Gulf Oil's RoE to be 30-35%: PBT to touch Rs 140cr in FY15

The Hinduja Group-owned Gulf Oil Corporation  on Thursday demerged its lubricants business to Gulf Oil Lubricants India Ltd and listed the latter as a separate entity on both domestic stock exchanges under the 'Gulf Oil' brand.

Sanjay Hinduja, Chairman of Gulf Oil Lubricants India is confident of the company's profit before tax (PBT) to grow significantly and touch Rs 140 crore in the coming fiscal itself.

In addition, EBIDTA margin is anticipated to improve substantially coupled with a double-digit topline growth, he says in an interview with CNBC-TV18 adding that Gulf Oil's return on equity (RoE) will advance to 30-35 percent.

Below is the edited transcript of the interview:

Q: Can you take us through the financials of the company in terms of projection for the current financial year and next financial year?

A: In terms of PBT, last year we closed around Rs 103 crore and this year expectation is to do significantly better than that and it terms of EBITDA Margins we are around 12 percent. I am expecting double-digit topline growth, both this year and going forward '15-16. We are in a growth pattern at the moment and all investments have been made for capturing this double digit growth.

Q: Can you focus a bit on your profits and what are the projections at least that you are working with in the foreseeable future?

A: Profit after tax (PAT) level we would be around Rs 70 crore plus and again the plan is to deliver significant value to the shareholders so PAT also will continue to grow northwards as we deliver double digit revenue growth.

Q: In that case, can you tell us if you would see some improvement in your return on assets and return on equity going forward?

A: Definitely, yes and this is one of the reasons we went ahead with this whole demerger process and we have been looking at this for the last one year and we can achieve those numbers. Of course on the other side, as you know on the real estate side also work has commenced on the Bangalore project. So I am expecting also on the Gulf Oil Corporation Limited side with the land projects now beginning to deliver revenue, I am sure both stocks will perform very well.

Q: Market share for lubricant side is around 5 percent. Where will the growth come from and what is the expected market share as well?

A: We are going to focus more on B2B tractor. We are going to be announcing in the next two weeks and other major OE tie-up. So, in terms of volumes, as I have mentioned before, the goal is to be the top three amongst the private sector players.

Q: Going back to number projection, for full year '15 can we expect a profit of Rs 100 crore or so?

A: On the PBT side right now, we are definitely looking at FY15 in excess of Rs 140 crore. So we are there near about I would say.

Q: And capex?

A: Yes we have acquired land in Chennai and we are going ahead with a second plant in Chennai, and I am expecting that will cost around Rs 120-130 crore and debottlenecking is happening in the existing plant in Silvassa which is Rs 30-40 crore.

Q: What about the promoter stake, are promoters looking to increase stake in the company going forward?

A: The promoter group GOI already has 60 percent, so we are well over 50 percent minimum. Therefore, we have no such plans for the moment.

Gulf Oil Corp stock price

On July 31, 2014, Gulf Oil Corporation closed at Rs 154.45, down Rs 6.8, or 4.22 percent. The 52-week high of the share was Rs 197.00 and the 52-week low was Rs 62.10.

The company's trailing 12-month (TTM) EPS was at Rs 11.77 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 13.12. The latest book value of the company is Rs 232.56 per share. At current value, the price-to-book value of the company is 0.66.

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Cipla, BioQuiddity ink pact to sell pain management product

The pact between Cipla Europe (CE) NV, the company's wholly owned arm, and BioQuiddity Inc will cover countries in Europe, the company said in a statement.

Pharmaceutical firm Cipla  today announced a partnership with US-based BioQuiddity Inc for collaboration to sell the latter's post-surgical pain management product OneDose ReadyfusORTM in Europe.

The pact between Cipla Europe (CE) NV, the company's wholly owned arm, and BioQuiddity Inc will cover countries in Europe, the company said in a statement.

The Indian firm intends to launch the CE marked OneDose ReadyfusOR pre-filled with Ropivacaine under its own label into the German market late this year, it added.

"Cipla believes that this post-surgical pain product candidate presents a unique opportunity to provide an easy to use, well-tolerated, and efficient regional anesthesia system that could make savings for healthcare providers and patients," Cipla Europe Head Frank Pieters said.

BioQuiddity President and CEO Joshua Kriesel said: "Cipla's strong commercial record puts them in an outstanding position to detail the OneDose ReadyfusOR's safety, sterility, and ease of use value proposition objectives.

Also read:  FDA raises concern over drug production process at Cadila

Cipla stock price

On July 31, 2014, Cipla closed at Rs 456.30, up Rs 8.60, or 1.92 percent. The 52-week high of the share was Rs 462.65 and the 52-week low was Rs 366.70.

The company's trailing 12-month (TTM) EPS was at Rs 17.29 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 26.39. The latest book value of the company is Rs 127.76 per share. At current value, the price-to-book value of the company is 3.57.

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IOB to raise $500 million through overseas bond sale

State-owned lender Indian Overseas Bank (IOB) announced here today that it plans to raise USD 500 million through a medium-term bond sale shortly. The bank has already received approval to raise up to USD 1 billion from its board.

State-owned lender  Indian Overseas Bank (IOB) announced here today that it plans to raise USD 500 million through a medium-term bond sale shortly. The bank has already received approval to raise up to USD 1 billion from its board.

"Currently, the market is very right. So, when we see good appetite from corporates, we will raise USD 500 million out of our medium term note programme," Indian Overseas Bank's outgoing Chairman and Managing Director M Narendra, who retires tomorrow, told reporters here.

He said that the bank would require Rs 3,500 crore as fresh capital during the current fiscal.

Also read: Indian Overseas Bank Q1 net zooms over 2-fold to Rs 271cr

"We have asked some amount from the government also. Last year, we got Rs 1,200 crore from the government and we hope this year we get a similar amount," Narendra said.

The bank also plans to raise some funds through Qualified Institutional Placement, but its timing and amount would be decided after government and Reserve Bank approvals.

In the quarter ended June, the bank's net profit more than doubled to Rs 271.72 crore from Rs 125.80 crore. Total income was tad up at Rs 6,284.69 crore compared to Rs 6,187.15 crore in the year-ago quarter.

Gross NPAs stood at 5.84 percent as against 4.45 percent, while net NPA increased to 3.85 percent from 2.81 percent in the year-ago period. Provision coverage ratio as on June 30 stood at 52.85 percent.

IOB stock price

On July 31, 2014, Indian Overseas Bank closed at Rs 70.10, down Rs 0.8, or 1.13 percent. The 52-week high of the share was Rs 89.90 and the 52-week low was Rs 37.15.

The company's trailing 12-month (TTM) EPS was at Rs 6.05 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 11.59. The latest book value of the company is Rs 130.90 per share. At current value, the price-to-book value of the company is 0.54.

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FDA raises concern over drug production process at Cadila

The FDA has not expressed concerns over the entire facility, said the sources. The US agency communicated its concern to Cadila in a Form 483, a letter in which the agency typically outlines violations of standard manufacturing practices.

The US Food and Drug Administration (FDA) has expressed concerns over the manufacturing process of at least one product at drugmaker Cadila Healthcare Ltd 's Moraiya facility, two sources with direct knowledge of the matter said.

The FDA has not expressed concerns over the entire facility, said the sources. The US agency communicated its concern to Cadila in a Form 483, a letter in which the agency typically outlines violations of standard manufacturing practices.

Once the Form 483 is sent, the company has 15 days to respond before the FDA takes any further action.

The FDA inspected the Moraiya plant, based in Gujarat, in the second week of July, one of the sources said.

The sources declined to be named as the information is not public yet. A Cadila spokeswoman declined to comment.

Cadila's shares dropped as much as 10.5 percent on Thursday and were trading down 5.3 percent to 1,106.50 rupees at 1:01 p.m., while the broader Nifty was down 0.22 percent.

Also read:  Cadila Health Q1 profit up 23% to Rs 240 cr led by US sales

Cadila Health stock price

On July 28, 2014, Cadila Healthcare closed at Rs 1129.10, up Rs 6.40, or 0.57 percent. The 52-week high of the share was Rs 1188.00 and the 52-week low was Rs 631.00.

The company's trailing 12-month (TTM) EPS was at Rs 43.13 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 26.18. The latest book value of the company is Rs 177.28 per share. At current value, the price-to-book value of the company is 6.37.

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JSW Steel to increase capacity to 40 mn tonnes by 2025

Steel major JSW Steel  today said it has prepared a blue print to increase overall steel capacity to 40 million tonnes per annum by 2025 in order to retain market share of 13-14 percent.

The company has installed capacity of 14.3 million tonnes. "In order to retain market share of 13-14 per cent, the company has prepared a blue print to increase overall steel capacity to 40 million tonnes per annum by 2025, which will entail a capital outlay in the range of USD 22 billion over the next decade," JSW Steel Chairman Sajjan Jindal told shareholders at the company's 20th annual general meeting here.

Acknowledging the country's enormous potential for steel consumption, the Government of India has set a target of 300 million tonne capacity by 2025 from the current level of around 105 million tonnes. This would require huge investments to the tune of USD 200 billion within a span of around one decade, he said.

"I believe that India's steel industry is fully equipped to meet this challenge, duly supported by proactive policy reforms and forward-looking initiatives by the Government," Jindal said.

India has several competitive advantages like abundant reserves of iron ore, coal, a growing pool of technical talent and a huge market. It is high time India started leveraging its indigenous resources to emerge as the world's leading exporter of manufactured commodities and products, rather than being an importer, the chairman said.

