Indian Equity Research and Investment Strategy
iGate has posted decline of 36.72% in the first quarter net profit at Rs 14.3 crore (Rs 143 million) versus Rs 22.6 crore (Rs 226 million) in the earlier quarter.
The revenue was also down 5.09% at Rs 199.4 crore (Rs 1.99 billion) as against Rs 210.1 crore (Rs 2.1 billion).
Infosys Technologies missed the street expectations and marked the end of an era of QoQ. QoQ Net Profits Fell to Rs 1079 crore in the first quarter of FY08 against Rs 1,144 crore in the previous quarter.
Infosys Q2 and FY08 guidance
The company is expected to post growth of 16.9-18.3% in the revenues in FY08 at Rs 16,238-16,433 crore. Infosys is expected to deliver growth of 13-14.1% in FY08 EPS at Rs 78.20-79.
FY08 EPS (Excluding tax write back) is seen at Rs 77.31-78.11.
This FY08 revenue outlook is based on rupee rate of 40.58 per USD.
The Q2 revenues are seen at Rs 3,952-3,993 crore, a growth of 4.74-5.83% and EPS seen at Rs 18.88. Net profit is expected to go down 0.05% at Rs 1078 crore. Infosys revised guidance in the dollar terms in upward and in Rupee terms down.
Results of HDFC Bank for Q1-07 [Quarter ended June] were in line with Citigroup and Dalal Street Analyst Expectations.
HDFC Bank reported a net profit at Rs 321 crore for the quarter. The net interest income has gone up by 27.46% at Rs 1,042.2 crore (Rs 10.42 billion) Operating profit also seen a surge of 41% in first quarter at Rs 783.68 crore (Rs 7.83 billion).
The Board approved raising equity USD 1 billion or Rs 4200 crore, whichever is higher, from domestic or international markets and Allotted shares worth Rs 1390.1 crore to parent HDFC via preferential issue.
Pursuant to the resolution passed by the shareholders on 18 October 2005, Welspun-Gujarat Stahl Rohren issued FCCBs of aggregate amount of US$75 million.
In this connection, the company has set up GDR programme on 06 July 2007 with the listing approval from the Singapore Stock Exchange Securities Trading wherein the FCCB holders may opt for conversion of their bonds in to a number of GDR equal to the number of equity shares that would have been allotted had the bondholder opted for conversion in to equity shares.
The company made this announcement during trading hours today, 10 July 2007.
Here is a quick snapshot of how the portfolio of our recommended funds changed during June-2007.
HDFC Equity Fund:
The fund manager reduced exposure to ONGC, Exide Industries and Infosys Technologies. He bought large quantity of of SBI. Significantly added L&T, United Phosphorous and HT Media. Also added Glaxo Smithkline Consumer Healthcare, Dishman Pharma and Pidlite Industries. Complete Exit from ITC and Century Textiles and Industries.
HDFC Top-200 Fund:
The fund manager bought Infosys Technologies and ITC in small lots. Drastically reduced positions in ONGC and Wipro. Also sold Bharti Airtel, Reliance Petroleum, TCS, Maruti and GAIL.
HDFC Prudence Fund:
Significantly added SBI and Ahmednagar Forgings [Amtek Auto group company]. Also added Nestle, Shanti Gears and Divis Labs. Sold small chunks of Punj Lloyd and Eveready Industries.
Complete exit from Century Textiles and Industries and Ceat Tyres.
So in all, SBI is bought across the board. ONGC and Century are sold heavily. Check back, will update on the SIP performance for the quarter ended June-2007.
This is according to Citigroup’s Technical Research [Click on the chart to expand]
Taking price extreme at 12,316 (16 March 2007), the index completed Wave (1) at 14576 (30 May 07). Wave (2) corrected the advance in Wave (1) towards 13,946 (low of 12 June 07). Currently we are into Wave (3) of the advance, which has a minimum price target of 16,206 (taking Wave (1) = Wave (3) in “Price Movement”. Wave (3) target of 16206 is derived as 2,260+ 13,946.The levels of 2,260 is derived as the distance between start of Wave (1) at 12,316 and end of Wave (1) at 14,576: [i.e. 14,576-12,316=2,260].The level of 13,946 is the assumed end of corrective Wave (2).
Technically, the sensex is headed towards 16,206.