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Reckitt Benckiser committed to ‘Stop Diarrhea’ proj: CEO

Written By komp limpulima on Sabtu, 28 Maret 2015 | 21.03

India is the only island of growth amongst the emerging markets, that's how the CEO of Reckitt Benckiser, describes India and though he doesn't see the country growing in high double-digit over the next two years, Rakesh Kapoor is indeed very bullish on the country and says the global FMCG giant is in for the very long haul.

New launches are going to play a big role in the company's growth and it is betting big on the government's Swachh Bharat programme. The company has recently developed two hygiene products designed for the use and consumption at lower end of the pyramid, says Kapoor.

Kapoor said India's story is not about a quarter or even a year, it is a very long-term story and companies that have a very long view on India will make the right choices and make India a very important part of their business as indeed we want to make.

Talking about their other commitments towards India, Kapoor says, "RB is totally committed to the program called 'Stop Diarrhea' and would be investing over USD 30 milion over a number of years".

Moreover, the company also looks at divesting non-core assets, tail brands to focus on driving their core businesses like health, hygiene and home, says Kapoor.

"Just a few years ago everyone was super excited about Brazil, Russia, India and China (BRIC). Everyone thought BRIC was the answer to economic challenges in the west but just a few years later Brazil is in a very tough place, Russia for both I would say political reasons but also economic reasons is not the same high profile economic growth that we have seen so in that context India becomes quite an island of growth for many companies. India remains very important not just for its own structural demographic and economic reasons but also in the context of global growth," he added. 

Kapoor further said that the Association of Southeast Asian Nations (ASEAN), which has headquarters in markets like Singapore, Indonesia will revert to Singapore through the ASEAN regional headquarters.

"In the past India was reporting into ASEAN which was reporting into our developing markets headquarters but now we have brought India straight line into reporting into developing markets headquarters so India actually has gone up, not gone down in the hierarchy if you want to measure it like that but India of course is, has been and will be a very important force of growth for RB," said Kapoor.

Answering a query on acquisitions, Kapoor says the company has always been open to making aquistions if they make strategic sense and if they create added value to shareholders.

Below is the transcript of Rakesh Kapoor's interview with Shereen Bhan on CNBC-TV18.

Q: The last conversation that you and I had was sometime in November, you were very confident about the India story, you were very confident about the signals coming in from the Modi government. Today, while the headline growth number looks very good, everyone is talking about 7.5 percent plus growth for India - consumption continues to be a worry, agricultural distress is a concern at this point in time impacting rural discretionary spending. What is your sense about the Indian market and growth in India at this point in time?

A: I would like to say that I remain very positive about the India story because my own personal view is that India story is not about a quarter or even a year; it is a very long-term story. Companies that have a very long view on India will make the right choices and make India very important part of their business as indeed we want to make.

The second thing I would like to say about India is that nothing changes very quickly here. It is the biggest anchor that you can think of. As long as the path is straight we will get there. I don't think we need to get super excited about changes that take place but also not get underwhelmed when things do not move fast enough. This is India, as long as directional fable is good - it seems to be a good one I think we will be on the right track.

The third important thing about India which I see particularly from my eyes sitting in London is that just a few years ago everyone was super excited about BRIC. Everyone thought BRIC was the answer to economic challenges in the West. However, just a few years later Brazil is in a very tough place, Russia for both political reasons but also economic reasons is not the same high profile economic growth that we have seen. So, in that context India becomes quite an island of growth for many companies. So, India remains very important not just for its own structural demographic and economic reasons but also in the context of global growth.

Q: You are speaking about the challenges facing emerging markets at this point in time and there continues to be concern on the deceleration as far as emerging markets are concerned. Even on your India growth figures your sales rose by about 11 percent to Rs 4000 crore in FY14. You were anticipating a growth rate of at least 20 percent I understand. What is the kind of growth projection that you have now for India in FY15 and FY16?

A: I don't set targets.

Q: Is a 20 percent growth rate unachievable at this point in time given the state of affairs?

A: This level of growth, the very high double digit growth rates that we have seen and we have come to expect and come to aspire to for India, remains our aspiration. I don't think we are going to give up on that. Will I see that in the next quarter, could I see that in the next year? Perhaps not but I don't believe we should lower our bar, I don't believe we should lower the ambition.

