The Tribune, Chandigarh, India

	Infosys Q1 net down 2.42% at Rs 1,488 cr Bangalore, July 13 Infosys today posted a 2.42 per cent drop in first quarter net profit to Rs 1,488 crore on volatile currency and high staff cost, but raised full-year revenue growth forecast by three percentage points to up to 21 per cent. The company had a net profit of Rs 1,525 crore during the April-June quarter of the previous fiscal (2009-10). "The yearly guidance has been revised to 19-21 per cent and there is cautious optimism. The caution is coming from the concerns about Europe and currency momentum. But otherwise it is a good quarter," Infosys CEO and MD S Gopalakrishnan said. Earlier, the company's guidance was for 16-18 per cent revenue growth in the current fiscal. Shares of the company plunged following the announcement of the result and were trading 3.49 per cent down at Rs 2,794.05 at 1515 hours. The company expects its consolidated revenues to be in the range of $5.72 billion to $5.81 billion for the fiscal year ending March 31, 2011. For the second quarter ending September 30, 2010, the company said its consolidated revenues are expected to be in the range of $1.41 billion to $1.42 billion, which translates into a growth rate of 22.4 per cent to 23.7 per cent. "While the global economic environment remains uncertain, we continue to see greater demand for services from our clients. The challenge for the industry is to enhance the investment to grow the business, given the uncertainty in the environment," Gopalakrishnan added. Analysts said Infosys earnings were hit by volatility in currency. Infosys, India's second-largest software exporter by sales, sets not only the mood of the sector, but the entire market sentiment. The company’s consolidated revenue rose 13.26 per cent to Rs 6,198 crore in the quarter under review against Rs 5,472 crore over the year-ago period. Under the International Financial Regulatory System (IFRS), net profit grew 4.2 per cent year-on-year to $326 million from $313 million. Consolidated revenue was up 21 per cent to $1.35 billion for the quarter ended June 30, 2010, from $1.12 billion in the year-ago period. Cash and cash equivalent on June 30, 2010, stood at Rs 16,005 crore in April-June quarter from Rs 12,030 crore in the same period last year. "The volatile currency environment is a concern for the industry. Our flexible financial and operating model enables us to prioritise our investment and focus on high quality growth even in this tough environment," Infosys CFO V Balakrishnan said. Infosys and its subsidiaries had a net addition of 1,026 employees for the quarter ended June 30, 2010, taking the total headcount to 1,14,822 employees. Further, the company added 38 clients during the quarter. — PTI
	Mediclaim Policies Insurers to restore cashless facility Mumbai, July 13 State-owned insurance companies today agreed to restore cashless treatment facilities in big private hospitals on case-to-case basis, a development that will benefit lakhs of mediclaim policy holders. "The insurance companies have decided to restore cashless facilities on a case-to-case basis. We discussed ways of making people part of the facility and how the reimbursements to them can be revived," head of health insurance vertical at ICICI Lombard Sanjay Datta told PTI after a CII-initiated meeting between insurers and the healthcare industry. The state-owned insurance companies, Oriental Insurance, New India Assurance, National Insurance and United Insurance, have also agreed to expand the network of hospitals providing cashless treatment facility (Preferred Provider Network) for the benefit of mediclaim policy holders. "The insurance companies reiterated their current position of willingness to expand the PPN (Preferred Provider Network) and in 90 days work with CII and other stakeholders to address areas of concern," CII said in a statement. Industry body CII called a joint meeting of the insurers and the healthcare industry to resolve the impasse following withdrawal of cashless treatment facility at about 150 hospitals by four PSU insurance companies from July 1 on allegations of over-billing. Speaking at the meeting, New India Assurance CMD M Ramadoss said hospitals and customers need to "respect and maintain" integrity. "In order to keep health insurance premiums affordable and viable all stakeholders including the consumers have to respect and maintain the integrity of the system," he said. As regards the patients seeking treatment under mediclaim scheme, Fortis Hospitals CEO Vishal Bali said they would have to seek reimbursement for claims for treatment in delisted hospitals. The insurers and the healthcare industry also agreed for gradation of hospitals for the purpose of mediclaim facilities. The hospitals would be graded in three categories — A,B and C — on the basis of infrastructure facilities and specialties. The grading, according to S Gopalakrishnan, New India Assurance general manager, will not have any impact on the premium being paid by policy holders but would help the insurance companies in cutting down losses. — PTI
	Petrol Pricing: Oil PSUs to have uniform rate New Delhi, July 13 State-owned oil firms IOC, BPCL and HPCL will continue to act as a cartel while revising petrol prices every fortnight in the free pricing regime, which looks set to kick in as early as this week. Petrol prices were freed from government control last month, resulting in a Rs 3.50 per litre rate hike in Delhi. However, the modalities of subsequent retail price adjustments - in line with changes in raw material cost - were left for the industry to decide. Though diesel prices were raised by Rs 2 per litre, it continues to be under government control. "It makes no sense for PSUs to compete among themselves if only petrol prices are being freed. Oil marketing companies (or state-run fuel retailers) will continue to coordinate on the pricing of petrol," said a top oil PSU executive. Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) are likely to revise petrol prices twice a month on the basis of fortnightly average of crude oil prices. Stating that the modalities are likely to be finalised this week, he said that pump rates may be revised at least once this month. The three companies would have a uniform rate for petrol in particular cities or locations, and it would change on the same dates. "We will not announce dates of revision in advance to avoid hoarding of the fuel. Instead of changes in rates on the 1st and 16th of every month, we will revise prices on any day of the month," he said. Oil Secretary S Sundareshan said the change needed in the retail selling price of petrol will be known on July 15 (based on the average cost of oil in the first fortnight), and the modalities would flow thereof. Sources said the three PSUs have already held discussions with private retailers - Reliance Industries, Essar Oil and Royal Dutch/Shell — on modalities such as frequency and intervals at which prices would be revised. — PTI
