Dalal Street

Motilal Oswal reported 25% Q-o-Q decline in Q1FY09 in revenues to INR 1.4 bn (15% Y-o-Y growth), primarily led by 27% fall in brokerage and related income. Increase in margin funding book to INR 3.4 bn and revenue booking from 7 investment banking deals provided some support to the topline.

Motilal Oswal witnessed ~6% sequential decline in average daily trading volumes to INR 29 bn, as against industry wide decline of 15%. However, blended commission yields seem to have came off significantly due to change in proportion of cash and derivative volumes.

The company reported a PAT for Q1FY09 at Rs 262 mn.

The Tanti Group, promoters of Suzlon Energy have bought Honiton Energy Holdings plc (Honiton) which develops and operates wind farms in China with an installed capacity of 50MW. The deal is routed through Singapore-based holding company (Colossus Holding), in JV partnership with Arcapita Bank, Bahrain.

Honiton’s acquisition is not routed via Suzlon’s books of account. Honiton’s 50 MW wind farm is composed of 40 units of Suzlon’s 1.25MW turbine Honiton also owns 16.65% interest in REpower North (China) Ltd., a JV with REpower Systems AG (50.01% stake) and North Heavy Industrial Corp (33.34% stake) licensed to manufacture & supply 2MW wind turbines to wind developers in North China, including Honiton.

Tanti Group’s ownership in Honiton (which plans to ramp up capacity to 1650MW by 2012) could potentially provide captive orderbook for Suzlon in future.

The Squabbling between the Ambani brothers which was off for few years is all set to take the center stage again. Guess, Mukesh Ambani shot himself into his foot by unnecessarily dragging Anil Ambani into a new controversy surrounding Reliance Communications and MTN deal. Mukesh who had to part with Reliance’s Telecom venture to Anil after the family division was jealous of Anil’s success had the latter been able to takeover MTN of South Africa which would give the combined entity [RCOM + MTN] higher EBITDA than RIL – Mukesh’s cash cow.

This time around Anil Ambani was very lucky and made the right move at the right time to influence the Government of India led by the Prime Minister Dr. Singh and Congress President Sonia Gandhi through his trusted lieutenant – Amar Singh.

Amar Singh has raised the issue of Reliance Petroleum enjoying EOU benefits when India as a nation is in deep Oil crisis. The Government under pressure from various other parties is seriously considering to levy a Tax / Duty on such refineries [Reliance Ind, Cairn and Essar] to offset for the losses incurred by PSU refineries and Oil companies. This led to unloading of RIL stock on the Mumbai Stock Exchange and the stock has hit a day’s low of Rs 1,997 breaking the psychological Rs 2,000 support level.

Instead of fighting over family business and supremacy, get into the wonderful world of R&D and innovation and sky is the limit to your business.