30 Jan 2009, 0155 hrs IST, ET Bureau
The Satyam story was bad enough to begin with — corporate fraud of this order — Rs 7,800 crore — does no good to the image of either India Inc or the country. But what
followed, and is still unfolding, has been far worse. Almost a month after Raju stunned us with his confession we are nowhere near getting to the bottom of what transpired. Instead the story just gets murkier by the day.
In a twist that is so strange it could pass for something straight out of Ripley’s “Believe It Or Not”, the agencies most competent to investigate the crime — capital markets
regulator SEBI and the Serious Fraud Investigation Office — continue to be denied access to B Ramalinga Raju, the main accused. Instead, the state police, perhaps the agency least qualified or competent to investigate sophisticated financial frauds, is looking into the crime. And, needless to say, are making heavy weather of it. Periodic leaks to the press — whether about the number of employees on the company’s rolls or the genuineness of fixed deposits reportedly held by the company — have only made matters worse.
Yesterday we had the sorry spectacle of the minister for company affairs Prem Chand Gupta publicly expressing his helplessness in the matter citing state jurisdiction. The headquarters of Satyam Computers might be in Hyderabad but the ramifications of the crime go well beyond the state. Financial fraud on this scale is not a matter for the state police but for a federal agency, whether SEBI or SFIO or CBI to investigate. There should be no dispute about the respective jurisdictions of the Centre and the state. Even if the state police can technically claim first right to investigate, surely the central government can intervene. Remember, the same party rules at the Centre and in the state. By not seeking help from SEBI and SFIO, the state CID has ended up giving the impression that it is not fully transparent and non-partisan. It is still not late to remedy the situation.
via:E.T
Thursday, January 29, 2009
Rs. 660-cr bank exposure to Satyam
This includes Rs. 373-crore bank guarantees/credits
HYDERABAD: As many as 18 banks, including public and private and foreign banks, have an exposure of Rs. 660.48 crore to the embattled Satyam Computer Services as on January 8. The details were compiled and sent to the Central Government by the Reserve Bank of India. Besides, the available data indicated an exposure of Rs. 773 crore to Maytas Infra by three banks.
While the loans extended to Satyam came to Rs. 287 crore by six banks, including Citibank, HDFC Bank, HSBC, and ICICI Bank, those who provided bank guarantees/credits to the tune of Rs. 373.47 crore included Bank of America, Bank of Baroda and BNP Paribas.
At least ten banks, mostly those in the public sector, have an investment exposure of Rs. 12.49 crore. The banks were taking necessary steps to safeguard their own interests vis-a-vis their exposure to Satyam, the RBI told the Government.
The RBI enquiries revealed that the IT giant had deposits of Rs. 78 crore by January 8, the day after the erstwhile Chairman, B. Ramalinga Raju, confessed to having fudged the accounts.
HYDERABAD: As many as 18 banks, including public and private and foreign banks, have an exposure of Rs. 660.48 crore to the embattled Satyam Computer Services as on January 8. The details were compiled and sent to the Central Government by the Reserve Bank of India. Besides, the available data indicated an exposure of Rs. 773 crore to Maytas Infra by three banks.
While the loans extended to Satyam came to Rs. 287 crore by six banks, including Citibank, HDFC Bank, HSBC, and ICICI Bank, those who provided bank guarantees/credits to the tune of Rs. 373.47 crore included Bank of America, Bank of Baroda and BNP Paribas.
At least ten banks, mostly those in the public sector, have an investment exposure of Rs. 12.49 crore. The banks were taking necessary steps to safeguard their own interests vis-a-vis their exposure to Satyam, the RBI told the Government.
The RBI enquiries revealed that the IT giant had deposits of Rs. 78 crore by January 8, the day after the erstwhile Chairman, B. Ramalinga Raju, confessed to having fudged the accounts.
Wednesday, January 28, 2009
Promoters of 11 companies pledge shares
28 Jan 2009, 1502 hrs IST, Shailesh Menon, ET Bureau
MUMBAI: A recent equities report by stock brokerage Prabhudas Lilladher has picked eleven companies where promoters have raised money by pledging shares.
As per the poll, the management of KEI Industries (currently trading 0.4% higher at Rs 10.72 ), Nagarjuna Construction (up 6.2% at Rs 52.75), Gayatri Projects (down 0.6% at Rs 95.10), Rolta India (up 2.4% at Rs 84.60), Great Offshore (up 13.7% at Rs 257.55), Bharati Shipyard (up 1.7% at Rs 63), Peninsula Land (up 1.9% at Rs 21), Shree Renuka Sugar (up 2.8% at Rs 72.15), Bombay Rayon (down 2.1% at Rs 93.10), Indage Vintners (up 4.8% at Rs 91) and XL Telecom (up 0.1% at Rs 37.60) have admitted to having pledged promoter shareholding for meeting various working capital needs.
Amongst companies that have reassured the brokerage of not having pledged any promoter shares are Hero Honda, Maruti Suzuki, M&M, ABB, Action Construction, Jyoti Structures, Sujana Towers, Gammon India, Hindustan Construction, IVRCL, Patel Engineering and Anant Raj Industries.
As for companies that have disclosed the percentage of shares pledged, KEI Industries and Nagarjuna Construction have pledged 6% and 12% respectively while Rolta India has pledged 2.5% to raise capital. Among shipping companies, Great Offshore and Bharati Shipyard have pledged 14.8% and 5.4% respectively. Real estate company Peninsula Land has pledged 14% while promoters of sugar manufacturer Shree Renuka Sugar has pledged 10%. Promoters of XL Telecom have pledged 20% while Bombay Rayon owners have kept shares aggregating to 1.4% as collateral for raising debt.
As reported earlier by ET, investors may not very comfortable with promoters who have borrowed money to fund personal needs, or unrelated diversification. "If the promoter has borrowed money for long-term benefits of the company, investors shouldn't be really worried. If the money is for personal use, or unrelated diversification, the stock will see a sell-off," a Mumbai-based broker said.
"Disclosures about pledged shares will trigger a negative reaction from investors if it is revealed that the promoters are highly leveraged. It may also send out signals that the promoter is not financially strong," said a senior executive of IL&FS, one of the largest promoter financiers in the country.
According to financiers, promoter financing (loan against shares) was rampant till a year ago when funds were cheap. Promoters simply pledged a part of their holdings in the company for a set term and interest rate. The tenure of the loan - mostly short-term - would vary between three months to two years, at an interest rate in the range of 20-30% per annum.
MUMBAI: A recent equities report by stock brokerage Prabhudas Lilladher has picked eleven companies where promoters have raised money by pledging shares.
As per the poll, the management of KEI Industries (currently trading 0.4% higher at Rs 10.72 ), Nagarjuna Construction (up 6.2% at Rs 52.75), Gayatri Projects (down 0.6% at Rs 95.10), Rolta India (up 2.4% at Rs 84.60), Great Offshore (up 13.7% at Rs 257.55), Bharati Shipyard (up 1.7% at Rs 63), Peninsula Land (up 1.9% at Rs 21), Shree Renuka Sugar (up 2.8% at Rs 72.15), Bombay Rayon (down 2.1% at Rs 93.10), Indage Vintners (up 4.8% at Rs 91) and XL Telecom (up 0.1% at Rs 37.60) have admitted to having pledged promoter shareholding for meeting various working capital needs.
Amongst companies that have reassured the brokerage of not having pledged any promoter shares are Hero Honda, Maruti Suzuki, M&M, ABB, Action Construction, Jyoti Structures, Sujana Towers, Gammon India, Hindustan Construction, IVRCL, Patel Engineering and Anant Raj Industries.
As for companies that have disclosed the percentage of shares pledged, KEI Industries and Nagarjuna Construction have pledged 6% and 12% respectively while Rolta India has pledged 2.5% to raise capital. Among shipping companies, Great Offshore and Bharati Shipyard have pledged 14.8% and 5.4% respectively. Real estate company Peninsula Land has pledged 14% while promoters of sugar manufacturer Shree Renuka Sugar has pledged 10%. Promoters of XL Telecom have pledged 20% while Bombay Rayon owners have kept shares aggregating to 1.4% as collateral for raising debt.
As reported earlier by ET, investors may not very comfortable with promoters who have borrowed money to fund personal needs, or unrelated diversification. "If the promoter has borrowed money for long-term benefits of the company, investors shouldn't be really worried. If the money is for personal use, or unrelated diversification, the stock will see a sell-off," a Mumbai-based broker said.
"Disclosures about pledged shares will trigger a negative reaction from investors if it is revealed that the promoters are highly leveraged. It may also send out signals that the promoter is not financially strong," said a senior executive of IL&FS, one of the largest promoter financiers in the country.
According to financiers, promoter financing (loan against shares) was rampant till a year ago when funds were cheap. Promoters simply pledged a part of their holdings in the company for a set term and interest rate. The tenure of the loan - mostly short-term - would vary between three months to two years, at an interest rate in the range of 20-30% per annum.
GAIL net down 59 per cent
28 Jan 2009, 1726 hrs IST, IANS
State-owned gas utility GAIL India Ltd Wednesday said its net profit declined 59.22 per cent to Rs.2.53 billion (Rs.253 crore/$51.5 million) in the quarter ended Dec 31 from Rs.6.21 billion a year ago.
However, the company's total Income rose to Rs.60.46 billion during the period under review from Rs.44.83 billion in the corresponding quarter last year.
GAIL also said employee cost-to-company increased following a pay revision.
State-owned gas utility GAIL India Ltd Wednesday said its net profit declined 59.22 per cent to Rs.2.53 billion (Rs.253 crore/$51.5 million) in the quarter ended Dec 31 from Rs.6.21 billion a year ago.
However, the company's total Income rose to Rs.60.46 billion during the period under review from Rs.44.83 billion in the corresponding quarter last year.
GAIL also said employee cost-to-company increased following a pay revision.
ONGC profit dives and misses f'cast on crude slump
28 Jan 2009, 1811 hrs IST, REUTERS
Country's largest energy explorer, Oil and Natural Gas Corp (ONGC), missed forecasts as quarterly profit plummeted more than 43 percent, hit by a slump in crude oil prices
and a hefty subsidy bill.
State-run ONGC, which sells oil from domestic output at a big discount to refiners to keep fuel prices low, will in coming quarters see cash flow
blunted by its costly acquisition of Russia-focused Imperial Energy, analysts said.
ONGC's December quarter net profit fell to 24.75 billion rupees ($506 million) from 43.7 billion rupees a year ago. A Reuters poll had predicted net profit of 40.11 billion rupees. "ONGC's net was hit mainly by falling crude, but it missed estimates as the subsidy sharing burden was way higher than consensus," said Prayesh Jain, an analyst with India Infoline.
Jain said he had expected the firm's subsidy burden for the quarter to come in at 30 billion rupees, much lower than the 48.99 billion rupees ONGC reported. It stood at 60.8 billion rupees a year ago. "It's all in the hands of government. It's not a good sign for the stock if we keep seeing subsidy sharing numbers like this one," Jain said.
ONGC, India's third-largest listed company with a market value of $27.4 billion, agreed to pay 1.3 billion pounds for Imperial when oil prices were near $130 a barrel. Crude prices have since dropped back to well below $50. Fiscal third-quarter sales fell 17.8 per cent to 124.36 billion rupees.
Gross realisation from oil sales fell to $59.02 per barrel from $91.41 a year ago, while net proceeds after subsidies fell to $33.99 from $54.74, ONGC said. Oil output dropped to 6.49 million tonnes from 6.62 million tonnes in the year-ago quarter.
"Lower crude, declining production, fuel price cuts are also a concern for ONGC," Jain said. Ahead of the result, ONGC shares closed 3.42 per cent up at 642.25 rupees, while the main BSE index rose 2.81 per cent. Shares in ONGC fell 35.5 per cent in the December quarter, in line with the sector sub-index but underperforming the benchmark index's 25 per cent drop.
Country's largest energy explorer, Oil and Natural Gas Corp (ONGC), missed forecasts as quarterly profit plummeted more than 43 percent, hit by a slump in crude oil prices
and a hefty subsidy bill.
State-run ONGC, which sells oil from domestic output at a big discount to refiners to keep fuel prices low, will in coming quarters see cash flow
blunted by its costly acquisition of Russia-focused Imperial Energy, analysts said.
ONGC's December quarter net profit fell to 24.75 billion rupees ($506 million) from 43.7 billion rupees a year ago. A Reuters poll had predicted net profit of 40.11 billion rupees. "ONGC's net was hit mainly by falling crude, but it missed estimates as the subsidy sharing burden was way higher than consensus," said Prayesh Jain, an analyst with India Infoline.
Jain said he had expected the firm's subsidy burden for the quarter to come in at 30 billion rupees, much lower than the 48.99 billion rupees ONGC reported. It stood at 60.8 billion rupees a year ago. "It's all in the hands of government. It's not a good sign for the stock if we keep seeing subsidy sharing numbers like this one," Jain said.
ONGC, India's third-largest listed company with a market value of $27.4 billion, agreed to pay 1.3 billion pounds for Imperial when oil prices were near $130 a barrel. Crude prices have since dropped back to well below $50. Fiscal third-quarter sales fell 17.8 per cent to 124.36 billion rupees.
Gross realisation from oil sales fell to $59.02 per barrel from $91.41 a year ago, while net proceeds after subsidies fell to $33.99 from $54.74, ONGC said. Oil output dropped to 6.49 million tonnes from 6.62 million tonnes in the year-ago quarter.
"Lower crude, declining production, fuel price cuts are also a concern for ONGC," Jain said. Ahead of the result, ONGC shares closed 3.42 per cent up at 642.25 rupees, while the main BSE index rose 2.81 per cent. Shares in ONGC fell 35.5 per cent in the December quarter, in line with the sector sub-index but underperforming the benchmark index's 25 per cent drop.
Glenmark down 28% on bad results
28 Jan 2009, 1138 hrs IST, ET Bureau
Shares of Glenmark Pharmaceuticals plunged 28% on Wednesday as investors started to discount the bad results posted by the company for the third quarter.
The share touched a low of Rs134.25 and high of Rs 175 before slipping to Rs 134.60 at 11 am, down Rs 53.55 or 28.46%.
The drug firm had forecast net profit of $210 million on revenue of $673 million for the year to March 2009, including $69 million in outlicensing fees. For 2009/10, net profit was seen at $282 million on revenue of $932 million.
The company had forecast $69 million in milestone fees for the year to March 2009.
Glenmark Pharmaceuticals Ltd is unlikely to meet the milestone fee forecast for FY09, an official had said after the firm's quarterly net profit dropped a worse-than-expected 71 per cent.
Shares of Glenmark Pharmaceuticals plunged 28% on Wednesday as investors started to discount the bad results posted by the company for the third quarter.
The share touched a low of Rs134.25 and high of Rs 175 before slipping to Rs 134.60 at 11 am, down Rs 53.55 or 28.46%.
The drug firm had forecast net profit of $210 million on revenue of $673 million for the year to March 2009, including $69 million in outlicensing fees. For 2009/10, net profit was seen at $282 million on revenue of $932 million.
The company had forecast $69 million in milestone fees for the year to March 2009.
Glenmark Pharmaceuticals Ltd is unlikely to meet the milestone fee forecast for FY09, an official had said after the firm's quarterly net profit dropped a worse-than-expected 71 per cent.
Short covering, global cues extend market pullback rally
28 Jan 2009, Wednesday.
The pull-back rally on Dalal Street continued for the second straight day Wednesday, as traders covered short positions ahead of January F & O series expiry.
Positive tidings from global markets ahead of the outcome of US FOMC’s two-day meet boosted sentiments further. Rate sensitive sectors like realty, auto and banks
surged on renewed expectations of interest rate cuts by the Reserve Bank of India.
The Bombay Stock Exchange’s Sensex closed at 9,257.47, higher by 253.39 points or 2.81 per cent over the previous close. The index touched an intra-day high of 9270.75 and low of 9053.80.
National Stock Exchange’s Nifty ended 2849.50, up 3.01 per cent or 78.15 points. The broader index hit an intra-day high of 2855.40 and low of 2765.60.
“With the kind of closing we saw today, expiry is expected to be strong and Nifty may test 2970 levels. High beta stocks were in demand and may continue to lead the rally. A lot of negative was built in frontline stocks and as things were not so bad traders covered shorts. On the FOMC meet, we may react the way US markets react to it,” said Sharmila Joshi, vice-president, institutional sales, Systematix Shares.
Market breadth was positive on the BSE with 1,403 advances and 1,025 declines. The BSE Midcap Index was up 1.64 per cent and BSE Smallcap Index climbed 1.18 per cent higher.
All the sectoral indices were in the green. BSE Realty Index was up 6.32 per cent, BSE Metal Index moved up 4.44 per cent, BSE Bankex gained 3.79 per cent and BSE Oil&gas Index advanced 3.76 per cent.
Ranbaxy Laboratories (7.56%), ICICI Bank (7.08%), DLF (6.63%), Larsen & Toubro (5.20%) and Tata Motors (4.60%) were the top Sensex gainers.
Maruti Suzuki (-3.15%), Reliance Communications (-3.03%), Sterlite Industries (-0.41%) were the only losers.
European markets were higher ahead of the US FOMC meet outcome. FTSE was up 1.75 per cent, CAC 40 moved 2.55 per cent higher and DAX advanced 2.65 per cent.
US stock futures indicated higher opening on expectations of some positive steps the US Federal Reserve to revive the economy. The central bank has already slashed interest rates to near zero. Dow Jones futures were up 1.89 per cent, Nasdaq
advanced 2.30 per cent and S&P 500 moved up 2.23 per cent.
Results based stock movements
GAIL’s Q3 standalone net sales for the quarter to Dec 31, 2008 were at Rs 5,811.65 crore versus Rs 4,298.33 crore in the same period a year ago. Net profit was down at Rs 253.36 crore versus Rs 621.32 crore on-year. The scrip ended 6.63 per cent higher.
HPCL reported a net loss of Rs 422 crore for the third quarter on net sales of Rs 29,387 crore. The scrip ended down 2.87 per cent.
Tata Steel’s standalone net profit for third quarter was down by 56.37 per cent at Rs 466.24 crore from Rs 1068.58 crore year earlier. Net sales declined to Rs 4,735.68 crore from Rs 4,973.92 crore. The stock, however, closed 2.64 per cent higher.
NMDC Q3 net profit was up at Rs 1,424.9 crore from Rs 968.2 crore year ago. Net sales stood at Rs 2,337.5 crore versus Rs 1,623.6 crore in the Oct-Dec quarter of 2007.
JSW Steel reported consolidated net loss of Rs 187.8 crore for the quarter to December 2008 against profit of Rs 297.3 crore in the same quarter a year ago. Despite this, the stock ended 5.44 per cent higher.
Via:E.T
The pull-back rally on Dalal Street continued for the second straight day Wednesday, as traders covered short positions ahead of January F & O series expiry.
Positive tidings from global markets ahead of the outcome of US FOMC’s two-day meet boosted sentiments further. Rate sensitive sectors like realty, auto and banks
surged on renewed expectations of interest rate cuts by the Reserve Bank of India.
The Bombay Stock Exchange’s Sensex closed at 9,257.47, higher by 253.39 points or 2.81 per cent over the previous close. The index touched an intra-day high of 9270.75 and low of 9053.80.
