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| Wednesday, September 27, 2000, Chandigarh, India   
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HFCL declares 25 per cent dividend
Infosys & HCL Tech
under-valued: Sachs Bank of Punjab
unveils Swagat Keep an eye on bargain buys |
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LSE starts
live trading on BSE
Maruti costs higher than Hyundai Baddi-Chandigarh link road: when will it come up?
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HFCL declares 25 per cent dividend SOLAN, Sept 26 — Himachal Futuristic Communications Ltd, today declared a dividend of 25 per cent for the year 1999-2000. The company paid a mere 10 per cent during the preceding year. Dr R.M. Kastia, Managing Director, addressing the annual general meeting of the company here today, said that the dividend, which was the highest ever for the company, reflected its “outstanding performance” during the last fiscal. The company recorded a turnover of Rs 599.72 crore and net profit of Rs 85.97 crore. While the cash inflow by way of sales during the year was up by 44 per cent the profit after tax showed an extremely robust growth of 139 per cent. Keeping in view the quantum of already bagged orders from the Department of Telecommunications, VSNL, the Railways and the Department of Defence as well as from Nepal, the company was poised to cross the Rs 1,000 crore mark in turnover this year. Dr Kastia said that micro cellular technology developed by HFCL had successfully completed field trials by DoT at Panipat. Trial systems had also been installed in export markets also. HFCL was also preparing for participating in large DoT tenders for which it had acquired the requisite micro cellular technology from Hyundai of Korea. Dr Kastia said that HFCL’s strategic tie-up with Karry Packer group of Australia had provided the company with a much needed prop in international markets particularly in Australia and some of those countries where the Packeres had been operating. The Karry Packer tie-up had also helped boost the confidence of investors, both Indian and international, who tended to think that the company in which the Australian tycoon had invested over Rs 1,000 crore “must be good.” With transactions in HFCL shares recorded at over Rs 300 crore on a single day last week, the HFCL scrip had earned the distinction of being the highest traded share as of now. Dr Kastia said that the company had drawn ambitious plans to enter entertainment and e-commerce fields. The company’s Channel 9 Gold, broadcast daily from DD2 for two hours in the evening, had proved to be immensely popular. It would be extended to three years each evening shortly. HFCL also hoped to make substantial forays into the vast and open market of rural telephony through wireless access soon. |
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Infosys & HCL Tech under-valued: Sachs NEW DELHI, Sept 26 (PTI) — Leading investment bankers Goldman Sachs today said scrips of Infosys Technologies and HCL Technologies were highly under-valued and projected them to rise by about 35 per cent in the next 12 months to touch Rs 10,306 and Rs 1536 per share respectively. “We are initiating coverage of Infosys Technologies and HCL Technologies with market outperformer ratings and we expect their share prices to be ruling at Rs 10,306 and Rs 1536 respectively over the next 12 months,” Anil Tiwari, author of the Goldman Sachs IT Report-India, said here. “We identify Infosys as one of the highest quality names in the industry and also believe in HCL Technologies as a sound business model with niche strengths in engineering solutions,” he said. Stock prices of Infosys Technologies and HCL Technologies are currently quoting at around Rs 7541 and Rs 1102 respectively in the Mumbai stock market. “We believe two companies will maintain attractive growth and continue to demonstrate crisp execution,“ the research report said. Infosys Technologies has one of the strongest business models in the industry and sound business execution methodologies, it said. The company also rated NIIT as a market performer. Tiwari said high-end Indian players like Infosys, HCL Tech, NIIT, Wipro were increasing their scope and moving from the lower end of the spectrum from merely providing it services and outsourcing to consultancy and IT strategy. |
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Bank of Punjab