	New inflation index likely from Aug 14 New Delhi, July 13 A new system of inflation measurement, under which price changes of about 250 extra items would be covered, is likely to be rolled out by the government on August 14. The present monthly inflation measurement system, based on the wholesale price index, reflects the price variation of 435 items. The number of items would now go up to 685 and include a host of new products, including consumer goods like mobile phones and LCD televisions, sources said. Dated items such as typewriters and video cassette recorders (VCRs) would not find a place in the new inflation measurement mechanism. The Committee of Secretaries (CoS), headed by Cabinet Secretary KM Chandrasekhar, is likely to give a final shape to the new index next week. The base year of the new index would also be changed from 1993-94 to 2004-05. — PTI
	ULIP exit charges capped at Rs 6,000 New Delhi, July 13 Insurance regulator IRDA yesterday said ULIP-holders will have to pay up to Rs 6,000 if they want to discontinue a policy within the first four years. The IRDA (treatment of discontinued linked insurance policies) Regulation, 2010, released by the sectoral watchdog yesterday, said the charges for discontinuation of ULIPs will range from Rs 1,000 to Rs 6,000, depending on the premium paid by the policyholder. When the policy is discontinued during policy years of one to four, the holders of the policy would be charged in this range. However, policies discontinued from the fifth year onwards will not carry any discontinuation charges. "Where a policy is discontinued, only discontinuance charge may be levied by the insurer and no other charges by whatsoever name called shall be levied," IRDA said. The regulator said the fund value of the policy will be credited to the discontinued policy fund and the proceeds would be refunded only after completion of the lock-in period. The proceeds from discontinued policies would include, "the fund value as on the date the policy has discontinued, after addition of interest computed at minimum interest rate of 3.5 per cent." The regulator also said the insurers would give a grace period of 30 days for premium payment. Upon discontinuation of the policy, the holder can either revive the policy or completely withdraw without any risk cover. Insurers should send a notice to the discontinued policyholder within 15 days from the date of expiry of the grace period. The policyholder has to respond within 30 days of the receipt of the notice to revive the said policy, IRDA said. Unit-linked insurance products, or ULIPs, account for over 50 per cent of the life insurance business and the money collected is invested in equities. — PTI
	EduSports bets big on schools for growth Ruchika M. Khanna Tribune News Service Chandigarh, July 13 Leading structured sports curriculum provider, EduSports is all set to double its presence in schools across the country and increase its turnover by 100 per cent. Talking to TNS here today, Parminder Gill, co-founder and chief marketing officer, EduSports, said they were hoping to rope in a total of 150 schools for providing a structured physical activity and sports platform by the end of this fiscal. “As of now, we have about 65 schools and 50,000 children enrolled with us,” he said. The company took wings in January last year and is an off-shoot of Sportz Village, a sports venture for children where playing space is provided. EduSports leverages the experience of Sportz Village, its parent company, which has seven years of experience with kids and sports in India. Sportz Village has worked with over 500 schools and 100,000 kids in the sports context and has deep understanding of the issues involved in kids sports. However, last year, the promoters decided that instead of setting up their own infrastructure, they should piggyback on existing sports facilities available in schools. There was an added benefit; parents were reassured as the children were in a safe and familiar environment. EduSports programme is not focused on a particular sport. The programme is designed to make use of a structured set of physical activities and a variety of sport- based techniques for developing mental skills, behavioural skills and physical conditioning in children. The programme not only provides with a course curriculum, but also props for various sporting activities, besides providing training to physical education trainers in schools and holding parent workshops. “Our clients comprise of schools ranging from the best of private/international schools, to private schools in tier II cities which have a lot of constraints (financial/space). Since our vision is to create a generation of fit and healthy kids, we are also trying to partner with government/NGOs, so that we can start a pilot programme in government schools,” he said. Though Gill refused to share any revenue figures, he said the company was earning around Rs 65 lakh per annum from each school subscribing to their programme. “By the end of this fiscal, we will be able to double our turnover,” he said. He added that as more and more schools got enrolled with them, they were also thinking of expanding their resource centres in all regions of the country. Presently, the company has a project development and resource centre at Bangalore.
	PNB employees resent staff shortage Tribune News Service Chandigarh, July 13 The shortage of staff and the unwillingness of the Punjab National Bank management to recruit staff might hamper the future growth prospects of the bank. With over 60 per cent of employees retiring by 2015, the bank may find it difficult to meet its target of crossing business of Rs 10,00,000 crore. These apprehensions were raised by employees of the bank, who met here today under the aegis of the All-India PNB Officers Association and All-India PNB Employees Association. Talking to mediapersons here this evening, KD Khera and PR Mehta, representatives of the two associations, said unless the management went on a major recruitment drive, the growth of the bank would be affected. They said the bank was recruiting employees on ad hoc and contract basis, but was unwilling to recruit more employees and officers. They said most of the employees were over burdened and were working for 10-11 hours a day, as compared to the stipulated 6-7 hours. “We have asked the management to start recruiting more officers, and change the promotional and placement policy, failing which we will have to start protest marches and stage dharnas,” they said.