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15 February 2009

Stock Analysis and Business Articles from DP blog

Indian B-school in global top 15

World's top 15 business schools

February 2, 2009

The much-awaited Global MBA Rankings 2009 published annually by Financial Times, London, is finally out.

While you will find the usual suspects in the top 10 with the London Business School and Wharton School, University of Pennsylvania sharing the numero uno spot, the Shanghai-based China European International Business School (Ceibs) has been ranked eighth, the first time ever any Chinese business school has found a place in the top 10 ever since this survey began a decade ago.

Interestingly, Indian School of Business -- the only Indian management school to figure in this list of 100 -- has ramped up its 2009 position to the 15th spot.

Here's a lowdown on the top 15 business schools as they appear in the Global MBA Rankings 2009.

London Business School: Rank 1
Country: UK

London Business School jumped two places up in the 2009 survey compared to its 3rd rank last year.

Amongst its other achievements London Business School -- sharing the top spot with Wharton School, University of Pennsylvania -- boasts of a community that includes 1,300 plus students each year from 121 countries, 150 plus teaching faculty from more than 30 countries and 27,800 alumni based in more than 120 countries.

Situated in Regent's Park, London, London Business School offers degree programmes like MBA, executive MBA, EMBA-global, Dubai-London executive MBA, Sloan Fellowship MSc, Masters in finance, and PhDs.

Average alumni salary today (in US $): 1,46,565

Wharton School, University of Pennsylvania: Rank 1
Country: USA

Established in 1881 in Philadelphia, Wharton School, University of Pennsylvania, is the world's first collegiate business school has 84,000 plus alumni in 139 countries, 25 plus research centres and initiatives and 11 academic departments.

The university offers executive education programmes in subjects like finance/wealth, management, healthcare, corporate governance, marketing/sales and technology and operations apart from a host of other courses.

Average alumni salary today (in US $): 1,69,784

Harvard Business School: Rank 3
Country: USA

February 2, 2009

Offering management courses since 1908, Harvard Graduate School of Business started with a student population of 33 regular and 47 special students and a 15-member faculty.

It reached one of its famous milestones in 1959 when the school admitted women graduates to the second year MBA programme.

Harvard Business School moved up one position in 2009 to rank 3rd against its 2008 position.

Average alumni salary today (in US $): 1,63,637

Indian School of Business
Country: India

February 2, 2009

A meteoric rise from number 20 is how one can describe Indian School of Business' jump to the 15th position in the Global MBA Rankings 2009 survey.

With over 442 students enrolled for the class of 2009 for its one-year MBA programme the mean and median GMAT score of its student is 714 and 720 respectively.

Established in 2001 by a group of Indian industrialists and academicians ISB is the only Indian management school to make its mark in this global survey.

Average alumni salary today (in US $): 1,48,339

More info:Indian B-school in global top 15

Travel insurance: The good, the bad and the ugly

Why you must invest in gold now

Financial gyaan in tough times

Investing in 2009: What's hot, what's not

Hot jobs for 2009

Information You Can Use
• PhD in Dev studies
• Young Music Entreprnr award
• IIT-Mumbai's E-Summit '09
• JNTata Endwmt Loan S'ships
• USIEF fellowship for teachers
• Corporate training workshop
• Cambridge scholarships
• Business mgmt at IIPM
• Want to study biz mgmt?
• Executive MBA programme
• MBA in Biotechnology
• 2009 FNELP Fellowships
• BITSAT- 2009
• MSc, Computer Applications

Source:Rediff.com

20 stocks to watch out for: From BT

20 stocks to watch out for

The mood on Dalal Street has changed incredibly over the past year, from greed to denial to panic and now despair. There’s bad news all around, and the slivers of good news are being ignored. So, is this the time to throw in the towel and forget about stock market investing? Hardly. Instead, oversold markets provide a good entry point if you are convinced about the longterm potential of the Indian economy and the cream of Indian corporations.

There are stocks that appear in good shape to survive the slowdown, and be the first to emerge out of the gloom—and the best part is that they’re incredibly cheap when you consider their long-term potential. Business Today speaks to 11 of the brightest minds on Dalal Street and gets them to identify their favourite long-term value picks.

2009 may be a good time to buy fundamentally-sound stocks on the cheap; but investors have to be clear that they won’t reap the returns in 2009, or not even 2010. These stocks are only for long-term investors, with a minimum horizon of three years. Following is the list of 20 stock picks, in alphabetical order.

Aventis Pharma
Focus on lifestyle segment keeps it in good health

For some time now, smart money has been moving into shares of multinational pharmaceuticals companies. After India entered the product patent regime in 2005, the fortunes of MNC pharma companies have changed for the better.

Sector/Business: MNC Pharma

Investment Argument

Aggressive in introducing new patented drugs of its parent in many countries
Caters to the fast-growing lifestyle diseases segment—diabetes and cardiovascular
Zero-debt and a negligible capex will generate cash piles in coming years

They can now introduce new blockbuster drugs of their foreign parents and enjoy the profits. Aventis Pharma is one such well-placed MNC.

It is focussing on fast-growing lifestyle segments like cardiovascular and diabetes in the domestic market. Aventis has a few strong products in this segment like Amaryl (anti-diabetes) with a 4 per cent market share and Cardace (cardiovascular segment) with a 28 per cent market share. Besides, its parent Sanofi-Aventis, France, has a huge pipeline of molecules under development in the lifestyle category.