National Stock Exchange’s Nifty ended 2849.50, up 3.01 per cent or 78.15 points. The broader index hit an intra-day high of 2855.40 and low of 2765.60.
“With the kind of closing we saw today, expiry is expected to be strong and Nifty may test 2970 levels. High beta stocks were in demand and may continue to lead the rally. A lot of negative was built in frontline stocks and as things were not so bad traders covered shorts. On the FOMC meet, we may react the way US markets react to it,” said Sharmila Joshi, vice-president, institutional sales, Systematix Shares.
Market breadth was positive on the BSE with 1,403 advances and 1,025 declines. The BSE Midcap Index was up 1.64 per cent and BSE Smallcap Index climbed 1.18 per cent higher.
All the sectoral indices were in the green. BSE Realty Index was up 6.32 per cent, BSE Metal Index moved up 4.44 per cent, BSE Bankex gained 3.79 per cent and BSE Oil&gas Index advanced 3.76 per cent.
Ranbaxy Laboratories (7.56%), ICICI Bank (7.08%), DLF (6.63%), Larsen & Toubro (5.20%) and Tata Motors (4.60%) were the top Sensex gainers.
Maruti Suzuki (-3.15%), Reliance Communications (-3.03%), Sterlite Industries (-0.41%) were the only losers.
European markets were higher ahead of the US FOMC meet outcome. FTSE was up 1.75 per cent, CAC 40 moved 2.55 per cent higher and DAX advanced 2.65 per cent.
US stock futures indicated higher opening on expectations of some positive steps the US Federal Reserve to revive the economy. The central bank has already slashed interest rates to near zero. Dow Jones futures were up 1.89 per cent, Nasdaq
advanced 2.30 per cent and S&P 500 moved up 2.23 per cent.
Results based stock movements
GAIL’s Q3 standalone net sales for the quarter to Dec 31, 2008 were at Rs 5,811.65 crore versus Rs 4,298.33 crore in the same period a year ago. Net profit was down at Rs 253.36 crore versus Rs 621.32 crore on-year. The scrip ended 6.63 per cent higher.
HPCL reported a net loss of Rs 422 crore for the third quarter on net sales of Rs 29,387 crore. The scrip ended down 2.87 per cent.
Tata Steel’s standalone net profit for third quarter was down by 56.37 per cent at Rs 466.24 crore from Rs 1068.58 crore year earlier. Net sales declined to Rs 4,735.68 crore from Rs 4,973.92 crore. The stock, however, closed 2.64 per cent higher.
NMDC Q3 net profit was up at Rs 1,424.9 crore from Rs 968.2 crore year ago. Net sales stood at Rs 2,337.5 crore versus Rs 1,623.6 crore in the Oct-Dec quarter of 2007.
JSW Steel reported consolidated net loss of Rs 187.8 crore for the quarter to December 2008 against profit of Rs 297.3 crore in the same quarter a year ago. Despite this, the stock ended 5.44 per cent higher.
Via:E.T
Sunday, January 25, 2009
Vijay Mallya pledges big chunk of United Spirits Shares to fund KFA
26 Jan 2009, 0203 hrs IST, ET Bureau
BANGALORE / MUMBAI: United Breweries Holdings (UBHL) — the investment vehicle of Vijay Mallya — has given about 81% of its stake in whisky maker United Spirits (USL) as corporate guarantee to help loss-making group firm Kingfisher Airlines raise money for expansion plans. Of around 34% that Mr Mallya owns in USL through UBHL, around 27.8% has been provided as guarantee to lenders such as IDFC, IL&FS, Citigroup and ICICI Bank.
USL, which was in the spotlight last week after a poor performance and a steep fall in stock price, has also pledged about 17.2% of its shares to raise money for the acquisition of Shaw Wallace & Co and the UK-based Whyte & Mackay. Of this, 12.7% comprises treasury stock, which resulted from the merger of McDowell & Co and Herbertsons and is being held in a trust.
Another 4.5% held in USL by its subsidiaries has also been pledged with lenders.
These two moves have helped the beer-to-real estate UB group raise around Rs 6,900 crore to fund USL’s acquisitions. Kingfisher Airlines has also used the corporate guarantee to raise money for its expansion plans and to buy out Deccan Aviation. The pledges and the corporate guarantee comprise about 44% of USL’s fully-diluted equity base after the Shaw Wallace merger.
Speaking to ET, Mr Mallya sought to douse any concerns among investors.
“Even speculation must have some logic. My shares are provided as collateral or top-up securities and lenders will look at it only if the company and Mr Mallya are unable to meet obligations. I have not raised a single rupee in cash by pledging the shares. The loans are all backed by robust assets,” Mr Mallya told ET. The USL shares closed at Rs 478 last week, down from 52-week high of Rs 1,873.
Recent developments in the Indian corporate scene have raised serious concerns among investors over shares of listed companies pledged by promoters with lenders.
Normally, these pledges are done to raise money for investment in other projects of the promoters. Very often, lenders also ask promoters to pledge some of their personal stake when the companies are borrowing a large amount for a big project.
Last year, promoters of three major companies faced huge problems when the stock prices of their companies fell causing lenders to demand more margin money. When the promoters were unable to cough up, lenders dumped the pledged stocks in the market causing the promoter shareholding in the company to drop substantially. This could be dangerous in cases where the promoter shareholding is low and when the company is being coveted by rivals.
K Raghavendra Rao of Orchid Chemicals, Vijay Sheth of Great Offshore and B Ramalinga Raju of Satyam Computer were the promoters who saw a dramatic and substantial fall in their holdings when they could not pay up and lenders dumped the shares in the market.
Market regulator Sebi has recently stepped in to stipulate that promoters will have to periodically disclose the shares pledged by promoters in listed companies to stock exchanges . Sebi wants more transparency by promoters in these matters and is worried that small investors will suffer due to the intense volatility.
Investor concern also revolves around the UB group’s loss-making airline Kingfisher. The company has large accumulated losses and is facing severe competition from other airlines and from cheaper means of transport such as railways.
But Mr Mallya added that Kingfisher Airlines’ monthly losses are down to Rs 5 crore from Rs 75 crore mid-last year. “There is a lot of potential investor interest in the airline company,” Mr Mallya said, while explaining that he could unlock $100 million by trading in aircraft delivery slots if needed. India’s largest airline by market share, Kingfisher has been in the market to raise around $400 million. Kingfisher Airlines, with a 52-week high of Rs 206.70, ended at Rs 30.80 on Friday.
The shares pledged by USL have been done on certain financial covenants — like USL’s performance guarantees such as debt to EBITDA ratio — with the lenders. It will not trigger margin call pressures in a falling market unless there is a breach of any significant financial covenant.
Last week, USL shares plummeted more than 32% after the company’s third-quarter net reported 66% drop taking the street by surprise. UB group CFO Ravi Nedungadi says that USL is performing well within the parameters stipulated by lenders.
USL also has the comfort of Rs 3,135-crore bulk scotch inventory and a brand arsenal to support the Rs 6,900-crore loan, which include Rs 850-crore working loan.
Mr Mallya added: “Since acquisition, Whyte & Mackay’s bulk scotch inventory valuation has risen 49% to touch £457 million in the December quarter. USL’s brands together have seen increase of 10 million cases in volume sales during the first nine months, which is a record.”
USL has no significant loan repayment this fiscal. The company needs to throw up Rs 582 crore towards W&M (Rs 452 crore) and Shaw Wallace (Rs 109 crore) buyouts in the next fiscal, and Rs 1,415 crore during FY11.
Mr Mallya has been in discussion with global drinks giant Diageo and Pernod Ricard for selling USL treasury stocks at a significant premium. There is also a deleveraging option through divestment of 49% stake in Glasgow-based Whyte & Mackay, which may no be required immediately if USL shares could be placed with stratgic investor.
Via:E.T
BANGALORE / MUMBAI: United Breweries Holdings (UBHL) — the investment vehicle of Vijay Mallya — has given about 81% of its stake in whisky maker United Spirits (USL) as corporate guarantee to help loss-making group firm Kingfisher Airlines raise money for expansion plans. Of around 34% that Mr Mallya owns in USL through UBHL, around 27.8% has been provided as guarantee to lenders such as IDFC, IL&FS, Citigroup and ICICI Bank.
USL, which was in the spotlight last week after a poor performance and a steep fall in stock price, has also pledged about 17.2% of its shares to raise money for the acquisition of Shaw Wallace & Co and the UK-based Whyte & Mackay. Of this, 12.7% comprises treasury stock, which resulted from the merger of McDowell & Co and Herbertsons and is being held in a trust.
Another 4.5% held in USL by its subsidiaries has also been pledged with lenders.
These two moves have helped the beer-to-real estate UB group raise around Rs 6,900 crore to fund USL’s acquisitions. Kingfisher Airlines has also used the corporate guarantee to raise money for its expansion plans and to buy out Deccan Aviation. The pledges and the corporate guarantee comprise about 44% of USL’s fully-diluted equity base after the Shaw Wallace merger.
Speaking to ET, Mr Mallya sought to douse any concerns among investors.
“Even speculation must have some logic. My shares are provided as collateral or top-up securities and lenders will look at it only if the company and Mr Mallya are unable to meet obligations. I have not raised a single rupee in cash by pledging the shares. The loans are all backed by robust assets,” Mr Mallya told ET. The USL shares closed at Rs 478 last week, down from 52-week high of Rs 1,873.
Recent developments in the Indian corporate scene have raised serious concerns among investors over shares of listed companies pledged by promoters with lenders.
Normally, these pledges are done to raise money for investment in other projects of the promoters. Very often, lenders also ask promoters to pledge some of their personal stake when the companies are borrowing a large amount for a big project.
Last year, promoters of three major companies faced huge problems when the stock prices of their companies fell causing lenders to demand more margin money. When the promoters were unable to cough up, lenders dumped the pledged stocks in the market causing the promoter shareholding in the company to drop substantially. This could be dangerous in cases where the promoter shareholding is low and when the company is being coveted by rivals.
K Raghavendra Rao of Orchid Chemicals, Vijay Sheth of Great Offshore and B Ramalinga Raju of Satyam Computer were the promoters who saw a dramatic and substantial fall in their holdings when they could not pay up and lenders dumped the shares in the market.
Market regulator Sebi has recently stepped in to stipulate that promoters will have to periodically disclose the shares pledged by promoters in listed companies to stock exchanges . Sebi wants more transparency by promoters in these matters and is worried that small investors will suffer due to the intense volatility.
Investor concern also revolves around the UB group’s loss-making airline Kingfisher. The company has large accumulated losses and is facing severe competition from other airlines and from cheaper means of transport such as railways.
But Mr Mallya added that Kingfisher Airlines’ monthly losses are down to Rs 5 crore from Rs 75 crore mid-last year. “There is a lot of potential investor interest in the airline company,” Mr Mallya said, while explaining that he could unlock $100 million by trading in aircraft delivery slots if needed. India’s largest airline by market share, Kingfisher has been in the market to raise around $400 million. Kingfisher Airlines, with a 52-week high of Rs 206.70, ended at Rs 30.80 on Friday.
The shares pledged by USL have been done on certain financial covenants — like USL’s performance guarantees such as debt to EBITDA ratio — with the lenders. It will not trigger margin call pressures in a falling market unless there is a breach of any significant financial covenant.
Last week, USL shares plummeted more than 32% after the company’s third-quarter net reported 66% drop taking the street by surprise. UB group CFO Ravi Nedungadi says that USL is performing well within the parameters stipulated by lenders.
USL also has the comfort of Rs 3,135-crore bulk scotch inventory and a brand arsenal to support the Rs 6,900-crore loan, which include Rs 850-crore working loan.
Mr Mallya added: “Since acquisition, Whyte & Mackay’s bulk scotch inventory valuation has risen 49% to touch £457 million in the December quarter. USL’s brands together have seen increase of 10 million cases in volume sales during the first nine months, which is a record.”
USL has no significant loan repayment this fiscal. The company needs to throw up Rs 582 crore towards W&M (Rs 452 crore) and Shaw Wallace (Rs 109 crore) buyouts in the next fiscal, and Rs 1,415 crore during FY11.
Mr Mallya has been in discussion with global drinks giant Diageo and Pernod Ricard for selling USL treasury stocks at a significant premium. There is also a deleveraging option through divestment of 49% stake in Glasgow-based Whyte & Mackay, which may no be required immediately if USL shares could be placed with stratgic investor.
Via:E.T
Thursday, January 22, 2009
Reliance Q3 net falls 8.8%, first drop in 3 years
22 Jan 2009, 1639 hrs IST, REUTERS
India's largest listed company, Reliance Industries Ltd, said its quarterly profit fell 8.8 percent, its first drop in three years, but beat forecasts as refining margins did not fall as much as expected. The petrochemical and refining giant reported a net profit of Rs 3,501 crore ($713 million) for its fiscal third quarter ended December 31, compared with Rs 3,837 crore excluding one-off gains reported a year earlier.
A Reuters poll had forecast a net profit of 30.98 billion rupees.
The company is set to get an earnings boost when it starts pumping 30-40 million cubic metres of natural gas a day from its deep-sea fields off India's east coast in the second half of February.
Ahead of the results, shares in Reliance, which has a market value of around $36 billion, closed up 1.21 percent at Rs 1,132.95 in a Mumbai market that rose 0.4 percent.
The stock fell 37 percent in the December quarter, more than a 25 percent drop in the benchmark index and 33 percent loss in the sector index.
India's largest listed company, Reliance Industries Ltd, said its quarterly profit fell 8.8 percent, its first drop in three years, but beat forecasts as refining margins did not fall as much as expected. The petrochemical and refining giant reported a net profit of Rs 3,501 crore ($713 million) for its fiscal third quarter ended December 31, compared with Rs 3,837 crore excluding one-off gains reported a year earlier.
A Reuters poll had forecast a net profit of 30.98 billion rupees.
The company is set to get an earnings boost when it starts pumping 30-40 million cubic metres of natural gas a day from its deep-sea fields off India's east coast in the second half of February.
Ahead of the results, shares in Reliance, which has a market value of around $36 billion, closed up 1.21 percent at Rs 1,132.95 in a Mumbai market that rose 0.4 percent.
The stock fell 37 percent in the December quarter, more than a 25 percent drop in the benchmark index and 33 percent loss in the sector index.
Divi's Labs bounces back sharply from 52-week low ahead of results
Divi's Laboratories surged 7.25% to Rs 985 at 13:32 IST on BSE, on bargain hunting following a three-day 26% slide.
The stock lost 8.54% to a 52-week low of Rs 840 in intra-day trade. Divi's Laboratories will declare its Q3 results on 24 January 2009.
Meanwhile, the BSE Sensex was up 41.95 points, or 0.48%, to 8,821.12.
On BSE, 5.41 lakh shares were traded in the counter. The stock had an average daily volume of 26,634 shares in the past one quarter.
The stock hit a high of Rs 999 so far during the day. The stock hits a low of Rs 840 so far during day, which is 52-week low for the counter. The stock hit a 52-week high of Rs 1634.95 on 18 June 2008.
Divi's Laboratories rebounded in volatile trade today, after sliding a little over 26% to Rs 840 in intraday trade today, 22 January 2009 from a recent high of Rs 1135.35 on 16 January 2009.
The company's current equity is Rs 12.95 crore. Face value per share is Rs 2.
The current price of Rs 985 discounts the company's Q2 September 2008 annualized EPS of Rs 85.12, by a PE multiple of 11.57.
The company's net profit surged 50.9% to Rs 137.68 crore on 36.6% increase in net sales to 331.22 Q2 September 2008 over Q2 September 2007.
Divi's Labs is engaged in research and development of pharmaceuticals. The company is the largest manufacturer of some peptide reagents and protected amino acids worldwide.
The stock lost 8.54% to a 52-week low of Rs 840 in intra-day trade. Divi's Laboratories will declare its Q3 results on 24 January 2009.
Meanwhile, the BSE Sensex was up 41.95 points, or 0.48%, to 8,821.12.
On BSE, 5.41 lakh shares were traded in the counter. The stock had an average daily volume of 26,634 shares in the past one quarter.
The stock hit a high of Rs 999 so far during the day. The stock hits a low of Rs 840 so far during day, which is 52-week low for the counter. The stock hit a 52-week high of Rs 1634.95 on 18 June 2008.
Divi's Laboratories rebounded in volatile trade today, after sliding a little over 26% to Rs 840 in intraday trade today, 22 January 2009 from a recent high of Rs 1135.35 on 16 January 2009.
The company's current equity is Rs 12.95 crore. Face value per share is Rs 2.
The current price of Rs 985 discounts the company's Q2 September 2008 annualized EPS of Rs 85.12, by a PE multiple of 11.57.
The company's net profit surged 50.9% to Rs 137.68 crore on 36.6% increase in net sales to 331.22 Q2 September 2008 over Q2 September 2007.
Divi's Labs is engaged in research and development of pharmaceuticals. The company is the largest manufacturer of some peptide reagents and protected amino acids worldwide.
Coromandel Fertilizers on strong results
Coromandel Fertilizers soared 13.12% to Rs 103 on BSE, after the company posted 76.61% surge in net profit to Rs 132.58 crore in Q3 December 2008 over Q3 December 2007.
The stock hit a high of Rs 104.95 and a low of Rs 92.20 so far during the day.
The mid cap company's current equity is Rs 27.98 crore. Face value per share is Rs 2.
The current price of Rs 103 discounts the company's Q2 September 2008 annualized EPS of Rs 52.15, by a PE multiple of 1.98.
Coromandel Fertilizers' net sales jumped 289.64% to Rs 3726.25 crore in Q3 December 2008 over Q3 December 2007. The company announced the results after trading hours on Wednesday, 21 January 2009.
Coromandel Fertilizers, a part of the Murugappa Group of companies is a leading manufacturer of a wide range of fertilizers and pesticides. The company produces phosphatic fertilizers, plant protection chemicals, specialty nutrients, and sulphur bentonite, potash.
The stock hit a high of Rs 104.95 and a low of Rs 92.20 so far during the day.
The mid cap company's current equity is Rs 27.98 crore. Face value per share is Rs 2.
The current price of Rs 103 discounts the company's Q2 September 2008 annualized EPS of Rs 52.15, by a PE multiple of 1.98.
Coromandel Fertilizers' net sales jumped 289.64% to Rs 3726.25 crore in Q3 December 2008 over Q3 December 2007. The company announced the results after trading hours on Wednesday, 21 January 2009.
Coromandel Fertilizers, a part of the Murugappa Group of companies is a leading manufacturer of a wide range of fertilizers and pesticides. The company produces phosphatic fertilizers, plant protection chemicals, specialty nutrients, and sulphur bentonite, potash.
Educomp rebounds smartly on filing police complaint
Educomp Solutions jumped 9.97% to Rs 1688 at 12:36 IST on BSE, on 21st Jan'09 (Latter at the day end it touched Rs:1800)after the company filed a complaint with the Economic Offences Wing of the Delhi police against alleged reports that the company's accounts have been fudged to boost share price.
The stock had on 21 January 2009 hit a 52-week low of Rs 1375 on BSE as media reports resurfaced about promoter shareholding in the company, fixed assets, investment in subsidiaries and other ancillary matters. However the stock recouped some losses to settle with 22.44% loss to Rs 1534.90. The stock hit a 52-week high of Rs 4799.70 on 21 January 2008.