unveils Swagat NEW DELHI, Sep 26 — Bank of Punjab today announced the launch of a “one of its kind” savings bank account, Swagat, that requires no minimum balance and at the same time is packed with a range of services compatible with electronic banking. Swagat account holders will be able to avail the facility of utility bill payments in Chandigarh and Punjab. The Executive Director of the bank, Mr Tejbir Singh, said the account will have other add-on facilities to make it more user-friendly, attractive and unique. It would be targeted at the students, housewives and the salaried class. For the first time the bank has tied up with National Insurance Company to offer insurance schemes at discounted premiums to all Swagat account holders. Mr Singh said the bank was expecting an exponential increase in its customer base crossing one million customers over the next two years, up from the present four lakhs at present. The branch network will be strengthened with the addition of 15 branches in the current fiscal. Calcutta and Chennai branches will be operational by early next year. To manage the increasing customer base, the bank has put in place a 24-hour customer care centre for telebanking, which will also manage customer queries and information services. The bank plans to install 100 automated teller machines with a focus on off-site installations by the end of the current financial year. |
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NOTWITHSTANDING the technical bounce back on Monday, the undercurrent at the Indian bourses like those abroad is distinctly bearish. The general consensus seems to be that worst is yet to come and from the looks of things several downward technical barriers might be tested in the days to come. Those with a bearish temperature can consider short positions at the counters of Infosys Tech. at 7,446 (cover up at Rs 6,989), Pentamedia at Rs 421 (cover up at 384) and Global Tele at Rs 1,114 (cover up at Rs 963). Those with a bullish temperament, and they would really have to be hardcore bulls given the market outlook may consider taking up long positions at the counters of HCL Technologies at Rs 1,006 (square up at Rs 1,067). The portfolio pick of this week is Hindustan Lever which offers fair investment value at the current rate. The optimal strategy for this week remains — keep any eye on bargain buys. — Ashok Kumar |
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Spice launches mobile banking CHANDIGARH, Sept 26 — Spice Telecom, the leading cellular services
provider in Punjab, today announced the launch of mobile banking services. Spice subscribers having accounts in Bank of Punjab and HDFC Bank can now access their bank account from their mobiles. Announcing this, Mr Dilip Modi, Chief Executive Officer, Spice Telecom said: “Mobile banking is just the beginning. It is mobile commerce that we are looking at in a broader perspective which will be introduced at the earliest. Spice is also looking at tie-ups with other banks like ICICI.” Bank of Punjab’s customers who are also Spice subscribers can now pay their mobile phone bills and pre-paid customers can charge their Quicky Accounts with Bucks Online anytime and from anywhere. They can also perform other transactions like requesting for a cheque book or a mini statement of account. Mr Tejbir Singh, Executive Director, Bank of Punjab, said that mobile banking is another value-added service being provided by the bank. He said: “Bank of Punjab is miles ahead of the nearest private sector bank in Punjab.” HDFC Bank through mobile banking extends to its customers services like statement of account, change of operative account, fixed deposit inquiry, cheques status inquiry and stop payment of cheques. The key feature of this service is that one can carry out any of these services from anywhere as long as the mobile phones are within Spice’s network in Punjab. |
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LSE starts
live trading on BSE CHANDIGARH, Sept 26 — LSE Securities Limited, a wholly-owned subsidiary of Ludhiana Stock Exchange (LSE), commenced “live” trading on BSE today. The members of the exchange who had opted for trading rights on BSE through LSE Securities and had received registration from SEBI as sub-brokers of the subsidiary company, were allowed to trade at BSE through the multiple stock exchanges trading (MULTEX) system. On the first day, 15 members of the exchange conducted transactions on BSE. It was a historic day for the exchange as the members of the LSE who had opted for trading rights on BSE were able to trade concurrently on BSE and LSE markets. The members of LSE will soon be able to trade concurrently on BSE, NSE and LSE. “Pooja” and “Ardas” were performed in the LSE building in the morning.
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TMG offers
e-Samvad NEW DELHI, Sep 26 — TMG Enter today announced the launch of e-Samvad, a programme on technology in Hindi. The programme, will be telecast three times a day, and is intended to explain technology. Talking about the programme, Mr Subhanjan Sarkar, chairman, Technology Media Group (TMG) said it was aimed at enabling the people to adopt, use and relate to technology. “The
essential purpose of e-Samvaad is to come closer to the common man,” he said, adding that this was only the first stride into an array of multi-language programming planned by the channel. Mr Sarkar said there was also a possibilty of a 24-hour technology channel in Hindi.