Our ambition remains to grow at the same kind of growth rates that we have all enjoyed, come to expect and want to have from India, even if the next quarter or even the next year does not seem to be as good. So, I don't want to set a target for FY15 at least externally. However, I do think that markets will improve in FY15 over FY14 and hopefully that will carry on in FY16 and FY17.

Q: Let me ask you about some of the efforts that you have rolled out in order to optimise costs. Project Supercharge was announced by you in February 2015. The idea behind that is to drive margin expansion to enable cost savings between 100-150 million pounds in 2015 and this also involved in creating a simpler and more agile corporate structure. What will this mean for markets like India?

A: First of all I think, Supercharge is an important project for Reckitt Benckiser (RB). It has like you just said two major vectors. One vector is having a company which is faster to market, which is simpler to operate, which does not get bogged down by the complexities that we all see in our world today. So, how do we become more agile? RB has enjoyed the fantastic history of growth and outperformance over the number of years but when organisations become bigger they become complex.

One of my challenges is to make sure that we can keep this company simpler. So, we simplified our structure, we have made sure that inside the company for example we used to have two different area organisations – one looking after Russia, Middle East and Africa and the other one looking after Latin America, Asia-Pacific. We have combined those area organisations and provided a simpler governance and decision making structure here as one example of a simpler organisation. Removing the multiple decision making touch points that sometimes exists in large companies to simplify how we decide, how we go to market.

The other aspect is for larger companies to constantly interrogate their cost of doing business. I have always said that costs are like finger nails, they need to be cut from time-to time. This program of Supercharge is to look at all areas of cost and thinking about where we have waste, where we have duplication, where can we buy things cheaper? We have point of sale material that we buy in multiple markets on multiple brands around the world. Couldn't we buy them together, couldn't we buy them cheaper, and couldn't we simplify that?

Q: What about divesting assets which may no longer be core to you or divesting brands which may no longer be core to you?

A: That is something that we have done from time to time. If you think about the last three years we have demerged our pharmaceutical business and created a new company called Indivior. We have divested our footwear business and given that out. There is a lot of rationalisation that has taken place in the tail brands. So, that has been an important part of our focus on driving the core business in health, hygiene and home.

Q: What more can we expect in terms of divesting or getting out of brands that no longer fit into the company's current profile and the effort to continue to boost your healthcare business?

A: About three years ago, 80 percent of our business was health, hygiene and home and 20 percent was of the rest and today it is only 8 percent. So, you are talking about a pie which has shrunk from 20 percent to 8 percent. So, divestment focus has taken place and we will continue to do that. Our larger opportunities are not just to think about divestments and tail brands rationalisation, I think it is to drive our focus on consumer health, on hygiene.

Just to give you a very simple story here – I came off the plane, went straight to Dakshinpuri in South Delhi. Dakshinpuri in South Delhi is like one of the many suburban places we have in Delhi but also in many parts of India. When you think about so many, there were about 20,000 people who live in a very small place – five people in one small room of 10 feet by 10 feet, open drains, water condition is not very hygienic, toilets not very clean and the fact of the matter is you have got hygiene issues there. With hygiene issues you have got health issues.

I am very proud of many things about India as an Indian, as somebody who has been born and brought up here and owe everything to India but the one thing I am not proud of is the fact that in this country you have something like a 120,000 deaths taking place from diarrhea alone. When you add it all together, in the world we live in today there is one child dying of diarrhea every minute. By the time you and I finish this conversation 15 of these young children under the age of five would have died of diarrhea.

It is highly preventable; it is something we have to avoid. RB today is very proud to announce a program of 'Stop Diarrhea'. This is where we are investing over a number of years, over USD 30 million. We want to make sure that we not only invest this money but we have actually committed R&D resources, our people to bring change and to take care of diarrhea.

So, the larger opportunity in our company is not just to think about tail brands divestment, it is about to bring health, hygiene in markets that we operate in because that is good for people, that is good for society and that is good for the economy. There is so much economic loss that takes place because of bad health and that is good for my company.

Q: Any change expected from a corporate point of view because India so far has been the regional headquarters for South East Asia covering about 12 nations including Singapore, Thailand and Malaysia, will that stay, are there any changes expected on that front?

