooperation of kerela
19th October - BUSINESS LINE
Lalit Mohan Singh Rawat
Kitboklang Siyem
Kumar Shivanand
(Section - F)
Biocon, Pfizer in $350-million insulin marketing deal.
Bangalore- based biocon Ltd. Signed a mega marketing deal with the world largest drug-maker Pfizer on Monday to globally commercialise four of its insulin biosimilar product initially.
In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights. Mr Rakesh Bamzai, President (Marketing), Biocon, called the deal a world game changer in which these products would be challenging brands that have dominated the insulin world for years. Products would be introduced with some discounts. Biocon will remain responsible for the clinical development, manufacture and supply of these biosimilar insulin products, as well as for regulatory activities to secure approval for these products in various geographies.
Panel majority for scrapping eco nod to Posco's Orissa project.
The four-member panel appointed by the Ministry of Environment and Forest (MoEF) has submitted its report to the Environment Ministry on Posco's proposed steel Project. There has been no final decision on the project yet. The panel has submitted two separate reports where three members are suggesting cancellation of the existing environment laws. Headed by former environment secretary Meena Gupta, the central team probing alleged irregularities in the implementation of environment laws and forest rights acts in the Rs 51,000 corer project was initially scheduled to submit its report on October 12.
3. Apex court stays Sterlite's TN plant closure till mid-Dec.
The Supreme Court on Monday extended till the second week of December its earlier stay on closure of the company's copper smelter at Tuticorin in southern Tamil Nadu. The apex court also issued notices to the Centre, the Tamil Nadu Government and the State Pollution Control Board (PCB) directing them to file replies within two weeks.
IT/BPO, auto sectors lead hiring surge in April-June
Led by strong employment trends in the information technology and business process outsourcing (IT/BPO) and the automobile sectors, overall employment across eight manufacturing sectors perked up by an incremental 1.62 lakh during the quarter.
On comparing the cumulative results of the last four quarterly surveys period — June 2010 over June 2009 — the overall employment has increased by 13.58 lakh for the 12-month period, with highest increase seen in the IT/BPO segment at 8.54 lakh jobs, followed by 1.52 lakh in textiles, 1.37 lakh in metals, 1.10 lakh in automobiles and 0.93 lakh in gems and jewellery during the period
5. Coal India public issue subscribed 34%
HDFC Ltd posted a net profit of Rs 808 corer for the quarter ended September 30, 2010, up 22 per cent from Rs 664 corer in the corresponding quarter last year. The increase in profits was on account of strong loan growth and higher interest income. As on September 30, the outstanding loan book was Rs 1,06,287 corer, against Rs 89,519 corer in the same period last year, a growth of 19 percent.
Loan approvals grew by 29 per cent and disbursements rose 27 per cent. In individual loans, approvals grew by 49 per cent and disbursements by 42 per cent. Retail loan growth has been strong net interest income grew to Rs 1,189 corer (Rs 947 corer), an increase of 26 per cent.
Bharat Forge eyes coal mines overseas
Pune-based Bharat Forge is currently evaluating a few coal mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use, reports suggest. The company, already a maker of power equipment, hopes to enter the power generation business shortly, reports suggest.
Bharat Forge plans to set up around 10,000 megawatt (MW) of power generation capacity over the next 10 years. The company expects nearly 40% of its sales to come from the non-automotive business by the year ending March 2012 (FY 2012), reports added.
The company's net profit rose 6090.6% to Rs. 59.43 corer on 73.1% rise in sales to Rs.608.50 corer.
7. L&T profit surges 32% in Q2 on strong order book.
Larsen & Toubro has recorded a 32 per cent increase in net profit for the second quarter of this fiscal.
In infrastructure projects, there were structural delays such as finalisation of tendering documents, internal issues in companies assigning contracts, environmental issues and high commodity prices. Except for cement, prices of all commodities such as copper, aluminium and steel have gone up substantially forcing companies to delay their projects.
Revenue from the electrical and electronics segment was down five per cent to Rs 672 corer (Rs 708 corer) due to stiff competition in the domestic sector coupled with a slowdown in international markets. Margins in the segment fell by two percentage points. On the Vedanta project in Orissa, L&T has already finished 60 per cent of the Rs 550-corer order and has to recover Rs 20 corer from the company
Reliance Ind eyes Kerala-Konkan basin.
Reliance Industries may participate in the ninth round of the New Exploration Licensing Policy auctions, hinted Mr Mukesh Ambani, Chairman and Managing Director.
