Hindustan Zinc gains after raising metal prices

Hindustan Zinc rose 4.6% to Rs 677.60 after it raised zinc and lead prices on Saturday, 2 June 2007.

The stock had bounced back during the period from late March 2007 to early May 2007. From a recent low of Rs 550 on 29 March 2007, the stock jumped 34.43% to 739.40 on 4 May 2007. The scrip pared gains later to a recent low of Rs 647.75 on 1 June 2007.

The company, on Saturday, 2 June 2007 raised the zinc price by 1.5% to Rs 1.68 lakh per tonne and lead prices were raised by 2.4% to Rs 1.04 lakh per tonne. Hindustan Zinc adjusts local prices for its products taking cues from prices prevailing on the London Metal Exchange (LME).

Earlier on 10 May 2007, it had hiked zinc prices by 5% to Rs 1,90,300 ($4,646) per tonne, while it had kept lead prices unchanged.

Described as the largest integrated zinc producer in the country, Hindustan Zinc has a 4,40,000-tonne capacity. The second phase of expansion, which will see the capacity increase to 6,60,000 tonnes, is expected to complete by mid-2008. The company will also set up a captive power plant of 80 MW to contain power costs.

Riding on higher metal prices, the Vedanta group firm Hindustan Zinc (HZL) reported a 16.58% rise in net profit to Rs 935 crore in the quarter ended March 2007 from Rs 802.00 crore in the quarter ended March 2006. Sales grew 14% to Rs 2,021 crore (Rs 1,774 crore).

Sales surged 120.79% to Rs 8560 crore in FY 2007 as against Rs 3,890 crore in FY 2006. Net profit vaulted 201.8% to Rs 4,442 crore (Rs 1,742 crore).

The company attributed the higher net profit to higher metal volume and prices. Average zinc price on the LME (London Metal Exchange) was $3,580 a tonne in FY 2007 as compared with $1,614 a tonne in FY 2006.

The Anil Agarwal-owned metal firm said its production for the March quarter and FY 2007 were 94,856 tonnes and 348,316 tonnes, respectively. This was an increase of 4% and 23% over the corresponding periods.

Hindustan Zinc’s activities are mining and smelting of zinc and lead. The products of the company include zinc ingots, lead ingots, silver, sulphuric acid, cadmium ingots, copper cathode and others.

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Mount Everest Mineral Water fails to climb despite Tata Tea taking control

Mount Everest Mineral Water declined 5% to Rs 124.95 after Tata Tea decided to acquire controlling stake in the company stake in the company.

The share price had declined from Rs 126.10 on 15 May 2007 to Rs 113.25 on 24 May 2007. The scrip rose over the next two trading sessions to reach Rs 131.50 on 1 June 2007 ahead of the announcement

On Friday, 1 June 2007, the board of Mount Everest Mineral Water the issue and allotment to Tata Tea 50.99 lakh shares of the company at a price of Rs 140 per share on preferential allotment basis to Tata Tea. The announcement was made by the company after trading hours on Friday, 1 June 2007.

The board also approved Tata Tea's proposal to acquire 31.10 lakh shares of Mount Everest Mineral Water from Foresight Holdings and Vinod Sethi, promoters of MEMW, and Salim Govani, MEMW Managing Director, at Rs 140 per share.

The board also approved the increase in authorized share capital from Rs 30 crore to Rs 35 crore.

MEMW announced on 19 March 2007, that it is entering into a distributorship agreement for marketing an energy drink under the brand name 'Power Horse' in India.

The net profit declined 38.2% to Rs 0.34 crore in Q3 December 2006 as against Rs 0.55 crore in Q3 December 2005. Sales soared 46.9% to Rs 6.20 crore in Q3 December 2006 (Rs 4.22 crore).

MEMW is engaged in manufacture of mineral water (in bottles), PET bottles and in bulk containers with dispensers.

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Tata Motors in reverse gear as sales decline in May 2007

Tata Motors declined 3.75% to Rs719.15 after it reported 4% fall in vehicle sales in May 2007.

The share price rose continuously from Rs 707.95 on 23 May 2007 to Rs 757.50 on 31 May 2007. It declined on 1 June 2007 to Rs 747.15 on the eve of the announcement of May 2007 sales figures.

After trading hours on Friday, 1 June 2007, Tata Motors announced that its May 2007 sales slipped 4% to 42,558 units, as compared to previous year. May 2007 commercial vehicle (CV) sales declined to 20,675 units from 21,903 units in May 2006. May 2007 passenger vehicle sales were down 3% at 17,580 units, from previous year.

