Results Update - 31/01/2008 - Part 3

Tata Steel Q3 net flat at Rs 1,069cr

Tata Steel today reported a net profit (standalone) of Rs 1,068.58 crore for the third quarter ended December, 2007 when compared with Rs 1,063.75 crore reported in the corresponding quarter of the previous fiscal.

According to a release issued by the company to the BSE today, total income for Q3FY08 increased 10.3% to Rs 5,040.95 crore from Rs 4,568.72 crore in Q3FY07.

BPCL Q3 net down marginally at Rs 291cr

Bharat Petroleum Corporation (BPCL) today announced a 4.01% decline in net profit at Rs 291.3 crore for the quarter ended December 31, 2007 when compared with Rs 303.5 crore in Q3FY07.

According to a release issued to the Bombay Stock Exchange, total income increased to Rs 29,118.8 crore for the quarter ended December 31, 2007 from Rs 24,354.3 crore for the quarter ended December 31, 2006.

RCom Q3 consolidated net up 48%

Reliance Communications today reported a 48.5% increase in consolidated net profit at Rs 1,372.83 crore for the third quarter ended December 31, 2007 when compared with Rs 924.45 crore in Q3FY07.

According to a release issued by the company to the BSE today, total income for Q3FY08 was up 29.8% at Rs 4,874.20 crore as against Rs 3,755.30 crore in Q3FY07.

On a standalone basis, the net profit for the quarter ended December 31, 2007 dropped 43% to Rs 436.48 crore from Rs 771.04 crore in the quarter ended December 31, 2006. Total income increased 12% to Rs 3,410.82 crore from Rs 3,044.49 crore in Q3FY07.

Tata Motors Q3 net up 9% at Rs 655cr

Tata Motors today reported a 8.75% increase in consolidated net profit at Rs 654.79 crore for the third quarter ended December 31, 2007 when compared with Rs 602.07 crore in Q3FY07.

According to a release issued to the BSE, the company's total income has increased to Rs 9,324.69 crore for the quarter ended December 31, 2007 from Rs 8,189.66 crore in Q3FY07.

The company, on a standalone basis, reported a 2.75% decline in net profit at Rs 499.05 crore for the quarter ended December 31, 2007 as compared to Rs 513.17 crore in Q3FY07.

The company's total income increased to Rs 7,343.64 crore for the quarter ended December 31, 2007 from Rs 6,910.07 crore for the quarter ended December 31, 2006.

Results Update - 31/01/2008 - Part 2

IOC Q3 net up 17% to Rs 2,091cr

Indian Oil Corporation today announced a 16.70% rise in net profit at Rs 2,090.69 crore for the quarter ended December 31, 2007 when compared with Rs 1,791.37 crore in Q3FY07.

According to a release issued to the Bombay Stock Exchange, total income increased to Rs 65,404.84 crore for the quarter ended December 31, 2007 from Rs 56,438.16 crore for the quarter ended December 31, 2006.

Unitech Q3 net up 39% at Rs 526cr

Real estate firm Unitech today reported a 39% increase in consolidated net profit at Rs 525.78 crore for the third quarter ended December 31, 2007 when compared with Rs 377.84 crore in Q3FY07.

Total income of the group during the quarter under review was Rs 1,165.11 crore, up 19% from the corresponding period last fiscal, the company said in a release today.

ACC FY07 net up 15% at Rs 1,427cr

ACC today announced a 15.14% increase in net profit at Rs 1,427.34 crore for the year ended December 31, 2007 when compared with Rs 1,239.60 crore for the year ended December 31, 2006.

According to a release issued to the BSE, total income increased to Rs 7,189.43 crore in FY07 from Rs 5,984.56 crore in FY06.

The company, on a standalone basis, reported a net profit of Rs 1,438.59 crore in FY07 as against Rs 1,231.84 crore in FY06. Total income increased to Rs 7,135.97 crore from Rs 5,945.13 crore in FY06.

The board today approved a final dividend of Rs 10 per share for FY07.

Along with the interim dividend of Rs 10 per share paid earlier, the total dividend for FY07 is Rs 20, the release added.

Uttam Galva Steels Q3 net up 29%

Uttam Galva Steels has recorded a net profit of Rs 29.15 crore in the quarter ended December 31, 2007, an increase of 29% over the same period last year.

Net sales for the quarter touched Rs 582.69 crore, up 12%.

For the nine months (April-December 2007), net profit stood at Rs 93.39 crore, up 14%.

Ankit Miglani, director (commercial), Uttam Galva Steels, said focus on value-addition combined with operational efficiencies contributed to a healthy bottomline.

“With the completion of our expansion plans in their final stages, we will be better equipped not only to fulfill diverse customer needs in the domestic market but also further consolidate our presence in the global markets in the quarters ahead,” he said.

The company has crossed exports of two million tonne of value added steel. In the last one year, Uttam Galva has increased its exposure to the export markets from 120-135 countries. The company has entered into an agreement with Ispat Industries to buy five lakh tonne of hot rolled (HR) coils per annum making it the sole domestic supplier of HR coils to Uttam.

Deccan, Kingfisher to merge in 3:7 ratio

The Deccan Aviation board, at a meeting held today, appointed April 1, 2008 as the date for merger with Kingfisher Airlines.

Subsequently, Deccan Aviation will be known as Kingfisher Airlines.

"Deccan Aviation shall allot shares in the ratio of three fully paid equity shares of face value Rs 10 each for seven equity shares of Rs 10 each held in Kingfisher Airlines," Deccan's release to the Bombay Stock Exchange said today.

The share entitlement ratio has been determined based on the recommendation of independent valuers KPMG India and Dalal & Shah.

Deccan's charter business would be sold to an entity to be jointly owned by Captain Gopinath and the UB Group, the release added.

Cairn India sees higher output in Rajasthan

Cairn Energy, the parent company of Cairn India, today said the plateau production potential of its Mangala field in Rajasthan has increased 25% to 125,000 barrels of oil per day (bopd).

In an operational update issued by Cairn Energy, the company said: "An upgrade of the Mangala Stock Tank Oil Initially in Place (STOIIP) and resources has been submitted to the Rajasthan joint venture and the government of India (GoI).

"An FDP addendum will be submitted in 2008 for GoI approval. The addendum will contain a recommendation to increase the Mangala field plateau production rate consistent with the increased potential of 125,000 bopd. This could represent an increase of up to 25% on the Mangala production rate contained in the original FDP submitted in 2005.

"The increase in the Mangala resource potential has instigated an on-going review to optimise the scale and scope of the Rajasthan development. This review is also addressing ways of mitigating the impact of the increasing cost challenges on the project, which has been driven by the general demand for engineering resources and materials in the industry."

Bill Gammell, chief executive, Cairn Energy, said: "The potential of Mangala to produce up to 125,000 barrels of oil per day has led to a review of the optimum scale and scope of the Rajasthan development, and we are confident of achieving first oil in the second half of 2009."

Cairn India is the operator of the Mangala field and holds 70% stake, and ONGC holds the remaining 30% stake.

Rajesh Exports gets Rs 463cr order

Bangalore-based Rajesh Exports has bagged an export order worth Rs 463 crore from Excel Goldsmiths.

The gold jewellery order is is to be completed by March 30. Execution of the order will significantly add to the bottom line of the company.

According to Rajesh Mehta, chairman, Rajesh Exports, the demand for Indian-made designer jewellery is exhibiting consistent growth in the global markets.

Tata Chemicals to buy US firm for Rs 4,000cr

Tata Chemicals (TCL) has signed definitive agreements to acquire US-based soda ash maker General Chemical Industries Products Inc (GCIP) for $1.05 billion (about Rs 4,000 crore) to become the second largest producer of soda ash in the world.

The announcement was made exactly a year after Tata Steel, another Tata group company, acquired British steel major Corus.

TCL is now the third largest manufacturer of soda ash and sodium bicarbonate in the world with a production capacity of close to 3 million tonne per annum (MTPA). The acquisition will add another 2.5 MTPA to take its total capacity to 5.5 MTPA - next only to US-based FMC Chemicals.

The company had bought 63.5% stake in UK-based Brunner Mond Group for about Rs 508 crore in December 2005. It also holds a 33% stake in Indo Maroc Phosphore S.A. (IMACID), Morocco, which is engaged in the manufacture of phosphoric acid.

Soda ash contributed 40% of TCL's revenues of Rs 4,563 crore for the first nine months of 2007-08. The rest of the revenues are from its fertiliser and inorganic chemicals businesses.

"This is a historic occasion for Tata Chemicals. The acquisition will help us access markets in North America, Latin Americ and the Far East," said Homi Khusrokhan, managing director, TCL, at a press conference in Mumbai today.

GCIP's subsidiary General Chemical (Soda Ash) Partners (GCSAP) has mining and manufacturing facilities located at Green River basin in Wyoming, USA. The Green River basin is the largest and most economical natural soda ash mine (trona) in the world. GCSAP shares the Green River basin with three other producers of soda ash, OCI Chemical Corporation, FMC Corporation and Solvay Mineral.

TCL signed an agreement to acquire 100% equity of the privately held GCIP from Herbinger Capital Partners, a private equity player with majority shareholding. The acquisition, subject to US regulatiory clearances, will be done through debt and equity funding, said TCL executives.

A profit-making and debt-free company, GCIP is estimated to have a turnover of over $400 million, said TCL executives.

The Gujarat-based soap and personal care producer Nirma had acquired Searles Valley Minerals (SVM), one of the top five producers of natural soda ash in the US with a turnover of $ 300 million, in November 2007.

Madras Cements buyback at Rs 4,200/share

The board of directors of Madras Cements, which met today, approved a proposal to buy back shares at a maximum price of Rs 4,200 per share.
The current market price is around Rs 3,831.

According to a release issued to the BSE today, the maximum amount for which the shares could be purchased (10% of the paid-up capital and free reserves) would be Rs 644.726 crore.

The board meeting also declared a second interim dividend of Rs 10 per share of Rs 10 each for 2007-08.

