Subros meets expectations
Wednesday, April 30, 2008For 4QFY2008, Subros Limited clocked 2.4% growth in Net Sales to Rs187.8cr, which was largely in line with our expectation of Rs188.1cr. Sales growth came on the back of volume growth of 7.6% while average realisations declined 4.8% yoy. Subros sold 1,43,717 AC units in 4QFY2008 as against 1,33,581 sold in 3QFY2008. The company’s Bottom-line, which increased 9.8% yoy to Rs8.9cr was also in line with our expectation of Rs8.7cr. Margins were however, marginally above our expectations primarily due to lower raw material costs.
During 4QFY2008, Subros witnessed a 115bp yoy increase in EBITDA Margins owing to lower Raw Material cost, which declined by almost 210bp yoy. Raw Material costs accounted for over 68.8% of Sales (70.9% in 4QFY2007). Subros reported a 9.8% jump in Net Profit wherein Net
Profit Margins improved by 30bp.
For FY2008, Subros clocked 2.4% growth in Net Sales to Rs662.7cr driven by around 8.3% yoy growth in volume while realisations declined by 5.4% yoy. Expect Subros to report an EPS of Rs 5.75 for FY2009.
Published by DalalStreet Business @ 11:05 AM
Marico Ltd - Results Review
For 4QFY2008, Marico Limited posted a modest Topline growth of 17.8% yoy to Rs468cr (Rs397cr) on a consolidated basis in line with our expectation of an 18.6% growth to Rs471cr. However, this was the first quarter of below 20% Topline growth during the last eight quarters indicating the impact of high base. Healthy growth across its businesses including consumer products in India, international business and Kaya Skin Solutions, contributed to overall growth.
Marico's Earnings for the quarter, on a consolidated basis, grew 45.1% yoy to Rs40.8cr (Rs28.1cr) on reported basis largely aided by a one-time gain of Rs10.6cr on account of sale of Sil brand to Scandic Food India Pvt Limited. At the Operating front, Marico delivered a disappointing performance registering a 35bp contraction in OPM to 9.7% (10.1%) resulting in a muted 13.6% yoy growth in EBITDA to Rs45.6cr (Rs40.1cr).
Published by DalalStreet Business @ 10:01 AM
Lloyd Electric and Engg. Ltd.
Tuesday, April 29, 2008Lloyd Electric and Engg net sales rose by 36.14 per cent from Rs. 490.28 crores in FY07 to Rs.668.23 crores in FY08. During the recent quarter net sales of the company rose by 21.02 per cent from Rs.153.25 crores to Rs.185.47 crores.
EBIDTA increased by 32.94 per cent from Rs.66.06 crores in FY07 to Rs.87.82 crores in FY08. During the recent quarter the EBIDTA increased by 3.74 per cent from Rs.21.38 crores in Q4 FY07 to Rs.22.18 crores to Rs.22.18 per cent in Q4 FY08. EBIDTA margins registered a fall from 13.81 per cent in Q4 FY07 to 11.90 per cent in Q4 FY08. The fall in EBIDTA margins was due to higher raw material cost. RM cost during Q4 FY08 was 87.69 per cent of net sales as compared to 81.87 per cent during Q4 FY07.
PAT registered a growth of 23.84 per cent from Rs.42.96 crores in FY07 to Rs.60.38 crores in FY08. PAT registered a growth of 1.58 per cent from Rs.15.20 crores in Q4 FY07 to Rs.15.44 crores in Q4 FY08. PAT margins declined during the quarter from 9.82 per cent in Q4 FY07 to 8.28 per cent in Q4 FY08
Published by DalalStreet Business @ 2:28 PM
Software stocks reboot after extension of tax holiday
The Software Technology Parks of India (STPI) scheme, which provides for tax exemption to export oriented IT companies under Section 10 A was supposed to end in March 2009. However, members of STPI had appealed to the Finance Ministry to extend its STPI scheme beyond March 2009 by viewing the issue sympathetically. The Government has extended the same until 2010.
The BSE IT index was up 5.48% to 4,247.48. Satyam Computer (up 8.36% to Rs 480), HCL Technologies (up 8.14% to Rs 287), NIIT Technologies (up 6.65% to Rs 137.15), Tech Mahindra (up 6.59% to Rs 870), Infosys Technologies (up 4.81% to Rs 1,745), Wipro (up 4.28% to Rs 477.30), and TCS (up 3.74% to Rs 916.05), surged
Published by DalalStreet Business @ 1:14 PM
RBI hikes CRR by 25bps
In the Monetary policy review, the RBI has raised CRR by yet another 0.25% TO 8.25%. CRR hike is effective from May-24, 2008. It has left Bank Rate, Reverse Repo Rate and Repo Rate unchanged.
RBI has set a high priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while sustaining the growth momentum.
Softened GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent. Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference for bringing it close to 5.0 per cent as soon as possible. [How are you going to do it with every Industry functioning as a Big Lobby ? Looks to me just an empty assurance. ] Going forward, the resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a medium-term objective. [Is the RBI Kidding ?]
The limit of bank loans to individuals for housing having lower risk weight of 50 per cent enhanced from Rs. 20 lakh to Rs. 30 lakh.
Published by DalalStreet Business @ 12:04 PM
Hindustan Zinc Ltd
Hindustan Zinc Ltd (HZL) recorded an impressive 68.3% FY08 EBITDA margins despite zinc LME prices decreasing by 17% (average prices of USD 2700 in FY07 to USD 2400 in FY08) and rupee appreciating by 11% (from INR 44 to INR 39 per USD) in FY08.
