Pyramid Saimira Theatres (PSTL) operates in all categories – Film exhibition – multiplexes, cineplexes and single screens; Film distribution and also in content production for TV / films. Headquartered in Chennai, it commands 44 multiplexes with 113 screens, and 590 single screens. It has now expanded its (film exhibition) business to Malaysia, China and the US. Its film exhibition model is asset-light (all the theatres are rented not owned). PSTL has recently ventured into film production and TV production by launching a subsidiary, Pyramid Saimira Productions Limited (PSPL). PSTL uses an end-to-end Digital Cinema Solution in few of its theatres, and this is set to revolutionize the distribution and exhibition system in the Indian film industry. (more…)
Year: 2008
Citi doawngrades Jaiprakash Associates
Citigroup research has cut the target price estimate for Jaiprakash Associates. After a 50%-plus correction, the stock is close to stress-case value of Rs196. Indeed this is a very bold and conservative move because Citi values JP Associates on business valuations and not private-equity valuations, which is evident from the fact that we value (1) Jaypee Power Ventures at a ~60% discount to P/E valuations, and (2) Jaypee Infratech at a ~37% discount to P/E valuations. (more…)
Hold Tata Communications – Indiabulls
Tata Communications Limited (TCL), in third quarter revived out of the sequential drop witnessed in Q2’08. The key highlights of the quarter were: 9.8% qoq increase in sales to Rs. 10.4 bn on the back of robust revenue growth of 31.7% of Enterprise and carrier data services. EBITDA rose marginally by 0.9% qoq to Rs. 1,535 mn due to a hike of 107 bps in operating costs and 58 bps in network costs. Enterprise and data services touched EBITDA margin of 91% for the first time. (more…)
HPCL’s Rs 576 crore order to L&T
Larsen & Toubro has been awarded a Rs 576 crore order by Hindustan Petroleum Corporation (HPCL).
The scope of work for this prestigious LSTK order, valued at Rs 576 crore, includes residual process design, detailed engineering, procurement, supply, transportation, storage, fabrication, inspection, construction, installation, testing, mechanical completion, pre-commissioning, commissioning and performance guarantee test runs for the said project.
The order was bagged by L&T’s E&C division’s refinery projects business unit against keen competition on the strength of its track record of having executed several high operating pressure refinery projects, meeting exacting refinery quality requirements and conforming to stringent delivery schedules.
Spanco Tele to computerize Maharashtra Ration System
Spanco Telesystems & Solutions has been awarded a letter of intent by food, civil supplies and consumer protection department, Government of Maharashtra, appointing the company as sole & total solutions provider for computerization of the entire rationing system in the State and issue ration cards on build, own, operate and transfer and the project duration will be for a period of 3 years.
This contract shall give impetus to Spanco’s growth plans and strengthen Spanco’s future business opportunities and potential and also put Spanco in a leading position in all important government space, particularly considering the government spending and expansions programmes and budget allocations in the area of telecom & IT / ITES segment of which Spanco will be a direct beneficiary. The future business growth and outlook continues to be robust. The total value of the project would be approximately Rs 125 crore.
Pay Commission – Threat to India’s Fiscal Consolidation
The government-appointed Sixth Pay Commission is due to announce its recommendations on the magnitude of wage and pension hikes for central government employees. Assuming that the Sixth Pay Commission announces a hike in salaries and pension slightly lower than that announced under fifth pay commission, we believe that that the total central government salaries and pension payments could increase by about 0.4% of GDP (Rs300 bn) to 2.5% in F2009.
The combined wage and pension costs of the state governments to rise by about Rs900 to Rs1000 billion spread over the next 2-3 years. Adding to the woes is the recent farm loan relief spending and the pay hike impact will decidedly reverse the six-year trend of reduction in government deficit.
Be prepared to face a Indian Donwgrade on the Macro Economic Front.