MUMBAI: Reliance Industries’ (RIL) net profit is down by 6.4 per cent in the second quarter of 2009-10 at Rs. 3,852 crore against Rs. 4,116 crore in the same period of the previous fiscal. For the half-year ended September 30, 2009, it was Rs. 7,518 crore against Rs. 8,220 crore in the year-ago period, a drop of 8.5 per cent.
The turnover for the half-year declined by 8.7 per cent to Rs. 81,284 crore and exports by 26 per cent to Rs. 43,035 crore while the profit before depreciation, interest and tax, increased by 15 per cent to Rs. 14,939 crore. The profit before tax declined marginally by 1.2 per cent to Rs. 9,706 crore. Cash profit increased by 7.3 per cent to Rs. 12,425 crore.
“The timely completion of the new SEZ refinery and the deep-water, oil and gas KG-D6 block and their safe and stable ramp up are noteworthy accomplishment for the company.
These projects have contributed meaningfully in RIL achieving a record level of profits despite the challenging business and economic environment. These projects will make a significant contribution in shaping the earnings of RIL and also play a vital role in changing the energy landscape in India,” said Mukesh D. Ambani, Chairman and Managing Director, while commenting on the results.
“Decline in prices accounted for 45.2 per cent reduction in revenue partially offset by higher volumes which accounted for 36.5 per cent growth in revenue,” RIL said in a release.
The operating profit before other income and depreciation increased by 7.9 per cent from Rs. 12,608 crore to Rs. 13,601 crore.
Net operating margin was higher at 17.4 per cent as compared to 14.6 per cent in the corresponding period of the previous year due to incremental share of oil and gas business, stronger petrochemical margins, base effect of lower turnover partially offset by softer margin environment in refining.
Other income was Rs. 1,337 crore against Rs. 377 crore due to higher interest income on account of higher cash and cash equivalents. Depreciation was higher by 77.7 per cent at Rs. 4,310 crore against Rs. 2,426 crore primarily on account of higher depreciation in oil and gas and refining and marketing business segments.
Friday, October 30, 2009
Thursday, October 29, 2009
US to pay Taliban members to switch sides
US President Barack Obama has signed a $680 billion defence appropriations bill with one provision giving commanders the ability to pay
Taliban members to switch sides, but some experts feel the programme may buy only temporary loyalty.
The payments to Taliban would be made under a Taliban reintegration provision under the Commander's Emergency Response Programme (CERP), which is now receiving $1.3 billion in the bill pay for military operations in the 2010 fiscal year, signed by Obama on Wednesday.
CERP funding is also intended for humanitarian relief and reconstruction projects at commanders' discretion.
The buyout idea, according to Senator Carl Levin, chairman of the Senate Armed Services Committee, is to separate local Taliban from their leaders, replicating a programme used to neutralise the insurgency against Americans in Iraq.
Taliban members to switch sides, but some experts feel the programme may buy only temporary loyalty.
The payments to Taliban would be made under a Taliban reintegration provision under the Commander's Emergency Response Programme (CERP), which is now receiving $1.3 billion in the bill pay for military operations in the 2010 fiscal year, signed by Obama on Wednesday.
CERP funding is also intended for humanitarian relief and reconstruction projects at commanders' discretion.
The buyout idea, according to Senator Carl Levin, chairman of the Senate Armed Services Committee, is to separate local Taliban from their leaders, replicating a programme used to neutralise the insurgency against Americans in Iraq.
Wednesday, October 28, 2009
HCL Technologies says profit falls on forex loss
Indian software services firm HCL Technologies Ltd. said quarterly profit fell 12.3 per cent as foreign exchange losses dented rebounding revenues from the U.S. and from media and financial services clients.
"Though there are signs of an early recovery in sectors like financial services, we continue to be cautious," chairman Shiv Nadar said in a statement on Wednesday. "We continue to see sustained recovery only by next year."
HCL's profit, however, beat expectations with earnings of 3.2 billion rupees ($66.5 million)in the July-September quarter under U.S. accounting standards _ $9.3 million, or 12.3 per cent, less in dollar terms than the same period last year. Revenue was 30.31 billion rupees ($630.1 million) a 25.8 per cent increase in dollar terms over the year-earlier period.
