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| Thursday, July 12, 2001, Chandigarh, India   
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Govt to earn 1,300 cr from 4th cellular slot
Wipro issues profit warning PROSPECTS
OF INDO-PAK TRADE-III
Musharraf’s okay, but what about business? |
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Satyam net profit rockets 141 pc Montek panel report
to be implemented
MSP for pulse among CCEA decisions GDP growth rate to
turn around: Sinha IFC-SBI currency swap agreement
Hughes Q1 net up 101 pc
Pressplay, Microsoft near distribution deal
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Govt to earn 1,300 cr from 4th cellular slot New Delhi, July 11 Bharti Cellular quoted around a total of Rs 720 crore for 11 circles. It quoted the highest in eight circles. It bid Rs 203.65 crore for Mumbai, Rs 77.85 crore each for Kolkata and Tamil Nadu, Rs 102.56 crore for Gujarat, Rs 21.45 crore for Haryana and Rs 40.53 crore for Kerala. Bharti was followed by the Reliance group’s Reliable Internet which bid Rs 515 crore for 15 licences. Reliable Internet quoted
highest at Rs 90 crore for the Delhi circle. Its bid for Mumbai was Rs 90 crore. Barakhamba Sales and Services, a consortium of Hong Kong’s Hutchison Telecom and India’s Essar group bid Rs 474 crore for seven licences while Birla AT and T Communications bid for Rs 122 crore for three licences. Escorts Telecommunications bid Rs 292 crore for eight licences. The government hopes to award the licences by the end of August after a lengthy process which involves three rounds of financial bidding. The highest bid in this round of financial bidding will be the reserve price for the second round. |
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Wipro issues profit warning
New Delhi, July 11 “Nearly 64 per cent of revenues of global IT services come from the USA. During the slowdown our clients in the USA may reduce their IT spending significantly, which may, in turn, lower the demand for our services and affect our profitability,” Wipro said in its Annual Report for 2000-01. “Though we continue to believe that during economic slowdown our competitive position would strengthen vis-a-vis domestic service providers in the USA, we have intensified our efforts to geographically diversify our revenue streams”. During the year under review, Wipro increased its dependence on global IT services to 34 per cent of the company’s total turnover against 28 per cent in the previous fiscal. Also, its exposure to the consumer care and lighting business decreased during last fiscal. “Realising that global economic conditions are not always going to be conducive, we have spread our markets so that we are not excessively dependent on a single geography, diversified our revenue streams, increased business from existing customers and improved quality of our client profile,” Chairman and Managing Director Azim Premji said. The other two broad business classifications of Indian IT services and consumer care and lighting accounted for 9.5 per cent and 14 per cent, respectively. Among other factors which could affect its profitablity are difficulty in predicting revenues due to exposure to widely fluctuating global markets, intense competition in the IT services market, dependence on small number of clients (specially in global operations) and failure to complete fixed-time, fixed-price contracts. “The market for IT services is highly competitive. Our competitors include software companies, IT companies, large international accounting firms and their consulting affiliates Many of our competitors have significantly greater financial, technical and marketing resources and generate greater revenue than we do. We cannot be resonably certain that we will be able to compete successfully against such competitors or that we will not lose clients to them”.
PTI
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PROSPECTS
OF INDO-PAK TRADE-III Chandigarh, July 11 The exporters complain of the problem in transit which merits attention of the two sides to increase the trade. Sugar worth around Rs one crore which was meant to be exported to Pakistan is still lying in the godowns of the traders at Amritsar even after four months of the opening of the LCs. Thanks to the Indian Railways which have not been able to provide wagons to these traders even as almost four months have passed when Pakistan imposed the ban on import of sugar from India. Despite repeated requests to the railway authorities, we have been merely getting verbal assurances, says Mr Mukesh Kumar one of the traders. The sugar for export which is bought duty free can thus, not be sold in the domestic market. Not only that, a single route that is, railways for transportation and the insufficient and outmoded wagons that Pakistan too add to the woes of the exporters, says the Indo-Pak Exporters Association, based at Amritsar. “At times they (Pak) take months to download on the plea of non- availability of wagons. While perishable products are destroyed due to this, traders also face problems as they have send the consignments further too”, says Mr Om Prakash Arora, President of the Association. Emphasising on the urgency of opening up of land route the traders say, “it takes more than eight hours to send the consignments to Lahore, which would take less an an hour from here by land route and moreover, trains do not go daily”. Apart from proper transportation, other infrastructural facilities are also required. “Warehouses on either side of the border where trucks can download goods for export and the importing entry can reload them from exit points, should be made”, suggests FICCI. This would prevent losses which exporters have to bear due to delays. Re-opening of the Rajasthan Sind railway line would also help. Payment delays have become a routine. The payment is now done in dollars unlike earlier. “The clearance is to be received from Asian Clearing Unit head office at Kuala Lampur and it normally takes one to one and a half month we get our payment”, said an exporter. The traders say that direct payment in the forex branches of the banks would help conduct the smoothly. In a meeting with the Indian