The Kerala-Konkan basin off the western coast, which is also included in the NELP-IX blocks, has sparked interest in RIL. Mr Ravi Bastia, Senior Vice-President, said in his presentation that the basin looks promising and needs more exploration to fully analyse its potential.
SBI Retail Bonds — Interest rate remains a major attraction.
Unlike infrastructure bonds from designated institutions such as IDFC and L&T Finance, the bonds issued by SBI will not be eligible for tax benefits. Therefore, it will be appropriate to compare the bonds with fixed deposits for investment purposes.
There is no tax deduction at source (TDS) on SBI bonds irrespective of the interest amount. This is because these bonds are offered in dematerialised form and listed on the stock exchange. The bonds allow investors to capitalise on future interest rate increases, if the bank does not exercise its call option, by offering a 0.5 per cent increase in interest rates at the end of fifth and tenth years.
The major attraction of the bonds is the interest rate offered on a fairly safe investment. Compared to the annual interest rate of 7.75 per cent prevailing on 8-10 year fixed deposits with SBI, the bond offers 9.25 per cent for a five-year term.
NIIT Techonologies posts 35.6% rise in Q2 profit
. Due to increasing demand for tech. after the global downturn
. Will help in salary hike
. consolidated revenue rise 43.5 per cent during the quarter
. operating margins were depressed (18.3 per cent versus 20.3 per cent)
Hewlett-Packard launches ePrint-enabled printers
. Hewlett-Packard's launched first ePrint-enabled and Web-connected printers” for business use
. “With an email address assigned to the printer, ePrint will work from any mobile device, including smartphones, laptops, and even the iPad
Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years
. leading diamond and jewellery export companies
. Mr Jatin R. Mehta, Chairman and Managing Director
. for long-term growth of value-added gem and jewellery industry
. The company intends to multiply its space in Kochi for future programme by 2-3 times at an investment close to Rs 40 corer.
. turnover of Rs 3,000 corer last year, which is expected to touch Rs 3,900 corer in the current fiscal.
. It had achieved a turnover of Rs 1,000 corer from domestic sales last year and the figure is expected to touch Rs 1,800 corer this year
HDFC Q2 profit rises 22% on higher interest income
. The increase in profits was on account of strong loan growth and higher interest income
. sold loans worth Rs 4,858 corer.
. Loan approvals grew by 29 per cent and disbursements rose 27 per cent.
. at September 30, deposits stood at Rs 26,881 corer, against Rs 20,530 corer in the corresponding date last year, registering a growth of 31 per cent.
Bharat Forge eyes coal mines overseas
Bharat Forge Ltd, a Kalyani Group company with diverse business interests, is now aiming to get into coal mining and, subsequently, the power generation business.
Industry sources said the Pune-based company is currently evaluating a few such mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use.
. The company official added that Bharat Forge plans to set up around 10,000 MW of power generation capacity over the next 10 years.
Bharat Forge, whose core business is manufacturing engine, transmission and chassis components for automotive use, has about 11 plants globally. It is also makes parts for marine, aerospace, construction equipment and railway applications.
The company expects nearly 40 per cent of its sales to come from the non-automotive business by 2011-12.
Bharat Forge has said that it is setting up a TG manufacturing capacity for about 5,000 MW a year, translating to potential annual revenues of about Rs 6,000-7,000 corer. This capacity will also include turbine generators required for nuclear power plants.
Airbus Military's arm in pact with Mahindra for IAF contract
Airbus Military's subsidiary in Poland, PZL, has entered into an initial memorandum of understanding with Mahindra and some other Indian companies to meet the offset obligations of an Indian Air Force contract.
The tender for 75 aircraft with the first 12 being assembled in the facility of the country that wins the contract while the rest will be assembled in India.
PZL manufacturers said the Orlik aircraft is expected at Jamnagar at the end of the month to participate in the IAF competition.
Airbus Military, a sister concern of Airbus, is also “assessing and evaluating” options in India, senior company officials said.
Ms Barbara Kracht, Vice-President, Media Relations, told that India is a potential market for Airbus Military, which is a young organisation based on long experience of design and manufacture of military transport aircraft.
Biocon, Pfizer in $350-million insulin marketing deal
. In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights
. Both companies sell their products in India, Malaysia and Germany separately.
Bharti eyes land in S. America, Africa to produce pulses, oil for India
. Bharti Enterprises, has expressed interest in taking over land in Africa and South America to engage in agro- and food-processing.
. Airtel, recently acquired Kuwait-based Zain's Africa assets for $10.7 billion and is now operating in 15 African countries.
