5 Apr 2009, 0501 hrs IST, Swaminathan S Anklesaria Aiyar , TNN
World leaders at the G-20 meeting agreed to create new international money worth $250 billion. The IMF will oversee the new money called SDRs (Special Drawing Rights). Some people believe, and China fervently hopes, that SDRs will in due course replace the dollar as the main world reserve currency.
I, however, am a sceptic. I doubt if the amount of SDRs will ever rival the dollar, euro
or yen. Far from becoming a separate international currency, the SDR will remain a derivative of the dollar and a few other major national currencies.
Before World War I, most countries were on the gold standard: currency issue was tied to the gold held in their reserves. A country whose gold holdings fell, had to shrink its money supply too. Such stiff discipline meant inflation was close to zero: governments could not print notes at will.
But governments needed huge spending in World War I and so gave up the gold standard for the printing press. Besides, the bulk of gold production came from Russia and South Africa, and others refused to be at the mercy of those two countries for future money supply.
Resort to printing presses started a century of unprecedented inflation. Today, governments cannot contemplate being anchored to gold, that would leave them no flexibility to do things that voters demand. Voters also complain about inflation. But they prefer do-something governments plus inflation to do-nothing governments with stable prices.
The abandonment of the gold standard was not exactly a success. The Great Depression arrived in 1929. Competitive devaluations by different countries caused world trade to sink by almost 80%. So, in 1944, major market economies gathered at Bretton Woods to devise a postwar monetary system.
British economist J M Keynes favoured a new international currency, Bancor, anchored in 30 commodities. But there was no political will to give up the printing press. Instead, the new international system was anchored in the dollar, the only currency convertible to gold, with the exchange rates of other currencies overseen by the IMF.
However, the US resented being the only country tied to gold, and gave up that link in 1971. After that, all currencies floated against one another. Countries kept forex reserves mainly in dollars, but also in sterling, yen, and euros.
Recently, the US has ceased to dominate the world economy.
It has run up record trade deficits and gargantuan foreign debt. China and other countries hold trillions of dollars in their forex reserves. With Obama printing trillions of dollars to stimulate the US economy, China fears that the dollar, and China’s own reserves, will crash. Hence, China wants SDRs as a rival reserve currency, phasing out the dollar.
Others like India are also keen on a fresh issue of SDRs to improve cash availability at a time when global lenders have withdrawn from developing countries. New SDRs could be one more stimulus for the sagging world economy.
The IMF has since 1970 issued only 21.4 billion SDRs, worth $32 billion at today’s exchange rate. The proposed new issue worth $250 billion will be far larger. Yet, it pales in comparison with trillions of dollars held in forex reserves globally.
SDRs will probably be issued to countries in proportion to their IMF quotas. If so, two-thirds of new SDRs will go to rich developed countries. India will get just 2%, China just 3.7%. Hence, SDRs will hardly dent dollar dominance in global reserves or liquidity.
Many US and German politicians oppose SDR creation saying it is ‘‘funny money’’ that will ultimately cause inflation. The Wall Street Journal opposes SDR creation because this will benefit political foes like Venezuela ($840 million), Iran ($465 million ), Sudan ($100 million), Zimbabwe ($115 million), Syria ($90 million) and Myanmar ($80 million ). Even if Obama persuades US Congress to approve the proposed $250 billion worth of SDRs, Congress will strongly oppose SDR creation on a scale big enough to rival the dollar as a reserve currency.
Finally, readers should understand that the SDR is not a currency at all. It is simply a potential claim on four national currencies. The SDR is linked to a basket of currencies with a weight of 44% for the dollar, 34% for the euro, and 11% each for the yen and pound sterling. If India wants to use its SDRs, it will typically ask the IMF for dollars in exchange. The IMF will debit India’s SDR account, credit America’s SDR account, ask the US for the corresponding dollars , and hand these to India.
So, SDRs are anchored in four existing currencies, and do not constitute an independent new currency. Nor will major powers allow the IMF to create a new currency independent of existing ones, anchored perhaps in gold. No politician wants to grant supra-national status to the IMF in money creation. The SDR is allowed in small quantities as a derivative of existing currencies. That’s all.
For now, the dollar remains supreme. One day the Chinese yuan and Indian rupee may become fully convertible, and join the list of reserve currencies. That may diminish dollar dominance. But SDRs will remain peripheral.
VIA:E.T
Sunday, April 5, 2009
N Korea launches rocket over Japan
Reuters, Sun, Apr 5, 2009 at 13:11 IST
TOKYO/SEOUL: North Korea launched a long range rocket over Japan on Sunday, drawing swift international condemnation and triggering an emergency meeting of the UN Security Council.
The reclusive state's official media said a satellite had been successfully launched and was sent into regular orbit.
US President Barack Obama said in a statement that North Korea, which tested a nuclear device in 2006, had violated UN resolutions and increased its own isolation with what analysts believe was effectively a test of a ballistic missile designed to carry a warhead potentially as far as Alaska.
"With this provocative act, North Korea has ignored its international obligations, rejected unequivocal calls for restraint, and further isolated itself from the community of nations," said Obama, who was in Prague on a European tour.
In a speech to be delivered in Prague later Obama will commit himself to reducing the U.S. nuclear arsenal, bringing the Comprehensive Test Ban Treaty into force and seeking tough penalties for nuclear rule breakers, the White House said.
The White House also said that Obama will also say he remains committed to six nation talks to "denuclearize" North Korea.
South Korea branded the launch of the rocket a "reckless" act, Japan said it was "extremely regrettable" and the European Union "strongly condemned" Pyongyang's step.
China, the nearest the reclusive North has to a major ally, and Russia both called on all sides for calm and restraint.
Analysts said the United States and Japan may seek a UN resolution condemning the reclusive state's action, but they expect resistance to tougher action such as new sanctions from China.
"NEGOTIATING HAND STRENGTHENED"
South Korea's Yonhap news agency quoted a government official in Seoul as saying the rocket appeared to have carried a satellite, which Pyongyang had all along insisted was its plan for a launch it flagged would come in an April 4 8 window.
Analysts said the launch may bolster North Korean leader Kim Jong il's authority after a suspected stroke last August raised doubts about his grip on power, and it could strengthen his hand in using military threats to win concessions from global powers.
"North Korea is likely to judge that its negotiating position has been strengthened now that it has both the nuclear and missile cards," said Shunji Hiraiwa of Shizuoka Prefectural University in Japan.
The United States, South Korea and Japan had said the launch would in reality be a test of the Taepodong 2, which is designed to fly an estimated range of 6,700 km (4,200 miles).
Japan said it stopped monitoring the Taepodong 2 rocket after it had passed 2,100 km (1,305 miles) east of Tokyo, indicating the launch had been a success. In its only previous test flight, in July 2006, the rocket blew apart 40 seconds after launch.
The first booster stage of the rocket appeared to drop into the Sea of Japan, some 280 km (170 miles) west of the northern Japan coast, the prime minister's office said. The second appeared to fall into the Pacific Ocean.
There was no official word on just how far the rocket flew.
In New York, Japan's UN ambassador requested an emergency meeting of the Security Council to discuss the launch. A diplomat said a meeting would be held at 3 p.m. EDT (1900 GMT) on Sunday.
Japan's chief cabinet secretary, Takeo Kawamura, said that even if the payload was a satellite, it would still violate UN resolutions on North Korean ballistic missile activity.
The United States, Japan and South Korea will view the launch as a violation of a Security Council resolution passed in 2006 after Pyongyang's nuclear test and other missile tests.
That resolution, number 1718, demands North Korea "suspend all activities related to its ballistic missile program."
CHINA COULD USE VETO AT UN
UN Security Council diplomats have told Reuters on condition of anonymity that no country was considering imposing new sanctions but the starting point could be discussing a resolution for the stricter enforcement of earlier sanctions.
Both Russia and China have made clear they would block new sanctions by the Security Council, where they have veto power.
