Category: Breaking Corporate India Earnings News

Ramalinga Raju’s erstwhile Satyam Computer Service now Mahindra Satyam after a whopping 500 day accoutning marathon has re-stated results. Here is a take on them it from the investor’s perspective.

Company recorded revenues of Rs54.8 bn for FY2010; (2) EBITDA margin of 8.3%; (3) net loss of Rs1.2 bn after including extraordinary item of Rs4.2 bn. Extraordinary items pertained to severance compensation for employees (Rs0.9 bn), forensic investigation expenses (Rs1.1 bn) and write down in value of assets of subsidiaries (Rs2.2 bn), (4) cash and cash equivalent of Rs22 (more…)

Mines – The Natural Resources Wealth of Indians is in the hands of few Politicians and Mafia Dons. In order to curb il-legal mining, the center has proposed a new bill Mines and Minerals (Development and Regulation) Bill, 2010 headed by Finance Minister Pranab Mukherjee. [ This could be a complete eye wash for innocent Indians as il-legal mining is across all Political Parties across the nation]

Some important provisions in the Bill, especially those relating to sharing of 26% equity/profits, are vaguely drafted. Read verbatim, (more…)

The long awaited revision to the WPI series was finally effected today with the release of the August inflation numbers. What’s changed ? At the top level – Primary articles 20.1%, Fuel 14.9% and Manufactured Products 65%. The key changes visible are – Increase in number of items from 435 to 676 items (2) 62% of the index comprises new items with
the manufacturing component seeing the maximum change (3) Increase in the number of price quotations from 1918 to 5482. All of these changes are positive and will help in making the WPI more broad-based and representative of the (more…)

Roads – The Most Basic Infrastructure which India Lacks today will be different few years from now. Following lackluster award activity over the past decade and modest improvement seen in FY10, award activity saw significant uptick in April- July 2010, at about 2,800 Kms, averaging 23.5 Kms/day (vs about 3,000 Kms in FY10). Although execution has been slow (averaging 4.9 Kms/day over the same period), we believe it will pick up substantially in the post monsoon season given current low bottlenecks on financing and construction.

Driven by regulatory and policy changes for the roads (more…)

Post L&T IDPL analyst meet we reiterate that Hyd. Metrorail (HMR) project may generate equity IRRs of 14-17% as a 24% hike in its project cost compensate for higher traffic / realty estimate. IDPL made a good pitch to improve visibility esp. of HMR. With Infra portfolio of Rs400bn IDPL intends to focus on execution v/s wins. A two year EPS CAGR of 27%, creation of growth vehicles in power (more…)

We have been able to obtain a copy of the Direct Tax Code Bill as Introduced by the Government in the Lok Sabha. As discussed earlier by our Analysts, the content in the new bill is very similar. Major Changes apart from what is already discussed is,

• Applicable from 1st March 2010. That means it will be applicable for Citizens filing IT returns on or after April-1st 2013.
• 5% Dividend Income Distribution tax to be Paid by MutualFunds [AMCs] and ULIPs [Insurance companies]

(more…)