The company said its foreign exchange losses were $31 million for the quarter, up from $17 million the same quarter last year. Revenue from infrastructure services, and from media, retail, and financial services clients showed the most sequential growth. Revenue from manufacturers slid 8.3 per cent in constant currency terms from the prior quarter, while revenue from public sector energy and utility companies slumped 7.3 per cent in constant currency from the prior quarter.
"Though there are signs of an early recovery in sectors like financial services, we continue to be cautious," chairman Shiv Nadar said in a statement on Wednesday. "We continue to see sustained recovery only by next year."
HCL's profit, however, beat expectations with earnings of 3.2 billion rupees ($66.5 million)in the July-September quarter under U.S. accounting standards _ $9.3 million, or 12.3 per cent, less in dollar terms than the same period last year. Revenue was 30.31 billion rupees ($630.1 million) a 25.8 per cent increase in dollar terms over the year-earlier period.
The company said its foreign exchange losses were $31 million for the quarter, up from $17 million the same quarter last year. Revenue from infrastructure services, and from media, retail, and financial services clients showed the most sequential growth. Revenue from manufacturers slid 8.3 per cent in constant currency terms from the prior quarter, while revenue from public sector energy and utility companies slumped 7.3 per cent in constant currency from the prior quarter.
Tuesday, October 27, 2009
Sun TV ties up with Endemol
Sun TV Network Ltd (Sun TV), owned by Kalanithi Maran, is looking at foreign partners to produce non-fiction contents. The company on Tuesday joined hands with Dutch firm Endemol to launch a television game show.
This tie-up would be the first step towards more international joint ventures. The international partner will bring his production expertise and will work on licensing model,” said Sun TV chief operating officer Ajay Vidyasagar.
Sun has a market share of 30-32 per cent in the weekend viewership category and is planning to increase it by 12-15 per cent over the next six months by offering new contents.
This tie-up would be the first step towards more international joint ventures. The international partner will bring his production expertise and will work on licensing model,” said Sun TV chief operating officer Ajay Vidyasagar.
Sun has a market share of 30-32 per cent in the weekend viewership category and is planning to increase it by 12-15 per cent over the next six months by offering new contents.
U'khand power privatisation on cards
The government-run Uttarakhand Power Corporation Limited (UPCL), the sole power distributor in the state, has proposed privatisation of distribution at Roorkee in Haridwar district and Rudrapur in Udham Singh Nagar district where transmission and distribution (T and D) losses and power thefts are heavy. The move is being seen as part of the power reforms programme in the state.
Under the proposal, the process of distribution of power in the two towns would be handed over to private players, an official said. “Yes, we have received a proposal and it is under consideration,” the official added.
The government wants to make a detailed study of some of the cities like Agra and Kanpur where the UP government had recently handed over the power distribution to Torrent Power company, which is also modernising the power distribution system there.
“We are not in hurry and we will study all the implications before taking a final decision,” the official added.
According to the government statistics, AT&C losses in Uttarakhand are at 30-33 per cent, mainly in the plains.
These losses are mostly in Haridwar and Udham Singh Nagar districts where the two towns are located.
Under the proposal, the process of distribution of power in the two towns would be handed over to private players, an official said. “Yes, we have received a proposal and it is under consideration,” the official added.
The government wants to make a detailed study of some of the cities like Agra and Kanpur where the UP government had recently handed over the power distribution to Torrent Power company, which is also modernising the power distribution system there.
“We are not in hurry and we will study all the implications before taking a final decision,” the official added.
According to the government statistics, AT&C losses in Uttarakhand are at 30-33 per cent, mainly in the plains.
These losses are mostly in Haridwar and Udham Singh Nagar districts where the two towns are located.
Sandero rings a Santro bell in Hyundai
Hyundai Motor India has taken Mahindra Renault to the Delhi High Court, objecting to the latter's plan to launch a compact car in the country with the name ‘Sandero’, alleging the rival was trying to cash in on its popular Santro brand with a similar sounding product.