But what has impressed analysts is the aggressive introduction of its parents’ products in the in the Indian market. Says Rajiv Thakkar, CEO, Parag Parikh Financial Advisory Services (PPFAS): “Aventis’ overseas product introductions in India will expand its domestic business over time.”

Another factor, Thakkar says, that will benefit the stock is its debt-free status and a hefty cash balance. Thakkar, however, has not put a target price on the stock and cautions that the uncertain market may play spoilsport in the short-term. But in the long term, he says, “the stock has the makings of a multi-bagger.”

Axis Bank
Strong business model to offset succession worries
he stock market often reacts sharply to news from the banking sector. Axis Bank’s stock dipped sharply—slipping nearly 18 per cent to Rs 394.50 on January 27, 2009, down from Rs 485 on January 9, 2009. The market, already edgy over slowdown fears, was more worried over the retirement of Axis Bank’s long-time chairman P.J. Nayak, and the issue of a successor. Axis Bank’s advances continue to grow at a decent clip of over 50 per cent at a time when credit expansion has slumped.

The bank is facing a squeeze on margins as lending rates are falling while borrowing costs have yet to come down. Another hitch is possible stake sale of 21.5 per cent in Axis Bank held by administrator of the special undertaking of UTI. Says Vaibhav Agarwal, analyst, Angel Broking: “Axis Bank has been focussing on retail liabilities business before increasing its loan assets. Its fee income too is doing well.”

Bharat Electronics
Armed for growth

ust when large manufacturers are curtailing their activities to save on costs, Bharat Electronics is opening a support centre at Kochi, Kerala, to serve its growing clientele. A Navratna public sector undertaking which gets 80-85 per cent of sales from the armed forces, BEL’s turnover and profit after tax have been rising consistently for four decades now. It is talking to global players like Lockheed Martin, Boeing and EADS to make the most of the government’s “offset” clause, which requires any foreign company bagging an order worth over Rs 300 crore from India’s defence sector to share 30 per cent of it with Indian firms.

It also gains from its links with the Defence Research & Development Organisation. Says V.V.R. Sastry, BEL’s Chairman & Managing Director: “We are interacting with DRDO for developing new products.” Over the last one year, the BEL scrip has slid some 59 per cent, but broking houses still bet big on it. Says Dolat Capital’s Sameer Panke: “In the last five years, while the defence budget has grown at 12 per cent, defence capital expenditure grew at 23 per cent. BEL is a big beneficiary of this increase. The company has strong cash flows and no debts at all.’’

Bharti Airtel
More subscribers, more towers, and now more spectrum

Bharti Airtel typifies the success story of Indian mobile telephony. Its outstanding execution skills have made it the market leader. Over FY2006-08, Bharti cornered 26.5 per cent of the all-India incremental mobile subscriber additions. In the third quarter (fiscal 2009), it reported an increase of 41.5 per cent in gross revenues on a year-on-year basis, and 9 per cent on a sequential basis. During the same period, its mobile subscriber base grew by 55.3 per cent y-o-y and 10.5 per cent q-o-q to 85.7 million. Says Sunil Mittal, CMD, Bharti Airtel: “Bharti’s strategy of extensive roll-out ahead of competition, especially in new villages, has yielded rich dividends.”

The company is also well placed with its telecom infrastructure business, given the need for rapid network expansion by current and new operators. Bharti, with the largest tower portfolio in India through Infratel, is likely to be a key beneficiary. Then there are other reasons why the stock is a good bet. The spectrum allocation imbroglio seems to have been resolved. Says Hitesh Agrawal, Head of Research, Angel Broking: “The spectrum issue was critical for the sustained growth of the telecom sector. Now the medium-term growth requirement of Bharti has been taken care of.”

BHEL
Everybody wants light in dark times—and BHEL has the spark.

Bharat heavy electricals, the largest manufacturer of power plant equipment, is one company that is unlikely to be hit by the economic gloom. It knows the government will spend freely to improve the power sector. And the government does not cancel orders. So, BHEL, which has 64 per cent of the power plant market, has been ramping up capacity.

By December 2007, it had increased capacity from 6,000 MW a year to 10,000 MW, and is now taking it to 20,000 MW by 2011-12. Says Pulkit Bakliwal, analyst at Sharekhan: “The 11th Five-Year Plan has envisaged capacity addition of 78,000 MW.
BHEL has been the major beneficiary of the spending.” Government projects account for around 85 per cent of BHEL’s order book of Rs 1,04,000 crore, giving it high revenue stability. “Even in the present scenario, orders placed by government institutions are unlikely to get cancelled,” says Bakliwal, pointing out that the cash-strapped private players may have to do so. “This gives BHEL a huge comfort level,” Bakliwal adds.

But there are bumps on the road ahead. BHEL could face project delays and a lag before new orders start coming in. The stock, at slightly above Rs 1,320, is trading at a premium. Says Bakliwal: “A strong balance sheet and huge cash pile of about Rs 8,400 crore would help BHEL sail smoothly through the challenging business environment. We recommend a buy with a price target of Rs 1,546 over the next 12 months.”

CRISIL
Ratings become vital during downturns

he global credit crisis has hit the capital-raising plans of Indian companies.The only window open these days is through domestic debt issues or bank borrowings.

Here’s where a debt rating from CRISIL, India’s largest rating agency, helps. Another growth avenue has been created by the Basel-II norms to rate corporate loans given by banks.