The stock hit a high of Rs 1790 and a low of Rs 1534.90 so far during day.
Educomp Solutions on Wednesday, 21 January 2009 after trading hours said that the company has filed a police complaint with Additional Commissioner of Police, Economic Offences Wing, Crime Branch, New Delhi to identify the sources of these rumors and unwanted mails.
Only on Tuesday, 20 January 2009, the company had denied all the allegations and termed the reports as malicious and aimed at misleading the investors. Educomp clarified that there are no fictitious assets as all the assets are installed in the schools. It is wrong to say that intangible assets are mainly purchased from subsidiary companies. In fact, the total expense on account of intangible assets is Rs. 25.82 crore in 2007-08, whereas the purchase from subsidiaries companies (EducomP Learning Pvt. Ltd.) is Rs. 7.28 crore.
The reports had cited Educomp booking fictitious assets to adjust bogus profits arising out of bogus sales and purchases. The company also rejected reports of promoters diluting their stake in the company to the extent of up to Rs 250 crore at the high time of share market price.
The promoters' group has so far sold only about 5.07%. The promoters still hold 55.03% in the company, Educomp said in a statement.
The company had on 9 January 2009 signed a pact with US based Michael & Susan Dell Foundation. As part of the project, Educomp will analyze data on student attendance, enrollment, and do in-depth audit of six schools for poor students in Hyderabad. The value of the contract is Rs 4.78 crore for a term starting from 1 September 2008 to 31 March 2012.
Educomp Solutions will declare its Q3 results on 27 January 2009. The company's net profit surged 51.40% to Rs 25.39 crore on 41.39% increase in net sales to Rs 98.14 crore in Q2 September 2008 over Q1 June 2008.
The mid-cap stock had underperformed the market over the past one month till 21 January 2009, declining 43.83% as compared to the Sensex's decline of 13.08%. It had also underperformed the market in the past one quarter, declining 25.72% as compared to the Sensex's decline of 17.82%.
The company's current equity is Rs 17.28 crore. Face value per share is Rs 10.
The current price of Rs 1688 discounts the company's Q2 September 2008 annualized EPS of Rs 58.77, by a PE multiple of 28.72.
Educomp Solutions is a technology-driven, e-learning solutions provider specializing in creation, management and delivery of learning content.
The stock had on 21 January 2009 hit a 52-week low of Rs 1375 on BSE as media reports resurfaced about promoter shareholding in the company, fixed assets, investment in subsidiaries and other ancillary matters. However the stock recouped some losses to settle with 22.44% loss to Rs 1534.90. The stock hit a 52-week high of Rs 4799.70 on 21 January 2008.
The stock hit a high of Rs 1790 and a low of Rs 1534.90 so far during day.
Educomp Solutions on Wednesday, 21 January 2009 after trading hours said that the company has filed a police complaint with Additional Commissioner of Police, Economic Offences Wing, Crime Branch, New Delhi to identify the sources of these rumors and unwanted mails.
Only on Tuesday, 20 January 2009, the company had denied all the allegations and termed the reports as malicious and aimed at misleading the investors. Educomp clarified that there are no fictitious assets as all the assets are installed in the schools. It is wrong to say that intangible assets are mainly purchased from subsidiary companies. In fact, the total expense on account of intangible assets is Rs. 25.82 crore in 2007-08, whereas the purchase from subsidiaries companies (EducomP Learning Pvt. Ltd.) is Rs. 7.28 crore.
The reports had cited Educomp booking fictitious assets to adjust bogus profits arising out of bogus sales and purchases. The company also rejected reports of promoters diluting their stake in the company to the extent of up to Rs 250 crore at the high time of share market price.
The promoters' group has so far sold only about 5.07%. The promoters still hold 55.03% in the company, Educomp said in a statement.
The company had on 9 January 2009 signed a pact with US based Michael & Susan Dell Foundation. As part of the project, Educomp will analyze data on student attendance, enrollment, and do in-depth audit of six schools for poor students in Hyderabad. The value of the contract is Rs 4.78 crore for a term starting from 1 September 2008 to 31 March 2012.
Educomp Solutions will declare its Q3 results on 27 January 2009. The company's net profit surged 51.40% to Rs 25.39 crore on 41.39% increase in net sales to Rs 98.14 crore in Q2 September 2008 over Q1 June 2008.
The mid-cap stock had underperformed the market over the past one month till 21 January 2009, declining 43.83% as compared to the Sensex's decline of 13.08%. It had also underperformed the market in the past one quarter, declining 25.72% as compared to the Sensex's decline of 17.82%.
The company's current equity is Rs 17.28 crore. Face value per share is Rs 10.
The current price of Rs 1688 discounts the company's Q2 September 2008 annualized EPS of Rs 58.77, by a PE multiple of 28.72.
Educomp Solutions is a technology-driven, e-learning solutions provider specializing in creation, management and delivery of learning content.
Tuesday, January 20, 2009
Asit C Mehta recommends 'BUY' on Sanghvi Movers
20 Jan 2009, 1141 hrs IST, ET Bureau
Asit C Mehta has initiated coverage on Sanghvi Movers with a ‘Buy’ recommendation and set a target price of Rs 84 on the stock.
Sanghvi Movers, one of the largest crane-owning companies in India, own a fleet of 317 medium-to-large sized heavy duty hydraulic and crawler cranes with capacities ranging from 20 tonne to 800 tonne.
“The crane industry's performance is directly related to industrial and infrastructure growth. The government has taken several initiatives to boost infrastructure spending and to facilitate investment in the sector. At the end of November 2008, there were Rs. 74.6 trillion worth of outstanding investments across sectors.
SML is a dominant player in a fragmented industry with a large number of small competitors. SML has a near monopoly in the higher capacity cranes segment. SML has an approximate 60 per cent to 65 per cent market share in the above 100-150 MT crane segment and an approximate 80 per cent market share in the above 250 tonne crane segment. (Source: Company).
SML has drafted a capital expenditure plan of Rs 3,300 million for the period FY08-FY10. It plans to add 60 to 65 cranes during FY08-FY10, of which 47 cranes have already arrived. Its cumulative lifting capacity is expected to increase from 42,540MT in FY08 to approximately 53,000MT by FY10,” the brokerage says.
On valuation, the brokerage adds, “Considering the current investment scenario and the company's expansion plan, we expect SML's net sales to grow from Rs 2543.2 million in FY08 to Rs. 3601.2 million in FY10E at a CAGR of 19 per cent and PAT to grow at a CAGR of 12.4 per cent (FY08-FY10). At the CMP of Rs 68, SML is trading at 0.8 x its FY09E Book value and 0.7 x its FY10E Book value. We initiate coverage on Sanghvi Movers with a BUY recommendation and a target price of Rs84, which is equivalent to a forward P/BV of 0.8x to its FY10E Book value of Rs. 105.”
Via:E.T
Asit C Mehta has initiated coverage on Sanghvi Movers with a ‘Buy’ recommendation and set a target price of Rs 84 on the stock.
Sanghvi Movers, one of the largest crane-owning companies in India, own a fleet of 317 medium-to-large sized heavy duty hydraulic and crawler cranes with capacities ranging from 20 tonne to 800 tonne.
“The crane industry's performance is directly related to industrial and infrastructure growth. The government has taken several initiatives to boost infrastructure spending and to facilitate investment in the sector. At the end of November 2008, there were Rs. 74.6 trillion worth of outstanding investments across sectors.
SML is a dominant player in a fragmented industry with a large number of small competitors. SML has a near monopoly in the higher capacity cranes segment. SML has an approximate 60 per cent to 65 per cent market share in the above 100-150 MT crane segment and an approximate 80 per cent market share in the above 250 tonne crane segment. (Source: Company).
SML has drafted a capital expenditure plan of Rs 3,300 million for the period FY08-FY10. It plans to add 60 to 65 cranes during FY08-FY10, of which 47 cranes have already arrived. Its cumulative lifting capacity is expected to increase from 42,540MT in FY08 to approximately 53,000MT by FY10,” the brokerage says.
On valuation, the brokerage adds, “Considering the current investment scenario and the company's expansion plan, we expect SML's net sales to grow from Rs 2543.2 million in FY08 to Rs. 3601.2 million in FY10E at a CAGR of 19 per cent and PAT to grow at a CAGR of 12.4 per cent (FY08-FY10). At the CMP of Rs 68, SML is trading at 0.8 x its FY09E Book value and 0.7 x its FY10E Book value. We initiate coverage on Sanghvi Movers with a BUY recommendation and a target price of Rs84, which is equivalent to a forward P/BV of 0.8x to its FY10E Book value of Rs. 105.”
Via:E.T
RIL slides as Q3 results could be weak
Reliance Industries fell 3.04% to Rs 1192.50 at 12:49 IST after Reliance Natural Resources asked the Bombay High Court not to lift the stay on the sale of gas from Reliance Industries' block in the Krishna-Godavari basin.
Another reason for the weakness in the stock was expectations of dismal Q3 December 2008 results
The stock hit a high of Rs 1210 and a low of Rs 1185.20 so far during the day. The stock had a 52-week high of Rs 2799 on 21 January 2008 and a 52-week low of Rs 930 on 27 October 2008.
India's largest private sector firm by market capitalization and oil refiner has an equity capital of Rs 1,573.80 crore. Face value per share is Rs 10.
The current price of Rs 1192.50 discounts its Q2 September 2008 annualised EPS of Rs 113.40, by a PE multiple of 10.51.
As per reports, Mukesh Ambani-led Reliance Industries (RIL) has sought to lift the stay as it claims it is ready to produce gas next month. But arguing before the court against vacation of the stay, Reliance Natural Resources (RNRL) senior counsel Mukul Rohatgi on Monday, 19 January 2009, said that there is no immediate supply of gas, adding, that let the Directorate General of Hydrocarbons (DGH) make a statement when the company is ready to produce the gas.
In May 2007, the Bombay High Court in an interim order had asked RIL not to 'create third-party interest' for 40 million standard cubic metres per day (mscmd) of gas from the KG basin committed to NTPC and RNRL under their respective agreements with RIL.
Both NTPC and RNRL are seeking gas from RIL at $2.34 per million British thermal unit (mBtu) and fighting a legal battle with RIL at the Bombay High Court. The government approved price for the gas is $4.20 per mbtu.
RNRL has been laying claim on a portion of the gas reserves at a lower rate, citing a family agreement that formed the basis of a split between the estranged Ambani brothers in 2005. RNRL is demanding 28 million standard cubic metres per day (mscmd) of gas from the prolific reserves on the country's eastern coast-discovered by RIL-at $2.34 per mmBtu for 17 years. For RNRL, the availability and pricing of gas from RIL's Krishna-Godavari basin is critical for the success of its proposed 7,500 megawatt power plant in Dadri.
Reliance Petroleum (RPL) a subsidiary of Reliance Industries, will start fuel exports from its new refinery this month. RPL had commissioned work at its 5,80,000-barrels-per-day only for exports refinery at Jamnagar, Gujarat in December 2008.
Meanwhile, the RIL stock was also under pressure as marketmen expect the company's profit may fall in Q3 December 2008 as slumping oil prices squeezed refining and petrochem margins. This will be its first fall in quarterly profit in three years. RIL will unveil Q3 results on Thursday, 22 January 2009.
RIL's net profit rose 7.4% to Rs 4122 crore on 39.8% growth in net sales to Rs 44787 crore in Q2 September 2008 over Q2 September 2007.
Another reason for the weakness in the stock was expectations of dismal Q3 December 2008 results
The stock hit a high of Rs 1210 and a low of Rs 1185.20 so far during the day. The stock had a 52-week high of Rs 2799 on 21 January 2008 and a 52-week low of Rs 930 on 27 October 2008.
India's largest private sector firm by market capitalization and oil refiner has an equity capital of Rs 1,573.80 crore. Face value per share is Rs 10.
The current price of Rs 1192.50 discounts its Q2 September 2008 annualised EPS of Rs 113.40, by a PE multiple of 10.51.
As per reports, Mukesh Ambani-led Reliance Industries (RIL) has sought to lift the stay as it claims it is ready to produce gas next month. But arguing before the court against vacation of the stay, Reliance Natural Resources (RNRL) senior counsel Mukul Rohatgi on Monday, 19 January 2009, said that there is no immediate supply of gas, adding, that let the Directorate General of Hydrocarbons (DGH) make a statement when the company is ready to produce the gas.
In May 2007, the Bombay High Court in an interim order had asked RIL not to 'create third-party interest' for 40 million standard cubic metres per day (mscmd) of gas from the KG basin committed to NTPC and RNRL under their respective agreements with RIL.
Both NTPC and RNRL are seeking gas from RIL at $2.34 per million British thermal unit (mBtu) and fighting a legal battle with RIL at the Bombay High Court. The government approved price for the gas is $4.20 per mbtu.
RNRL has been laying claim on a portion of the gas reserves at a lower rate, citing a family agreement that formed the basis of a split between the estranged Ambani brothers in 2005. RNRL is demanding 28 million standard cubic metres per day (mscmd) of gas from the prolific reserves on the country's eastern coast-discovered by RIL-at $2.34 per mmBtu for 17 years. For RNRL, the availability and pricing of gas from RIL's Krishna-Godavari basin is critical for the success of its proposed 7,500 megawatt power plant in Dadri.
Reliance Petroleum (RPL) a subsidiary of Reliance Industries, will start fuel exports from its new refinery this month. RPL had commissioned work at its 5,80,000-barrels-per-day only for exports refinery at Jamnagar, Gujarat in December 2008.
Meanwhile, the RIL stock was also under pressure as marketmen expect the company's profit may fall in Q3 December 2008 as slumping oil prices squeezed refining and petrochem margins. This will be its first fall in quarterly profit in three years. RIL will unveil Q3 results on Thursday, 22 January 2009.
RIL's net profit rose 7.4% to Rs 4122 crore on 39.8% growth in net sales to Rs 44787 crore in Q2 September 2008 over Q2 September 2007.
MRPL tumbles on hefty Q3 loss
Mangalore Refinery and Petrochemicals lost 5.06% to Rs 36.55 at 15:01 IST on BSE, on reporting a net loss of Rs 285.41 crore in Q3 December 2008 as compared to a net profit of Rs 346.60 crore in Q3 December 2007.
The stock hit a high of Rs 39.60 and a low of Rs 35.15 so far during day. The stock hit a 52-week high of Rs 121 on 21 January 2008 and a 52-week low of Rs 30 on 27 October 2008.
The company's current equity is Rs 1752.90 crore. Face value per share is Rs 10.
The company incurred losses in the quarter ended December 2008 mainly due to inventory valuation loss of Rs 1062 crore on account of sharp fall in crude oil and petroleum product prices. The total income rose 6.96% to Rs 8113.69 crore in Q3 December 2008 over Q3 December 2007.
The stock hit a high of Rs 39.60 and a low of Rs 35.15 so far during day. The stock hit a 52-week high of Rs 121 on 21 January 2008 and a 52-week low of Rs 30 on 27 October 2008.
The company's current equity is Rs 1752.90 crore. Face value per share is Rs 10.
The company incurred losses in the quarter ended December 2008 mainly due to inventory valuation loss of Rs 1062 crore on account of sharp fall in crude oil and petroleum product prices. The total income rose 6.96% to Rs 8113.69 crore in Q3 December 2008 over Q3 December 2007.
CERC ups RoE to 15.5%; power stocks surge
Shares of eight power genration firms rose by 0.39% to 14.31% after the Central Electricity Regulatory Commission raised the return on equity for power units to 15.5% from existing 14%.
At 15:20 IST, the BSE Power index was up 1.19% at 1,798.72. It outperformed the Sensex, which was down 2.60% at 9,087.41.
Reliance Power (up 0.39%), Tata Power (up 1.18%), Reliance Infrastructure (up 1.63%), GVK Power & Infrastructure (up 2.98%), CESC (up 2.76%), NTPC (up 4.15%), Torrent Power (up 6.05%), and Neyveli Lignite Corporation (14.31%), soared.
Return on equity (RoE) is the after-tax profit of a company as a proportion of its equity, expressed in percentage. Central Electricity Regulatory Commission (CERC) said that the new RoE would be applicable for the period from 2009 to 2014. The RoE for projects completed on schedule is at 16%, the CERC statement said.
At 15:20 IST, the BSE Power index was up 1.19% at 1,798.72. It outperformed the Sensex, which was down 2.60% at 9,087.41.
Reliance Power (up 0.39%), Tata Power (up 1.18%), Reliance Infrastructure (up 1.63%), GVK Power & Infrastructure (up 2.98%), CESC (up 2.76%), NTPC (up 4.15%), Torrent Power (up 6.05%), and Neyveli Lignite Corporation (14.31%), soared.
Return on equity (RoE) is the after-tax profit of a company as a proportion of its equity, expressed in percentage. Central Electricity Regulatory Commission (CERC) said that the new RoE would be applicable for the period from 2009 to 2014. The RoE for projects completed on schedule is at 16%, the CERC statement said.
Educom dips 7% on concerns over accounts
20 Jan 2009, 1401 hrs IST, ET Bureau
Shares of Educom Solutions Ltd lost more than 7 per cent mid session Tuesday, on the back of reports that Educom has fudged numbers like satyam. The stock was trading at Rs1,954, down Rs154 or 7.23 per cent at 1.00 PM on the BSE.
"It is learnt that the promoters have made over Rs 250 crore in the stock market
in trading in their own shares in the last 3 years. The company has also floated several subsidiaries which are not quoted in the stock markets who have received total of Rs 80 crore from Educomp as loans and advances. It appears that Rs 314 crore the company raised through FCCB, Rs 220.75 crore have been parked with SBI London as fixed deposits and the remaining funds diverted to these subsidiaries." said a media report.
The stock was trading at huge volumes of 55 lakh shares.
via:E.T
Shares of Educom Solutions Ltd lost more than 7 per cent mid session Tuesday, on the back of reports that Educom has fudged numbers like satyam. The stock was trading at Rs1,954, down Rs154 or 7.23 per cent at 1.00 PM on the BSE.
"It is learnt that the promoters have made over Rs 250 crore in the stock market
in trading in their own shares in the last 3 years. The company has also floated several subsidiaries which are not quoted in the stock markets who have received total of Rs 80 crore from Educomp as loans and advances. It appears that Rs 314 crore the company raised through FCCB, Rs 220.75 crore have been parked with SBI London as fixed deposits and the remaining funds diverted to these subsidiaries." said a media report.
The stock was trading at huge volumes of 55 lakh shares.
via:E.T
Polaris' Q3 net grows 94%; stock soars
20 Jan 2009, 1416 hrs
Shares of Polaris Software were in the limelight Tuesday after the IT firm's net profit for the Oct-Dec quarter grew a whopping 94 per cent to Rs 37.17 crore from Rs 19.12 crore a year ago.
The company's revenue witnessed a 32 per cent growth to Rs 372.58 crore as against Rs 282.14 crore in the same quarter previous year. On a sequential basis, revenues grew 6 per cent while profits surged 8 per cent.
The company has also recommended an interim dividend of 30 per cent. At 2:15 pm, the stock rose 25.58 per cent to Rs 43.20 on the BSE.
