Volatility rears its head
A bout of volatility struck in mid-afternoon trade after the Sensex attained an all-time high above 14,600 in the afternoon. At 14:41 IST the Sensex was up 86 points, at 14,564. After an initial fall to 14,577 at 13:40 IST, from a lifetime high (14,620.99) of 13:20 IST, the Sensex had firmed again to reach 14,620 by 14:25 IST. The barometer index pared gains at this level.
The Sensex today surpassed an earlier all-time high of 14,564.80, which it had struck only on Tuesday (6 February 2007).
Brakes Auto cuts loose on plans for rights issue
Brakes Auto is up 4.99% to Rs 28.40, after the company said it was mulling a rights issue offer, to fund its upcoming plant at Dhule, Maharashtra.The land has already been acquired and construction work is in full swing.The stock clocked decent volumes, 28,900 shares, on BSE since morning.Brake Auto’s share price has grown more than two-fold since the closing at Rs 12.80 on 29 December 2006.
The company intends to produce important automobile spares like brake drums, hubs, clutch & gear box housing, wheel cylinder, master cylinder and water oump assembly at the Dhule plant. The company will get various facilities, subsidies and tax exemption, which is permissible for D-Zone area.
The company came out with remarkable December 2006 quarter results. The net profit of Rs 0.05 crore was a growth of 400% year-on-year. Net sales in the same quarter grew 76.6% to Rs 8.51 crore over the year ago quarter.
The company’s market capitalization at the end of FY-2006 was just Rs 9.84 crore, representative of a small-cap company.
The prospects of auto component and auto ancillary companies look positive with growing sales of automobiles in the domestic market. Growing sales coupled with global original equipment manufacturers (OEMs) and automobile companies increasingly sourcing intermediate parts and auto components from India also points to improving prospects for such firms .
VSNL strengthens despite FLAG dispute turning bitter
Telecom services provider VSNL advanced 2.26% to Rs 499.55, even as the long-standing dispute between the company and ADAG-controlled FLAG Telecom took a turn for the worse.
The dispute over FLAG's Europe-Asia cable system has worsened, with FLAG approaching the International Chamber of Commerce (ICC) for a “monetary relief” of $406 million, plus interest, from VSNL.
The stock had slipped to a low of Rs 480 in intra-day trade, but recovered as buying resumed at the lower level.As many as 1.34 lakh shares were traded in the counter on BSE.
On Tuesday, VSNL told BSE it had received communication from FLAG seeking compensation. VSNL will study the claim and file its response with ICC “in due course.” VSNL's stock plunged 3.4% on Tuesday in response to the news, closing at Rs 488.50.
The stock has seen a decent rally in January 2007, advancing 12.10%, from Rs 431.75 on 5 January to Rs 488.50 by 6 February.
The dispute between the two telecommunication firms began a few years ago, when VSNL resisted attempts by FLAG to upgrade the capacity of its FLAG Europe cable, at a time when the route faced band deficiencies. FLAG also claimed that landing charges levied by VSNL were unreasonable.
FLAG referred the matter to the International Court of Arbitration in December 2004. According to reports, FLAG had then demanded access to cable landing stations owned by VSNL, and also claimed damages for losses incurred during the period of dispute.
Earlier in January, there were reports that VSNL is in talks to buy a telecom operator, Suntel, in Sri Lanka. Suntel is a joint venture backed by Sri Lanka's National Development Bank, Sweden's Overseas Telecom AB, Metrocorp, Hong Kong's Townsend and International Finance Corporation (IFC).
VSNL Global, VSNL’s international arm, recently won licences to provide international long distance and Internet services in Sri Lanka, and wanted to enter the outbound voice traffic, data and enterprise businesses, a newspaper said, quoting company sources. There was no announcement from VSNL, however, in this regard.
VSNL, which earns three-quarters of its revenue abroad, holds 26% in South Africa's second national fixed phone operator, Neotel, and had also acquired Teleglobe International Holdings and Tyco International's global undersea fibre optic cable network.
In December 2006, Neotel, the South African arm of VSNL, signed a Rs 1300-crore bridging debt facility with a funding consortium comprising Nedbank Capital, Investec Bank and the Development Bank of Southern Africa. The funds will be utilised for Neotel's network rollout, which already consists of 1,300 km of optic fibre cable in 6 main metropolitan areas. This was purchased from Transnet for Rs 165 crore earlier this year.
VSNL also entered into a memorandum of understanding (MoU) with telecom service providers, including Etisalat, Saudi Telecom, Telecom Egypt and Telecom Italia Sparkle to jointly construct a new submarine cable (I-ME-WE) linking India, West Asia and Western Europe.
The cable project will connect the major countries in the region including India, UAE, Kingdom of Saudi Arabia, Egypt, Italy and France. The cable will leverage the strength of these major carriers and provide interconnection facilities with several existing and emerging systems in the regions. The project is expected to be commissioned by mid-2008.
VSNL will be rolling out the WiMAX service in Bangalore by June, where the company had already tested a live pilot successfully. WiMAX enables broadband connectivity, overcoming the hurdle of the absence of a last mile connection. VSNL hopes to roll out the technology in other parts of the country by the second half of 2007.
