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Redington block deal

admin — Wed, 20 Jul 2011 15:43:39 +0000

A block deal of 2.5% equity of Redington India took place at Rs 91.15 per share in yesterday’s trade. T Rowe Price sold 97.8 lakh shares while SBI MF bought 1 crore shares. A block deal of 12% equity took place on July 4 at Rs 91.9 per share.

Redington India promoters Chanrai Investment Corp sold 8% stake, strategic investor sold 4% of 27.71%, Standard Chartered PE bought 9.9% stake. Standard Chartered PE stake in the company is now at 12%. ECL Finance bought 2.1% stake.

The promoters were holding 28.89% stake in the company as of March 31st, which should reduce to 20.89%. Company has always been a management-run company and to reiterate this philosophy the two major shareholders have brought down their respective holdings to below 26%.

StanChart holding of close to 12% may result in it getting a board seat. Currently there are 10 members on the board of Redington India.

Ashok Leyland’s Q1FY12 revenues

admin — Wed, 20 Jul 2011 15:37:47 +0000

Ashok Leyland’s Q1FY12 revenues were in line but net p[rofit was lower than estimates. However, there was positive surprise from margins, which were very healthy at 9.7% due to lower raw material cost. PAT dissapointment came in due to higher financial expenses. Interest cost was higher at 70% (YoY) due to investments of Rs 900 crore in associates and JV’s in FY11.

Its Q1FY12 (YoY) net profit stood down 29% at Rs 86.2 crore Vs Rs 122.6 crore while net sales stood up 6.5% at Rs 2,495 crore Vs Rs 2,347 crore. OPM stood at 9.7% Vs 10% (YoY), as against expectation of 9.3%.

On QoQ basis, the company’s revenues stood down 34% at Rs 2495 crore vs Rs 3828 crore, OPM stood at 9.7% vs 13.3% and PAT stood down 71% at Rs 86.2 crore vs Rs 298 crore. Raw material/sales was flat at 72.1%. Realisation/vehicle stood up 0.4% at 12.94 lakh/unit vs 12.89 lakh/unit. Employee cost was lower at 17% at Rs 249 crore vs Rs 301 crore.

Tata Consultancy Services Q1 FY 12 Results

admin — Wed, 20 Jul 2011 15:35:54 +0000

Positive surprised by strong volume growth especially after disappointment in Q4FY11 :

The strong volume growth of 7.4% QoQ in Q1FY12 came as a positive surprise, especially considering current macro environment concerns and relatively slower volume growth reported by Infosys. Further, higher than expected increase in revenue by 6.3% QoQ to Rs. 10,797 crore in Q1FY12 came on the back of sharp jump in un-billed revenue to Rs.1,637 crore in Q1FY12 from Rs.1,349 crore in Q4FY11. Moreover, the growth was broad based i.e. across geographies and industries; especially we were surprised by double-digit growth in telecom, which was led by huge deal wins in emerging markets. The management believes telecom sector has bottomed out and will gradually improve from here onwards.

Management maintains its stance of strong demand environment despite ongoing macro concerns : The management reiterates that demand environment for offshore IT services is strong. They are witnessing robust demand environment in BFSI industry and European geography which were prime concern areas of the market. The company is currently pursuing 5 large deals in BFSI and 8 large deals in Europe (4 in U.K. and 4 in Continental Europe) currently indicating strong demand environment for IT services. Moreover, the company is able to get price increase in new deals and contracts coming for renewal. Further, majority of large deals the company currently pursuing is discretionary in nature.

Strong volume growth led lower than expected decline in EBITDA margin :

The EBITDA margin declined by 236 bps QoQ to 28.1% in Q1FY12, which is better than our expectation primarily assisted by improvement in utilization rate (including trainees) by 110 bps QoQ to 76.2% in Q1 FY12 led by strong volume growth. The net profit margin came down by 346 bps QoQ to 22.4% in Q1FY12 impacted by increase in tax rate by 674 bps QoQ to 21.6% in Q1FY12.

Cash flow from operations continues to be lower than Infosys; despite relatively significantly higher operating profit : Despite significantly positively surprised at Profit and Loss front, we continue to be disappointed by relatively lower than expected ratio of EBITDA/ Cash Flow from Operations (CFO) especially compared to Infosys. For instance, Infosys EBITDA/CFO stood at 1.31 times in Q1FY12; whereas for TCS ratio stood at 1.94 times in Q1FY12. In other words inspite of having 40% higher EBTIDA than Infosys its CFO is lower by around 5% in Q1FY12.

Bank of Baroda

admin — Tue, 28 Sep 2010 03:33:54 +0000

The government is looking at second tranche of capital infusion this financial year. Bankers have told that the government could be looking at increasing the stake in those public sector banks with shareholding of upto 55%, reports CNBC-TV18 Gopika Gopakumar.

The beneficiaries of this move of the government are likely to be Union Bank, Bank of Baroda, Dena Bank, Oriental Bank of Commerce and Andhra Bank as all of them have less than 55% shareholding.

Bankers say that Union Bank is expected to get capital infusion of Rs 1500 crore, BoB Rs 2500 crore and Dena Bank Rs 600 crore. It is learnt that capital infusion will be in the form of preferential allotment. The first tranche of capital infusion was in June this year.

