Sterlite Industries, a non-ferrous metal producer and subsidiary of Vedanta Resources, announced a massive fund raising exercise, with the amount exceeding media reports. The company, with 2008-09 revenues of Rs 21,144 crore or $4.4bn, has said it will raise about $1.5bn with the promoter subscribing to $500mn or about one-third of the issue. The issue will be priced at $12.15 or Rs 583 per ADS. Continue Reading →
Companies
Bajaj Finserv’s income jumps 59%, moves from loss to Rs 42 crore profit
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Bajaj Finserv, the financial services company spun off from Bajaj Auto, reported good results for the June 2009 quarter. Its income –earned from life and general insurance, retail lending and other financial services- rose by 59% to Rs 106.2 crore. Despite a sharp increase in employee costs, its net profit for the quarter was Rs 66.9 crore compared to a loss of Rs 44.1 crore. The key reason for the turnaround in its performance is an increase in its income from investments.
Highlights
Companies
OnMobile and Telefonica join hands for value added services in Latin America
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Indian mobile value added services provider OnMobile Global secured a key win by entering the Latin American market. The company has signed a long term agreement with Spanish telecom company Telefonica Internacional to provide value added services in the region. The company recently tied up with Vodafone to provide value added services to its global telecom customers, initially in emerging markets. Continue Reading →
Banks
HDFC Bank battles slowdown; fee income and cost control aid profit growth
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HDFC Bank’s first quarter results at first seem to suggest all is well; with its net profit growing by 30.5% to Rs 606.1 crore. A closer look reveals that the bank’s core business is suffering from the after effects of the economic slowdown.
Economy+Policy
Railways carry 10% more goods in June 2009
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In June 2009, the Indian Railways carried 9.6% more cargo at 71.5mn tonnes, compared to June 2008. That is the highest so far in the current fiscal and also much higher than the growth in full year 2008-09. Railway freight volumes give an inkling of how the basic industries are performing in an economy.
Economy+Policy
Discretion and IPOs don’t mix well
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India’s initial public offer (IPO) market has evolved over the years, from when the issue price was set by a government body called the Controller of Capital Issues to now where investors bid in a book-built issue to determine the price. Continue Reading →
Economy+Policy
High level ministerial team for infrastructure
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Infrastructure projects in India are now being executed in half the time it took some years ago. Well, that may well be the headline a few years down the line, if the government succeeds in yet another effort to speed up infrastructure projects in the country. The government has set up a big committee of ministers to oversee the process of approval and execution of infrastructure projects.
Companies
India’s industrial output grows in May 2009
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A revival in industrial production is a healthy sign for the Indian economy, as it had turned negative in the recent past. With a question on agricultural output due to a late monsoon, it falls upon industry and services to contribute to the economy’s growth in 2009-10.
What:
- The index of industrial production for May 2009 has increased by 2.7%, doubling from its growth in April 2009.
- The manufacturing index, a keenly watched sub-indicator, grew by 2.5%.
Why:
Companies
Infosys June 2009 results a worry, currency fluctuations cushion earnings
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Infosys Technologies kicked off the earnings season on a positive note. Its results reflect a tough operating environment but exceeded its guidance and market expectations. The software major’s revenues declined by 2.9% over the preceding quarter to Rs 5,472 crore in the June 2009 quarter. Its net profit would have declined too but a 130% increase in other income kept net profit constant at Rs 1,915 crore. In dollar terms, its revenues declined by 0.1% sequentially and by 1.9% in constant currency terms.
Companies
Tech Mahindra-Satyam: India’s first leveraged buyout?
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At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.