Monday, November 15, 2010

Market Outlook: Indian markets are expected to open flat and trade in the range

Market Outlook: Indian markets are expected to open flat and trade in the range manner on the back of mixed sentiments on global counters. Overall trend is on sideways with support in the vicinity of 6010 and resistance at 6130.

Results Today: Satyam, Shree Renuka, ABG Shipyard, Gitanjali Gems, Kohinoor Foods

Global events to watch:

Þ Retail Sales

Þ Empire State Mfg Survey

Þ Business Inventories

Global indices Update @ 8:

Dow Jones : 11192 (- 90.52)

NASDAQ : 2518 (- 37.31)

Nikkei 225 : 9794 (+69.30)

Hang seng : 24190 (+37.31)

SGX CNX Nifty : 6090 (+06.00)

INR / 1 USD : 44.64

Stocks in action for the day: Sical Log, Rel Power, Assam Co, Tulip Tele, SBI, RCom, GAIL, L&T...

Powergrid FPO Update: Qualified Institutional Buyers (QIBs) 18.52x, Non Institutional Investors: 28.86x and Retail Individual Investors (RIIs): 3.85x, Employee Reservation: 1.11x.

SBI eyeing bank acquisition in Indonesia: To expand its operations in Southeast Asia, State Bank of India is on a look out for acquisition of a bank in Indonesia in cash deal not exceeding USD 100 million (about Rs 4.5 billion). Indonesian market provides high growth potential and SBI has identified 2-3 banks for possible acquisition, a senior official of SBI said. ``We are not in favour of giving cash more than USD 100 million,`` the official said. SBI currently has a subsidiary in Indonesia called PT Bank SBI Indonesia with a network of six branches. Last year, the name of PT Bank IndoMonex was changed to PT Bank SBI Indonesia.

Reliance Communications set to raise USD 500 mn abroad After failed efforts to sell equity, Reliance Communications (RCOM), Anil Ambani`s cash-strapped telecommunications company, is tapping the bond markets. Flag Telecom, a part of its international network arm Reliance Globalcom, could raise at least USD 500 million by selling bonds to European investors, said a number of investment banking sources. RCOM has appointed Deutsche Bank`s investment banking arm to spearhead the latest fund-raising effort. If successful, the funds will be used to meet debt obligations, including USD 200 million worth of convertible bonds held by overseas investors due May 2011. Executives at Reliance Communications did not respond to queries while Sanjay Agarwal, head of investment banking in India at Deutsche Bank, declined comment.

Reliance Comm Q2 net drops 40%: Reliance Communications reported a 40% drop in quarterly profit -- its fifth-straight quarter of profit fall -- after being squeezed by a vicious call price war in the world's fastest-growing mobile market. The profit drop was however smaller than expected.

GAIL to make waves via expansion, consolidation and diversification GAIL India, the state-run gas transmission and marketing company, has charted a new corporate business plan up to 2020. The focus is on consolidation, expansion and diversification. It plans to consolidate presence in petrochemicals and renewable energy, allocate 15% of annual capital expenditure for exploration and production (E&P), pick up equity in upstream LNG (liquefied natural gas) projects abroad, and pursue investments in shale gas projects in and outside India. Besides, GAIL India is keen to expand its city gas distribution business and undertake distributed generation projects along its pipelines. B C Tripathi, chairman and managing director of GAIL India, told Business Standard that: ``The new corporate business plan, titled `Next Wave`, aims at increasing the company`s turnover to Rs 1 lakh crore by 2020 from the current level of Rs 249.96 billion. Our current networth is of the order of Rs 600 billion.``

Dabur to seal personal care buy in US soon The Delhi-based consumer products firm Dabur will soon acquire a personal care company in the US. The Rs 34.15 billion firms is in advanced negotiations with the US company, and is likely to close the deal shortly, persons familiar with the development told Business Standard. The name of the company, however, could not be ascertained immediately. The deal size is in the region of Rs 5 billion. Dabur, above all, will get access to new markets besides the US, persons in the know said. When contacted, Sunil Duggal, chief executive officer, Dabur India, said he was not in a position to comment on the company`s future plans.

FIIs raise stake in Jet Airways and Kingfisher Airlines Foreign institutional investors (FIIs) increased their stake in Jet Airways and Kingfisher Airlines during the second quarter of this financial year, compared to the previous quarter. FIIs` stake in Naresh Goyal-owned Jet Airways stood at 7.10% during the three months through September, compared to 6.38% during the first quarter of this financial year. Similarly, FIIs had 5.54% stake in Vijay Mallya-owned Kingfisher Airlines, compared to 5.12% in April-June. However, in Gurgaon-based low-cost carrier SpiceJet, FIIs reduced their stake to 14.48% from 15.46% in the first quarter of this financial year.

