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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.

Sensex Touches 10000 , Nifty 3100

admin — Mon, 30 Mar 2009 03:07:06 +0000

Markets are rallying for last many days because of global clues . The biggest confusion with Investors now is to invest or not . This can be the start of new bull run or it can be a bear market rally which might reverse and there can again be a low made .

My views

Though markets have come long way from 2500-2600 levels , and if you have not invested at that time (before some weeks) , then you have missed some good rally .

But anyways , markets are roaring even now and there are chances of markets going little more up , after which it may again head down and then move sideways for some time or do down again .

If you have to invest for long term now , you must now wait for a dip , and then you can buy your stocks , with tight stop loss around 2850 levels of Nifty (to make it simple)

If Markets move up : Book profit on some position and keep half shares with stop loss at buy price .

If Markets go down : Get out at the SL price and take a small loss , then wait for markets to move down and when there are signs of strength again , then buy fresh , dont forget to participate that time because of fear . Watch moving averages .