Category: Breaking Corporate India Earnings News

Here is Breaking News about Advance tax by various Indian Corporates for Q3 FY 2009-10. Those paying lesser advance tax have been highlighted in Red.

Tata Motors pays Rs 100 crore versus Nil (YoY)
M&M pays Rs 195 crore versus Rs 4.5 crore (YoY)
Tata Steel pays Rs 650 crore versus Rs 260 crore (YoY)
Hindalco pays Rs 100 crore versus Rs 40 crore (YoY)
HUL pays Rs 200 crore versus Rs 155 crore: Sources
L&T pays Rs 270 crore versus Rs 312 crore (YoY)
Grasim Q3 advance tax at Rs 150 crore versus Rs 75 crore: Sources
UltraTech pays Rs 90 crore versus Rs 65 crore (YoY)
HDFC Q3 advance tax at Rs 320 crore versus Rs 280 crore: Sources
Dena Bank pays Rs 65 crore versus Rs 60 crore (YoY)
IndusInd Bank pays Rs 65 crore versus Rs 22 crore (YoY)
Bank Of Baroda pays Rs 330 crore versus Rs 220 crore (YoY)
Bank Of India pays Rs 102 crore versus Rs 370 crore (YoY)
Tata Power pays Rs 81 crore versus Rs 29 crore (YoY)
Tata Chem pays Rs 40 crore versus Rs 83 crore (YoY)
Indian Oil Q3 advance tax nil versus Rs 1,100 crore (QoQ)
BPCL Q3 advance tax at nil
Central Bank pays Rs 138 crore versus Rs 163 crore (YoY)
Bajaj Auto pays Rs 320 crore versus Rs 105 crore

Industrial production (IP) growth declined by 1% MoM sequentially on a seasonally adjusted basis, but remained strong at 10.3%YoY in October: This compares with growth of 9.6%YoY (revised upwards from 9.1% earlier) in September and 11.0%YoY in August 2009. The sequential retracement in IP growth in the month of October was largely in line with expectations on account of seasonal factors like the Diwali festival holidays. However, the growth in October was below market expectations (as per
Bloomberg survey) of 12%YoY.

Growth in the electricity segment decelerated to 4.7%YoY in October, compared with 7.9%YoY registered in the previous month. Growth in the mining and manufacturing segments accelerated to 8.2%YoY and 11.1%YoY, respectively. Growth in consumer and intermediate goods was up, while basic and capital goods growth was moderate.

The overall trend in IP growth should remain strong in the coming months. The early indicators for November are showing an accelerating trend – viz automobile sales.

We attended the Infosys Technologies Analyst meet and here are the key takeaways. One-third of the total revenues from non-linear streams in the long term. Power focus on S&M team expansion / investments and re-alignment of human asset base (called iRACE) for higher technical / management / vertical depth.

Infosys envisages a revenue mix of 1:1:1 from business transformation, strategic global sourcing and new engagement models.

Organisation structure strengthened via increased thrust on technical / managerial skills development, higher investments in S&M and raising performance benchmark. S&M team strengthened via 30% increase in sales force from 700 to 900/ 1000 by year end.

HRD – Investments in building technology depth (2) creation of 25 career streams (3) creation of career paths and lattices (4) increasing span of control (Software Engineers: Project Analysts: Project Managers now increased to 1:3:9 vs 1:2:4.5 earlier) and (5) enhancing bill ability of its human resource asset.

India business update: Presently revenue from India contributes 1.2% to total revenue (Q2FY10). India biz has a 90 people sales team and 25 clients across verticals. Government is the biggest IT spender in the domestic IT market.

New verticals for higher growth include Lifesciences & Healthcare, Government.

The Allahabad high court ruled that procedures followed by Uttar Pradesh state government to acquire land of 2,500 acres for Reliance Power (RPWR) Dadri project were improper. The land was acquired for setting up of 7.4GW power project at Dadri based on gas from Reliance Industries.

While the dispute relating to gas supplies to RPWR’s gas-based plants from RIL-operated KG D-6 block is still under judgment, we believe the uncertainty on land for Dadri project will further delay it. We now estimate the Dadri project will come on stream in FY13E vs. FY12E before, assuming availability of gas supplies from KG D-6 block over medium term.

Delay in Dadri project commissioning would further strain future cash flows of RPWR, as 1) we forecast no meaningful cash inflow from projects under construction; for instance, we do not expect Sasan to generate positive cash flows till FY14E.

SOTP valuation is Rs 119 for Reliance Power for FY12. Expensive!!!!

Cash equity volumes are showing no signs of improvement since the bump up in May 2009, driven by the General Election outcome and a global equity rally. In fact, at Rs4,264bn in November 2009, the monthly cash volumes are now back to pre-May levels.

The decline in the overall cash volumes is accompanied by similar trends in Institutional volumes. DII and FII volumes declined by 11.4% MoM and 25.2% MoM, respectively in November 2009.

DII weak volume trend is almost surely an outcome of weak AUM growth of the domestic mutual fund industry and low trading intensity of Insurance players (whose AUMs are still growing). The equity AUMs of the mutual fund industry have grown by 47.3% YTD October end, versus 35.6% rise in the Nifty over the same period, indicating only modest inflows.

We have been positive on the Indian Brokerage sector based on an improvement in all the key revenue segments for the sector. Clearly, for stocks in this sector to now outperform the broader market, improvement in trading activity and corporate fund raising is going to be crucial and will be monitored closely. Edelweiss Capital remains our top pick in this space.

The RBI has instructed banks to provide for 70% of non-performing assets (NPAs) by Sep 2010. More importantly, banks are allowed to include technically written-off loans to calculate the provision coverage ratio (PCR).

Technically written-off accounts are NPAs that are outstanding in the books of banks’ branches, but have been written-off, fully or partially, at the Head Office level. Including these in the gross NPA computation has helped improve banks’ PCR.

Inclusion of technically written-off accounts in the calculation of the PCR is a positive development for large-cap banks like SBI, ICICI and Canara. While SBI’s PCR stands to improve from 43% to 58%, ICICI’s and Canara’s are likely to rise to 65% (51%) and 74% (28%) respectively.