Sterlite Energy seeks rule relaxation for SEZ Vedanta Group firm Sterlite Energy has sought relaxation in special economic zone (SEZ) rules to benefit its power plant in Orissa which needs to transport coal through Vedanta Aluminum`s SEZ, a commerce ministry official has said. Under the commerce ministry rules, all activities within a special economic zone must be directly related to its operations. The group firm Sterlite Energy has set up a 2,400 Mw power plant adjacent to Vedanta Aluminum`s SEZ. While the SEZ needs to meet its energy requirement from the Sterlite power plant, the latter requires 1.7 million tonnes coal annually. The movement of coal from the mines to the power plant can take place through a rail link which must pass through the non-processing area of the aluminum SEZ, he said.

Cinemax to expand operations in Guj With already 23 screens across seven locations operational in Gujarat, Cinemax India. is set to expand its operations in the state. The company plans to invest around Rs 50 million for a 3 screen multiplex property in Surat. ``There is a tough entry barrier in the multiplex industry. However, Gujarat has been a growing market for us. Considering the overall success we have had in the state, we intend to launch a property in Surat where we are not present so far. We will be investing around Rs 50 million for the Surat property,`` said Sunil Punjabi, CEO, Cinemax India. In Gujarat, Cinemax owns and runs multiplex properties in Ahmedabad, Vadodara and Rajkot. The company also operates a property in Anand on management contract.

Elder Health inks pact with German co FMCG and skin care major Elder Health Care has forayed into the baby care segment by inking an in-licensing pact with Germany`s Mann & Schroder for the latter`s Sanosan baby care products, a top company official said. Elder will also introduce the German company`s Dulgon personal care products (for men) in the country, the official said. ``The baby care segment is currently estimated at Rs 17 billion and offers an immense growth potential. Mann & Schroder has a very good product range and Sanosan is a highly reputed brand,`` Elder Health Care`s Managing Director, Anuj Saxena, said here.

Emami to invest Rs 9.5 bn in edible oil biz With a view to emerge as a leading manufacturer and garner substantial market share in the branded edible oil segment, the Emami Group has earmarked Rs 9.5 billion over the next two years for the purpose, even as it is looking at a national roll out of its Healthy & Tasty oil brand. The investments will be done through the Group`s wholly owned subsidiary, Emami Biotech, the official said. ``We are looking at investing around Rs 9.5 billion in Emami Biotech, the arm that looks after our edible oil business. The funds will be raised through a combination of internal accruals, equity and debt. Thirty per cent will be raised from equity,`` Emami` s Director, Aditya Vardhan Agarwal, said here.

RPower, RNRL swap ratio fixed at 1:4: Anil Ambani led Reliance Power today said four shares of Reliance Natural Resources (RNRL) will be converted into one share of RPower as part of the merger between the two group companies. RNRL shareholders will get one RPower share, with face value of Rs 10, in exchange for four shares of RNRL of face value of Rs five each, the company said in a statement. The share exchange ratio was based on the recommendations of a leading international consulting firm KPMG. RNRL has become a wholly owned subsidiary of RPower and its shares have ceased to be tradable on the stock markets with effect from November 9, 2010.

L&T defers plan to enhance power equipment manufacturing capacity: Larsen & Toubro (L&T) has shelved plans to expand its existing power equipment manufacturing capacity of 5,000 MW per annum in the wake of the government`s refusal to impose duty on imported equipment, especially from China. ``Out of the question... We are even apprehensive of utilizing the current capacity, would want to increase the capacity once the policy on Chinese equipment import is clear,`` Larsen & Toubro Chairman, A M Naik said. The finance ministry is believed to have ruled out the imposition of import duty on power equipment sourced from overseas, even though domestic manufacturers had made several representations for a level playing field with Chinese equipment firms.

BEML to finalise partner for dredging equipment biz Heavy equipment maker BEML expects to finalise a tie-up with an overseas technical partner for its planned entry in the dredging equipment manufacturing business within the next six months. ``We are in the process of finalising a technical partner for dredging equipment. The company board has already approved for a foray into this segment looking at the opportunity...,`` BEML Chairman and Managing Director, V R S Natarajan said. He declined to name the technical partner, which is likely to be an international player. The company was earlier looking at a tie up with a Dutch company, but no concrete deal materialised.

