Category: Breaking Corporate India Earnings News

Ranbaxy Laboratories stock was hammered on the bourses by 10% on concerns raised by the US FDA which has filed a motion in a US court seeking access to certain privileged documents related to Ranbaxy’s manufacturing operations as part of an ongoing investigation.

Ranbaxy has stated that the allegations are baseless & intends to file a response on 14 July 08. It has denied media reports of prosecution proceedings being initiated or that its executives have been asked to depose. It maintains that this is a part of an investigation that’s been on for 3 years during which the FDA tested over 200 randomly collected samples of its products without finding any evidence of non compliance.

Thinking out of the box, could Pfizer have had a say in this FDA investigation to derail the Japanese takeover of Ranbaxy ?Last month Ranbaxy promoters sold their stake to Daiichi-Sankyo thus giving the Japanese company the management control of Ranbaxy Labs – India’s largest Pharma company.

It was slowdown in the entire Indian stock broking industry. Edelweiss Capitals‘ volumes were down 26% QoQ, slightly higher than the industry (-17% QoQ). Higher decline in revenues (-38% QoQ) was due to: a) higher derivatives proportion (an industry trend), and b) sharper decline in investment banking revenues (-75% QoQ).

Operating costs (after adjusting for treatment of STT) have declined 55% QoQ. This is significantly higher than the drop in volumes. The company reported a net profit of Rs 63.8 cr a 22.7% decline QoQ and 24.3% below consensus estimates on the street. For the full year, Edelweiss is espected to report EPS of Rs 42.13.

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Colors, the new GEC (General Entertainment Channel) from Viacom 18 (50:50 JV between IBN18 and Viacom, not listed), is commencing from 21 July.This channel is expected to have four hours of original programming in the first leg and like other channels sources programmes from various local production houses.

With this launch the GEC space that commands a Rs 4,500 crore of annual ad revenues would now have 11 serious competitors (Ex Music, movie channels). Apart from this, near-term competition is set to increase with the introduction of a host of new programmes by incumbents. With near-term competition increasing, expect TRPs to remain volatile, leading to a range bound performance for the GEC stocks.

Motilal Oswal reported 25% Q-o-Q decline in Q1FY09 in revenues to INR 1.4 bn (15% Y-o-Y growth), primarily led by 27% fall in brokerage and related income. Increase in margin funding book to INR 3.4 bn and revenue booking from 7 investment banking deals provided some support to the topline.

Motilal Oswal witnessed ~6% sequential decline in average daily trading volumes to INR 29 bn, as against industry wide decline of 15%. However, blended commission yields seem to have came off significantly due to change in proportion of cash and derivative volumes.

The company reported a PAT for Q1FY09 at Rs 262 mn.

The Tanti Group, promoters of Suzlon Energy have bought Honiton Energy Holdings plc (Honiton) which develops and operates wind farms in China with an installed capacity of 50MW. The deal is routed through Singapore-based holding company (Colossus Holding), in JV partnership with Arcapita Bank, Bahrain.

Honiton’s acquisition is not routed via Suzlon’s books of account. Honiton’s 50 MW wind farm is composed of 40 units of Suzlon’s 1.25MW turbine Honiton also owns 16.65% interest in REpower North (China) Ltd., a JV with REpower Systems AG (50.01% stake) and North Heavy Industrial Corp (33.34% stake) licensed to manufacture & supply 2MW wind turbines to wind developers in North China, including Honiton.

Tanti Group’s ownership in Honiton (which plans to ramp up capacity to 1650MW by 2012) could potentially provide captive orderbook for Suzlon in future.