In FY08 HZL recorded net sales of INR 78,780 mn as against INR 85,600 mn in FY07, a decrease of 8%. EBITDA margins in FY08 stood at 68.3% as compared with 74.8% in FY07. In Q4FY08 HZL's net sales stood at INR 22,660 mn as compared with 20,210 mn in Q4FY07. EBITDA margins declined by 450bps as compared with Q4FY0. Adjusted net profits for the quarter increased by 20 bps on account of higher other income and lesser tax incidence as compared with Q4FY07.
FY08 zinc-lead refined metal production increase by 22% and 31% YoY respectively; Q4FY08 zinc-lead metal production increase by 43% and 35% QoQ respectively. The Chanderiya Hydro II smelter was commissioned in a record time of 20 months, 6 months ahead of schedule.
In FY08 HZL through its continued exploration activity increased its net zinc reserve by 22.9 mn TPA and its net contained zinc- lead metal by 3.4 mn TPA (up 14%) at its Sindesar and Rampura mines.
Published by DalalStreet Business @ 11:56 AM
Central Bank of India - Disappointing
Central Bank's profits declined 15% yoy (6% below estimates) due to a sharp drop in margins, higher loan loss provisions and taxes. Operationally the quarter was weak; cost control the only positive. We believe, given its large corporate loan book; it will be structurally difficult for CBI to co-manage high growth and profitability.
Central Bank's NIMs dropped over 140bps yoy to 219bps for 4Q08. The drop in margins was significantly more than estimated with aggressive loan growth (+26% qoq) and decline in CASA ratio necessitating a rollover of high cost funds. With its top-line focus and large corporate loan portfolio, we believe margins will remain under pressure.
Costs have remained under check with a 4% decline yoy. After adjusting for pension arrears, CBI's Tier1 capital has fallen to 5.4% (10.4% overall) as against the required 6% under Basle II (effective Mar09 for CBI);.
Expect CBI to report an EPS of Rs 15.24 for FY2009.
Published by DalalStreet Business @ 10:36 AM
IVR Prime Urban Developers enters joint development agreement
Monday, April 28, 2008IVR Prime Urban Developers has entered into joint development agreement for construction of high rise residential apartments. The 9.6 acre gated community project at Kukatpally, comprises a built up area of 1.325 million Sft and a parking area for 1200 cars. The Rs 386 crore project consists of a 2 bed room apartments of 1250 Sft, 3 bedroom apartments of 1500 Sft and 4 bedroom apartment of 1800 Sft each.
The company is also set to foray into the city of Visakhapatnam with its real estate development at Vedurvada, located near the Vizag Steel Plant. The project is named Misty Woods and is spread in the area of 130 acres. The location is surrounded by the 6000 acre Naval and Air Force Academy and upcoming SEZ of Achutapuram. Companies like Brandixs Apparel Park, HPCL, Pokarna granites, St.Gobain etc are a part of this SEZ.
Published by DalalStreet Business @ 3:38 PM
Sanwaria Agro Oils - Result Analysis
Saturday, April 26, 2008Sanwaria Agro Oils - SAOL exceeded sales estimates by a wide margin & PAT estimates marginally for FY08. It achieved a turnover & PAT of Rs. 9386 mn & Rs. 543 mn respectively against an estimated turnover and PAT of Rs. 8234 mn & Rs. 501 mn respectively. EPS for FY08 stood at Rs. 6.2 [FY07: Rs. 1.4] vs. estimated EPS of Rs. 5.8. The net sales & PAT increased by 110.7% & 344% respectively over FY07. EBITDA margins improved from 5.2% in FY07 to 8.3% in FY08. PAT margins increased from 2.7% in FY07 to 5.8% in FY08. Improved realisations, better capacity utilisation & economies of scale contributed largely to the sales & profitability growth.
SAOL has expanded the existing daily crushing capacities at Mandideep & Itarsi from a total of 1,000 TPD to 2,000 TPD & refining capacity from a total of 150 TPD to 300 TPD. The commercial production of the same has commenced from January 15 2008. The full impact of this expansion is expected in FY09.
Published by DalalStreet Business @ 9:38 AM
HDFC Bank - Topline zooms
HDFC Bank has reported a net profit of Rs. 4.71bn (37 % yoy growth), ahead of our estimate of Rs 4.61bn. The key takeaways from the quarter: Strong NII growth, slower non- fund income growth, higher provisioning expenses as the bank set aside for contingencies and a lower tax rate. Sequentially the advance portfolio has declined: a function of securitization carried out during the quarter.
Non-fund income growth has been relatively slower this quarter at ~39% yoy, primarily due to decline in forex/derivative revenues. Lower tax outflow on account of tax free income booked during the quarter allowed the bank to make a higher provision on contingencies (for derivative related issues). On the positive side, sequentially there has been a decline in the provisions on NPA and standard assets (NPA provision to average loan down to 1.66% from 1.87% in Q3FY08)
Expect HDFC Bank to report a fully diluted EPS of Rs 54, post centurion bank of punjab merger with itself.
