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Corporate Results
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No hike in petro prices for now: FM
Nissan, Leyland in pact for 3 JVs
IDFC to borrow
Rs 12,000-14,000 cr
Railways opts for JVs
PE firms invest $ 3.8 bn in India
BSE picks up 5% in CSE
Islamic Banking
Infosys to up billing rates by 3-4 pc
Bajajs seek time for settlement
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TRAI against cap on telcos
New Delhi, August 29 There should not be any limit on the number of telephony operators providing services in a particular area, as it would be driven by demand, the telecom regulator said in its recommendation. TRAI submitted a set of recommendations to the Department of Telecommunications (DoT) in its efforts to reform the telecom licensing policy and liberalise the merger and acquisition norms in the sector. While the well-established national operators like Bharti Airtel, Vodaphone Essar, BSNL and Tata Teleservices on one side want capping, there are those who want to enter or expand their presence in the mobile segment, like HFCL, Internet service providers (ISPs) Spice Telecom and Shyam Telecom backed by Reliance Communications who want the regulator to continue with the existing policy. This TRAI recommendation has not been welcomed by the leading operators having a pan-India footprint which have been lobbying hard to prevent the entry of new players due to the limited space in the airwaves. There are at least 40 fresh applications awaiting clearance from the DoT, from companies wanting to offer cellular services but that cannot do so due to non-availability of spectrum. These applications belong to single-circle small operators such as HFCL and Spice and semi-national operators, including Aircel and Idea Cellular. TRAI chairman Nripendra Misra said the one-time fee for additional spectrum is the most neutral criteria to create a level-playing field. The regulator has suggested a one-time fee from operators for allocation of spectrum beyond 10 Mhz. At present, a company pays one per cent of its revenue to the government for additional spectrum, being allocated based on the subscriber base. The suggested charge for allocation of 2x5 Mhz of spectrum in category A circles and Mumbai and Delhi is Rs 80 crore, while for category B circles and Chennai and Kolkata, it is Rs 40 crore. For category C circles, the one-time fee is 15 crore. For allotment of 1 Mhz spectrum, TRAI suggested a one-time fee of Rs 16 crore. In the recommendations, which are subject to DoT's approval, the regulator has also sought auction for future allocation of spectrum except in case of allotment to mobile operator on 800, 900 and 1800 Mhz band. The regulator has also ruled that the market share of a merged entity would not be allowed to exceed 40 per cent from the current 67 per cent, both in terms of subscriber base and revenue on the issue of mergers and acquisitions (M&As). No M&A activity would take place in an area where the number of service providers is less than four as against the current rule of six. TRAI has also recommended to increase the stake an operator can acquire in another operator in the same area from 10 per cent to 20 per cent. To give a boost to rural connectivity, TRAI said any operator that covers 75 per cent network in any service area, excluding the four metros, would be paying the Universal Service Obligation (USO) fee at a reduced rate of three per cent instead of the current five percent.