"If the United States and Japan insist on a new resolution and new sanctions at the United Nations, China will most likely use its veto," said Shi Yinhong, professor of international security at Renmin University in Beijing.
"China's principle is only to support United Nations sanctions in the most extreme cases. Although the launch was serious, it was much less serious than the nuclear test."
UN Secretary General Ban Ki moon said the launch was not conducive to peace and stability and called on North Korea to return to six country talks on ending its nuclear programs.
Stephen Bosworth, Washington's special envoy for North Korea, said ahead of the launch last week that he hoped to bring the North back to the talks once the "dust" had settled.
While saying the talks among the two Koreas, China, Japan, Russia and the United States were central to efforts to get North Korea to give up its nuclear program, he also said Washington was ready for direct contact with Pyongyang at any time.
The six party talks stalled in December and Pyongyang has threatened to quit the dialogue if the United Nations imposes any punishment over its rocket launch.
via:UTV
TOKYO/SEOUL: North Korea launched a long range rocket over Japan on Sunday, drawing swift international condemnation and triggering an emergency meeting of the UN Security Council.
The reclusive state's official media said a satellite had been successfully launched and was sent into regular orbit.
US President Barack Obama said in a statement that North Korea, which tested a nuclear device in 2006, had violated UN resolutions and increased its own isolation with what analysts believe was effectively a test of a ballistic missile designed to carry a warhead potentially as far as Alaska.
"With this provocative act, North Korea has ignored its international obligations, rejected unequivocal calls for restraint, and further isolated itself from the community of nations," said Obama, who was in Prague on a European tour.
In a speech to be delivered in Prague later Obama will commit himself to reducing the U.S. nuclear arsenal, bringing the Comprehensive Test Ban Treaty into force and seeking tough penalties for nuclear rule breakers, the White House said.
The White House also said that Obama will also say he remains committed to six nation talks to "denuclearize" North Korea.
South Korea branded the launch of the rocket a "reckless" act, Japan said it was "extremely regrettable" and the European Union "strongly condemned" Pyongyang's step.
China, the nearest the reclusive North has to a major ally, and Russia both called on all sides for calm and restraint.
Analysts said the United States and Japan may seek a UN resolution condemning the reclusive state's action, but they expect resistance to tougher action such as new sanctions from China.
"NEGOTIATING HAND STRENGTHENED"
South Korea's Yonhap news agency quoted a government official in Seoul as saying the rocket appeared to have carried a satellite, which Pyongyang had all along insisted was its plan for a launch it flagged would come in an April 4 8 window.
Analysts said the launch may bolster North Korean leader Kim Jong il's authority after a suspected stroke last August raised doubts about his grip on power, and it could strengthen his hand in using military threats to win concessions from global powers.
"North Korea is likely to judge that its negotiating position has been strengthened now that it has both the nuclear and missile cards," said Shunji Hiraiwa of Shizuoka Prefectural University in Japan.
The United States, South Korea and Japan had said the launch would in reality be a test of the Taepodong 2, which is designed to fly an estimated range of 6,700 km (4,200 miles).
Japan said it stopped monitoring the Taepodong 2 rocket after it had passed 2,100 km (1,305 miles) east of Tokyo, indicating the launch had been a success. In its only previous test flight, in July 2006, the rocket blew apart 40 seconds after launch.
The first booster stage of the rocket appeared to drop into the Sea of Japan, some 280 km (170 miles) west of the northern Japan coast, the prime minister's office said. The second appeared to fall into the Pacific Ocean.
There was no official word on just how far the rocket flew.
In New York, Japan's UN ambassador requested an emergency meeting of the Security Council to discuss the launch. A diplomat said a meeting would be held at 3 p.m. EDT (1900 GMT) on Sunday.
Japan's chief cabinet secretary, Takeo Kawamura, said that even if the payload was a satellite, it would still violate UN resolutions on North Korean ballistic missile activity.
The United States, Japan and South Korea will view the launch as a violation of a Security Council resolution passed in 2006 after Pyongyang's nuclear test and other missile tests.
That resolution, number 1718, demands North Korea "suspend all activities related to its ballistic missile program."
CHINA COULD USE VETO AT UN
UN Security Council diplomats have told Reuters on condition of anonymity that no country was considering imposing new sanctions but the starting point could be discussing a resolution for the stricter enforcement of earlier sanctions.
Both Russia and China have made clear they would block new sanctions by the Security Council, where they have veto power.
"If the United States and Japan insist on a new resolution and new sanctions at the United Nations, China will most likely use its veto," said Shi Yinhong, professor of international security at Renmin University in Beijing.
"China's principle is only to support United Nations sanctions in the most extreme cases. Although the launch was serious, it was much less serious than the nuclear test."
UN Secretary General Ban Ki moon said the launch was not conducive to peace and stability and called on North Korea to return to six country talks on ending its nuclear programs.
Stephen Bosworth, Washington's special envoy for North Korea, said ahead of the launch last week that he hoped to bring the North back to the talks once the "dust" had settled.
While saying the talks among the two Koreas, China, Japan, Russia and the United States were central to efforts to get North Korea to give up its nuclear program, he also said Washington was ready for direct contact with Pyongyang at any time.
The six party talks stalled in December and Pyongyang has threatened to quit the dialogue if the United Nations imposes any punishment over its rocket launch.
via:UTV
Freebies in Andhra
PTI, Sat, Apr 4, 2009 at 13:00 IST
HYDERABAD: It is populism at its best or worst....
Direct cash transfer to the poor, distribution of free colour TVs, essential household items for Rs 100 and increasing the quantum of Rs 2 a kg rice and free power are only some of the doles announced by Andhra Pradesh's major parties like TDP, Congress and Chiranjeevi's Praja Rajyam in their election manifestos.
Once seen as a poster boy of economic reforms, Telugu Desam Party chief N Chandrababu Naidu has announced perhaps the mother of all doles: cash transfer to the poor, in the party manifesto unveiled yesterday.
Under the Cash Transfer Scheme (CTS), an amount of Rs 2,000 would be transferred per month to the account of every housewife of the "poorest of the poor" families, Rs 1,500 to the poor and Rs 1,000 to the middle classes.
Denying that the scheme is populist, Naidu asserted that it is aimed at removing economic imbalances, providing food security and improving the general health of the poor. The distribution of colour TVs, too, is not populist but intended to enable poor people have entertainment and gain knowledge, the former Chief Minister said.
Other doles announced by Naidu include 12-hour free power to agriculture sector, free healthcare to the poor and middle classes under the proposed NTR Integrated Health
Insurance Scheme in both government and private hospitals covering for all diseases and ailments.
Hoping to retain power on the strength of its performance during the last five years, the ruling Congress focused its attention on continuity in the implementation of the ongoing welfare and development programmes.
After storming to power on the crest of a populist wave in the 2004 elections, the Congress has been implementing a slew of welfare schemes and added some more to the list during the last one year. The party's manifesto, released by Chief Minister Y S Rajasekhara Reddy and state Congress President D Srinivas a few days ago, promised to continue free power supply to farmers, the Rs two per kg rice scheme, low interest loans to the poor, weaker section housing and irrigation projects under the `Jalayagnam' (irrigation mission) programme.
Congress also promised to hike the quantum of subsidised rice to poor households from four kg to six kg per person a month, increase free power supply from the present seven hours to nine hours per day, free education to the deserving students from LKG to PG and extend the benefits of scholarships to the needy in forward castes.
HYDERABAD: It is populism at its best or worst....
Direct cash transfer to the poor, distribution of free colour TVs, essential household items for Rs 100 and increasing the quantum of Rs 2 a kg rice and free power are only some of the doles announced by Andhra Pradesh's major parties like TDP, Congress and Chiranjeevi's Praja Rajyam in their election manifestos.
Once seen as a poster boy of economic reforms, Telugu Desam Party chief N Chandrababu Naidu has announced perhaps the mother of all doles: cash transfer to the poor, in the party manifesto unveiled yesterday.