Shares of Polaris Software were in the limelight Tuesday after the IT firm's net profit for the Oct-Dec quarter grew a whopping 94 per cent to Rs 37.17 crore from Rs 19.12 crore a year ago.
The company's revenue witnessed a 32 per cent growth to Rs 372.58 crore as against Rs 282.14 crore in the same quarter previous year. On a sequential basis, revenues grew 6 per cent while profits surged 8 per cent.
The company has also recommended an interim dividend of 30 per cent. At 2:15 pm, the stock rose 25.58 per cent to Rs 43.20 on the BSE.
Monday, January 19, 2009
Andhra CM YSR Reddy gave Raju 50 acres for SEZ
20 Jan 2009, 0305 hrs IST, Jinka Nagaraju, TNN
HYDERABAD: On a day when Andhra Pradesh chief minister Y S Rajasekhara Reddy denied in New Delhi that his state government had accorded any political patronage to the disgraced former chairman of Satyam, B Ramalinga Raju, a government order (GO) has revealed that 50 acres of land were allotted to Satyam in Visakhapatnam for developing an IT SEZ on the specific "instructions of the honourable CM".
Talking to media in New Delhi, Reddy on Monday strongly denied having helped Raju. He also rebutted the charge that his government had helped Maytas acquire land worth Rs 7,000 crore or corner contracts, claiming that the state had a transparent and foolproof system of contract bidding. He said Satyam had got land and contracts because of its competitive bids.
However, GO 1439, issued on December 4, 2008, just a month before the Satyam scam surfaced, openly admits to many violations to favour Raju. While the Vishakapatnam collector had reported the basic value of the land to be Rs 60 lakh to Rs 80 lakh per acre and the auction value being at Rs 4 crore to Rs 4.5 crore per acre, the land was allotted to Satyam at Rs 10 lakh per acre, thus causing a loss of at least Rs 195 crore to the state exchequer.
Not just that, of the 50 acres, 25 acres were taken away from the police who had wanted to construct a Greyhounds commando training centre, and another 25 acres of prime land were taken from the Visakhapatnam Urban Development Authority (VUDA) for allowing Satyam to develop the IT SEZ.
After a meeting chaired by the chief minister, the state government had entered into an MoU with Satyam Computer Services on May 10, 2005, for allotment of 50 acres of land for the IT company for their software development centre at Thotlakonda Hills, Kapuluppada village in Bhimunipatnam mandal of Vishakapatnam district.
At the rate of Rs 10 lakh an acre, Satyam paid the state Rs 5.01 crore and the foundation stone was laid by the chief minister himself on May 11, 2005. The area was subsequently notified as an SEZ through a government order on June 1, 2007.
But before Satyam could take possession of the land, the district collector wrote to the state government stating that the 50 acres that had been given to Satyam were actually part of the 300 acres that the state had already allotted to the police department.
It is in this context that another government order (GO 1439) was issued on December 4, 2008, withdrawing 25 acres from the allotted area of the police department, and another 25 acres was added from the adjoining urban development authority land and given to Satyam.
GO 1439 states, "he (Vishakapatnam collector) has also reported that pursuant to the instructions of the honourable CM and keeping in view the urgency", the land has been allotted to APIIC for onward allotment to Satyam. The GO also states that the state had no choice but to withdraw some of the land allotted to the police and also to take land from the urban development authority as "there is no other suitable land in that locality for allotment to Satyam Computer Services Ltd".
Inexplicably, the GO states that all this was done to "avoid further complications". While the state may now claim that it has cancelled the said allotment of 50 acres to Satyam, the fact is that it was originally allotted to the company on the specific instructions of the chief minister.
In New Delhi, Reddy said that the government has promptly acted to bring the guilty to book. Denying the charge of patronising the Satyam promoter, he said that by the time he had taken over the reins of the state, Raju had already become very big.
He said that the Satyam promoter had received phenomenal projection under his predecessor, TDP chief Chandrababu Naidu. "That projection helped Raju in his business."
via:E.T
HYDERABAD: On a day when Andhra Pradesh chief minister Y S Rajasekhara Reddy denied in New Delhi that his state government had accorded any political patronage to the disgraced former chairman of Satyam, B Ramalinga Raju, a government order (GO) has revealed that 50 acres of land were allotted to Satyam in Visakhapatnam for developing an IT SEZ on the specific "instructions of the honourable CM".
Talking to media in New Delhi, Reddy on Monday strongly denied having helped Raju. He also rebutted the charge that his government had helped Maytas acquire land worth Rs 7,000 crore or corner contracts, claiming that the state had a transparent and foolproof system of contract bidding. He said Satyam had got land and contracts because of its competitive bids.
However, GO 1439, issued on December 4, 2008, just a month before the Satyam scam surfaced, openly admits to many violations to favour Raju. While the Vishakapatnam collector had reported the basic value of the land to be Rs 60 lakh to Rs 80 lakh per acre and the auction value being at Rs 4 crore to Rs 4.5 crore per acre, the land was allotted to Satyam at Rs 10 lakh per acre, thus causing a loss of at least Rs 195 crore to the state exchequer.
Not just that, of the 50 acres, 25 acres were taken away from the police who had wanted to construct a Greyhounds commando training centre, and another 25 acres of prime land were taken from the Visakhapatnam Urban Development Authority (VUDA) for allowing Satyam to develop the IT SEZ.
After a meeting chaired by the chief minister, the state government had entered into an MoU with Satyam Computer Services on May 10, 2005, for allotment of 50 acres of land for the IT company for their software development centre at Thotlakonda Hills, Kapuluppada village in Bhimunipatnam mandal of Vishakapatnam district.
At the rate of Rs 10 lakh an acre, Satyam paid the state Rs 5.01 crore and the foundation stone was laid by the chief minister himself on May 11, 2005. The area was subsequently notified as an SEZ through a government order on June 1, 2007.
But before Satyam could take possession of the land, the district collector wrote to the state government stating that the 50 acres that had been given to Satyam were actually part of the 300 acres that the state had already allotted to the police department.
It is in this context that another government order (GO 1439) was issued on December 4, 2008, withdrawing 25 acres from the allotted area of the police department, and another 25 acres was added from the adjoining urban development authority land and given to Satyam.
GO 1439 states, "he (Vishakapatnam collector) has also reported that pursuant to the instructions of the honourable CM and keeping in view the urgency", the land has been allotted to APIIC for onward allotment to Satyam. The GO also states that the state had no choice but to withdraw some of the land allotted to the police and also to take land from the urban development authority as "there is no other suitable land in that locality for allotment to Satyam Computer Services Ltd".
Inexplicably, the GO states that all this was done to "avoid further complications". While the state may now claim that it has cancelled the said allotment of 50 acres to Satyam, the fact is that it was originally allotted to the company on the specific instructions of the chief minister.
In New Delhi, Reddy said that the government has promptly acted to bring the guilty to book. Denying the charge of patronising the Satyam promoter, he said that by the time he had taken over the reins of the state, Raju had already become very big.
He said that the Satyam promoter had received phenomenal projection under his predecessor, TDP chief Chandrababu Naidu. "That projection helped Raju in his business."
via:E.T
Unitech pares losses after EGM
19 Jan 2009, 1224 hrs IST, ET Bureau
Shares of realty major Unitech recouped some of its losses after its board, at the Extra Ordinary General Meeting approved raising of additional long-term funds upto Rs 5,000 crore in other currencies, through issuance of further securities in the company.
The board also approved to increase the authorised share capital of the company from Rs 500 crore to Rs 1,000 crore.
The company's shares took a severe beating Monday on media reports that the Delhi-based real estate company could not mobilise enough funds to repay debts due to mutual funds. The Economic Times, on Friday, had reported that the company had to repay debt to the tune of Rs 1,100 crore to mutual funds this week.
At 12:17 pm, Unitech shares were still down 6.48 per cent at Rs 28.15, but off the intra-day low of 25.75.
Shares of realty major Unitech recouped some of its losses after its board, at the Extra Ordinary General Meeting approved raising of additional long-term funds upto Rs 5,000 crore in other currencies, through issuance of further securities in the company.
The board also approved to increase the authorised share capital of the company from Rs 500 crore to Rs 1,000 crore.
The company's shares took a severe beating Monday on media reports that the Delhi-based real estate company could not mobilise enough funds to repay debts due to mutual funds. The Economic Times, on Friday, had reported that the company had to repay debt to the tune of Rs 1,100 crore to mutual funds this week.
At 12:17 pm, Unitech shares were still down 6.48 per cent at Rs 28.15, but off the intra-day low of 25.75.
Unitech down 9% on failure to repay MF debt
19 Jan 2009, 1122 hrs IST, ET Bureau
MUMBAI: Shares of Unitech were trading 9% lower at Rs 27.40 (at 11.10 AM) on media reports that the Delhi-based real estate company could not mobilize enough funds to repay debts due to mutual funds. The Economic Times, on Friday, had reported that the company had to repay debt to the tune of Rs 1,100 crore to mutual funds this week.
"If mutual funds are to be believed, the company has managed to roll-over almost Rs 500 crore out of Rs 1100 crore that it borrowed through FMPs; this in a way, highlights the company's inability to raise loan and repay debt," said a Mumbai-based broker.
"The company will have retire the rolled-over portion of the debt (about Rs 600 crore) at higher interest rate (say at 14 to 16%). This will compound the debt burden on real estate company," a stock dealer said.
Mutual funds stand to gain more from the roll-over of debt. "Most funds have invested into asset-backed papers of Unitech. Moreover, if there is rollover of debt, investors stand to gain significantly from increased yields (anywhere between 14 and 16%). Considering Unitech's large asset bank, a default is simply out of question," said the CEO of domestic fund house.
Close to downgrading Unitech's long-term rating to 'B (Id)' from 'BBB (Id)' about a week ago, Fitch Ratings, on Wednesday, downgraded Pass Through Certificates (PTAs) that are directly linked to the rating company's national long-term and short-term ratings of Unitech Ltd.
The downgrade signals the company's continued delay in raising the required funds as earlier projected and increasing uncertainty regarding its ability to service its interest cost and fulfil its immediate debt payment obligations.
"Unitech does not have a credit problem; it is only constrained by a severe liquidity crunch. We'll be comfortable with a rollover," the debt fund manager of a Mumbai-based fund house had told ET last week.
Given the weak operational cashflows, the company will resort to asset sales or debt restructuring over the near-term. According to a BNP Paribas report, forced asset sales in the current environment could further erode equity value.
Management indicated that it is in the process of raising Rs 800 crore to tide over the near-term liquidity crisis. Failure to do so could lead to forced sale of underlying assets - primarily land, the report said.
Via:E.T
MUMBAI: Shares of Unitech were trading 9% lower at Rs 27.40 (at 11.10 AM) on media reports that the Delhi-based real estate company could not mobilize enough funds to repay debts due to mutual funds. The Economic Times, on Friday, had reported that the company had to repay debt to the tune of Rs 1,100 crore to mutual funds this week.
"If mutual funds are to be believed, the company has managed to roll-over almost Rs 500 crore out of Rs 1100 crore that it borrowed through FMPs; this in a way, highlights the company's inability to raise loan and repay debt," said a Mumbai-based broker.
"The company will have retire the rolled-over portion of the debt (about Rs 600 crore) at higher interest rate (say at 14 to 16%). This will compound the debt burden on real estate company," a stock dealer said.
Mutual funds stand to gain more from the roll-over of debt. "Most funds have invested into asset-backed papers of Unitech. Moreover, if there is rollover of debt, investors stand to gain significantly from increased yields (anywhere between 14 and 16%). Considering Unitech's large asset bank, a default is simply out of question," said the CEO of domestic fund house.
Close to downgrading Unitech's long-term rating to 'B (Id)' from 'BBB (Id)' about a week ago, Fitch Ratings, on Wednesday, downgraded Pass Through Certificates (PTAs) that are directly linked to the rating company's national long-term and short-term ratings of Unitech Ltd.
The downgrade signals the company's continued delay in raising the required funds as earlier projected and increasing uncertainty regarding its ability to service its interest cost and fulfil its immediate debt payment obligations.
"Unitech does not have a credit problem; it is only constrained by a severe liquidity crunch. We'll be comfortable with a rollover," the debt fund manager of a Mumbai-based fund house had told ET last week.
Given the weak operational cashflows, the company will resort to asset sales or debt restructuring over the near-term. According to a BNP Paribas report, forced asset sales in the current environment could further erode equity value.
Management indicated that it is in the process of raising Rs 800 crore to tide over the near-term liquidity crisis. Failure to do so could lead to forced sale of underlying assets - primarily land, the report said.
Via:E.T
Jagran Prakashan sheds 10% over non-payment of dues
19 Jan 2009, 1142 hrs IST, ET Bureau
MUMBAI: Jagran Prakashan lost close to 10% at Rs 46 after it announced that a bank has taken into possession the assets of one of its associates over non-payment of overdue amount of Rs 8.05 crore. The stock has lost nearly 20% in the last one month.
In an announcement, the company said the lender bank, on Jan ary 14, took into possession the assets (charged in favour of the bank) of Jagran Prakashan (MPC) Pvt Ltd - publisher of Indore edition of Dainik Jagran - due to non-payment of the overdue amount out of term loan of Rs 8.05 crore.
"As disclosed in the Annual Report for the year 2007-08, Jagran Prakashan (MPC) Pvt Ltd has been incurring cash losses and our company and the other group of shareholders in this company are under litigation," added the announcement.
The announcement, however, added that the action of the bank "does not have any impact on the operations of the company and virtually no impact on the revenue of our company".
via:E.T
MUMBAI: Jagran Prakashan lost close to 10% at Rs 46 after it announced that a bank has taken into possession the assets of one of its associates over non-payment of overdue amount of Rs 8.05 crore. The stock has lost nearly 20% in the last one month.
In an announcement, the company said the lender bank, on Jan ary 14, took into possession the assets (charged in favour of the bank) of Jagran Prakashan (MPC) Pvt Ltd - publisher of Indore edition of Dainik Jagran - due to non-payment of the overdue amount out of term loan of Rs 8.05 crore.
"As disclosed in the Annual Report for the year 2007-08, Jagran Prakashan (MPC) Pvt Ltd has been incurring cash losses and our company and the other group of shareholders in this company are under litigation," added the announcement.
The announcement, however, added that the action of the bank "does not have any impact on the operations of the company and virtually no impact on the revenue of our company".
via:E.T
BASF plunges as net profit falls 96%
19 Jan 2009, 1252 hrs IST, ET Bureau
Shares of BASF fell sharply on 19th jan-09,Monday as company’s net profit declined almost 100 per cent for quarter ended December 2008.
The company reported net profit of Rs 40 lakh for the quarter ended December 2008 against Rs 11 crore in the same quarter a year ago. Total income rose to Rs 206.39 crore for December 2008 quarter as compared to Rs 225.11 crore in the same period a year ago.
At 12:25 pm, shares of BASF were at Rs 195, down Rs 18.45 or 8.64 per cent. The scrip touched a low of Rs 191.60 and high of 221.90 in trade so far on volume of 61879 shares.
Shares of BASF fell sharply on 19th jan-09,Monday as company’s net profit declined almost 100 per cent for quarter ended December 2008.
The company reported net profit of Rs 40 lakh for the quarter ended December 2008 against Rs 11 crore in the same quarter a year ago. Total income rose to Rs 206.39 crore for December 2008 quarter as compared to Rs 225.11 crore in the same period a year ago.
At 12:25 pm, shares of BASF were at Rs 195, down Rs 18.45 or 8.64 per cent. The scrip touched a low of Rs 191.60 and high of 221.90 in trade so far on volume of 61879 shares.
Friday, January 16, 2009
Federal Bank robust Q3 numbers
Federal Bank surged 9.72% to Rs 156.30 at 14:01 IST on BSE on posting 98.1% rise in net profit to Rs 203.89 crore in Q3 December 2008 over Q3 December 2007.
The stock hit a high of Rs 159.50 and a low of Rs 138.35 so far during the day. The stock hit a 52-week high of Rs 348 on 16 January 2008 and a 52-week low of Rs 113.05 on 27 October 2008.
The bank's current equity is Rs 171.03 crore. Face value per share is Rs 10.
The current price of Rs 156.30 discounts the bank's Q2 September 2008 annualized EPS of Rs 26.73 by a PE multiple of 5.84.
The bank's total income rose 41.92% to Rs 1,041.23 crore in Q3 December 2008 over Q3 December 2007.
The bank's capital adequacy ratio (CAR) stood at 19.85% in Q3 December 2008 compared to 13.12% in Q3 December 2007. The ratio determines the capacity of the bank to meet the time liabilities and other risk such as credit risk and operational risk. It is much above 8% the minimum that the Basel II accord demands.
The bank's gross net performing assets (NPA) rose 26.47% to Rs 625.72 crore as at Q3 December 2008 from Rs 494.75 crore as on Q3 December 2007. The ratio of gross NPA to gross advances rose to 2.83% from 2.76% while ratio of net NPA to net advances rose to 0.33% form 0.29% as on 31 December 2007.
The Kochi-based private sector bank, Federal Bank, has a significant presence in Kerala.
The stock hit a high of Rs 159.50 and a low of Rs 138.35 so far during the day. The stock hit a 52-week high of Rs 348 on 16 January 2008 and a 52-week low of Rs 113.05 on 27 October 2008.
The bank's current equity is Rs 171.03 crore. Face value per share is Rs 10.
The current price of Rs 156.30 discounts the bank's Q2 September 2008 annualized EPS of Rs 26.73 by a PE multiple of 5.84.
The bank's total income rose 41.92% to Rs 1,041.23 crore in Q3 December 2008 over Q3 December 2007.
The bank's capital adequacy ratio (CAR) stood at 19.85% in Q3 December 2008 compared to 13.12% in Q3 December 2007. The ratio determines the capacity of the bank to meet the time liabilities and other risk such as credit risk and operational risk. It is much above 8% the minimum that the Basel II accord demands.
The bank's gross net performing assets (NPA) rose 26.47% to Rs 625.72 crore as at Q3 December 2008 from Rs 494.75 crore as on Q3 December 2007. The ratio of gross NPA to gross advances rose to 2.83% from 2.76% while ratio of net NPA to net advances rose to 0.33% form 0.29% as on 31 December 2007.
The Kochi-based private sector bank, Federal Bank, has a significant presence in Kerala.
Rallis India rallies after Q3 results
Rallis India rose 3.6% to Rs 342 at 14:33 IST on BSE on 11.1% growth in net profit to Rs 15.57 crore in Q3 December 2008 over Q3 December 2007.
The company announced the result after market hours on Thursday, 15 January 2009.
The stock hit a high of Rs 357.05 and a low of Rs 330 so far during the day. The stock hit a 52-week high of Rs 622.30 on 18 January 2008 and a 52-week low of Rs 280 on 11 December 2008.
The company's current equity is Rs 11.98 crore. Face value per share is Rs 10.
The current price of Rs 342 discounts the company's Q3 December 2008 annualized EPS of Rs 51.99 by a PE multiple of 6.57.
The company's sales rose 15.4% to Rs 207.63 crore in Q3 December 2008 over Q3 December 2007.
Rallis India is engaged in manufacturing and distribution of pesticides, fertilisers and fine chemicals.
The company announced the result after market hours on Thursday, 15 January 2009.
