Category: Breaking Corporate India Earnings News

Videocon Industries has incorporated an SPV, Global Energy Inc., which is a wholly owned subsidiary of the company, to explore for, develop and exploit petroleum block JPDA 06-103 and the export and marketing of that petroleum and all activities. As such, Global Energy Inc., is part of the consortium which was awarded the JPDA 06-103 production sharing contract by the timor sea designated authority.

The participating interest of Global Energy Inc., in the JPDA 06-103 production sharing contract is 25%. JPDA is within the bonaparte basin with estimated 23 Tcf of undiscovered EUR gas reserves. Besides gas, there could be substantial condensate recovery.

In production sharing contract 06-103, leads 103-A and 103-C have been identified with recoverable unrisked potential of 260 million barrels of oil or 1300 BCF gas and 130 million barrels of oil or 571 BCF gas respectively.

In JPDA 06-103 a contract for 1657 sq kms of 3-D data acquisition has been awarded at an estimated cost of $18.6 million. 1055 sq kms of reprocessed 3-D data to the north of the block has already been acquired from Fugro. With this it would facilitate zeroing in on the 4 well locations for the commitment wells included in the minimum work programme. The company’s share in the current work programme is US $ 18.9 million.

JSW Steel has set up JSoft Solutions, a Bangalore-based IT company, that is likely to be spun off as an independent vertical.

Meanwhile, JSW Steel is reportedly planning to raise around Rs 3400 crore in the international markets. The fund raising is expected to be done over the next six to 12 months. The funds are aimed at helping the company’s Rs 17000-crore expansion plans.

The current price of Rs 646 discounts its Q1 June 2007 annualised EPS of Rs 112.6 (based on consolidated results) by a PE multiple of 5.73.

Sterlite Optical Technologies on 14 August 2007 has received a contract from BSNL for manufacture and supply of high fiber count ribbon fiber optic cables, which would be installed in BSNL’s Pan—India Optical fiber Access Network (OAN). The contract is valued at Rs 380 million and supplies would be completed within the next 6 months.

Petron Engineering Construction has announced that the company had participated in bid document for fired heaters and they have accepted company’s bid and accordingly the company has been awarded contract for fired heaters for HCU / DHDT for Bina Refinery Project developed by Bharat Oman Refineries for a contract value of Rs 127 crore, inclusive of all taxes, duties and levies and MP VAT on works contract.

The Tata Group Controlled, Indian Hotels Company [Taj Mahal Brand of Hotels] announced during the market hours today, 13 August 2007 that the board of directors of the company has decided to make a rights offer of two simultaneous but unlinked issues to the shareholders of the company.

The rights issue of equity shares is in the ratio of 1:5 (1 share for every 5 shares held ) at a price of Rs 70 per share. The company will raise Rs 844 crore through this issue.

The second rights issue is in the ratio of 1:10 of a 5-year 4% unsecured convertible debentures of the face value in the range of Rs 150 to Rs 180 convertible after 2 years at a conversion price in the range of Rs 150 to Rs 180 into equity shares of the company. The amount raised through this issue would be in the range of Rs 900 crore to Rs 1080 crore.

The objective of the two issues is to meet the company’s long term financing needs for capital expenditure and growth plans, including possible acquisitions

Bangalore based Real Estate company Sobha Developers QoQ profits declined from Rs 61.9 crore to Rs 40 crore for Q1-FY08.

Profits during Q1-FY07 was Rs 17 crore. Details are awaited from the management of the company. Bangalore has witnessed tremendous slowdown in Real Estate prices in the past few months where Sobha and Purvankara have their major projects.

Larsen & Toubro (L&T) has announced that the company has secured two more design and build contracts from Delhi Metro Railway Corporation (DMRC) for the construction of the underground station at Saket (Delhi) and a tunnel as part of its phase II project. Valued at Rs 203 crore the new station and tunnel will come up between Central Secretariat and Qutub Minar Corridors of Delhi Metro.

To be completed in 30 months, the construction of the Saket station involves 1500m of tunneling. The length of the station will be 284m. In addition, the construction involves a 945m link tunnel and a 260m Ramp, both of which to be completed in 24 months. Top down construction method will be adopted for the underground station at Saket (Delhi) while cut & cover method will be used for tunneling and NATM for 185 m of twin tunnel.