A: There will be, I think India will revert to its very important position as a regional hub for South Asia. However, the ASEAN headquarters which is markets like Singapore, Indonesia, etc will revert to Singapore through the ASEAN regional headquarters.

Q: Any reason for why you are doing this at this point in time given the fact that you anticipate strong growth in India and you anticipate India to be one of your key drivers not just from a sales point of view but also from an innovation point of view?

A: I think there is a very clear reason. We want to give India a very special place in our company's hierarchy if you want to call it like that. In the past India was reporting into ASEAN which was reporting into our developing markets headquarters. However, now we have brought India straight line into reporting into developing markets hedquarters. So, India has gone up, not gone down in the hierarchy if you want to measure it like that. India is, has been and will be a very important force of growth for RB.


21.03 | 0 komentar | Read More

Airtel, RCom gain capability for 4G service across country

Reliance Communications made bids worth Rs 4,299 crore and is required to make an upfront payment of Rs 1,106 crore.

Bharti Airtel  and Reliance Communications  (RCom) have gained capability to provide 4G services across the country as they bagged requisite spectrum in the recently concluded spectrum auction.

RIL's telecom arm Reliance Jio already has pan-India 4G spectrum.

"RCom becomes India's first and only operator with nationwide footprint of contiguous 800/850 MHz spectrum. RCom operations now future-proofed across all circles for most advanced LTE technology at most optimal cost," the company said in a statement.

Airtel, the country's leading telecom operator, in a statement said, "Post the latest spectrum acquisition, Bharti Airtel's spectrum mix will give it unmatched reach in the mobile data segment across 3G and 4G with a pan-India footprint."

The telecom firm now directly holds spectrum for 3G service in all parts of the country, except in Kolkata.

Reliance Communications made bids worth Rs 4,299 crore and is required to make an upfront payment of Rs 1,106 crore.

The company won 800 MHz spectrum in 11 service areas, but could not defend its 900 MHz spectrum holding in five out of seven circles expiring in 2015-16.

However, RCom spectrum holding in 800 Mhz in some parts of the country cannot be used to offer 4G service as the matter is sub-judice or to start 4G service using those airwaves it will have to pay one-time spectrum fee of Rs 173 crore demanded by government.

Reliance Jio has also added two sets of spectrum-800 Mhz in 10 circles and additional 1800 Mhz in six circles, to boost its 4G services with stable voice calling service.

Bharti Airtel stock price

On March 27, 2015, Bharti Airtel closed at Rs 376.20, down Rs 22.5, or 5.64 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 299.80.


The company's trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 13.15. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.25.


21.03 | 0 komentar | Read More

Posco seeks refund from Odisha rail line undertaking

South Korean steel giant Posco has sought refund from a rail line undertaking to be set up in partnership with Odhisa government citing change in company law but said it wasn't pulling out from the USD 12 billion steel project in the state.

"For railway (SPV we) cannot continue keeping deposit any further due to changed company law," Posco India Spokesperson IG Lee said.

Posco had joined hands with the state government along with SAIL, Rail Vikas Nigam and other players in 2006 to form a Rs 590 crore special purpose vehicle (SPV) for development of a 78-km long Paradip-Haridaspur rail line in Odhisa. 

Denying reports that the company is pulling out from the multi-billion project in the state, he said: "We are still on Odisha project. Money refund is not for the steel plant land. Rail Infra refund is as per the changed company law last year."

Lee also said six employees have "voluntarily" resigned and denied it was any sign of Posco pulling out from the project.

The steel maker's proposed USD 12 billion project at Jagatsinghpur district in Odisha for producing 12 million tonne per annum (MTPA) is viewed as the largest FDI in India.

It has, however, been stalled for about a decade on account of regulatory hurdles, including delays in land acquisition.

Posco had entered into a pact with Odisha government on June 22, 2005 for the plant, which included iron ore mine development.

However apart from the delays, in a fresh blow to the company, last month the Centre said the company would be required to participate in auction to get iron ore mines to feed its facility instead of direct allotment as assured earlier.