They (Mahindra Renault) are planning to launch Sandero, which is very similar sounding to our Santro. Both are hatchbacks and Santro is an established trademark and they are trying to get mileage out of it,” a senior Hyundai Motor India (HMIL) official said. HMIL's plea requests the court not to allow Mahindra Renault to launch the car under the name Sandero, he added.
In a press release, Mahindra Renault CEO Nalin Mehta said, “We have filed a reply requesting the honourable court for removal of Mahindra Renault’s name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. Mahindra Renault has never used or promoted the brand. The Sandero brand belongs to Renault and we have no locus standi on the brand. Our appeal with request stated above is filed with the court and awaits hearing.
Renault has other alliances with Bajaj Auto for a small car project and Ashok Leyland through Nissan for light commercial vehicles in India.
They (Mahindra Renault) are planning to launch Sandero, which is very similar sounding to our Santro. Both are hatchbacks and Santro is an established trademark and they are trying to get mileage out of it,” a senior Hyundai Motor India (HMIL) official said. HMIL's plea requests the court not to allow Mahindra Renault to launch the car under the name Sandero, he added.
In a press release, Mahindra Renault CEO Nalin Mehta said, “We have filed a reply requesting the honourable court for removal of Mahindra Renault’s name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. Mahindra Renault has never used or promoted the brand. The Sandero brand belongs to Renault and we have no locus standi on the brand. Our appeal with request stated above is filed with the court and awaits hearing.
Renault has other alliances with Bajaj Auto for a small car project and Ashok Leyland through Nissan for light commercial vehicles in India.
Mahindra Satyam working on merger proposal
Mahindra Satyam is working on proposals to position itself as an information and communication technology (ICT) company as against its present profile as an IT company to pave for its merger with Tech Mahindra.
C. P. Gurnani, Chief Executive Officer, Mahindra Satyam, explained to journalists in an informal interaction here on Monday that the Mahindras were likely to go ahead with the plan after restatement of the financials. “We need a change of positioning as an ICT company because of our strong linkage with Tech Mahindra by bringing in connectivity and communication”, Mr. Gurnani said with the rider that approvals had to be obtained from the annual meetings and other statutory bodies.
Describing Mahindra Satyam’s journey so far as a mix of ‘good and bad’, he said the top priority was to restore the confidence of employees, clients and the shareholders. He said more than 100 out of 500 customers left Satyam after the scam broke out in January this year but the company did not lose any money on account of the desertion.
C. P. Gurnani, Chief Executive Officer, Mahindra Satyam, explained to journalists in an informal interaction here on Monday that the Mahindras were likely to go ahead with the plan after restatement of the financials. “We need a change of positioning as an ICT company because of our strong linkage with Tech Mahindra by bringing in connectivity and communication”, Mr. Gurnani said with the rider that approvals had to be obtained from the annual meetings and other statutory bodies.
Describing Mahindra Satyam’s journey so far as a mix of ‘good and bad’, he said the top priority was to restore the confidence of employees, clients and the shareholders. He said more than 100 out of 500 customers left Satyam after the scam broke out in January this year but the company did not lose any money on account of the desertion.
Monday, October 26, 2009
Fake currency recovered from RBI office
Counterfeit currency with a face value of around Rs.1 lakh was recovered from the Reserve Bank of India office here, police sources said on Wednesday.
A case was registered recently after a senior official of the RBI approached police complaining that 296 fake notes of various denominations were detected last month, the sources said.
It is suspected that some banks have “unknowingly” submitted the notes to the RBI, the sources said, adding that the notes have been sent for examination to the Bank Note Press in Madhya Pradesh.
A case was registered recently after a senior official of the RBI approached police complaining that 296 fake notes of various denominations were detected last month, the sources said.
It is suspected that some banks have “unknowingly” submitted the notes to the RBI, the sources said, adding that the notes have been sent for examination to the Bank Note Press in Madhya Pradesh.
Tuesday, October 13, 2009
China spinning out Indian tyre exports
Mumbai, Oct. 13 Tyre exports this year are heading towards negative territory largely due to the increasing competition from Chinese manufacturers in the traditional markets of Indian tyre makers.