The stock hit a high of Rs 357.05 and a low of Rs 330 so far during the day. The stock hit a 52-week high of Rs 622.30 on 18 January 2008 and a 52-week low of Rs 280 on 11 December 2008.
The company's current equity is Rs 11.98 crore. Face value per share is Rs 10.
The current price of Rs 342 discounts the company's Q3 December 2008 annualized EPS of Rs 51.99 by a PE multiple of 6.57.
The company's sales rose 15.4% to Rs 207.63 crore in Q3 December 2008 over Q3 December 2007.
Rallis India is engaged in manufacturing and distribution of pesticides, fertilisers and fine chemicals.
Sensex, Nifty end strong but turnover dismal on 16th Jan'09:Friday
Key indices sprung back Friday after a dismal session the previous day, mirroring overseas markets and cheered by signs the US government would do whatever is necessary to prevent its economy from sinking deeper into recession.
Early Friday in the US, Bank of America and the Treasury Department reached an agreement for an additional $20 billion in capital from the government's emergency rescue fund, along with guarantees against losses on up to $118 billion in troubled assets. The deal came just hours after American lawmakers authorised a second $350 billion package from the government's bailout fund amid mounting speculation that debt-ridden banks would need even more rescue money. Meanwhile, Obama allies unveiled
a $825 billion recovery bill to help jump-start the world's largest economy. This offered the much needed boosted to stock markets across the world.
Back home, foreign funds lapped up frontline stocks that had been battered in the recent sessions, driving the key indices sharply higher. Bombay Stock Exchange's Sensex ended 3.06 per cent or 276.85 points higher at 9,323.59, after climbing to a high of 9,342.47 after opening at 9,125.65. National Stock Exchange's
Nifty rose 3.35 per cent or 91.75 points to close at 2828.45. The index climbed a high of 2835.65 from a low of 2724.20 during the day.
"2950 on Nifty is the next crucial level, where some amount of profit booking will set in. On the downside, 2700 is an important support to watch out for. Given the magnitude of the fall on Thursday, today's move was expected, which was also supported by positive global markets. But the sore point of Friday's trade was the low turnover," said Hitesh Sheth, head of technical research at Prabhudas Lilladher.
The total turnover on NSE stood at Rs 7,268.79 crore compared to Rs 8,178.88 crore in Thursday's trade.
Even as frontline stocks caught the investors' fancy, they shied away from placing bets in mid and small caps. The BSE Midcap Index ended up 0.53 per cent at 3,026.83 after rising to a high of 3,046.90. BSE Smallcap Index ended almost flat at 3,412.77.
Sectorwise, oil & gas, power and metals were in demand. The BSE Oil &Gas Index rose 5 per cent on the back of strong rally in Reliance Industries.
RIL, which had lost 2.95 per cent on Thursday, staged a strong comeback on expectations that the company may settle the dispute over supply of natural gas to RNRL soon. The stock hit a high of Rs 1,221 before settling at Rs 1,218.40, still showing a hefty rise of 6.56 per cent. Other index gainers comprised NTPC (7.69%), Reliance Infrastructure (7.34%), Bharti Airtel (4.77%), Tata Power (4.89%) and ONGC (3.72%).
On the other hand, DLF (-3.51%), Grasim Industries (-1.11%), Tata Consultancy Services (-1.38%), ACC (-0.27%) and Maruti Suzuki (-0.22%) were a disappointment.
Market breadth remained positive with 1,243 advances against 1,156 declines on the BSE.
Early Friday in the US, Bank of America and the Treasury Department reached an agreement for an additional $20 billion in capital from the government's emergency rescue fund, along with guarantees against losses on up to $118 billion in troubled assets. The deal came just hours after American lawmakers authorised a second $350 billion package from the government's bailout fund amid mounting speculation that debt-ridden banks would need even more rescue money. Meanwhile, Obama allies unveiled
a $825 billion recovery bill to help jump-start the world's largest economy. This offered the much needed boosted to stock markets across the world.
Back home, foreign funds lapped up frontline stocks that had been battered in the recent sessions, driving the key indices sharply higher. Bombay Stock Exchange's Sensex ended 3.06 per cent or 276.85 points higher at 9,323.59, after climbing to a high of 9,342.47 after opening at 9,125.65. National Stock Exchange's
Nifty rose 3.35 per cent or 91.75 points to close at 2828.45. The index climbed a high of 2835.65 from a low of 2724.20 during the day.
"2950 on Nifty is the next crucial level, where some amount of profit booking will set in. On the downside, 2700 is an important support to watch out for. Given the magnitude of the fall on Thursday, today's move was expected, which was also supported by positive global markets. But the sore point of Friday's trade was the low turnover," said Hitesh Sheth, head of technical research at Prabhudas Lilladher.
The total turnover on NSE stood at Rs 7,268.79 crore compared to Rs 8,178.88 crore in Thursday's trade.
Even as frontline stocks caught the investors' fancy, they shied away from placing bets in mid and small caps. The BSE Midcap Index ended up 0.53 per cent at 3,026.83 after rising to a high of 3,046.90. BSE Smallcap Index ended almost flat at 3,412.77.
Sectorwise, oil & gas, power and metals were in demand. The BSE Oil &Gas Index rose 5 per cent on the back of strong rally in Reliance Industries.
RIL, which had lost 2.95 per cent on Thursday, staged a strong comeback on expectations that the company may settle the dispute over supply of natural gas to RNRL soon. The stock hit a high of Rs 1,221 before settling at Rs 1,218.40, still showing a hefty rise of 6.56 per cent. Other index gainers comprised NTPC (7.69%), Reliance Infrastructure (7.34%), Bharti Airtel (4.77%), Tata Power (4.89%) and ONGC (3.72%).
On the other hand, DLF (-3.51%), Grasim Industries (-1.11%), Tata Consultancy Services (-1.38%), ACC (-0.27%) and Maruti Suzuki (-0.22%) were a disappointment.
Market breadth remained positive with 1,243 advances against 1,156 declines on the BSE.
Wednesday, January 14, 2009
Status of SEBI investigation on SATYAM
so far this So called power full Investigation regulatory SEBI could not meet RamalingaRaju . It is thinking of to approach Court to meet Raju. Since he has been allready arrested by the State Govt. And all the Records & Cpomuter Hard Disks taken away by the AndhraPradesh State Govt's CBCID.
Even Ramalinga Raju's Personal Laptop is Missing.
Note: God too may not save this country!! sorry this company!!
Even Ramalinga Raju's Personal Laptop is Missing.
Note: God too may not save this country!! sorry this company!!
Sensex ends higher on RIL-RNRL settlement rumours
14 Jan 2009,
Markets closed near the day’s high on Wednesday led by heavy buying activity in Reliance Industries and other Reliance Group (Mukesh and Anil Ambani) stocks.
There are rumours that warring brothers may head for some amicable settlement bringing end to their business rivalry over gas dispute. Sustained buying activity was also seen in IT and metal stocks.
Bombay Stock Exchange’s Sensex ended at 9,409.18, up 337.82 points or 3.72 per cent. The index touched an intra-ay high of 9,409.18 and low of 9202.57.
National Stock Exchange’s Nifty was at 2852.65, up 107.70 points or 3.92 per cent. The broader index touched a high of 2853.25 and low of 2748.55.
BSE Midcap Index was up 2.16 per cent and BSE Smallcap Index gained 1.38 per cent.
Biggest Sensex gainers were Reliance Communications (13.1%), Reliance Infrastructure (12.04%), Reliance Industries (10.93%), Infosys Technologies (6.23%) and Tata Steel (5.79%).
Losers comprised Grasim Industries (-3.21%), HDFC Bank (-1.61%), Maruti Suzuki (-1.23%), Sun Pharmaceuticals (-0.84%) and Hindustan Unilever (-0.37%).
Market breadth on BSE showed 1398 advances against 984 declines on the BSE.
Markets closed near the day’s high on Wednesday led by heavy buying activity in Reliance Industries and other Reliance Group (Mukesh and Anil Ambani) stocks.
There are rumours that warring brothers may head for some amicable settlement bringing end to their business rivalry over gas dispute. Sustained buying activity was also seen in IT and metal stocks.
Bombay Stock Exchange’s Sensex ended at 9,409.18, up 337.82 points or 3.72 per cent. The index touched an intra-ay high of 9,409.18 and low of 9202.57.
National Stock Exchange’s Nifty was at 2852.65, up 107.70 points or 3.92 per cent. The broader index touched a high of 2853.25 and low of 2748.55.
BSE Midcap Index was up 2.16 per cent and BSE Smallcap Index gained 1.38 per cent.
Biggest Sensex gainers were Reliance Communications (13.1%), Reliance Infrastructure (12.04%), Reliance Industries (10.93%), Infosys Technologies (6.23%) and Tata Steel (5.79%).
Losers comprised Grasim Industries (-3.21%), HDFC Bank (-1.61%), Maruti Suzuki (-1.23%), Sun Pharmaceuticals (-0.84%) and Hindustan Unilever (-0.37%).
Market breadth on BSE showed 1398 advances against 984 declines on the BSE.
Tuesday, January 13, 2009
HAPPY MAKARA SANKRANTHI
Sankranthi, or Sankranti is a festival that signifies the beginning of the harvest season for the farmers of Indian Sub-Continent. This is a harvest festival celebrated not only all over India but other South East Asian Countries as well.
Makara Sankranti has special geo-agri-economical significance to people of Indian Sub-Continent. Makara Sankaranti is about transition of Sun into Capricorn on its celestial path.(Sankarnti being Sanskrit for transition ). This is significant considering Winter Solstice marking gradual increase of duration of day. Also traditionally this has been one of many (considering vastness of land and climatic variation ) harvest days.
The day on which the sun begins its journey northwards is referred to as Makara Sankranti. Sankramana means "to commence movement" and hence the name Makara Sankranti given to one of the largest, most auspicious, but varied festivals in the Indian subcontinent. It usually falls in the middle of January. Because of the geography and size of India, this festival is celebrated for innumerable reasons depending on the climate, agricultural environment, cultural background and position in the context of north or south of India.
Makara Sankranti has special geo-agri-economical significance to people of Indian Sub-Continent. Makara Sankaranti is about transition of Sun into Capricorn on its celestial path.(Sankarnti being Sanskrit for transition ). This is significant considering Winter Solstice marking gradual increase of duration of day. Also traditionally this has been one of many (considering vastness of land and climatic variation ) harvest days.
The day on which the sun begins its journey northwards is referred to as Makara Sankranti. Sankramana means "to commence movement" and hence the name Makara Sankranti given to one of the largest, most auspicious, but varied festivals in the Indian subcontinent. It usually falls in the middle of January. Because of the geography and size of India, this festival is celebrated for innumerable reasons depending on the climate, agricultural environment, cultural background and position in the context of north or south of India.
FACT : Turnaround Q3 results
Fertilizers & Chemicals Travancore rose 3.65% to Rs 19.90 at 10:44 IST on BSE on reporting a net profit of Rs 5.28 crore in Q3 December 2008 as compared to a net loss of Rs 54.46 crore in Q3 December 2007.
The company announced the result after the market hours on 12 January 2009.
The stock hit a high of Rs 19.95 and a low of Rs 19.90 so far during the day. The stock hit a 52-week high of Rs 50.05 on 10 January 2008 and a 52-week low of Rs 14.10 on 27 October 2008.
The company's current equity is Rs 354.77 crore. Face value per share is Rs 10.
The current price of Rs 19.90 discounts the company's Q2 September 2008 annualized EPS of Rs 1.11, by a PE multiple of 17.92.
The company's total income jumped 389.7% to Rs 726.92 crore in Q3 December 2008 over Q3 December 2007.
Fertilizers & Chemicals Travancore known by its acronym FACT, is engaged in manufacturing and distribution of fertilizers and chemicals. The company's product includes ammonium sulphate, factomfos, urea and caprolactam.
The company announced the result after the market hours on 12 January 2009.
The stock hit a high of Rs 19.95 and a low of Rs 19.90 so far during the day. The stock hit a 52-week high of Rs 50.05 on 10 January 2008 and a 52-week low of Rs 14.10 on 27 October 2008.
The company's current equity is Rs 354.77 crore. Face value per share is Rs 10.
The current price of Rs 19.90 discounts the company's Q2 September 2008 annualized EPS of Rs 1.11, by a PE multiple of 17.92.
The company's total income jumped 389.7% to Rs 726.92 crore in Q3 December 2008 over Q3 December 2007.
Fertilizers & Chemicals Travancore known by its acronym FACT, is engaged in manufacturing and distribution of fertilizers and chemicals. The company's product includes ammonium sulphate, factomfos, urea and caprolactam.
T R Prasad resigns from GMR Infrastructure Board
13 Jan 2009, 2019 hrs IST, Vikas Bhardwaj, ET Bureau
NEW DELHI: GMR Infrastructure today said T R Prasad – one of the independent directors of the disbanded board of Satyam in the wake of financial
fraud – has resigned from its Board of Directors. "He has resigned from the board due to personal reasons," a spokesperson of GMR Group said.
Prasad, former Cabinet secretary, was one of the independent directors in the disbanded board of fraud tainted Satyam and expressed his views on the controversial 1.6 billion dollar Satyam-Maytas aborted deal
.
Immediately after the deal, Prasad insisted that the then Satyam board had given only in-principle approval and final go ahead was required upon consideration of valuation.
Disgraced founder of the IT firm, Ramalinga Raju while disclosing his Rs 7,800 crore financial fraud had identified Prasad as one person who was "well-placed to mobilise support from the government at this crucial time."
via:E.T
NEW DELHI: GMR Infrastructure today said T R Prasad – one of the independent directors of the disbanded board of Satyam in the wake of financial
fraud – has resigned from its Board of Directors. "He has resigned from the board due to personal reasons," a spokesperson of GMR Group said.
Prasad, former Cabinet secretary, was one of the independent directors in the disbanded board of fraud tainted Satyam and expressed his views on the controversial 1.6 billion dollar Satyam-Maytas aborted deal
.
Immediately after the deal, Prasad insisted that the then Satyam board had given only in-principle approval and final go ahead was required upon consideration of valuation.
Disgraced founder of the IT firm, Ramalinga Raju while disclosing his Rs 7,800 crore financial fraud had identified Prasad as one person who was "well-placed to mobilise support from the government at this crucial time."
via:E.T
Petition against Satyam, Pyramid Saimira filed in SC
13 Jan 2009, 1920 hrs IST, PTI
A Public Interest Litigation has been filed in the Supreme Court seeking a direction to market regulator SEBI and the Bombay stock Exchange to cancel all share transactions in Satyam Computers and Chennai-based entertainment firm Pyramid Saimira.
It has sought cancellation of all the transactions between January 6 and 7 on the ground that innocent investors were lured by these companies on buyback declarations and fraud was played on them.
A bench headed by Chief Justice K G Balakrishnan, however, refused to give early date of hearing to petitioner Mohan Lal Sharma, a practising advocate.
The advocate said that on January 6, media had widely reported about Satyam adopting proposal to buyback its shares and its decision to take up the issue in the board meeting.
According to him, before the decision was taken by the board, IL&FS had sold about 246.6 lakh shares in the market at Rs 176 per share. However, the Satyam shares crashed to close at Rs 30 after Satyam chairman Ramlingam Raju resigned from the board and confessed to Rs 7,000 crore fraud, he added.
The petition further added that Pyramid Saimira, which was in the news recently for serious fraud allegations wherein the company, was sent a forged letter of SEBI asking its co-promoter PS Saminathan to make an open offer to minority shareholders to buy 20 per cent at Rs 250 a share.
Various investors, including Sharma, had bought the shares under the garb of forged letter.
Within one hour of disclosure, the share went down to freeze at Rs 61.15 per share, Sharma said, adding that till date no action was taken by SEBI to get all purchased shares cancelled.
A Public Interest Litigation has been filed in the Supreme Court seeking a direction to market regulator SEBI and the Bombay stock Exchange to cancel all share transactions in Satyam Computers and Chennai-based entertainment firm Pyramid Saimira.
It has sought cancellation of all the transactions between January 6 and 7 on the ground that innocent investors were lured by these companies on buyback declarations and fraud was played on them.
A bench headed by Chief Justice K G Balakrishnan, however, refused to give early date of hearing to petitioner Mohan Lal Sharma, a practising advocate.
The advocate said that on January 6, media had widely reported about Satyam adopting proposal to buyback its shares and its decision to take up the issue in the board meeting.
According to him, before the decision was taken by the board, IL&FS had sold about 246.6 lakh shares in the market at Rs 176 per share. However, the Satyam shares crashed to close at Rs 30 after Satyam chairman Ramlingam Raju resigned from the board and confessed to Rs 7,000 crore fraud, he added.
The petition further added that Pyramid Saimira, which was in the news recently for serious fraud allegations wherein the company, was sent a forged letter of SEBI asking its co-promoter PS Saminathan to make an open offer to minority shareholders to buy 20 per cent at Rs 250 a share.
Various investors, including Sharma, had bought the shares under the garb of forged letter.
Within one hour of disclosure, the share went down to freeze at Rs 61.15 per share, Sharma said, adding that till date no action was taken by SEBI to get all purchased shares cancelled.
Rolta says biz in order as shares plunge
13 Jan 2009, 1824 hrs IST, REUTERS
MUMBAI: Rolta India Ltd on Tuesday said all its businesses and operations were in order in a clarification issued after the software service provider's shares crashed nearly 60 percent to a 3-½ year low.
"The company categorically states that all its operations and business are in order and there are no new developments which have taken place that have any material impact on the company's operations," the company said in a statement to stock exchanges.
Shares had crashed on speculation stocks pledged by promoters have been sold by creditors, which was denied by Chairman Kamal Singh on television.
There was also speculation that foreign funds had sold stake in the software firm, which could not be confirmed immediately. As of December-end, foreign institutional investors held 35.3 percent in Rolta, according to data with the BSE.
"They have not informed us of anything," Chairman and Managing Director Kamal Singh told a news channel when asked if any foreign funds had informed him of a share sale.
Rolta Shares & Stocks Pvt has a 2.6-percent stake in Rolta which are pledged to meet its working capital needs, Singh said. However the banks with whom the shares are pledged have not sold these shares, he added.
"We have reconfirmed from all the bankers," said Singh, naming Axis Bank, Union Bank of India and Indian Bank as creditors. "They have all confirmed nothing has been sold."
"Question of selling doesn't arise because we have not drawn any substantial money against these shares," Singh, who is also the company's managing director, said. "Right now nothing has been used out of them. Nothing has been sold out of them."
Rolta shares, which dropped to a 3-½ year low of 42.40 rupees on the speculation, quicky recouped some of its losses on the clarification but still closed 17.7 percent lower at 87.15 rupees in a weak Mumbai market.
Rolta's board is scheduled to meet on Jan. 19 to consider the company's results for the quarter-ended December.
MUMBAI: Rolta India Ltd on Tuesday said all its businesses and operations were in order in a clarification issued after the software service provider's shares crashed nearly 60 percent to a 3-½ year low.
"The company categorically states that all its operations and business are in order and there are no new developments which have taken place that have any material impact on the company's operations," the company said in a statement to stock exchanges.
Shares had crashed on speculation stocks pledged by promoters have been sold by creditors, which was denied by Chairman Kamal Singh on television.