Says Jigar Valia of Parag Parikh Financial Advisory Services (PPFAS): “It’s a small component now, but it’s going to be a phenomenally fast-growing business. It’s a perpetual and stable income.” CRISIL’s work for its parent Standard & Poor’s is a cash cow.

Adds Valia: “Even in years of de-growth, this company was trading at a PE multiple of 20 times; but thanks to the financial crisis, the stock is cheap.”

—Clifford Alvares

Engineers India
No fear of input cost hikes

One of Asia’s leading design and engineering companies, Engineers India builds petroleum refineries, industrial projects, offshore structures, metallurgy and power projects. India’s substantial investments in infrastructure have given it an order book of Rs 8,000 crore, to be executed over 3-4 years. It has begun protecting its margins by signing open-book orders—input cost hikes are passed through.

Says Ajay Parmar of Emkay Global Financial Services: “The stock looks quite attractive… there are no worries about the management since the government holds a 91 per cent stake… it has zero debt and high dividend payout. It’s a very safe bet in the current market scenario.”

GMDC
Sitting on a mine of wealth

he share price of Gujarat Mineral Development Corporation was one of the worst affected when Gujarat government asked state-run companies to fork out 30 per cent of their profit before tax for social work. Despite this, the stock is still seen as a good value pick—the bad news has been discounted. Profitability is expected to get a boost from the recent lignite price hike. “Full impact will be seen in the next financial year,” says Sameer Ranade, analyst at PINC Research.

The government may reverse the 30 per cent rule, since minority shareholders at some other companies have mutinied. GMDC’s moves into the power sector will add to valuation.

HCl Technologies
Seeking a global footprint

s India’s fifth-largest IT services exporter, straddling a diverse portfolio of services that ranges from R&D to enterprise, BPO and infrastructure management, HCL Technologies has a de-risked model as it is essentially in high-growth, high-end, low competition areas. It is looking at inorganic growth.

The acquisition of UK-based Axon last year is expected to help it become a major player in SAP implementation, an area from which it expects to get a quarter of its revenues, against 11 per cent now. Says Vineet Nayar, CEO, HCL Technologies, “We have successfully integrated Axon to dominate the SAP space globally.”

Anagram’s V.K. Sharma says: “We feel the worsening global macroeconomic situation and slowdown in IT spending is factored in at this price. The stock trades at almost 8 per cent dividend yield, limiting its downside from these levels.”

—Rishi Joshi

HDFC
Pioneer grows biz in slowdown

At a time when the home loans business is in the dumps, a lower third-quarter profit at India’s largest housingfinance company did not ring any alarm bells. Housing Development Finance Corporation actually boosted net interest income by 18 per cent to Rs 785 crore but was hit by higher running expenses. Analysts did not waver from their “buy” rating.

HDFC’s asset quality has improved further, it has valuable subsidiaries in insurance and asset management and it has been consolidating its business. HDFC’s asset quality has improved in December 2008. Says Gaurav Dua of Sharekhan: “Throughout its history, HDFC has shown a healthy growth.”

Hero Honda
Great traction in falling market

While the current fiscal has been tough for the two-wheeler industry, Hero Honda, the largest motorcycle manufacturer in India, delivered improved growth rates and increased market share. Although its third-quarter sales fell (by 4.5 per cent), it was less impacted than rivals Bajaj Auto (-52.4 per cent) and TVS Motors (-18.5 per cent). Says Pawan Munjal, MD & CEO, Hero Honda: “Our results reflect Hero Honda’s remarkable resilience.” Says Krish Shanbhag of Antique Stock Broking: “We expect Hero Honda to stay ahead on the strength of its brand and new launches.” It is also a debtfree company with surplus cash.

IDFC
Scores on good quality of assets and performance
The portfolio of Infrastructure Development Finance Company includes fullysecured loans and debentures, equity (both private and public), debt capital (where it syndicates financing and earns fees), apart from a host of other layered and mezzanine products. “The great quality of assets and the very sector it operates in makes it a good stock to have for the long term,” says Apoorva Shah of Prabhudas Lilladher. Despite the downturn, the company has managed to do well for itself in the nine months ended December 2008 logging a net profit of Rs 634 crore, up from Rs 593 crore last year’s corresponding period.

Infosys
Some pressure now, but long-term story intact

nfosys Technologies HAS a knack of beating its own earnings guidance, something it may continue doing even in today’s tough business climate. The Bangalore-headquartered information technology major is fighting rivals that are undercutting its prices. But Infosys has in the past demonstrated that it may walk out on a client rather than give up on margins. In any case, it has ushered in the New Year with panache—its third quarter net profits are up 33.3 per cent year-on-year. And it is hoping to end the financial year with a revenue growth of around 30 per cent.

Chief Financial Officer (CFO) V. Balakrishnan admits that the company is passing through tough times. “The environment is challenging as customers are sitting tight on spending. But with clients interested in saving costs, offshoring could increase. The long-term growth story is still intact.”

The scrip may have fallen 48 per cent in the past 12 months, but brokers have a positive long-term view of it. Angel Broking, for instance, has Infy as its sector’s top pick and recommended “accumulate”. Angel’s Harit Shah, however, warns investors that any upside in the near term would be limited. But then he adds: “Infosys will be among the first companies globally to reap the benefits and score a premium over others once the sector recovers from its current spell of slowdown.”