Under the Cash Transfer Scheme (CTS), an amount of Rs 2,000 would be transferred per month to the account of every housewife of the "poorest of the poor" families, Rs 1,500 to the poor and Rs 1,000 to the middle classes.
Denying that the scheme is populist, Naidu asserted that it is aimed at removing economic imbalances, providing food security and improving the general health of the poor. The distribution of colour TVs, too, is not populist but intended to enable poor people have entertainment and gain knowledge, the former Chief Minister said.
Other doles announced by Naidu include 12-hour free power to agriculture sector, free healthcare to the poor and middle classes under the proposed NTR Integrated Health
Insurance Scheme in both government and private hospitals covering for all diseases and ailments.
Hoping to retain power on the strength of its performance during the last five years, the ruling Congress focused its attention on continuity in the implementation of the ongoing welfare and development programmes.
After storming to power on the crest of a populist wave in the 2004 elections, the Congress has been implementing a slew of welfare schemes and added some more to the list during the last one year. The party's manifesto, released by Chief Minister Y S Rajasekhara Reddy and state Congress President D Srinivas a few days ago, promised to continue free power supply to farmers, the Rs two per kg rice scheme, low interest loans to the poor, weaker section housing and irrigation projects under the `Jalayagnam' (irrigation mission) programme.
Congress also promised to hike the quantum of subsidised rice to poor households from four kg to six kg per person a month, increase free power supply from the present seven hours to nine hours per day, free education to the deserving students from LKG to PG and extend the benefits of scholarships to the needy in forward castes.
Forex reserves decline by USD 1,500 mn
Source: IRIS (03 April 2009)
Forex reserves decreased by USD 1,500 million to touch USD 252,326 million as on Mar 27, 2009, mainly due to a fall in foreign currency and assets collections on a weekly basis.
As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on Apr 3, 2009, foreign currency assets decreased by USD 1,641 million to stand at USD 241,597 million.
During the same period, the reserve position in the International Monetary Fund (IMF) increased by USD 141 million at USD 982 million. The gold reserves remained steady at USD 9,746 million.
Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.
Forex reserves decreased by USD 1,500 million to touch USD 252,326 million as on Mar 27, 2009, mainly due to a fall in foreign currency and assets collections on a weekly basis.
As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on Apr 3, 2009, foreign currency assets decreased by USD 1,641 million to stand at USD 241,597 million.
During the same period, the reserve position in the International Monetary Fund (IMF) increased by USD 141 million at USD 982 million. The gold reserves remained steady at USD 9,746 million.
Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.
Sanofi Aventis's Piramal plans fall through
4 Apr 2009, 1900 hrs IST, Khomba Singh, ET Bureau
NEW DELHI: French pharma major Sanofi Aventis’s plans to acquire a majority stake in Mumbai-based Piramal Healthcare has fallen through due to differences over valuation, two persons familiar with the development told ET .
"Sanofi Aventis had put a valuation of over Rs 300 per share for Piramal Healthcare. But, this price was not acceptable to the promoters," a merchant banker familiar with the development said. On Thursday, Piramal Healthcare’s scrip rose 4.15% to close at Rs 201.80, at the Bombay Stock Exchange (BSE) as against BSE Healthcare index which moved up 1.75%.
Sanofi Aventis is already among the top 15 companies in India and the proposed deal would have strengthened its presence in the country.
Besides Piramal Healthcare, Piramals also control Piramal Lifesciences, a separate public listed research firm, demerged out of Piramal Healthcare in 2008. This research arm was not part of the promoters’ plans to sell their pharma business.
Another senior pharma industry official, who has been briefed about the proposed deal added that talks between Sanofi Aventis and Piramal Healthcare had reached an advanced stage before it collapsed. Earlier, UK-based GlaxoSmithKline (GSK) was also reportedly in the fray. But this official said GSK had not moved forward beyond the initial stages.
When contacted by ET , both Sanofi Aventis’s spokeswoman and Piramal Healthcare spokesman declined to comment. But the Piramals have repeatedly denied they are looking to sell Piramal Healthcare after reports of a possible stake sale first appeared in February, and have termed the reports as ‘unfounded.’
Some analyst feel that there is limited strategic fit for Sanofi Aventis in acquiring Piramal Healthcare as the Indian company’s business is confined to the domestic market, where the French company Sanofi already has a significant presence.
Global innovator pharma majors have been buying generic drugmakers to grapple with falling sales as their top selling products are set to lose patents in the next few years.
Last year, Daiichi Sankyo acquired India’s largest pharma company Ranbaxy for about $4 billion. Besides GSK and Sanofi Aventis, other global players such as Pfizer are also scouting to buy an Indian firm.
NEW DELHI: French pharma major Sanofi Aventis’s plans to acquire a majority stake in Mumbai-based Piramal Healthcare has fallen through due to differences over valuation, two persons familiar with the development told ET .
"Sanofi Aventis had put a valuation of over Rs 300 per share for Piramal Healthcare. But, this price was not acceptable to the promoters," a merchant banker familiar with the development said. On Thursday, Piramal Healthcare’s scrip rose 4.15% to close at Rs 201.80, at the Bombay Stock Exchange (BSE) as against BSE Healthcare index which moved up 1.75%.
Sanofi Aventis is already among the top 15 companies in India and the proposed deal would have strengthened its presence in the country.
Besides Piramal Healthcare, Piramals also control Piramal Lifesciences, a separate public listed research firm, demerged out of Piramal Healthcare in 2008. This research arm was not part of the promoters’ plans to sell their pharma business.
Another senior pharma industry official, who has been briefed about the proposed deal added that talks between Sanofi Aventis and Piramal Healthcare had reached an advanced stage before it collapsed. Earlier, UK-based GlaxoSmithKline (GSK) was also reportedly in the fray. But this official said GSK had not moved forward beyond the initial stages.
When contacted by ET , both Sanofi Aventis’s spokeswoman and Piramal Healthcare spokesman declined to comment. But the Piramals have repeatedly denied they are looking to sell Piramal Healthcare after reports of a possible stake sale first appeared in February, and have termed the reports as ‘unfounded.’
Some analyst feel that there is limited strategic fit for Sanofi Aventis in acquiring Piramal Healthcare as the Indian company’s business is confined to the domestic market, where the French company Sanofi already has a significant presence.
Global innovator pharma majors have been buying generic drugmakers to grapple with falling sales as their top selling products are set to lose patents in the next few years.
Last year, Daiichi Sankyo acquired India’s largest pharma company Ranbaxy for about $4 billion. Besides GSK and Sanofi Aventis, other global players such as Pfizer are also scouting to buy an Indian firm.
Piramal Healthcare slides on shutting down UK unit
Piramal Healthcare declined 2.43% to Rs 189.05 at 11:05 IST on BSE, after the company said it has decided to shutdown its manufacturing facility in Huddersfield in United Kingdom.
The company made the announcement of the shutdown of its overseas manufacturing facility during trading hours today, 2 April 2009.
The stock hit a 52-week high of Rs 388.70 on 6 June 2008 and a 52-week low of Rs 163.75 on 19 February 2009.
The company's current equity is Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 189.05 discounts the company's Q3 December 2008 annualized EPS of Rs 7.40, by a PE multiple of 25.55.
Piramal Healthcare has decided to shut its manufacturing unit in Huddersfield in the United Kingdom. The company would record Rs 71 crore as a one-time expense in the quarter ended March 2009 on this count.
Huddersfield facility generated revenue of 19 million pounds (approximately Rs 135 crore) in the financial year (FY) 2008-09. This facility provides services to four key customers and all the customers. Piramal will transfer this business to Morpeth plant (UK) and Ennore plant (India).
Piramal Healthcare had in 2005 acquired Avecia Pharmaceuticals now known as Piramal Healthcare (UK). The company currently has three manufacturing facilities in UK at Huddersfield, Morpeth and Grangemouth
Earlier in March 2009, Piramal Healthcare had announced that it had completed the acquisition of US-based Minrad International. Minrad would be operated as a wholly owned subsidiary of Piramal Healthcare.
