Volatility strikes
Compared to the range-bound trade in mid morning, afternoon trade was afflicted by volatility. At 13:34 IST the Sensex was up 50 points, at 14,239. From 14,231 at 12:27 IST, the benchmark Sensex had drifted to 14,184.94 by 13:20 IST. At this level, the Sensex was down 3.55 points for the day.
At the onset of trading, the Sensex had surged as many as 98.54 points, to 14,287.03, due to firm Asian markets, and data showing increase in buying by FIIs.The market-breadth was weak. Against 1,456 shares that declined on BSE, 1,048 rose. Just 80 shares were unchanged. Losers outpaced gainers by a ratio of 1.38:1.The BSE clocked a turnover of Rs 2273 crore.Banks edged lower. Ranbaxy extended a recent fall. Cement shares remained subdued.
Satyam Computer benefits from takeover tattle
Satyam Computer gained 1.20% to Rs 467.70 after reports that Nipuna Services, its BPO unit, was eyeing an acquisition in India or abroad.
Nipuna Services, which specialises in payroll processing, financial accounting and animation, plans to increase its staff to 5,000 by end-March 2008 from the present 3,000. The unit expects to meet its revenue target of $37 million for the fiscal year ending March 2007, up from $20 million in the previous fiscal.
In January 2007, Satyam Computer, India's fourth-largest software services exporter, slightly lowered its revenue forecast for 2006/07 to about $1.45 billion because of strengthening of the rupee against the dollar.
Nipuna Services, based in Hyderabad, and with facilities in Bangalore and Chennai, also planned to tap opportunities in Europe by setting up a facility there. Nipuna was focusing on animation outsourcing as part of its growth plans. The segment is expected to contribute 25% of its revenue in two years, up from the present 15-20%. In December 2006, Nipuna, which has 29 clients, signed an animation order worth $25 million. This contract will be executed in 18 months.
As many as 1.39 lakh shares changed hands in the counter on BSE.The stock drifted lower in the past few sessions on profit-booking. From Rs 485.45 on 15 February, it slipped to Rs 462.20 by 21 February 2007.
Recently, Satyam Computer announced setting up a Global Delivery Campus in Nanjing, China. With 2,500 seats, this will be the organisation's largest development facility outside India, and will include development and training as well as residential apartments. An agreement for the same was signed by Satyam and Nanjing New and High Technology Development Company, a wholly-owned subsidiary of Nanjing Hitech Zone.
The Nanjing campus will contribute to Satyam's Virtually Integrated Global Delivery Model, and complement established facilities in Malaysia, Cairo, Shanghai and Guangzhou.
Satyam has been one of the earliest entrants in China. Its first development centre was established in Shanghai in 2002, with ten associates. Satyam China today has grown with presence in Shanghai, Beijing, Dalian and Guangzhou.
Satyam Computer Services reported 5.45% sequential growth in consolidated net profit in the December 2006 quarter, to Rs 337.23 crore, compared to a net profit of Rs 319.81 crore in September 2006 quarter. The bottom line was within market expectations.
Operating profit rose 13.1% on a sequential basis, from Rs 362.49 crore in the December 2006 quarter to Rs 409.99 crore in the September 2006 quarter. Operating profit also beat market expectations.
Consolidated sales rose 3.7% on a sequential basis, from Rs 1601.88 crore in the December 2006 quarter to Rs 1661.12 crore in the September 2006. Consolidated net sales growth, however, was below expectations. Five brokerages had forecast 4.9 - 6.7% sequential growth in the top line, between Rs 1680 crore and Rs 1708.90 crore.
India Cements upbeat on plans to fuse subunit
India Cements rose 1.50% to Rs 199.40, after the company announced that it would consider the merger of Visaka Cement Industry, an associate company.As many as 3.31 lakh shares were traded on the BSE.
The India Cements scrip fell sharply by late-February 2007. From a high of Rs 250 on 16 January 2007, it reached Rs 196.45 by 21 February 2007. Earlier, India Cements had risen between mid-June 2006 and mid-January 2007.
At the current market price of Rs 199.40, India Cement trades at 13.75 times its Q3 December 2006 annualized EPS of Rs 14.50.
As per reports in January 2007, India Cements’ proposed plant at Himachal Pradesh had been delayed by at least six months as the cost have shot up by Rs 250 crore. India Cements and the Himachal Pradesh Government had signed a memorandum of understanding (MoU) in May 2006, to set up a Rs 750 crore project at Gumma, in Shimla. The plant aims at producing 2 million tonnes of cement every year. As per rough estimates, the Gumma limestone mines have over 200 million tonnes of high quality limestone reserves.
As per another report, Heidelberg had begun talks with India Cements for a minority stake. Heidelberg, in October 2006, approached India Cements for a big stake in the company, which the latter refused to. India Cements has well-established brands like Sankar Super Power, Coromandel Super Power, Raasi Super Power and has a strong distribution network of over 10,000 stockists.
A surge in cement prices in the south during the December 2006 quarter resulted in a sharp improvement in profitability of India Cements. Cement prices in south India, the principal market for India Cements, have been on the rise due to strong demand.