"The company has commissioned, on January 20, 2008, an additional clinkering facility at its Jayanthipuram unit because of which the installed cement manufacturing capacity of the company has increased from six million tonne per annum to eight million tonne per annum," the release added.

Wockhardt cuts IPO price band on market woes

The volatility in the Indian stock market has forced Wockhardt Hospitals to revise the price band to Rs 225 (20 per cent at the lower end) and Rs 260 (16 per cent at the upper end) per equity share (from Rs 280 to Rs 310) for its initial public offering (IPO) of 25.09 million equity shares of Rs 10 each for cash at a price determined through a 100 per cent book-building process.

The issue opens on January 31 and closes on February 5.

The Emaar-MGF management, on the other hand, has decided to stick to its price band of Rs 610-690 for 10.26 million shares.

The issue will open on February 1. The IRB Infrastructure Developers issue of 51.06 million equity shares (which opens tomorrow) has a price band of Rs 185 to Rs 220.

The offer comprises a net issue to the public of 24.59 million equity shares of Rs 10 each (the net issue) and a reservation of up to 500,000 equity shares for subscription by eligible employees.

The issue will comprise 24.06 per cent of the post-issue paid-up equity share capital of the company.

The proposed IPO of Wockhardt Hospitals has been assigned an IPO grade of 4 out of 5 by rating agency Fitch Ratings India, indicating above-average fundamentals.

Wockhardt Hospitals intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the company, pre-pay some of the short-term loans and to meet general corporate expenses.

The equity shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

Results Update - 31/01/2008 - Part 1

National Fertilizers Q3 net up 28%

National Fertilizers today announced a 28.42% rise in net profit at Rs 47.03 crore for the quarter ended December 31, 2007 when compared with Rs 36.62 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income increased to Rs 1,179.87 crore for the quarter ended December 31, 2007 from Rs 1,092.33 crore for the quarter ended December 31, 2006

Gitanjali Gems Q3 PAT up 62%

Gitanjali Gems, with interests in diamond and jewellery, retail, infrastructure and lifestyle businesses has posted a 61% rise in net profit at Rs 50.5 crore for the quarter ended 31st December 2007 when compared with Rs 31.3 crore in the same quarter of previous year.

Net revenues were up by 56.7% to Rs 1252. crore from Rs 7,99.5 crore in the same quarter of 2006. Earning per share increased to Rs 6.15 from Rs 4.71.

For the nine months ended 31st December 2007, proft after tax (PAT) increased 62.4% to Rs 1,27.3 crore from Rs 78.4 crore in the same quarter of the previous year.

Diluted EPS improved to Rs 15.98 as compared to Rs 12.74 in the same quarter of the previous year.

The net revenues improved by 51.6% to Rs 33,51.29 crore from Rs 22,11.2 crore of 2006.

The company has bought 100% stake in Brightest Circle Jewellery (BCJPL) and acquired ‘Nakshatra Brand’. The acquisition gives Gitanjali the sole rights over Nakshatra as well as a 100% stake in BCJPL which is now a fully-owned subsidiary. Nakshatra is expected to yield sales of approximately Rs 10 billion over the next 5 years. Gitanjali has also raised $180 million through the issue of Global Depositary Receipts (GDRs) at $9.67 per GDR.

The proceeds are to be utilized for expanding the company's new and existing businesses, investing in the company's subsidiaries, both in India and abroad, and to augment funds to meet the working capital requirements. Each GDR represents one equity share of the company at a nominal value of Rs. 10 each.

Mehul Choksi, chairman, Gitanjali Gems, said, "Given the multiple growth initiatives, and a model that is shaping up to be both highly competitive and profitable, we remain very enthusiastic about our outlook for the coming years."

CESC Q3 net up 52% at Rs 93cr

CESC, the flagship company of RPG Enterprises, has reported a 52.4% rise in its standalone net profit at Rs 93 crore for the quarter ended December 31, 2007 as against Rs 61 crore posted in the corresponding period last year.

The company’s total income for the same period rose from Rs 615 crore to Rs 703 crore, thereby clocking a growth of 14.3%.

United Phosphorus Q3 net at Rs 49cr

United Phosphorus today announced profit after tax (PAT) of Rs 48.55 crore for the quarter ended December 31, 2007 when compared with Rs 35.68 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income increased to Rs 809.41 crore for the quarter ended December 31, 2007 from Rs 483.96 crore for the quarter ended December 31, 2006.

The company, on a standalone basis, reported a net profit of Rs 7.08 crore for the quarter ended December 31, 2007 as against Rs 49.10 crore in Q3FY07.

The company's total income increased to Rs 426.15 crore for the quarter ed December 31, 2007 from Rs 386.57 crore for the quarter ended December 31, 2006.

The company said that in view of the acquisition of Cerexagri Group of Companies during the March 07 quarter, the current quarterly figures were not comparable with those of corresponding period in the
previous year.

Q3 Results Update - Part 2 - 30/01/2008

DLF Q3 consolidated net profit at Rs 2,139cr

DLF, India's biggest real estate developer, today reported a 6% increase in consolidated net profit at Rs 2,139 crore for the third quarter ended December 31, 2007, when compared with Rs 2,018 crore in the second quarter ended September 30, 2007 due to the growing demand for houses, offices and hotel space.

Total revenue increased 9% to Rs 3,651.25 crore from Rs 3,349 crore in the Q2FY08, a company release said.

Rajiv Singh, vice chairman, DLF, said: "We plan to build 6,000 apartments this quarter when compared with 3,000 apartments in the third quarter, and will limit sales to one per family to focus sales to user-buyers."

MTNL Q3 net down 53%

Mahanagar Telephone Nigam Ltd (MTNL) today announced a 53.17% decline in net profit at Rs 97.63 crore for the quarter ended December 31, 2007 as compared to Rs 208.60 crore in Q3FY07.

According to a release to the BSE, the company's total income has decreased to Rs 1,326.91 crore for the quarter ended December 31, 2007 from Rs 1,428.02 crore for the quarter ended December 31, 2006

Sobha Developers Q3 net up 34%

Bangalore-based Sobha Developers today reported a 33.69% increase in net profit at Rs 61.10 crore for the third quarter ended December 31, 2007 when compared with Rs 45.70 crore in Q3FY07.

Total income moved up 19.16% to Rs 355.70 crore for the third quarter ended December 31, 2007 as against Rs 298.50 crore in Q3FY07.

NTPC Q3 net down 15% to Rs 1,780cr

National Thermal Power Corporation (NTPC) today announced a 15.37% decline in net profit, on a standalone basis, at Rs 1,779.9 crore for the third quarter ended December 31, 2007 when compared with Rs 2,103.3 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, total income increased to Rs 10,093.2 crore for the quarter ended December 31, 2007 from Rs 9,311.0 crore in the quarter ended December 31, 2006.

Cummins India Q3 PAT up 19%

Cummins India announced today that its net profit after tax (PAT) increased 18.63% at Rs 74.61 crore for the quarter ended December 31, 2007 when compared with Rs 62.89 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income increased to Rs 617.11 crore for the quarter ended December 31, 2007 from Rs 502.95 crore for the quarter ended December 31, 2006

Q3 Results Update - Part 1

Bajaj Auto Q3 consolidated net down 17%

Bajaj Auto today reported a 16.60% decline in consolidated net profit at Rs 273.82 crore for the quarter ended December 31, 2007 when compared with Rs 328.35 crore in Q3FY07.

According to a release issued to the Bombay Stock Exchange, net sales and income from operations declined to Rs 2,633.26 crore for the quarter ended December 31, 2007 from Rs 2,696.03 crore for the quarter ended December 31, 2006.

The company, on a standalone basis, reported a 5.32% decline in net profit at Rs 326.81 crore for the quarter ended December 31, 2007 as against Rs 345.19 crore in Q3FY07.

Total income declined from Rs 2,729.18 crore for the quarter ended December 31, 2006 to Rs 2,680.35 crore for the quarter ended December 31, 2007.

Sun Pharma Q3 net up 60%

Sun Pharmaceutical Industries today reported a 60.09% increase in net profit after minority interest at Rs 318.35 crore for the quarter ended December 31, 2007 as compared to Rs 198.85 crore in Q3FY07.

According to a release to the BSE, the company's total income has increased to Rs 821.88 crore for the quarter ended December 31, 2007 from Rs 603.59 crore for the quarter ended December 31, 2006 .

Mahindra & Mahindra PAT up 68%

Mahindra and Mahindra today announced a 67.63% increase in profit after tax (PAT) on a stand-alone basis at Rs 405.15 crore for the quarter ended December 31, 2007 as against Rs 241.68 crore in Q3FY07.

According to a release to the BSE, the company's total income increased to Rs 2,980.25 crore for the quarter ended December 31, 2007 from Rs 2,617.30 crore for the quarter ended December 31, 2006

Aurobindo Pharma net dips 8%

Hyderabad-based generic pharmaceuticals and active pharmaceutical ingredients (APIs) manufacturer, Aurobindo Pharma, witnessed a slight decline of 8% in net profit at Rs 55.25 crore for quarter ended December 31, 2007 when compared with Rs 60.12 crore in Q3FY07.

The company's total income grew 7.35% to Rs 549.52 crore for the quarter ended December 31, 2007 from Rs 511.86 crore for the quarter ended December 31, 2006.

Tata Chemicals Q3 PAT dips 42%

Tata Chemicals today announced a 41.55% dip in net profit after tax (PAT) of Rs 91.09 crore for the quarter ended December 31, 2007 as compared to Rs 155.85 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income has decreased to Rs 1712.67 crore for the quarter ended December 31, 2007 from Rs 1,793.70 crore for the quarter ended December 31, 2006 .

The company has, however, on a stand-alone basis, posted a PAT increase of 7.45% at Rs 125.48 crore for the quarter ended December 31, 2007 when compared with Rs 116.77 crore in Q3FY07.

The company's total income has decreased to Rs 1,236.52 crore for the quarter ended December 31, 2007 from Rs 1,318.81 crore for the quarter ended December 31, 2006 .

TTK Prestige launches Kitchen Boutique

Bangalore-based kitchen appliances maker TTK Prestige announced plans to enter a new business vertical -- total kitchen solutions - and launched a new format Prestige Kitchen Boutique.