industrialists, the Pakistani industry representatives said the two sides may also consider to allow the establishment of LCs for imports and export in the local currency of each country. Main products that are sent via Amritsar include ginger, beetel leaves, red and green chillies (fresh and dried), tamarind, paan masasla, cycle parts, engineering goods and also books. Sugar was also exported in large quantities before Pak imposed a ban in March this year. Traders feel that an investment protection guarantee agreement would improve the confidence level of the business men thereby giving a boost to the trade. Traders have been complaining about Pakistan’s repeated decisions of banning imports of certain items. The traders opine that encouragement be given to trade of fresh vegetables. “We can send them at the earliest and at cheap rates”. The PFCCI has suggested the Indian businessmen to make arrangement with the Export Processing Zones in Pakistan to buy back finished products which may be manufactured in these zones through imports of raw material from India. For better utilisation of industrial capacity, reducing costs and sharing common research and development and technical know-how it was suggested that both the countries enter into an arrangement whereby some parts should only be made in Pakistan and some in India. There is also good scope for export of textile yarn and fabrics, leather and leather products, fruits and vegetable, electrical fans, water coolers, crude petroleum and marine products to India. Similarly, there is good potential for cooperation in the areas of engineering industry, Information technology, textiles, sugar, cement, chemicals, iron and steel, oil refining and ship building and engineering goods. A bilateral deal under which Pakistan can supply Liquefied Petroleum Gas (LPG) to India and in return import from India her surplus High-Speed Diesel (HSD) can help the two countries improve their economic condition. Both India and Pakistan should adopt a joint strategy to meet the challenges of globalisation and WTO so that both the countries can benefit by a common approach. The two nations can get together by sharing of Information and Technology that will help develop cooperation and result in prosperity in business. There is particularly more scope for exchange of knowledge and expertise to improve the per acre yield and quality and value-addition of cotton. Both sides should also develop a mechanism for quick transmission of Information and other developments in regard to trade and business. Industry representatives also say that politics need to be kept out of trade relations between the two countries. “The governments should rather let the business men do the business and we also need to constitute a trade promotion body for more balanced trade relations”, they say. |
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Musharraf’s okay, but what about business?
New Delhi, July 11 "Visit, what visit? Who's Musharraf?" asked an angry fruit juice-seller Satish Kumar, 35, whose shop neighbours the "Neharwali Haveli" in the bustling Daryaganj bazaar in the old quarters of Indian capital. The mansion is where Musharraf was born and lived for four years before his family moved to Pakistan in 1947. The three business families who own the once sprawling mansion have split it into small dark flats, shops and apartments. For weeks the Golas, Jains and Dhalls have hogged media attention as they prepared for the Musharraf visit on Saturday. But as the day nears and police flood the area questioning, probing and poking every nook and corner to prevent any security risk to the Pakistani leader, many in area are losing their initial enthusiasm. "All the attention is going to the three families of Mushrraf haveli. What do we get?" asked restaurant owner Gandharv Singh, 45. "Our shop has been here for 70 years. Now because a Pakistani is coming, I have to answer who my father was, how many people are there in my family. "The same policemen who until yesterday took food at my shop now search it as if it stores bombs. Why should I take this?" In the last few days, there is also a buzz that the hundreds of shops would be asked to close down for up to 24 hours to clear the area for Musharraf. And most businessmen are worried about the loss in business. "Closing down my shop means a loss of thousands of rupees. And Saturday is a holiday so I lose even more customers. This is ridiculous," said shoe shop owner Ram Prakash, 50. At the area's biggest cinema theatre, Golcha cinema, managerial assistant Murli Krishnan shrugged as he said: "What can we do? It is a government order. If they ask us to shut, we'll have too." But Krishnan wishes the visit hadn't come now. "We are showing 'Gadar,' the year's biggest hit and it runs house full even on weekdays. People are pouring in. We'll be losing between Rs. 50-60,000 even if we are shut for even two shows." Kapil Shewargmani at one of the biggest eateries in the area, "Mithas," is a bit more positive. "We'll have to shut down. We'll lose money but if it solves (the) Kashmir (dispute), so be it." Musharraf is expected to come to Daryaganj at around 3:00 p.m. on Saturday. He is expected to stay there up to 30 minutes during which he'll be served a sumptuous feast and given many presents by the
locals. IANS
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Satyam net profit rockets 141 pc
Hyderabad, July 11 The first quarter total income of Rs 421.02 crore ($ 89.79 million), was up 74.90 per cent as compared to the revenue of Rs 240.72 crore ($ 54.56 million) in the corresponding quarter of FY2001. For the first quarter, the net profit after tax was Rs 121.46 crore ($ 25.90 million) — an increase of 141.13 per cent over the net profit of Rs 50.37 crore ($ 42 million) in the corresponding period last year. The earning per share increased Rs 3.91 (on par value of Rs 2 per share) on an enhanced equity base (consequent to ADS issue), an increase of 118.44 per cent over the earnings per share of Rs 1.79 for the corresponding quarter of FY2001. B. Ramalinga Raju, Chairman, Satyam said the company expects income from software services for the FY 2002 to increase by about 40 per cent year on year.