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Corporate Results
Mumbai, August 29 The Indian company, which is now the world's sixth-biggest maker of the alloy, had recorded a consolidated profit after tax of Rs 1,014 crore in the same period last fiscal. Consolidated turnover also registered a jump of over five-fold at Rs 31,155 crore in the first quarter of 2007-08 against Rs 5,748 crore during the same period previous fiscal. "The un-audited consolidated financial statements of the company for the quarter include audited financial results of Tata Steel Ltd and the provisional financial results of Corus," a Tata Steel press release said. Consolidated operating profit increased to Rs 4,904 crore during the first quarter FY'07-08 compared to Rs 1,712 crore in the corresponding period of previous year. The company also said the results also include extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in the yield rates on Bonds held by various pension funds of Corus. Ballarpur dividend
Leading paper manufacturer Ballarpur Industries Ltd (BILT) today posted a net profit after tax of Rs 66.28 crore for the quarter ended June 30, where as the same was at Rs 67.88 crore for the same quarter last year. Total Income (net of excise) was at Rs 537.65 crore for the fourth quarter ended June 30, while the same was at Rs 533.69 crore for the corresponding quarter previous year, the company said in a filing to the Bombay Stock Exchange. Previous year figures are not comparable with the classification of current year as they include the performance of power business and the Ashti unit, Ballarpur Industries said. For the year ended June 30, Ballarpur Industries recorded a net profit after tax of Rs 250.75 crore whilst the same was at Rs 212 crore for the year-ago period. Total Income (net of excise) was Rs 2173.45 crore for the year ended June 30, where as the same was at Rs 1884.37 crore a year ago. The board of directors of the company at its meeting today declared a final dividend of 15 per cent on the equity shares. |
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No hike in petro prices for now: FM
New Delhi, August 29 Chidambaram in a meeting with petroleum minister Murli Deora yesterday agreed in-principle to issue oil bonds to cover one-third of the under-realisation on sale of petrol, diesel, domestic cooking gas LPG and kerosene in 2007-08 fiscal, official sources said. The quantum of the bonds would be decided once the two ministries agree on the losses the public sector oil firms were incurring on fuel sale, they said. Government-owned oil firms had sought an immediate hike in petrol, diesel, LPG and kerosene prices as they are losing over Rs 185 crore per day on sale of the four products. During 2007-08, PSU oil firms' losses on sale of petrol, diesel, LPG and kerosene has been estimated at Rs 52,162 crore, one-third of which would now be met through oil bonds. An equal amount would be contributed by upstream firms like ONGC and GAIL by way of discounts on crude oil and LPG they sell to the refiners. The remaining portion of the under-recovery would be absorbed by refiners Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum, the sources said. The Indian basket of crude oil has risen over 30 per cent since February when petrol and diesel prices were cut by Rs 2 and Re one per litre, respectively. Oil firms are losing Rs 5.88 per litre on petrol, Rs 4.80 a litre on diesel, Rs 189.14 per LPG cylinder and Rs 14.63 on sale of every litre of kerosene. During April-June quarter, Indian Oil, Bharat Petroleum and Hindustan Petroleum together lost Rs 1,553 crore on selling petrol, Rs 4,633 crore on diesel, Rs 4,028 crore on kerosene and Rs 2,698 crore on domestic LPG. IOC, which controls roughly half of the fuel market, is losing Rs 6.64 crore per day on sale of petrol, Rs 40.12 crore on diesel, Rs 30.55 crore on kerosene and Rs 15.90 crore on sale of domestic LPG. The industry figures are roughly double these numbers. —
PTI |
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Nissan, Leyland in pact for 3 JVs
Chennai, August 29 The companies signed Heads of Agreement for forming three joint ventures supporting the LCV business. The partnership between the companies included development, manufacture and co-operation for distribution of LCVs under Ashok Leyland and Nissan brands. The JVs detailed in the HoA would cover a vehicle manufacturing company, powertrain manufacturing company and a technology development company The vehicle manufacturing company would have exclusive rights to manufacture LCV products in India for both the partners. Manufacturing facilities will be located in India and the company majority owned by Ashok Leyland. —
UNI |
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IDFC to borrow
Rs 12,000-14,000 cr
New Delhi, August 29 “The money will be used for funding infrastructure projects in sectors like ports, roads, logistics and telecom,” IDFC CEO Rajiv Lall said. The borrowing plan would depend on market conditions, he said. On infrastructure financing, Lall said the excitement in the infrastructure sector is likely to continue in the coming years. The company expects balance sheet size to grow by 30-35 per cent during the fiscal. Meanwhile, IDFC and Feedback Ventures today signed an MoU with the USAID for promotion and development of new water and sanitation projects in urban areas. —
PTI |
