Dalal Street

GVKPIL announced that its board approved acquisition of a 12% stake in Bangalore International Airport Ltd for consideration of ~Rs4.846bn from Flughafen Zuerich AG. GVK intends to fund the acquisition via debt. The company has also recently raised ~$150mn through the QIP route.

Bangalore airport is the 4th largest airport in India in terms of passenger traffic handled – it handled 9.2mn passengers in 2008. The airport is spread over 4,000 acres of land; with 215 acres of land earmarked for commercial development. (more…)

MPSEZ 2QFY10 recurring PAT grew +22%YoY despite slow growth in port income +5%YoY on rebound in high margin SEZ income +41% & 30% lower tax on SEZ benefit on port income. Adani Power has scaled-up its Mundra Project by 70% to 7.9GW, which will drive long-term assured volume for MPSEZ’s new coal terminal.

Mundra Port was one of the few Asian ports to report 2QFY10 cargo volume growth of +9%YoY to 10.1mmT led by liquid cargo +55% and crude cargo +43%, Coal cargo +19% despite Minerals (more…)

State Bank of India, the largest bank and banker to every Indian reported a 2Q FY10 net profit of INR24.9bn, up 10% y-o-y and 7% q-o-q. Even though NII growth was muted on a y-o-y basis on a q-o-q basis it was encouraging. The net interest margin recovered by 25bp q-o-q to 2.6%, led by the retiring of high-cost bulk deposits.

Key positives: margins, fees and costs have moved in the right direction – together. Margins were up 25bps qoq (from a low 230bps), but management’s guidance of a 10bp per quarter expansion will likely disappoint possibly higher market expectations. (more…)