Published by DalalStreet Business @ 9:34 AM
Transformers & Rectifiers - Result analysis
Thursday, April 24, 2008Net sales grew at 38.9% YoY (Vs estimate of 26.3%) to Rs3,014 MM, as the realization per MVA remained stable at Rs0.5 MM. The net sales for Q4FY08 stood at Rs1,066 MM (YoY not comparable, as the company got listed recently).
EBITDA increased by an impressive 69.3% YoY (Vs 53.3% YoY) to Rs552 MM. The EBITDA margins stood at 18.3% (improvement of 70 bps YoY). For Q4FY08 the EBITDA margins stood at 17.6%.
PAT grew by 98% YoY (Vs 70% YoY) to Rs331 MM owing to higher EBITDA margins, thereby leading to net margins being higher at 11.0% (Vs 10.3%) compared to 7.7% in FY07. The net margins for Q4FY08 were at 10.3%.
The management for FY09, has guided for revenues of Rs5 Bn with an EBITDA and net profit margins of 20% and 10% respectively. They expect similar realizations in FY09 and some moderation in FY10, as they are planning to enter in higher MVA transformer segment.
Published by DalalStreet Business @ 11:47 AM
Jubilant Organosys - No Surprises in Q4
Jubilant's recurring 4QFY08 results were in-line with expectations, with a robust trend in revenues as well as profitability. The high margin PLSPS business (especially CRAMS) was the key growth driver and now contributes c62% of revenues.
Sales growth of 38% YoY (22% organic) and 443 bps expansion in EBIDTA margins led to an 87% increase in recurring PAT. Reported PAT was buoyed by translation gains (Rs1bn). CRAMS was the key growth driver, up 86% YoY (46% organic), while industrial products benefited from lower molasses prices (down 20% YoY) and higher selling prices. Jubilant also guided to a 35% organic revenue growth and higher EBIDTA margins.
Jubilant indicated that organic capex for FY09 would be cRs7.5bn - higher than our estimates by cRs3bn - funded through debt and internal accruals. Company hopes to report an EPS of Rs 22 in FY07.
Published by DalalStreet Business @ 11:05 AM
Oriental Bank of Commerce - Q4 Analysis
Do not take these results of Oriental Bank of Commerce only at face value - Rs1b quarterly loss is on account of accelerated write-off of acquisition costs. Operationally, pre-provisioning profits are flat yoy and up 10% qoq - ahead of expectations, and suggest some signs of a bounce-back, albeit off a pretty modest base.
OBC has pushed up margins about 10bp qoq; should better peer government banks. But this comes off a fairly low base; while this offers upside, the low 225bps margin level remains a fundamental drag on profitability.
OBC continues to maintain industry level growth - about 21% for the year, balanced, with some acceleration over the quarter. Its asset book, however, does see some increased pressure - not significant, but along with a provision write-back to support the bottom line, has eroded loan loss coverage.
Going forward, company should report an EPS Of Rs 29.88 for FY09.
Published by DalalStreet Business @ 7:55 AM
Exide Industries - Result Analysis
Wednesday, April 23, 2008Net revenues of Exide Industries up 50% YoY at INR7,913.4 mn in 4Q FY08 and Net profit at INR628 mn shows strong growth of 63% YoY in 4QFY08. EBITDA margins remain at 14.2% YoY even in the face of a 66% YoY increase in lead prices but dip QoQ from 15.1% owing to the increase in manufacturing and SGA costs. NPM increases by 30bps YoY to 7.9% due to stable depreciation costs.Full year FY08 EPS at Rs 3.13
Rise in lead prices has squeezed the margins of Exide Industries. For FY09E we expect EPS to be INR 3.8 with operating margins at 16.7%. Expect net sales to show a growth of 15% YoY and PAT to show a growth of 21%. This is on the back of an estimated volume growth of 15% in the industrial battery segment, 10% volume growth in two-wheeler battery segment and 9.6% volume growth in four-wheeler battery segment.
Published by DalalStreet Business @ 1:59 PM
Jain Irrigation - Result Analysis
In F4Q08, JISL reported standalone revenues of Rs6bn (33% YoY) and EBITDA margins of 20.6% (460bps YoY expansion) driving 72% growth in EBITDA to Rs1.2bn. MIS grew 54% YoY to Rs2.4bn with strong demand across key states while EBITDA margins remained flat at around 31%. Plastics business grew 21% YoY in F4Q08 driven by domestic pipes business (47% YoY), while the sheets business (largely exports) declined 30% YoY impacted by US housing slowdown. Agro processing (AP) grew 25% YoY owing to muted growth in fruit processing (12%).
The company is expected to report a full year EPS of Rs 25 for FY09.
Published by DalalStreet Business @ 12:05 PM
Geometric Ltd - Analysis
Geometric Ltd reported weak Q4FY08 numbers, with revenue growing by just 2.0% QoQ to Rs1,265m, while net profit declined by 31.4% QoQ to Rs47m. EBITDA grew 10% QoQ, while operating margin expanded 90bps to 12.5%. PAT margin declined 180bps to 3.7% of revenue, driven down under pressure from losses under other income. Other income reported a loss of Rs11m (as compared to a profit of Rs26m last quarter) and Rs203m for the entire fiscal.
We are underweight on Midcap IT stocks in India and we are recommending investors to Book Profits and exit the sector and look at companies with domestic business model such as Infrastructure, Telecom, Retail etc.