There was also speculation that foreign funds had sold stake in the software firm, which could not be confirmed immediately. As of December-end, foreign institutional investors held 35.3 percent in Rolta, according to data with the BSE.
"They have not informed us of anything," Chairman and Managing Director Kamal Singh told a news channel when asked if any foreign funds had informed him of a share sale.
Rolta Shares & Stocks Pvt has a 2.6-percent stake in Rolta which are pledged to meet its working capital needs, Singh said. However the banks with whom the shares are pledged have not sold these shares, he added.
"We have reconfirmed from all the bankers," said Singh, naming Axis Bank, Union Bank of India and Indian Bank as creditors. "They have all confirmed nothing has been sold."
"Question of selling doesn't arise because we have not drawn any substantial money against these shares," Singh, who is also the company's managing director, said. "Right now nothing has been used out of them. Nothing has been sold out of them."
Rolta shares, which dropped to a 3-½ year low of 42.40 rupees on the speculation, quicky recouped some of its losses on the clarification but still closed 17.7 percent lower at 87.15 rupees in a weak Mumbai market.
Rolta's board is scheduled to meet on Jan. 19 to consider the company's results for the quarter-ended December.
Infosys on stronger-than-expected Q3 results
Infosys Technologies posted a 14.59% rise in net profit to Rs 1641 crore in Q3 December 2008 over Q2 September 2008.
The company announced the Q3 December 2008 results before trading hours today, 13 January 2009.
The strong growth in net profit was mainly due to the depreciation of the rupee against the dollar.
The company has marginally increased its FY 2009 revenue guidance by around 1% to Rs 21,552-21757 crore. EPS guidance is increased by 1.8% to Rs 102.9.
The stock of Infosys Technologies was up by more than 5% at Rs 1217.90 at 11.10 am.
The company announced the Q3 December 2008 results before trading hours today, 13 January 2009.
The strong growth in net profit was mainly due to the depreciation of the rupee against the dollar.
The company has marginally increased its FY 2009 revenue guidance by around 1% to Rs 21,552-21757 crore. EPS guidance is increased by 1.8% to Rs 102.9.
The stock of Infosys Technologies was up by more than 5% at Rs 1217.90 at 11.10 am.
Monday, January 12, 2009
SBI has Rs:500 Crs exposure to Maytas Infra
State Bank of India fell 4.86% to Rs 1,156.85 on BSE, on 12th Jan'09, after reports that the bank had about Rs 500 crore in exposure to Maytas Infra.
State Bank of India (SBI) has no exposure to outsourcer Satyam Computer Services but has an exposure of about Rs 500 crore to Maytas firms, the banks' chairman said today, 12 January 2009. SBI's exposure to companies with the Maytas tag is both fund and non-fund based, O.P. Bhatt told television news channel.
Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.
Maytas Infra and Maytas Properties are owned by the family of the founder chairman of Satyam Computer Services. Satyam's founder and former chairman Ramalinga Raju revealed an accounting fraud last week followed by a stunning resignation letter on 7 January 2009. Reports added that Satyam provides services to State Bank of India (SBI)'s IT department though the bank has no exposure to Satyam.
The Raju family had reportedly borrowed money from a large number of organisations to tide over the financial crunch that was affecting the group's infrastructure-related projects.
Andhra Pradesh Chief Minister Rajasekhara Reddy has said that the state government is reviewing the ability of B Ramalinga Raju family-promoted Maytas group firms to carry out the works awarded to the group by the state government. A consortium of Maytas Infra was awarded a Rs 12,000-crore Hyderabad metro rail project and a Rs 1,200-crore Machilipatnam Sea Port project by the state government. The metro rail project is expected to announce its financial closure by March 2009, while sea port project will take about six months for the same.
Note: AP Govt Should have reviewed Matas before Work Allotment insted of Reviewing Aftermath.
State Bank of India (SBI) has no exposure to outsourcer Satyam Computer Services but has an exposure of about Rs 500 crore to Maytas firms, the banks' chairman said today, 12 January 2009. SBI's exposure to companies with the Maytas tag is both fund and non-fund based, O.P. Bhatt told television news channel.
Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.
Maytas Infra and Maytas Properties are owned by the family of the founder chairman of Satyam Computer Services. Satyam's founder and former chairman Ramalinga Raju revealed an accounting fraud last week followed by a stunning resignation letter on 7 January 2009. Reports added that Satyam provides services to State Bank of India (SBI)'s IT department though the bank has no exposure to Satyam.
The Raju family had reportedly borrowed money from a large number of organisations to tide over the financial crunch that was affecting the group's infrastructure-related projects.
Andhra Pradesh Chief Minister Rajasekhara Reddy has said that the state government is reviewing the ability of B Ramalinga Raju family-promoted Maytas group firms to carry out the works awarded to the group by the state government. A consortium of Maytas Infra was awarded a Rs 12,000-crore Hyderabad metro rail project and a Rs 1,200-crore Machilipatnam Sea Port project by the state government. The metro rail project is expected to announce its financial closure by March 2009, while sea port project will take about six months for the same.
Note: AP Govt Should have reviewed Matas before Work Allotment insted of Reviewing Aftermath.
Sunday, January 11, 2009
The downfall: Are we moving from worse to worst?
Source: IRIS (10 January 2009)
What started in mid-2007 as a subprime mortgage fiasco in the United States, has now transformed into a major global economic slowdown, the worst ever since the Great Depression. All the economies across the globe fell into the recession. Stimulus packages, industry friendly monetary policies and massive liquidity injections, time and again by the central banks of many countries were unsuccessful in warding-off this problem, which had snow-balled into a global crisis. Stock markets world-wide are still trading at more than 50% discount of their highs in late 2007, with little signs of improvement; even commodity markets are trading extremely volatile.
In a rescue attempt, governments in both, developed as well as developing countries have started to unveil fiscal and monetary stimulus packages to prevent the global financial crisis from deteriorating further and turning into another Great Depression.
To salvage AIG, America`s biggest and one of the largest insurance companies in the world, the United States provided an emergency credit line of USD 85 billion in exchange for about 80% equity ownership in AIG. Further aid was given, raising the bailout to USD 150 billion in November 2008.
Two more large financial institutions failed; Lehman Brothers and Washington Mutual had to file for bankruptcy. Lehman`s fall is the largest in the United States history, while the latter is the largest bank ever to fail. Investment banks like DSP Merrill Lynch and Goldman Sachs were also found engulfed in this subprime crisis.
The international financial scene changed dramatically after September 2008. The crisis rapidly spread across the globe. In the United States alone, between September 2007 and October 2008, 16 banks filed for bankruptcy.
Prices of oil and non-oil primary commodities have also shown strong fluctuations during 2008, largely driven by financial factors, as well as shifts in the balance between supply and demand.
Growth of world trade decelerated to 4.4% in early 2008, down from 6.3% in 2007, mainly owing to a decline in imports of the United States.
Rough roads ahead
As per a United Nations Conference on Trade and Development (UNCTAD) forecast, more challenging times are in store for the developing economies. The cost of external borrowings is rising and the capital inflow is deteriorating in such economies.
Not only developed and developing economies have suffered, but the Least Developed Countries (LDCs) are feeling the heat. Growth in this group decelerated from 7.8% in 2007 to 6.4% in 2008, breaking a four-year trend of growth over 7%. In 2009, growth is expected to slow further to 5.3%.
According to the United Nations baseline forecast, world gross product (WGP) is expected to slow down to a meager 1% in 2009, a sharp deceleration from the 2.5% growth estimated for 2008. In the worst case scenario, WGP for 2009 is expected to be -0.4%, where as in the best case scenario it may go up to 1.6%. In the baseline scenario, per capita income for the world as whole is expected to decline in 2009.
This will be the case not only in the developed economies but also in many developing countries, where per capita income growth will be negative or well below what is needed to address poverty reduction.
In the outlook for 2009, capital inflow to developing economies is projected to drop further. The outflow of capital from emerging to developed market economies continued to be larger than the inflow. The foreign reserves of developing countries are expected to be sluggish, or even decline in some countries.
The employment situation is expected to deteriorate in most regions during 2009. Global inflation is expected to decelerate significantly in the outlook for 2009, with the risk for deflation increasing in some economies.
Among developed economies, the economy of the United States is expected to decline by 1% in the baseline scenario for 2009. Japan`s economy is in a recession and is expected to stagnate in 2009.
Developing countries will be hurt by the crisis through international trade and finance channels. The drop in commodity prices will hurt primary exporters in particular, but lower demand in the developed countries will affect export growth throughout the developing world. Growth in Africa is expected to decelerate to 4.1% in 2009 from 5.1% in 2008.
Growth in East Asia is expected to decline sharply in 2009, as the slowdown in the developed nations will decelerate exports significantly. Owing to their relatively higher exposure, some economies in the region will also experience sizeable financial losses. South Asia is experiencing an overall slowdown in economic growth from the industrial sector to the service sector as a result of the negative impact of higher costs and the global financial turmoil. Growth in Western Asia is anticipated to slow down significantly in 2009, to the lowest rate in seven years.
Where does India stand?
Mirroring the global events, India too has suffered a financial agony. Industrial production fell into negative territory for the first time since the index was launched. Exports have declined, vehicle production have shown a decline. Many companies have shelved their investment plans and projects. Meanwhile, there have been certain positives as well: Inflation has declined considerably; the government has launched aggressive rate cuts and fiscal measures to stem the economic slowdown. Though the Indian economy is better placed than many of its Asian counterparts, it is in no way decoupled with the rest of the world and in the next few quarters it will grow at a rate much lower than the average growth rate seen in the past few years.
Conclusion
Markets across the globe have frozen significantly. Governments and regulators are trying hard to come up with measures like bailouts, stimulus packages to restore confidence in the hammered financial systems. The question is - Will this work? It is hard to forecast, but doing nothing would almost certainly have pushed the world economy into a deeper crisis. A combination of more rescue packages, unconventional monetary policies worldwide should succeed in reviving the global economy. However, it will take time for most of these policy measures to take effect. In fact, given the current state of developed economies, it appears to be inevitable that the major economies will see significant economic deceleration in the coming months and the recovery in the same will be much slower, even if the bailouts and stimulus packages are a success. Till then, policymakers need to hold on and keep on their good work and come up with more measures to guard the economies and most importantly be positive and hope for the BEST.
What started in mid-2007 as a subprime mortgage fiasco in the United States, has now transformed into a major global economic slowdown, the worst ever since the Great Depression. All the economies across the globe fell into the recession. Stimulus packages, industry friendly monetary policies and massive liquidity injections, time and again by the central banks of many countries were unsuccessful in warding-off this problem, which had snow-balled into a global crisis. Stock markets world-wide are still trading at more than 50% discount of their highs in late 2007, with little signs of improvement; even commodity markets are trading extremely volatile.
In a rescue attempt, governments in both, developed as well as developing countries have started to unveil fiscal and monetary stimulus packages to prevent the global financial crisis from deteriorating further and turning into another Great Depression.
To salvage AIG, America`s biggest and one of the largest insurance companies in the world, the United States provided an emergency credit line of USD 85 billion in exchange for about 80% equity ownership in AIG. Further aid was given, raising the bailout to USD 150 billion in November 2008.
Two more large financial institutions failed; Lehman Brothers and Washington Mutual had to file for bankruptcy. Lehman`s fall is the largest in the United States history, while the latter is the largest bank ever to fail. Investment banks like DSP Merrill Lynch and Goldman Sachs were also found engulfed in this subprime crisis.
The international financial scene changed dramatically after September 2008. The crisis rapidly spread across the globe. In the United States alone, between September 2007 and October 2008, 16 banks filed for bankruptcy.
Prices of oil and non-oil primary commodities have also shown strong fluctuations during 2008, largely driven by financial factors, as well as shifts in the balance between supply and demand.
Growth of world trade decelerated to 4.4% in early 2008, down from 6.3% in 2007, mainly owing to a decline in imports of the United States.
Rough roads ahead
As per a United Nations Conference on Trade and Development (UNCTAD) forecast, more challenging times are in store for the developing economies. The cost of external borrowings is rising and the capital inflow is deteriorating in such economies.
Not only developed and developing economies have suffered, but the Least Developed Countries (LDCs) are feeling the heat. Growth in this group decelerated from 7.8% in 2007 to 6.4% in 2008, breaking a four-year trend of growth over 7%. In 2009, growth is expected to slow further to 5.3%.
According to the United Nations baseline forecast, world gross product (WGP) is expected to slow down to a meager 1% in 2009, a sharp deceleration from the 2.5% growth estimated for 2008. In the worst case scenario, WGP for 2009 is expected to be -0.4%, where as in the best case scenario it may go up to 1.6%. In the baseline scenario, per capita income for the world as whole is expected to decline in 2009.
This will be the case not only in the developed economies but also in many developing countries, where per capita income growth will be negative or well below what is needed to address poverty reduction.
In the outlook for 2009, capital inflow to developing economies is projected to drop further. The outflow of capital from emerging to developed market economies continued to be larger than the inflow. The foreign reserves of developing countries are expected to be sluggish, or even decline in some countries.
The employment situation is expected to deteriorate in most regions during 2009. Global inflation is expected to decelerate significantly in the outlook for 2009, with the risk for deflation increasing in some economies.
Among developed economies, the economy of the United States is expected to decline by 1% in the baseline scenario for 2009. Japan`s economy is in a recession and is expected to stagnate in 2009.
Developing countries will be hurt by the crisis through international trade and finance channels. The drop in commodity prices will hurt primary exporters in particular, but lower demand in the developed countries will affect export growth throughout the developing world. Growth in Africa is expected to decelerate to 4.1% in 2009 from 5.1% in 2008.
Growth in East Asia is expected to decline sharply in 2009, as the slowdown in the developed nations will decelerate exports significantly. Owing to their relatively higher exposure, some economies in the region will also experience sizeable financial losses. South Asia is experiencing an overall slowdown in economic growth from the industrial sector to the service sector as a result of the negative impact of higher costs and the global financial turmoil. Growth in Western Asia is anticipated to slow down significantly in 2009, to the lowest rate in seven years.
Where does India stand?
Mirroring the global events, India too has suffered a financial agony. Industrial production fell into negative territory for the first time since the index was launched. Exports have declined, vehicle production have shown a decline. Many companies have shelved their investment plans and projects. Meanwhile, there have been certain positives as well: Inflation has declined considerably; the government has launched aggressive rate cuts and fiscal measures to stem the economic slowdown. Though the Indian economy is better placed than many of its Asian counterparts, it is in no way decoupled with the rest of the world and in the next few quarters it will grow at a rate much lower than the average growth rate seen in the past few years.
Conclusion
Markets across the globe have frozen significantly. Governments and regulators are trying hard to come up with measures like bailouts, stimulus packages to restore confidence in the hammered financial systems. The question is - Will this work? It is hard to forecast, but doing nothing would almost certainly have pushed the world economy into a deeper crisis. A combination of more rescue packages, unconventional monetary policies worldwide should succeed in reviving the global economy. However, it will take time for most of these policy measures to take effect. In fact, given the current state of developed economies, it appears to be inevitable that the major economies will see significant economic deceleration in the coming months and the recovery in the same will be much slower, even if the bailouts and stimulus packages are a success. Till then, policymakers need to hold on and keep on their good work and come up with more measures to guard the economies and most importantly be positive and hope for the BEST.
Saturday, January 10, 2009
Palepu may have to quit DRL board
10 Jan 2009, 0424 hrs IST, Rumi Dutta & Dev Chatterjee, ET Bureau
MUMBAI: Havard Professor Krishna G Palepu, the former non-executive director of Satyam Computer Services, may have to step down from yet another company board. Following India’s biggest accounting scandal, Dr Reddy’s Laboratories has informally asked Mr Palepu to resign from its board where he is an independent director. A source in Dr Reddy’s Lab told ET that the company’s senior management has sent feelers to Mr Palepu to quit.
The company’s board is meeting on January 20 to consider the December quarter results. His role is expected to be discussed during the meeting
Mr Palepu was a non-executive director on Satyam’s board, which cleared the books cooked under Ramalinga Raju’s leadership. “We have not heard from Mr Palepu so far. While other directors have confirmed attendance at the board meeting, Mr Palepu has still not contacted us,” a source at Dr Reddy’s said.
A Dr Reddy’s spokesperson said the company had no comments to offer. Several e-mails to Mr Palepu remained unanswered.
Satyam’s annual reports reveal that the Harvard professor had received a remuneration of Rs 90 lakh from Satyam as he was conducting customised leadership programmes for Satyam’s employees. Ever since Satyam announced the controversial acquisition of Maytas Properties and Maytas Infrastructure, Mr Palepu has not spoken on this issue. He, however, resigned from Satyam’s board in the last week of December.
Incidentally, Mr Palepu was also on the board of Global Trust Bank (GTB) which collapsed in 2002 following an accounting scam.
In a reply to an earlier ET questionnaire, the Harvard Business School clarified that it has nothing to do with Mr Palepu’s actions while serving on the boards of Indian companies. “The situation you describe would have nothing to do with Harvard University or Harvard Business School
as institutions. The HBS faculty is involved with companies as individuals. All correspondence on this matter would have to be directed to Prof. Palepu himself,” a Harvard spokesperson said on December 22. A subsequent email and a telephone call to HBS after Ramalinga Raju’s mea culpa yesterday did not elicit any response.
TR Prasad, former cabinet secretary and an independent director on Satyam board, had told ET that none of the independent directors were aware of the accounting fraud in Satyam and they came to know about the cooked books only after they received an email from Mr Raju. “We had relied on the auditor PricewaterhouseCoopers on this as it was they who audited the results.”
PwC, on the other hand, has said it relied on documents supplied by the company. PwC was involved in auditing Global Trust Bank as well.
via:E.T
MUMBAI: Havard Professor Krishna G Palepu, the former non-executive director of Satyam Computer Services, may have to step down from yet another company board. Following India’s biggest accounting scandal, Dr Reddy’s Laboratories has informally asked Mr Palepu to resign from its board where he is an independent director. A source in Dr Reddy’s Lab told ET that the company’s senior management has sent feelers to Mr Palepu to quit.
The company’s board is meeting on January 20 to consider the December quarter results. His role is expected to be discussed during the meeting
Mr Palepu was a non-executive director on Satyam’s board, which cleared the books cooked under Ramalinga Raju’s leadership. “We have not heard from Mr Palepu so far. While other directors have confirmed attendance at the board meeting, Mr Palepu has still not contacted us,” a source at Dr Reddy’s said.
A Dr Reddy’s spokesperson said the company had no comments to offer. Several e-mails to Mr Palepu remained unanswered.
Satyam’s annual reports reveal that the Harvard professor had received a remuneration of Rs 90 lakh from Satyam as he was conducting customised leadership programmes for Satyam’s employees. Ever since Satyam announced the controversial acquisition of Maytas Properties and Maytas Infrastructure, Mr Palepu has not spoken on this issue. He, however, resigned from Satyam’s board in the last week of December.
Incidentally, Mr Palepu was also on the board of Global Trust Bank (GTB) which collapsed in 2002 following an accounting scam.
