Dalal Street

The Software Technology Parks of India (STPI) scheme, which provides for tax exemption to export oriented IT companies under Section 10 A was supposed to end in March 2009. However, members of STPI had appealed to the Finance Ministry to extend its STPI scheme beyond March 2009 by viewing the issue sympathetically. The Government has extended the same until 2010.

The BSE IT index was up 5.48% to 4,247.48. Satyam Computer (up 8.36% to Rs 480), HCL Technologies (up 8.14% to Rs 287), NIIT Technologies (up 6.65% to Rs 137.15), Tech Mahindra (up 6.59% to Rs 870), Infosys Technologies (up 4.81% to Rs 1,745), Wipro (up 4.28% to Rs 477.30), and TCS (up 3.74% to Rs 916.05), surged

In the Monetary policy review, the RBI has raised CRR by yet another 0.25% TO 8.25%. CRR hike is effective from May-24, 2008. It has left Bank Rate, Reverse Repo Rate and Repo Rate unchanged.

RBI has set a high priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while sustaining the growth momentum.

Softened GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent. Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference for bringing it close to 5.0 per cent as soon as possible. [How are you going to do it with every Industry functioning as a Big Lobby ? Looks to me just an empty assurance. ] Going forward, the resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a medium-term objective. [Is the RBI Kidding ?]

The limit of bank loans to individuals for housing having lower risk weight of 50 per cent enhanced from Rs. 20 lakh to Rs. 30 lakh.

Hindustan Zinc Ltd (HZL) recorded an impressive 68.3% FY08 EBITDA margins despite zinc LME prices decreasing by 17% (average prices of USD 2700 in FY07 to USD 2400 in FY08) and rupee appreciating by 11% (from INR 44 to INR 39 per USD) in FY08.

In FY08 HZL recorded net sales of INR 78,780 mn as against INR 85,600 mn in FY07, a decrease of 8%. EBITDA margins in FY08 stood at 68.3% as compared with 74.8% in FY07. In Q4FY08 HZL’s net sales stood at INR 22,660 mn as compared with 20,210 mn in Q4FY07. EBITDA margins declined by 450bps as compared with Q4FY0. Adjusted net profits for the quarter increased by 20 bps on account of higher other income and lesser tax incidence as compared with Q4FY07.

FY08 zinc-lead refined metal production increase by 22% and 31% YoY respectively; Q4FY08 zinc-lead metal production increase by 43% and 35% QoQ respectively. The Chanderiya Hydro II smelter was commissioned in a record time of 20 months, 6 months ahead of schedule.

In FY08 HZL through its continued exploration activity increased its net zinc reserve by 22.9 mn TPA and its net contained zinc- lead metal by 3.4 mn TPA (up 14%) at its Sindesar and Rampura mines.