Despite India being endowed with high quality iron ore resources, we have now resorted to importing iron ore. Additionally, as other nations restrict exports of valuable natural resources, India continues to export iron ore, he said.

Policies addressing these issues will go a long way in protecting and augmenting the capabilities of the Indian steel industry. A transparent process of allocating natural resources through auctions is a necessity and the government must seriously consider and implement such measures, he said.

JSW Steel remain committed to the planned Greenfield projects in West Bengal and Jharkhand, committing additional capital to these projects is limited to securing raw material linkages as it is fundamental to achieve financial closure.

"During the FY 14, despite sluggish domestic demand, constrained iron ore availability and higher procurement costs, not only we improved margins from 17.8 to 19.4 percent but our overall market share too rose to 13.2 percent," he said.

JSW Steel stock price

On July 28, 2014, JSW Steel closed at Rs 1191.75, up Rs 13.30, or 1.13 percent. The 52-week high of the share was Rs 1317.00 and the 52-week low was Rs 451.50.

The company's trailing 12-month (TTM) EPS was at Rs 55.21 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 21.59. The latest book value of the company is Rs 970.48 per share. At current value, the price-to-book value of the company is 1.23.

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Why Vishal Sikka wants to make Infosys more process-driven

Infosys on Wednesday held an extraordinary general meeting to bid farewell to SD Shibulal and Kris Gopalakrishnan as shareholders of the company also approved the appointment of Sikka as the new CEO.

It's time for Infosys  to move from the founders' intuition to building system that delivers, said Vishal Sikka - the incoming CEO of the largest software services exporter in India - just 2 days before he takes charge formally.

Infosys on Wednesday held an extraordinary general meeting to bid farewell to SD Shibulal and Kris Gopalakrishnan as shareholders of the company also approved the appointment of Sikka as the new CEO.

Also Read: Exit interview of Infosys' Shibulal

Speaking to the media after the meeting, Sikka said: "There comes a time in the life of a company when the instinct and the intuition, the knowledge of the founder is replaced by processes, structures, principles and innovations that we put together. Pravin and my endeavour will be to do that."

"Beyond that the big thing that I deeply believe is that the world around us is becoming fundamentally reshaped with software. Everything that we see around us is becoming software defined and that gives Infosys a tremendous opportunity to help reshape that in every industry whether it is banks, financial services, manufacturing, oil and gas, in retail especially," he added.

Infosys stock price

On July 30, 2014, Infosys closed at Rs 3368.05, up Rs 1.65, or 0.05 percent. The 52-week high of the share was Rs 3847.20 and the 52-week low was Rs 2894.00.

The company's trailing 12-month (TTM) EPS was at Rs 185.71 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 18.14. The latest book value of the company is Rs 733.03 per share. At current value, the price-to-book value of the company is 4.59.

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Race for Grosvenor House

Subrata Roy gets ready to sell Sahara's priced overseas assets, vaccine king Cyrus Poonawalla submits 550 million pound bid for the landmark Grosvenor House in London. This on the same week the SC asked Tihar Jail if it is ready to grant facilities like Wi-Fi and video conferencing for Roy to negotiate realty deals while still in police custody.

Subrata Roy gets ready to sell Sahara's priced overseas assets, vaccine king Cyrus Poonawalla submits 550 million pound bid for the landmark Grosvenor House in London. This on the same week the Supreme Court (SC) asked Tihar Jail if it is ready to grant facilities like Wi-Fi and video conferencing for Roy to negotiate realty deals while still in police custody.

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Gera's song of joy in Pune

This week in the launch-pad segment, Prime Property puts the spotlight on the Pune based Gera Developers new child-centric homes located in Gera's home cities & in Bangalore, these are not merely cartoon themed bedrooms & parks but go beyond that to house training facilities for sports, dance & music.

This week in the launch-pad segment, Prime Property puts the spotlight on the Pune based Gera Developers new child-centric homes located in Gera's home cities and in Bangalore, these are not merely cartoon themed bedrooms and parks but go beyond that to house training facilities for sports, dance and music, crèches run by neighbourhood grannies and childproof interiors.

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Here's what transpired at the Mint Budget Conclave

The eminent panelist at the Mint Budget Conclave discussed about the Budget in detail, comparing today's India to the India in 1991.

The eminent panelist at the Mint Budget Conclave discussed about the Budget in detail, comparing today's India to the India in 1991.

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Temasek bullish on India, sees e-comm mkt grow 6x in 4 yrs

The 180 billion dollar Singapore-based investment fund Temasek is positive on India and is betting big on the e-commerce space. The fund recently invested in e-tailer, Snapdeal and expects the e-commerce market to grow six times in terms of transaction volumes in the next 3-4 years. Temasek was also an early investor in Alibaba and says Snapdeal's model is similar to that of Alibaba.

In a CNBC-TV18 exclusive, Sajeet Manghat caught up with Rohit Sipahimalani, co-head - investment group, Temasek to know more about the company and its expectations going ahead.

Also Read: Amazon ups ante in war with Flipkart, pumps $2bn into arm

Below is the verbatim transcript of the interview:

Q: How much comfortable are you in investing in e-commerce space?

A: We have a lot of experience with investing in different e-commerce models in different markets. We were actually an early investor in Alibaba few years ago and then have subsequently made more investments there.

Q: Will you be offloading some shares when the Alibaba IPO comes?

A: We don't know the time of the IPO but at this point there are no intentions to do that. Similarly, in Brazil we have invested in a company called Netshoes. Alibaba is a market place, Netshoes is more an inventory based sales model. So, they are different business models and different models have different characteristics.

We see a lot of potential for e-commerce in India in terms of growth. We see the market grow six times in the next 3-4 years in terms of the overall transaction volume and so, there is a huge opportunity there.

In terms of how they will play out, you are looking at people who have some scale. At the early stage when there are dozens of players it is very difficult to figure out who the winner would be. The runway is so long that we normally prefer to wait for a while for some of that to play out before we come and invest.

We particularly look at scale, look at technology platform in terms of scalability but you need to see the linkage with the overall eco-system. 

Q: What about Flipkart because you had a billion dollar invested into Flipkart yesterday? Did you look at Flipkart? How is the model of Snapdeal different from Flipkart?

A: I won't comment on specific companies that we look at or we don't look at.

Q: I just want to know the difference between the market models?

A: The marketplace model is more where you are not carrying your own inventory but you have a platform under which various buyers and sellers can come together. However, you as a marketplace are facilitating the transactions and making sure there is delivery on time, payment on time and matching buyers and sellers.

An inventory led model is more where you own the inventory yourself and then sell it to customers. To some extent that is the primary difference between the two models.

Q: Which will create more cash flows first – the marketplace model or the inventory based model?

A: It is very difficult to say how individual models will evolve. I can only point one example in China where Alibaba has been the marketplace model and you have another e-commerce player like JD which is more inventory led. From a cash flow perspective the marketplace model has been less capital intensive and has generated more early profits for shareholders.

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CoalMin to review status of formation of JV, SPV next week

Kick-starting the process of coal blocks allocation, the government had last year allocated 17 coal mines - 14 to power and 3 to mining public sector undertakings (PSUs).

The Coal Ministry has convened a meeting next week to review the progress on setting up special purpose vehicles (SPV) and joint ventures (JV) among state-owned firms which have been jointly allocated coal blocks.

"Additional Secretary, Ministry of Coal, will hold a meeting with the representatives of the state government on August 4...to review the current status of formation of SPV/JV
company amongst the state government companies/corporations, those who have been allocated coal blocks jointly for the end use i.e power as well as for mining," according to the meeting notice.

The Coal Ministry had earlier asked states to advise the companies that have been allocated mines to either form SPVs or JVs for projects.

Kick-starting the process of coal blocks allocation, the government had last year allocated 17 coal mines - 14 to power and 3 to mining public sector undertakings (PSUs).

Of the 14 blocks alloted to power PSUs, four were alloted to NTPC.

Other power PSUs that were allocated mines included Neyveli Uttar Pradesh Power Ltd, Odisha Thermal Power Corp, Jammu & Kashmir State Power Dev Corp, Chhattisgarh State Power Gen Co Ltd, Andhra Pradesh Generation Co, Maharashtra State Power Generation Co, Rajasthan Vidyut Utpadan Nigam and Punjab State Power Corp Ltd.

Three three blocks were alloted to mining PSUs like Jharkhand State Mineral Development Corp and MP State Mining Corporation Ltd.

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Flipkart raises USD 1bn funding; drops plans to go public

India's largest e-Commerce firm Flipkart today said it has raised USD 1 billion (over Rs 6,000 crore) in fresh funding from a group of investors, the largest so far in the fiercely competitive online shopping segment in the country.

The company did not disclose its new holding pattern.

The sources said, however, that with this round of fund raising, Flipkart is valued at about USD 7 billion (around Rs 42,000 crore).

Co-led by existing investors Tiger Global Management and Naspers, Singapore's sovereign wealth fund, GIC, Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina also participated in this latest financing round.

The Bangalore-based firm will utilise funds on expanding its online and mobile services, focusing on areas like R&D, enhancing customer experience and sellerbase.

Flush with cash, Flipkart is also scouting for acquisitions, which can help it expand into newer technologies like wearables and robotics, a move that it believes will impact mobile commerce in the days to come.

"The funds will be used to make long-term strategic investments in India, especially in mobile technology,"

Flipkart co-founder and CEO Sachin Bansal told reporters here.

The focus at Flipkart is to continue to make shopping online simpler and more accessible through the use of technology, he added.