Piramal Healthcare had on 28 January 2009 acquired the entire issued outstanding capital of RxElite Holdings, Inc., the wholly owned subsidiary and the inhalation anesthetic gas distribution arm of RxElite, Inc. for cash consideration of approximately $4.2 million.
Piramal Healthcare's net profit fell 47.6% to Rs 38.67 crore on 21.3% rise in net sales to Rs 580.46 crore in Q3 December 2008 over Q3 December 2007.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
The company made the announcement of the shutdown of its overseas manufacturing facility during trading hours today, 2 April 2009.
The stock hit a 52-week high of Rs 388.70 on 6 June 2008 and a 52-week low of Rs 163.75 on 19 February 2009.
The company's current equity is Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 189.05 discounts the company's Q3 December 2008 annualized EPS of Rs 7.40, by a PE multiple of 25.55.
Piramal Healthcare has decided to shut its manufacturing unit in Huddersfield in the United Kingdom. The company would record Rs 71 crore as a one-time expense in the quarter ended March 2009 on this count.
Huddersfield facility generated revenue of 19 million pounds (approximately Rs 135 crore) in the financial year (FY) 2008-09. This facility provides services to four key customers and all the customers. Piramal will transfer this business to Morpeth plant (UK) and Ennore plant (India).
Piramal Healthcare had in 2005 acquired Avecia Pharmaceuticals now known as Piramal Healthcare (UK). The company currently has three manufacturing facilities in UK at Huddersfield, Morpeth and Grangemouth
Earlier in March 2009, Piramal Healthcare had announced that it had completed the acquisition of US-based Minrad International. Minrad would be operated as a wholly owned subsidiary of Piramal Healthcare.
Piramal Healthcare had on 28 January 2009 acquired the entire issued outstanding capital of RxElite Holdings, Inc., the wholly owned subsidiary and the inhalation anesthetic gas distribution arm of RxElite, Inc. for cash consideration of approximately $4.2 million.
Piramal Healthcare's net profit fell 47.6% to Rs 38.67 crore on 21.3% rise in net sales to Rs 580.46 crore in Q3 December 2008 over Q3 December 2007.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
Allied Digital surges on acquisition
Allied Digital Services rose 8.08% to Rs 192.05 at 12:21 IST on BSE, on acquiring Bangalore based SAP consulting and support services provider En Pointe Technologies India.
The company announced the acquisition after trading hours on Wednesday, 1 April 2009.
The stock hit a 52-week high of Rs 1049.60 on 6 June 2008 and a 52-week low of Rs 146.05 on 9 March 2009.
The company's current equity is Rs 18.11 crore. Face value per share is Rs 10.
The current price of Rs 192.05 discounts the company's Q3 December 2008 annualized EPS of Rs 41.13, by a PE multiple of 4.67.
The company said the latest acquisition will enhance its remote infrastructure management and application support services portfolio. The financial details were not disclosed.
En Pointe Technologies India has a pool of competent and certified SAP consultants with rich experience of multi geography, multi country SAP consulting and support services.
Allied Digital Services' net profit fell 13.36% to Rs 18.62 crore on 7.39% fall in net sales to Rs 95.31 crore in Q3 December 2008 over Q2 September 2008.
Allied Digital operates in diversified segments viz. IT solutions, networking and communication solutions, integrated solutions and software solutions. It is also into infrastructure management services, telecom-BPO and remote management services to its customers pan India.
The company announced the acquisition after trading hours on Wednesday, 1 April 2009.
The stock hit a 52-week high of Rs 1049.60 on 6 June 2008 and a 52-week low of Rs 146.05 on 9 March 2009.
The company's current equity is Rs 18.11 crore. Face value per share is Rs 10.
The current price of Rs 192.05 discounts the company's Q3 December 2008 annualized EPS of Rs 41.13, by a PE multiple of 4.67.
The company said the latest acquisition will enhance its remote infrastructure management and application support services portfolio. The financial details were not disclosed.
En Pointe Technologies India has a pool of competent and certified SAP consultants with rich experience of multi geography, multi country SAP consulting and support services.
Allied Digital Services' net profit fell 13.36% to Rs 18.62 crore on 7.39% fall in net sales to Rs 95.31 crore in Q3 December 2008 over Q2 September 2008.
Allied Digital operates in diversified segments viz. IT solutions, networking and communication solutions, integrated solutions and software solutions. It is also into infrastructure management services, telecom-BPO and remote management services to its customers pan India.
Wednesday, April 1, 2009
Reliance says minor fire at new unit contained
1 Apr 2009, 1908 hrs IST, REUTERS
NEW DELHI: Reliance Industries Ltd on Wednesday confirmed that a "minor fire" broke out in a part of its Reliance Petroleum unit’s new 580,000 bpd refinery at Jamnagar in Gujarat.
"There was a minor fire in a section of the RPL (Reliance Petroleum) refinery... The rest of the RPL refinery is operating normallly and product dispatch from the RPL refinery is continuing as per schedule," a company spokesman said.
He said there were no casualties and the fire was brought under control in less than 30 minutes.
NEW DELHI: Reliance Industries Ltd on Wednesday confirmed that a "minor fire" broke out in a part of its Reliance Petroleum unit’s new 580,000 bpd refinery at Jamnagar in Gujarat.
"There was a minor fire in a section of the RPL (Reliance Petroleum) refinery... The rest of the RPL refinery is operating normallly and product dispatch from the RPL refinery is continuing as per schedule," a company spokesman said.
He said there were no casualties and the fire was brought under control in less than 30 minutes.
Sharekhan revises Jindal Saw target to Rs 476
1 Apr 2009, 1242 hrs IST, ET Bureau
Sharekhan has maintained ‘Buy’ call on Jindal Saw and revised its target to Rs 476 per share which turns out to be over 165 per cent up side from current market price of Rs 179.
The brokerage says, “The order inflows have been slower for all pipe makers in the last few months due to deferment and curtailment of capex worldwide across user sectors.
Though, we believe that in the immediate period, the companies are likely to receive certain orders, as some of the domestic projects are up for bidding, especially from GAIL.
However, we believe that particularly in the scenario of slackening orders, the players are likely to cut on their margins in order to fuel the growth of their order book. Consequently, we expect the future orders to be quoted at lower margins.”
“We are reducing our estimates for JSL by 11.2 per cent for CY2009 and expect the company to report earnings of Rs 79.3 for the year.
At the current levels, the stock is trading at extremely attractive valuations, available at 2.2x its CY2009E earnings and at an EV/EBIDTA of 1.5x. Looking historically, the stock has already reached its trough valuations, which were last seen in 2002-2003.
We maintain our Buy recommendation on the stock with a revised price target of Rs 476 (6x CY2009E earnings),” the report said. At 12:20 pm, The scrip was up 1 per cent at Rs 179 against its previous close on the BSE.
Sharekhan has maintained ‘Buy’ call on Jindal Saw and revised its target to Rs 476 per share which turns out to be over 165 per cent up side from current market price of Rs 179.
The brokerage says, “The order inflows have been slower for all pipe makers in the last few months due to deferment and curtailment of capex worldwide across user sectors.
Though, we believe that in the immediate period, the companies are likely to receive certain orders, as some of the domestic projects are up for bidding, especially from GAIL.
However, we believe that particularly in the scenario of slackening orders, the players are likely to cut on their margins in order to fuel the growth of their order book. Consequently, we expect the future orders to be quoted at lower margins.”
“We are reducing our estimates for JSL by 11.2 per cent for CY2009 and expect the company to report earnings of Rs 79.3 for the year.
At the current levels, the stock is trading at extremely attractive valuations, available at 2.2x its CY2009E earnings and at an EV/EBIDTA of 1.5x. Looking historically, the stock has already reached its trough valuations, which were last seen in 2002-2003.