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Maruti costs higher than Hyundai NEW DELHI, Sep 26 (UNI) — Maruti Udyog’s labour cost per vehicle, which is 66 per cent higher than Hyundai Motor India is eating away the company’s profitability, says Managing Director Jagdish
Khattar. Despite the advantage of longer operational time, Maruti’s labour cost per vehicle stood at Rs 2,696 as against Rs 1,617 of Hyundai Motor. ‘‘This cost structure is already making MUL uncompetitive,’’ Mr Khattar said. Stating that the implementation of the improved incentive scheme as proposed by the Maruti Udyog Employees Union
(MUEU) will put a burden of up to Rs 60 crore on the company, Mr Khattar said the company’s profit margins are under pressure and ‘‘it is becoming a challenge to remain in black’’. In a letter to MUL employees, Mr Khattar said, ‘‘our competitors like Hyundai and Ford have started their operations in India by benchmarking with the productivity levels already achieved in
Maruti.’’ Terming the union’s demands for improved benefits as not in the long-term interest of the company, Mr Khattar said, ‘‘the company can ill-afford a commitment of huge financial implication ranging from Rs 51 crore to Rs 60 crore per year.’’
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Baddi-Chandigarh link road: when will it come up? BADDI (Solan), Sept 26 —Himachal’s Baddi town, once touted to become a promising hub of industry, is fast becoming a turn-off for fresh investment. Major industries, including Vardhman, DCM, Birla, and Dabur, which set up their units in the past two decades are beset with numerous problems. With civic amenities and supplementary facilities failing to catch up with the industrial development of the town, the local industry is dismayed. “During the initial years , the facilities which the government was offering led to substantial growth in the number of units which were set up here. However, the condition now is that many of the industrial projects are being delayed and big industrial units are hesitating to set up units in the
area", says Mr. R.K. Rewari of Auro Spinning Mills (Vardhman), who is also the President of the Baddi Barotiwala Nalagarh Industries Association. Mr Rewari says that Vardhman, which at present has eight manufacturing units in the
area, too has been delaying its plans to set up another unit due to the existing problems which industry in Baddi is facing. The major problem which the industry here is facing is the availability of labour, mainly skilled labour, who are not willing to come to the area due to the absence of proper housing, medical and recreational facilities. “To bring and retain skilled labour to the area, we have to offer them remuneration much more than industries in other areas. We have to manage lodging for the workers, which is scarce here. The government needs to provide sufficient housing, medical as well as recreational facilities here”, says Mr Arun Rawat, proprietor, Kitron Metals. Reportedly, the area is without any hospital, while there is only one private hotel and no other recreational facilities. “On top of it the condition laid by the government to have 65 per cent workers from Himachal (50 per cent for small scale units) in order to avail certain facilities, deprives us of the benefits because bringing people to work here in itself is a herculean task. Fulfilling any such condition is not possible for us”, Mr Rawat added. The industry lacks basic infrastructure, which includes roads, and transport. Industrialists complain that due to the presence of a truck union here, small industrialists are charged almost double for transportation by these truck operators who do not let operators from other companies take the goods from this area. “While most of the big units have their own transport means, small industrialists are either forced to pay these operators at exorbitant rates or make a private arrangement on a permanent basis which not all can afford”. The authorities need to take effective steps in this regard, says Mr Amir Singh of
J.S.Plastic (tiny unit) who is also President of Laghu Udyog Bharti. The roads leading to Baddi are also in bad shape and the industrialists demand a link road from Chandigarh to Baddi. “It would not only reduce the distance by almost 20 km, but also make available skilled workers who would then willingly come to work here”, Mr A.K. Chawla of A.V. Autos says. In the absence of sufficient medical facilities and retail outlets, the market is more or less monopolised and residents, mainly the industry workers, have to pay more for day-to-day items. This peaceful, non-polluted area, its seems, would no longer remain so. This is because there is no common effluent treatment plant or a dumping unit. “We are forced to throw industrial waste in the open, which, no doubt is very dangerous”, said another industrialist. Drainage facilities and cleanliness under such conditions have not even been given a thought, the business men allege. “For the last more than 10 years, we have been putting forward our demands to the government, and despite repeated assurances, nothing has been done”, says Mr Amir Singh. |