"This funding will enable us to step up our investments for innovations in products and technologies, setting us up to become the mobile e-commerce company of the future. This funding will help us further accelerate momentum and build our presence to become a technology powerhouse," he said.

On the company's IPO plans, Bansal said: "IPO is not in consideration at all, we are not thinking about it. We have not settled on a business model that we can take public."

In May, Flipkart had raised USD 210 million funding, bringing private equity firm DST Global on board as an investor.

It is estimated that the firm has, so far, raised over USD 1.7 billion from investors, including the current transaction.

The Bangalore-based firm, founded by Sachin Bansal and Binny Bansal, counts Accel Partners, Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital among its other investors.

The home-grown e-retailer had acquired online fashion retailer Myntra in May in what is estimated to be a Rs 2,000-crore deal.

It had also announced an investment of USD 100 million (around Rs 600 crore) in its fashion business over the next 12-18 months.

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Future Retail files papers for Rs 1,600 cr rights issue

As per the draft letter of offer of Future Retail filed with Sebi, the company would issue certain classes of shares to its public shareholders on a rights basis.

Kishore Biyani-promoted  Future Retail has filed initial papers with market regulator Sebi to raise up to Rs 1,600 crore through a rights issue.

As per the draft letter of offer of Future Retail filed with Sebi, the company would issue certain classes of shares to its public shareholders on a rights basis.

"Total proceeds from the issue of equity shares and class B shares would aggregate up to Rs 1,600 crore," Future Retail said in the document.

In a rights issue shares are issued to existing investors as per their holding at a pre-determined price and ratio.

The funds from the issue would be utilised towards repayment/ pre-payment of certain borrowings availed by the company as well as for general corporate purposes.

Axis Capital, JM Financial Institutional Securities and Edelweiss Financial Services are the lead managers to the issue. Link Intime India is the registrar to the issue.

Future Retail is the flagship company of the Future Group and is into organised multi-format retail business in India.

The company has retail stores in various formats including food, fashion apparels, accessories and footwear, general merchandise, consumer durables and electronics.

The company has pan-India presence with 321 stores in 98 cities in the country as of March 31, 2014.

Future Retail stock price

On July 28, 2014, Future Retail closed at Rs 127.80, up Rs 0.90, or 0.71 percent. The 52-week high of the share was Rs 147.85 and the 52-week low was Rs 63.30.

The company's trailing 12-month (TTM) EPS was at Rs 0.17 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 751.76. The latest book value of the company is Rs 140.28 per share. At current value, the price-to-book value of the company is 0.91.

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New Jaguar XE sedan to make global debut in September

The Jaguar XE will use a new grade of high strength aluminium called 'RC 5754', which has been developed specifically for the XE, the company said in a statement.

Tata Motors -owned Jaguar Land rover will hold the global premiere of the new Jaguar XE luxury sedan in London on September 8 with which it is looking to bring new levels of aluminium-intensive lightweight construction expertise to the segment.

The Jaguar XE will use a new grade of high strength aluminium called 'RC 5754', which has been developed specifically for the XE, the company said in a statement.

"This new alloy features a high level of recycled material and makes a significant contribution to Jaguar's goal of using 75 percent recycled material by 2020," it said.

Commenting on the new product, Jaguar's Chief Technical Specialist Mark White said: "The Jaguar XE body uses over 75 percent aluminium content, which far exceeds any other car in its class."

He further said: "We've made sure our aluminium-intensive body structure exceeds all global safety standards without compromising on vehicle design or refinement."

Designed and engineered in the UK, the Jaguar XE will be the first Jaguar to be manufactured at a new purpose-built production facility at the company's Solihull plant in the West Midlands in the UK.

"The world premiere of the new Jaguar XE will be held in London on September 8," the company added.

It further said the XE is projected to deliver fuel economy of less than 4 litres/100km on EU combined cycle.

JLR has been focussing on lightweight construction for its Jaguar brand. The Jaguar XJ, XK and F-Type have all been developed using aluminium structures. The XE becomes the
latest model to use aerospace-inspired technology in cars.

Tata Motors stock price

On July 28, 2014, Tata Motors closed at Rs 453.15, down Rs 8.75, or 1.89 percent. The 52-week high of the share was Rs 488.05 and the 52-week low was Rs 272.50.

The company's trailing 12-month (TTM) EPS was at Rs 1.04 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 435.72. The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company is 7.61.

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AP govt gives nod to LNG Terminal at Gangavaram Port

Petronet is a Joint Venture set up by GAIL (India) Ltd ONGC, Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd to import LNG and set up LNG terminals in the country with an authorised capital is Rs 1,200 crore (USD 240 million).

The Andhra Pradesh government has given its nod for setting up the LNG Terminal by  Petronet LNG Ltd at Gangavaram Port on the East Coast near Visakhapatnam.

However, it has refused Gangavaram Port's proposal to collect the water front charges at the rate of Rs 103.68 per metric tonne of LNG cargo handled from Petronet.

Petronet is a Joint Venture set up by  GAIL (India) Ltd ONGC ,  Indian Oil Corporation Ltd and  Bharat Petroleum Corporation Ltd to import LNG and set up LNG terminals in the country with an authorised capital is Rs 1,200 crore (USD 240 million).

Gangavaram Port Ltd along with PLL has proposed to construct and operate a 5 MMTPA LNG Terminal with a provision to expand further to 10 MMTPA.

The JV company will have equity contributions from PLL (76 percent) Gangavaram Port Ltd (8 percent) and other parties such as prospective LNG suppliers/buyers or any strategic investor.

PLL will be the majority share holder and will have complete management control over the JV Company.

According to a government order issued yesterday, the Gangavaram Port Ltd will submit to the government the Detailed Project Report that was submitted to the lenders for achieving Financial Closure and ensure financial sustainability of the project.

"Government after detailed examination of the proposal in consultation with Law and Finance Departments and keeping in view the recommendations of the Empowered Group of Ministers, hereby accord approval to M/s Gangavaram Port Limited, Visakhapatnam District for establishing LNG Terminal at Gangavaram Port," the order said.

Petronet LNG stock price

On July 28, 2014, Petronet LNG closed at Rs 183.50, down Rs 0.8, or 0.43 percent. The 52-week high of the share was Rs 189.50 and the 52-week low was Rs 102.50.

The company's trailing 12-month (TTM) EPS was at Rs 9.49 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 19.34. The latest book value of the company is Rs 68.82 per share. At current value, the price-to-book value of the company is 2.67.

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Tata Crucible Campus Quiz: West Zone Finals

Find out which of the eight teams won the Western Zonal Finals of the Tata Crucible Campus Quiz 2014.

Find out which of the eight teams won the Western Zonal Finals of the Tata Crucible Campus Quiz 2014.

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No proposal for merger of United Bank with IDBI Bank

Both the banks are public sector entities with government of India having 76.50 percent and 89.47 percent stake in IDBI Bank and United Bank of India respectively.

State-owned IDBI Bank  today said it is not considering any proposal to merge Kolkata-based United Bank of India  with itself.

"We confirm that so far no proposal for merger of United Bank of India with IDBI Bank has been discussed at IDBI Bank's board meeting and also no communication from Government of India in respect of the above has been received by the bank," IDBI Bank said in a statement.

Meanwhile in separate statement, United Bank of India said that there is no negotiations taking place for merger of the bank.

"No negotiations are taking place for the merger of the bank with any other bank," United Bank of India said. Shares of United Bank of India were trading at Rs 53, up 8.16 percent on the BSE, while IDBI Bank was trading at Rs 91.10 per unit, up 1 percent.

Both the banks are public sector entities with government of India having 76.50 percent and 89.47 percent stake in IDBI Bank and United Bank of India respectively.

Also read:  Open to divestment of non-core assets: IDBI

"As soon as any communication from Government of India is received by IDBI Bank or any such proposal is discussed at IDBI Bank's board meeting, necessary disclosure under clause 36 of the Listing Agreement shall be made by the bank," it said.

Saddled with over 10 percent gross non-performing assets, United Bank of India scripted a turnaround in the fourth quarter of 2013-14 by reporting an over 15-fold jump in net profit to Rs 469 crore on the back of cash recovery and upgradation of accounts.

In the January-March 2013 quarter, the bank had posted a profit of Rs 31 crore.

The bank's gross NPAs had jumped by Rs 4,001 crore in six months till December largely on account of a change in accounting practices.

At the end of March 2014, the bank's gross bad loans were at Rs 7,118.01 crore, compared with Rs 8,545.5 crore in the three months earlier.

IDBI Bank stock price

On July 28, 2014, IDBI Bank closed at Rs 90.30, up Rs 0.10, or 0.11 percent. The 52-week high of the share was Rs 116.50 and the 52-week low was Rs 52.30.

The company's trailing 12-month (TTM) EPS was at Rs 6.99 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 12.92. The latest book value of the company is Rs 147.38 per share. At current value, the price-to-book value of the company is 0.61.

21.03 | 0 komentar | Read More

Ankit Metal okays debt recast; promoter infuses Rs 30-35cr

Ankit Metal and Power has approved a debt recast package with the promoters deciding to infuse upfront equity to the tune of Rs 30-35 crore.

Currently we are paying close to 14 percent interest cost and it should come down to about 11 percent.

Ankit Patni

Managing Director

Ankit Metal & Power

Ankit Metal and Power  has approved a debt recast package with the promoters deciding to infuse upfront equity to the tune of Rs 30-35 crore.

The company has total debt of about Rs 1,000 crore, managing director Ankit Patni told CNBC-TV18's Reema Tendulkar and Nigel D'Souza in an interview.