Published by DalalStreet Business @ 10:32 AM
FAG Precision Bearings India - Analysis
Fag Bearings’ (FBIL) Q1CY08 results were better than our expectations. Net sales grew by 9.4% YoY from Rs1.57bn to Rs1.72bn (we expected Rs1.75bn), mainly due to slowdown in the auto and industrial sectors. There was a sharp drop in two-wheeler and commercial vehicle sales during the quarter, which has affected overall sales growth.
The company's EBIDTA margin declined by 30bps from 22.2% to 21.9% YoY (we expected 16.0%), due to increase in personnel cost. Personnel cost increased by 200bps from Rs115m to Rs159m due to rise in salaries and lower sales growth. Material cost declined by 80bps from 53.9% to 53.1% despite rise in prices of steel and components, as the company was able to pass the same to its customers. FBIL's net profit improved by 15.5% YoY from Rs220m to Rs254m due to lower tax rate (we expected Rs178m).
We expect the company on a conservative basis to report an EPS of Rs 65 for FY09.
Published by DalalStreet Business @ 10:28 AM
Orient Paper Industries
The turnover in Orient's 'fans' business, at Rs1.3bn, grew 27% yoy during 4Q08, followed by cement at 16%. Paper however slipped 18% yoy due to a 10-day unprecedented shutdown. Total turnover for the quarter, at Rs3.8bn, beat our estimates by 4%. Cement aggregate volumes, at 0.65m tons, inched up 2% yoy. Net realizations, at ~Rs2,950 a ton, rose 13% yoy (and 3% qoq).
The company made a provision of Rs 125m for receivables from its Kenya JV, Pan Paper. Adjusting for this, operating profit, at Rs982m, crossed our estimate of Rs 946m. A temporary shutdown at the paper plant reduced its profitability to Rs35m (Rs104m yoy, Rs111m qoq). This led to an overall dip in the OPM yoy and qoq.
However, the company is expected to report no growth in EPS for FY09 and is likely to be Rs 11.
Published by DalalStreet Business @ 12:12 AM
Ultratech Cements - Margin Pressures Due to Costs
Ultratech Cement's PAT came in at Rs2.8bn,up 22% yoy, but 9% below estimates. While realizations grew in-line with our estimates, costs came in higher. As a result, 4Q EBITDA margins at 30.5% were up only 90bps yoy but down 340bps qoq. FY08 PAT rose 29% to Rs10bn.
Given capacity constraints, ULTC's cement volumes have remained flattish for both 4Q (4.2mt) and FY08 (15mt). There has been an increasing focus on domestic markets, with cement exports falling 39% in 4Q and 43% in FY08. Realizations have grown 11% yoy
both in 4Q and FY08; however, prices in 4Q were flat qoq in ULTC's markets.
Rising costs have been the key factor in keeping margins muted during 4Q. Key pressure areas were raw materials, wages and power & fuel costs. The Indian Real Estate Developers have alleged lobby by Cement and Steel companies and the Government's move to BAN cement exports with immediate effect to bring soaring inflation will impact Ultratech.
Published by DalalStreet Business @ 12:07 AM
Sanghi Industries Results Review
Tuesday, April 22, 2008Sanghi Industries has faxed us its results and here is the review from our analyst.
Top-line growth led by higher volumes. Average realizations increased 7.4% qoq (and 16.6% yoy) to Rs3,482 a ton. Aggregate volumes for the quarter, at 0.7m tons were up 14% qoq, though they dipped 20% yoy. Net sales, at Rs2.45bn, came in above our expectations of Rs2.09bn. Higher realizations help margin improvement. EBITDA per ton improved to Rs1,148, compared to ~Rs839 in 3Q08 (~Rs 1,310 in 4Q07). Better realizations and robust volume growth boosted EBITDA growth qoq. OPM rose 710bp qoq on the back of higher realizations.
Export Ban to impact average realizations. Sanghi exported ~35% of its sales volumes in FY08 and a ban on exports will impact it unless its able to sell the same volumes in domestic market without taking any price cuts.
Published by DalalStreet Business @ 1:10 PM
Glaxo Smithkline Result Review
GlaxoSmithKline Pharma's (GSK Pharma) Q1CY08 results were broadly in line with our expectations. Net sales have decreased by 0.7% YoY to Rs 4.2bn. However, excluding the contribution of the fine chemicals business which was divested in September 2007, net sales have increased by 5.3%, in line with estimates. Priority products witnessed a healthy growth of 9% YoY, while the sales of price-controlled products were affected by pipeline inventory adjustments owing to excise-related price changes. The EBITDA margin has expanded marginally by 30bps YoY to 36.4% while higher non-operational income resulted in 8.9% growth in PAT to Rs 1.2bn
Published by DalalStreet Business @ 1:09 PM
Private Equity in Real Estate
In 2007 and 2008 till date, India has attracted 2.6 billion dollar of private equity investment in the real estate sector. We have collected details of the same and is being presented below.