VSNL’s net profit rose 18% to Rs 107 crore in Q3 December 2006 from Rs 91 crore in Q3 December 2005. Net sales during the quarter rose 4% to Rs 966 crore (Rs 929 crore).
The Sensex today surpassed an earlier all-time high of 14,564.80, which it had struck only on Tuesday (6 February 2007).
Brakes Auto cuts loose on plans for rights issue
Brakes Auto is up 4.99% to Rs 28.40, after the company said it was mulling a rights issue offer, to fund its upcoming plant at Dhule, Maharashtra.The land has already been acquired and construction work is in full swing.The stock clocked decent volumes, 28,900 shares, on BSE since morning.Brake Auto’s share price has grown more than two-fold since the closing at Rs 12.80 on 29 December 2006.
The company intends to produce important automobile spares like brake drums, hubs, clutch & gear box housing, wheel cylinder, master cylinder and water oump assembly at the Dhule plant. The company will get various facilities, subsidies and tax exemption, which is permissible for D-Zone area.
The company came out with remarkable December 2006 quarter results. The net profit of Rs 0.05 crore was a growth of 400% year-on-year. Net sales in the same quarter grew 76.6% to Rs 8.51 crore over the year ago quarter.
The company’s market capitalization at the end of FY-2006 was just Rs 9.84 crore, representative of a small-cap company.
The prospects of auto component and auto ancillary companies look positive with growing sales of automobiles in the domestic market. Growing sales coupled with global original equipment manufacturers (OEMs) and automobile companies increasingly sourcing intermediate parts and auto components from India also points to improving prospects for such firms .
VSNL strengthens despite FLAG dispute turning bitter
Telecom services provider VSNL advanced 2.26% to Rs 499.55, even as the long-standing dispute between the company and ADAG-controlled FLAG Telecom took a turn for the worse.
The dispute over FLAG's Europe-Asia cable system has worsened, with FLAG approaching the International Chamber of Commerce (ICC) for a “monetary relief” of $406 million, plus interest, from VSNL.
The stock had slipped to a low of Rs 480 in intra-day trade, but recovered as buying resumed at the lower level.As many as 1.34 lakh shares were traded in the counter on BSE.
On Tuesday, VSNL told BSE it had received communication from FLAG seeking compensation. VSNL will study the claim and file its response with ICC “in due course.” VSNL's stock plunged 3.4% on Tuesday in response to the news, closing at Rs 488.50.
The stock has seen a decent rally in January 2007, advancing 12.10%, from Rs 431.75 on 5 January to Rs 488.50 by 6 February.
The dispute between the two telecommunication firms began a few years ago, when VSNL resisted attempts by FLAG to upgrade the capacity of its FLAG Europe cable, at a time when the route faced band deficiencies. FLAG also claimed that landing charges levied by VSNL were unreasonable.
FLAG referred the matter to the International Court of Arbitration in December 2004. According to reports, FLAG had then demanded access to cable landing stations owned by VSNL, and also claimed damages for losses incurred during the period of dispute.
Earlier in January, there were reports that VSNL is in talks to buy a telecom operator, Suntel, in Sri Lanka. Suntel is a joint venture backed by Sri Lanka's National Development Bank, Sweden's Overseas Telecom AB, Metrocorp, Hong Kong's Townsend and International Finance Corporation (IFC).
VSNL Global, VSNL’s international arm, recently won licences to provide international long distance and Internet services in Sri Lanka, and wanted to enter the outbound voice traffic, data and enterprise businesses, a newspaper said, quoting company sources. There was no announcement from VSNL, however, in this regard.
VSNL, which earns three-quarters of its revenue abroad, holds 26% in South Africa's second national fixed phone operator, Neotel, and had also acquired Teleglobe International Holdings and Tyco International's global undersea fibre optic cable network.
In December 2006, Neotel, the South African arm of VSNL, signed a Rs 1300-crore bridging debt facility with a funding consortium comprising Nedbank Capital, Investec Bank and the Development Bank of Southern Africa. The funds will be utilised for Neotel's network rollout, which already consists of 1,300 km of optic fibre cable in 6 main metropolitan areas. This was purchased from Transnet for Rs 165 crore earlier this year.
VSNL also entered into a memorandum of understanding (MoU) with telecom service providers, including Etisalat, Saudi Telecom, Telecom Egypt and Telecom Italia Sparkle to jointly construct a new submarine cable (I-ME-WE) linking India, West Asia and Western Europe.
The cable project will connect the major countries in the region including India, UAE, Kingdom of Saudi Arabia, Egypt, Italy and France. The cable will leverage the strength of these major carriers and provide interconnection facilities with several existing and emerging systems in the regions. The project is expected to be commissioned by mid-2008.
VSNL will be rolling out the WiMAX service in Bangalore by June, where the company had already tested a live pilot successfully. WiMAX enables broadband connectivity, overcoming the hurdle of the absence of a last mile connection. VSNL hopes to roll out the technology in other parts of the country by the second half of 2007.
VSNL’s net profit rose 18% to Rs 107 crore in Q3 December 2006 from Rs 91 crore in Q3 December 2005. Net sales during the quarter rose 4% to Rs 966 crore (Rs 929 crore).
posted by SY at 3:33 PM
0 Comments:
Post a Comment
<< Home