The stock was up about 2 percent in Mumbai trading today.

Also read: Ankit Metal standalone Mar '14 sales at Rs 422.74 crore

Below is the transcript of the interview with CNBC-TV18.

Reema: Can you walk us through the corporate debt restructuring schemes (CDR). What is the total debt on the books and what the timeline is?

A: The total debt on the books is close to Rs 1,000 crore. I cannot comment on the timeline as of now because that is something that we are not supposed to talk until the restructuring is through.

Nigel: What is the commitment from the promoters to this entire CDR structure?

A: A part of the bank's sacrifice will be the commitment of the promoters. I cannot recall the number again but it is close to Rs 30 crore-35 crore.

Reema: The promoters have to infuse Rs 30 crore-35 crore?

A: That's right.

Reema: How soon and by what method will you be infusing that?

A: That will be an equity infusion. It is supposed to be brought in upfront.

Nigel: What are your interest costs looking like currently and what will they come down. If you can give us a percentage of what is the interest rate you are paying currently and post this entire restructuring what will it come down to?

A: Currently we are paying close to 14 percent and it should come down to about 11 percent.

Ankit Metal stock price

On July 28, 2014, Ankit Metal and Power closed at Rs 7.99, up Rs 0.16, or 2.04 percent. The 52-week high of the share was Rs 14.95 and the 52-week low was Rs 6.40.

The latest book value of the company is Rs 36.81 per share. At current value, the price-to-book value of the company was 0.22.

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Bharti Airtel crosses 300mn customers milestone

Bharti Airtel is the largest telecom company in India by customers as well as revenue and was the first in the country to launch 4G services in 2012.

India's largest telecom firm  Bharti Airtel on Monday said it has crossed 300 million customers mark across its mobile, fixed line, DSL and DTH services.

Bharti Airtel, which began operations in 1995, reached the 100 million customers mark in 2009 and crossed the 200 million mark in 2012.

"The latest 100 million customers have joined the Airtel family in less than two years. The company ranks as the fourth largest mobile service provider globally and second largest globally outside of China," Airtel said in a statement.

Bharti Airtel has operations in 20 countries across Asia and Africa.

Also Read: TRAI recommends sharing of all telecom spectrum

"This milestone underlines strength of our operations, which is one of the largest on a global scale. Today, telecom is at the cusp of transformation, which, going forward will be driven as much by the force of technology as by the changing demographics in emerging markets across Asia and Africa," Bharti Airtel Managing Director and CEO (India and South Asia) Gopal Vittal said. Accelerated data consumption by the youth is going to be the underlying story, he added.

"I am confident that Airtel will continue to be at the forefront of this future growth story and continue to delight customers by adding value to their lives," he said.

Bharti Airtel is the largest telecom company in India by customers as well as revenue and was the first in the country to launch 4G services in 2012.

In Africa, Bharti Airtel is the largest mobile operator in the continent in terms of geographical footprint, which spans 17 countries with over 70 million customers.

Airtel's mobile networks carry over 311 billion minutes of calls every quarter.

According to Telecom Regulatory Authority of India (TRAI), Bharti Airtel had 22.88 per cent share of the Indian wireless subscriber market at the end of May 2014.

It had over 208 million mobile phone subscribers, while the number of wireline users stood at 3,347,309 as on May 30, 2014.

Bharti Airtel stock price

On July 28, 2014, Bharti Airtel closed at Rs 354.35, down Rs 0.3, or 0.08 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 279.25.

The company's trailing 12-month (TTM) EPS was at Rs 16.51 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 21.46. The latest book value of the company is Rs 152.21 per share. At current value, the price-to-book value of the company is 2.33.

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Amway India MD CEO William Pinckney released on bail

Direct-selling company Amway India Monday said its MD and CEO William S Pinckney has been released on bail, two months after his arrest by Andhra Pradesh Police in connection with criminal cases registered against the firm in the state.

A spokesperson of Amway said Pinckney has been granted bail in all the cases in Andhra Pradesh.

Commenting on the development in a joint statement, Amway Chairman Steve Van Andel and President Doug DeVos said: "The release of Amway India CEO Bill Pinckney is a great relief."

They, however, added they were "profoundly dismayed that this unnecessary detention occurred at all, and are even more troubled that it lasted so long".

Amway Regional President, Europe, South Africa & India Samir Behl said: "His arrest and long detention was unnecessary and unreasonable. We will vigorously defend ourselves at trial."

Pinckney was arrested on May 26 from Amway India's headquarters at Gurgaon and later was produced before a court in district Kurnool, which sent him to judicial custody after rejecting his bail plea.

He was subsequently arrested in other criminal cases registered against him in the state on allegations of financial irregularities by Amway, a charge contested by the company.

"Our focus is squarely on efforts to ensure that nothing like this happens again. Our commitment to Amway Business Owners who sell our products in India is unwavering," Andel and DeVos said.

The direct selling firm has reiterated its commitment for the Indian market and to 'hundreds of thousands' of Amway Business Owners and employees.

The company said it would work with the newly elected government for a clear direct selling legislation.

Direct sellers in India have been asking for a separate legislation as there is conflict with the Prize Chits and Money Circulation Schemes (Banning) Act (PCMCS).

"Our resolve to work with the newly elected Union Government in New Delhi on clear direct selling legislation is stronger than ever... Amway can partner to find legislative solutions in India that clearly distinguish legitimate direct selling businesses from frauds, protecting Indian citizens from unethical operators," said Andel and DeVos.

This was Pinckney's second arrest in India. Last year, Pinckney was arrested by Kerala Police along with two company directors on charges of alleged financial irregularities under PCMCS.

Globally, Amway has operations in countries such as the US, the UK, China, Malaysia, Singapore and Vietnam. It has invested more than USD 100 million in a manufacturing facility in the country.

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Coal India undermined by basic equipment flaws

As Prime Minister Narendra Modi's government looks to shape up  Coal India Ltd for a potential major restructuring, the world's biggest coal miner still faces basic problems: it does not have enough mechanical shovels, dumpers and explosives.

The new government, which has a 90 percent stake in the company whose total market value is about USD 40 billion, is exploring a break up and opening up the sector to foreign investment to boost output and cut imports, sources have said.

But the firm, which accounts for more than 80 percent of India's production and employs 350,000, has not met its output target for years, ensuring the country remains the world's third-largest coal importer despite sitting on huge reserves.

Also Read: Coal India's plans for 20 mines hit by environment delays

A failure to boost efficiency could threaten long-run plans to spin off some of the seven units of the coal miner, a vital part of the government's reform strategy.

Two units produced less in the last fiscal year than a year ago, partly due to lack of basic equipment and ageing machinery, Power and Coal Minister Piyush Goyal told parliament this week.

The minister did not provide data but according to a top official at one Coal India unit this issue could be cutting Coal India's annual output by more than 10 percent. The official declined to be identified due to its policy on talking to media.

Coal India spokesman Vijay Sagar said it was difficult to assess how much production was affected due to shortages of equipment or explosives. The latter is in short supply mainly due to a restriction on moving chemicals such as ammonium nitrate to prevent it from being misused by extremists.

Nonetheless, resolving equipment issues may be easier to address than other problems such as difficulties pushing through land acquisition, delays in getting environmental clearances and lack of transport facilities.

Coal India produced 462 million tonnes in the last fiscal year, against a target of 482 million.

PROCUREMENT

Experts said a shortage of mechanical shovels and dumpers, used in open cast mining, was partly due to Coal India's procurement policy that forces it to issue a tender for every big purchase, even for spare parts.

Shortages of critical spare parts, including dumper tyres, can halt machinery for months, said Dipesh Dipu, a partner at Jenissi Management Consultants, which advises resource firms.

Coal India's Sagar said though procurement of big equipment may take time things had improved in the past three years after the appointment of an external monitor to oversee purchases.

In late 2011, some Coal India officials were charged for corruption over equipment tenders, leading to heightened scrutiny of the procurement process.

Coal India's productivity, in output-per-man each shift, was 4.92 tonnes in 2011-12, below a target of 5.54, according to the last available Planning Commission figures. The global average is about three times of that.

Productivity in underground mining is less than one tonne. About a tenth of India's underground output is loaded by workers, according to the planning commission, which has asked for it to be fully mechanised by 2017.

In addition, the number of hours a shovel would run would be around 22 hours a day in the private sector, but just 15 hours in a public sector firm like Coal India, according to experts.

Minister Goyal said there was scope to improve mechanization in underground mining and that Coal India was looking at a consultancy's recommendations on technology and modernising mines.

KPMG Advisory Services' recommendations include more detailed planning for mines, using international benchmarking for equipment productivity, refuelling of machinery in the field and improved training of workers.

(USD 1 = 60.1250 Indian Rupees)

21.03 | 0 komentar | Read More

RBI penalises ICICI Bank, Canara Bank, Yes Bank 9 others

The Reserve Bank said it had "carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings, in certain branches of the 12 banks in late 2013". Based on the findings of the scrutiny, the RBI issued showcause notices to these banks in March 2014, to which the individual banks submitted written replies.

ICICI Bank , Axis Bank , Canara Bank , IDBI Bank ,  Yes Bank and seven other banks have been penalised in the case of Deccan Chronicle Holdings , the RBI said today. The total penalty on the banks stands at Rs 1.5 crore, RBI said in a release.

The RBI has imposed a monetary penalty of Rs 40 lakh on ICICI Bank and Rs 15 lakh each on Axis Bank and IDBI Bank.

