Month: April 2008

KEC International has been awarded two separate contracts by Power Grid Corporation of India for supply and construction of 400 KV double circuit (QUAD) Edamon – Muvattupuzha transmission line (part – I & II) in the state of Kerala.

The total value of both the contracts is Rs 155.24 crore. The line is associated with grid strengthening scheme for Kerala I & II of Powergrid Network.

The job involves supply of towers, line materials, erection and commissioning. The total length of both the lines is 150 kms and the project is scheduled to be completed by March 2010.

Aban Offshore has informed us that the company has signed a contract with Exxon Neftegas for the deployment of the jack-up rig Murmanskaya Offshore Russia for a 2 well programme. The estimated revenues from the contract (with an estimated duration of approx 160 days) is approximately US$ 34 million.

The deployment is to commence in direct continuation of its present contract which is expected in June 2008.

We have obtained the Guidance given by the Management of Infosys Technologies for FY2008-09.

• For Q1 ending June-30, Income is expected to be Rs 4570 crore – YoY growth of 21%
• EPS is expected to be Rs 20.7, growth of mere 15.2% compared to same quarter previous year
  
• For the full year Income is expected to be Rs 20,000 crore a 20% growth YoY
• For the full year, EPS is expected to be Rs 92.32 a YoY growth of just 16.3%, which is very disappointing in our opinion

As Infosys continues to add huge Labor without significant increase in any technological innovation, the company’s performance is expected to be lackluster. We believe in Cash Flow and not Real Estate assets accumulated by the company threatening various state Governments to pull out of their state. Every rise in the stock should be considered as an opportunity to Exit and enter other growth stories.

We have obtained the results of Infosys Technologies for FY2007-08.

• Total Income was Rs 16,692 crore representing a YoY growth of mere 20.1%.
• Net Profit after Tax was at Rs 4,659 crore, a YoY growth of Rs 20.8%
• EPS stands at Rs 81.53
• Final Dividend of Rs 7.25 / share and a special Dividend of Rs 20 / share
• The company’s Labor strengths stands at 91,187