IOC
Safe on three pillars—pipelines, retail & refining

Till a few months ago, anaLysts were sharply negative on IOC’s stock because of the spurt in international petroleum prices. Today, with crude having slumped to below $45 a barrel, things are different.

“On an incremental basis, IOC would be making profits on the marketing business apart from its refining business as well as profits from pipeline. Also… IOC’s profitability is protected because of its income from pipeline business and investments,” says Raamdeo Agrawal, Managing Director, Motilal Oswal Securities.

IOC, along with its subsidiaries, controls 40 per cent of India’s refining capacity, 47 per cent of retail market and 67 per cent of downstream pipeline capacity. Motilal Oswal expects the stock to reach Rs 870 over the next 36 months.

Maharashtra Seamless
No pipe dreams here: just solid demand from an oil hungry world

hink of Maharashtra seamless as among the safest stocks for investors: steady financial performance, a strong balance sheet with no debt and a product (seamless steel pipes) that is in great demand. Says PINC Research Analyst Amol Rao: “MSL has the widest range of seamless products among Indian manufacturers.” The biggest customer is oil & gas sector, followed by engineering and automobile sectors. Seamless steel pipes fetch the firm 75 per cent of its revenues, and electric resistance welded pipes the rest.

The DP Jindal flagship will gain from implementation of the 5th and 6th rounds of the New Exploration Licensing Policy (NELP) for the oil and gas sector and the recent awards under NELP VII. Says Anil Jain, Group CFO, MSL:

“There has been a drop in demand from the private players, public sector players are still placing orders with us,” he says, noting that the decline in steel prices would give it bigger margins. “Liquidity is not going to be an issue for us because of the huge cash reserves,” says Jain.

PINC Research recommends a buy on the stock with a 12-18 month price target of Rs 320.

Maruti Suzuki India
From entry-level to global player, A Star bets big on exports
The year 2008 will go down in history as one of the worst ever for India’s automobile sector. But the situation has started improving now, and analysts believe that companies like Maruti Suzuki India would be the first beneficiaries. Says Surjit Arora of Prabhudas Lilladher: “Although the volume growth is likely to remain subdued for the next 3-4 months, it is expected to recover in 2009-10…”

Shinzo Nakanishi, MD& CEO, Maruti Suzuki India, says: “We have just started exporting our strategic model, the A-Star. In the medium term, exports will play a far more important role… Though there is a general slump in automobile demand globally, we feel products like A-Star will draw greater attention as they are fuel efficient.” Prices of raw material and fuel have eased somewhat although the gains will not show up before the next quarter as Maruti tends to buy raw materials almost six months in advance.

At the current market price of Rs 517.70, the stock looks extremely attractive. Analysts at Prabhudas Lilladher recommend buying the stock post Q3FY09 results and expect it to touch Rs 605 in the next 12-15 months.

Nestle
Taking health & wellness platform to Tier II, III cities

Nestle India, A 61.9 per cent subsidiary of Nestle S.A. of Switzerland,, is India’s third-largest FMCG company after Hindustan Unilever and ITC. It has a strong brand equity that is now helping it make inroads into Tier II and III cities. Nestle’s advantages: low penetration levels for processed foods, rising income levels, urbanisation and changing lifestyle. According to Martial Rolland, CMD, Nestle India: “Our success is based on a sound business model of sustainable performance and capital efficiency that is focussed on the consumer.” Says Edelweiss Securities: “Nestle is increasingly focussing on expanding into Tier II and Tier III cities and leveraging its recent innovations positioned on health and wellness platforms to gain incremental sales.”

The company reported strong revenue growth for its third quarter (July to September). Topline improved by over 20 per cent for the 7th quarter in a row, while bottomline surged by over 40 per cent. Robust earnings growth along with high dividend yield and low gearing makes Nestle a good bet in the long run.

Rallis India
All the right nutrients for growth prepare ground for big leap
When Rallis India reported an 11 per cent rise in net profit and 43 per cent rise in operating profit for the quarter to December 31, it beat analysts forecasts. “It was able to improve the process for manufacturing agrochemicals and also on the sourcing of raw materials,” notes Ajay Parmar, Head of Research, Emkay Global Financial Services. Another factor is that the restructuring undertaken by the Tata Group company in 2002-03 is now showing up in its profitability. Its other attractions: the almost debt-free status (barring a small working capital loan) and its focus on the international market.

New agro-chemical products have been well accepted and its international initiative APOLLO is in the right direction. Rallis plans to achieve revenues of Rs 2,500 crore by March 2012 compared with Rs 671 crore for the year to March 31, 2008. It hopes to achieve operating profit margins of 25 per cent against the current level of 11-12 per cent.

Market cap to sales of 0.6 times compared with 1.5 times for United Phosphorus, the closest competitor, makes Rallis an attractive investment, says Parmar of Emkay.

SBI
No cash crunch, no slowdown. All eyes now on asset quality
For the country’s biggest bank, there’s a problem of plenty. A surge in fixed deposits instead of current & savings accounts (CASA) has raised State Bank of India’s capital costs. CASA deposits added up to 34 per cent in the third quarter of FY 2008-09 as compared with 40 per cent for the second quarter of FY 2008-09. But, unlike other banks, SBI still managed to increase its margins due to better yields form its advances.

The downturn in the economy is not slowing things down at SBI. This year, its growth in advances is expected to be robust, with the third quarter’s 31 per cent growth figure a positive sign. The next year the growth could taper off due to a higher base, but a lower interest rate should help the bank’s other income.