Further Rs 10 lakh penalty each has been imposed on Andhra Bank , Canara Bank , Corporation Bank , IndusInd Bank , Kotak Mahindra Bank , State Bank of Hyderabad and Yes Bank . Penalty of Rs 5 lakh each has been imposed on  HDFC Bank and Ratnakar Bank.

The Reserve Bank said it had "carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings, in certain branches of the 12 banks in late 2013". Based on the findings of the scrutiny, the RBI issued showcause notices to these banks in March 2014, to which the individual banks submitted written replies.

"After considering the facts of each case and the individual bank's reply, as also, the personal submissions etc, by some of the banks...the RBI came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty," the RBI said in a release.

The RBI, however added that "this action is not intended to pronounce upon the validity of any transaction or agreement entered into between the concerned bank and the borrower".

ICICI Bank stock price

On July 23, 2014, ICICI Bank closed at Rs 1505.80, up Rs 22.60, or 1.52 percent. The 52-week high of the share was Rs 1590.35 and the 52-week low was Rs 758.80.

The company's trailing 12-month (TTM) EPS was at Rs 84.83 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 17.75. The latest book value of the company is Rs 633.00 per share. At current value, the price-to-book value of the company is 2.38.

21.03 | 0 komentar | Read More

Tata-SIA flying permit exercise progressing well: Official

According to documents submitted to aviation regulator DGCA, it plans to begin services in five cities and go up to 11 within a year of operations. The airline would have 87 weekly flights, linking Delhi with Mumbai, Goa, Bangalore, Hyderabad, Ahmedabad, Jammu, Srinagar, Patna and Chandigarh.

Tata-SIA Airlines Ltd today said it hoped to launch flights by September-October this year as it expressed "satisfaction" over the progress made in getting the flying licence from aviation regulator DGCA. "The AOP (Air Operator's Permit or flying licence) exercise is progressing well and we are expecting to launch the full service airlines' domestic service in September-October," S Varadarajan, Chief Human Resource Officer and Chief of Corporate Affairs of the airline, said here.

Varadarajan, who was in the steel city to participate in the HR Conclave 2014 organised by CII Jamshedpur, said Tata-SIA has shared all relevant issues, including the route network plan of the company with the Director General of Civil Aviation (DGCA), and was awaiting the AOP. The company would procure four to five aircraft by end of March next year and enhance the procurement to 20 in next few years, he said.

Also Read: India to get more wings with aviation revamp on cards

To a query on the route network and destinations to launch flights, Varadarajan refused to comment saying the airline's route network wing was taking care of it. Earlier, the JV company got a go-ahead from the Foreign Investment Promotion Board (FIPB) in October 2013 and was awaiting AOP for launching a full-service carrier. Tata-SIA Airlines, a 51:49 joint venture between Tata Sons and Singapore Airlines, was also expected to announce its new brand name in the first half of next month and the airline would be based in Delhi.

According to documents submitted to aviation regulator DGCA, it plans to begin services in five cities and go up to 11 within a year of operations. The airline would have 87 weekly flights, linking Delhi with Mumbai, Goa, Bangalore, Hyderabad, Ahmedabad, Jammu, Srinagar, Patna and Chandigarh. The DGCA is in the process of examining its application for grant of AOP to launch a full-service carrier after recently dismissing objections from the Federation of Indian Airlines against granting of SOP to Tata-SIA Airline. The approval for an AOP, when granted, would be subject to the orders of the Delhi High Court in a case challenging foreign direct investment in new Indian carriers.

21.03 | 0 komentar | Read More

Tremendous mood swing, positivity on Modi govt: Indian CEOs

In his remarks, Chandrajit Banerjee, Director General, CII also appreciated the government's vision and receptivity to new ideas and thoughts, especially from industry.

After the formation of the Narendra Modi government, there is a tremendous mood swing and positivity in the country, a visiting delegation of Indian CEOs from CII said describing its maiden budget as visionary. The delegation of Indian CEOs from Confederation of Indian Industry in an interaction with the Washington audience at Carnegie Endowment for International Peace yesterday highlighted the growing sense of optimism amongst both the public and industry in India following the recent election results which brought BJP to power with a landslide majority.

Ajay Shriram, CII President described the unique nature of the recent elections, in which the BJP came to power solely on the campaign promise of growth and development, which speaks to the aspirations of India's young people. Describing the 2014-15 annual budget as visionary, Shriram commended the new government for moving very actively to ease and facilitate the way business is done in India. "Success in India will come with leadership, mindset change, philosophy and action," he said. In his remarks, Chandrajit Banerjee, Director General, CII also appreciated the government's vision and receptivity to new ideas and thoughts, especially from industry.

Also Read India refuses to endorse trade facilitation deal in WTO

Naushad Forbes, vice president, CII and director, Forbes Marshall Pvt Ltd focused on the promising steps being taken in India's education sector and the increasing role of the market in this sector which is having a net positive impact on issues related to quality and equity of access. He also specifically mentioned the community college model in the US as one worth looking at in India as well. Vikram Kirloskar, vice chairman, Toyota Kirloskar Motor, highlighted the importance of the manufacturing sector and pointed out that the role of industry in this sector related to enhancing quality, competitiveness and innovation.

Rajan Navani, chairman, CII National Committee on India@75 and managing director, Jetline Group of Companies  spoke about the need for India to channelize the power of India' youth through skilling and leadership development. He also spoke of the use of technology as a major potential game changer in India. The wide ranging discussion that followed came at a critical time in India's engagement with the US, with the resumption of several stalled bilateral dialogues , beginning with the US-India Strategic Dialogue in Delhi next week.

21.03 | 0 komentar | Read More

Rel Power submits information on Sasan expansion to EAC

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power  has submitted additional information on expansion of coal mining for its Sasan power project in Madhya Pradesh for obtaining environment clearance.

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power has submitted the requisite information sought by EAC, a source said.

EAC had sought additional information by July 2. A company source confirmed that the additional information sought by EAC has been submitted within the deadline by Reliance Power.

Also read: Reliance Power consolidated Mar '14 sales at Rs 1,358.66 crore

The proposal was for expansion of production capacity at Moher coal mine from 12 million tonnes per annum (MTPA) to 15 MTPA and that at Moher Amlori mine from 16 MTPA to 20 MTPA to feed the ultra-mega Sasan power project.

The EAC "after detailed deliberations, sought information for further consideration of the project," minutes of the June 27 meeting stated.

It asked Reliance Power to submit details of land use pattern covering total project area; total mining lease area; total forest land; total forest clearance obtained and balance forest clearance awaited in a tabulated form.

Reliance Power had in September 2012 started mining for coal for the 4,000 MW Sasan project.

Reliance Power stock price

On July 25, 2014, Reliance Power closed at Rs 90.85, down Rs 3.65, or 3.86 percent. The 52-week high of the share was Rs 112.35 and the 52-week low was Rs 60.10.

The company's trailing 12-month (TTM) EPS was at Rs 0.07 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 1297.86. The latest book value of the company is Rs 60.18 per share. At current value, the price-to-book value of the company is 1.51.

21.03 | 0 komentar | Read More

RBI penalises ICICI Bank, Canara Bank, Yes Bank 9 others

The Reserve Bank said it had "carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings, in certain branches of the 12 banks in late 2013". Based on the findings of the scrutiny, the RBI issued showcause notices to these banks in March 2014, to which the individual banks submitted written replies.

ICICI Bank , Axis Bank , Canara Bank , IDBI Bank ,  Yes Bank and seven other banks have been penalised in the case of Deccan Chronicle Holdings , the RBI said today. The total penalty on the banks stands at Rs 1.5 crore, RBI said in a release.

The RBI has imposed a monetary penalty of Rs 40 lakh on ICICI Bank and Rs 15 lakh each on Axis Bank and IDBI Bank.

Further Rs 10 lakh penalty each has been imposed on Andhra Bank , Canara Bank , Corporation Bank , IndusInd Bank , Kotak Mahindra Bank , State Bank of Hyderabad and Yes Bank . Penalty of Rs 5 lakh each has been imposed on  HDFC Bank and Ratnakar Bank.

The Reserve Bank said it had "carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings, in certain branches of the 12 banks in late 2013". Based on the findings of the scrutiny, the RBI issued showcause notices to these banks in March 2014, to which the individual banks submitted written replies.

"After considering the facts of each case and the individual bank's reply, as also, the personal submissions etc, by some of the banks...the RBI came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty," the RBI said in a release.

The RBI, however added that "this action is not intended to pronounce upon the validity of any transaction or agreement entered into between the concerned bank and the borrower".

ICICI Bank stock price

On July 25, 2014, ICICI Bank closed at Rs 1475.90, down Rs 29.35, or 1.95 percent. The 52-week high of the share was Rs 1590.35 and the 52-week low was Rs 758.80.

The company's trailing 12-month (TTM) EPS was at Rs 84.83 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 17.4. The latest book value of the company is Rs 633.00 per share. At current value, the price-to-book value of the company is 2.33.

21.03 | 0 komentar | Read More

Coal India undermined by basic equipment flaws

As Prime Minister Narendra Modi's government looks to shape up  Coal India Ltd for a potential major restructuring, the world's biggest coal miner still faces basic problems: it does not have enough mechanical shovels, dumpers and explosives.

The new government, which has a 90 percent stake in the company whose total market value is about USD 40 billion, is exploring a break up and opening up the sector to foreign investment to boost output and cut imports, sources have said.

But the firm, which accounts for more than 80 percent of India's production and employs 350,000, has not met its output target for years, ensuring the country remains the world's third-largest coal importer despite sitting on huge reserves.