We maintain our Buy recommendation on the stock with a revised price target of Rs 476 (6x CY2009E earnings),” the report said. At 12:20 pm, The scrip was up 1 per cent at Rs 179 against its previous close on the BSE.
SREI Infrastructure strikes back after 20.6% slide in seven days
SREI Infrastructure Finance galloped 13.76% to Rs 27.70 at 14:22 IST on BSE, on bargain hunting after the stock tumbled 20.65% in the preceding seven trading sessions.
The stock hit a 52-week high of Rs 173 on 5 May 2008 and a 52-week low of Rs 22.30 on 9 March 2009.
The stock had fallen 20.65% to Rs 24.35 on 31 March 2009 from a recent high of Rs 31.95 on 20 March 2009.
The small-cap stock had underperformed the market over the past one month till 31 March 2009, falling 18.83% as compared to the Sensex's 9.19% rise. It had also underperformed the market in the past one quarter, declining 37.16% as compared to the Sensex's 0.63% rise.
The company's current equity is Rs 116.14 crore. Face value per share is Rs 10.
The current price of Rs 27.70 discounts the company's Q3 December 2008 annualized EPS of Rs 0.81, by a PE multiple of 34.20.
The company had on 18 February 2009 in consortium with West Bengal Transport Infrastructure Development and Cezch based Amex International bagged an order worth Rs 6000 crore for setting up light rail transit system (LRTS) in Kolkata. The project is expected to be executed in approximately 4-5 years from the commencement of construction.
SREI Infrastructure Finance's net profit fell 91.7% to Rs 2.35 crore on 76.8% fall in net sales to Rs 40.56 crore in Q3 December 2008 over Q3 December 2007.
The company provides finance for infrastructure, construction and mining equipment, infrastructure projects and renewable energy systems. It also provides insurance products, investment banking, capital market services, venture capital, foreign exchange services and retail financing services.
The stock hit a 52-week high of Rs 173 on 5 May 2008 and a 52-week low of Rs 22.30 on 9 March 2009.
The stock had fallen 20.65% to Rs 24.35 on 31 March 2009 from a recent high of Rs 31.95 on 20 March 2009.
The small-cap stock had underperformed the market over the past one month till 31 March 2009, falling 18.83% as compared to the Sensex's 9.19% rise. It had also underperformed the market in the past one quarter, declining 37.16% as compared to the Sensex's 0.63% rise.
The company's current equity is Rs 116.14 crore. Face value per share is Rs 10.
The current price of Rs 27.70 discounts the company's Q3 December 2008 annualized EPS of Rs 0.81, by a PE multiple of 34.20.
The company had on 18 February 2009 in consortium with West Bengal Transport Infrastructure Development and Cezch based Amex International bagged an order worth Rs 6000 crore for setting up light rail transit system (LRTS) in Kolkata. The project is expected to be executed in approximately 4-5 years from the commencement of construction.
SREI Infrastructure Finance's net profit fell 91.7% to Rs 2.35 crore on 76.8% fall in net sales to Rs 40.56 crore in Q3 December 2008 over Q3 December 2007.
The company provides finance for infrastructure, construction and mining equipment, infrastructure projects and renewable energy systems. It also provides insurance products, investment banking, capital market services, venture capital, foreign exchange services and retail financing services.
Wockhardt tumbles on liquidity crisis
Wockhardt tumbled 14.15% to Rs 73.30 at 13:08 IST as the drugmaker sought to restructure its debt and said it is evaluating a recast of certain businesses and units, suggesting a liquidity crunch.
The stock hit a high of Rs 80 and a low of Rs 68.45 so far during the day. The stock had a 52-week high of Rs 323 on 21 May 2008 and a 52-week low of Rs 67.50 on 13 March 2009.
India's seventh largest pharma company by revenues has an equity capital of Rs 54.72 crore. Face value per share is Rs 5.
The current price of Rs 73.30 discounts the company's Q3 December 2008 annualized EPS of Rs 4.91, by a PE multiple of 14.92.
Wockhardt said it is facing problems in servicing its debt and will undertake a corporate debt restructuring exercise, for which it has roped in ICICI Bank. The firm's promoter Habil Khorakiwala resigned as managing director (MD) on Tuesday, 31 March 2009, but will continue as executive chairman. His son, Murtaza will be the new MD.
The company said it is looking at restructuring its certain businesses and subsidiaries, due to which it has delayed declaring the financial results of the fiscal year ended 31 December 2008. The audit of the annual accounts of the company for the financial year ended December 2008 would be completed by 25 April 2009.
The company's market capitalisation of Rs 936 crore is tiny compared to its debt burden of over Rs 3,000 crore. There is also intense speculation that the company has incurred substantial mark-to-market losses because bets on forex derivatives had gone wrong.
Although the exact quantum of the alleged mark-to-market loss could not be ascertained, media report estimated it between $150 million to $300 million.
The firm will reportedly need substantial infusion of equity by selling subsidiaries, assets or by inducting a strategic partner in the parent company.
Wockhardt's debt stood at Rs 3,777 crore as of 31 December 2008. The company would have to repay Rs 2,370 crore in two years, with about Rs 1,324 crore coming up for repayment in calendar 2009.
Earlier some reports had suggested that French pharma major Sanofi Aventis has had prliminary talks with the promoters of Wockhardt for a possible buy out.
On Tuesday, 31 March 2009, a newspaper report had indicated that Ranbaxy Group's Fortis Healthcare had emerged as a front-runner to acquire a 74% stake in unlisted Wockhardt Hospitals for close to Rs 750 crore.
Wockhardt's net profit declined 77% to Rs 13.43 crore on 20.9% fall in net sales to Rs 416.83 crore in Q3 December 2008 over Q3 December 2007.
Wockhardt specializes in the production of pharmaceuticals in both generic and prescription forms. The company has develop brands in a variety of segments, including anti-infectives, pain & inflammation, cough, psychiatry, medical nutrition, vaccines, active pharmaceutical ingredients and bio-technology.
The stock hit a high of Rs 80 and a low of Rs 68.45 so far during the day. The stock had a 52-week high of Rs 323 on 21 May 2008 and a 52-week low of Rs 67.50 on 13 March 2009.
India's seventh largest pharma company by revenues has an equity capital of Rs 54.72 crore. Face value per share is Rs 5.
The current price of Rs 73.30 discounts the company's Q3 December 2008 annualized EPS of Rs 4.91, by a PE multiple of 14.92.
Wockhardt said it is facing problems in servicing its debt and will undertake a corporate debt restructuring exercise, for which it has roped in ICICI Bank. The firm's promoter Habil Khorakiwala resigned as managing director (MD) on Tuesday, 31 March 2009, but will continue as executive chairman. His son, Murtaza will be the new MD.
The company said it is looking at restructuring its certain businesses and subsidiaries, due to which it has delayed declaring the financial results of the fiscal year ended 31 December 2008. The audit of the annual accounts of the company for the financial year ended December 2008 would be completed by 25 April 2009.
The company's market capitalisation of Rs 936 crore is tiny compared to its debt burden of over Rs 3,000 crore. There is also intense speculation that the company has incurred substantial mark-to-market losses because bets on forex derivatives had gone wrong.
Although the exact quantum of the alleged mark-to-market loss could not be ascertained, media report estimated it between $150 million to $300 million.
The firm will reportedly need substantial infusion of equity by selling subsidiaries, assets or by inducting a strategic partner in the parent company.
Wockhardt's debt stood at Rs 3,777 crore as of 31 December 2008. The company would have to repay Rs 2,370 crore in two years, with about Rs 1,324 crore coming up for repayment in calendar 2009.
Earlier some reports had suggested that French pharma major Sanofi Aventis has had prliminary talks with the promoters of Wockhardt for a possible buy out.