Steel Minister Narendra Singh Tomar had said that the company, which was assured Khandadhar iron-ore mine via dispensation route will have to participate in the auction process to get a mining lease.

Posco was previously promised the Khandadhar iron ore mine by the state for its mega steel plant, considered as the biggest FDI in India, but the actual allocation never happened due to delays in regulatory approvals.

Although the company has a memorandum of understanding with the Odisha government that assured allocation of mining leases, the passage of a Bill in Parliament that made allocation of all mines through auction route only, the agreement with the state will have no value.

In 2013, Posco had scrapped the 6 MT steel project in Karnataka over land and mineral hurdles. The Odisha project was also scaled down to initial 8 MT after it failed to acquire the desired quantity of land.

Last month POSCO had inaugurated a USD 709 million steel mill in Maharashtra to scale up its presence in the country.


21.03 | 0 komentar | Read More

Power firms face huge under recovery in fuel cost: ICRA

Aggressive bidding seen in the auction of 33 mines would result in a significant under-recovery in fuel cost estimated at Rs 1,800 crore by financial year 2017-18 for the winning bidders in power sector, rating agency Icra said.

It also said cancellation of blocks has impacted capacity in private IPP (independent power producer) segment to the tune of 18 GW.

"Bidding by power generating companies in the auction has been quite aggressive ...As a result, winning bidders remain exposed to a significant under-recovery in fuel cost... Aggregate under-recovery for the bidders is estimated at Rs 8 billion in FY 2015-16, which is likely to increase to about Rs 18 billion by FY 2017-18," it said in a report.

The government has so far auctioned 33 blocks in two tranches garnering over Rs 2 lakh crore, a figure surpassing the Comptroller and Auditor General's estimates of losses of Rs 1.86 lakh crore on account of allocation without auction of mines.

Icra said that of the 33 blocks, 12 were earmarked for the power sector and the government has announced successful bidders for nine mines which have geological reserves of 1200 million tonnes of which extractable reserves are 60 percent.

These blocks are "estimated to provide a fuel security for about 6 GW of generation capacity in the power sector, in ICRA's view".

"ICRA notes that the bidding by power generating companies in the auction has been quite aggressive with the bidding happening on a forward basis on the reserve price payable as bid quoted is zero in reverse bidding," it said.

It added that the bids quoted by the successful bidders range from Rs 302 per tonne to Rs 1,110 per tonne which are "negative price bids" for the bidders "which essentially means that a winning bidder would have a zero fuel charge recovery in PPA and in addition would bear the cost of both i.e. cost of coal mining and quoted reserve price payable to State Government".

It said that as a result, the winning bidders will remain exposed to significant under-recovery in fuel cost which is "estimated to range from Rs 0.39/kwh to Rs 1.02/kwh on a levelised basis over a 25-year period."

Further it said the quantum of under-recovery in fuel cost would remain sensitive to both the stripping ratio of the coal mine and cost of mining related to over-burden removal during the operating phase.

"ICRA estimates that the SC ruling cancelling allotment of coal blocks had impacted capacity in private IPP segment to the tune of 18 GW and the current coal auctions have secured fuel for 2.5 GW out of those 18 GW," it said.

Thus, capacity of about 15.5 GW (with cumulative project cost at around Rs 930 billion) continues to remain affected and within the same, about 8 GW is at risk also due to absence of tapering coal linkage.

The Supreme Court in September last year had cancelled allocation of 204 mines terming same as "fatally flawed" necessitating the auctions.


21.03 | 0 komentar | Read More

Multiples PE to invest at faster pace over next 2-yrs: CEO

Talking about the investment cycle in India, Multiples PE is basically a sector agnostic fund and looks at opportunities in each and every sector, says managing director and chief financial officer, Prakash Nene.

Multiples Alternate Asset Management Private Limited (Multiples) is an investment advisory firm that manages more than USD 400 million of Private Equity Funds. Multiples believes there are three ingredients to successful investing in India – careful selection based on conviction in the entrepreneur and opportunity; finding a solution beyond just providing capital; and mutual selection between the entrepreneur and the fund.

Multiples PE is now coming out with a second fund which is a 10-year fund with commitment amount of USD 650 million to be invested in 5-year time frame. However, they would be aggressively investing in the first two years on back of hopes that the Indian economy is now turning around, says Nene.