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New Delhi, August 29
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PE firms invest $ 3.8 bn in India
New Delhi, August 29 Last year, foreign private equity players had invested $ 2.6 billion; data complied by global consulting firm Dealogic showed. Carlyle Group is the leading “financial sponsor” in India with investment of 777 $ million via two deals, including acquisition of over 6 per cent stake in HDFC. It is followed by Dubai International Capital, which acquired a 2.87 per cent stake in ICICI Bank for $ 741 million, and Blackstone Group with $ 619 million inflow via eight deals. Financial sponsor is a term commonly used to refer to private equity investment firms, particularly those engaged in leveraged buyout transactions. Blackstone Group, the world’s leading private equity firm, has acquired stake in companies such as Intelenet Global Services, Punj Lloyd and Gokaldas Exports. The US-based group has also decided to pump in $ 150 million to acquire a stake in Nagarjuna Construction Company. A move that comes close on the heels of its decision to acquire up to 70.1 per cent stake in Gokaldas Exports, the country’s biggest apparel exporter, for about Rs 675 crore. Blackstone Group manages around $ 90 billion of assets worldwide. In January, it invested about $ 275 million in Ushodaya Enterprises Ltd, a media and film production company. Buyouts by private equity players accounted for 8 per cent of total M&A activity in India during the year so far, down 4 per cent from the year-ago period. This activity accounts for 16 per cent of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 year to date, up 4 per cent compared to the year ago period. Besides, the average deal size has increased 54 per cent to $ 60 million this year and the volume accounts for 16 per cent of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 so far, the Dealogic data showed. Finance is the leading industry for private equity activity in India and has attracted $ 2 billion investments via 11 deals this year, followed by construction with $ 418 million through nine deals and textiles with $ 309 million in seven deals. — PTI
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BSE picks up 5% in CSE
Mumbai, August 29 The BSE has invested about Rs 60 crore to acquire the 5 per cent stake at a value of Rs 2,000 per share. The CSE, one of the oldest stock exchanges in the country, was facing a survial threat like the other regional exchanges in the aftermath of the nationwide expansion of the National Stock Exchange and the Bombay Stock Exchange. Commenting on the development, BSE managing director and CEO Rajnikant Patel said, ''BSE has picked up 5 per cent stake, as a strategic partner, in CSE. We have signed an MoU for the revival and growth of CSE and its members. We believe that BSE, CSE combination presents a good business opportunity for both BSE and CSE members.'' — UNI |
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Islamic Banking
New Delhi, August 29 “Globally we are a significant player in Islamic banking. Current regulation does not allow Islamic banking in India. If the RBI ever revises policy to introduce Islamic banking in India, we will look at it,” bank spokesperson in India Arijit De said. He clarified that the bank had not sought approval of the RBI and the government to start Islamic banking. De, however, said the bank had approached RBI for offering consultancy services in this regard. Islamic banking is based on Sharia principles and shuns the concept of fixed-interest returns and speculation. It also forbids investments in what Islam considers vices such as businesses dealing in alcohol, pork or gambling. India has the world’s second-largest Muslim population at over 150 million, second only to Indonesia. Standard Chartered Bank offers Islamic banking in 57 countries. Before being implemented, Islamic finance would need various policy changes at the government level and a proper banking framework from the central bank. — PTI
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Infosys to up billing rates by 3-4 pc
Mumbai, August 29 Though Infosys' US market would continue to grow, the company expects its markets elsewhere to grow faster, Gopalakrisnan said. "From a geography perspective, Europe seems to be positive, Australia is also positive," Gopalakrishnan said. He added that Infosys would be investing in the new markets which are also keen to catch up with the US in offshoring. He also added that a slow down in the US economy would only result in increased offshoring by companies in that country that look towards cutting costs. The company is looking to soften the blow of a rising rupee against the dollar by raising billing rates by 3 to 4 per cent for new contracts and 2 to 3 per cent for existing contracts, he added.
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Bajajs seek time for settlement
New Delhi, August 29 During the proceedings of the Company Law Board (CLB), a battery of lawyers representing both sides of the Bajaj scions requested the principal Bench to grant a day’s time to discuss prospects of a settlement at a meeting of the two sides. Accepting the request, CLB Chairman S Balasubramanian adjourned the hearing for the day. The case is at the final argument stage and has been listed for three days of continuous hearing, starting today. —
PTI
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