On Tuesday, 31 March 2009, a newspaper report had indicated that Ranbaxy Group's Fortis Healthcare had emerged as a front-runner to acquire a 74% stake in unlisted Wockhardt Hospitals for close to Rs 750 crore.
Wockhardt's net profit declined 77% to Rs 13.43 crore on 20.9% fall in net sales to Rs 416.83 crore in Q3 December 2008 over Q3 December 2007.
Wockhardt specializes in the production of pharmaceuticals in both generic and prescription forms. The company has develop brands in a variety of segments, including anti-infectives, pain & inflammation, cough, psychiatry, medical nutrition, vaccines, active pharmaceutical ingredients and bio-technology.
Ranbaxy Lab in recovery mode
Ranbaxy Laboratories rose 7.25% to Rs 177.80 at 11:57 IST, extending gains for the second session after the company said its new owner Daiichi Sankyo will meet US drug regulators next month to sort out issues at Ranbaxy's Poanta Sahib plant in India.
The Japanese company made the announcement during market hours yesterday, 31 March 2009, when the stock rose 4.58% to Rs 165.60.
The stock hit a high of Rs 1543.70 and a low of Rs 1497.70 so far during the day. The stock had a 52-week high of Rs 613.70 on 19 June 2008 a 52-week low of Rs 133.15 on 12 March 2009.
India's largest drug maker by sales has an equity capital of Rs 210.18 crore. Face value per share is Rs 5.
Japanese pharma company Daiichi Sankyo, the new owner of Ranbaxy Laboratories will meet US Food and Drugs Administration (FDA) officials next month to sort out the regulatory problems at Ranbaxy's Poanta Sahib plant in India, Daiichi Sankyo's chief Takashi Shoda said on Tuesday, 31 March 2009.
Following an investigation that started in 2006, the US FDA last year banned 30 drugs made by Ranbaxy at Poanta Sahib and Dewas plants from selling in the US. The US regulator, which found Ranbaxy had falsified test results on its drugs, has also halted approval of pending and new marketing applications from the two Indian plants of the company.
Daiichi Sankyo acquired Ranbaxy in November last year, to diversify its business operations into the generic drug and emerging markets.
In a separate development, Daiichi Sankyo and Ranbaxy said on Tuesday that Ranbaxy will market the Japanese company's anti-hypertensive drug, Olvance in India. The two companies have entered into a licensing agreement allowing Ranbaxy to promote and market the drug in India. This is the first product from Daiichi Sankyo's portfolio to be introduced in India through Ranbaxy.
On Monday, 30 March 2009, Ranbaxy had announced winning the US FDA's approval to make and sell topirimate tablets, used for the treatment of seizures. The tablet is a generic version of epilepsy drug Topamax, owned by Ortho-McNeil Pharmaceutical Inc, a unit of Johnson & Johnson.
Ranbaxy, on 23 March 2009, had received good manufacturing practice (GMP) certificates from Medicines and Healthcare products Regulatory Agency (MHRA) of UK and the TGA, Department of Health and Ageing of the Australian Government for its manufacturing facility at Paonta Sahib, Himachal Pradesh, after a joint audit conducted by them in October 2008.
In February 2009, the US FDA halted reviews of drug applications from Paonta Sahib plant saying test results submitted in approved and pending drug applications were found to have been falsified.
On 16 September 2008, the US FDA had issued two warning letters and instituted an Import Alert barring the entry of all finished drug products and active pharmaceutical ingredients from Ranbaxy's Dewas, Paonta Sahib and Batamandi facilities, due to alleged violations of US current Good Manufacturing Practices requirements. That action barred the commercial importation of 30 different generic drugs into the United States and remains in effect.
Ranbaxy Laboratories had on 9 March 2009 received approval from the US FDA to manufacture and market ramipril capsules. Ramipril is used in the treatment of cardiovascular diseases.
Ranbaxy had announced on 6 March 2009, that it had received approval from Australia's drug regulator TGA to market anti-fungal drug Terbinafine. The drug is a generic version of Novartis' Lamisil tablets.
Ranbaxy Laboratories reported a net loss of Rs 806.55 crore in Q4 December 2008 as against a net profit of Rs 48.40 crore in Q4 December 2007. Net sales fell 2% to Rs 1012.72 crore in Q4 December 2008 over Q4 December 2007.
Ranbaxy Laboratories manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates.
The Japanese company made the announcement during market hours yesterday, 31 March 2009, when the stock rose 4.58% to Rs 165.60.
The stock hit a high of Rs 1543.70 and a low of Rs 1497.70 so far during the day. The stock had a 52-week high of Rs 613.70 on 19 June 2008 a 52-week low of Rs 133.15 on 12 March 2009.
India's largest drug maker by sales has an equity capital of Rs 210.18 crore. Face value per share is Rs 5.
Japanese pharma company Daiichi Sankyo, the new owner of Ranbaxy Laboratories will meet US Food and Drugs Administration (FDA) officials next month to sort out the regulatory problems at Ranbaxy's Poanta Sahib plant in India, Daiichi Sankyo's chief Takashi Shoda said on Tuesday, 31 March 2009.
Following an investigation that started in 2006, the US FDA last year banned 30 drugs made by Ranbaxy at Poanta Sahib and Dewas plants from selling in the US. The US regulator, which found Ranbaxy had falsified test results on its drugs, has also halted approval of pending and new marketing applications from the two Indian plants of the company.
Daiichi Sankyo acquired Ranbaxy in November last year, to diversify its business operations into the generic drug and emerging markets.
In a separate development, Daiichi Sankyo and Ranbaxy said on Tuesday that Ranbaxy will market the Japanese company's anti-hypertensive drug, Olvance in India. The two companies have entered into a licensing agreement allowing Ranbaxy to promote and market the drug in India. This is the first product from Daiichi Sankyo's portfolio to be introduced in India through Ranbaxy.
On Monday, 30 March 2009, Ranbaxy had announced winning the US FDA's approval to make and sell topirimate tablets, used for the treatment of seizures. The tablet is a generic version of epilepsy drug Topamax, owned by Ortho-McNeil Pharmaceutical Inc, a unit of Johnson & Johnson.
Ranbaxy, on 23 March 2009, had received good manufacturing practice (GMP) certificates from Medicines and Healthcare products Regulatory Agency (MHRA) of UK and the TGA, Department of Health and Ageing of the Australian Government for its manufacturing facility at Paonta Sahib, Himachal Pradesh, after a joint audit conducted by them in October 2008.
In February 2009, the US FDA halted reviews of drug applications from Paonta Sahib plant saying test results submitted in approved and pending drug applications were found to have been falsified.
On 16 September 2008, the US FDA had issued two warning letters and instituted an Import Alert barring the entry of all finished drug products and active pharmaceutical ingredients from Ranbaxy's Dewas, Paonta Sahib and Batamandi facilities, due to alleged violations of US current Good Manufacturing Practices requirements. That action barred the commercial importation of 30 different generic drugs into the United States and remains in effect.
Ranbaxy Laboratories had on 9 March 2009 received approval from the US FDA to manufacture and market ramipril capsules. Ramipril is used in the treatment of cardiovascular diseases.
Ranbaxy had announced on 6 March 2009, that it had received approval from Australia's drug regulator TGA to market anti-fungal drug Terbinafine. The drug is a generic version of Novartis' Lamisil tablets.
Ranbaxy Laboratories reported a net loss of Rs 806.55 crore in Q4 December 2008 as against a net profit of Rs 48.40 crore in Q4 December 2007. Net sales fell 2% to Rs 1012.72 crore in Q4 December 2008 over Q4 December 2007.
Ranbaxy Laboratories manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates.
GTL Infrastructure Block deal
GTL Infrastructure gained 4.58% to Rs 30.85 at 11:35 IST on BSE, after a block deal of 12.59 lakh shares was executed on NSE at Rs 31.10 per share.
The block deal constituted 0.15% of the company's equity.