Also Read: Coal India's plans for 20 mines hit by environment delays

A failure to boost efficiency could threaten long-run plans to spin off some of the seven units of the coal miner, a vital part of the government's reform strategy.

Two units produced less in the last fiscal year than a year ago, partly due to lack of basic equipment and ageing machinery, Power and Coal Minister Piyush Goyal told parliament this week.

The minister did not provide data but according to a top official at one Coal India unit this issue could be cutting Coal India's annual output by more than 10 percent. The official declined to be identified due to its policy on talking to media.

Coal India spokesman Vijay Sagar said it was difficult to assess how much production was affected due to shortages of equipment or explosives. The latter is in short supply mainly due to a restriction on moving chemicals such as ammonium nitrate to prevent it from being misused by extremists.

Nonetheless, resolving equipment issues may be easier to address than other problems such as difficulties pushing through land acquisition, delays in getting environmental clearances and lack of transport facilities.

Coal India produced 462 million tonnes in the last fiscal year, against a target of 482 million.

PROCUREMENT

Experts said a shortage of mechanical shovels and dumpers, used in open cast mining, was partly due to Coal India's procurement policy that forces it to issue a tender for every big purchase, even for spare parts.

Shortages of critical spare parts, including dumper tyres, can halt machinery for months, said Dipesh Dipu, a partner at Jenissi Management Consultants, which advises resource firms.

Coal India's Sagar said though procurement of big equipment may take time things had improved in the past three years after the appointment of an external monitor to oversee purchases.

In late 2011, some Coal India officials were charged for corruption over equipment tenders, leading to heightened scrutiny of the procurement process.

Coal India's productivity, in output-per-man each shift, was 4.92 tonnes in 2011-12, below a target of 5.54, according to the last available Planning Commission figures. The global average is about three times of that.

Productivity in underground mining is less than one tonne. About a tenth of India's underground output is loaded by workers, according to the planning commission, which has asked for it to be fully mechanised by 2017.

In addition, the number of hours a shovel would run would be around 22 hours a day in the private sector, but just 15 hours in a public sector firm like Coal India, according to experts.

Minister Goyal said there was scope to improve mechanization in underground mining and that Coal India was looking at a consultancy's recommendations on technology and modernising mines.

KPMG Advisory Services' recommendations include more detailed planning for mines, using international benchmarking for equipment productivity, refuelling of machinery in the field and improved training of workers.

(USD 1 = 60.1250 Indian Rupees)

21.03 | 0 komentar | Read More

Tata-SIA flying permit exercise progressing well: Official

According to documents submitted to aviation regulator DGCA, it plans to begin services in five cities and go up to 11 within a year of operations. The airline would have 87 weekly flights, linking Delhi with Mumbai, Goa, Bangalore, Hyderabad, Ahmedabad, Jammu, Srinagar, Patna and Chandigarh.

Tata-SIA Airlines Ltd today said it hoped to launch flights by September-October this year as it expressed "satisfaction" over the progress made in getting the flying licence from aviation regulator DGCA. "The AOP (Air Operator's Permit or flying licence) exercise is progressing well and we are expecting to launch the full service airlines' domestic service in September-October," S Varadarajan, Chief Human Resource Officer and Chief of Corporate Affairs of the airline, said here.

Varadarajan, who was in the steel city to participate in the HR Conclave 2014 organised by CII Jamshedpur, said Tata-SIA has shared all relevant issues, including the route network plan of the company with the Director General of Civil Aviation (DGCA), and was awaiting the AOP. The company would procure four to five aircraft by end of March next year and enhance the procurement to 20 in next few years, he said.

Also Read: India to get more wings with aviation revamp on cards

To a query on the route network and destinations to launch flights, Varadarajan refused to comment saying the airline's route network wing was taking care of it. Earlier, the JV company got a go-ahead from the Foreign Investment Promotion Board (FIPB) in October 2013 and was awaiting AOP for launching a full-service carrier. Tata-SIA Airlines, a 51:49 joint venture between Tata Sons and Singapore Airlines, was also expected to announce its new brand name in the first half of next month and the airline would be based in Delhi.

According to documents submitted to aviation regulator DGCA, it plans to begin services in five cities and go up to 11 within a year of operations. The airline would have 87 weekly flights, linking Delhi with Mumbai, Goa, Bangalore, Hyderabad, Ahmedabad, Jammu, Srinagar, Patna and Chandigarh. The DGCA is in the process of examining its application for grant of AOP to launch a full-service carrier after recently dismissing objections from the Federation of Indian Airlines against granting of SOP to Tata-SIA Airline. The approval for an AOP, when granted, would be subject to the orders of the Delhi High Court in a case challenging foreign direct investment in new Indian carriers.

21.03 | 0 komentar | Read More

Tremendous mood swing, positivity on Modi govt: Indian CEOs

In his remarks, Chandrajit Banerjee, Director General, CII also appreciated the government's vision and receptivity to new ideas and thoughts, especially from industry.

After the formation of the Narendra Modi government, there is a tremendous mood swing and positivity in the country, a visiting delegation of Indian CEOs from CII said describing its maiden budget as visionary. The delegation of Indian CEOs from Confederation of Indian Industry in an interaction with the Washington audience at Carnegie Endowment for International Peace yesterday highlighted the growing sense of optimism amongst both the public and industry in India following the recent election results which brought BJP to power with a landslide majority.

Ajay Shriram, CII President described the unique nature of the recent elections, in which the BJP came to power solely on the campaign promise of growth and development, which speaks to the aspirations of India's young people. Describing the 2014-15 annual budget as visionary, Shriram commended the new government for moving very actively to ease and facilitate the way business is done in India. "Success in India will come with leadership, mindset change, philosophy and action," he said. In his remarks, Chandrajit Banerjee, Director General, CII also appreciated the government's vision and receptivity to new ideas and thoughts, especially from industry.

Also Read India refuses to endorse trade facilitation deal in WTO

Naushad Forbes, vice president, CII and director, Forbes Marshall Pvt Ltd focused on the promising steps being taken in India's education sector and the increasing role of the market in this sector which is having a net positive impact on issues related to quality and equity of access. He also specifically mentioned the community college model in the US as one worth looking at in India as well. Vikram Kirloskar, vice chairman, Toyota Kirloskar Motor, highlighted the importance of the manufacturing sector and pointed out that the role of industry in this sector related to enhancing quality, competitiveness and innovation.

Rajan Navani, chairman, CII National Committee on India@75 and managing director, Jetline Group of Companies  spoke about the need for India to channelize the power of India' youth through skilling and leadership development. He also spoke of the use of technology as a major potential game changer in India. The wide ranging discussion that followed came at a critical time in India's engagement with the US, with the resumption of several stalled bilateral dialogues , beginning with the US-India Strategic Dialogue in Delhi next week.

21.03 | 0 komentar | Read More

Rel Power submits information on Sasan expansion to EAC

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power  has submitted additional information on expansion of coal mining for its Sasan power project in Madhya Pradesh for obtaining environment clearance.

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power has submitted the requisite information sought by EAC, a source said.

EAC had sought additional information by July 2. A company source confirmed that the additional information sought by EAC has been submitted within the deadline by Reliance Power.

Also read: Reliance Power consolidated Mar '14 sales at Rs 1,358.66 crore

The proposal was for expansion of production capacity at Moher coal mine from 12 million tonnes per annum (MTPA) to 15 MTPA and that at Moher Amlori mine from 16 MTPA to 20 MTPA to feed the ultra-mega Sasan power project.

The EAC "after detailed deliberations, sought information for further consideration of the project," minutes of the June 27 meeting stated.

It asked Reliance Power to submit details of land use pattern covering total project area; total mining lease area; total forest land; total forest clearance obtained and balance forest clearance awaited in a tabulated form.

Reliance Power had in September 2012 started mining for coal for the 4,000 MW Sasan project.

Reliance Power stock price

On July 25, 2014, Reliance Power closed at Rs 90.85, down Rs 3.65, or 3.86 percent. The 52-week high of the share was Rs 112.35 and the 52-week low was Rs 60.10.

The company's trailing 12-month (TTM) EPS was at Rs 0.07 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 1297.86. The latest book value of the company is Rs 60.18 per share. At current value, the price-to-book value of the company is 1.51.

21.03 | 0 komentar | Read More

Will TVS be able to hold on to Bajaj lead?

Moneycontrol Bureau

As June sales numbers trudged out, it emerged that  TVS Motor had overtaken Bajaj Auto as India's third-largest domestic two-wheeler maker.

Between April and June, TVS sold 5.1 lakh units domestic sales while Bajaj's local sales stood at 4.8 lakh. TVS' sales growth was driven by the success of its Jupiter scooter and Star City + motorcycle.

That TVS dislodged Bajaj from the third spot came as a bit of a surprise to some analysts while others attributed the development to TVS' diverse product portfolio as well as Bajaj's decision to not re-enter the fast-selling scooter segment.

TVS' presence in the motorcycle, scooters, mopeds and three-wheelers has worked well for it while Bajaj has focused on its Discover commuter and the aging Pulsar premium motorcycle.

But first-quarter results were a disappointment for TVS, with profitability taking a hit due to high raw-material costs, leading some analysts to wonder if the company will ever break out of its traditional mid-single digit operating margins. Bajaj, on the other hand, enjoys operating profits of around 20 percent helped by its lucrative exports business, which contributes 40 percent of the company's sales.

Bajaj is not taking things lying down: the company attributes the failure of the Discover model and is readying to give a focused push to the brand.

