Month: January 2008

HCL Technologies:
Revenue for the quarter was $461m (exp: $462m), growth of 7.5% qoq. Net profit came in at Rs3.11 b (exp: Rs3.08 b), an increase of 9.6% qoq. On margins, HCL Tech did well to absorb the negative impact of the customer summit related costs and bonus amendment adjustment.

IT Services did well again with a growth of 8.4% qoq. Volumes increased ~7.4% qoq while pricing was up ~2% sequentially. EBIT margins improved slightly qoq to ~18.1%. HCL Tech’s US revenues increased 9% qoq while BFSI revenues were up 9.3% qoq.

Wipro:
Wipro reported revenues of Rs.56.4b (our exp: Rs.56.6b), up ~11% QoQ and net profit of Rs.8.3b (our exp: Rs.8.4b), up ~2% QoQ. Global IT Services reported revenues of $910m, up 14% QoQ with a ~150bp EBIT margin decline (primarily due to Infocrossing integration).

Organic growth of 7.4% in Global IT – Organic revenues rose 7.4% QoQ; volumes increased 6.5% while pricing was up 0.5%. Onsite realizations were up 1.3% QoQ while offshore realizations remained stable in the quarter. Better pricing realization and employee mix resulted in stable margins for organic business – despite wage hikes and rupee appreciation.

Guidance of 5% revenue growth – Wipro Global IT Services revenue guidance for 4QFY08 is $955m, an increase of ~5% – is in line with the Infosys guidance for the quarter.

The board of Chowgule Steamships has passed an enabling resolution for making investment over a period of time up to Rs 28 crore in Chowgule Ports & Infrastructure, which proposes to undertake port and ship repair infrastructure projects in Jaigad.

Unity Infraprojects has received the letter of intent dated 16 January 2008 from Magarpatta Retail for civil construction works of the proposed building for Magarpatta Retail Mall Project at Magarpatta City, Hadapsar, Pune. The contract value is Rs 102.14 crore (exclusive of VAT (WCT) & service tax) and the project is to be completed with 9.5 months from commencement of work.

Sunil Hitech Engineers on which we had recommended a BUY has informed us that the company has successfully raised Rs 81 crores through Qualified Institutional Players (QIPs) route. A total of 22.50 lakh shares (face value of Rs 10) were placed with 5 top foreign and domestic institutional investors at Rs 360 per share. Avendus Capital was the sole Global Co-ordinator & Lead Manager to the QIP.

Following this placement the equity shares capital of the company has increased to Rs 12.28 crore from the existing Rs 10.03 crore. The market cap of the company is around Rs 374 crore.

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries’ total income rose 23.01% to Rs 34,831 crore in Q3 December 2007 over Q3 December 2006. Substantially higher refining margins boosted the bottomline. RIL earned a refining margin of $15.4 per barrel in Q3 December 2007 compared to $11.7 per barrel in Q3 December 2006.

Reliance Industries Q3 PAT RS.3882CR VS RS.2799CR YOY. These numbers exclude the profit from sale of Reliance Petroleum Shares.