Kitboklang Siyem
Kumar Shivanand
(Section - F)
Biocon, Pfizer in $350-million insulin marketing deal.
Bangalore- based biocon Ltd. Signed a mega marketing deal with the world largest drug-maker Pfizer on Monday to globally commercialise four of its insulin biosimilar product initially.
In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights. Mr Rakesh Bamzai, President (Marketing), Biocon, called the deal a world game changer in which these products would be challenging brands that have dominated the insulin world for years. Products would be introduced with some discounts. Biocon will remain responsible for the clinical development, manufacture and supply of these biosimilar insulin products, as well as for regulatory activities to secure approval for these products in various geographies.
Panel majority for scrapping eco nod to Posco's Orissa project.
The four-member panel appointed by the Ministry of Environment and Forest (MoEF) has submitted its report to the Environment Ministry on Posco's proposed steel Project. There has been no final decision on the project yet. The panel has submitted two separate reports where three members are suggesting cancellation of the existing environment laws. Headed by former environment secretary Meena Gupta, the central team probing alleged irregularities in the implementation of environment laws and forest rights acts in the Rs 51,000 corer project was initially scheduled to submit its report on October 12.
3. Apex court stays Sterlite's TN plant closure till mid-Dec.
The Supreme Court on Monday extended till the second week of December its earlier stay on closure of the company's copper smelter at Tuticorin in southern Tamil Nadu. The apex court also issued notices to the Centre, the Tamil Nadu Government and the State Pollution Control Board (PCB) directing them to file replies within two weeks.
IT/BPO, auto sectors lead hiring surge in April-June
Led by strong employment trends in the information technology and business process outsourcing (IT/BPO) and the automobile sectors, overall employment across eight manufacturing sectors perked up by an incremental 1.62 lakh during the quarter.
On comparing the cumulative results of the last four quarterly surveys period — June 2010 over June 2009 — the overall employment has increased by 13.58 lakh for the 12-month period, with highest increase seen in the IT/BPO segment at 8.54 lakh jobs, followed by 1.52 lakh in textiles, 1.37 lakh in metals, 1.10 lakh in automobiles and 0.93 lakh in gems and jewellery during the period
5. Coal India public issue subscribed 34%
HDFC Ltd posted a net profit of Rs 808 corer for the quarter ended September 30, 2010, up 22 per cent from Rs 664 corer in the corresponding quarter last year. The increase in profits was on account of strong loan growth and higher interest income. As on September 30, the outstanding loan book was Rs 1,06,287 corer, against Rs 89,519 corer in the same period last year, a growth of 19 percent.
Loan approvals grew by 29 per cent and disbursements rose 27 per cent. In individual loans, approvals grew by 49 per cent and disbursements by 42 per cent. Retail loan growth has been strong net interest income grew to Rs 1,189 corer (Rs 947 corer), an increase of 26 per cent.
Bharat Forge eyes coal mines overseas
Pune-based Bharat Forge is currently evaluating a few coal mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use, reports suggest. The company, already a maker of power equipment, hopes to enter the power generation business shortly, reports suggest.
Bharat Forge plans to set up around 10,000 megawatt (MW) of power generation capacity over the next 10 years. The company expects nearly 40% of its sales to come from the non-automotive business by the year ending March 2012 (FY 2012), reports added.
The company's net profit rose 6090.6% to Rs. 59.43 corer on 73.1% rise in sales to Rs.608.50 corer.
7. L&T profit surges 32% in Q2 on strong order book.
Larsen & Toubro has recorded a 32 per cent increase in net profit for the second quarter of this fiscal.
In infrastructure projects, there were structural delays such as finalisation of tendering documents, internal issues in companies assigning contracts, environmental issues and high commodity prices. Except for cement, prices of all commodities such as copper, aluminium and steel have gone up substantially forcing companies to delay their projects.
Revenue from the electrical and electronics segment was down five per cent to Rs 672 corer (Rs 708 corer) due to stiff competition in the domestic sector coupled with a slowdown in international markets. Margins in the segment fell by two percentage points. On the Vedanta project in Orissa, L&T has already finished 60 per cent of the Rs 550-corer order and has to recover Rs 20 corer from the company
Reliance Ind eyes Kerala-Konkan basin.
Reliance Industries may participate in the ninth round of the New Exploration Licensing Policy auctions, hinted Mr Mukesh Ambani, Chairman and Managing Director.