We are quite positive about the changes which are being made on the economic front. There are many incremental changes which are taking place and that is very heartening," adds Nene.

Althought the fund is sectors agnostic, spaces banking financial insurance (BFSI), e-commerce, healthcare will continue to be most attractive sectors, says Nene.

Below is the transcript of Prakash Nene's interview with CNBC-TV18's Kritika Saxena.

Q: Multiples PE since 2010 till date has been a roaring success if you compare it to the other domestic funds. You have raised USD 300 million funds which have been deployed already. How has the growth been given the fact that investing climate has been slightly slow ever since you setup. How have you been able to retain the investment pace and get the kind of success that you have gotten already?

A: We started in 2010 and the fund is slight bigger than what you thought because the dollar has depreciated otherwise we started with USD 400 million commitment. In terms of pace of investment we have been doing investment on a steady basis every year. We have a very strong investment team and lot of us came from another private equity venture and everybody is very experienced. So, we know the game and after all with all this whatever you do ultimately there has to be some external factors also which lead to success. So, we have to be very careful about where do you invest. In fact when you say our pace investment has been good, to begin with our pace of investment was very slow. We were very measured, our first investment took about a year to make.

Thereafter we really gathered pace because the team has to come together. Once the team came together that is how we started going forward at a faster pace.

Q: In your first fund what were your focus areas in terms of the average ticket size that you are looking at and the sectoral focus?

A: We are sector agnostic fund. We look at opportunity in each and every sector. In terms of verticals we look at certain percentage – 10-15 percent for early stage companies and rest of the companies are later stage companies. Our bias is towards later stage companies because our ticket size will be larger than early stage companies. So, USD 30 million would be our ticket size in the first fund. Obviously in the second fund it will be larger than that.

Q: Let us talk about your second fund; USD 500 million is the amount that you are looking at raising. What is the process and by when will you start deploying that? The fund amount is larger than what your other peer, which have seen average of USD 150-300 million, so what really according to you would be the focus areas and do you feel that now that this is a larger fund you would have a larger investment power to invest over the next couple of years?

A: First of all USD 500 million would be the main fund. We also have another vehicle. So, our total amount available for commitment will be USD 650 million. So, we would be deploying USD 650 million which is the target of this fund. We would be deploying that in just a matter of time now, we already have lot of commitments from our core investors. They are all coming back with larger tickets, so we have a number of documents already with us. We are just waiting to do a formal close.

Q: Typically, USD 650 million, roughly across how many year do you see that spanning out or rather the majority investment, would it be a 5 or 10 year timeframe?

A: Technically, the fund is a 10-year fund but what we call as commitment period, the commitment period would be about 5 years. So, 5 year is the timeframe where most of the investment will be made. However thereafter as well once you invest in a company there is a follow-on investment. The companies keep needing money from time to time and it is not that after 5 years company will not require any money. So, you set aside some amount 10-15 percent for follow-on investments beyond 5 years.

For the first 5 years normally we invest at a steady pace. It is not that you have to just divide by 5 and every year you invest USD 120 million. Our bias would be more towards the early years. So, the first couple of years we perhaps would be investing at a faster pace than the earlier year because we are quite positive that the economy is now turning around.

Q: Since 2010 till 2014 things were fairly difficult but the new government came in and we have seen things turn on ground. We have been talking about how the ease of doing business is now one of the top priorities for the government and how there is a pickup in the reform cycle. Do you feel that foreign investors are now looking at India differently and more positively in 2015 than they did in the last two years?

A: Absolutely. I would not say the last two years, I would say year before 2014, the pace of investment all of us know was very slow and things were pretty gloomy. However last year has been a decent year I would say. In the private equity sector I think about 400-450 deals have happened and the capital deployed is about USD 11 billion, which is a sizeable sum which was deployed. Exits have also improved now. Last year we had about USD 4-5 billion of exits and I think that pace will continue.

We are quite positive about the changes which are being made on the economic front. There are not too many what they call big bang changes, lot of people expect that suddenly things will be different and that doesn't happen but I would say there are many incremental changes which are taking place and that is very heartening. We believe that the government's policies are moving in the right direction. However once you change a policy there is some time lag once the economic activity picks up. So, on the ground the economic activity especially in manufacturing sector is yet to pickup, it is slowly picking up but certain other sectors things have started moving faster. So, we are looking very positively, the next two years that is the reason I said that perhaps the pace of investment which we are going to make in the next couple of years will be faster.