In a reply to an earlier ET questionnaire, the Harvard Business School clarified that it has nothing to do with Mr Palepu’s actions while serving on the boards of Indian companies. “The situation you describe would have nothing to do with Harvard University or Harvard Business School
as institutions. The HBS faculty is involved with companies as individuals. All correspondence on this matter would have to be directed to Prof. Palepu himself,” a Harvard spokesperson said on December 22. A subsequent email and a telephone call to HBS after Ramalinga Raju’s mea culpa yesterday did not elicit any response.
TR Prasad, former cabinet secretary and an independent director on Satyam board, had told ET that none of the independent directors were aware of the accounting fraud in Satyam and they came to know about the cooked books only after they received an email from Mr Raju. “We had relied on the auditor PricewaterhouseCoopers on this as it was they who audited the results.”
PwC, on the other hand, has said it relied on documents supplied by the company. PwC was involved in auditing Global Trust Bank as well.
via:E.T
Friday, January 9, 2009
SATYAM Touched a Bottom of Rs:6.30 on 9-jan-08
As we predicted yesterday. Satyam nose dived to Rs:6.30 on NSE at the early hours of trading on 9th Jan'08.
Now News coming in... Just Raju Surrendered in fron of AP's DGP. (Next usually admits in hospital.)
Now News coming in... Just Raju Surrendered in fron of AP's DGP. (Next usually admits in hospital.)
Satyam: have the funds been siphoned off?
Investigating agencies must look into this aspect: analysts
Doubts being raised about the source of Maytas’ investments in real estate
Were funds were siphoned off from Satyam Computers, analysts wonder
Several questions are being raised whether Satyam Chairman B. Ramalinga Raju has really spilled all the beans in his confessional statement on the Rs. 7,000-odd crore scam in the IT company
Mr. Raju has admitted the widening gap between the actual operating profits and those shown in the accounting books ‘for several years now’. But, he has glossed over the fact that Satyam raised about Rs. 2,000 crore from American Depository Receipts in 2001 and its continued acquisitions in line with its claims that it was looking to take over firms with a valuation of over $50 million.
The handsome profits shown in the books notwithstanding, Mr. Raju, claimed that the contract margin of the company was as low as three per cent against a market average in excess of 20 per cent. “When Satyam is no less than that of Wipro, Infosys and TCS, why will the company accept contracts with such low margins? Mr. Raju is obviously not into charitable acts,” a senior official in the Government remarked.
Industry analysts agree with the view and suggest that the investigating agencies must find out whether funds were siphoned off from Satyam Computers. Doubts are also being raised about the source of investments made in real estate by Maytas Properties, a privately owned firm of Mr. Raju’s family, in purchase of land in all major cities in the south, creating a land bank of 6,800 acres.
An analyst wondered how an auditors like PwC with a global reputation failed to raise questions about the fudging of figures. “They should have raised questions when Maytas Properties was declared as the most precious asset of Mr. Raju’s family with an estimated value of $1.3 billion compared to Maytas Infra ($0.3 billion) when Mr. Raju announced the decision to acquire them,” he said.
Doubts being raised about the source of Maytas’ investments in real estate
Were funds were siphoned off from Satyam Computers, analysts wonder
Several questions are being raised whether Satyam Chairman B. Ramalinga Raju has really spilled all the beans in his confessional statement on the Rs. 7,000-odd crore scam in the IT company
Mr. Raju has admitted the widening gap between the actual operating profits and those shown in the accounting books ‘for several years now’. But, he has glossed over the fact that Satyam raised about Rs. 2,000 crore from American Depository Receipts in 2001 and its continued acquisitions in line with its claims that it was looking to take over firms with a valuation of over $50 million.
The handsome profits shown in the books notwithstanding, Mr. Raju, claimed that the contract margin of the company was as low as three per cent against a market average in excess of 20 per cent. “When Satyam is no less than that of Wipro, Infosys and TCS, why will the company accept contracts with such low margins? Mr. Raju is obviously not into charitable acts,” a senior official in the Government remarked.
Industry analysts agree with the view and suggest that the investigating agencies must find out whether funds were siphoned off from Satyam Computers. Doubts are also being raised about the source of investments made in real estate by Maytas Properties, a privately owned firm of Mr. Raju’s family, in purchase of land in all major cities in the south, creating a land bank of 6,800 acres.
An analyst wondered how an auditors like PwC with a global reputation failed to raise questions about the fudging of figures. “They should have raised questions when Maytas Properties was declared as the most precious asset of Mr. Raju’s family with an estimated value of $1.3 billion compared to Maytas Infra ($0.3 billion) when Mr. Raju announced the decision to acquire them,” he said.
Satyam fraud not one man show: KPMG
9 Jan 2009, 0932 hrs IST, PTI
NEW DELHI: KPMG, which audits the accounts of IT majors like Infosys and Wipro, on Friday doubted the veracity of the confessional letter written by B Ramalinga Raju, the founder-chairman of Satyam Computer, saying the financial bungling cannot be done only by the head of the Hyderabad-based firm.
"It defies logic, one is not sure whether there is much more to it than is written in the letter and whether the letter contains all the facts," KPMG Chief Operating Officer Richard Rekhy said here on the sidelines of a CII function.
It is too simplistic at the moment to believe that the kind of thing that has happened in the company is done by Raju alone, he said.
"It requires a whole battery of people to advance those accounting entries and credit those because you have to involve other people as well like bankers to get those certificates," he said.
When asked whether Raju might have siphoned off funds and he is now admitting to lesser crime, he said it is quite possible but it could be known only after investigation of group companies.
Rekhy said investigation of Satyam companies should be done in such a way it should not hamper the business of IT major. He emphasised the need of an oversight agency for auditors.
NEW DELHI: KPMG, which audits the accounts of IT majors like Infosys and Wipro, on Friday doubted the veracity of the confessional letter written by B Ramalinga Raju, the founder-chairman of Satyam Computer, saying the financial bungling cannot be done only by the head of the Hyderabad-based firm.
"It defies logic, one is not sure whether there is much more to it than is written in the letter and whether the letter contains all the facts," KPMG Chief Operating Officer Richard Rekhy said here on the sidelines of a CII function.
It is too simplistic at the moment to believe that the kind of thing that has happened in the company is done by Raju alone, he said.
"It requires a whole battery of people to advance those accounting entries and credit those because you have to involve other people as well like bankers to get those certificates," he said.
When asked whether Raju might have siphoned off funds and he is now admitting to lesser crime, he said it is quite possible but it could be known only after investigation of group companies.
Rekhy said investigation of Satyam companies should be done in such a way it should not hamper the business of IT major. He emphasised the need of an oversight agency for auditors.
Thursday, January 8, 2009
SREI Infrastructure Finance come out unscathed by SATYAM
8 Jan 2009, 2013 hrs IST, Anuradha, ET Bureau
SREI Infrastructure Finance appears to have come out unscathed in the aftermath of the
Satyam fraud as it had no equity exposure in the proposed Rs 1600-crore Machilipatnam port project being promoted jointly by Maytas Infra in consortium with Nagarjuna Construction Co (NCC).
When contacted by ET, SREI Infrastructure Finance's chairman & managing director Hemant Kanoria said: "About three years ago, we had expressed our intent to take equity exposure in the project. However, since we did not receive a detailed project report, we have not taken a call on the Machilipatnam project till date." However, the company is believed to have made an initial investment of Rs 2-3 lakh in this venture so far.
"If and when approached by companies, we as an infrastructure equipment and project financing institution evaluate the viability of projects. We also assess whether it makes financial sense to invest in the company," Mr Kanoria added. Investment decisions are taken only after a detailed project report is ready and financial viability ascertained.
In the wake of the Satyam saga, we will wait for the government's stand on the project before taking a call," Mr Kanoria said.
It may be mentioned that the Hyderabad-based construction and infrastructure development company Maytas Infra along with Nagarjuna Construction Company, SREI Infrastructure Finance and Sarat Chatterjee & Company bagged a contract for construction of an all weather deep water port at Machilipatnam from Andhra Pradesh government.
The proposed port, which is well connected by road and rail and is in close vicinity of Gannavaram airport, will be able to handle coal requirements of Vijayawada Thermal Power Plant and other cement plants spread in the Krishna belt. On completion, the Machilipatnam Deep Water Port will be equipped to handle exports of agricultural produce, minerals and other commodities from the surrounding districts.
VIA:E.T
SREI Infrastructure Finance appears to have come out unscathed in the aftermath of the
Satyam fraud as it had no equity exposure in the proposed Rs 1600-crore Machilipatnam port project being promoted jointly by Maytas Infra in consortium with Nagarjuna Construction Co (NCC).
When contacted by ET, SREI Infrastructure Finance's chairman & managing director Hemant Kanoria said: "About three years ago, we had expressed our intent to take equity exposure in the project. However, since we did not receive a detailed project report, we have not taken a call on the Machilipatnam project till date." However, the company is believed to have made an initial investment of Rs 2-3 lakh in this venture so far.
"If and when approached by companies, we as an infrastructure equipment and project financing institution evaluate the viability of projects. We also assess whether it makes financial sense to invest in the company," Mr Kanoria added. Investment decisions are taken only after a detailed project report is ready and financial viability ascertained.
In the wake of the Satyam saga, we will wait for the government's stand on the project before taking a call," Mr Kanoria said.
It may be mentioned that the Hyderabad-based construction and infrastructure development company Maytas Infra along with Nagarjuna Construction Company, SREI Infrastructure Finance and Sarat Chatterjee & Company bagged a contract for construction of an all weather deep water port at Machilipatnam from Andhra Pradesh government.
The proposed port, which is well connected by road and rail and is in close vicinity of Gannavaram airport, will be able to handle coal requirements of Vijayawada Thermal Power Plant and other cement plants spread in the Krishna belt. On completion, the Machilipatnam Deep Water Port will be equipped to handle exports of agricultural produce, minerals and other commodities from the surrounding districts.
VIA:E.T
LIC assessing investment in Satyam
8 Jan 2009, 1546 hrs IST, PTI
Public-sector insurer Life Insurance Corp (LIC), which holds 4.34 per cent in the troubled IT firm, Satyam Computer Services, today said it is assessing the situation and will take a decision on its holding accordingly.
"We have 4.34 per cent stake in Satyam Computer Services. We are concerned and will consider a decision according to how the situation develops," LIC MD Thomas Mathew said.
"We are a long-term investor and we do not believe in any short-term investments. All our investments are on the basis of strong reasearch and we look at the fundamentals of the company we invest in. Satyam is a niche player," Mathew, who is incharge of the investment, said.
The company was also concerned about Satyam and wants it to come up again, he said.
Public-sector insurer Life Insurance Corp (LIC), which holds 4.34 per cent in the troubled IT firm, Satyam Computer Services, today said it is assessing the situation and will take a decision on its holding accordingly.
"We have 4.34 per cent stake in Satyam Computer Services. We are concerned and will consider a decision according to how the situation develops," LIC MD Thomas Mathew said.
"We are a long-term investor and we do not believe in any short-term investments. All our investments are on the basis of strong reasearch and we look at the fundamentals of the company we invest in. Satyam is a niche player," Mathew, who is incharge of the investment, said.
The company was also concerned about Satyam and wants it to come up again, he said.
Maytas Infra also fudged books
8 Jan 2009, 1652 hrs IST, PTI
MUMBAI: Satyam Computer is not the only Ramalinga Raju family-promoted company that fudged books, but Maytas Infrastructure also seems to have mis-represented its financials.
The difference, however, lies in Satyam over-stating its revenue, cash position and profits, while Maytas Infra under- stated its profit in April-June quarter and the discrepancies were "duly accounted for" in the company's books later.
While the role of auditors in Satyam fiasco is questionable as of now, it was statutory auditors of Maytas Infra who pointed out the under-statement in its books.
"The statutory auditors of the company in their limited review report for the quarter ended June 30, 2008, qualified that the company made under-provision for service tax liability and excess provision for deferred tax liability, resulting in a net understatement of profit after tax by Rs 1.60 million for the quarter," Maytas Infra's Vice Chairman B Teja Raju said in the "notes" attached to its quarterly results filed with the Bombay Stock Exchange.
"The said liabilities have been duly accounted for in the books of account in the current reporting period (quarter ended September 30, 2008), added Teja Raju, who is son of Satyam founder and Chairman B Ramalinga Raju.
Ramalinga Raju yesterday announced his resignation as Satyam Chairman after disclosing financial irregularities to the tune of close to Rs 7,800 crore at the company over a period of several years in a development that has emerged as the biggest ever corporate fraud in India.
Raju said that he would have filled the "fictitious assets" with real ones had he been successful in acquiring Maytas Infra and another family-promoted firm Maytas Properties.
On December 16, Satyam had announced acquisition of the two Maytas firms for 1.6 billion dollars, but had to call off the deal within hours after stiff opposition from the investors on corporate governance issues.
Maytas's Teja Raju further said that the company's share of profit in integrated joint ventures in the quarterly results was based on management-certified financial statements of the JVs, which do not present audited or reviewed financial results on a quarterly basis.
He also disclosed that Maytas Infra was yet to fully utilise the funds raised from its IPO over a year ago in October 2007. The company had raised Rs 327.45 crore, while it was yet to utilise Rs 119.83 crore as on September 30.
Maytas Infra today announced that its non-executive chairman R C Sinha has resigned from the board due to "personal reasons."
Shares of Maytas Infra fell by five per cent yesterday to close at Rs 159.05. The markets were closed for trading today.
Via:E.T
MUMBAI: Satyam Computer is not the only Ramalinga Raju family-promoted company that fudged books, but Maytas Infrastructure also seems to have mis-represented its financials.
The difference, however, lies in Satyam over-stating its revenue, cash position and profits, while Maytas Infra under- stated its profit in April-June quarter and the discrepancies were "duly accounted for" in the company's books later.
While the role of auditors in Satyam fiasco is questionable as of now, it was statutory auditors of Maytas Infra who pointed out the under-statement in its books.
"The statutory auditors of the company in their limited review report for the quarter ended June 30, 2008, qualified that the company made under-provision for service tax liability and excess provision for deferred tax liability, resulting in a net understatement of profit after tax by Rs 1.60 million for the quarter," Maytas Infra's Vice Chairman B Teja Raju said in the "notes" attached to its quarterly results filed with the Bombay Stock Exchange.
"The said liabilities have been duly accounted for in the books of account in the current reporting period (quarter ended September 30, 2008), added Teja Raju, who is son of Satyam founder and Chairman B Ramalinga Raju.
Ramalinga Raju yesterday announced his resignation as Satyam Chairman after disclosing financial irregularities to the tune of close to Rs 7,800 crore at the company over a period of several years in a development that has emerged as the biggest ever corporate fraud in India.
Raju said that he would have filled the "fictitious assets" with real ones had he been successful in acquiring Maytas Infra and another family-promoted firm Maytas Properties.
On December 16, Satyam had announced acquisition of the two Maytas firms for 1.6 billion dollars, but had to call off the deal within hours after stiff opposition from the investors on corporate governance issues.
Maytas's Teja Raju further said that the company's share of profit in integrated joint ventures in the quarterly results was based on management-certified financial statements of the JVs, which do not present audited or reviewed financial results on a quarterly basis.
He also disclosed that Maytas Infra was yet to fully utilise the funds raised from its IPO over a year ago in October 2007. The company had raised Rs 327.45 crore, while it was yet to utilise Rs 119.83 crore as on September 30.
Maytas Infra today announced that its non-executive chairman R C Sinha has resigned from the board due to "personal reasons."
Shares of Maytas Infra fell by five per cent yesterday to close at Rs 159.05. The markets were closed for trading today.
Via:E.T
Is our Government Working?? Why no Arrest of Raju so far?
We are cursing on Pakistan for not taking action on Terrorists. The same way FIIs are Cursing India Why No action (Arrest ) taken on Ramalinga Raju? Which Polititian is behind it? Who is Safe guarding Raju?
For doing nothing Andhra police is Looking for Nimesh Kampani. And Finding Holes in Eenadu group Ramoji Rao with out any Complaints on them.
But Now the Government is waiting for a written complaint on Raju . Why can't this Govt can take the issue as sumoto case? Raju himself Admitted in writing.
What is going on ?? keeping us in cloud nine .
Think !!! we need ethical codes not only for the corporates but for the Politiatians too..
For doing nothing Andhra police is Looking for Nimesh Kampani. And Finding Holes in Eenadu group Ramoji Rao with out any Complaints on them.
But Now the Government is waiting for a written complaint on Raju . Why can't this Govt can take the issue as sumoto case? Raju himself Admitted in writing.
What is going on ?? keeping us in cloud nine .
Think !!! we need ethical codes not only for the corporates but for the Politiatians too..
Wednesday, January 7, 2009
WE @ OUR BLOG MOENY MATTERS KEEP SUSPECTING THE SATYAM from a very long back
I personally suspected the Satyam's Financial Status long back I advised all my clients keep away from Satyam Counter. We expected the Satyam Share Price would come down to Rs:70/- Our Trget Achieved even further down to Rs:39/-
World bank Case Against Satyam is not a recent news... we have collected that news in around Sept-08 and posted it in this blog. from US News agencies FOX News..
Readers can go through our old posts.
Our Present predition on satyam is ZEERO or Just the Fave value Rs:2/-
GV
World bank Case Against Satyam is not a recent news... we have collected that news in around Sept-08 and posted it in this blog. from US News agencies FOX News..
Readers can go through our old posts.
Our Present predition on satyam is ZEERO or Just the Fave value Rs:2/-
GV
Satyam chief RAMALINGA RAJUadmits to fraud, quits
“Accounts fudged to the tune of Rs. 7,106 crore over several years”
Sending shockwaves: B. Ramalinga Raju, who resigned as Chairman, Satyam Computers, after admitting that the company accounts were fudged. At right, investors at the Bombay Stock Exchange react as the Sensex plunged on Wednesday.
HYDERABAD: Byrraju Ramalinga Raju resigned as chairman of Satyam Computers, India’s fourth largest Information Technology company, on Wednesday after admitting to the Board of Directors that accounts were fudged to the tune of Rs. 7,106 crore over “several years.” His brother, B. Rama Raju, also resigned as Managing Director and Chief Executive Officer (CEO).
Before stepping down, Mr. Ramalinga Raju recommended that Ram Mynampati, board member and president, be made interim CEO, to run the show.
The 53-year-old business tycoon quit ahead of a crucial meeting of the board on January 10. The resignation climaxed a turbulent period of three weeks when the company was plunged into a crisis following an aborted attempt to acquire Maytas Infra and Maytas Properties, promoted by Mr. Raju’s sons, on December 16.
Markets reacted virulently to Mr. Raju’s admission of hiding several facts from the board and the stakeholders. Satyam’s stock nosedived on the Bombay Stock Exchange to an all-time low of Rs. 39.95, losing 77.69 per cent, though it opened at Rs. 188.70. Securities and Exchange Board of India (SEBI) Chairman C.P. Bhave described Mr. Raju’s disclosure as an event of “horrifying magnitude.”
In his five-page letter to the directors, Mr. Raju confessed that the company’s balance sheet inflated cash and bank balances of Rs. 5,040 crore which never existed and an accrued interest of Rs. 376 crore which was also non-existent. Also, a liability of Rs. 1,230 crore was understated and the debtor position of Rs. 490 crore “overstated.”
The Satyam chief said: “The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years.” Every attempt made to eliminate the gap failed, he said and apologised to all “Satyamites and stakeholders.”