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Cyber revolution ignores the poor WASHINGTON: Two Wall Street Journal writers have said that the information technology (IT) revolution in India and other countries like China, Brazil and Malaysia is important as a “symbol” of national ambition but it has yet to offer “tangible benefits” to the vast majority of their poor. The Wall Street Journal News Editor, Economics, Bernard Wysocki, writes in the World Business supplement today that Bangalore, Hyderabad and other replicas of Silicon Valley in emerging countries are important “as symbols of national ambition,” but “not very important, not anytime soon” as engines of economic growth. “As India tries to make its mighty leap forward, there is no better symbol of economic progress than the looming high-technology hot spot of Bangalore.... But widen the lens a little bit, and high-tech Bangalore starts to look smaller and smaller in the context of india’s vast economic underdevelopment,” Wysocki says. Despite the high-tech boom, Karnataka’s standard of living is 5 per cent below the national average and some 30 per cent of city dwellers and 42 per cent of rural people live in poverty as per “Indian (not international) standards of poverty”, he says. He adds, “Widen the lens even more, to all of India, ... textiles are much bigger than technology. Textiles employ 50 million people in India. And textile exports are quadruple those of software.” Michelle Levander, another Journal writer, says that despite Andhra Pradesh Chief Minister N. Chandrabhabu Naidu’s efforts at lifting people out of poverty through technological improvements “outside the capital, middlemen have already reappeared. At rural land registries, they demand bribes to fill out the forms later scanned into an electronic database.” Levander quotes a foreign executive who wished to remain anonymous as praising the State’s ability to create “an oasis of international
quality.” However, “Andhra Pradesh’s technology advances have yet to offer tangible benefits to the vast majority of its people,” he adds.
— PTI Olympic site gets 7.2 billion hits SYDNEY: The official Olympic Games Internet site has already attracted 7.2 billion visitors, surpassing the original estimate of 6.5 billion with six days of competition still remaining. The explosion in hits has made the Sydney games the most popular event ever on the Internet and coincides with lower than expected television viewing figures in the USA. “The total number of hits to date is 7.2 billion. We have not revised our estimate because we are so far past the original one, but it will be a huge number,” Craig Lowder, a spokesman for Olympics sponsors IBM, said on Tuesday. The Internet success contrasts sharply with disappointing American television figures. According to preliminary estimates from Nielsen Media Research, NBC’s prime-time package of taped Olympic highlights last Tuesday was watched by just over 15.6 million US households. NBC is believed to have forecast between 17.64 and 18.64 million households to its advertisers. The official site (www.olympics.com) has not crashed at any time despite the massive demand. Leading Internet audience measurement service Nielsen//Netratings said men and women were visiting the site in equal numbers. IBM started counting hits when the Olympic soccer competition started, two days before the opening ceremony on September 15. IBM has also set up www.ibm.com/fanmail for anyone wanting to send e-mails to any of the 10,500 athletes. — Reuters BP Net kiosks for petrol stations NEW DELHI, Sept 26 — Bharat Petroleum Corporation plans to install smart card operated Internet kiosks at its petrol stations where customers can not only surf on high-speed ISDN lines but also have free access to localised and city specific information. Similarly, to make life easier for the housewife, BP is in the advanced stage of developing a system for refill booking over the Internet. It also plans to link all its petrol stations and LPG distributors and transact with them electronically. The company is also expanding its Petro Card network in North India. The multipurpose pre-paid card is combined with a rewards programme on a microchip based state-of-the-art smart card technology. Bharat Petroleum has also embarked on a massive terminaliation of its network to give the customer the flexibility of paying either through credit cards, debit cards or pre-paid cards.  |
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