The stock hit a high of Rs 32 and a low of Rs 30.20 so far during the day. The stock hit a 52-week high of Rs 58.50 on 5 May 2008 and a 52-week low of Rs 27.60 on 25 March 2009.
The mid-cap stock had underperformed the market over the past one month till 31 March 2009, rising 3.15% as compared to the Sensex's 9.19% rise. It had also underperformed the market in the past one quarter, falling 3.12% as compared to the Sensex's 0.63% rise.
The company's current equity is Rs 814.66 crore. Face value per share is Rs 10.
Earlier in February 2009, the company had unveiled its plans to roll out 25,000 towers in the country by 2012, entailing an investment of $1.8 billion.
GTL Infrastructure reported a net loss of Rs 1.40 crore in Q3 December 2008 as compared to net loss of Rs 16.01 crore in Q3 December 2007. Net sales rose 55.3% to Rs 57.91 crore in Q3 December 2008 over Q3 December 2007.
The company provides passive telecom infrastructure and related network infrastructure for multiple service providers.
The block deal constituted 0.15% of the company's equity.
The stock hit a high of Rs 32 and a low of Rs 30.20 so far during the day. The stock hit a 52-week high of Rs 58.50 on 5 May 2008 and a 52-week low of Rs 27.60 on 25 March 2009.
The mid-cap stock had underperformed the market over the past one month till 31 March 2009, rising 3.15% as compared to the Sensex's 9.19% rise. It had also underperformed the market in the past one quarter, falling 3.12% as compared to the Sensex's 0.63% rise.
The company's current equity is Rs 814.66 crore. Face value per share is Rs 10.
Earlier in February 2009, the company had unveiled its plans to roll out 25,000 towers in the country by 2012, entailing an investment of $1.8 billion.
GTL Infrastructure reported a net loss of Rs 1.40 crore in Q3 December 2008 as compared to net loss of Rs 16.01 crore in Q3 December 2007. Net sales rose 55.3% to Rs 57.91 crore in Q3 December 2008 over Q3 December 2007.
The company provides passive telecom infrastructure and related network infrastructure for multiple service providers.
MIC Electronics soars on booking new orders
MIC Electronics spurted 17.09% to Rs 20.90 at 10:55 IST after the company won rental orders worth Rs 3 crore for display units from various clients.
The announcement was made after market hours yesterday, 31 March 2009
Meanwhile, the BSE Sensex was down 78.19 points, or 0.81%, to 9631.02.
On BSE, 7.86 lakh shares were traded in the counter. The stock hit a high of Rs 21.35 and a low of Rs 18.25 so far during the day.
MIC booked rental orders worth Rs 3 crore for colour video display screens for election campaigns and different other events.
Meanwhile, the company acquired new clients for its colour video display screens during the month of March 2009. Its new clientele includes Reliance Industries, Teleflex Info Services, Chandigarh Hockey Stadium, Shiv Naresh Sports, Varma Display Systems and Dani Multimedia.
MIC Elelctronics manufactures colour LED video display systems, LED lightening products and solutions.
The announcement was made after market hours yesterday, 31 March 2009
Meanwhile, the BSE Sensex was down 78.19 points, or 0.81%, to 9631.02.
On BSE, 7.86 lakh shares were traded in the counter. The stock hit a high of Rs 21.35 and a low of Rs 18.25 so far during the day.
MIC booked rental orders worth Rs 3 crore for colour video display screens for election campaigns and different other events.
Meanwhile, the company acquired new clients for its colour video display screens during the month of March 2009. Its new clientele includes Reliance Industries, Teleflex Info Services, Chandigarh Hockey Stadium, Shiv Naresh Sports, Varma Display Systems and Dani Multimedia.
MIC Elelctronics manufactures colour LED video display systems, LED lightening products and solutions.
Geodesic spurts on buyback of FCCBs
Geodesic jumped 6.31% to Rs 66.50 at 9:55 IST on BSE, after the company said it has repurchased foreign currency convertible bonds worth $8.5 million.
The company made the announcement of the buyback of the foreign currency convertible bonds (FCCBs) after trading hours on Tuesday, 31 March 2009.
The stock hit a high of Rs 66.50 and a low of Rs 64 so far during the day. The stock hit a 52-week high of Rs 212 on 13 May 2008 and a 52-week low of Rs 38.50 on 28 January 2009.
The company's current equity is Rs 18.44 crore. Face value per share is Rs 2.
The current price of Rs 66.50 discounts the company's Q3 December 2008 annualized EPS of Rs 27.06, by a PE multiple of 2.46.
The buyback of FCCBs will help reduce liabilities of the company. It will also ease concerns about the impact of foreign exchange fluctuations in the profit & loss account, to the extent of the reduction of the FCCBs.
Geodesic had on 6 March 2009 announced a buyback of up to 25% of equity shares at a maximum price of Rs 75. The company appointed IDFC-SSKI as merchant bankers for the buyback purpose.
Geodesic's net profit fell 58.7% to Rs 62.37 crore on a 60.3% decline in sales to Rs 140.80 crore in Q3 December 2008 over Q2 September 2008.
Geodesic develops messaging and e-business solutions. The company markets an instant messaging technology, which enables users to set up, manage, and broadcast information to other users across networks including cell phones and personal digital assistants. The company also provides consulting services.
Geodesic had on 9 February 2009 announced that the promoters have pledged more than 7.60 lakh shares representing 0.82% of the equity capital of the firm. The company did not mention with whom the shares were pledged. The total promoter shareholding in the company stood at 23.65% as on 31 December 2008.
The company made the announcement of the buyback of the foreign currency convertible bonds (FCCBs) after trading hours on Tuesday, 31 March 2009.
The stock hit a high of Rs 66.50 and a low of Rs 64 so far during the day. The stock hit a 52-week high of Rs 212 on 13 May 2008 and a 52-week low of Rs 38.50 on 28 January 2009.
The company's current equity is Rs 18.44 crore. Face value per share is Rs 2.
The current price of Rs 66.50 discounts the company's Q3 December 2008 annualized EPS of Rs 27.06, by a PE multiple of 2.46.
The buyback of FCCBs will help reduce liabilities of the company. It will also ease concerns about the impact of foreign exchange fluctuations in the profit & loss account, to the extent of the reduction of the FCCBs.
Geodesic had on 6 March 2009 announced a buyback of up to 25% of equity shares at a maximum price of Rs 75. The company appointed IDFC-SSKI as merchant bankers for the buyback purpose.
Geodesic's net profit fell 58.7% to Rs 62.37 crore on a 60.3% decline in sales to Rs 140.80 crore in Q3 December 2008 over Q2 September 2008.
Geodesic develops messaging and e-business solutions. The company markets an instant messaging technology, which enables users to set up, manage, and broadcast information to other users across networks including cell phones and personal digital assistants. The company also provides consulting services.
Geodesic had on 9 February 2009 announced that the promoters have pledged more than 7.60 lakh shares representing 0.82% of the equity capital of the firm. The company did not mention with whom the shares were pledged. The total promoter shareholding in the company stood at 23.65% as on 31 December 2008.
STIMULATION FOR BULLS
Concerns about the credit-crisis eased a bit after a report said Indian corporates raised Rs 37800 crore in Q1 March 2009 through bond sales, a record quarterly collection. Expectations of a further easing of the monetary policy by the Reserve Bank of India also supported stocks.
There will be absence of support from mutual funds in the near term. Mutual funds had supported the market last month to prop-up their net assets value for the year ended 31 March 2009 (FY 2009) which ended on Tuesday. Domestic institutional investors which includes mutual funds and insurance firms had mopped up stocks worth a massive Rs 1039.07 crore on Tuesday, 31 March 2009, as per the provisional data released by the stock exchanges. Mutual funds bought shares worth a net Rs 849.90 crore in the month of March 2009, till 30 March 2009.
Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on Wednesday, 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
Signs of improvement in the manufacturing sector helped offset dismal exports data. India's exports fell an annual 21.7% in February 2009 to $11.91 billion, government data released today afternoon showed. It was a fifth straight monthly fall in exports as the global slowdown slashed demand for Indian goods. The trade deficit narrowed to $4.9 billion in February 2009 from $6.1 billion in January 2009 due to a sharp fall in imports. Imports fell an annual 23.3% to $16.82 billion in February 2009. Oil imports fell 47.5% during the month from a year earlier to $4.05 billion.
Prime Minister Manmohan Singh on 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
There will be absence of support from mutual funds in the near term. Mutual funds had supported the market last month to prop-up their net assets value for the year ended 31 March 2009 (FY 2009) which ended on Tuesday. Domestic institutional investors which includes mutual funds and insurance firms had mopped up stocks worth a massive Rs 1039.07 crore on Tuesday, 31 March 2009, as per the provisional data released by the stock exchanges. Mutual funds bought shares worth a net Rs 849.90 crore in the month of March 2009, till 30 March 2009.
Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on Wednesday, 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
Signs of improvement in the manufacturing sector helped offset dismal exports data. India's exports fell an annual 21.7% in February 2009 to $11.91 billion, government data released today afternoon showed. It was a fifth straight monthly fall in exports as the global slowdown slashed demand for Indian goods. The trade deficit narrowed to $4.9 billion in February 2009 from $6.1 billion in January 2009 due to a sharp fall in imports. Imports fell an annual 23.3% to $16.82 billion in February 2009. Oil imports fell 47.5% during the month from a year earlier to $4.05 billion.
Prime Minister Manmohan Singh on 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Sensex ends above 9900 led by realty, IT majors
1 Apr 2009, 1754 hrs IST, Mohammed Sabir, ET Bureau
In absence of any domestic cues, Indian markets took directions from Asian markets and closed higher on Wednesday. Gains were led by buying in reality. IT and oil&gas majors while healthcare and FMCG underperformed.
Benchmarks tripped in the early trade but pulled back with recovery in Asian markets. Sustained buying during the afternoon helped indices to crawl back in the positive terrain. Weak opening of European markets had a negative impact but it was short-lived. Broader markets continued to outperform the benchmarks.
"Our cues will take centre stage once corporate and elections results are out. We are right now aligning with the global markets and moving in tandem with them," said technical analyst, Mitesh Thacker of miteshthacker.com.
The BSE Sensex closed at 9,901.99, higher by 193.49 points or 1.99 per cent from the previous close. Intraday, the 30-share index moved between 9,921.96 and 9,546.29 - a band of around 375.67 points.
The Nifty ended at 3060.35, up 39.4 points or 1.3 per cent over Tuesday's close. The NSE benchmark saw a high of 3069.30 and low of 2965.70 during the day.
"We are waiting for Nifty to break 3150 on the upside and investors should take long positions only after that. Once the resistance is broken we may see levels of 3350-3400," Thacker added
The small cap space outperformed the mid and frontline stocks, with the index of former ending higher by nearly 2.87 per cent. The midcap index gained 1.88 per cent.
Advances on BSE numbered 1,823 and declines were 558, while unchanged stocks were 82.
Index gainers comprised Ranbaxy Laboratories (7.73%), HDFC (6.7%), Reliance Infrastructure (6.64%), DLF (5.68%) and ICICI Bank (5.07%).
Sun Pharmaceuticals (-4.23%), BHEL (-2.15%), Grasim Industries (-1.72%), Bharti Airtel (-1.72%), Sterlite Industries (-1.21%) and NTPC (-1.03%) were the losers.
Among sectors, realty led the rally with a gain of 5.41 per cent followed by IT, oil & gas, banking and consumer durables. However, healthcare and FMCG sectors underperformed the index.
Wockhardt shares were hammered down after the company announced a major organisational change and admitted that it was facing problems in servicing its debt. Its chairman and managing director Habil Khorakiwala has stepped down as MD to make way for his younger son, while it has decided to approach the corporate debt restructuring cell through its lead banker in the wake of mounting debt. The scrip ended over 11 per cent lower.
Aptech announced its fourth quarter results. The company's standalone net profit
for FY08 was at Rs 4.75 crore versus Rs 2.46 crore. Net sales rose to Rs 113.66 crore versus Rs 99.26 crore.
The standalone net sales for December quarter was at Rs 26.85 crore against Rs 26.27 crore in previous quarter. It reported net loss of Rs 90 lakhs against profit of Rs 40 lakhs in the same quarter a year ago. The scrip ended 8.82 per cent higher.
European markets showed some resilience and were off early lows. FTSE 100 was down 0.32 per cent, CAC 40 fell 0.47 per cent and DAX was down 0.21 per cent. Wall Street is likely to open in the red as Dow Jones futures was down 0.83 per cent, S&P 500 futures moved 0.94 per cent lower and Nasdaq 100 declined 1.15 per cent.
via:E.T
In absence of any domestic cues, Indian markets took directions from Asian markets and closed higher on Wednesday. Gains were led by buying in reality. IT and oil&gas majors while healthcare and FMCG underperformed.
Benchmarks tripped in the early trade but pulled back with recovery in Asian markets. Sustained buying during the afternoon helped indices to crawl back in the positive terrain. Weak opening of European markets had a negative impact but it was short-lived. Broader markets continued to outperform the benchmarks.
"Our cues will take centre stage once corporate and elections results are out. We are right now aligning with the global markets and moving in tandem with them," said technical analyst, Mitesh Thacker of miteshthacker.com.
The BSE Sensex closed at 9,901.99, higher by 193.49 points or 1.99 per cent from the previous close. Intraday, the 30-share index moved between 9,921.96 and 9,546.29 - a band of around 375.67 points.
The Nifty ended at 3060.35, up 39.4 points or 1.3 per cent over Tuesday's close. The NSE benchmark saw a high of 3069.30 and low of 2965.70 during the day.
"We are waiting for Nifty to break 3150 on the upside and investors should take long positions only after that. Once the resistance is broken we may see levels of 3350-3400," Thacker added
The small cap space outperformed the mid and frontline stocks, with the index of former ending higher by nearly 2.87 per cent. The midcap index gained 1.88 per cent.
Advances on BSE numbered 1,823 and declines were 558, while unchanged stocks were 82.
Index gainers comprised Ranbaxy Laboratories (7.73%), HDFC (6.7%), Reliance Infrastructure (6.64%), DLF (5.68%) and ICICI Bank (5.07%).
Sun Pharmaceuticals (-4.23%), BHEL (-2.15%), Grasim Industries (-1.72%), Bharti Airtel (-1.72%), Sterlite Industries (-1.21%) and NTPC (-1.03%) were the losers.
Among sectors, realty led the rally with a gain of 5.41 per cent followed by IT, oil & gas, banking and consumer durables. However, healthcare and FMCG sectors underperformed the index.
Wockhardt shares were hammered down after the company announced a major organisational change and admitted that it was facing problems in servicing its debt. Its chairman and managing director Habil Khorakiwala has stepped down as MD to make way for his younger son, while it has decided to approach the corporate debt restructuring cell through its lead banker in the wake of mounting debt. The scrip ended over 11 per cent lower.
Aptech announced its fourth quarter results. The company's standalone net profit
for FY08 was at Rs 4.75 crore versus Rs 2.46 crore. Net sales rose to Rs 113.66 crore versus Rs 99.26 crore.
The standalone net sales for December quarter was at Rs 26.85 crore against Rs 26.27 crore in previous quarter. It reported net loss of Rs 90 lakhs against profit of Rs 40 lakhs in the same quarter a year ago. The scrip ended 8.82 per cent higher.
European markets showed some resilience and were off early lows. FTSE 100 was down 0.32 per cent, CAC 40 fell 0.47 per cent and DAX was down 0.21 per cent. Wall Street is likely to open in the red as Dow Jones futures was down 0.83 per cent, S&P 500 futures moved 0.94 per cent lower and Nasdaq 100 declined 1.15 per cent.
via:E.T
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