Unitech Q2FY11(QoQ) (cr - crore, vs - versus) * Revenues: Rs 644 cr vs Rs 828.67 cr (Expectation of Rs 854 cr) * EBIDTA: Rs 252.8 cr vs Rs 285 cr(expectation of Rs 287.5 cr) * EBIDTA margin at 39.22% vs 34.39% (Expectation of 33.63%) * Net Profit: Rs 173.76 cr vs Rs 180 cr (Expectation of Rs 186.78 cr)

IOC Q2 -Net profit at Rs 5,294 cr vs loss of Rs 3,388.4 cr (QoQ) -Net sales at Rs 69,336 cr vs Rs 71,672.66 cr (QoQ)

India Cements Q2FY11 YoY -Revenue down 15% to Rs 842 cr vs Rs 994 cr -Net loss Rs 33.6 cr vs profit of Rs 137 cr -OPM 3.6% vs 30%

Deccan Chronicle Q2FY11 YoY -Revenues down 6% to Rs 236 cr vs Rs 250 cr -OPM 49.8% vs 55% -PAT Rs 82.6 cr vs Rs 99.9 cr -Deccan Chronicle board approves share buyback; buyback price up to Rs 180/sh -Not exceeding Rs 270 cr

IVRCL Infra Q2: From NSE -Net profit at Rs 23.3 cr vs Rs 48.8 cr (YoY) -Net sales at Rs 1,050.2 cr vs Rs 1,213.8 cr (YoY)

Reliance Capital Q2FY11 -Revenue down 11% to Rs 1300 cr vs Rs 1466 cr -PAT down 28% to Rs 112 cr vs Rs 155 cr -Segment wise - except for Asset Management all segments decline Finance & Investments revenues down 17% to Rs 293 cr General Insurance down 10% to Rs 483 cr Alert: PBT loss in GI at Rs 28 cr vs 11 lakh profit YoY but loss down 28% QoQ Commercial Finance down 9% to Rs 312 cr Asset Management up 9% to Rs 163 cr Management says Revenue fall mainly due to lower capital gains and insurance revenue -Total assets Rs 30,094 cr, up 18% -Investment in listed equities Rs 1589 cr or USD 354 million

Gammon India Q2 -Net sales at Rs 1,179.8 cr vs Rs 937.5 cr (YoY) -Net profit at Rs 24 cr vs Rs 44.1 cr (YoY)

Tata Steel Q2FY11 Consolidated QoQ * Steel deliveries lower 1% QoQ to 5.82 MT * Lower deliveries at European operations were largely made up by higher deliveries from Tata teel India & Tata Steel Thailand * Revenues: Rs 28646.19 cr vs Rs 27194.8 cr(expectation of Rs 26911.88 cr) * EBIDTA: Rs 4497 cr vs Rs 4527 cr (Adjusted EBIDTA of Rs 3870 cr vs expectation of Rs 3481.7 cr) * Overall EBIDTA/t at $ 144.3 vs $ 171.2 EBIDTA margin: 13.5% vs 16.64% * Net Profit: Rs 1978.81 cr vs Rs 1825.26 cr(Expectation of Rs 1421.02 cr ex gains of stake sale) YoY * Revenues: Rs 28646.19 cr vs Rs 25395.04 cr * EBIDTA: Rs 4497 cr vs Rs 371.8 cr * Net Profit of Rs 1978.81 cr vs net loss of Rs 2707.25 cr

Reliance Power Q2 -Cons net profit up 20.2% at Rs 234.80 cr (QoQ) -Cons net sales up 21.1% at Rs 168.7 cr (QoQ)

Reliance Infrastructure Q2FY11 -EPS Rs 14.5 and 1HFY11 EPS Rs 29.6 Q2FY11 YoY Consolidated -Revenue up 2% to Rs 4042 cr vs Rs 3974 cr -OPM 15.3% vs 9% -PAT Rs 360 cr vs Rs 325 cr up 11% -OPM Expands: Total expenditure down 5% to Rs 3425 cr and EBITDA up 71% to Rs 617.2 cr Reliance infra says executing 25 infra projects worth Rs 40,000 crore

HPCL Q2 -Net sales at Rs 30,709.7 cr vs Rs 24,456.6 cr (YoY) -Net profit at Rs 2,089.6 cr vs net loss of Rs 136.7 cr (YoY)

BEML Q2: -Net sales at Rs 509.2 cr vs Rs 483.3 cr (YoY) -Net profit at Rs 14.7 cr vs Rs 13.6 cr (YoY)