Tyre exports, which clocked a total turnover of Rs 3,000 crore last fiscal, are set to fall by 10-12 per cent, according to Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers’ Association (ATMA).
“What is happening is the traditional export markets for Indian companies have been overcrowded by Chinese tyres. The international market is becoming increasingly challenging for Indian tyre companies,” he told Business Line.
Late last month, the US imposed a 35 per cent tariff on Chinese tyres to protect the American tyre industry. With the US markets (China’s third largest export destination) turning unfavourable, Chinese manufacturers would be more aggressive targeting other markets.
Well before the US’ impost, Chinese tyre exporters unleashed a price offensive against Indian companies in their traditional markets such as West Asia, Latin America and South-East Asia, according to industry representatives. As a result, from April to July, India exported 15.88 lakh tyres against 20.42 lakh previously, a decline of 22 per cent.
Another reason attributed to the fall is the slowdown in the global automotive industry.
“Since the industry is going through a downturn, the size of the pie for tyre makers remains the same or is shrinking,” Mr Budhraja said.
Tyre importers and distributors cut down their volume of business in many markets as the cost of finance has gone up, he said. More importantly, each country is trying to help domestic manufacturers. For example, the import restriction on Chinese tyres by the US has not been seen by the Indian companies as an advantage for them. “Exports cannot be ramped up all of a sudden as they are governed by long-term contracts. In addition, the first advantage goes to US domestic tyre companies,” he said.
The Government, under the new Foreign Trade Policy, has granted additional concessions for tyre exports to countries included in the ‘Focussed Market Scheme’. As many as 26 markets are added in the list. “We welcome it, but it is a bit late and it would take time to reflect in the market,” Mr Budhraja said.
Tyre exports, which clocked a total turnover of Rs 3,000 crore last fiscal, are set to fall by 10-12 per cent, according to Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers’ Association (ATMA).
“What is happening is the traditional export markets for Indian companies have been overcrowded by Chinese tyres. The international market is becoming increasingly challenging for Indian tyre companies,” he told Business Line.
Late last month, the US imposed a 35 per cent tariff on Chinese tyres to protect the American tyre industry. With the US markets (China’s third largest export destination) turning unfavourable, Chinese manufacturers would be more aggressive targeting other markets.
Well before the US’ impost, Chinese tyre exporters unleashed a price offensive against Indian companies in their traditional markets such as West Asia, Latin America and South-East Asia, according to industry representatives. As a result, from April to July, India exported 15.88 lakh tyres against 20.42 lakh previously, a decline of 22 per cent.
Another reason attributed to the fall is the slowdown in the global automotive industry.
“Since the industry is going through a downturn, the size of the pie for tyre makers remains the same or is shrinking,” Mr Budhraja said.
Tyre importers and distributors cut down their volume of business in many markets as the cost of finance has gone up, he said. More importantly, each country is trying to help domestic manufacturers. For example, the import restriction on Chinese tyres by the US has not been seen by the Indian companies as an advantage for them. “Exports cannot be ramped up all of a sudden as they are governed by long-term contracts. In addition, the first advantage goes to US domestic tyre companies,” he said.
The Government, under the new Foreign Trade Policy, has granted additional concessions for tyre exports to countries included in the ‘Focussed Market Scheme’. As many as 26 markets are added in the list. “We welcome it, but it is a bit late and it would take time to reflect in the market,” Mr Budhraja said.
Monday, October 12, 2009
Aditya Birla Groupl: Cementing business
The Aditya Birla Group has initiated a restructuring exercise for its cement business; it plans to demerge the cement business of Grasim and merge it in two phases with the Rs 6,383-crore UltraTech. The merger will create India’s biggest cement producer with a capacity of close to 50 million tonnes and a pan-India presence. Cement accounted for 63 per cent of Grasim’s revenues of Rs 18,400 crore last year and analysts estimate the combined entity should generate an operating profit of Rs 4,500-5,000 crore in 2009-10. At the end of the two-stage transaction, Grasim is expected to have a stake of 60 per cent in the new entity.