"We plan to sell modular kitchen in the range of Rs 1-2 lakh through Prestige Kitchen Boutique," said T T Jagannathan, chairman, TTK Group.

"Currently, we have two stores in Bangalore and we plan to open two more stores by the end of this fiscal. We will be present in all major cities by the end of 2009 through the franchise route," he added.

S Ravichandran, managing director, TTK Prestige, said: "Each boutique will entail an investment of Rs 50 lakh, and will operate on the franchisee model like Prestige Smart Kitchens. All boutiques will have a complete backend of designers, carpenters, plumbers, masons and electricians to ensure prompt and quick fulfillment of client's needs."

TTK Prestige today reported a 47.16% increase in net profit at Rs 6.24 crore for the third quarter ended December 31, 2007 when compared with Rs 4.24 crore in Q3FY07.

Revenues increased 20.17% to Rs 102.68 crore from Rs 85.44 crore in the corresponding quarter of the previous fiscal.

Jagannathan said: "This is the first time that the company's top line has crossed the Rs 100 crore-mark due to improved margins. Also, the company was able cut borrowings to the tune of Rs 16.25 crore."

Shipping Corporation Q3 net dips 22%

Shipping Corporation of India today reported a 21.99% dip in net profit at Rs 176.78 crore for the quarter ended December 31, 2007 when compared with Rs 226.63 crore in Q3FY07.

According to a release to the BSE, the company's total income decreased to Rs 981.12 crore for the quarter ended December 31, 2007 from Rs 1128.74 crore for the quarter ended December 31, 2006

Bank of Baroda Q3 net up 52%

Bank of Baroda today reported a 52.23% increase in net profit at Rs 501.05 crore for the quarter ended December 31, 2007 when compared with Rs 329.13 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the bank's total income has increased to Rs 3620.18 crore for the quarter ended December 31, 2007 from Rs 2668.11 crore for the quarter ended December 31, 2006 .

Bharti Airtel gets spectrum in 5 circles

Bharti Airtel today announced that the government had alloted additional spectrum to the company in 5 telecom circles in the country.

The 5 circles are West Bengal, Gujarat, Uttar Pradesh (west), Assam and Haryana.

"We have received a formal communication from the Department of Telecom (DoT) for the allotment of additional spectrum to the company in 5 circles," Manoj Kohli, president and CEO, Bharti Airtel, said.

The company had applied for additional spectrum in 10 telecom circles across the country.

The other circles where the company is still awaiting the allotment of additional spectrum are Rajasthan, Andhra Pradesh, Karnataka, Bihar and Tamil Nadu.

Kohli said they were expecting additional spectrum in the rest of 5 circles in a couple of months.

Bharti Airtel Q3 consolidated net up 38%

Bharti Airtel today reported 38.2% rise in consolidated net profit at Rs 1,428.56 crore for the third quarter ended December 2007 when compared with Rs 1,033.34 crore reported in the correponding quarter a year ago.

According to a release issued by Bharti to the BSE today, group's total income as per Indian Gaap for Q3FY08 increased 42.4% to Rs 7,017.95 crore from Rs 4,928.18 crore for the quarter ended December, 2006.

On a standalone-basis, the group's Q3FY08 net rose 36% to Rs 1,419.84 crore as against Rs 1,043.69 crore in Q3FY07. Total income increased 41.5% to Rs 6,682.57 crore from Rs 4,723.68 crore.

Consolidated net profit as per US Gaap was up 41.7% at Rs 1,722.40 crore for Q3FY08 as against Rs 1,215.13 crore for Q3FY07. Total income was, also, up 41.7% at Rs 6,963.90 crore from Rs 4,912.92 crore.

DLF Q3 consolidated net at Rs 2,145cr

DLF today posted a consolidated net profit of Rs 2,144.98 crore for the third quarter ended December, 2007. Total income for the same period stood at Rs 3,651.25 crore.

According to a release issued by DLF to the BSE today, the company reported a standalone profit of Rs 605.84 crore for Q3FY08 and total income of Rs 1,812.59 crore.

Diamond Cables plans expansion in Vadodara

Power equipment manufacturer Diamond Cables is setting up a green-field project to manufacture transmission towers at Haripura village near Vadodara.

The facility will have a capacity of 48,000 MT at an estimated cost of Rs 32 crore.

The company has already acquired the land for the plant and the project will go on stream before March 2009.

The company is also expanding the project to manufacture LT aerial bunched cables and LT power cables for 25,000 kms at Vadadala village in Gujarat at an estimated cost of Rs 38 crore.

The expansion project will start in June 2008. On completion of the project, the company will become the third largest power cable manufacturer in the country.

The company posted a net profit of Rs 13 crore against the topline of Rs 126 crore for the quarter ending December 31, 2007.

BHEL to invest Rs 736cr in Trichy

Bharat Heavy Electricals ( BHEL) today announced that the company would be investing Rs 736 crore to increase the capacity of its manufacturing plant at Trichy in Tamil Nadu by 2009.

The company will be upgrading the production capacity of boilers by over four times in the unit. It has already invested Rs 190 crore on the boiler shop in Tamil Nadu.

"The company is augmenting its manufacturing capacity to 15,000 Mw per annum by 2009. As part of this, BHEL is upgrading its boiler manufacturing facility at its Trichy plant," the company said in a statement.

With the completion of this capacity augmentation programme, BHEL's production capacity for manufacturing thermal and nuclear boilers would go up to 4,81,000 million tonne from a capacity of 1,08,000 million tonne prior to commencement of the expansion programme, the statement said.

Suzlon consolidated Q3 net at Rs 152cr

Suzlon Energy today reported a consolidated net profit of Rs 151.69 crore for the third quarter ended December 2007. Net profit for the quarter ended December 2006 stood at Rs 174.39 crore.

According to a release issued by Suzlon to the BSE today, the group's total income rose 67.2% to Rs 3,242.29 crore for Q3FY08 from Rs 1,939.29 crore in the quarter ended December 2006.

On a standalone basis, Suzlon's Q3FY08 net zoomed almost 92% to Rs 338.18 crore as against Rs 176.23 crore in Q3FY07. Total income increased 49.5% to Rs 1,683.16 crore from Rs 1,126.07 crore.

Unity Infra wins Rs 126cr order

Unity Infraprojects has won Rs 125.90 crore order for construction of a speciality hospital in Hyderabad.

According to a release issued by Unity to the BSE today, the company has received the "Notification of Award" through the Hospitals Services Consultancy Corporation on behalf of Ministry of Health & Family Welfare, government of India and Nizam Institute of Medical Sciences, Hyderabad, for "Construction of Speciality Hospital and Accident (Trauma) & Emergency Hospital for upgradation of Nizam Institute of Medical Sciences, Hyderabad".

The contract is to be completed in a period of 15 months, the release added.

Jindal Saw gets $200 mn order from Cairn

Jindal Saw (JSL) announced the receipt of Letter of Award (LOA) from Cairn Energy India (Cairn) for the supply of line pipes, tracer tube, insulation and bends for Barmer Salaya Pipe Line (BSPL) project of Cairn.

The value of the LOA is more than $200 million. With this order, the total order book of JSL exceeds $1 billion (approx. Rs 4000 crore).

The pipeline, weighing approximately 100,000 tonne, will be jointly owned by Cairn in partnership with Oil and Natural Gas Corporation (ONGC).

The pipeline will be used to transport heavy crude oil from oil fields in Mangala in North-west India to a terminal in Salaya, a distance of approximately 600 kilometer.

The company will execute this order from May, 2008 to December, 2008 and is scheduled to be completed by January, 2009.

Q3 Results As on 29/01/2008

Maruti Suzuki Q3 net up 24%

Maruti Suzuki India today reported a 24% increase in net profit at Rs 467.04 crore for the third quarter ended December 31, 2007 when compared with Rs 376.41 crore in Q3FY07.

According to a release issued to the BSE today, total income increased to Rs 4,844.80 crore for the quarter ended December 31, 2007 from Rs 3,807.90 crore in Q3FY07.

SAIL Q3 net up 31%

Steel Authority of India (SAIL) today reported a 31.5% rise in net profit (standalone) at Rs 1,934.66 crore for the third quarter ended December 31, 2007, when compared with Rs 1,471.19 crore in the corresponding quarter a year ago.

According to a release issued by SAIL to the BSE today, total income increased 12.4% to Rs 9,847.64 crore for Q3FY08 from Rs 8,760.16 crore in the quarter ended December, 2006.

Nalco Q3 net down 43%

Nalco today announced a 42.46% dip in net profit at Rs 329.44 crore for the quarter ended December 31, 2007 as against Rs 572.60 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income decreased to Rs 1247.26 crore for the quarter ended December 31, 2007 from Rs 1546.40 crore for the quarter ended December 31, 2006.

Havells India Q3 net up 44%

Electrical and power distribution equipment company Havells India’s net profit jumped 44% to Rs 37 crore in the quarter ended December 31, 2007 as against Rs 26 crore in the corresponding quarter in the previous year.

Revenue during the third quarter also increased by 37% to Rs 535 crore as against Rs 301 crore during the corresponding quarter of the last year, the company said in a statement.

The performance of the switchgear sales continued with the healthy trend, showing a growth of 52% to Rs 141 crore from Rs 93 crores achieved in the corresponding quarter of the previous year.

The cable & wire business segment showed a growth of 28% with Rs 241 crore as against Rs 189 crore in the same period last year.

Anil Gupta, joint managing director, Havells India, said: "The quarter gone by has been remarkable for the company wherein we consolidated our market share reflected in the financial performance. This performance reflects the fundamental strengths of our business model, which is driving us towards becoming the leading player globally in the electrical product and power distribution equipment space."

Aztecsoft Q3 net down 80% at Rs 2.2cr

Aztecsoft today reported 80% dip in net profit at Rs 2.19 crore for the third quarter of 2007-08 when compared to the same period last fiscal.