Date / Investor / Company /Investment [$Mn]
Apr 08 Saffron Capital Parsavnath 47
Sep-07 Deutsche Bank Singapore Lodha Group 425
Nov-07 Merrill Lynch & Brahma Investments DLF 424
Dec-07 Citi Venture Capital & GIC (Singapore) Shapoorji Pallonji 290
Feb-08 DE Shaw HDIL (Mack Star Marketing) 250
Apr-08 Citi Property Investors BPTP 160
Jan-08 Baer Capital Partners & Goldman Sachs Vatika Ltd 150
Feb-08 Infinite India Investment Management Maytas Properties 150
Mar-08 Deutsche Bank Ramprastha Promoters & Developers 80
Jan-08 RREEF Golden Gate Properties 70
Mar-08 Quantum Indiabulls Real Estate 69
Mar-08 TAIB Bank Logix TechnoPark 69
Sep-07 JP Morgan Lodha Group 69
Apr-08 HDFC Real Estate Fund Lodha Group 63
Apr-08 US-based hedge fund Indus Capital Partners Uppal Group 52
Jan-08 Frontline Ventures Futura Infraprojects 40
Nov-07 Yatra Capital and ICICI Ventures Kotle Patil Developers 31
Apr-08 Shinsei Bank & Kotak Realty Fund Lemon Tree 30
Dec-07 Yatra Capital Riverbank Holdings Pvt Ltd 28
Mar-08 Yatra Capital Palladium Construction 28
Sep-07 ICICI Ventures Lodha Group 25
Mar-08 Yatra Capital Platinum Hospitality Services 16
Apr-08 Triangle Realty Fund Prozone 11
Dec-07 Yatra Capital Alliance Hospitality Services 7.2
Nov-07 Yatra Capital Gangetic Developers 5.8
One of the prominent deals Citi-Nitesh Estate for $250 mn is missing in the list above. However, you can check out exclusive coverage of Indian Real Estate Sector and Mumbai Realty Prices here.
Published by DalalStreet Business @ 12:59 PM
Fresenius Kabi acquires 100% stake in Dabur Pharma
Monday, April 21, 2008Dabur Pharma has announced that the Burman family, promoters of the Dabur Group has decided to divest its entire stake in Dabur Pharma to Fresenius Kabi, a business segment of Fresenius SE, at a price of Rs 76.50 per share.
Dabur Pharma is the pharmaceutical business of the group and is focused on the attractive global ocology market. It has built up an impressive product portfolio in ocology which is being sold through its global footprint across more than 40 countries including the key markets of US and Europe. Fresenius Kabi is a business segment of the healthcare group Fresenius SE.
Published by DalalStreet Business @ 1:28 PM
Trident Homescapes opens in Chandigarh
OctaMedia Retail has informed us that Abhishek Industries has made its maiden foray in lifestyle retail in India by launching its first store under the brand name 'Trident Homescapes' at Chandigarh. The Trident Homescapes would house a wide and exclusive range of home products capable of turning a home into a lifestyle arena.The Rs 15 billion enterprise and proud winner of awards from leading international retails chains including Wal Mart and J C Penny, Trident Group has launched its first Lifestyle store - Trident Homescapes - in Chandigarh through Abhishek Industries the flagship company of the group.
Published by DalalStreet Business @ 12:00 PM
Satyam to acquire S&V Management Consultants
Satyam Computer Services has agreed to acquire S&V Management Consultants, a Ghent, Belgium-based supply chain management (SCM) consulting firm. The $35.5 million, all-cash purchase significantly reinforces Satyam's supply chain strategy capabilities.
As a part of this transaction, Satyam also acquires an innovative business decision support software called Equazion, a sophisticated supply chain performance management suite that enables business decisions from a macro perspective.
S&V was founded in 1992, and has offices in Belgium and the Netherlands. The $15 million firm develops supply chain strategy and performance, and supply chain process excellence solutions, largely for manufacturing and pharmaceutical companies and public entities. S&V features 60 consultants, all of whom are six sigma-trained and APICS-certified, and fluent in English Dutch, and French.
Published by DalalStreet Business @ 11:54 AM
Subex bags Verizon's excellence award
Subex Systems has been selected as a recipient of the Verizon's 2007 supplier excellence award. The award recognizes Subex for its outstanding effort and achievement in demonstrating performance excellence thro the deployment of its moneta revenue assurance solution across multiple Verizon next-generation services.
Subex's Moneta enables customers like Verizon to maximize revenues by detecting and correcting any issues across the value chain, ensuring that services are properly ordered and billed for and that all revenues are received. By improving data processing accuracy, Subex's customers achieve a solid ROI through the software while improving overall customer satisfaction due to reduced billing and service- related errors. Moneta is recognized as the industry-leading solution for automating critical revenue auditing tasks that promote operational efficiency and sustained profitability.
Published by DalalStreet Business @ 10:53 AM
Suzlon Energy secures orders
Friday, April 18, 2008Suzlon Energy (Tianjin), a wholly owned subsidiary of Suzlon Energy has secured orders totaling nearly 200 MW of capacity for wind farm projects in the P.R. China.
The first order from Ao Lu Jia New Energy Development, calls for the delivery of 148.5 MW of wind turbine capacity through 99 units of the S82 - 1.5 MW turbines for use in three wind farms. Deliveries for the first wind farm are scheduled for shipment during the second quarter of financial year 2008-2009.
Whereas the second order from Beifang Longyuan (North Union) calls for the delivery of 50 MW of wind turbine capacity through 40 units of the S64 - 1.25 MW turbines, scheduled for delivery in the first quarter of financial year 2009-2010.
Published by DalalStreet Business @ 1:19 PM
Virat Crane to demerge its real estate business
Virat Crane Industries has obtained the in-principle approval of the exchange for the demerger of its real estate / infrastructure division into Crane Infrastructure and amalgamation / merger of Durga Dairy with Virat Crane Industries.
