The promoters of Bharti Airtel and MTN have agreed upon a merger agreement. This will be a novel deal involving an Indian company and a foreign company, with a consideration involving cash and a share swap. If it succeeds, both companies will hold stakes in each other, with Bharti holding the upper hand with a 49% stake in MTN. Of course, it is paying a stiff price to get that privilege.
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ITC’s sales down 1% in the March quarter, cigarettes still the boss
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ITC would prefer to be known as a diversified company, with businesses ranging from hotels to biscuits to soaps in its portfolio. But its 2008-09 results show once again, how critical the cigarettes’ division is to revenues and more so for profit growth.
Filed under: Companies, Household & Personal Care, Top News, agri-business, cigarettes, hotel, ITC, Paper
TCS’ Q4 2009 results hit by poor business environment, outlook for the year remains weak
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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.
Filed under: Companies, Information Technology, Top News, Results, TCS
Monsoon in 2009-10 to be 96% of normal, off last year’s level
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This may qualify as a near normal monsoon as per the meteorological department’s guidelines, but is lower compared to last year’s forecast of 99%. The Met has been using a new model since 2007, and last year the actual rainfall fell just 1% short of the forecast. Lesser rainfall usually raises a question mark on agricultural output. The economic impact of a poor crop has lessened as industry and services account for a larger share of GDP. But in a slowdown, a good agricultural output provides a buffer. Continue Reading →
Filed under: Agriculture, Economy+Policy, Top News, Forecast, Monsoon
Satyam gets Company Law Board approval for deal, gets 9 more months to declare results
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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.
Filed under: Companies, Top News, Company Law Board, M&A, Satyam, Satyam Scam, Tech Mahindra
Inflation nears zero: WPI at 0.18%
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In recent months, industrial output and inflation have both falling. That has led to fears of deflationary conditions prevailing in the economy, an undesirable phenomenon. Some expect the RBI to lower interest rates again to revive demand. But the RBI itself wants the impact of the measures it has taken to percolate fully, before it takes more measures.
Filed under: Economy+Policy, Top News, CPI, deflation, industrial growth, Inflation, RBI, WPI
Arvind restructures Rs 904 crore debt; promoters to subscribe to warrants
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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.
Filed under: Companies, Top News, Arvind, Debt restructuring, Markets Debt & Forex Markets, Textiles, Warrants
Larsen & Toubro has forecast its FY’10 order inflow to grow by 25%-35%
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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.
Filed under: Companies, Engineering, Top News, L&T, Larsen & Toubro, order book, orders, projects
Infosys Technologies Q4 revenues down 1.8%, profit up 2.6%
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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.
Filed under: Companies, Information Technology, Top News, Guidance, Infosys, Results
Pfizer to raise stake in Pfizer India to 75%; is delisting on the cards?
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Pfizer Investment Netherlands BV, a subsidiary of Pfizer Inc, will pay Rs 675 a share to acquire a 33.77% stake in Pfizer India. At this price, the total consideration is Rs 680 crore and Pfizer’s stake will go up to 75%. It will take regulatory approvals for the open offer. Pfizer will have to revise its offer price for the open offer to succeed, as the current market price is already Rs 685. It would have known it may not get many buyers at this price. But it expects the offer to open only in June 2009, so it has used the prevailing price to arrive at a floor. Continue Reading →