The company has attributed the massive dip to certain one-time costs such as a provision of bonus due to a retrospective amendment of Payment of Bonus Act, 1965; training of campus hires and; reduction in the currency exchange rate for the quarter by 2.23%.

The revenue for the period was Rs 63.31 crore, a 11.25% dip when compared to the corresponding quarter last fiscal.

On a year-on-year basis, the revenue growth in US dollar terms was around 14%.

The company has continued to take a hit following the transfer of the Offshore Development Centre (ODC) operations of Dendrite International. The Dendrite ODC, which contributed about 10% of Aztecsoft's consolidated revenue, was acquired by Dendrite International in January 2007.

The operating profit stood at Rs 2.54 crore, a 78% decline when compared to Q3 2006-07.

On a sequential basis, the net profit declined by 68% while the revenue improved marginally by 2.1%. In US dollar terms, the revenue grew by 5% quarter-on-quarter.

Great Eastern Shipping Q3 net up 77%

Great Eastern Shipping Company today announced a 77% increase in net profit at Rs 293.57 crore for the quarter ended December 31, 2007 when compared with Rs 165.85 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income increased to Rs 744.28 crore for the quarter ended December 31, 2007 from Rs 519.85 crore for the quarter ended December 31, 2006

Eicher Motors Q3 net declines 11%

Eicher Motors registered a 11.2 % decline in net profit at Rs 15.8 crore for quarter ended December 31, 2007 as against Rs 17.8 crore in the previous quarter year-on-year (yoy).

The company's total income (net of excise) grew 11 % for the quarter amounted to Rs 554.1 crores as against a total income (net of excise) of Rs 499 crore in the previous comparable quarter. Its EBITDA for the quarter declined 3.4% at Rs 36.5 crores when compared with Rs 37.8 crores in the previous quarter.

Asian Paints Q3 net up 66%

Asian Paints today announced a 66.50% increase in net profit at Rs 118.87 crore for the quarter ended December 31, 2007 when compared with Rs 71.39 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company's total income increased to Rs 1,190.82 crore for the quarter ended December 31, 2007 from Rs 943.27 crore for the quarter ended December 31, 2006

Chennai Petroleum plans Rs 5000cr revamp

Chennai Petroleum Corporation (CPCL) plans to invest Rs 5,000 crore for revamping its Chennai refinery to enhance the quality of manufactured petroleum products.

According to D Selvaraj, general manager, maintenance, CPCL, the revamping will be completed by 2009 and CPCL will bear the entire cost of the project.

The company is also planning to supply Euro4 quality petrol in the next one or two years.

CPCL also intends to set up a 15-million tonne per year capacity refinery at Ennore and has approached the state government for 3,000 acre of land.

"We are in the process of acquiring the land. The new refinery would be sophisticated, one that would be able to supply higher-end products," Selvaraj said.

Piramyd`s Trumart is now Indiabulls Mart

Indiabulls has renamed Piramyd Retails’ Trumart stores as Indiabulls Mart and Indiabulls Megastore.

This follows the acquisition of Piramyd Retail by Indiabulls Wholesale Services, the retail arm of Indiabulls Real Estate, in December 2007.

Indiabulls is also re-launching these stores to win customers and improve margins by strengthening the supply chain and relationships with vendors.

‘’The stores are being redone in terms of what they sell, how they sell, and the user-experience,’’ said a senior group executive.

Piramyd has 35 neighbourhood convenience stores and seven lifestyle stores largely in the western.

Indiabulls is trying to leverage its relationships with suppliers to offer good deals at its convenience stores and win customers. ‘’We are trying to re-introduce the customers to Indiabulls Mart,’’ said Ikroop Singh, CEO, Indiabulls Wholesale Services.

This was necessary as a study conducted few weeks after it took over Trumart found that customers perceived these to be ‘’MRP stores’’ (goods sold at the maximum retail prices) and customers don’t often find the stuff they want.

When organised retailers were harping on price, Piramyd was not able to provide extra savings to customers as its business was not growing fast enough. Piramyd had initially planned to roll out 128 Trumart stores by 2010.

“Customers started equating it with kirana (neighbourhood grocery) stores’’ said an analyst tracking retail sector. Inability to scale up also meant that the chain could not attract the right margins from suppliers.

Retailers who buy from distributors operate on 8 per cent margin while organised retailers who sell bigger volumes command 10-12 per cent margin, which can go up to 18-20 per cent in some categories. Piramyd’s bargaining power with suppliers also suffered when it was talking to prospective suitors in the last six months.

The retail arm of Indiabulls Real Estate is setting up 30 hypermarkets in tier-II cities such as Jaipur and Ahmedabad, and has already procured land in 21 of the 30 cities.

It is also strengthening supply chains by implementing SAP and ensuring that all its formats (hypermarkets, lifestyle and convenience stores) are on same technology platform.

The company also plans to ramp up the number of convenience stores from 35 to 50 by March and also plans to open a few lifestyle stores. Indiabulls acquired 84 cent stake in Piramyd Retail in December for Rs 175 crore.

Shares of Piramyd Retail have more than doubled to Rs 199.75 on the BSE after it was acquired by Indiabulls. They had fallen to an all-time low of Rs 49 on August 24.

Amsterdam to power Suzlon growth

Company shifts several key executives to management centre in the Netherlands.

Suzlon Energy, India’s largest wind turbine maker, is in the process of relocating key management executives to the company’s Group Management Centre in Amsterdam, the Netherlands.

The company, now among the top-five wind turbine manufacturers in the world, may also seek to list on leading international stock exchanges in a couple of years.

“While our corporate headquarters will remain in Pune, our global business will span out from Amsterdam since that offers us locational and operational advantages in the context of the nature of our business,” said Tulsi R Tanti, chairman and managing director, Suzlon Energy.

Suzlon has about 25 top executives working from its Amsterdam office. Its international marketing operations are coordinated from Aarhus, Denmark.

Suzlon acquired Hansen Transmissions International – the Belgium-based gear box manufacturer – for Rs 2,500 crore in May 2006, and bought German wind turbine manufacturer REpower for Rs 7,314 crore a year later to access technologies and talent as a part of its global foray.

“In India, we are the largest player and have the best talent and facilities available here. Hansen and REpower were two of the best assets available for growth outside India. Europe, which generates half of the total global wind power, holds potential for our growth,” said Tanti.

However, he ruled out acquisitions in the near future.

Proximity to manufacturing, research and development (R&D) facilities of Hansen and REpower is one reason for moving the main operations to Amsterdam, Tanti explained.

Suzlon has international orders amounting to Rs 14,307 crore (for 2916 mw), as compared with orders totalling Rs 2,404 crore (441 mw) from the domestic market.

Its revenues from India contribute 46 per cent of its total turnover, but this is expected to shrink to about 20 per cent in three years in the context of the pace of the company’s global business. Suzlon has targeted 40 per cent of its revenues from Europe, which now accounts for half the total wind energy installed in the world.

Tanti said the company also planned to list on major international stock exchanges, but had not yet fixed a timeframe for this.

“We will list Suzlon on major bourses at an appropriate time, but we have not decided where and when,” he said.

He informed that the R&D team at REpower had developed 6 mw offshore wind turbines, the first of its kind.

The largest offshore wind turbines today are of 5 mw capacity and cost over Rs 50 crore a unit. REpower plans to manufacture 300 units of 5 mw and 6 mw turbines in three years.

Suzlon’s gearbox R&D unit is located in Belgium, turbine development in India and Germany, and aerodynamics research in the Netherlands. Its manufacturing facilities are located in Belgium, China and the US.

Big Bazaar targets Rs 8,000 cr turnover

Big Bazaar, the largest retail chain of Future Group, is eyeing a turnover of Rs 8,000 crore by the next financial year.

The company hopes to achieve this mark by mutliplying the number of stores and implementing cost-cutting measures.

Speaking on the sidelines of Images Fashion Forum in Mumbai, Kishore Biyani, CEO, Future Group, said, “We want to introduce new value culture, manage operating costs better and boost profitability of Big Bazaar. Hence, we have hived off the business. However, to fund our expansion, we are not looking at listing Big Bazaar.”

Recently, Pantaloon Retail, the group’s listed entity, decided to hive off four business divisions, including Big Bazaar and Food Bazaar, into separate companies.

The company is now looking at openining a total of 300 Big Bazaar stores and has introduced the neighbourhood concept of retail, opening stores in residential areas. It will also introduce new business segments such as health and wellness in its stores.

Biyani further stated that Big Bazaar would focus on ‘kanjussi culture’, a term he used to explain the company’s focus on identifying areas to cut costs.

“The organisation has adopted a new philosophy “garv se kaho hum kanjus hain,” he said, explaining the idea.

The concept focuses on cutting intermediate layers and passing the benefit to customers. Big Bazaar is estimated to end this financial year with a turnover of Rs 4,000 crore and expects to double it over the next year.

The company was also looking to create more buying occasions, he said. For example, on Republic Day, Big Bazaar achieved a sales of Rs 240 crore compared with Rs 150 crore in the previous year.

“There is a need to drive consumption by creating newer buying occasions because traditional festivals can no longer remain the sole purchase drivers,” he said.

Three years ago Big Bazaar introduced discount sales on the Republic Day, which was well received by the country’s youth. For instance, this year, Big Bazaar sold 1,38,000 pairs of jeans and 38,000 cell phones during the Republic Day offer.

ADAG, Farhan sign Rs 250cr deal for 5 films

Reliance Entertainment, a Reliance Anil Dhirubhai Ambani Group company, has signed a five-film co-production deal with filmmaker Farhan Akhtar’s production house Excel Entertainment. The value of the deal is said to be around Rs 250 crore.

Excel Entertainment, promoted by Farhan Akhtar and Ritesh Sidhwani, will make the five movies over three years. A senior Reliance Entertainment executive declined to comment.

Of the five movies, two are a sequel to Shah Rukh Khan starrer ‘Don’ and ‘Voice from the Sky’.

In September last year, Raghav Bahl-promoted Television Eighteen Group (TV18) was believed to be in talks with Excel for the same.

However, according to industry sources the talks did not make much headway.