The demerger scheme envisages a share issuance of 1 shares of demerged entity namely Crane Infrastructure for every 1 share held by the existing shareholders of the company.
The demerger of real estate / infrastructure division and amalgamation / merger of Durga Dairy with the vompany will take effect after obtaining the order of Honorable High Court of Andhra Pradesh, Hyderabad. The company has initiated the process with reference to the court approval.
Published by DalalStreet Business @ 12:54 PM
Wipro appoints joint CEOs for IT business
Wipro announced changes in the management structure of its IT business and expansion of its board of directors.
Girish Paranjpe, Suresh Senapaty and Suresh Vaswani have been appointed to the board of Wipro. Wipro also re-structured its IT business by appointing Girish Paranjpe and Suresh Vaswani as joint-CEOs.
Girish Paranjpe has been with Wipro since 1990 and has transitioned from leadership roles in the finance function to business leadership roles. Most recently he was the president of the banking, financial services and insurance business unit of the global IT business of Wipro.
Suresh Vaswani has been with Wipro since 1985. Over this period he has held multiple leadership positions, and was most recently president of Wipro Infotech (the India, Middle East and APAC IT business of Wipro) and of global practices (EAS, Testing & TIS).
Published by DalalStreet Business @ 10:07 AM
Shoppers Stop wins emerging market retailer of the year
Wednesday, April 16, 2008Last Month, Shoppers Stop CEO, B Nagesh was honored by being inducted into the World's Retail Hall of Fame. Just a while ago Shoppers Stop has informed us that the company has been awarded the emerging market retailer of the year award, by World Retail Congress at Barcelona.
Hope we will see many more such feathers in the Indian retailers cap.
Published by DalalStreet Business @ 1:32 PM
KEC International wins Power Grid contract
Tuesday, April 15, 2008KEC International has been awarded two separate contracts by Power Grid Corporation of India for supply and construction of 400 KV double circuit (QUAD) Edamon - Muvattupuzha transmission line (part - I & II) in the state of Kerala.
The total value of both the contracts is Rs 155.24 crore. The line is associated with grid strengthening scheme for Kerala I & II of Powergrid Network.
The job involves supply of towers, line materials, erection and commissioning. The total length of both the lines is 150 kms and the project is scheduled to be completed by March 2010.
Published by DalalStreet Business @ 1:21 PM
Aban Offshore contract with Exxon Neftegas
Aban Offshore has informed us that the company has signed a contract with Exxon Neftegas for the deployment of the jack-up rig Murmanskaya Offshore Russia for a 2 well programme. The estimated revenues from the contract (with an estimated duration of approx 160 days) is approximately US$ 34 million.
The deployment is to commence in direct continuation of its present contract which is expected in June 2008.
Published by DalalStreet Business @ 1:19 PM
Infosys Guidance for FY2008-09
We have obtained the Guidance given by the Management of Infosys Technologies for FY2008-09.- For Q1 ending June-30, Income is expected to be Rs 4570 crore - YoY growth of 21%
- EPS is expected to be Rs 20.7, growth of mere 15.2% compared to same quarter previous year
- For the full year Income is expected to be Rs 20,000 crore a 20% growth YoY
- For the full year, EPS is expected to be Rs 92.32 a YoY growth of just 16.3%, which is very disappointing in our opinion
Published by DalalStreet Business @ 9:39 AM
Infosys Results for FY2007-08
We have obtained the results of Infosys Technologies for FY2007-08.- Total Income was Rs 16,692 crore representing a YoY growth of mere 20.1%.
- Net Profit after Tax was at Rs 4,659 crore, a YoY growth of Rs 20.8%
- EPS stands at Rs 81.53
- Final Dividend of Rs 7.25 / share and a special Dividend of Rs 20 / share
- The company's Labor strengths stands at 91,187
Published by DalalStreet Business @ 9:30 AM
Punj Lloyd bags Rs 1864 crore order
Friday, April 11, 2008Punj Lloyd Ltd has informed us that the Company and its subsidiary Punj Lloyd Pte Ltd., Singapore have been awarded projects worth Rs 18640 million.
Sembawang Infrastructure (India) Pvt Ltd (a subsidiary of Sembawang Engineers and Constructors Pte Ltd, Singapore) has been awarded projects worth Rs 970 million.
With the award of above projects, the order backlog for Punj Lloyd Group is Rs 214,092 million. This is the total value of unexecuted orders as on January 01, 2008 and new orders received till date.
Published by DalalStreet Business @ 2:13 PM
Sasken to consider buyback
Sasken Communication Technologies has informed the us that the Board of Directors of the company (scheduled to meet on April 18, 2008) will also consider a proposal for buyback of equity shares. This could be a near-term trigger for the stock after a huge under performance of ~50% (against BSE IT index) in the last three months, but our fundamental concerns remain intact.
Citigroup Analyst in a report said,
Sasken's services business has been significantly impacted by rupee and client-specific challenges, while its products business has gone through challenging times (with no respite in sight). The stock trades close to our target price, and anyThey have a target price of Rs 138 with a SELL High Risk rating on the stock.
move up would provide a more attractive opportunity to sell the stock.
Published by DalalStreet Business @ 1:08 PM
Inflation at 40 Mth High
The Indian inflation touched a record 40 month high to 7.41% mostly by the centralization and rise in prices of Iron and Steel. The annual inflation rate was 5.94% during the corresponding week of the previous year. The Government of India has banned primary exports of Iron and Steel and Cement with immediate effect fearing the collapse of coalition Government.