Balrampur Chini Q4 -Net sales at Rs 508.3 cr vs Rs 378.9 cr -Loss at Rs 78.3 cr vs profit of Rs 42.7 cr

Sterling Biotech Q3 -Net sales at Rs 409.8 cr vs Rs 362.6 cr (YoY) -Net profit at Rs 30.6 cr vs Rs 41 cr (YoY)

Wockhardt Q2FY11 YoY -Revenue up 2% to Rs 940 cr vs Rs 922.6 cr -EBITDA up 21% to Rs 219 cr vs Rs 182 cr -OPM 23.4% vs 20% -Net Loss Rs 96.6 cr vs loss of Rs 54.2 cr Interest costs up 18% to Rs 56.4 cr -Forex Loss Rs 21.12 cr vs Rs 3.52 cr -Exceptional Loss of Rs 202 cr vs Rs 137 cr -Rs 197 cr of exceptional pertains to settlement of Loan & disputed derivative liabilities

IL&FS Q2 -Cons net profit at Rs 111 cr -Cons net sales at Rs 883 cr

Tata Power Q2FY11 Consolidated -Revenue up 1% to Rs 4809 cr vs Rs 4753 cr -OPM 23.6% vs 20% -PAT Rs 672.5 cr vs Rs 367.7 cr, up 83% -Forex gain Rs 220 cr Rs 28.7 cr Segment Break up -Power Revenues Rs 2992 cr vs Rs 3198 cr -Coal Revenues Rs 1474 cr vs Rs 1379 cr -Others Revenues Rs 389 cr vs Rs 250 cr -EBITDA up 19% to Rs 1137 cr

Ispat Ind Q2 -Net loss of Rs 332 cr vs loss of Rs 79.4 cr -Net sales at Rs 2,155 cr vs Rs 2,032 cr

DEN Networks –Good numbers - Q2FY11 YoY Consolidated -Revenue up 13% to Rs 253 cr vs Rs 223.7 cr -OPM 12.5% vs 8% -PAT Rs 10.5 cr vs Rs 2.14 cr -Growth in topline and EBITDA results in higher PAT -EBITDA Rs 31.8 cr vs Rs 18.3 cr ---up 74% -Other Income Rs 2.8 cr vs Rs 42 lakhs -Interest costs flat at Rs 4.4 cr vs Rs 4.9 cr

Elder Pharma Q2FY11 YoY Consolidated -Revenues up 21% to Rs 210 cr vs Rs 174 cr -OPM 19.9% vs 17% -PAT Rs 13.8 cr vs Rs 9.29 cr up 49% -Exceptional of Rs 1.38 cr on forex loss -Interest costs Rs 14.92 cr vs Rs 14.5 cr

Assam Co Q2 -PAT at Rs 33.4 cr vs Rs 28.5 cr

CDR Update -As per CDR company has issued the following to various banks in the Q: Optionally convertible cumulative redeemable shares worth Rs 28 lakh *OCCRPS have the option to convert from July 2016 *And non convertible cumulative redeemable pref shares worth Rs 32.5 cr *NCRPS Redeemable in 2018 -Outstanding Liabilities are Being Restructured under CDR -Documents have been executed Under the Scheme of Master Restructuring Agreement Alert : CDR Covers the FCCB Liabilities and Crystallized Derivatives / hedging Liabilities

Tulip Tele Says -Will sell our stake along with Qualcomm in BWA Foray -Always knew Qualcomm would sell stake to an operator -Assuming GTL will also sell stake along with Qualcomm-Partnership with Qualcomm for financial interest -Partnership with Qualcomm can help in accessing technology CNBC-TV18 aler -Qualcomm won BWA licenses in 4 circles -Tulip Tele & Global Holdings hold 13% each in Qualcomm BWA

Assam company approves Demerger of Borboorah Tea Estate of the Company and the transfer of the tea estate to Camellia Cha Bar Ltd., a subsidiary Company of the Company.

Adanis face laundering charges: ET

Reliance Power gets nod to divest 26 million tonne coal from Tilaiya to other projects: BS

Sical Logistics: Coffee baron, Siddhartha of Café Coffee Day bought 10% on Friday at Rs 80/sh via Tanglian Retail, board also allots 160.8 lakh shares Tanglin Retail at Rs 76/sh, Tanglin’s stake to go to 40% from 10% triggering open offer ((Rajeev Chandrashekhar had bought 13.3% stake few days earlier))


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