Sources added that the five films will most likely be released under Big Motion Pictures, a new subsidiary of Reliance Entertainment. In the future, the division will house all film production projects. In the past, Reliance Entertainment had tied up with director Madhur Bhandarkar for three films.

As a part of the new structure, the new arm - Big Motion Picture - will focus on film production, while Adlabs Films, in which Reliance ADAG holds a majority stake, will only deal with movie exhibition (through Adlabs Cinemas), distribution and film processing.

Small airlines make big jump in market share

Hopper, short-haul flights lift performance.

Independent small carriers IndiGo, SpiceJet and GoAir have collectively been able to gain a greater share of the airline passenger market despite the consolidation and merger of the bigger airlines.

Figures released by the Directorate General of Civil Aviation (DGCA) for last year show that the consolidated share of the three independent carriers went up 10 percentage points to 22 per cent from 12 in 2006.

The smaller airlines appear to have gained at the expense of the bigger airlines that spent most of the year in mega-mergers and acquisitions.

The Jet Airways-JetLite combine, Kingfisher and Air Deccan and the domestic operations of Air India (formerly under Indian Airlines which merged with the state-owned international carrier) saw market share fall from 88 per cent in 2006 to 78 per cent in 2007.

Experts said last year saw most of the bigger carriers moving away from ultra-cheap fares and rapid expansion towards smarter route- and fare-planning for better yields.

But what have the independent carriers done right despite the financial clout and larger reach of the big boys?

Industry experts said while most full-service carriers concentrated on point-to-point services, the three smaller carriers put 25 to 30 per cent of their flights on hopper flights (that is, flights that touch down in more than two cities).

By doing so they were able to improve both passenger load factor and yield per seat.

“If the load factor in such flights is above 60 per cent, yield per seat would be 15 to 20 per cent more than a direct flight in the same sector since you would be selling the seat twice,” said a senior executive of a low-cost carrier.

SpiceJet, for instance, has indirect flights from Delhi to Coimbatore via Hyderabad.

“The indirect flight model works out in this sector because there are very few direct flights from Delhi to Coimbatore. And in such cases people choose to take an indirect flight, that would lead to healthy load factors and thus better yields,” said a SpiceJet executive.

SpiceJet’s market share increased from 7 per cent to 9 per cent last year. The number of passengers it carried increased 69 per cent to more than 3.7 million.

IndiGo is choosing cities that have been under-served by other carriers and lack connections to other cities.

“For instance when IndiGo opened in Bhubaneswar, it connected the city to Delhi, Hyderabad, Bangalore and Kolkata instead of just opting for one route. This gives it access to a larger passenger segment and produces better yields,” said a source close to the company.

Last year, IndiGo had a market share of 8 per cent against just 1 per cent in 2006. This was achieved on the back of massive fleet expansion (it more than doubled its fleet from six to 15 aircraft during 2007).

The carrier also more than trebled its frequency from 32 to 108 daily flights in 2007.

IndiGo’s strategy has also been to connect apparently unviable sectors, like the north-east, far in excess of the aviation dispersal route guidelines, which require airlines to ply some unviable routes to qualify to fly to big cities.

“IndiGo has gone to destinations like Imphal and Agartala offering lower fares, which increased its load factors and helped it establish its market there,” said an industry expert.

However, GoAir, which has not been able to expand significantly yet (it connects just 11 cities), has stressed lower fares to garner maximum load factors.

“GoAir’s fares are around 30 per cent lower than most airlines. For inst1ance, on a clogged sector like Mumbai-Delhi, a Kingfisher ticket costs Rs 2,000 as basic fare and a GoAir ticket Rs 500,” said a1n executive of the travel portal yatra.com.

The carrier’s gain in market share was pushed by an 85 per cent average load factor.

Although low fares do not increase yields, they attract a lot of traffic, especially from small and medium businessmen.

“Air travel by small and medium-scale businessmen has increased tremendously due to the affordable fares we offer,” said Jeh Wadia, managing director, Go Air.

The carrier has expanded in a major way to non-metros like Kochi and Ahmedabad and plans to fly to more such towns.

Britannia Q3 net up 177% at Rs 46cr

Britannia Industries today reported a 176.83% increase in net profit at Rs 45.4 crore for the quarter ended December 31, 2007 as against Rs 16.4 crore in Q3FY07.

According to a release to the BSE, the company's total income rose 15.79% at Rs 662.7 crore for the quarter ended December 31, 2007 as against Rs 572.3 crore for the quarter ended December 31, 2006

Tatas take a look at Jaguar's new models

According to a media report, the British luxury car maker Jaguar has shown its new models and the planned product cycle to its probable new parent company, Tata Motors.

Tata Motors was named earlier this month as the preferred bidder by the US car giant Ford for the sale of its two British luxury brands, Jaguar and Land Rover, after evaluating interests by two other suitors -- India's Mahindra and Mahindra and private equity firm OneEquity.

"We have shown Tata our new model lines and the planned product cycle," Ian Callum, director (design), Ford Motor Company, who is responsible for the Jaguar's new XF and XK model ranges, told Financial Times.

The Tata group company is currently holding advanced-level talks for buying Jaguar and Land Rover from Ford and a final decision is expected to be announced by the end of February.

"The two national cultures (Jaguar and Land Rover) appear to fit together very well and Tata is being very respectful about what we are doing," Callum told the financial daily. However, he stopped short of acknowledging Tata's purchase of Jaguar and Land Rover for an estimated $2 billion.

The executive told the newspaper that Jaguar's management was "entirely relaxed" about the prospect of Tatas taking over the carmaker. The daily noted that Ian Cullum believed the possible takeover would allow unfettered development for Jaguar.

Tatas have pipped Indian automaker Mahindra and Mahindra as well as US-based private equity firm OneEquity, led by former Ford CEO Jacques Nasser, to attain the preferred status to hold advanced discussions for a final deal.

The Tatas, as owners of Anglo-Dutch steelmaker Corus, are already one of the top suppliers for Jaguar and Land Rover.

According to the Financial Times, Ian Cullum said there had been frequent tensions in the relationship between Jaguar and Ford, following the purchase by the latter in 1989. Ford had bought Jaguar for about $1.4 billion.

"He disclosed that, in spite of Jaguar management denials at the time, the X-Type small Jaguar -- sales of which have fallen far below expectations -- was essentially designed in Detroit and presented as close to a fait accompli to reluctant designers and engineers at Jaguars Whitley design centre, near the Midlands city of Coventry," the report said..

The report pointed out that many of the problems associated with Jaguar cars, which have persistently failed to attract enough buyers and its descent into losses that hit around $600 million several years ago, lay within Jaguar itself.

It had failed to "move on" and keep pace with its major rivals, Ian Cullum added.

Great Eastern Energy to invest Rs 4000cr

Y K Modi-run Great Eastern Energy Corp (GEECL) today announced that the company would invest Rs 200 crore per year in the second phase of drilling of wells in its Raniganj coal block for exploiting gas from below the coal seams.

"GEECL has already invested Rs 250 crore and will make an additional investment of Rs 200 crore per year in the second phase of drilling and expect the figure to go up to Rs 500 crore per year in future," the company stated in a release.

The total investment is expected to be around Rs 4,000 crore.

GEECL will now continue to drill non-stop (approx 30-35 wells per year) to fully develop the field and supply coal bed methane (gas) to the nearby districts. The second phase of drilling of wells began yesterday.

GEECL has already completed 23 vertical production wells and current production rate from Asansol has reached 2.6 million standard cubic feet per day. It would soon start supplying CBM for CNG purposes for vehicles through IOC petrol stations in the Asansol district.

The London-listed GEECL was planning to list on the Indian bourses by the end of 2008, the release said.

Y K Modi, executive chairman and managing director, GEECL, said, "This is a significant milestone for all of us at GEECL and for the city of Asansol. We are delighted to start this campaign with our own brand new rig. We have bought it from Atlas Copco, USA, who are a leading manufacturer of rigs."

Prashant Modi, president and COO, GEECL, said: "Our first phase of drilling was very successful and was completed within our expected timelines and budget. We will now further leverage our expertise and knowledge along with world class service companies, to optimise the drilling of CBM wells in the second phase."

India is the fourth country after the US, Australia and China to start producing gas from below the coal seams.

Jet Airways Q3 net loss at Rs 91cr

Jet Airways has posted a net loss of Rs 91 crore for the quarter ended December 31 2007 as against a reported net profit of Rs 40 crore in Q3FY07.

According to a release to the Bombay Stock Exchange, the company’s total income increased by 27.8% at Rs 2, 517 crore for the quarter ended December 31, 2007 when compared with Rs 1,969 crore for the quarter ended December 31, 2006.

UCO net dips 33% on accounts restructuring

UCO Bank today reported a 32.67 per cent decline in its net profit at Rs 82.78 crore for the third quarter ending December 31, 2007 as against Rs 122.95 crore recorded during the corresponding quarter last year.

According to S K Goyel, chairman and managing director of the bank, this dip in the net profit is mainly due to restructuring of accounts, which accounted for Rs 22 crore, and Rs 34 crore provisioned for taxation.

Ironically, during the period under review, total business of the bank grew by 20.85 per cent to Rs 1,22,262 crore from Rs 1,01,167 crore reported a year ago.

This include 24.33 per cent rise in deposits to Rs 72,402 crore from Rs 58,232 crore and 16.13 per cent increase in advances to Rs 49,802 crore from Rs 42,877 crore reported a year ago.

Total income of the bank stood at Rs 1,824 crore for the quarter ended December 31, 2007, up 25.67 per cent from Rs 1,451.97crore registered in the corresponding quarter last year.

In the same period, the net NPA of the bank stood at Rs 2.37 per cent, a marginal decrease from 2.17 per cent reported in the corresponding period last year.

“This decline has been mainly due to some pockets where natural calamities hindered the recovery process. The government has approved Rs 50 crore as compensation on this count,” Goyel said.

Lupin plans to buy mid-sized firm in US

Says it's looking for a branded formulation company with $100 mn turnover for acquisition.

Mumbai-based pharmaceutical major Lupin is planning to acquire a mid-sized branded formulation company in the US.