Investments in core banking technology is paying off as the company reported an increase of 34 per cent in fee-based income in the third quarter of 2008-09 over last financial year’s third quarter.

A key area will be managing its asset quality in the coming quarters due to the slowdown in the economy. But growth should also not be a concern for a couple of quarters as it leverages on its size. Says Vishal Goyal, analyst, Edelweiss Capital: “It is fairly attractive as the bank has flexibility in earnings due to bond gains. Next year, operating expenses will be lower. Asset quality may see slippages, but it won’t impact profitability.”

Union Bank Of India
High operating efficiency, good asset quality
Union Bank Of India is among the favoured stocks in the banking sector. Recently, it reported an 84 per cent increase in net profit for the 3rd quarter to Rs 671.7 crore. Edelweiss Securities revised upwards the forecast for the full year net profit by 28 per cent. “We will maintain credit offtake and advance growth of 25 per cent for 2008-09,” says M. V. Nair, CMD, Union Bank of India.

He says the good show is due to NPA recovery, and retail and small and medium enterprise lending. Other income is also growing well, giving it a cushion if credit offtake does not improve. Edelweiss says it is better placed than its peers because of its high operating efficiency, better asset quality and potential to generate average return on equity of 22 per cent in 2008-10 financial years.

More info with Price movements @

20 stocks to watch out for

Source:Business Today

14 February 2009

L Mittal, M Ambani among Most Powerful Billionaires

L Mittal, M Ambani among 'Most Powerful Billionaires'

Steel Czar Lakshimi Mittal figures in Forbes list of billionaires

WASHINGTON: India-born steel czar Lakshimi Mittal and head of India's largest company Mukesh Ambani figure among Forbes list of "World's Most Powerful Billionaires" who wield a staggering authority and influence far beyond their riches.

Ranking third on the global list compiled by US business magazine is Lakshimi Mittal who "controls 10 percent of the world's steel production through his company ArcelorMittal" despite his fortune falling $24.5 billion between March and November 2008.

"Born in India but lives in London, where his political clout often incites controversy," it said noting "In 2002, then British Prime Minister Tony Blair reportedly wrote a letter to the Romanian prime minister hinting a sale of the country's steel company to Mittal would facilitate its entrance into the European Union."

----------------------------------------
Mukesh Ambani, figures seventh on Forbes list of billionaires

Figuring seventh on the list is Mukesh Ambani, who heads "petrochemicals giant Reliance Industries, Indian's largest company by market cap." Forbes noted he produces oil, gas, petrochemicals and textiles and is personally funding construction of a 27-story home in Mumbai that could cost $2 billion.

Giving the rationale behind the list, Forbes noted last March, there were 1,125 billionaires in the world, each wielding tremendous wealth and weight over the markets and industries in which they operate.

"But few plutocrats possess the money, economic dominance and political clout to touch-or the potential to touch-all of us," it said compiling its list with a formula based on the size and scope of the industries billionaires control, the political influence they exert and the fortunes they hold.

More@
http://economictimes.indiatimes.com/quickiearticleshow/4128467.cms

Source:ET

13 February 2009

BUDGET 2009: Coverage,Previews, Wishlists

For BUDGET News, Please Visit

http://economictimes.indiatimes.com/budget.cms

Govt plans VCFs to pay the requisite taxes

Home loan interest sop may be hiked to Rs 2L

Govt hints at stimulus package in vote-on-account

UPA to propose over 16% hike in the gross budgetary support

Steps to support labour-intensive sectors

India Inc seeks cut in income, corporate tax

Interim budget may include tax changes: Chidambaram

Govt eye polls in mini budget
The coalition government will put rescuing flagging growth and stemming job losses at the centre of a mini budget as it aims to woo voters ahead of general elections.

Don't time market based on budget
Market men are advising investors not to invest hastily ahead of the interim budget. The vote on account would seek to strike a balance between politics, economics

STPIs, 100% EOUs may enjoy tax holiday for 3 years

12 Feb 2009, 0103 hrs IST

The government plans to extend the tax concessions enjoyed by technology parks and 100% export-oriented units beyond March 2010. A case is also being made for the continuation of sops to 100% EOUs to make the country's exports more competitive in the global market.

Vote-on-account Primer

Prune consumption taxes

Natural gas cos may get tax sop

Lesser allocation for IITs likely in interim budget

------------------------------------------------
SOurce:ET

Hope BUDGET will be beneficial for 'Aam Aadmi'

Railway Budget: Lalu announces 2% cut in AC rail fares

Railway Budget: Lalu announces 2% cut in AC rail fares

AC, Mail, Express fares cut by 2%

13 Feb 2009, 1252 hrs IST

Railway Minister Lalu Yadav on Friday announced fare cut in AC and mail express trains by 2%. He also announced the introduction of 43 new trains and kept freight rates unchanged.

Read Lalu's 09-10 Railway Budget speech

43 new trains introduced

Poet Lalu at Play

Rly to invest Rs 230K cr in 11th plan

Railways have scaled new highs

Lalu basks in glory of Railway safety

Railways at a glance

Rly to invest Rs 230K cr in 11th plan
Lalu said the Railways will invest Rs 230K cr in the eleventh plan. Upgradation plan includes renewal of 2,941 km railway tracks that will require about 339,228 tonnes of steel and renewal of sleeper sheets along 2,382 km of railway lines.