The Kerala-Konkan basin off the western coast, which is also included in the NELP-IX blocks, has sparked interest in RIL. Mr Ravi Bastia, Senior Vice-President, said in his presentation that the basin looks promising and needs more exploration to fully analyse its potential.
SBI Retail Bonds — Interest rate remains a major attraction.
Unlike infrastructure bonds from designated institutions such as IDFC and L&T Finance, the bonds issued by SBI will not be eligible for tax benefits. Therefore, it will be appropriate to compare the bonds with fixed deposits for investment purposes.
There is no tax deduction at source (TDS) on SBI bonds irrespective of the interest amount. This is because these bonds are offered in dematerialised form and listed on the stock exchange. The bonds allow investors to capitalise on future interest rate increases, if the bank does not exercise its call option, by offering a 0.5 per cent increase in interest rates at the end of fifth and tenth years.
The major attraction of the bonds is the interest rate offered on a fairly safe investment. Compared to the annual interest rate of 7.75 per cent prevailing on 8-10 year fixed deposits with SBI, the bond offers 9.25 per cent for a five-year term.
NIIT Techonologies posts 35.6% rise in Q2 profit
. Due to increasing demand for tech. after the global downturn
. Will help in salary hike
. consolidated revenue rise 43.5 per cent during the quarter
. operating margins were depressed (18.3 per cent versus 20.3 per cent)
Hewlett-Packard launches ePrint-enabled printers
. Hewlett-Packard's launched first ePrint-enabled and Web-connected printers” for business use
. “With an email address assigned to the printer, ePrint will work from any mobile device, including smartphones, laptops, and even the iPad
Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years
. leading diamond and jewellery export companies
. Mr Jatin R. Mehta, Chairman and Managing Director
. for long-term growth of value-added gem and jewellery industry
. The company intends to multiply its space in Kochi for future programme by 2-3 times at an investment close to Rs 40 corer.
. turnover of Rs 3,000 corer last year, which is expected to touch Rs 3,900 corer in the current fiscal.
. It had achieved a turnover of Rs 1,000 corer from domestic sales last year and the figure is expected to touch Rs 1,800 corer this year
HDFC Q2 profit rises 22% on higher interest income
. The increase in profits was on account of strong loan growth and higher interest income
. sold loans worth Rs 4,858 corer.
. Loan approvals grew by 29 per cent and disbursements rose 27 per cent.
. at September 30, deposits stood at Rs 26,881 corer, against Rs 20,530 corer in the corresponding date last year, registering a growth of 31 per cent.
Bharat Forge eyes coal mines overseas
Bharat Forge Ltd, a Kalyani Group company with diverse business interests, is now aiming to get into coal mining and, subsequently, the power generation business.
Industry sources said the Pune-based company is currently evaluating a few such mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use.
. The company official added that Bharat Forge plans to set up around 10,000 MW of power generation capacity over the next 10 years.
Bharat Forge, whose core business is manufacturing engine, transmission and chassis components for automotive use, has about 11 plants globally. It is also makes parts for marine, aerospace, construction equipment and railway applications.
The company expects nearly 40 per cent of its sales to come from the non-automotive business by 2011-12.
Bharat Forge has said that it is setting up a TG manufacturing capacity for about 5,000 MW a year, translating to potential annual revenues of about Rs 6,000-7,000 corer. This capacity will also include turbine generators required for nuclear power plants.
Airbus Military's arm in pact with Mahindra for IAF contract
Airbus Military's subsidiary in Poland, PZL, has entered into an initial memorandum of understanding with Mahindra and some other Indian companies to meet the offset obligations of an Indian Air Force contract.
The tender for 75 aircraft with the first 12 being assembled in the facility of the country that wins the contract while the rest will be assembled in India.
PZL manufacturers said the Orlik aircraft is expected at Jamnagar at the end of the month to participate in the IAF competition.
Airbus Military, a sister concern of Airbus, is also “assessing and evaluating” options in India, senior company officials said.
Ms Barbara Kracht, Vice-President, Media Relations, told that India is a potential market for Airbus Military, which is a young organisation based on long experience of design and manufacture of military transport aircraft.
Biocon, Pfizer in $350-million insulin marketing deal
. In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights
. Both companies sell their products in India, Malaysia and Germany separately.
Bharti eyes land in S. America, Africa to produce pulses, oil for India
. Bharti Enterprises, has expressed interest in taking over land in Africa and South America to engage in agro- and food-processing.
. Airtel, recently acquired Kuwait-based Zain's Africa assets for $10.7 billion and is now operating in 15 African countries.
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