“We are growing in branded formulation business in the US. Now, we are trying to acquire a branded formulation company with a turnover of $100 million,” said Desh Bandhu Gupta, chairman, Lupin.

He said the company was identifying the targets and talks were on with many players. Last year, Lupin acquired Kyowa Pharmaceuticals, one of the top ten generics companies in Japan, and Rubamin Laboratories of Baroda.

Lupin had terminated its marketing contracts with Cornerstone Biopharma of the US for co-development of an anti-infective and with Chester Valley Pharmaceuticals to promote its drugs to paediatricians.

Lupin was one of the first pharmaceutical companies from India to hit the US market with own branded generic drugs. Lupin’s Suprax (cefixime), a cephalosporin antibiotic paediatric suspension, is already a major brand in the US.

Lupin Pharmaceutical, its US subsidiary, sells drug directly to paediatricians. The company also markets two line extensions of Suprax in the US.

Launched in 2004, the drug currently generates over 8500 prescriptions per week in peak season, with 73 per cent growth in sales in 2006-07. The paediatric anti-infective market in the US is valued $ 625 million, as per IMS data, a health care market research agency.

Dr Gupta said most of the generics products launched by Lupin in the US are among the top three selling drugs in their respective categories. Lisinopril, a hypertension drug, is a market leader in the US in its category.

The Rs 2000 crore plus Lupin has a pipeline of over 50 generic products for the US market, mainly niche cephalosporin anti-infection drugs. The US and Europe alone contributed Rs 331 crore to the turnover of 2007-08.

DB Gupta said the company would focus on developing more intellectual property rights on new drugs and drug delivery systems.

Lupin’s advance markets formulations business comprising the US and Europe clocked in Rs 229.6 crore, with a growth of 144% in the third quarter ended December of 2007-08.

Alembic to foray into US, European markets

The 100-year-old Alembic, one of the oldest pharmaceutical companies in India, plans to enter the regulated US and European markets in a big way, with a target of an annual turnover of Rs 1,000 crore within three to five years.

The company has already filed six abbreviated new drug applications (ANDA) with the US Food and Drug Administration (FDA).

The US regulator has already inspected its formulation and active pharmaceutical ingredient (API) or bulk drug manufacturing facilities in Baroda, said Pranav Amin, director, Alembic.

“Though our entry into the US and Europe market was a bit late, we plan to aggressively tap these markets in the coming years. We will file an average 10 drug master files (DMF) and 10 ANDAs with the regulatory agency in the US, every year,” he said.

Pranav is the eldest son of Chirayu C Amin, chairman and managing director of the Rs 750 crore plus Alembic (for the nine months ended December 2007). It was started in 1907 in Baroda as Alembic Chemical Works and manufactured cough syrups, tinctures and alcohol.

The strategy for the US and Europe will be to rope in marketing alliances with leading multinational pharmaceutical companies. Alembic has already signed two to three strategic partnerships for the US market, he said.

Alembic, which acquired the oncology business of Dabur Pharma, last year, is also looking at acquiring brands or marketing facilities in the domestic market, Amin said.

The acquisition helped Alembic, a predominant chronic therapy drug manufacturer, to foray into lifestyle diseases with a portfolio of 24 brands and a marketing force of 400 people.

Currently, Alembic is re-organising the business of the acquired assets, including plans of own manufacturing at Alembic sites in future, he said.

Pranav said the company will set up two new units, a greenfield manufacturing facility at Sikkim with an investment of Rs 20-25 crore for the domestic formulation business and another API facility at Baroda with an investment of Rs 15 crore.

Alembic, which has about seven products in the top drug brands in India with a turnover of more than Rs 10 crore per year, plans to tap the potential in the rural markets. The company will launch at least 20-30 new brands every year in the domestic market, he said.

Its lead brands such as an erythromycin pain killer Althrocin with sales worth Rs 66.70 crore, Roxid (Roxithromycin) with Rs 60.13 crore and anti-infection drug Azithral with Rs 47.21 crore in 2006-07 are among the top-selling drugs in the domestic market.

M&M launches Scorpio SUV in Brazil

Mahindra & Mahindra (M&M), the country’s top utility vehicle maker, today announced the launch of Scorpio SUV and its Pik-Up range (single and double cab) in Brazil with Bramont-Montadora Industrial e Comercial de Veiculos.

A facility has been set up to assemble the vehicles with an annual capacity of 5,000. Body assembly would be undertaken by Usiparts — a Usiminas System company — while the chassis, suspension and engine (power-train) would be assembled by Bramont at its plant in Manaus (AM).

Pravin Shah, executive V-P, international operations, said, “The Brazilian economy and automotive industry is highly evolved and has strategic importance for Mahindra. This will be the first assemble facility in South America for the Mahindra Scorpio platform and will helps to consolidate our presence in the Mercosur region. Our partner Bramont has a professionally managed network of dealers which will ensure our success in the competitive Brazilian market.”

The models introduced will be powered by the 2.6 litre common rail engine that delivers 110 bhp of power.

The models are available in 4X2 and 4X4 electronic shift on the fly and the engine conforms to Euro III emission norms. From 2009, Mahindra vehicles would be offered with a Euro IV compliant engine.

Novartis India Q3 net down 7%

Novartis India today reported a 6.64% decline in net profit at Rs 22.47 crore for the quarter ended December 31, 2007 as against Rs 21.07 crore in Q3FY07.

In a release to the BSE, the company stated that its total income had decreased from Rs 158.51 crore for the quarter ended December 31, 2006 to Rs 152.59 crore for the quarter ended December 31, 2007.

Dr. Reddy's Q3 net down 41% at Rs 62cr

Dr Reddys Laboratories today reported a 41% decline in consolidated net profit at Rs 62.55 crore for the third quarter ended December 31, 2007 when compared with Rs 105.63 crore in Q3FY07.

According to a release issued to the BSE today, total income declined to Rs 1,265.98 crore from Rs 1,521.48 crore in Q3FY07.

The company, on a stand-alone basis, posted a net profit of Rs 42.29 crore for the quarter ended December 31, 2007 when compared with Rs 503.49 crore for the quarter ended December 31, 2006. Total income declined to Rs 820.68 crore Rs 1,212.11 crore in Q3FY07.

According to US GAAP, the group has posted a net loss of Rs 84.66 crore for the quarter ended December 31, 2007 as against a net profit of Rs 187.94 crore for the quarter ended December 31, 2006. Revenues declined to Rs 1,231.96 crore from Rs 1,543.42 crore for the quarter ended December 31, 2006, the release added.

ING Vysya Bank Q3 net up 199%

ING Vysya Bank today reported a 198.53% increase in net profit of Rs 42.75 crore for third quarter ended December 31, 2007 as against Rs 14.33 crore recorded during Q3FY07.

In a release to the Bombay Stock Exchange, the company informed that its total income had risen to Rs 528.06 crore during December 31, 2007 from Rs 370.87 crore reported during December 31, 2006.

Bharat Electronics Q3 net down 24%

Bharat Electronics today reported a 23.76% decline in net profit at Rs 112.97 crore for the quarter ended December 31, 2007 as against Rs 148.18 crore in Q3FY07.

The total income of the firm also decreased 19.63% at Rs 726.93 crore for the quarter ending December 31, 2007 as against Rs 904.51 crore in December 31, 2006. the company informed in a release to the BSE.

ETA Star to invest $1billion in India

The Dubai-based company will enter port, aviation sectors to cash in on the boom.

ETA Star, one of Dubai’s household names, will invest more than $1 billion in India to cash in on booming sectors such as ports and aviation. This will be in addition to other combined investments committed by the company in the power and real estate sectors, which total more than Rs 9,000 crore.

The diversified group is likely to invest Rs 4,000-4,500 crore in the development of a port in Tamil Nadu. The company is already believed to be in final stages of selecting the required site. A study is underway for the same.

The project will be executed through a special purpose vehicle (SPV) that may be formed in the next 7-8 months. The proposal of naming the SPV as ETA Star Ports is currently thought about.

However, it will form a part of the ETA Star umbrella in India, which also has business interest in areas such as real estate, power, engineering and shipping lines.

Hameed Salahuddin, director, ETA Star, said, “We will finalise our plans for the ports venture after the bathymetry study is drafted, which is underway. We will convey our intentions to the Tamil Nadu government shortly.”

The port will look to handle shipments of coal so as to serve a number of power projects which are coming up within the state. It will also handle a sizeable number of automobile export and import as auto facilities of Hyundai, Ford and Ashok Leyland, among others, are based in the vicinity.

Star Aviation, the Chennai-based private airline firm of the ETA group, is looking to start commercial flight operations in June-July this year, after it received the civil aviation ministry’s permission in December.

The airline aims to first launch itself as a regional carrier in the southern market, connecting cities such as Visakapatanam, Coimbatore and Madurai as also metros such as Chennai, Bangalore, Kochi and Hyderabad.

The company will start operations with 3-4 leased and 2 owned Airbus with single class configuration. Company officials claim that the airline will operate in an all-economy class, on the lines of another southern carrier Paramount Airways.

The group’s plan is to make air travel affordable for the local people, without becoming an all out budget carrier.

Salahuddin added, “There is a huge demand from people of tier-II and tier-III cities in India for air travel. These people have the money to go the distance, but as there is no availability of services from existing airlines, we will bridge that gap and explore the market.”

The company aims to aggressively explore the possibility of having a pan-India presence in due course. This will happen through induction of more aircraft and increase in the number of connecting routes.

The company is also awaiting a clear mandate from the government on rules for starting international operations.

SBI Q3 consolidated net up 56%

State Bank of India (SBI) today reported a 56% increase in consolidated net profit at Rs 2,383.66 crore for the third quarter ended December 31, 2007 when compared with Rs 1,524.42 crore in Q3FY07.

According to a releas issued to the BSE today, income moved up to Rs 24,380.99 crore from Rs 17,045.13 crore in Q3FY07.

The bank, on a stand-alone basis, posted a net profit of Rs 1,808.64 crore during the quarter ended December 31, 2007 when compared with Rs 1,065.06 crore for the quarter ended December 31, 2006. Total income increased from Rs 11,268.38 crore to Rs 15,364 crore for the quarter ended December 31, 2007.