It is now launching a 150cc version of the Discover, which currently comes in a 125cc and 100cc version.

In an interview with DNA , S Ravikumar, a president with Bajaj, said he hopes the Discover 150 would bring Bajaj's market share back to traditional 24 percent mark (from 20 percent currently) by the January-March 2015 quarter.

But some analysts have wondered if the Discover 150 would eat into the Pulsar's sales.

TVS, too, is geared up for battle. "The company plans to launch a new product in the fastest-growing scooter segment in the first half of FY15 along with a motorcycle, followed by two more products in the second half," Anand Rathi said in a report .

"TVS targets to stick to its aggressive launch program, which should aid volume growth going forward."

The brokerage forecasts sales for TVS to grow from Rs 7,972 crore in FY14 to Rs 9,484 crore in FY15 and Rs 10,753 crore in FY16, a compounded growth of over 16 percent.

However, another subtext within the battle for the third spot could also be that Bajaj is in the market share game and is more focused on maintaining its industry-leading profit margins.

"Bajaj's strategy is to dominate multiple markets in one category, whereas that of our domestic rivals appears to be to dominate one country - India - in multiple categories," Rajiv Bajaj told the Economic Times recently. "As a global company with a huge exports base, we are primarily the No. 1 by far in terms of profitability."

TVS Motor stock price

On July 23, 2014, TVS Motor Company closed at Rs 169.45, up Rs 1.40, or 0.83 percent. The 52-week high of the share was Rs 176.50 and the 52-week low was Rs 28.10.

The company's trailing 12-month (TTM) EPS was at Rs 5.51 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 30.75. The latest book value of the company is Rs 29.79 per share. At current value, the price-to-book value of the company is 5.69.

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Escorts ties-up with LT Finance for vehicle loan

Escorts has tied up with L&T Finance to provide loan for buying tractors. The company has inked a preferred financier agreement with L&T Finance to provide loans to tractor customers across the country.

Tractor maker Escorts  has tied up with L&T Finance  to provide loan for buying tractors. The company has inked a preferred financier agreement with L&T Finance to provide loans to tractor customers across the country, Escorts said in a statement.

"This partnership will be beneficial to tractor customers across India where L&T Finance has a network by making finance easily accessible," it added.

Commenting on the tie-up, Escorts Ltd Chief Sales & Marketing Officer Sameer Tandon said the partnership is a step in the right direction to ease the financing process for its customers. "L&T finance offers innovative products and services at affordable rates, with highly
competitive schemes for tractors, we are sure that dealers and customers both will get equally benefited through this tie-up," Tandon added.

L&T Finance COO G C Rangan said the tie-up would help people in buying their choice of tractor.

Escorts stock price

On July 25, 2014, Escorts closed at Rs 123.00, down Rs 4.85, or 3.79 percent. The 52-week high of the share was Rs 148.80 and the 52-week low was Rs 64.80.

The company's trailing 12-month (TTM) EPS was at Rs 14.63 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 8.41. The latest book value of the company is Rs 151.92 per share. At current value, the price-to-book value of the company is 0.81.

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Why Jaypee may be better off after Taqa sale call-off

With investor sentiment marking a stark improvement since the storming to power of the Narendra Modi-led BJP, Jaypee could now garner an even higher amount for the sale.

Moneycontrol Bureau

On Thursday, the  Jaiprakash Power announced that a deal between itself and a consortium led by Abu Dhabi National Energy Company (Taqa) for sale of two of Jaypee's hydropower plants stood cancelled.

The Rs 9,689-crore deal for the two plants based in Himachal Pradesh was announced in March was a vital link in the Jaypee Group's plans to bring down its massive Rs 56,000 crore debt burden (as of FY14).

"They (TAQA) have… stated that they have been constrained to take the said decision as a result of a change in the business strategy and priorities of the group," JP said in a statement to the stock exchanges Thursday. "We may add here that such withdrawal makes TAQA liable to payment of break fee in terms of the said acquisition agreement."

Also read: JP Power down 7%, TAQA annuls Rs 10500cr buyout transaction

While the break fee may not amount to much – a Mint report pegs it at Rs 54 crore – it could come as a blessing in disguise for the group, as it now stands a chance to get an even better deal.

The Taqa deal was announced in March, even economic conditions were not as upbeat as they are now and amid some nervousness over the impending general election.

With investor sentiment marking a stark improvement since the storming to power of the Narendra Modi-led BJP, Jaypee could now garner an even higher amount for the sale.

Unlike traditional coal-based thermal plants, which have been beset by fuel shortage and tariff issues in India, Jaypee's two hydro plants are functioning with strong operational parameters and power offtake agreements, Manish Aggarwal, a partner with KPMG, told Mint.

"I think the group will find buyers sooner or later for these assets," he added.

There are already reports Adani and JSW are in talks with the Jaypee Group to buy out its hydel business.

"In the past 8-10 weeks, several people have approached us for strategic discussions as India Inc is once again feeling upbeat about an economic turnaround," Jaypee Group chairman Manoj Gaur told the Economic Times.

"We are working on a plan B, which we shall announce in the coming days."

Gaur had earlier reiterated Taqa's cancellation will not have any impact on the group's plans to pare debt, which he hopes to bring down to Rs 45,000 crore by the end of the year.

Jaiprakash Pow stock price

On July 25, 2014, Jaiprakash Power Ventures closed at Rs 18.95, down Rs 0.25, or 1.3 percent. The 52-week high of the share was Rs 26.63 and the 52-week low was Rs 8.55.

The company's trailing 12-month (TTM) EPS was at Rs 0.07 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 270.71. The latest book value of the company is Rs 22.00 per share. At current value, the price-to-book value of the company is 0.86.

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ICICI Bank to raise Rs 500 cr in bonds: Sources

The bond sale comes on the heels of the Reserve Bank of India's announcement last week allowing bonds sold by lenders to be exempt from mandatory reserve requirements if the proceeds are lent to the infrastructure sector.

ICICI Bank  is expected to raise at least Rs 500 crore (USD 83.24 million) via 10-year bonds intended towards infrastructure lending at a semi-annual coupon of 9.15 percent, two sources said on Friday.

The deal could be expanded via a greenshoe option, the two sources said.

The bond sale comes on the heels of the Reserve Bank of India's announcement last week allowing bonds sold by lenders to be exempt from mandatory reserve requirements if the proceeds are lent to the infrastructure sector.

ICICI Bank stock price

On July 25, 2014, ICICI Bank closed at Rs 1475.90, down Rs 29.35, or 1.95 percent. The 52-week high of the share was Rs 1590.35 and the 52-week low was Rs 758.80.

The company's trailing 12-month (TTM) EPS was at Rs 84.83 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 17.4. The latest book value of the company is Rs 633.00 per share. At current value, the price-to-book value of the company is 2.33.

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Confident this will be a year of robust growth: Firstsource

In an interview to CNBC-TV18's Reema Tendulkar and Nigel D'Souza, Sanjiv Goenka, Chairman,  Firstsource Solutions spoke about his plans and outlook for the company.  

Below is a verbatim transcript of the interview

Reema: Every quarter we look at it the earnings do look much better than they were in the previous quarter, so tell us how the outlook is looking for FY15. You had always indicated that after turning it around you would now like to consolidate before chasing growth. So in FY15 give us a ball park idea about how the revenues as well as the margins will be like?

A: Over the last few quarters margins for us have gone up by 3 percent, which is significant, and on a like-to-like basis, profits have actually gone up by 96 percent over last year. So that is a very significant jump forward. This year the board is yet to meet for a quarter result but we are very satisfied with the way the year is going. We are optimistic that this will be another year of robust growth and our focus has been on the bottom line and we do expect to see the bottom line growing forward very smartly.

Nigel: It has been growing very smartly in fact in the last year itself but could you take us through what is the guidance for this year in terms of constant currency revenue growth, are you expecting that five-six percent, are we on track?

A: We will have some revenue growth but as I said earlier my focus has been bottom line growth rather than revenue growth. We have had a few good wins on orders and that has been very encouraging. We have acquired a new logo in the US healthcare payer segment. We have acquired a couple of additional clients in UK but having said that we are also pruning down accounts which are loss making.

So, on a net basis, we will grow definitely. Last year revenues grew by 10 percent. We will grow this year as well but bottom line is what we are focusing on and we expect bottom lines to be very smartly up.

Nigel: Just looking at your bottom line growth in the last year was up 30 percent but in fact your revenues were up only around 10 percent but with regard to your debt are you comfortable with your debt levels. I believe it is a USD 120 million are you comfortable at that level, will that be part of boosting your profitability higher. Take us through those numbers?

A: As we speak debt stands at USD 114 million. It is already lower from March and we have paid off another USD 11 million in June and this year we expect to reduce debt totally by close to USD 45 million and debt-equity stands at 0.3:1 and we expect that to go down further.

Reema: You spoke about pruning down your loss making accounts, how many have been left, because you have been doing this exercise for the last few quarters, by when will all the loss making accounts that you have highlighted will be weeded out?

A: Very soon.

Reema: So in another quarter?

A: Maybe two.

Reema: So in two quarter all the loss making accounts will be out of the system?

A: We hope.

Reema: You spoke about that USD 45 million debt repayment this year and you have that quarterly payment of USD 11.25 million, can you tell us is there a chance or a scope to accelerate this debt repayment?

A: We would certainly be looking at accelerated repayments if we can. From our cash flow we certainly can. We are actually examining contracts with our contributors with the FCCB to see whether that is possible.