UNI |
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Montek panel report
to be implemented Bangalore, July 11 “We are aware (of the job market slump) and are getting reports that industries are under pressure because of the globalisation impact. Traditional industries are under severe pressure”, he told reporters. In the changed scenario, new types of skills were needed, particularly in the services sector, as well as a new training system, for which the private sector was coming forward in a big way, he said. He said Ahluwalia had submitted a report on how to improve employment opportunities. “Now, we will study it and work in that direction”. Emphasising the need for improving skill-based capabilities, he said the issue would be part of the 10th Plan effort. The Second Labour Commission was expected to submit its report in October, he said adding the commission was looking at how to bring in a plethora of labour laws in one uniform legislation. He agreed with the industry in seeking changes in labour laws to make them pragmatic and flexible but stressed that “we have to balance the interest of workers with that of demands of employers”.
PTI |
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MSP for pulse among CCEA decisions New Delhi, July 11 The Union Minister and Cabinet spokesperson, Mr Pramod Mahajan, told newspersons after the meeting that the MSP for fair average quality of Masur of the 2000-2001 season to be marketed in 2001-2002 has been fixed at Rs 1200 per quintal. The production of pulses in the country has been stagnant for several years now and the decision to provide MSP for Masur would encourage farmers to diversify and cultivate such scarce crops, Mr Mahajan said. Masur as become the 25th item in the list of commodities for which MSP has been announced and NAFED would be the nodal agency, he said. The CCEA also dealt with the problems of the natural rubber sector and authorised the Commerce Department to issue a notification on the MSP from time to time under the Rubber Act. CCEA also accorded ex-post-facto approval for continuing with the procuring of rubber by STC with effect from October 2000 within a ceiling of 10,000 tonnes. It was also decided that the Cotton Ginning and Pressing sector be restored under the Technology Upgradation Fund Scheme with immediate effect. The sector was removed from TUFS in 1999 and consequently brought under Technology Mission on
Cotton. The scheme was not found attractive and the response from the industry for modernisation/setting up of larger units was poor. Under the TUFS scheme, 5 per cent interest reimbursement benefit is given. The industry finds this more attractive, Mr Mahajan said. With the restoration of the TUFS, Ginning and Pressing sector would still have an option to avail of benefits under the TUFS or TMC scheme but not both. In another decision, CCEA extended the Cotton Monopoly Procurement Scheme in Maharashtra till June 2006. The project is the first largest World Bank supported primary health care programme in India covering nearly ten million slum residents. Under the programme integrated family welfare and primary health care services are provided to the urban slum population. The CCEA also approved the revision of the project cost from Rs 420.01 crore to Rs 443.28 crore. The cost revision would help in full utilisation of the World Bank credit. Additional amount has become available under the project due to exchange rate variation. Another decision was the extension upto September 30, 2001 training facilities for skill upgradation under the Urban Self Employment Programme component of the Swarna Jayanti Shahari Rozgar Yojana. This decision has been taken for people who have been affected by the earthquake in Gujarat.