However, their is a reason to cheer as well, the Indian Industrial Output for the month ended Feb-08 has risen back to 8.5% from 5.3% in Jan-08.
Published by DalalStreet Business @ 12:04 PM
Profit Growth Will Dip - Will the Market?
Thursday, April 10, 2008Citi expects 4Q08 profit growth for the Sensex at 19%, Sensex (ex-Oil) at 11%, and Citi India Universe (ex-oil) at 12%. This is a continuation of the moderation trend of the last few quarters; but ex-oil, it is the most pronounced dip in growth rates over the last few quarters. There is potential downside risk, too – from one-offs, on FX derivatives mark-downs.
The topline should perk up a bit after 5 moderating quarters – 20% up, and relatively broad based across sectors. Margins are however likely to head down; estimate a 90bp dip yoy, and about the same qoq (though there is seasonality), offsetting the top-line buoyancy.
Higher profit growth - Brokerages (46%), Hotels (37%), and Petrochemicals (32%). The offsets - Metals (-8%), Oil & Gas (-26%), and Pharma (3%). Citi expects 20% earnings growth for FY09; but see risks from a slowing economy, higher costs and market risks (FX derivatives, equity markets slowdown). 4Q08 results could be more directional than recent quarters. Unlike in the past, the market seems to be factoring in meaningful downsides, expectations are low, and 'no new bad news could well be good news'
Published by DalalStreet Business @ 5:44 PM
Yes Bank Results
Yes Bank's FY08 results did not disappoint, with net profit growing 112% YoY to Rs2bn (vs our forecast of Rs1.96bn). Recent concerns on forex derivative losses were unfounded and did not hurt 4QFY08 profits. Profit growth was driven by a strong increase in net interest and non-interest income, lower cost/income ratio and partly offset by rising provision charges. Key profitability ratios remain healthy, with ROA of 1.4% and ROE of 19%. After last month's earnings downgrade, we still forecast 38% earnings CAGR over FY08-10ii.
Published by DalalStreet Business @ 12:23 PM
Ranbaxy in hostile takover of Orchid Chemicals ?
Tuesday, April 08, 2008Are promoters of Ranbaxy Labs launching a hostile takeover bid for orchid Chemicals and Pharmaceuticals ? Solrex, a Ranbaxy group company has increased its stake to 11.4% from 8.06% in Oafter market purchases in the first week of April.
Orchid scrip has shot up by 10% and is currently traded at Rs 225 on heavy volumes. As of now Ranbaxy promoters are silent on the issue, but takeover is inevitable.
Published by DalalStreet Business @ 10:46 AM
Tata Communications lose case to Reliance
The district court of Netherlands ruled that Tata Communications must give Flag Telecom, now part of Reliance Communication, access to its landing station in Mumbai, which is owned by Tata Communications, erstwhile VSNL. Tata Communications will be ordered to pay the cost of the proceedings, said the court order.
The dispute between the two companies goes back a few years when Flag accused VSNL of denying it free access to its cable landing station and of therefore having a monopolistic hold on bandwidth prices.
Flag wanted access for enhancing the capacity of its cable system. However, VSNL said that it was not under obligation to grant access under the construction and maintenance agreement between the two parties.
Published by DalalStreet Business @ 8:44 AM
Ashok Leyland march Sales up 27%
Monday, April 07, 2008Sales were up 27% YoY driven by 25% Y/Y increase in truck sales. Bus sales were also robust (+30% YoY). Domestic sales saw a strong pick-up (+20% Y/Y) primarily attributed to low base effect, some element of channel stuffing and deferment of last month sales into March. Exports growth was also quite strong (+128% Y/Y). Company achieved sales of 83,300 units (below management’s target of 86,000) in FY08.
Domestic MHCV sales were up 23% YoY (YTD -11%). We reckon Ashok Leyland gained market share from Tata Motors (March domestic MHCV sales up 17% YoY). Management guided to ~8-10% growth in truck sales for the industry (in line with our forecasts) and ~15% growth for Ashok Leyland in FY09E.
Published by DalalStreet Business @ 3:26 PM
Pyramid Saimira Group to launch 10 films
Pyramid Saimira Theatre has informed us that it will be producing a total of 52 films this year. The company has already completed 6 films in various languages and more than 7 films are under production in various languages. Apart from the film production, the company also is engaged in producing content for television and other modes. It has currently more than three hours of TV content production per day. Towards this, the company announced the production of the first ten Tamil films this fiscal year, thereby becoming the first production house in the world to commence the production of ten movies on one day. The company will invest around Rs 35 - 40 crore towards the production of these ten films.
Published by DalalStreet Business @ 12:29 PM
Nitin Fire acquires 40% stake in Dubai's New Age Company
Friday, April 04, 2008Nitin Fire Protection Industries has acquired 40% stake in a Dubai based fire protection company New Age Company LLC. The stake has been taken in the company's 100% subsidiary Nitin Venture FZE, UAE.
New Age Company has taken several projects like municipality, airport development board, port authority, telecommunication sites, cement plant, Ministry of education and civil defence. It has also got major local civil defence license and registrations with staff over 100 personnel employed by the company.
For year ending financial year 2007-08, the company made net sales of 44 crore and net profit 17%. On this Acquisition CMD comments that this acquisition shall give company good boost in UAE Market. The company expects 20 to 25% growth year on year in this company.