Source:ET

04 February 2009

Ambanis up on Forbes richest CEOs list

Ambanis up on Forbes' richest CEOs list

They have lost more than $13 billion from their combined wealth, but still the two Ambani brothers have moved higher on Forbes' latest list of the world's ten richest CEOs, while Sunil Mittal has joined the league and Lakshmi Mittal has slipped two places.
Legendary American investor Warren Buffett has retained his top position on the annual list, but Indian-born steel tycoon Lakshmi Mittal has been toppled from his last year's second position by software major Oracle chief Larry Ellison.
Mittal has moved down to fourth position, while Mukesh Ambani, the elder of the two warring brothers, has jumped three positions to grab third rank this year.
The younger Ambani, Anil, has also moved up one place to sixth rank on this year's 'Forbes list of ten wealthiest CEOs'.
While another Indian business chief, Azim Premji, has moved out of the top-ten list, compatriot Sunil Mittal of Bharti Airtel [Get Quote] has joined the league at ninth position.
IT major Wipro [Get Quote] Chairman Premji was ranked ninth on the previous year's list. The total number of Indians on the list has remained unchanged at four on this year's list.

"Being a CEO isn't what it used to be. Crackdowns on corporate frills like private jets and over-the-top offices have become the norm, taking some of the fun -- but none of the stress -- out of running billion-dollar businesses," Forbes said.
"While some chief executives' jobs may be in peril, these 10 have stuck it out long enough to partake in what's left of the global economy. These have made our annual list of the world's wealthiest CEOs," it added.
About India's presence on the list, Forbes said there are four Indians on its list this year: "two industrialists, Mukesh Ambani and Lakshmi Mittal; and two telecom tycoons, Anil Ambani and Sunil Mittal."
"(The) Ambani brothers owe their hefty fortunes, in part, to inheritance. Following their father's death in 2002, they took over his industrial empire . . . and attempted to run it together.
"The collaboration soon soured. After coming to blows over who ran the company, the two reached a bitter compromise, deciding that they and the company would best be served by spinning off and divvying up its various businesses.
"Today Mukesh runs petrochemicals giant Reliance Industries Ltd [Get Quote], while Anil oversees an array of companies including Reliance Communications [Get Quote], a phone and Internet outfit with 60 million customers," it added.
The magazine said that its list of the world's wealthiest CEOs was based on analysis of their financial stakes in firms controlled by them, as on January 23.

Buffett has been ranked first with $35.9 billion worth of shareholding, it said, adding that "there are not many people who can lose $25 billion in four months and still top the list of the world's wealthiest CEOs."
Oracle's Ellison has been ranked second with $19.7 billion, followed by Mukesh Ambani ($16.8 billion), Lakshmi Mittal ($13.2 billion), luxury goods major LVMH's Bernard Arnault ($12.2 billion), Anil Ambani ($nine billion), Arabian bank Mashreq's Abdul Aziz Al Ghurair ($7 billion), and Microsoft's Steve Ballmer ($7 billion).
Sunil Mittal ($6.9 billion) and Japanese fashion retail major Fast Retailing's Tadashi Yanai ($6 billion) follow.
"We estimated ownership by sifting through each company's most recent financial filings and, where information was not readily available, talking to industry sources," Forbes said, adding that both CEOs and managing directors of public companies across the world were considered for the list.
About Mukesh Ambani, the report said he made it to third position despite a 62 per cent plunge in the shares of his group's flagship firm RIL since January last year.
On Lakshmi Mittal, it said that the 58-year-old has consistently ranked among the top five wealthiest people in the world, but his public holdings of ArcelorMittal took a dive in the second half of 2008, falling 73 per cent since June.
About Anil Ambani, the report said that "in the four years since a spat with older brother Mukesh led to the break-up of their family's assets, Anil, the younger of the two, has grown his telecom, energy and infrastructure businesses apace--only to see his shares decimated by the global economic slowdown."

Source:Rediff.com

Top 20 Best Companies to Work For

Top 20 Best Companies to Work For

You would still expect Google or Microsoft to be the best technology company to work for. But wait a minute, you have a surprise coming. These super dads have been displaced by storage and data management services provider NetApp. NetApp (Previous rank: 14) has been ranked as the best tech company by Fortune in its annual list of '100 Best Companies to Work For'. Google, in fact, has dropped to No 4 this year. The company had topped the list for the past two years. If it is "employee enthusiasm for the legendary egalitarian culture," then, according to Fortune, NetApp takes the cake after six years on the list. Here is a list of how companies are ranked by Fortune according to the satisfaction levels of the employees working with them.

http://economictimes.indiatimes.com/articleshowpics/4075785.cms
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World's 10 best companies to work for
Happy employees are motivated employees and a huge contributing factor to any company's success. No wonder then, the top 10 great companies to work for -- as listed by Fortune magazine and the Great Place to Work Institute -- also do well when it comes to profitability.
Note: Market cap as on January 28, 2009
Company: NetApp
Rank: 1
Chairman, CEO: Dan Warmenhoven
Business: Specialises in proprietary network storage and data management.
Reach: Has over 130 offices worldwide, including US, Canada, Europe, South America, Asia, Pacific and Australia.
Market cap: $5.37 billion
Why: Greatplacetowork.com says, 'The essence of what fuels the quality of the workplace at NetApp is the high trust culture. Leaders reach out to employees, sharing information, support and time in a variety of ways. This generosity of spirit is reciprocated many times over, creating within NetApp its own version of a fail-safe networked organisation.'
Image: NetApp Chairman and CEO Dan Warmenhoven Photograph: netapp.com

