Category: Breaking Corporate India Earnings News

FMCG major Hindustan Unilever (HUL) has divested its remaining 49% stake in Capgemini Business Services (India), earlier known as Unilever India Shared Services (UISSL), according to the terms of agreement entered between the company and Cap Gemini SA.

In September 2006, HUL and Cap Gemini SA had inked an agreement as per which the former had agreed to sell its 51% controlling stake in UISSL to the latter. After executing the said agreement, both parties in October 2006 further agreed for dilution of the balance 49% stake of HUL in favour of Cap Gemini SA by March 31, 2010. (more…)

The guessing game begins as volume growth and dollar revenue to remain strong in Q4 FY10, boosted by the ongoing IT budget recovery. Analysts expect Tier I vendors to report 5-5.4% dollar revenue growth, backed by similar growth in volumes.

Infosys guidance for rupee EPS is likely to be 117-120, implying YoY growth of 6.6-9.4%. Expect dollar revenue guidance at 15-18% and rupee revenue guidance at 12-15%. This could disappoint investors who are pricing in 18-20% EPS growth, as indicated by valuations at 22.7x FY11E. We believe Infosys EPS guidance needs to come in at (more…)

Qatar oil ministry has agreed to supply additional 4 mtpa of LNG to India by 2013E. The supply is expected to be ramped up from 0.3 mtpa in CY2010E to 4 mtpa in CY2013E; this is in addition to the current supply of 7.5 mn tons of LNG to India. The petroleum
ministry has stated that a share of the additional LNG from Qatar will go to Petronet LNG and RGPPL’s yet-to-be-commissioned 5 mtpa LNG Dabhol terminal.

Linking of LNG price to crude oil may be negative for LNG importing companies given (1) speculation-driven volatility in crude oil prices (more…)

This aviation cycle commences with 5 meaningful players (vs. 3 in previous cycle). FSCs [full Service Carriers] have long argued that LCC [Low Cost Carriers] cost structures are very similar to FSCs, except that the former enjoy unit costs that are 15-20% lower, given greater seat density on fleet. We believe that capital costs, a reflection of balance sheet health, will be key differentiators in this cycle given that pricing will be far more important in the current cycle. (more…)

Lanco Infratech indicated that they synchronized Unit 2 of Amarkantak power plant and expect it’s commissioning during the next quarter. The synchronization of Unit 2 and consistent PLF for Unit 1 gives us more visibility on commissioning of Amarkantak power project. Further, calculations indicate the cash inflows of Unit 1 (since synchronization in May 09) have so far resulted in 21% reduction in capital cost.

Goldman Analysts expect the stock’s underperformance versus BSE Power index (14% YTD) to narrow in the medium term primarily (more…)