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SKF India net profit falls 62% on auto industry woes

SKF India, a Rs 1,620 crore turnover company that makes bearings and seals used by industries, suffered from the industrial slowdown. The March’09 quarter saw a continuation of a factory shutdowns, reduction in shifts in various sectors, as companies adjusted production schedules in line with declining demand. Automobile makers have cut production, particularly among commercial vehicles, affecting purchases. A general decline in other industries too seems to have affected demand for bearings.

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TCS’ Q4 2009 results hit by poor business environment, outlook for the year remains weak

TCS, which reported its results yesterday, had some good things to say. It has got more clients, revenues in its financial services segment grew and a weaker rupee propped up revenue growth. But the negatives were equally strong: billing rates have dropped, demand in key segments like manufacturing, telecom and hi-tech is slowing and outlook for the year appears gloomy.

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Hindustan Construction Company seeks equity funding

Hindustan Construction Company will seek its board’s approval to raise long term funds to meet its capital expenditure and growth plans. The agenda for the April 24 board meet was to approve its financial results. It has been expanded now, and the board will also consider the company’s plan to raise funds through an equity issue, including a rights issue.

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Tech Mahindra shows the money, brings $581mn to complete Satyam acquisition

Satyam Computer Services has announced that Tech Mahindra has deposited $351mn in an escrow to fund the preferential allotment for a 31% stake. It has also deposited $231mn required for the 20% open offer. That completes the funding requirements for the Satyam acquisition. Tech Mahindra can now appoint four of its nominees on the Satyam board who will join the six government appointed nominees. Satyam will allot to Tech Mahindra the shares required for the 31% stake, after getting Sebi approval and fulfilment of other conditions.

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Satyam gets Company Law Board approval for deal, gets 9 more months to declare results

Tech Mahindra’s acquisition of Satyam Computer Services is likely to proceed smoothly, as it is a government nominated board at the helm of affairs. That was evident in the speed with which the Company Law Board approved the preferential allotment to Tech Mahindra, to give it a 31% stake in Satyam.

Tech Mahindra can appoint four nominees on Satyam’s board while the existing six government nominees will continue to hold their positions. The new directors will get the same immunity that the existing directors have from any litigation in the country.

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Arvind restructures Rs 904 crore debt; promoters to subscribe to warrants

The additional breathing space is important as the company is going through a difficult phase. In April-December 2008, revenues grew by 7.4% to Rs 1733 crore but higher material and energy costs hit margins. Its operating profit was down by a tenth though it was still a respectable figure at Rs 193 crore.
 

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Larsen & Toubro has forecast its FY’10 order inflow to grow by 25%-35%

Larsen & Toubro

Engineering company Larsen & Toubro’s order inflow in FY’09 increased by 24% to Rs 52,000 crore. In the fourth quarter ended March 2009, its order inflows were Rs 12,900 crore, flat compared to last year. The order book is a key measure used to evaluate how much an engineering company’s revenues will grow in the near to medium term.

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Infosys Technologies Q4 revenues down 1.8%, profit up 2.6%

The software bellwether Infosys Technologies’s business took a hit in FY’09. In the fourth quarter, its revenues fell by 1.8% to $1.1bn while its net profit grew by 2.6% to $321mn. These are figures compiled under IFRS accounting norms. But the company’s figures are much better under Indian accounting norms, due to the rupee’s sharp depreciation against the dollar.

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