The size of the new company, in itself, would allow it to tap the capital market more effectively to be able to add capacity as also pursue acquisitions. The merger would, therefore, help the Aditya Birla Group gain market share quickly; the idea is to add 25 million tonnes to capacity over five years. Analysts point out that there would be scope to leverage the equity or even raise equity to fund acquisitions, whether in India or overseas.
A pure cement company, they point out, would command better valuations from investors, especially a company of such a large size. Moreover, with all of the group’s cement assets now housed in one company, concerns that one company would grow at the expense of the other are done away with. So far, it’s mainly the cash flows of Grasim’s VSF business that have funded the build out in cement but now the cement business can grow independently.
The size of the new company, in itself, would allow it to tap the capital market more effectively to be able to add capacity as also pursue acquisitions. The merger would, therefore, help the Aditya Birla Group gain market share quickly; the idea is to add 25 million tonnes to capacity over five years. Analysts point out that there would be scope to leverage the equity or even raise equity to fund acquisitions, whether in India or overseas.
A pure cement company, they point out, would command better valuations from investors, especially a company of such a large size. Moreover, with all of the group’s cement assets now housed in one company, concerns that one company would grow at the expense of the other are done away with. So far, it’s mainly the cash flows of Grasim’s VSF business that have funded the build out in cement but now the cement business can grow independently.
Freedom of expression and religion important for US
Washington (PTI): The Obama Administration on Friday said freedom of expression and religion is important for the United States, but refrained from making any comment on the a US body putting India on "watch list" for religious intolerance.
"You know, freedom of expression and religious freedom we think are hallmarks of stable, progressive societies in the 21st century. It is obviously important to us," Assistant Secretary of State for Public Affairs P J Crowley said at the daily State Department press briefing.
Early this week, the US Commission for International Religious Freedom, an independent US body, put India under "watch list" for religious intolerance. India, a thriving secular democracy, has termed it as regrettable.
When asked what impression Secretary of State Hillary Clinton had during her visit to India last month, Crowley said: "I can't say to what degree it came up during the Secretary's conversations last month, but clearly this is an area which we think it obviously is across the globe a source of potential stability."
"You know, freedom of expression and religious freedom we think are hallmarks of stable, progressive societies in the 21st century. It is obviously important to us," Assistant Secretary of State for Public Affairs P J Crowley said at the daily State Department press briefing.
Early this week, the US Commission for International Religious Freedom, an independent US body, put India under "watch list" for religious intolerance. India, a thriving secular democracy, has termed it as regrettable.
When asked what impression Secretary of State Hillary Clinton had during her visit to India last month, Crowley said: "I can't say to what degree it came up during the Secretary's conversations last month, but clearly this is an area which we think it obviously is across the globe a source of potential stability."
South Indian Bank raises Rs 200 cr through bonds
Mumbai (PTI): Private sector lender South Indian Bank on Friday said it has raised Rs 200 crore from bonds to meet capital requirements.
The bank has raised Rs 200 crore by issuing unsecured redeemable non-convertible subordinated Tier-II bonds through private placement route, South Indian Bank said in a filing to the Bombay Stock Exchange.
The bonds have a maturity period of 128 months offering coupon rate of 9.75 per cent per annum, payable semi-annually and the bonds would be allotted on August 20, the filing added.
The bank has raised Rs 200 crore by issuing unsecured redeemable non-convertible subordinated Tier-II bonds through private placement route, South Indian Bank said in a filing to the Bombay Stock Exchange.
The bonds have a maturity period of 128 months offering coupon rate of 9.75 per cent per annum, payable semi-annually and the bonds would be allotted on August 20, the filing added.
Japan’s TV makers see the future in 3D
The technology works by rapidly alternating between left and right frames of the video. The right frame is seen only with the right eye and the left frame with the left eye, creating the illusion of depth.
Flat-panel television screens cannot get much flatter and consumers do not want the screens to get much wider, so Japanese television makers are banking on a whole new dimension to buttress their line-ups.
High-definition three-dimensional TV is the future, or so Panasonic and Sony hope, as they seek to stem a slide in prices and re-energise a market slowed by the global recession. The biggest problem the companies face, however, is staring them right in the face. Viewers will need to wear those goofy, ill-fitting glasses, just as they have to when watching 3-D movies in a theatre. Without them, the screen looks nauseatingly blurry.