Q: Let us talk about taxation in that case; in the Budget this time around the government has created a big positive for the PE industry by allowing tax pass throughs. How significant is that for PE players and for Multiples PE?

A: I would say that pass through is one of the things which the domestic industry was looking forward to and which has now been granted. It is definitely positive for the industry. However what happens is that what you do at one place, you do something else in another place. What has been introduced in this Budget is something called Place of Effective Management (P.O.E.M). In the speech the Finance Minister has said that they are encouraging Indian fund managers like us to really manage foreign money without going abroad. Many of our colleagues have moved abroad simply from that angle.

Place of effective management is considered if you are based in India and if you are managing money in Mauritius or in other jurisdictions and those funds are called resident in India. If those funds are resident in India then they are not eligible for what is called treaty benefits. So, that is one clause – P.O.E.M has come.

Government has created what they call safe harbour rules. Safe harbour rules mean certain sectors of the economy and certain fund managers would be excluded. However what I find that most of those changes which have been made they are for FIIs – foreign institutional investors. Government has not looked very carefully as to what are the requirements of a fund manager who is not an FII but using FDI money.

FII is a regulated concept under Sebi but most of the funds especially private equity funds are not of that type. We typically will have 5-25 investors and not hundreds of investors. So, when you say that no single investor can have more than 10 percent in a company and all of us have an anchor investor which will be more than 10 percent. So, in that situation we will be excluded then you say 5 investors put together cannot own more than 10 percent and you cannot do a buyout.

Even in our first fund we own a company which is completely owned by us – 100 percent and buyout is a very important concept for a private equity. When a policy framework is made this is something which looks like inadvertently it has not been taken into account and I am quite hopeful that before the Budget is finally approved I think there will be some changes on this.


21.03 | 0 komentar | Read More

Govt may exempt ONGC, OIL from paying subsidy in Q4

Written By komp limpulima on Jumat, 27 Maret 2015 | 21.03

Government is likely to exempt oil producers ONGC  and Oil India Ltd  from payment of fuel subsidy in the fourth quarter ending March 31, a senior Petroleum Ministry official said on Friday.

"We have a verbal assurance from the Finance Ministry that upstream companies will not have to bear any subsidy in the fourth quarter," the official said on the sidelines of 'Urja Sangam' conference.

The government regulates price of cooking fuels — LPG and kerosene — to shield the poor. The difference between the cost and the retail selling price is borne by the government by way of cash subsidy and upstream producers like ONGC.

Under-recoveries, or revenue retailers' loss on selling fuel below cost, are projected to be Rs 74,773 crore in the 2014-15 fiscal. Of this, Rs 67,091 crore has already been accounted for in the first nine months of the fiscal and compensation mechanism decided.

The remainder of the under-recoveries can be borne by the government, he said, adding that this subsidy will be rolled over to the next fiscal.

"This is what is our broad understanding from the Finance Ministry though I must add that we have not seen any letter from them to this effect," he said.

When contacted, Oil Minister Dharmendra Pradhan said his ministry and the Ministry of Finance are working together to formulate a subsidy-sharing mechanism.

This mechanism will be based on the principal that the profitability of the government and the companies are not impacted, he said. "Their profitability is complementary to each other."

In the first nine months, the government gave cash subsidy of Rs 22,085 crore to meet less than a third of the under-recoveries on cooking fuel and diesel (up to October 17). Upstream oil producers ONGC, OIL and GAIL  chipped in Rs 42,822 crore.

The upstream subsidy contribution is by way of discount on crude oil they sell to refineries. With international oil prices almost halving to USD 50 per barrel, providing the subsidy discounts would have meant they got rates way below their cost of production.

ONGC's cost of production is around USD 40 per barrel.

The official said the finance ministry is likely to pay Rs 7,682 crore as cash subsidy for the fourth quarter.