US crisis may have indirect impact: FM

Anticipating an indirect impact of the US financial crisis on the economy, Finance Minister P Chidambaram today said the country needs to respond appropriately to the contagion in the global markets.

"Long-term effects of the crisis spreading from one market to the other (will) have to be carefully measured and responded appropriately," Chidambaram told reporters at the World Economic Forum meeting.

Referring to the impact of the US mortgage crisis on the Indian economy, he said: "We did not suffer any first order effect but we anticipate that there will be some second order impact."

The crisis in the Indian stock market, which saw a sharp plunge earlier this week on global concerns, would "pass over in a few days," Chidambaram said.

"At the moment, since there is such deep uncertainty, investors are hit by a sense of apprehension and that is why they are selling," he said.

PFC signs Rs 5,180cr deal with Aravali Power

Power Finance Corporation (PFC) today announced that it had signed the largest-ever loan agreement for Rs 5,180 crore with Aravali Power Company for the execution of the 1,500 Mw coal-based Indira Gandhi super thermal power project at Jhajjar, Haryana.

"This is the largest-ever loan sanctioned by PFC for any power project," a statement issued by PFC said today.

Aravali Power is a joint-venture firm between NTPC and the state governments of Delhi and Haryana. While NTPC holds 50% stake in Aravali Power, the state governments own 25% each in the venture.

Power generated from the project would be shared between Delhi and Haryana in equal proportions.

Aravali Power has acquired the land required for the 3x500 Mw project, which is expected to be completed by October 2010.

Microsoft picks up 35% equity stake in Oxigen

Microsoft Corporation has acquired a 35% equity stake in mobile-integrated platform provider, Oxigen Services India. Oxigen is an electronic recharge and prepaid distribution brand.

By partnering with Microsoft, Oxigen expects to expand its business rapidly in the virtual payments and distribution space using Microsoft’s web and mobile-based technologies, as well as getting access to Microsoft’s advertising services, especially digital advertising. Microsoft will add strategic value to Oxigen’s business.

"Through this partnership Microsoft will help us to scale up our services and technology by providing back-end software services. Therefore, Microsoft services, products and application will be available on the Oxigen platform," explains Pramod Saxena, chairman and managing director, Oxigen Group.

Further, the company will collaborate on a preferred partnership basis with Microsoft to drive services and products in developing economies and exploring new business opportunities within and outside the country.

Last year, Oxigen reported revenues amounting to $150 million, which is expected to touch $180 million this year.

"With our partnership with Microsoft, we expect revenues to increase over three fold in the coming years," adds Saxena.

Oxigen currently has a pan India retail network of approximately 50,000 touchpoints, which it intends to grow to 2,50,000 by 2010.

Spice to invest $1 bn, mulls IPO in Dubai

B K Modi-led Spice Communications announced that it would invest $1 billion (around Rs 3,950 crore) for expanding mobile services, and was planning to launch an initial public offering (IPO) in Dubai for raising funds.

"We will invest $1 billion in four new circles, and we expect to roll out our services in the first half of this year," B K Modi, chairman, Spice Group, told PTI.

The investment would be made for starting mobile services in Delhi, Haryana, Andhra Pradesh and Maharashtra, the circles for which it received Letters of Intent (LoIs) recently, and for expanding operations in Punjab and Karnataka circles.

Emaar MGF IPO on track, to open on Feb 1

The initial public offering (IPO) of real estate developer Emaar MGF will open on February 1.

Asked whether the company is considering a delay in launching its IPO or lowering the price band due to volatility in the stock markets, Shravan Gupta, executive vice chairman and managing director, Emaar MGF Land, said: "Based on the response we have got from the road show and advice from merchant bankers, we believe this is a reasonably good time to go for an IPO."

The company is offering 102.6 million shares, equivalent to 10.4% of its fully diluted post-issue equity share capital, in a price band of Rs 610-690 per share. The issue is expected to mop up between Rs 6,258-7,079 crore.

Gupta said that post-issue, Dubai-based Emaar’s stake in the company will stand at 39% - down from 42%. Delhi-based MGF’s stake will stand at 48% as against the current holding of 53%.

The company is also planning to launch a real estate investment trust (REIT) in Singapore. "We should be in a position to do our first real estate investment trust within the next 18-24 months," Gupta said.

REITs are essentially entities that purchase, own and manage real estate properties. Indian real estate firms like DLF and Unitech are also planning to launch such trusts in Singapore.

Sources said Emaar MGF is planning to spin off its property developments to the REIT even as it embarks on a programme to make it one of the biggest real estate developers in the country.

Varun Shipping plans Rs 1600cr expansion

Varun Shipping Company has earmarked around Rs 1,600 crore ($400 million) as capital expenditure for the calendar year ending December 31, 2008. This would be used for acquisition of additional ships.

Varun, riding the wave of increased freight rates, posted an 85.96% increase in net profit at Rs 73.68 crore for the third quarter ended December 31, 2007 when compared with Rs 39.62 crore during the same quarter last fiscal.

Yudhisthir Khatau, managing director, Varun Shipping, said: "The expenditure will be for consolidation of our oil, gas and offshore activities, and for acquisition of vessels. This would be mainly raised from internal accruals and refinancing of the company’s certain assets."

The expenditure is in addition to the $400 million announced earlier this year of which the company has already spent around $320 million.

US Fed cuts rates by 75bps

The US Federal Reserve today cut the overnight lending rate by 75bps to 3.5% from 4.25%.

"Broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households," the Fed statement said. The FOMC took this action "in view of a weakening of the economic outlook and increasing downside risks to growth."

The Fed board of governors, in a related move, also lowered the discount rate on direct loans to commercial banks by 0.75% to 4%.

According to a report by Bloomberg, policy makers were not scheduled to gather on rates till January 29-30.

Following is the press release issued by the Federal Reserve

The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis.

PSU banks, MFs step up buying in stock mkts

Public sector banks, insurance companies and mutual funds are ramping up their exposure in the capital markets with one eye on value buying and the other on softening the bear grip on the Indian stock markets.

"We are responsible market players, so we have to act. We are increasing our capital market exposure," the chairman and managing director of a large public sector bank told Business Standard.

A finance ministry official made it clear that no "specific directives or instructions" were issued to banks and FIs to ramp up market operations. "If they have money and mind, they will put it in the stock market," he said.

Another finance ministry official said that public sector banks and financial institutions were encouraged to purchase as much as equities as possible, not engage in panic sales and show leniency towards brokers.

Public sector entities in the market were also asked not to engage in sale of securities deposited by brokers for margin requirements as part of their internal "stop loss" thresholds.

The idea is to not take any steps that would cause a liquidity crisis for brokers, which can lead to severe consequences for the markets.

Finance Minister P Chidambaram said earlier in the day that there would be no liquidity crisis. Speaking to reporters outside his office, he said: "I am assured by RBI and all the banks that enough liquidity will be provided to brokers and market players. Liquidity will not be an issue."

Arvind Mills to invest Rs 400cr in retail biz

Textile firm Arvind Mills today said it would invest Rs 400 crore to expand its retail business in the next four years, to reach the target of being a billion-dollar mark company.

The company would be investing Rs 300 crore in large-format retail centres and Rs 100 crore in small stores by opening 30 large retail centres (Megamart outlet) and 200 small format stores (Megamart) across 100 cities in the country by 2012.

Around Rs 8-10 crore would be invested in each outlet and the funding would be through the company's internal accruals.

Noting that the value of retail market in India was worth about Rs 11,000 crore and was estimated to grow at the rate of 30-40%, he said the company was targeting a turnover of Rs 2,000 crore by 2012 in the retail sector.

The company today launched its first 'Megamart Outlet Centre' and was expecting the second Megamart outlet at Pune by May, followed by Hyderabad and Bangalore.

About 8 outlet centres and 125 small format stores would be opened by the end of next financial year. The company, presently, has 75 stores across the country.

Stating that Megamart would now move to tier-II and III cities, he said stores would soon be opened in Nagercoil, Tirunelveli, Vellore and Trichy in Tamil Nadu.

Arvind Mills managing director Sanjay Lalbhai said though the retail division's contribution to the company's turnover was presently only around 8%, it was expected to touch 50% by 2012.

Pantaloon Retail to hive off Big Bazaar

The board of directors of Pantaloon Retail India, which met today, approved a proposal for setting up wholly-owned subsidiary companies for Big Bazaar, Food Bazaar, speciality retail business activities and property & mall management.

According to a release issued by Pantaloon to the BSE today, the meeting also approved a proposal to transfer the respective businesses of the company on a going-concern basis to the respective subsidiaries, subject to receipt of all requisite statutory and other necessary approvals.

Parsvnath lines up Rs 60,000cr investment

Realty major to diversify into SEZs, airports, expressways and retail businesses in 5 years.

Aiming to turn a ‘conglomerate’ from being a real estate major, Parsvnath Developers has announced an investment of Rs 60,000 crore in next five years in diversified areas such as SEZs, airports, express ways and retails business.

BUILDING GROWTH

# The group will bid for upcoming airports in Udaipur, Greater Noida and Maharashtra

# Parsvnath will focus on development of SEZs, hotels, highways, retail and telecom

# The company plans to leverage its huge land bank
“We shall be bidding for upcoming airports such as Udaipur, Greater Noida, Maharashtra and other states. Besides, SEZs will be another major investment area in the coming three to five years,” Pradeep Jain, chairman of Parsvnath Developers, said.

Asked about the source of funding, Jain, who started as a broker about 15 years back grew to become India’s leading real estate developer, said: “Funding for new businesses will not be an issue... We shall leverage our huge large land bank”.

Among the major projects, Parsvnath would be focusing on development of SEZs, hotels, highways, retail and telecom, he said adding the company has 191 million square feet of developable area, including six SEZs.

Though it has been denied an entry into telecom business as Parsvnath’s application for the unified license was rejected by the Department of Telecom (DoT) last week, Jain said: “We will get into the telecom sector and our investment will be in the range of up to Rs 20,000 crore”.