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GDP growth rate to
turn around: Sinha New Delhi, July 11 “I am quite sure we will be able to ride over the problem that we have in front of us. That things will improve, that the economy will turnaround and that tax realisation will go up”, Mr Sinha said while speaking at the 17th All-India Conference of Chief Commissioners and Directors-General of Income Tax. The Minister also took a dig at the industry for dissatisfactory revenue collections and said Indian corporates had a tendency to conceal the real income behind the “veil of perks”. “There is no way we can allow evasion of taxes through imaginary way of perks which corporates devise”, he said, adding that “ more transparency was needed in this respect and the government has already come out with guidelines relating to taxation of perks”. “The IMF and the World Bank had pointed out that the Indian economy will suffer a one percentage point in growth rates due to high prices of international crude oil”, he said. Pointing out that the Centre for Monitoring Indian Economy (CMIE) has projected a 6.3 per cent GDP growth in the current fiscal year, he, however, refused to hazard a guess himself about possible growth rates. Underlining the need for raising revenue and expanding the tax base, he said the government was aiming to doubling the number of personal tax assessees from the current level of 2.5 crore. “Basically, we are looking at a figure of Rs 60,000 crore to Rs 70,000 crore from personal income tax within three years, which will represent 1.5 per cent of GDP”. |
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IFC-SBI currency swap agreement New Delhi, July 11 According to the agreement, IFC would provide loans to Indian companies in local currency without their being exposed to forex risk. “The facility is expected to be particularly useful in IFC’s efforts to extend local currency financing for the
infrastructure as well as for the general manufacturing sector,” IFC Director (South Asia Department) Bernard Pasquier said in a statement here today. “With annual business volume of about $ 400 million, India has emerged as the largest recipient of IFC financing in the financial year ended 2001. IFC’s initiatives in local currency financing is expected to sustain further growth in the size and diversity of its business in India,” he said.
PTI |
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Hughes Q1 net up 101 pc Mumbai, July 11 The total sales for the period under review also grew by 77 per cent at Rs 63.4 crore as compared to Rs 35.8 crore for April-June 2000. “While the overall market continues to be difficult, we remain optimistic about meeting our historic growth targets”, Hughes Chairman Pradman Kaul said. The board has recommended a hike in investment limit for the foreign institutional investors from 24 per cent to 49 per cent, it said.
Exide net falls 48 pc Exide Industries has suffered a 48 per cent decline in the net profit to Rs 3.64 crore during the first quarter of 2001-02 over the corresponding period last year. The gross sales, however, increased by 11.6 per cent at Rs 219 crore during Q1 over the same period last year. The operating profit dipped by 8.5 per cent to Rs 30.3 crore, mainly due to a sharp increase in raw material cost, staff costs and other expenditure.
UTI Bank net soars UTI Bank has recorded a rise of 67.61 per cent in its net profit for the quarter ended June 30, 2001 at Rs 253.50 million as compared to Rs 160.90 million for the quarter ended June 30, 2000. Total income for the quarter ended June 30, 2001, is higher at Rs 3672.70 million as against Rs 1986.70 million for the quarter ended June 30, 2000, according to a release.
Nalco net profit rises Nalco has earned a higher net profit of Rs 43.95 crore dring June this year as against the target of Rs 34.62 crore. According to a communique issued here today, the profit before tax during this month was Rs 61.27 crore and gross profit was Rs 69.13 crore.
Kitply net jumps Kitply Industries Limited announced a net profit of Rs 5.6 million during the financial year ended March, 2001, which was 93.10 per cent higher over Rs 2.9 million in the previous fiscal.
Agencies |
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Pressplay, Microsoft near distribution deal Los Angeles, July 11 Microsoft, Vivendi Universal and Sony all declined to comment, although sources close to all three companies confirmed that negotiations — which have been continuing for months — had intensified and that an announcement was expected soon. According to a source familiar with the talks, pressplay is near a deal with Microsoft that is similar to a distribution deal with Yahoo Inc. That will enable its users to stream and eventually download music. Pressplay is expected to launch the music subscription joint venture later this summer.
Reuters
Compaq slashes 4,000 jobs San Francisco, July 11 The company said yesterday the move was necessary in the face of a downturn in the technology sector that is spreading across the world. “It is now clear that the economic slowdown is spreading overseas, and we will therefore move more swiftly and go even deeper in our structural cost reduction programmes,” the company said in a statement. The PC maker said it expected to reap $ 900 million in annual cost savings as a result of this year’s restructuring. Most layoffs will come from the company’s administrative and supply chain departments, the company stated.
AFP
Lloyds’ bid for Abbey blocked London “The merger will be against the public interest and should be prohibited,’’ Trade and Industry Secretary Patricia Hewitt said, reasoning that the two banks would have dominated current accounts and smothered competition for small business banking.
Reuters
BMW to get Formula 1 power Munich Currently no slouch — the M5 turns out 400 brake horsepower from a V8 — the new car, codenamed E60, will get a five-litre, 10 cylinder engine able to rev to a spine-tingling 9,000 rpm. M stands for motorsport at BMW.
DPA
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