The Oil Ministry had projected that government will earn Rs 75,944 crore from excise duty on petrol and diesel this fiscal and even after paying for Rs 39,101 crore subsidy (Rs 17,000 crore of first half and Rs 22,101 crore in second half), it will be left with Rs 36,843 crore.

ONGC stock price

On March 27, 2015, Oil and Natural Gas Corporation closed at Rs 304.10, up Rs 0.30, or 0.10 percent. The 52-week high of the share was Rs 472.00 and the 52-week low was Rs 301.00.


The company's trailing 12-month (TTM) EPS was at Rs 21.84 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 13.92. The latest book value of the company is Rs 159.81 per share. At current value, the price-to-book value of the company is 1.90.


21.03 | 0 komentar | Read More

Cancelling JSPL bid and allotment of mines to CIL wrong: HC

Following the report, the stock surged 6.5 percent intraday. It closed the day at Rs 157.00; up 4.53 percent.

The Delhi High Court has observed that the rejection of winning bids of Jindal Steel & Power Ltd  (JSPL) for two coal blocks in Chhattisgarh was 'prima facie' wrong as the government was making a mistake in comparing the bids with quotes received for other blocks.

Following the report, the stock surged 6.5 percent intraday. It closed the day at Rs 157.00; up 4.53 percent.

The high court will again hear the case on Friday and asked the government to work out an interim arrangement for the blocks.

The court's observations are seen as a setback for the government, which has seen several legal challenges to auction of coal blocks, particularly by firms that lost out. However, the Centre is pleased about the auction as a whole as it has received high bids. It plans to auction more blocks next month.

The court's observations also come as a relief to JSPL and Bharat Aluminum Company (Balco) that took legal recourse after the coal ministry on Friday cancelled auction process for three blocks for which the companies emerged as successful bidders. On Monday, a bench of justices BD Ahmed and Sanjeev Sachdeva had restrained the government from allotting the Tara mine to Coal India .

The government had disapproved bids for JSPL's Gare Palma IV/2&3 and Tara mine and Gare Palma IV/1 for which Balco emerged as the best bidder. The coal ministry allotted these mines to Coal India Ltd. Both these blocks are operational mines and as per Supreme Court's September 2014 verdict that cancelled 204 captive mine allotments, producing mines have to be surrendered by the previous allottee.

JSPL made the best bid for the Gare Palma IV2&3 coal block at a price of Rs 108 per tonne while foregoing the mining cost. Tara coal block auction closed at Rs 126 per tonne. Balco emerged as the best bidder for the Gare Palma IV/1 at a price of Rs 1,585 per tonne.

After rejection of its bid, JSPL had said it was "puzzled" by the government's decision. It said it had followed a consistent and prudent bidding strategy throughout the coal auction with a serious long-term business perspective.

Jindal Steel stock price

On March 27, 2015, Jindal Steel & Power closed at Rs 157.00, up Rs 6.80, or 4.53 percent. The 52-week high of the share was Rs 350.00 and the 52-week low was Rs 125.05.


The company's trailing 12-month (TTM) EPS was at Rs 3.88 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 40.46. The latest book value of the company is Rs 142.79 per share. At current value, the price-to-book value of the company is 1.10.


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Infosys to give 6.5 to 9% hike this year

Last year, the company had given salary hikes of about 6-8 percent to employees in India, and about 1-2 percent for onsite employees. This is the first wage hike to be rolled out since Vishal Sikka took over as the chief executive in August last year.

Country's second largest software services firm Infosys  will give out pay hikes in the range of 6.5 percent to 9 percent to employees in India for the financial year 2015-16.

Effective April 1, the Bangalore-based firm is offering average hike of about 6.5 percent, sources said.

On the other hand, top performers at the firm will be given a hike of about 9 percent, while salaries of onsite employees will be raised by about 2 percent, they added.

The company spokesperson confirmed the news.

Last year, the company had given salary hikes of about 6-8 percent to employees in India, and about 1-2 percent for onsite employees. This is the first wage hike to be rolled out since Vishal Sikka took over as the chief executive in August last year.

The company, which was facing an exodus of senior-level executives over the past two years, has also been grappling with high attrition rates.

Under Sikka, the company has been undertaking various steps, including offering a 100 percent variable bonus payout to its employees for the December quarter, to stem high attrition.