Demand for cement was growing at 10% across the country, while the market in the south was growing at about 11.8%. The growth in demand is expected to sustain in the coming months boding good for cement companies.
India Cements is the largest cement producer in south India with an overall market share of about 19% in the region. The company has an installed capacity of 8.8 million tonnes (including Visaka Cement where India Cements holds controlling 49.9% stake). It also has 7 manufacturing units spread across Andhra Pradesh and Tamil Nadu.
India Cements plans to increase capacity in its existing plants by 2 million tonnes. The expanded capacity will be available by end 2007, or early 2008. India Cements' total capacity will go up to 11 million tonnes a year after expansion.
India Cements posted a net profit growth of 999% to Rs 79.78 crore (Rs 7.22 crore) in Q3 December 2006. Net sales for the December 2006 quarter rose 36% to Rs 472.41 crore from Rs 346.63 crore in the year ago quarter.
Blue Dart Express shrugs off poor Q4 outcome
Blue Dart Express was up 0.20% to Rs 500, despite a 20.80% fall in net profit in Q4 December 2006.Blue Dart Express (Blue Dart) on Wednesday (21 February 2007) reported a 20.8% fall in net profit to Rs 12.20 crore in the December 2006 quarter compared to Rs 15.40 crore in the December 2005 quarter. Net sales for the December 2006 quarter increased 22.6% to Rs 182.20 crore (Rs 148.50 crore).
The counter clocked a mere 947 shares on BSE. Even the average weekly volume for the scrip is a paltry 383 shares.
The Blue Dart stock had steadily declined in the past one month. From Rs 543 on 23 January 2007, it slipped to Rs 499 by 21 February 2007.
Blue Dart's parent, DHL Express Singapore Pte, holds a majority 81.03% stake in Blue Dart Express, while mutual funds and public hold 9% and 4%, respectively, as on December 2006.
Blue Dart’s parent was unsuccessful in delisting the Indian arm in 2006, as the exit price determined by reverse book-building at Rs 950 appeared too stiff vis-a-vis the ruling market price.
Blue Dart Express is an integrated air express, courier and logistics company. It operates in India, Bangladesh, Bhutan, Nepal, and Sri Lanka.
The company has earmarked an investment of Rs 25 crore for infrastructure development across India this year. As part of its expansion plans, Blue Dart proposes to add 45 more warehousing facilities, to the existing 32, of which, 15 will come up in south India.
Blue Dart, which has completed 10 years in air express, now holds 40% market share in the segment. It is the only domestic player with a dedicated air cargo service, including five Boeing 737s and two Boeing 757s, operating in seven main cities. Blue Dart's core business is domestic door-to-door, integrated air express distribution and supply chain management.
At the onset of trading, the Sensex had surged as many as 98.54 points, to 14,287.03, due to firm Asian markets, and data showing increase in buying by FIIs.The market-breadth was weak. Against 1,456 shares that declined on BSE, 1,048 rose. Just 80 shares were unchanged. Losers outpaced gainers by a ratio of 1.38:1.The BSE clocked a turnover of Rs 2273 crore.Banks edged lower. Ranbaxy extended a recent fall. Cement shares remained subdued.
Satyam Computer benefits from takeover tattle
Satyam Computer gained 1.20% to Rs 467.70 after reports that Nipuna Services, its BPO unit, was eyeing an acquisition in India or abroad.
Nipuna Services, which specialises in payroll processing, financial accounting and animation, plans to increase its staff to 5,000 by end-March 2008 from the present 3,000. The unit expects to meet its revenue target of $37 million for the fiscal year ending March 2007, up from $20 million in the previous fiscal.
In January 2007, Satyam Computer, India's fourth-largest software services exporter, slightly lowered its revenue forecast for 2006/07 to about $1.45 billion because of strengthening of the rupee against the dollar.
Nipuna Services, based in Hyderabad, and with facilities in Bangalore and Chennai, also planned to tap opportunities in Europe by setting up a facility there. Nipuna was focusing on animation outsourcing as part of its growth plans. The segment is expected to contribute 25% of its revenue in two years, up from the present 15-20%. In December 2006, Nipuna, which has 29 clients, signed an animation order worth $25 million. This contract will be executed in 18 months.
As many as 1.39 lakh shares changed hands in the counter on BSE.The stock drifted lower in the past few sessions on profit-booking. From Rs 485.45 on 15 February, it slipped to Rs 462.20 by 21 February 2007.
Recently, Satyam Computer announced setting up a Global Delivery Campus in Nanjing, China. With 2,500 seats, this will be the organisation's largest development facility outside India, and will include development and training as well as residential apartments. An agreement for the same was signed by Satyam and Nanjing New and High Technology Development Company, a wholly-owned subsidiary of Nanjing Hitech Zone.
The Nanjing campus will contribute to Satyam's Virtually Integrated Global Delivery Model, and complement established facilities in Malaysia, Cairo, Shanghai and Guangzhou.
Satyam has been one of the earliest entrants in China. Its first development centre was established in Shanghai in 2002, with ten associates. Satyam China today has grown with presence in Shanghai, Beijing, Dalian and Guangzhou.
