Category: Breaking Corporate India Earnings News

Here is some data from HSBC on Indian Rupee Versus USD and Euro

INR /USD, end-year 45.61 43.46 45.05 44.26 39.00 37.50[2008E] 36.00[2009E]
INR /EUR, end-year 55.25 59.11 53.14 58.36 56.55 50.63[2008E] 46.80[2009E]

FIIs darling in India, Infosys has been deserted for the past quarter since the appreciation of the Indian rupee. Ahead of its results tomorrow, the stock is up 3% at Rs 2,120. Infact all the IT stocks are up on expectation of earnings revision since the cost of VISA pressure is accounted for in Q1.

A total of seven brokerages expect a between 0.58% fall to a 4.6% rise in Infosys’ consolidated net profit as per Indian GAAP to between Rs 1,072.70 crore to Rs 1128.70 crore in Q2 September 2007 compared to net profit of Rs 1,079 crore Q1 June 2007. They expect a between 6.8% to 9.7% growth in Infosys’ revenue at between Rs 4,028.60 crore to Rs 4,138.40 crore in Q2 September 2007 compared to revenue of Rs 3,773 crore in Q1 June 2007.

Infosys had cut EPS guidance in rupee terms to a growth of 15.6% to 16.8% compared to the earlier guidance of 20% to 22% growth. It had also slashed revenue guidance in rupee terms to 16.9% to 18.3%, from earlier guidance of a growth of 22.6% to 24.6%.

All the IT stocks are up on high expectations from Labour Arbitrage IT Services Company. Our analyst is of the view that, the rupee saga will continue and put pressure on IT services companies. Infact it is best to explore other companies such as Capital Goods, Construction and Finance in India.

Glenmark Pharmaceuticals has received final approval from the U.S. food and drug administration for the marketing the first generic version of trileptal (oxcarbazepine). The approval is for marketing oxcarbazapine tablets in three strengths – 150 mg, 300 mg and 600 mg.

Trileptal is a widely used medication to treat epilepsy that has FDA approval.

Larsen & Toubro has received engineering and procurement (E&P) order for setting up high technology methyl amines & dimethyl formamide plants for Methanol Chemical Company (Chemanol). L&T will also provide the technical services for erection and commissioning of the plant.

Chemanol is a private sector enterprise, operating grass roots, second-generation petrochemical complex located in the Al Jubail Industry city, Saudi Arabia, which manufactures formaldehyde and its derivative products.

Tata Motors has hiked the prices of its vehicles to offset the higher input costs and because of costs related to meeting stricter safety norms.

iGate Global Solutions’ net profit surged 124.33% to Rs 23.78 crore on 0.25% rise in sales to Rs 187.86 crore in Q2 September 2007 over Q2 September 2006.

iGate is a subsidiary of iGate Corp, a Nasdaq-listed company. Its services include consulting, enterprise data management and data warehousing, business intelligence and analytics, design, development, system integration, package evaluation and implementation, re-engineering and maintenance.

The scrip had underperformed the market in the one-month to 8 October 2007, adding 5.66% as against the Sensex’s 12.19% gain. It had also underperformed the market in the past three months, declining 11.01% against the Sensex’s 16.53% rise.

The small-cap software firm has an equity capital of Rs 12.66 crore. Face value per share is Rs 4.

Kaveri Telecom Products has acquired Til-Tek and DCI, two US companies during the last one year. Til-Tek is a leader in antennas and DCI in RF products and filters. The company has now acquired technology, intellectual property rights (IPR) and patents for base station antennas of erstwhile Sigma wireless, Ireland from PCTEL, Chicago, USA. With this acquisition, the company now has the capability to manufacture base station antennas incorporating the latest technologies on par with the best in the world. Both Indian and global customers would be addressed by the company in this area. This acquisition also gives the company access to customers and vendors of Sigma wireless in Europe. The acquisition also brings into the company’s fold seven international patents.

The company is poised for a 100% growth over last year and has already started building infrastructure in line with the projected growth over the next three years.