Govt may exempt ONGC, OIL from paying subsidy in Q4

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

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

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

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

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

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

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

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

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

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

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

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

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

ONGC stock price

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

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

21.03 | 0 komentar | Read More

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

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

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

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

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

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

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

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

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

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

Jindal Steel stock price

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

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

21.03 | 0 komentar | Read More

Infosys to give 6.5 to 9% hike this year

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

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

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

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

The company spokesperson confirmed the news.

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

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

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

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

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

Infosys stock price

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

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

21.03 | 0 komentar | Read More

Air India improves its on-time performance

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

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

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

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

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

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

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

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

21.03 | 0 komentar | Read More

Fortis sells Singapore hospital for SGD 55 mn

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

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

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

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

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

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

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

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

Fortis Health stock price

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

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

21.03 | 0 komentar | Read More

Ford to triple exports from India with new $1 bn plant

Ford Motor Co plans to triple exports from India with a USD 1 billion plant that will be one of its most heavily automated in Asia, offsetting slower sales inside the country with a push to sell more local production abroad.

The factory, opened on Thursday in Gujarat, will nearly double Ford's production capacity in India to 610,000 engines and 440,000 vehicles a year. It will make engines and compact cars such as the EcoSport, a small SUV, and the Figo Aspire sedan.

"India is very cost competitive, which is important particularly for small vehicles," Ford Chief Executive Mark Fields told reporters at the factory opening in Sanand, outside Gujarat's biggest city, Ahmedabad.

He declined to say how quickly Ford would take exports to three times the current level.

Smaller cars are key to Ford's efforts to compete in Asia and particularly in India, where a growing urban population means compact models account for about one in every two passenger cars and utility vehicles sold.

Ford, like foreign rivals General Motors and Volkswagen, has struggled to ramp up sales in India, amid a sluggish recovery in the domestic market and tough competition from established Japanese automakers such as Maruti Suzuki and Honda Motor Co.

Maruti Suzuki dominates the small car segment in particular.

Ford sold 77,140 vehicles in India in 2014 down from 80,431 in 2013, while exports nearly doubled to 76,981 units over the same period. In comparison, market leader Maruti sold 81,564 passenger cars in December alone.

But the market, already the world's sixth largest, is tipped to grow rapidly. While sales rose just over 2 percent last year, industry experts expect that to accelerate to 6 to 8 percent in the fiscal year beginning April 1.

Ford expects Indian auto sales to more than double by 2020.

Fields said Ford would introduce three new cars in India over the next 12-18 months. He did not give more details.

MAKE IN INDIA

India's government under Prime Minister Narendra Modi has sought to encourage manufacturing in a drive to boost jobs in a country where a million people join the workforce every month.

The Ford plant, spread over 460 acres, will have an initial installed annual capacity of 240,000 vehicles and 270,000 engines.

"India is going to be attractive (as an export hub) because of the low cost base, and also the expectation that when the dollar strengthens it will be favourable for exporters," said Abdul Majeed, partner and auto expert at PriceWaterhouse India.

But Ford's "Make in India" drive comes with heavy automation, as it tries to hedge against a steep rise in labour costs that has hampered firms elsewhere in Asia. Ford employs 2,500 people in the Gujarat plant, twice the number in a similar sized plant in Chennai, in southern India.

"Over time in these emerging markets labour costs will go up," said David Scoch, president of Ford's Asia Pacific operations. "We have seen that in China."

21.04 | 0 komentar | Read More

Bajaj Auto launches Pulsar RS 200

Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market with a leadership market share of 43 percent making it India's no.1 sports bike for 14 years in a row.

Eyeing leadership in the Super Sports segment,  Bajaj Auto on Thursday launched the Pulsar RS 200 bike, priced at Rs 1,18,500 and Rs 1,30,268 for the non ABS and ABS versions respectively, ex-showroom Maharashtra.

The company said it plans to sell 2,500 units per month of Pulsar RS 200. "We have launched Pulsar RS 200 in the super-sport segment to offer an unprecedented level of design, engineering and performance.

"The non-ABS version is priced at Rs 1,18,500 and ABS version at Rs 130,268 ex-showroom Maharashtra. This is the first bike having Rs 1,00,000 plus price tag from the company," Bajaj Auto Motorcycle President Eric Vas told reporters.

"We are already market leaders by far in the sports segment and with the launch of Pulsar RS 200 look forward to gaining leadership in the Super Sports segment as well.

The company plans to sell 2,500 units of the Pulsar RS 200 per month and plan to start exports as well," Vas said Bajaj first brought the Pulsar to the Indian market in 2001.

Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market with a leadership market share of 43 percent making it India's no.1 sports bike for 14 years in a row.

"The Pulsar RS 200 has 4 valves spark DTSi engine with fuel injection and liquid cooling.

It unleashes 24.5 PS power and achieves a top speed of 141 km/hr and ....," Vas said. The super sports segment on Thursday stands at less than one percent of the motorcycle market and this bike is all set to re-define and expand this segment, Vas said.

Bajaj Auto stock price

On March 26, 2015, Bajaj Auto closed at Rs 2001.75, down Rs 16.1, or 0.8 percent. The 52-week high of the share was Rs 2690.00 and the 52-week low was Rs 1900.00.

The company's trailing 12-month (TTM) EPS was at Rs 102.16 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 19.59. The latest book value of the company is Rs 332.04 per share. At current value, the price-to-book value of the company is 6.03.

21.04 | 0 komentar | Read More

Yearly load on telcos from auction to be Rs 5300 cr: Prasad

The spectrum auction that closed yesterday will fetch the government over Rs 1 lakh crore, including the upfront payment of nearly Rs 29,000 crore. However, not too much of this amount may come in before the end of this fiscal year.

The spectrum auction that closed yesterday will fetch the government over Rs 1 lakh crore, including the upfront payment of nearly Rs 29,000 crore. However, not too much of this amount may come in before the end of this fiscal year. Telecom Minister Ravi Shankar Prasad said the yearly load on telcos from the auctions will stand at around Rs 5,300 crore.

Watch Video for more.....

21.04 | 0 komentar | Read More

Gayatri Projects gains on winning Rs 175 cr road project

Reacting to the development, shares of the company opened at Rs 138, then jumped as much as 6.91 percent to touch an intraday high of Rs 150.

Shares of  Gayatri Projects on Thursday settled with gains of over 3 percent after the company announced winning of an order worth Rs 175 crore. In a regulatory filing the company on Thursday said it has bagged new order worth Rs 175.33 crore from Hyderabad Growth Corridor Ltd.

Reacting to the development, shares of the company opened at Rs 138, then jumped as much as 6.91 percent to touch an intraday high of Rs 150.

At the end of on Thursday's trading session the stock pared some gains and was quoted at Rs 145.30, up 3.56 percent on the BSE. Similar movement was witnessed on the National Stock Exchange, where the stock opened at Rs 135, then jumped 8.47 percent to a high of Rs 150.45. The stock settled at Rs 143, up 3.10 percent.

The BSE Sensex closed at 27,457.58 points with losses of 654.25 points or 2.33 percent. The order entails the construction of balance work of eight lane access controlled express way, as outer ring road to Hyderabad city in the stretch from Shamirpet to Keesara with loan assistance from Japan International Cooperation Agency (JICA).

Gayatri Project stock price

On March 26, 2015, Gayatri Projects closed at Rs 145.30, up Rs 5.00, or 3.56 percent. The 52-week high of the share was Rs 192.00 and the 52-week low was Rs 50.50.

The company's trailing 12-month (TTM) EPS was at Rs 7.32 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 19.85. The latest book value of the company is Rs 220.32 per share. At current value, the price-to-book value of the company is 0.66.

21.04 | 0 komentar | Read More

SoftBank in talks to buy $1 bn stake in Micromax: Sources

A group of investors led by Japanese mobile telecom firm SoftBank Corp is in talks to buy a 20 percent stake in Indian handset maker Micromax Informatics for up to USD 1 billion, two people aware of the discussions said.

A group of investors led by Japanese mobile telecom firm SoftBank Corp is in talks to buy a 20 percent stake in Indian handset maker Micromax Informatics for up to USD 1 billion, two people aware of the discussions said.

The investment would value Micromax, an unlisted provider of affordable smartphones that competes with South Korea's Samsung Electronics Co, at around USD 5 billion, the people said. They did not want to be named because the talks aren't public.

One of the people said a deal would likely involve the sale of some 20 percent of Micromax by existing investors, raising USD 800 million to USD 1 billion. Micromax, controlled by its founders, counts private equity firms Sequoia Capital and TA Associates among its investors.

Micromax entered the Indian mobile handset market in 2008 and is credited with fuelling the rise of smartphones in the country. In February, research firm Canalys said Micromax overtook Samsung in the fourth quarter as the leading supplier in India's booming smartphone market, though Samsung later challenged the finding.

Micromax declined to comment. A SoftBank spokesman in Tokyo declined to comment.

21.04 | 0 komentar | Read More