Satyam Computer Services reported 5.45% sequential growth in consolidated net profit in the December 2006 quarter, to Rs 337.23 crore, compared to a net profit of Rs 319.81 crore in September 2006 quarter. The bottom line was within market expectations.
Operating profit rose 13.1% on a sequential basis, from Rs 362.49 crore in the December 2006 quarter to Rs 409.99 crore in the September 2006 quarter. Operating profit also beat market expectations.
Consolidated sales rose 3.7% on a sequential basis, from Rs 1601.88 crore in the December 2006 quarter to Rs 1661.12 crore in the September 2006. Consolidated net sales growth, however, was below expectations. Five brokerages had forecast 4.9 - 6.7% sequential growth in the top line, between Rs 1680 crore and Rs 1708.90 crore.
India Cements upbeat on plans to fuse subunit
India Cements rose 1.50% to Rs 199.40, after the company announced that it would consider the merger of Visaka Cement Industry, an associate company.As many as 3.31 lakh shares were traded on the BSE.
The India Cements scrip fell sharply by late-February 2007. From a high of Rs 250 on 16 January 2007, it reached Rs 196.45 by 21 February 2007. Earlier, India Cements had risen between mid-June 2006 and mid-January 2007.
At the current market price of Rs 199.40, India Cement trades at 13.75 times its Q3 December 2006 annualized EPS of Rs 14.50.
As per reports in January 2007, India Cements’ proposed plant at Himachal Pradesh had been delayed by at least six months as the cost have shot up by Rs 250 crore. India Cements and the Himachal Pradesh Government had signed a memorandum of understanding (MoU) in May 2006, to set up a Rs 750 crore project at Gumma, in Shimla. The plant aims at producing 2 million tonnes of cement every year. As per rough estimates, the Gumma limestone mines have over 200 million tonnes of high quality limestone reserves.
As per another report, Heidelberg had begun talks with India Cements for a minority stake. Heidelberg, in October 2006, approached India Cements for a big stake in the company, which the latter refused to. India Cements has well-established brands like Sankar Super Power, Coromandel Super Power, Raasi Super Power and has a strong distribution network of over 10,000 stockists.
A surge in cement prices in the south during the December 2006 quarter resulted in a sharp improvement in profitability of India Cements. Cement prices in south India, the principal market for India Cements, have been on the rise due to strong demand.
Demand for cement was growing at 10% across the country, while the market in the south was growing at about 11.8%. The growth in demand is expected to sustain in the coming months boding good for cement companies.
India Cements is the largest cement producer in south India with an overall market share of about 19% in the region. The company has an installed capacity of 8.8 million tonnes (including Visaka Cement where India Cements holds controlling 49.9% stake). It also has 7 manufacturing units spread across Andhra Pradesh and Tamil Nadu.
India Cements plans to increase capacity in its existing plants by 2 million tonnes. The expanded capacity will be available by end 2007, or early 2008. India Cements' total capacity will go up to 11 million tonnes a year after expansion.
India Cements posted a net profit growth of 999% to Rs 79.78 crore (Rs 7.22 crore) in Q3 December 2006. Net sales for the December 2006 quarter rose 36% to Rs 472.41 crore from Rs 346.63 crore in the year ago quarter.
Blue Dart Express shrugs off poor Q4 outcome
Blue Dart Express was up 0.20% to Rs 500, despite a 20.80% fall in net profit in Q4 December 2006.Blue Dart Express (Blue Dart) on Wednesday (21 February 2007) reported a 20.8% fall in net profit to Rs 12.20 crore in the December 2006 quarter compared to Rs 15.40 crore in the December 2005 quarter. Net sales for the December 2006 quarter increased 22.6% to Rs 182.20 crore (Rs 148.50 crore).
The counter clocked a mere 947 shares on BSE. Even the average weekly volume for the scrip is a paltry 383 shares.
The Blue Dart stock had steadily declined in the past one month. From Rs 543 on 23 January 2007, it slipped to Rs 499 by 21 February 2007.
Blue Dart's parent, DHL Express Singapore Pte, holds a majority 81.03% stake in Blue Dart Express, while mutual funds and public hold 9% and 4%, respectively, as on December 2006.
Blue Dart’s parent was unsuccessful in delisting the Indian arm in 2006, as the exit price determined by reverse book-building at Rs 950 appeared too stiff vis-a-vis the ruling market price.
Blue Dart Express is an integrated air express, courier and logistics company. It operates in India, Bangladesh, Bhutan, Nepal, and Sri Lanka.
The company has earmarked an investment of Rs 25 crore for infrastructure development across India this year. As part of its expansion plans, Blue Dart proposes to add 45 more warehousing facilities, to the existing 32, of which, 15 will come up in south India.
Blue Dart, which has completed 10 years in air express, now holds 40% market share in the segment. It is the only domestic player with a dedicated air cargo service, including five Boeing 737s and two Boeing 757s, operating in seven main cities. Blue Dart's core business is domestic door-to-door, integrated air express distribution and supply chain management.
posted by SY at 2:53 PM
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