Clean chit to executives
Barring Chief Financial Officer Srinivas Vadlamani, Mr. Raju gave a “clean chit” to the top executives, board members and also his and his brother’s families. “Neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results,” he said.
Meanwhile, SEBI was in touch with the Ministry of Corporate Affairs to take all necessary steps against the 21-year-old company, which employs 53,000 and has operations in 65 countries serving 185 Fortune 500 companies. Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy ordered a preliminary inquiry by the CID into whether the State government could initiate any criminal action.
Dr. Y.S.R.Reddy wrote to Prime Minister Manmohan Singh, urging him to constitute a management team comprising Azim Premji of Wipro, N.R. Narayana Murthy of Infosys and S. Ramadorai of TCS to manage the affairs of Satyam to restore the confidence of the global customers so that the interests of employees and other stakeholders were protected. This arrangement could be in place until a credible alternative management was put in place.
DSP Merrill Lynch terminated its engagement with the company soon after Mr. Raju announced his resignation.
Mr. Raju said he would continue in his position “only till such time the current board is expanded.”
A PTI report said Mr. Raju is believed to have left for the U.S. in connection with a court case against Upaid
Sending shockwaves: B. Ramalinga Raju, who resigned as Chairman, Satyam Computers, after admitting that the company accounts were fudged. At right, investors at the Bombay Stock Exchange react as the Sensex plunged on Wednesday.
HYDERABAD: Byrraju Ramalinga Raju resigned as chairman of Satyam Computers, India’s fourth largest Information Technology company, on Wednesday after admitting to the Board of Directors that accounts were fudged to the tune of Rs. 7,106 crore over “several years.” His brother, B. Rama Raju, also resigned as Managing Director and Chief Executive Officer (CEO).
Before stepping down, Mr. Ramalinga Raju recommended that Ram Mynampati, board member and president, be made interim CEO, to run the show.
The 53-year-old business tycoon quit ahead of a crucial meeting of the board on January 10. The resignation climaxed a turbulent period of three weeks when the company was plunged into a crisis following an aborted attempt to acquire Maytas Infra and Maytas Properties, promoted by Mr. Raju’s sons, on December 16.
Markets reacted virulently to Mr. Raju’s admission of hiding several facts from the board and the stakeholders. Satyam’s stock nosedived on the Bombay Stock Exchange to an all-time low of Rs. 39.95, losing 77.69 per cent, though it opened at Rs. 188.70. Securities and Exchange Board of India (SEBI) Chairman C.P. Bhave described Mr. Raju’s disclosure as an event of “horrifying magnitude.”
In his five-page letter to the directors, Mr. Raju confessed that the company’s balance sheet inflated cash and bank balances of Rs. 5,040 crore which never existed and an accrued interest of Rs. 376 crore which was also non-existent. Also, a liability of Rs. 1,230 crore was understated and the debtor position of Rs. 490 crore “overstated.”
The Satyam chief said: “The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years.” Every attempt made to eliminate the gap failed, he said and apologised to all “Satyamites and stakeholders.”
Clean chit to executives
Barring Chief Financial Officer Srinivas Vadlamani, Mr. Raju gave a “clean chit” to the top executives, board members and also his and his brother’s families. “Neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results,” he said.
Meanwhile, SEBI was in touch with the Ministry of Corporate Affairs to take all necessary steps against the 21-year-old company, which employs 53,000 and has operations in 65 countries serving 185 Fortune 500 companies. Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy ordered a preliminary inquiry by the CID into whether the State government could initiate any criminal action.
Dr. Y.S.R.Reddy wrote to Prime Minister Manmohan Singh, urging him to constitute a management team comprising Azim Premji of Wipro, N.R. Narayana Murthy of Infosys and S. Ramadorai of TCS to manage the affairs of Satyam to restore the confidence of the global customers so that the interests of employees and other stakeholders were protected. This arrangement could be in place until a credible alternative management was put in place.
DSP Merrill Lynch terminated its engagement with the company soon after Mr. Raju announced his resignation.
Mr. Raju said he would continue in his position “only till such time the current board is expanded.”
A PTI report said Mr. Raju is believed to have left for the U.S. in connection with a court case against Upaid
Tuesday, January 6, 2009
BGR Energy Fund raising for Working Capital
BGR Energy Systems soared 9.01% to Rs 179.95 at 15:12 IST after the company raised Rs 2,105 crore of loans from banks working capital requirements for a power project at Tamil Nadu.
The stock had risen 2.61% to Rs 164.90 yesterday, 5 January 2009, when the company made the announcement during trading.
The stock hit a high of Rs 182.50 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 913 on 7 January 2008 and a 52-week low of Rs 115 on 2 December 2008.
The mid-cap equipment supplier has an equity capital of Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 179.95 discounts its Q2 September 2008 annualised EPS of Rs 13.16, by a PE multiple of 13.67.
BGR Energy had, in June 2008, bagged a engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB). The company in a stock exchange filing in December 2008, had said that it estimated its fund-based and non-fund based working capital facilities at Rs 2,105 crore for the project and had mandated SBI Capital Markets to arrange the financial facilities.
Under the credit line agreement entered into by the company with the five banks, State Bank of India (SBI) would provide BGR Energy with Rs 525 crore. Besides, the company would receive Rs 580 crore from Indian Overseas Bank, Rs 500 crore from State Bank of Patiala and Rs 250 crore each from Punjab National Bank and Vijaya Bank.
BGR Energy Systems net profit rose 47.8% to Rs 23.69 crore on a 36.5rise in sales to Rs 424.57 crore in Q2 September 2008 over Q2 September 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.
The stock had risen 2.61% to Rs 164.90 yesterday, 5 January 2009, when the company made the announcement during trading.
The stock hit a high of Rs 182.50 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 913 on 7 January 2008 and a 52-week low of Rs 115 on 2 December 2008.
The mid-cap equipment supplier has an equity capital of Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 179.95 discounts its Q2 September 2008 annualised EPS of Rs 13.16, by a PE multiple of 13.67.
BGR Energy had, in June 2008, bagged a engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB). The company in a stock exchange filing in December 2008, had said that it estimated its fund-based and non-fund based working capital facilities at Rs 2,105 crore for the project and had mandated SBI Capital Markets to arrange the financial facilities.
Under the credit line agreement entered into by the company with the five banks, State Bank of India (SBI) would provide BGR Energy with Rs 525 crore. Besides, the company would receive Rs 580 crore from Indian Overseas Bank, Rs 500 crore from State Bank of Patiala and Rs 250 crore each from Punjab National Bank and Vijaya Bank.
BGR Energy Systems net profit rose 47.8% to Rs 23.69 crore on a 36.5rise in sales to Rs 424.57 crore in Q2 September 2008 over Q2 September 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.
Bharati Shipyard Smooth sailing
Bharati Shipyard galloped 5.16% to Rs 84.55 at 14:29 IST after the founder of Great Offshore pledged another 8 lakh shares, or 2.15% stake to Advitiya Urja, a wholly-owned subsidiary of Bharati Shipyard.
Great Offshore was trading down 1.86% at Rs 273.70 on BSE.
The stock hit a high of Rs 88.40 and a low of Rs 81 so far during the day. The stock had a 52-week high of Rs 864.65 on 8 January 2008 and a 52-week low of Rs 59 on 3 December 2008.
The smal-cap ship building firm has an equity capital of Rs 27.57 crore. Face value per share is Rs 10.
The current price of Rs 84.55 discounts its Q2 September 2008 annualised EPS of Rs 48.11, by a PE multiple of 1.75.
The above transaction takes the total amount of Great Offshore promoter's shares pledged with Bharati to 14.87%, a tad short of the 15% threshold where the company will have to make an open offer for another 20% stake. Great Offshore's promoter's had earlier pledged 30.23 lakh shares (8.14%) with Vishudh Urja, another wholly-owned subsidiary of Bharati Shipyard, and 17.03 lakh shares (4.58%) with Advitiya Urja on 3 December 2008, according to notices issued to the stock exchanges.
P C Kapoor, managing director of Bharati Shipyard was quoted by a section of the media as saying that an open offer cannot be ruled out in case Great Offshore promoters are unable to repay Bharati. Great Offshore, the offshore oil services firm, is the largest customer of Bharati. The shipyard is executing two orders worth Rs 1200 crore for it which includes building a jack-up rig and a multi-platform supply vessel.
So far, Bharati has lent close to Rs 200 crore to Great Offshore, report suggested, adding Bharati will be ready to extend any further loan if needed.
Great Offshore's promoter Vijay K Sheth currently holds 15.7% in the firm. Sheth has pledged shares with Bharati in order to take a loan to repay other lenders and avert a margin call.
Sheth had placed a significant portion of his stake in Great Offshore with Infrastructure Leasing & Financial Services and brokerage Motilal Oswal when acquiring the company from Great Eastern Shipping in April 2005.
The lenders started exerting pressure after Great Offshore's shares dropped over 79% between January and December 2008. Great Offshore's share price, which ended at Rs 278.90 on Monday, 5 January 2009, is down 75.74% from its January 2008 high of Rs 1,149.95.
Bharati Shipyard's net profit rose 28.8% to Rs 33.16 crore on a 46.1% rise in sales to Rs 235.42 crore in Q2 September 2008 over Q2 September 2007.
Bharati Shipyard designs and constructs sea going, coastal, harbor and inland crafts and vessels. Its product-range has been upgraded from the simple inland cargo barges, deep-sea trawlers, dredgers, maneuverable and power-packed ocean-going tractor tugs, cargo-ships, tankers and vessels with applications in the offshore industry.
Great Offshore was trading down 1.86% at Rs 273.70 on BSE.
The stock hit a high of Rs 88.40 and a low of Rs 81 so far during the day. The stock had a 52-week high of Rs 864.65 on 8 January 2008 and a 52-week low of Rs 59 on 3 December 2008.
The smal-cap ship building firm has an equity capital of Rs 27.57 crore. Face value per share is Rs 10.
The current price of Rs 84.55 discounts its Q2 September 2008 annualised EPS of Rs 48.11, by a PE multiple of 1.75.
The above transaction takes the total amount of Great Offshore promoter's shares pledged with Bharati to 14.87%, a tad short of the 15% threshold where the company will have to make an open offer for another 20% stake. Great Offshore's promoter's had earlier pledged 30.23 lakh shares (8.14%) with Vishudh Urja, another wholly-owned subsidiary of Bharati Shipyard, and 17.03 lakh shares (4.58%) with Advitiya Urja on 3 December 2008, according to notices issued to the stock exchanges.
P C Kapoor, managing director of Bharati Shipyard was quoted by a section of the media as saying that an open offer cannot be ruled out in case Great Offshore promoters are unable to repay Bharati. Great Offshore, the offshore oil services firm, is the largest customer of Bharati. The shipyard is executing two orders worth Rs 1200 crore for it which includes building a jack-up rig and a multi-platform supply vessel.
So far, Bharati has lent close to Rs 200 crore to Great Offshore, report suggested, adding Bharati will be ready to extend any further loan if needed.
Great Offshore's promoter Vijay K Sheth currently holds 15.7% in the firm. Sheth has pledged shares with Bharati in order to take a loan to repay other lenders and avert a margin call.
Sheth had placed a significant portion of his stake in Great Offshore with Infrastructure Leasing & Financial Services and brokerage Motilal Oswal when acquiring the company from Great Eastern Shipping in April 2005.
The lenders started exerting pressure after Great Offshore's shares dropped over 79% between January and December 2008. Great Offshore's share price, which ended at Rs 278.90 on Monday, 5 January 2009, is down 75.74% from its January 2008 high of Rs 1,149.95.
Bharati Shipyard's net profit rose 28.8% to Rs 33.16 crore on a 46.1% rise in sales to Rs 235.42 crore in Q2 September 2008 over Q2 September 2007.
Bharati Shipyard designs and constructs sea going, coastal, harbor and inland crafts and vessels. Its product-range has been upgraded from the simple inland cargo barges, deep-sea trawlers, dredgers, maneuverable and power-packed ocean-going tractor tugs, cargo-ships, tankers and vessels with applications in the offshore industry.
Aurobindo Pharma gets nod from Canada for a generic drug
Aurobindo Pharma gained 1.01% to Rs 175.25 at 12:24 IST on BSE, having recovered from the session's low of Rs 167.05, on getting nod from the Canadian regulatory authority to sell its gabapentin capsules in multiple strengths in that country.
The drug is the generic version of Pfizer's Neurotin capusules used for treating seizures in patients diagnosed with epilepsy.
The company announced the approval during trading hours today, 6 January 2009.
The stock hit a high of Rs 175.85 and a low of Rs 167.05 so far during the day. The stock hit a 52-week high of Rs 533 on 8 January 2008 and a 52-week low of Rs 101.60 on 6 November 2008.
The company's current equity is Rs 26.88 crore. Face value per share is Rs 5.
Aurobindo Pharma had on 31 December 2008 received final approval from US Food & Drug Administration (US FDA) to manufacture and market Stavudine Capsules in multiple strengths and Stavudine solution in 1 miligram strength. The drug is the generic version of Bristol Myers Squibb's Zerit Capsules and solution. Stavudine can be used in combination with other antiretroviral agents for the treatment of human immunodeficiency virus (HIV)-1 infection.
Aurobindo Pharma had on 24 December 2008 received Canadian regulatory approval to sell terbinafine hydrochloride tablets in multiple strengths.
Aurobindo Pharma reported a net loss of Rs 38.50 crore in Q2 September 2008 as compared to net profit of Rs 100.92 crore in Q2 September 2007. Net sales rose 2.1% to Rs 624.68 crore in Q2 September 2008 over Q2 September 2007.
Aurobindo Pharma is engaged in developing, manufacturing and marketing active pharmaceutical ingredients, intermediates and generic formulations.
The drug is the generic version of Pfizer's Neurotin capusules used for treating seizures in patients diagnosed with epilepsy.
The company announced the approval during trading hours today, 6 January 2009.
The stock hit a high of Rs 175.85 and a low of Rs 167.05 so far during the day. The stock hit a 52-week high of Rs 533 on 8 January 2008 and a 52-week low of Rs 101.60 on 6 November 2008.
The company's current equity is Rs 26.88 crore. Face value per share is Rs 5.
Aurobindo Pharma had on 31 December 2008 received final approval from US Food & Drug Administration (US FDA) to manufacture and market Stavudine Capsules in multiple strengths and Stavudine solution in 1 miligram strength. The drug is the generic version of Bristol Myers Squibb's Zerit Capsules and solution. Stavudine can be used in combination with other antiretroviral agents for the treatment of human immunodeficiency virus (HIV)-1 infection.
Aurobindo Pharma had on 24 December 2008 received Canadian regulatory approval to sell terbinafine hydrochloride tablets in multiple strengths.
Aurobindo Pharma reported a net loss of Rs 38.50 crore in Q2 September 2008 as compared to net profit of Rs 100.92 crore in Q2 September 2007. Net sales rose 2.1% to Rs 624.68 crore in Q2 September 2008 over Q2 September 2007.
Aurobindo Pharma is engaged in developing, manufacturing and marketing active pharmaceutical ingredients, intermediates and generic formulations.
Sensex recovers towards close, nifty in red
The Sensex ended the day with a gain of 60.33 points, or 0.59% at 10,335.93 after touching a high of 10,392.12 and a low of 10,150.68. The broad-based NSE Nifty declined 8.65 points, or 0.28% at 3,112.80 after hitting a high of 3,141.80 and a low of 3,056.10.
Major gainers in the 30-share index were Grasim Industries (8.37%), ACC (7.67%), Jaiprakash Associates (7.34%), Satyam Computer Services (7.31%), Mahindra & Mahindra (7.23%), and HDFC Bank (5.53%).
On the other hand, Reliance Communications (5.65%), DLF (5.41%), Bharti Airtel (4.17%), Tata Power Company (3.07%), Reliance Energy (2.79%), and State Bank Of India (2.72%) were the biggest losers in the Sensex.
Major gainers in the 30-share index were Grasim Industries (8.37%), ACC (7.67%), Jaiprakash Associates (7.34%), Satyam Computer Services (7.31%), Mahindra & Mahindra (7.23%), and HDFC Bank (5.53%).
On the other hand, Reliance Communications (5.65%), DLF (5.41%), Bharti Airtel (4.17%), Tata Power Company (3.07%), Reliance Energy (2.79%), and State Bank Of India (2.72%) were the biggest losers in the Sensex.
Sunday, January 4, 2009
MARKETS may not Cheer with 2nd Stimulus pack!!!
Analists view: Markets may not get josh with this Latest Stimulus pack. Hardly the sentiment may last 1-2 days.
Transgene Biotek gets nod for manufacturing four Nwe drugs.
Transgene Biotek was locked at 5% at Rs 20.35 at 13:33 IST on BSE,on 2nd Jan'09,Friday on receiving regulatory nod for manufacturing four drugs.
The company made this announcement during trading hours today, 2 January 2009.
Meanwhile, the BSE Sensex was up 82.26 points, or 0.83%, to 9,985.72.
On BSE, 1,250 shares were traded in the counter. The stock had an average daily volume of 11,638 shares in the past one quarter.
The stock hit a high of Rs 20.35 and a low of Rs 20.35 so far during the day. The stock hit a 52-week high of Rs 115.60 on 8 January 2008 and a 52-week low of Rs 14.55 on 3 November 2008.
The company's current equity is Rs 15.77 crore. Face value per share is Rs 10.
The current price of Rs 20.35 discounts the company's Q2 September 2008 annualized EPS of Rs 0.24, by a PE multiple of 84.79.
The company has received manufacturing license from Drug Control Department of Hyderabad for manufacturing four drugs Orlistat, Lovastatin, Simvastatin and Pravastatin. These drugs are used to control cholesterol in blood.
Transgene Biotek's net profit fell 75% to Rs 0.09 crore on 2.3% increase in net sales to Rs 0.89 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in the research and development and manufacture of various medical reagents, both chemical and immuno-diagnostic reagents for the qualitative and quantitative estimation of bio-chemical parameters and diagnosis of diseases.
The company made this announcement during trading hours today, 2 January 2009.
Meanwhile, the BSE Sensex was up 82.26 points, or 0.83%, to 9,985.72.
On BSE, 1,250 shares were traded in the counter. The stock had an average daily volume of 11,638 shares in the past one quarter.
The stock hit a high of Rs 20.35 and a low of Rs 20.35 so far during the day. The stock hit a 52-week high of Rs 115.60 on 8 January 2008 and a 52-week low of Rs 14.55 on 3 November 2008.
The company's current equity is Rs 15.77 crore. Face value per share is Rs 10.
The current price of Rs 20.35 discounts the company's Q2 September 2008 annualized EPS of Rs 0.24, by a PE multiple of 84.79.
The company has received manufacturing license from Drug Control Department of Hyderabad for manufacturing four drugs Orlistat, Lovastatin, Simvastatin and Pravastatin. These drugs are used to control cholesterol in blood.
Transgene Biotek's net profit fell 75% to Rs 0.09 crore on 2.3% increase in net sales to Rs 0.89 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in the research and development and manufacture of various medical reagents, both chemical and immuno-diagnostic reagents for the qualitative and quantitative estimation of bio-chemical parameters and diagnosis of diseases.
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