Firstsource Sol stock price

On July 23, 2014, Firstsource Solutions closed at Rs 39.00, down Rs 0.2, or 0.51 percent. The 52-week high of the share was Rs 41.90 and the 52-week low was Rs 11.02.

The company's trailing 12-month (TTM) EPS was at Rs 2.03 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 19.21. The latest book value of the company is Rs 20.89 per share. At current value, the price-to-book value of the company is 1.87.

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Mobile services mkt in India to be $19.2bn in 2014: Gartner

The number of mobile connections in India is expected to grow by 8 percent to touch 815 million this year, even as the market is expected to remain at almost the same level as last year - at USD 19.2 billion, research firm Gartner said.

The mobile user base is expected to grow to 815 million this year, from 755 million connections in 2013, it said. "The mobile market in India is going through a rough patch, where voice average revenue per user (ARPU) is falling very fast, and the increase in data ARPU is not able to fully compensate for the decline," Gartner Senior Research Analyst Neha Gupta said in a statement.

Also read: Mobile playing big role in rising internet base: MakeMyTrip  

She added that if the prevailing market conditions do not change in the Indian mobile market, India will account for 12 percent worldwide mobile connections. However, the country will account for just 2 percent of worldwide mobile services revenue, she said.

Gartner said one of the biggest challenges faced by Indian mobile operators is the growing appetite for over-the-top (OTT) voice services, driven by the explosion in personal connected devices like smartphones and tablets.

"Mobile broadband provides a substantial revenue opportunity in India on the back of low fixed line broadband penetration. Packing and selling mobile broadband in small and affordable chunks is critical to uptake," Gupta said.

Another area of opportunity, according to Gartner, is focusing on innovative mobile apps that help increase loyalty of the consumer.

"These could go beyond the popular category of social and video apps to include utility apps like shopping apps. Apps that can provide high user-experience on low tech phones are likely to have higher traction than others," Gartner said. Operators that engage with popular content and service brands and bundle their apps and services with their data plans will drive consumer interest in mobile broadband, it
added.

As per the Telecom Regulatory Authority of India, there were 910.16 million mobile phones, and 938.34 telecom service (including landlines) users in India at the end of May 2014.

Active wireless subscribers on the date of Peak VLR in May, 2014 were 790.52 million, it added.

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JSW Energy close to buying Lanco's Udupi power plant

The deal, which is at advanced stages of negotiation, would involve JSW Energy taking over more than Rs 4,000 crore debt associated with the imported coal-fired Udupi plant, they said.

JSW Energy  is close to acquiring Lanco Infratech 's 1,200 MW Udupi power plant in a deal worth nearly Rs 6,000 crore, industry sources said. The acquisition would help the Sajjan Jindal-led firm in realising its ambitious expansion plan of having 11,770 MW power generation capacity against 3,140 MW at present.

The deal, which is at advanced stages of negotiation, would involve JSW Energy taking over more than Rs 4,000 crore debt associated with the imported coal-fired Udupi plant, they said.

When contacted, a JSW Energy spokesperson said, "The company as a policy does not respond to speculative reports or market rumours."

Lanco Infrateach declined to comment. Faced with challenging business conditions, Lanco has been looking to sell some of its assets including Udupi plant. The diversified group has already started shedding some of its non-core assets. Among others, last year it sold some
wind energy assets in Tamil Nadu.

The 2X600 MW Udupi plant requires around four million tonnes imported coal a year and it uses sea water to meet the condenser cooling and other water requirements.

The power generated from Udupi Power Plant is evacuated through a dedicated 400 kV transmission line.

JSW Energy stock price

On July 23, 2014, JSW Energy closed at Rs 82.20, up Rs 1.25, or 1.54 percent. The 52-week high of the share was Rs 86.85 and the 52-week low was Rs 33.80.

The company's trailing 12-month (TTM) EPS was at Rs 3.67 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 22.4. The latest book value of the company is Rs 42.70 per share. At current value, the price-to-book value of the company is 1.93.

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Power projs worth Rs 36,000 cr stranded on coal shortages

Power projects worth over Rs 36,000 crore and having total generation capacity of 7,230 MW are stranded due to shortage of coal, the government said today.

Efforts are being made for supplying adequate coal to power projects, the government also said.  "As far as coal-based thermal power plants are concerned, a capacity of 7,230 MW is already commissioned but having no coal supply.

"Considering an indicative cost of Rs 5 crore per MW, an investment of about Rs 36,150 crore has been made in the execution of these projects," Minister of State for Power Piyush Goyal said in the Lok Sabha.

Also read: Goyal advises power producers to import 54MT of coal in '15  

The 7,230 MW capacity is spread across 12 projects. In a written reply, Goyal, who also holds the portfolios of Coal as well as New and Renewable Energy, said generation capacity of 42,480 MW commissioned after 2009 is presently entitled to only 65 percent of their Letter of Assurance (LoA) commitment.

With regard to gas-based capacity, about 5,349 MW is ready for commissioning and is awaiting gas allocation. "An installed and commissioned capacity of 24,149 MW is running at a very low average of 23 percent PLF (Plant Load Factor)," the Minister said.

To address the issue of coal shortages, the Power Ministry has initiated certain steps including issuance of advisory to import the fuel. As per the advisory, the cost of imported coal would be made a pass through on case to case basis by regulators to the extent of shortfall in the quantity indicated in the LoA or Fuel Supply Agreement (FSA).

In a separate reply, Goyal said the government is "making efforts to make adequate fuel available for power generation through coal companies". To another query, Goyal admitted that gas-based power
plants have been generating only 50 percent of their installed capacity during the last few years.

"The main reasons for low generation is insufficient gas availability from Krishna Godavari Dhirubhai-6 (KG D-6) basin. "Gas-based generating station can also run on Regasified Liquefied Natural Gas (RLNG). However, the imported cost of RLNG would render the final cost of power generated so high that it will be difficult to schedule the same for sale," the Minister said.

To increase gas availability for power plants, the Ministry of Petroleum and Natural Gas has taken various steps. The steps include issuing guidelines on "clubbing/diversion of gas between power plants of same owner with the intent to serve the largest public interest so that the available gas can be used more efficiently in order to improve the PLF with corresponding increase in electricity generation".
 

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Vedanta loan at floating rate of 3% plus LIBOR: Cairn

Cairn said the money has been lent on commercial terms.

Cairn India  has decided to extend its loan of about USD 1.2 billion for the period of 2 years to its parent Vedanta. This intra-corporate transaction has raised many eyebrows. Concerns are being raised over the utilization of cash and even on corporate governance.

Also Read: Cairn's $1.25bn loan to Vedanta: 3 key questions unanswered

Cairn has expressed that the money is being lent on commercial terms, however, in its first formal statement the company said that "they have entered into a facility of USD 1.2 billion with the 100 percent subsidiary of Sesa Sterlite  and of this USD 800 million has already been dispersed during the quarter".

Sources indicate the approval has come from the audit committee for this arrangement. But was shareholder approval taken? There has been no concrete answer to that. However, off the record, sources said that the company may not be required to take a nod, but legally how tenable it is needs to be ascertained.

The company in its statement said the entire facility is at arm's length. The loan has been extended for 2 years at floating rate of 3 percent plus LIBOR, which is the market rate. Cairn has a capex of USD 3 billion and that has been taken care of as the company has been generating cash of USD 1.5 billion every year, plus they have cash reserve of nearly USD 3 billion. Thus, there's no issue with respect to cash going out.

Cairn India stock price

On July 23, 2014, Cairn India closed at Rs 345.70, up Rs 2.20, or 0.64 percent. The 52-week high of the share was Rs 385.00 and the 52-week low was Rs 286.85.

The company's trailing 12-month (TTM) EPS was at Rs 39.77 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 8.69. The latest book value of the company is Rs 206.73 per share. At current value, the price-to-book value of the company is 1.67.

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Ranbaxy inks pact with Cipher to sell acne drug in Brazil

The licensing agreement extends Ranbaxy's current relationship with Cipher, under which it is marketing isotretinoin capsules in the US under the brand 'Absorica', Ranbaxy Laboratories said in a statement.

Drug major  Ranbaxy today said it has inked a licensing pact with Canada's Cipher Pharmaceuticals Inc to exclusively market its isotretinoin capsules, used to treat acne, in Brazil.

The licensing agreement extends Ranbaxy's current relationship with Cipher, under which it is marketing isotretinoin capsules in the US under the brand 'Absorica', Ranbaxy Laboratories said in a statement.

Isotretinoin is used in the treatment of severe recalcitrant nodular acne.

Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional pre-commercial milestone payments, it added. Further, Cipher will be supplying the product and Ranbaxy will be responsible for gaining regulatory approval of the product in Brazil.

"We are pleased to take this novel formulation of isotretinoin to the additional large market of Brazil...We will utilise our strong front-end capabilities in making this product available in Brazil," Ranbaxy Executive Vice President & Head, Global Strategy, Sanjeev I Dani said.

The company plans to promote the product through a brand dermatology division in Brazil.

"The isotretinoin formulation is expected to be a flagship product in Ranbaxy's dermatology franchise  in Brazil, once it achieves regulatory approval," it added.

The Ranbaxy scrip closed at Rs 561.30, up 0.12 per cent from its previous close, on the BSE.

Ranbaxy Labs stock price

On July 24, 2014, Ranbaxy Laboratories closed at Rs 561.30, up Rs 0.70, or 0.12 percent. The 52-week high of the share was Rs 569.95 and the 52-week low was Rs 253.95.

The latest book value of the company is Rs 25.87 per share. At current value, the price-to-book value of the company was 21.70.

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