The company's attrition (on last 12 months basis) stood at 20.4 percent for the reported quarter, slightly higher than 20.1 percent registered in the July-September quarter.

Infosys added 13,154 (gross) and 4,227 (net) employees during the October-December quarter, taking its total headcount to 169,638 at the end of December 31, 2014.

Infosys stock price

On March 27, 2015, Infosys closed at Rs 2201.95, up Rs 57.50, or 2.68 percent. The 52-week high of the share was Rs 2335.20 and the 52-week low was Rs 1447.00.


The company's trailing 12-month (TTM) EPS was at Rs 104.69 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 21.03. The latest book value of the company is Rs 366.51 per share. At current value, the price-to-book value of the company is 6.01.


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Air India improves its on-time performance

The ministry had directed Air India to cut salary of those employees responsible for delay in flights after its schedule had gone for a toss in January due to the cockpit and cabin crew shortage.

National carrier Air India improved its on-time performance with 70 percent of its flights departing and arriving on time from four major metropolitan cities during February as against a poor 52.1 percent a month ago, according to DGCA data.

The better OTP comes following Civil Aviation ministry's decision to keep a watch on the airline's operations.

The ministry had directed Air India to cut salary of those employees responsible for delay in flights after its schedule had gone for a toss in January due to the cockpit and cabin crew shortage.

The directives, issued by aviation secretary V Somasundaran, covered almost all section of the operations staff including the pilots, cabin crew, engineering staff, ground handlers and even in-flight catering suppliers.

As many as 89 Air India flights were delayed due to cabin crew issues between December last and February this year, Minister of State for Civil Aviation Mahesh Sharma had informed Parliament early this month.

According to the DGCA data, the state-run carrier delivered a much better OPT from Hyderabad, Bengaluru, Delhi and Mumbai airports during the reporting period with Hyderabad airport seeing 81.3 percent of Air India flight taking off and landing on scheduled time as against 66.7 percent in the previous month.

The OTP from other three airports -- Bengaluru, Delhi and Mumbai -- was reported at 72.2 percent, 71 percent and 67.3 percent respectively as against 65 percent, 49.7 percent and 46.9 percent in January 2015. Air India is now in the processing of hiring 800 additional cabin crew besides 197 commanders to meet the shortage. The entire process is expected to be completed by July.


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Fortis sells Singapore hospital for SGD 55 mn

The company said that J P Morgan and Religare Capital Markets acted as financial advisors to Fortis for the transaction.

Fortis Healthcare  on Friday sold its Singapore hospital to Concord Medical Services (International) Pte Ltd for SGD 55 million (approx Rs 251 crore) in line with strategy to focus on the domestic market.

"The Board of Fortis Healthcare International Pte Ltd, a step down subsidiary of Fortis Healthcare Ltd based out of Singapore, has decided to disinvest 100 percent shareholding in Fortis Healthcare Singapore Pte Ltd which holds and operates Fortis Surgical Hospital to Concord Medical Services (International) Pte Ltd for a consideration of Singapore Dollar (SGD) 55 million," Fortis said in a BSE filing.

Fortis Healthcare Executive Chairman Malvinder Singh and Executive Vice Chairman Shivinder Singh said: "Our decision to divest is in tune with our stated strategy to intensify our focus on our hospitals and diagnostics business in India." The deal is expected to be completed on or around April 6, the filing added.

The company said that J P Morgan and Religare Capital Markets acted as financial advisors to Fortis for the transaction.

The 31-bed Fortis Surgical Hospital was opened in July 2012.

In September 2014, Fortis Healthcare divested 100 percent stake in healthcare service provider RadLink-Asia and its arm RadLink Singapore to Medi-Rad Associates for SGD 137 million (over Rs 655 crore).

RadLink is engaged in providing healthcare services, including outpatient diagnostic and molecular imaging services in Singapore, Fortis Healthcare said.

Fortis Health stock price

On March 27, 2015, Fortis Healthcare closed at Rs 163.45, up Rs 7.05, or 4.51 percent. The 52-week high of the share was Rs 169.50 and the 52-week low was Rs 96.55.


The latest book value of the company is Rs 80.15 per share. At current value, the price-to-book value of the company was 2.04.


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