Company: Edward Jones
Rank: 2
Managing partner: James D Weddle
Business: Offers financial products at an individual investor level. Currently serves more than 7 million clients.
Reach: Over 10,800 offices in the United States, Canada and United Kingdom
2007 revenue: $4.14 billion Total assets: $5,576,196-->
Why: Greatplacetowork.com says, 'Employees receive a whopping 149 hours of training on average a year, more than three times the 100 best average of 45. But Edward Jones doesn't just train people for the job they're doing. The management's philosophy is that employees who are passionate about their jobs will make the company a better place, so managers encourage people to develop skills even when they know the new skills will lead to a different job.'

More@http://specials.rediff.com/money/2009/feb/02slide2-best-companies-to-work-for.htm

Source:ET,Rediff.com

24 January 2009

Results:NTPC,SBI,ICICI,Sterlite, Rcom etc

SBI posts 37% rise in net profit

India's largest bank, State Bank of India (SBI) has posted a 37% rise in net profit to Rs 2478 crore from for third quarter of FY09 from Rs
1809 crores. Operating profit for the same quarter was up 22.5% at Rs 4482 crore as against Rs 3660 crore. The net income interest (NII) stood at Rs 5,758 crores ,as against Rs 4256 crore in the same period last year, a rise of 35%. Other income was up 38% to Rs 21,256 crore as against Rs 15,364 crore in the corresponding period last year. The total income rose 38% to stand at Rs 21,255 crores of this treasury gains was Rs 674 crore as against 644 crore in the corresponding period. Net interest margins improved to 3.15% from 3.01%. Bank's advances rose 28.5% to Rs 503,829 crore while deposits rose 36% to Rs 692,922 crore. Bank made a provision of Rs 515 crore for bad loan as against Rs 444 crore last year. Gross NPA rose to Rs 13,314 crore from Rs 11,182 crore while net NPA rose to 6864 crore from Rs 5610 crore. As a percentage to total advances, gross NPAs fell to 2.61% from 2.82% while net NPA was at 1.36% against 1.44%. Capital adequacy stood at 13.72% under Basel II norms. Bank officials said that write-back was to the turn Rs 513 crore. SBI made a provision of Rs 198 crore which is net of write-back. The bank would have book huge treasury gains this quarter as yields on g-sec fell sharply. The appreciation in value of bonds can not be booked profit, but banks can write - back access provisions made earlier. Shares of SBI ended down 4.34% on Friday, markets are closed on Saturday.

NTPC Q3 net jumps 26 pc Country's largest power producer NTPC on Saturday said its net profit rose by 26.4 per cent to Rs 2,250 crore for the quarter ended December. The company had reported a net profit of Rs 1,780 crore in the corresponding period last year, NTPC informed the Bombay Stock Exchange. For the nine-month period ended December, the net profit of the company stood at Rs 6,088 crore against Rs 6,075 crore in the year-ago period. The company recorded net sales of Rs 11,277 crore against Rs 9,331 crore in the same period last year. The company also declared an interim dividend of 28 per cent. Power regulator Central Electricity Regulatory Commission (CERC) recently increased the rate of return on equity from 14 per cent to 15.5 per cent for determining tariff as part of various incentives being offered to invite greater investments. The move would help power generating and transmission companies, including NTPC, and PowerGrid to get higher profitability, and thus, attract increased private investment.

ICICI Bank Q3 net profit up 3.4%

Rising NPAs and fall in business affect ICICI Bank's performance

Lower expenses and treasury gains saved the day for ICICI Bank. The bank reported a marginal rise in net profit for the third quarter ended
December 31,2008 at Rs 1272.15 cr as against Rs 1230.21 cr in the corresponding period of the previous quarter. The net profit for the three quarters ended December 31 was flat at Rs 3014.37 cr as against Rs 3007.89 cr. The results are below analyst expectation. The other income of the bank was marginally up at Rs 2514.54 cr as against Rs 2426.59 cr. The bank in a statement said that it has earned a treasury income of Rs. 976 crore in the third quarter, primarily by positioning its treasury strategy to benefit from the decline in yields on government bonds. The interest income of the bank was marginally down to Rs 7836.08 cr from Rs 7911.77 cr. The bank has shown a fall in interest expenses to Rs 5845.67 cr from Rs 5952 cr, while operating expenses saw a fall of 18.49% to Rs 1734.11 cr. The bank in a statement said it has pursued a strategy of lightening the balance sheet and prioritizing capital conservation, liquidity management and risk containment given the challenging economic environment. It has also placed strong emphasis on efficiency improvement and cost rationalization. During the third quarter, it continued with this strategy, while also taking advantage of market opportunities to increase its treasury income. The advances of the bank have seen a marginal fall to Rs 2,12,521 cr as against Rs 2,15,517 cr the previous year. The deposits of the bank have also seen a marginal fall to Rs 2,09,065 cr from Rs 2,29.779 cr the previous fiscal. The bank has seen a rise in non performing assets, which is likely to be on the back of rising bad debts in the retail portfolio. The gross NPAs of the bank have moved up to 4.14% (Rs 8,988 cr) from 2.96% (Rs 6,474.84 cr). The net NPAs of the bank have risen to 2.07% (Rs 4,400.23 cr) from 1.5% (3,227.82 cr). ICICI Bank Canada has posted a net profit of Canadian dollars 32.9 million. After accounting for the gains on buyback of bonds and mark-to-market provisions on the investment portfolio, ICICI Bank UK has posted a net profit of $1.4 million for the three quarters ended December 31. The Bank's capital adequacy ratio at December 31, 2008 on Basel II norms was at 15.6%.

