Category: Breaking Corporate India Earnings News

As per reports, Infraco, South Africa’s third network operator, which has been formed to lower the broadband costs, is planning to invest close $700 million to build an undersea cable network. The cable network will connect Africa, America and Europe. Tata group-controlled Videsh Sanchar Nigam (VSNL) may invest close to $200 million for the cable project.

The South African telecom regulator has invited strategic partners to invest in the submarine cable project. Since VSNL has its own undersea cable projects across the globe, it is interested in equity participation in Infraco’s cable project.

Currently, the Tata group, through VSNL and Tata Africa, has a 26% holding in South Africa’s second national telecoms operator, Neotel. The Tata Groups Telecom ventures when clubbed together make them the third Largest Telecom Service Provider in India.

Financial Highlights:
For the quarter ended Jun’07 Jindal Saw reported a 34% rise in Net sales revenue to Rs 1285.53 crore. The OPM (Operating Profit Margin) increased by 100 basis points to 12.5%. Operating profit for the quarter ended Jun’07 stood at Rs 160.59 crore, which was 45% higher as compared to corresponding previous quarter last year. The ensuing PAT for the quarter ended Jun07 was Rs 82.05 crore which was 99% higher when compared with corresponding previous quarter last year.

The order book is approx. US$ 1.225 billion (Indian book approx. US$ 725 million and app. US$ 500 million at USA branch). The orders are slated to be executed by June 2008.

Targets sales revenue to the tune of Rs 5000- 5200 crore for the year ending Sept’07. The sales target for the year ending Sept’08 and Sept’09 is around Rs 6000-6200 crore and Rs 7200 crore respectively.

Capacity utilisation of Kosikana plant, which is longitudinal plant, is 45-50%.
Capex to the tune of Rs 450 crore upto Sept’08. The total Interest cost for the year ended Sept’07 is expected to be around Rs 120 crore. The Depreciation for the FY 2007-08 would be around Rs 75-80 crore.

Rajesh Exports was rated as India’s No. 1 investor friendly company among India’s all listed companies. The rating was announced by the leading business magazine BUSINESS TODAY. The company achieved this significant milestone ahead of some of India’s highly rated service and manufacturing companies.

The rating was arrived as a result of a comprehensive exercise conducted among all the India’s listed companies including the SENSEX and NIFTY companies.

If you don’t agree, you may send your comments to “feedback @ DalalStreet.Biz”

Net profit of Gitanjali Gems rose 55.59% to Rs 32.83 crore in Q1 June 2007 over Q1 June 2006. Sales jumped 31.26% to Rs 653.85 crore in Q1 June 2007 over Q1 June 2006.

Shares of the second largest diamond maker by sales in India had hit a high of Rs 280, which is also its all-time high. The current market price of Rs 275.05 discounts its Q1 June 2007 annualized EPS of Rs 21.69 by a PE multiple of 12.68

Punj Lloyd has signed a memorandum of understanding (MOU) to invest Rs 403 crore for acquiring a 25.1% stake in Pipavav Shipyard. This will provide it an access to fabrication facilities for platforms, rigs and jackets to exploit the opportunities in this sector.

Orders to the Company:
On 2 August 2007 that Sembawang Engineers and Constructors (Sembawang), a subsidiary of Punj Lloyd (PLL), secured a contract worth over Singapore dollar 250 million for sub-structural works at the Sentosa Integrated Resort Development.

Punj Lloyd has signed a MOU with the Ramprastha Group for the development of multi-storied residential housing through a 50:50 joint venture of the company and the Ramprastha Group.

The MOU envisages development of residential apartments by the joint venture in Ghaziabad in approximately 29 acres in Vaishali in the first phase. In the second phase, substantial real estate development is proposed in Indrapuram and Gurgaon, where the Ramprastha Group holds a large land-bank. Punj Lloyd is expected to make an initial investment in the joint venture to the extent of Rs 180 crore and a similar initial investment is planned by the Ramprastha Group.

Auto sales have been on a decline. Sales of Bike Major Hero Honda was down from 2,35,314 sold in June-06 to 2,01,191 units in July 2007. A decline of 14.5%.

Hero Honda Net profit dipped 20.14% to Rs 189.84 crore in Q1 June 2007 over Q1 June 2006. Sales inched up 3.3% to Rs 2447.99 crore in Q1 June 2007 over Q1 June 2006.

Tata Motors’ vehicle sales fell 6.6% in July 2007 to 42,098 units over July 2006. Sales of commercial vehicles dropped 3.8% to 20,705 units in July 2007 over July 2006. Exports fell 17% to 4,382 units.

Net profit rose 22.2% to Rs 466.76 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 4.7% to Rs 6056.82 crore in Q1 June 2007 over Q1 June 2006.