He, however, declined to elaborate on telecom business plans, saying the company was watching the situation.

On other businesses, Jain said the company would enter the retail business in a big way and would soon announce its roadmap. The company is in talks with some of the major international retailers.

Parsvnath is also believed to be in talks with two French majors Carrefour and Club Casino to set up retail chains in India. Jain said that “we are sure to open our first retail store in 2008 and possibly will start with Delhi”.

Although he did not name the suitor, Jain said that the roll out of the retail outlets would start from this calendar year itself.

Jain, who has been included in the list of billionaires by Forbes, is hoping to grow at the rate of 102-140 per cent year-on-year basis to become a Rs 15,000 company in next five years from about Rs 1,500 crore turnover now.

About the types of retail stores and branding, Jain said the details were being worked out but the stores would be in large formats such as complete food bazaar and as far as branding was concerned, the company would take a decision after finalising the overseas partner.

The company owns over 14 million square feet of land for retail business in 48 cities and that would be an advantage for Parsvnath as all other prospective retailers would have to bank upon them for space.

Emaar, Fortis plan JV to set up 25 hospitals

Realty company Emaar MGF Land Limited (Emaar MGF) and Ranbaxy Group-promoted hospital chain Fortis Healthcare plan to form a joint venture to set up 25 hospitals across major cities in India, with an investment of Rs 1,200 crore.

Envisaged as a “one-stop shop” for healthcare at Emaar MGF residential complexes and other locations, the hospitals will focus on upper secondary and lower tertiary levels of treatment facilities, sources said. Each hospital will have a bed capacity of 75 to 125 beds.

Emaar MGF and Fortis will sign a memorandum of understanding (MoU) for the 50:50 joint venture, which will be an exclusive arrangement mandated to set up the hospitals in ten years from the time the first site is transferred or acquired, the sources said.

“We have an MoU in place and details of the project are being worked out. I cannot confirm further details since we have not yet signed any joint venture agreement,” said Shivinder Mohan Singh, CEO and managing director, Fortis Healthcare.

Fortis Healthcare has 12 corporate hospitals in north India, besides a chain of pathology laboratories named SRL Ranbaxy and healthcare stores called Fortis Healthworld.

Fortis plans to expand its network to 40 hospitals in three years with an investment of over Rs 1,000-1,500 crore, Shivinder Mohan Singh had told Business Standard in April last year.

Emaar MGF executives declined to comment on the new venture, citing an imminent initial public offer (IPO) that is expected to raise over Rs 7,000 crore to fund its projects.

Emaar MGF Land is a joint venture between one of the world’s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development Limited of India. It is setting up a Rs 16,000 integrated township at Mohali hills near Chandigarh.

Emaar MGF is also planning large scale real estate projects in residential, hospitality, commercial and retail, education, healthcare and IT parks and Special Economic Zones (SEZs) in India. It has approval for nine SEZs in various states and plans to add about 25,000 hotel rooms in India in ten years.

Wipro JV wins Saudi Arabian Airlines order

Saudi Arabian Airlines announced today that it had awarded a long-term IT infrastructure transformation contract to Wipro Arabia (a joint venture between Wipro and Dar Al Riyadh Group, which provides IT solutions and services in the Kingdom of Saudi Arabia).

The five-year agreement, which is valued at over $100 million, was signed today in Riyadh, Saudi Arabia.

Wipro Arabia will deliver a scalable and managed infrastructure platform based on industry standards. It will become the bedrock for driving all operations and business transformation at Saudi Arabian Airlines. The scope for Wipro Arabia includes data centre consolidation and management, integration and management of a highly secure converged network and comprehensive enterprise-wide managed infrastructure and security services.

Suresh Vaswani, president, Wipro Infotech & Global IT Practices, said, “Wipro will combine its service delivery excellence and deep technology expertise to deliver a seamless experience for the customers of Saudi Airlines. We value the partnership with Saudi Airlines and are committed to making this initiative a success.”

Satyam Q3 net up 29%, ups Q4 guidance

* Revenue Rs 2,195.56 crore; YoY up 32.2%; QoQ up 8.1%

* PAT Rs 433.63 crore; YoY up 28.6%; QoQ up 6%

* EPS Rs 6.48; QoQ up 5.9%

* EBITDA margin for the quarter: 21.46%

* Added 3,424 employees; total: 49,199

* Attrition fell to 13.1% from 13.9 % QoQ

* 32 customers added

* Outlook positive: Increases fiscal year 2008 revenue guidance to $2.1 billion from $2.08 billion

Riding on the back of large outsourcing deals and high-level offshore utilisation, Hyderabad-based IT services provider Satyam Computer Services posted a net profit of Rs 433.63 crore for the quarter ended December 31, 2007 when compared with Rs 337.23 crore during the corresponding quarter - a growth of 28.58%.

Revenues stood at Rs 2,195.56 crore, an increase of 32.17%, from Rs 1,661.12 crore during the same period last year. Its earnings per share (EPS) was Rs 6.48 -- a YoY increase of 26.1% and a sequential increase of 5.9%. The EBITDA (operating profit) margin for the quarter under review stood at 21.46%. Satyam recorded a sequential revenue growth of 10.5% and 50% on a year-on-year basis in dollar terms (US GAAP) during Q3.

"The highlight of the quarter was the continued improvement in all operating parameters. Increased productivity due to higher utilisation, increased billing rates and offshore shift led to improvement in margins to 165 basis points," said chief financial officer V Srinivas. "As such, we are increasing our fiscal year 2008 revenue guidance to $2.1 billion, from $2.08 billion (from 42% growth to 45.2%)," founder and chairman B Ramalinga Raju said.

"We mitigated the currency appreciation through judicious rate increases -- 2.4% for onsite work and 2.3% for offshore projects. These were our most significant increases ever. Additionally, we raised the percentage of our offshore work from 50.4% to 52.1%, which enhanced our operating margin," he added. The volume of work Satyam performed for clients also jumped by 9.4%.

Stating that the company was assessing the slowdown in business in the US, its major market that contributes 60% to its overall business, Raju said the company was closely watching the economic environment, which could have a bearing on its customers. "We, however, will be better prepared for some ground realities during the next financial year," he said.

During the quarter, Satyam added 32 new clients, eight of which are Fortune 500 companies taking its clientele base to 181 Fortune 500 companies. "We have made good progress during the quarter by bagging four large deals in different verticals, each valued at $50 million. We are in pursuit of 21 such big-ticket deals, some of which are from Europe and Asia Pacific," Ram Mynampati, president (commercial and healthcare businesses), Satyam, said. The company hired 3,424 associates in the third quarter with its attrition declining to 13.1% on a trailing twelve months basis.

Govt on mkt crash: Take informed decisions

Responding to the stock market fall today, the government advised investors to take "informed and responsible decisions in the situation and not be led by rumours or any unwarranted apprehensions."

"The fundamentals in the domestic economy are quite strong. Today’s market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of the Indian economy," a release issued by the finance ministry said.

Prime Minister Singh said sustained market growth "is our high priority."
He added that fluctuations are due to market forces.

The Bombay Stock Exchange’s Sensex dropped 1408.35 points (7.41%) and the NSE Nifty declined 496.5 points (8.7%) today.

"Most of Asia opened the year 2008 on a weak note with heavy selling pressure seen in most markets. Comparing the major Asian market indices as on January 2, 2008 with their closing today, it is seen that the Straits Times has fallen 14.75%, Hang Sang 13.58% and Nikkei 9.29%. The corresponding figure for the Sensex is 13.97%," the release said.

As regards domestic economic conditions, the just released review of the economy 2007-08 by the Economic Advisory Council of the Prime Minister has estimated the rate of growth of GDP in 2007-08 at 8.9%.

"Corporate profits, as reflected in the third quarter 2007-08 results, continue to be buoyant. Direct tax revenues have shown an increase of 42.8% between April and December. Banks have reported that investments in the pipeline are robust and credit demand is high," the release added.

Textile exports decline in FY08: RBI

The country's total exports may be rising by around 20% but overseas sales of textile, apparel and handicrafts have declined during the first five months of this financial year, according to the Reserve Bank data.

"Exports of textile and textile products and handicrafts continued to register declining trend," RBI said in a study on the country's foreign trade 2007-08.

There was a 3% decline in apparel and 16% fall in silk textile export in dollar terms, it said.

Export of textile and products declined due to reduced off-take by major markets such as the US, the UK and Italy. The country's exports to the US in April-October declined to 3.2% in value terms compared with 6.8% in the corresponding period last year, while in quantity terms the exports recorded a 1.9% growth, according to the US Department of Commerce, Office of Textiles and Apparel.

The Prime Minister's Economic Advisory Council has also pointed out that "absolute declines in cotton yarn, fabric and made-ups, apparel, natural silk textiles and handmade carpets. The decline in the value of exports of such items when measured in India rupee is obviously larger."

The rupee has risen more than 15% in the past year-and-a-half due to huge capital inflows. The appreciation has hit exporters hard, forcing the government to announce packages amounting to around Rs 5,200 crore. The Council had favoured another package for labour intensive sectors such as textiles.

"The impact of the appreciation of the Indian rupee vis-a-vis the dollar and other major currencies has been a major source of concern," the Council had said in its economic review.

Bharti Airtel signs $150 m deal with IBM

Telecom service provider Bharti Airtel today said it had signed a $150 million six-year agreement with global IT major IBM for implementation of IT systems to launch differentiated services in broadband, media, IPTV and DTH segments.

Under the agreement, IBM would bring in its global expertise in areas including the telemedia business, distribution, enterprise segments and business resilience. Bharti would strengthen its distribution and prepaid segment and provide a unified experience to its customers.

To improve customer satisfaction and provide seamless services, IBM would work with Bharti Airtel in areas including LCR (Least Cost Routing), GIS, Auto Discovery, Auto Provisioning and Auto Activation. These applications will help to bring in enhanced efficiencies and cost savings, besides improving service delivery.

The disaster recovery set up and IT architecture would also be be enhanced to provide multi-node redundant systems.