NuTek India – Buy

admin — Tue, 04 May 2010 01:26:38 +0000

BSE Code : 533015
Being an end to end service provider, Nutek India’s gambit of services ranges from undertaking turnkey infrastructure rollouts including civil & electrical infrastructure,construction, installation and integration of telecom equipment to taking up operation & maintenance contracts. Going forward the mobile technology in India is set to see revolutionary changes with telecom operators going for superior technical rollover to 3G from the existing
2G mobile technology. The telecom operators will have to invest in their network upgradation thereby improving the quality of service being offered to their subscribers as a pre requisite to retain their customer base and build upon the same. For FY10, company is expected to record a topline of Rs 180 cr and bottomline of Rs 14 cr i.e. EPS of Rs 4 on current equity of Rs 17.26 cr having face value as Rs 5/- per share. For FY11 it has the potential to post fully diluted
EPS of almost Rs 5. Buy at declines.

NMDC $ 3 Bn share sale to open March 10

admin — Thu, 04 Mar 2010 03:34:58 +0000

A share sale in state-run miner NMDC Ltd to raise about $ 3 billion will open on March 10, and follow the standard book-building system for Indian offerings reports CNBC-TV18 quoting Sources. A price band for the issue will be announced on March 8, two of the sources, who did not wish to be named as they were not authorised to speak to the media, said on Wednesday.

Retail investors and NMDC employees are likely to get a discount of 5 percent to the discovered price, the sources said.

Infosys unit in Chandigarh SEZ under the Revenue Department’s scanner – Sources

admin — Thu, 04 Mar 2010 03:33:03 +0000

Infosys’ unit in the Chandigarh special economic zone (SEZ) is under the Revenue Department’s scanner, reports CNBC-TV18, quoting sources. The unit located at the Chandigarh Technology Park SEZ was developed by the Chandigarh administration.

Sources say the Revenue Department alleges gross violations of SEZ norms and that structures were in place prior to the SEZ approval. SEZ norms need vacant land before approval. Mundra Port and Essar SEZs in Gujarat faced similar issues. The Empowered Group of Ministers (EGoM) cleared the Mundra Port and Essar SEZ of violations in 2008.

The Revenue Department alleges that existing IT campuses were converted to SEZ and that the SEZ board of approval was misled. The department has called for the withdrawal of SEZ status. Sources say the Commerce and Revenue Secretaries are likely to discuss the matter soon.

When contacted, Infosys says it has complied with the SEZ regulations. The site has been inspected by authorities and full disclosure has been given to the board of approvals. “No existing campuses have been converted to SEZ.”

P&G has filed a case against Hindustan Unilever’s

admin — Thu, 04 Mar 2010 03:29:35 +0000

P&G has filed a case in the Calcutta High Court against Hindustan Unilever’s new ad campaign, which openly challenges the superiority of its product Rin over P&G’s Tide

The battle for market share in laundry segment has spread from pricing to other platforms now making it an open war. P&G has filed a case in the Calcutta High Court against Hindustan Unilever’s new ad campaign, which openly challenges the superiority of its product Rin over P&G’s Tide. CNBC-TV18’s Tanvi Shukla delves deeper on this new form of advertising and traces it back to what triggered the issue.

HUL’s new Rin campaign claims in an advertisement that Rin provides more brightness in comparison to Tide Naturals, which is the new product that P&G launched a couple of months ago in the mass segment positioning it against Rin as well as Wheel.

The reason that triggered this campaign is HULs new found aggression to regain market share and arrest the decline in market share that it has seen specifically in the laundry segment. Also, Tide Natural came up with an advertisement a few weeks ago where it claimed it provided whiteness with a special fragrance. HUL subsequently challenged Tide’s claim in the Chennai High Court. On March 1, the court asked P&G to modify the ad since they were not really able to substantiate the claim. A written judgement is still awaited on this matter.

Meanwhile advertising watchdog ASCI has said it has issued a notice to FMCG major HUL asking it to “substantiate” in 15 days its claim in a TV commercial that its washing powder Rin is better than rival P&G’s Tide.

When contacted, HUL denied receiving any notice from ASCI
and said the Rin commercial is in line with advertising code followed by the industry. “The claim is factual, accurate and substantiated as it is based on laboratory tests done through globally accepted protocols in independent third party laboratories,” an HUL spokesperson said.

A P&G spokesperson, on other hand, said, “We are aware of the disparaging advertisement on air against Tide Naturals and have filed a case against the same. The matter is currently being heard in the court and we are not in a position to comment on the outcome.”

In an interview with CNBC-TV18, Shripad Nadkarni, Founder Director, Marketgate consulting and Harish Bijoor, Brand Consultant & CEO, Harish Bijoor Consults Inc spoke on the issue.

Here is a verbatim transcript of the interview. Also watch the accompanying video.

Q: What did you make of this battle between Rin and Tide? Will the consumer of Rin bite?

Bijoor: The consumer out there is a new consumer today and the consumer wants to have some fun and at the end of the day I do believe this kind of in the eye kind of advertising which pokes fun at the other brand or talks about superiority of one brand over the other tends to work, consumers aren’t really concerned about the fact that possibly that was not the done thing and consumer’s love this and to an extent people tend to talk about it a lot, people have never have comment about the detergent dull detergent advertising are going to be talking about detergent advertising all of a sudden that seems to be the objective.