Published by DalalStreet Business @ 3:40 PM
No Assurance by Steel Industry to Hold or Cut HRC Prices
The Steel Ministry called a meeting yesterday with the large domestic steel majors in an effort to convince them to reduce steel prices due to concerns about high inflation. However, according to insiders, the steel industry indicated that they were not in a position to cut prices of hot rolled coils (HRC) due to the surge in raw material
costs.
Tata Steel and RINL currently sell their TMT bars at a premium to the other producers. They have agreed to cut TMT prices by Rs2,000/t in order to bring prices in line with the market. TMT bars are mainly used for construction.
The steel industry agreed to cut prices of galvanized sheets used for roofing in low cost housing by Rs500-1000/t. Sales of this product by the steel majors are limited as they are increasingly focusing on high-end galvanized products.
Published by DalalStreet Business @ 12:27 PM
BHEL - The Best is Behind us
On Feb-21st, our chief research analyst wrote that the Zenith is behind us which was hard to digest then, a reality now.
Over the last 3-4 years BHEL's PAT growth was largely aided by operating leverage and slower than expected sales growth could be made up by EBIT margin improvements. We had expected EBIT margins to peak in FY08 - EBIT margins might have peaked in FY07.
BHEL's FY08P reported PAT at Rs28.1bn up 17% YoY was 14% below CIR estimates on the back of slower order backlog execution in 4QFY08P. 4QFY08P derived Gross Sales was up a measly 6.5% YoY and PAT was down 7% YoY. At this point of time we do not know if 4QFY08P had any exceptional items.
BHEL booked orders to the tune of Rs503bn up 41% YoY ending FY08 with a stupendous order backlog of Rs855bn up 56% YoY. However, it is pertinent to note that only 9,800MW of orders are remaining to be ordered in the XIth plan and as consequence inflows should slow down in FY09E/FY10E.
Published by DalalStreet Business @ 10:37 AM
Ranbaxy launches worlds first Bio-generic recombinant injectible
Thursday, April 03, 2008Ranbaxy Laboratories has announced the launch of BONISTA- Teriparatide injection (recombinant human parathyroid hormone) for the treatment of Osteoporosis, in collaboration with Virchow Biotech, Hyderabad, India. Ranbaxy is the first company to launch this bio generic product in the world.
The product has been indigenously researched at Virchow Biotech and developed with and from the Department of Science and Technology, Government of India. Virchow Biotech, part of the Hyderabad based Rs 600 crore Virchow Group, engages in research, development, manufacture and marketing of a wide range of unique classical biologicals and high value recombinant bio-generie products for serious life-threatening diseases at affordable prices.
Published by DalalStreet Business @ 1:59 PM
Wipro to implement iflex's products
i-flex Solutions has signed an agreement with Wipro under which Wipro will market, implement and support i-flex's products in the Middle East and Egypt. The products include flexcube, i-flex solutions flag ship core banking product suite, and i-flex's analytics offering, an integrated suite of award-winning solutions - Reveleus and Mantas - that help financial institutions maximize profitability, minimize risks and deliver enterprise-wide compliance. Wipro is a global leader in providing technology, software and consulting services.
Published by DalalStreet Business @ 1:03 PM
CII + NIIT to Educate Africans
CII and NIIT have entered into an agreement to help create ICT infrastructure and foster International Software Talent in the African continent. As part of this capacity building and skill development endeavour, NIIT and CII will share high quality education resources from India and involve other appropriate players from the Indian industry to help Africa develop human capital for the global IT industry.
In line with its commitment of providing skilled ICT manpower in the region- NIIT recently launched the State of Art Training campus in Botswana which will accommodate 7000 students in various IT streams by 2010. NIIT now plans to scale up operations and forge partnerships with more Universities and Colleges to extend its IT training offerings for the youth in Africa.
Published by DalalStreet Business @ 10:47 AM
Satyam Computer MOU with CIPET, Hyderabad
Wednesday, April 02, 2008Satyam Computer Services has signed a MoU with Central Institute of Plastics Engineering & Technology (CIPET), Hyderabad, an autonomous Plastics Training & Application Research Institute, under the Ministry of Chemicals and Fertilizers, Government of India, for developing new engineering plastic materials through an Industry-Institute collaborative approach. The collaboration is part of Satyam's strategic initiative of developing a global innovative ecosystem of alliances to provide total engineering solutions to its global customers.
The proposed alliance is aimed at synergizing the product design and development expertise of Satyam Engineering Solutions and application research of CIPET, Hyderabad to develop innovative materials for new products being developed for customers worldwide. This relationship will establish CIPET & Satyam together as a provider of applied research services to meet the needs of the global customers thereby successfully establishing an Industry-Institute partnership.
Published by DalalStreet Business @ 4:08 PM
Infosys-Boeing Award + Royal Orchid Acquisition
Infosys Technologies has informed us that The Boeing Company has awarded it a 2007 boeing performance excellence award (BPEA) for achieving a gold level of performance over the 12-month period. Infosys Technologies was one of fewer than 50 companies out of approximately 10,000 Boeing worldwide suppliers to receive a gold level performance award.
Royal Orchid Hotels has acquired 50% stake in Cosmos Premises. Cosmos Premises is owner of the property i.e. the Galaxy Resorts having 65 rooms-beach resorts, situated in village Utorda in the State of Goa.
Published by DalalStreet Business @ 1:05 PM
