ONGC FY07 net profit at Rs 15,643 Cr, Revenue at Rs 56,904 Cr; Declares 310% dividend

ONGC has posted FY07 net profit at Rs 15,643 crore Vs Rs 14,431 crore. Its revenue has been at Rs 56,904 crore Vs Rs 47,923 crore.

FY07 subsidy was Rs 17,024 crore. The oil giant has declared 310% dividend for FY07.




ONGC gains ahead of results; Net Profit seen up 28.3% at Rs 3959.5 Cr, Sales up 12.6% at Rs 13,393 Cr

ONGC has touched an intra day high of Rs 924.80 and an intra day low of Rs 909. Currently, the share is quoting at Rs 922.05, up Rs 13.40, or 1.47%. It is trading with volumes of 72,058 shares, compared to its 5-day average of 169,685 shares, an decrease of -57.53%. Yesterday the share closed down 0.45% or Rs 4.10 at Rs 908.65.

ONGC is to announce its Q4FY07 result. According to CNBC-TV18 estimates, the company's net profit is seen up 28.3% at Rs 3959.5 crore vs Rs 3086 crore on YoY basis. Its net sales is expected to be up 12.6% at Rs 13393 crore versus Rs 11898.37 crore on YoY basis. Its EBIDTA during the corresponding quarters was up 24.6% at Rs 8381.7 crore from Rs 6725.40 crore.

Factors to Watch:

- Subsidy burden expected to be around Rs 2140 cr vs Rs 3400 cr last year
- Lower QoQ production and lower crude prices to reduce topline; to be compensatd by lower depreciation
- Bonny Light Crude prices lower by 4.3% YoY in Q4 at $ 60.6/bbl
- Gas production fell by 5.8% in Q4
- Net realisation to be around $ 43/bbl



Rupee below 41/$ will start impacting margins, hit by price cuts, supply constraints in German mkt: Dr Reddy’s

G V Prasad, VC & CEO of Dr Reddy’s said significant part of our business is US. Rupee below 41 will start impacting our margins. There will be significant revenues from this quarter from Ondansetron. Our capex will continue as planned despite rupee impact, he added.

We were hit by price cuts, supply constraints in German markets. Pricing in Germany is a challenge. We need to move manufacturing to India. From 2nd half of this year we will move manufacturing of Betapharm to India, which will benefit margins, Prasad said.

We will appeal against Aciphex ruling along with Teva. Currency impact may be mitigated somewhat via import benefits. We have significant import reliance and Europe is also a significant business, which will mitigate currency risk. 20% growth rate is seen excluding exclusivity & one off revenues, Prasad said.



Rupee below 41/$ will start impacting margins, hit by price cuts, supply constraints in German mkt: Dr Reddy’s

G V Prasad, VC & CEO of Dr Reddy’s said significant part of our business is US. Rupee below 41 will start impacting our margins. There will be significant revenues from this quarter from Ondansetron. Our capex will continue as planned despite rupee impact, he added.

We were hit by price cuts, supply constraints in German markets. Pricing in Germany is a challenge. We need to move manufacturing to India. From 2nd half of this year we will move manufacturing of Betapharm to India, which will benefit margins, Prasad said.

We will appeal against Aciphex ruling along with Teva. Currency impact may be mitigated somewhat via import benefits. We have significant import reliance and Europe is also a significant business, which will mitigate currency risk. 20% growth rate is seen excluding exclusivity & one off revenues, Prasad said.



RBI to sell 31.43 Mn shares of SBI to Govt. for Rs 35,531.33 Cr, works out to Rs 1130.3/shr

The Ministry of Finance announced that the proposal to transfer Reserve Bank of India’s (RBI`s) entire shareholding in State Bank of India to Central Government, was approved by the Cabinet in its meeting held on Feb. 01, 2007. The Finance Minister in his budget speech formally announced this decision of the government on Feb. 28, 2007, wherein a sum of Rs 40,000 crore was provided in the budget for the year 2007-08.

Further the ministry said the State Bank of India (Amendment) Ordinance, 2007 (No.5 of 2007) amending the State Bank of India Act, 1955 to enable the transfer of Reserve Bank of India’s entire shareholding in State Bank of India to central government was promulgated on Jun. 21, 2007.

Pursuant to the provisions contained in the said Ordinance, it has been agreed between the Reserve Bank of India and the Central Government that the entire shareholding of Reserve Bank of India aggregating to 314,339,200 equity shares or 59.7% stake with a face value of Rs 10 each, be transferred to the Central Government on Jun. 29, 2007 against cash payment of Rs 35,531 crore. The Centre will pick up 31.43 crore equity shares on June 29 for a cash payment of Rs 35,531.33 crore. The deal works out to be Rs 1130.3 per share.

Chidambaram had earlier said the government has raised about Rs 5,000 crore through bonds outside the scheduled borrowings to partly fund the deal. The government's additional borrowing in the first half of 2007-08 would be utilised to buy RBI's holding in SBI, he had said.



Reliance Energy moves Supreme Court against MSRDC decision to disqualify it from bidding process for country's largest sea link expressway

After the controversy over pricing of gas from the Krishna-Godavari basin, the Ambani brothers are locked in another court battle. A consortium led by Anil Ambani-controlled Reliance Energy (REL), which includes Hyundai, has moved the Hon’ble Supreme Court against the Maharashtra State Road Development Corporation’s (MSRDC’s) decision to disqualify it from the bidding process for the country’s longest sea link expressway.

The disqualification means Mukesh Ambani-controlled Sea King Infrastructure, the only remaining bidder, is set to bag the contract for the Rs 4,000-crore Mumbai Trans Harbour Link project.

The special leave petition filed by the consortium on June 19 is slated to come up for hearing on Monday. MSRDC is the nodal agency for implementing the 22.5 km project that will connect Sewri in the island city with Nhava across the creek.

The other two bidders, L&T-Gammon and Iffco, opted out of the race and did not submit final technical and financial bids. This has left the field open for Reliance Industries’ Sea King and, in the process, put the competitive bidding process under a cloud.

REL first moved the Bombay High Court after MSRDC disqualified the REL consortium on the ground that one of the major partners, Hyundai, did not meet the criterion of Rs 200 crore net worth during the year.

REL had argued that MSRDC’s financial consultants had not cited any specific accounting standards while disqualifying its bid. It also said that even if one partner was not able to meet the net worth criterion, REL alone could meet it for the entire consortium.

But MSRDC stuck to its position that every company in the consortium has to meet the criteria of net worth independently according to the bid document. Even though it found the disqualification by MSRDC arbitrary, the Hon’ble High Court refused to intervene in what it described as an administrative decision of MSRDC.

The Judges, however, provided interim relief to REL by restraining MSRDC from opening the bids. It also allowed the REL-led consortium four weeks to appeal against the order, following which the company moved the apex court.