Flat-panel television screens cannot get much flatter and consumers do not want the screens to get much wider, so Japanese television makers are banking on a whole new dimension to buttress their line-ups.
High-definition three-dimensional TV is the future, or so Panasonic and Sony hope, as they seek to stem a slide in prices and re-energise a market slowed by the global recession. The biggest problem the companies face, however, is staring them right in the face. Viewers will need to wear those goofy, ill-fitting glasses, just as they have to when watching 3-D movies in a theatre. Without them, the screen looks nauseatingly blurry.
Saturday, October 10, 2009
Govt may release 45 lakh tonnes of foodgrains in open market
New Delhi (PTI): The Centre may offload about 30 lakh tonnes of wheat and 15 lakh tonnes of rice out of its reserves in the open market to contain the rise in prices of foodgrains at a time when about one-fourth of the country is reeling under a ... More
India's lower rice production to dent world's output
New Delhi (PTI): The US has downsized world's rice production by 15 million tonnes following an estimated decline in output of an equal quantity of the grain in India possibly due to drought.In July the US Department of Agriculture (USDA) had ... More
Coffee consumption may grow by half million bags
New Delhi (PTI): The global slowdown has had no impact on the world's coffee drinking habit and consumption of the beverage is poised to grow by about half a million bags this year to 129 million bags compared to last year, according to a ... More...
India's lower rice production to dent world's output
New Delhi (PTI): The US has downsized world's rice production by 15 million tonnes following an estimated decline in output of an equal quantity of the grain in India possibly due to drought.In July the US Department of Agriculture (USDA) had ... More
Coffee consumption may grow by half million bags
New Delhi (PTI): The global slowdown has had no impact on the world's coffee drinking habit and consumption of the beverage is poised to grow by about half a million bags this year to 129 million bags compared to last year, according to a ... More...
LIC Housing Finance slashes home loan rates
Mumbai (PTI): Leading home loans provider, LIC Housing Finance, today cut interest rates for new loans by 0.5 per cent effective from August 1.With this, for customers opting for floating rate loans between Rs 30 lakhs and Rs 75 lakhs, the new ... More
Borrowing impedes monetary policy objective: RBI
Hyderabad (PTI): Reserve Bank Governor D Subbarao said on Friday making monetary policy independent of fiscal policy is an important reform measure for the country.Saying that coordination between monetary and fiscal policies has become a ... More
South Indian Bank raises Rs 200 cr through bonds
Mumbai (PTI): Private sector lender South Indian Bank on Friday said it has raised Rs 200 crore from bonds to meet capital requirements.The bank has raised Rs 200 crore by issuing unsecured redeemable non-convertible subordinated Tier-II bonds ...
Borrowing impedes monetary policy objective: RBI
Hyderabad (PTI): Reserve Bank Governor D Subbarao said on Friday making monetary policy independent of fiscal policy is an important reform measure for the country.Saying that coordination between monetary and fiscal policies has become a ... More
South Indian Bank raises Rs 200 cr through bonds
Mumbai (PTI): Private sector lender South Indian Bank on Friday said it has raised Rs 200 crore from bonds to meet capital requirements.The bank has raised Rs 200 crore by issuing unsecured redeemable non-convertible subordinated Tier-II bonds ...
Tuesday, October 6, 2009
GAIL to study uniform gas pricing proposal
Amidst call for an uniform pricing of natural gas prevalent in the country.GAIL india has begun hiring consultants for conducting a study on the topic.The fertiliser sector which will move to a new nutrient - based subsidy system has asked for uniform pricing of natural gas.The current gas prices in the country range from $1.8 to cover $6 per mBtu,which means cost of production for gas consumers varies according to the source of gas.
BSA Motars unveils 5 models
Murugappa group company tube investment of india's strategic business unit bsa motars on tuesday unviled five models of its electric scooter in new delhi priced at Rs.19,450-27,200.The model engine capacity is between 250 watts and 800 watts. The initial market responce for our product has been posative in the southern region and by the extending sales and services network into Delhi we hope to grow rapidly.
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