Sterlite Industries Q3 net dips 37 pc at Rs 732 cr

Sterlite Industries on Saturday said that its consolidated net profit in the third quarter of the current fiscal declined 37.76 per cent at
Rs 732.31 crore from the corresponding period a year ago. NRI billionaire Anil Agarwal-led firm had a consolidated net profit of Rs 1,176.64 crore in the third quarter last financial year, Sterlite Industries said in a filing to the Bombay Stock Exchange. Consolidated net income of Vedanta Group firm also fell to Rs 4,445.55 crore in the December quarter of FY 2009, from Rs 5,232.20 crore a year ago. For the nine-month period ended December 31, 2008, the company posted a consolidated net profit of Rs 4,048.51 crore, an 8.67 per cent drop from the same period a last year. It had a consolidated net profit of Rs 4,433.23 crore in the December quarter of last fiscal. On a standalone basis, the copper producer registered a net profit of Rs 204.01 crore in the latest quarter, an 11.62 per cent decline compared with Rs 230.85 crore in the previous year. On Friday, shares of Sterlite Industries closed at Rs 239.45, down 1.68 per cent on the BSE.

RCOM disappoints St, Q3 net rises just 3%

Reliance Communications (RCOM), India’s largest CDMA operator, underperformed market expectations in the December quarter, as profitability
in the wireless and broadband business segments dropped significantly. The R-ADAG company is now planning a sharp cut in capital expenditure. The company posted a 2.7% rise in net profit to Rs 1,410 crore while revenues were up 20% to Rs 5,850 crore for the quarter. The telco added 5.3 million subscribers in the world’s fastest-growing telecom market during the period. ETIG had estimated RCOM’s net profit at Rs 1,669.4 crore on revenues of Rs 5,876.6 crore. RCOM chairman Anil Ambani announced a sharp cut in capex beginning next fiscal. “We will invest in the range of Rs 15,000 crore next fiscal, including Reliance Infratel. Our revised capex expectation for 2008-09 is Rs 25,000,” he said during an analysts conference call after the results. The company’s earlier capex guidance was Rs 30,000 crore for the current fiscal. “Peak capex is behind us and we will continue to go down from here,” he said, adding that capex numbers exclude funds earmarked for 3G (third-generation) spectrum and broadband wireless access (BWA) auctions. “We are on course to deliver free cash flows soon,” he added. Ebitda margins for RCOM’s mobile business reduced sequentially by 1.2% to 37.7%, as average revenue per user (ARPU) per month declined by Rs 20 to Rs 251. The telco’s ARPU during the December quarter is now much lower than rival Bharti Airtel’s Rs 324. Despite attractive tariff schemes and free minutes, RCOM reported a decline in minutes of usage to 410 from 423 per user per month. Even wireless revenue per minute dipped to 61 paise from 64 paise. However, the company said EBITDA margins will be stable in the medium to long term. Ahead of results, the RCOM stock slipped 4.5% to close at Rs 160.15 on Friday in a weak Mumbai market. Mr Ambani said there is a strong demand for NLD bandwidth from enterprise customers. “We are targeting Rs 1,000-crore market share in the next two years out of the total Rs 5,000-crore addressable market,” he said. RCOM’s tower arm Reliance Infratel has commissioned over 50,000 towers till now and is in discussion with operators for infrastructure sharing.

Torrent Power Q3 net up 72 pc at Rs 102 cr

HCL net up 12% at Rs 373 cr24 Jan 2009, 0018 hrs IST
HCL Technologies, one of India’s top five software exporters, warned on Friday its margins could come under pressure as customers faced a choppy economic environment, as it posted a 12.1% rise in third-quarter net profit.

Tech Mahindra Q3 net up 12 pc at Rs 222.90 crore 23 Jan 2009, 1646 hrs IST
Software firm Tech Mahindra reported 12% growth in net profit at Rs 222.90 crore for third quarter ended Dec 31, 2008.
IDBI Bank Q3 net up 27% at Rs 223 crore 23 Jan 2009, 1620 hrs IST
IDBI Bank reported a 26.61% growth in net profit at Rs 222.63 crore for the third quarter ended December 31, 2008.
Vijaya Bank posts 23.73% rise in net profit 23 Jan 2009, 1555 hrs IST
Vijaya Bank has posted a 23.73% rise in net profit to Rs 157 crore in the third quarter ending December 09 as against Rs 127crore reported last year in the same period.

Divis Labs net profit was at Rs 79.5 cr

SBI Q3FY09 PAT up 37% to Rs 2478 cr

RNRL Q3 consolidated net profit 24.21 cr

IDBI Bank Q3 net profit at Rs 222.6 cr

Canara Bank Q3 net profit at Rs 701.5 cr

Union Bank of India Q3 net profit at Rs 672 cr

Voltas Q3 PAT at Rs 42.41 cr

3i Infotech Q3 net profit at Rs 27cr

Source:ET,IE etc

Torrent Power Q3 net up 72 pc at Rs 102 cr