Tata Motors net profit rose 25.89% to Rs 576.72 crore in Q4 March 2007 from Rs 458.11 crore in Q4 March 2006. Sales rose 20.11% to Rs 8267.00 crore in Q4 March 2007 from Rs 6882.75 crore in Q4 March 2006.

The net profit rose 25.15% to Rs 1913.46 crore in the year ended March 2007 (FY 2007) from Rs 1528.88 crore in FY 2006. Sales rose 33.31% to Rs 27535.24 crore FY 2007 as against Rs 20654.35 crore in FY 2006.

As per reports, Tata Motors has more than doubled its stake in Automobile Corporation of Goa, one of its major suppliers. The move underlines Tata Motors' plan to increase control of the growing bus body business. Tata Motors, a co-promoter of Automobile Corporation with a stake of 10%, has upped its stake to 21% through a rights issue.

Tata Motors is reportedly in talks with Metalsa, Latin America's largest small truck and car chassis maker to produce chassis in India for both domestic and foreign markets

On 13 April 2007, Tata Motors announced that it had received an order to supply 500 buses to the Delhi Transport Corporaton. The low-floor, CNG buses will be delivered from the second half of 2007.

The company is into manufacturing of light, medium and heavy commercial vehicles. It also manufactures passenger cars, utility vehicles, excavators and machine tools.

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SREI Infrastructure Finance has a dream run following alliance with BNP Paribas

SREI Infrastructure Finance surged 9.98% to Rs 94.75 triggered by its alliance with BNP Paribas Lease group on Thursday, 31 May 2007.

The SREI scrip has been locked up in upper circuit limits for past three trading sessions after the news hit the markets.

The SREI Infrastructure stock had jumped 20% Rs 71.80 on BSE on Thursday, 31 May 2007, when the company had announced the tie-up with BNP Paribas during trding hours.

Earlier, the share price had dipped from Rs 63.20 on 15 May 2007 to Rs 57 on 24 May 2007. It had bounced back to Rs 60.85 on 29 May 2007 before settling a bit lower at Rs 59.85 on 30 May 2007.

SREI Infrastructure Finance announced on 31 May 2007 that the company and BNP Paribas Lease group (BPLG), the leasing arm of BNP Paribas, have reached an agreement regarding a strategic partnership in equipment finance in India.

BPGL is a 100% subsidiary of the French Bank BNP Paribas, which is a market leader in France and Europe in the field of infrastructure leasing services. The alliance involves setting up of a new 50:50 joint venture (JV) company.

The current infrastructure equipment financing business of SREI Infrastructure Finance along with its insurance broking activity will be transferred to this new JV. The management control would remain with SREI.

After transferring the asset finance and insurance broking business, SREI will be left with the project finance, advisory service and venture capital businesses as well as its investments in the Russian subsidiary QUIPO, the infrastructure equipment bank.

The joint venture would be formed with an initial networth of Rs 800 crore. The partnership with BPLG would be mutually beneficial, as both the partners will bring in their respective expertise and know-how.

SREI would bring in local reach and specialised equipment financing skills, while BPGL would share its international expertise and global brand strength, which would enable raising resources at lower rates.

SREI Infrastructure Finance's net profit rose 38.3% to Rs 17.92 crore in Q3 December 2006 compared to Rs 12.96 crore Q3 December 2005. Operating income jumped 40.8% to Rs 93.93 crore (Rs 66.71 crore).

SREI Infrastructure Finance is a non-banking financial institution, with special focus on the infrastructure sector since 1989. The firm has around Rs 5000 crore of asset under management.

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Advanta India gets advantage from Golden Seeds acquisition

Advanta India rose 2.12% to Rs 987.50 on finalising a deal to buy Golden Seeds, to boost its vegetable seeds business.

The Advanta India share price had declined from Rs 1002.15 on 28 May 2007 to Rs 968.45 on 1 June 2007, ahead of the announcement.

On 19 April 2007, Advanta India was listed at Rs 640 on BSE. On the same day, the stock had settled at Rs 850.05, compared to IPO price of Rs 640.

The equity capital of the company is Rs 16.83 crore and the face value per share is Rs 10.

Seed technology firm Advanta India said after trading hours on Friday, 1 June 2007, it has agreed to buy the business of Golden Seeds for Rs 60.10 crore to boost its vegetable seeds business.

Advanta, a unit of chemicals and pesticides maker United Phosphorus expects to pay an additional Rs 17.50 crore for Golden Seeds' inventories and receivables.

The acquisition gives Advanta a platform in vegetables seeds and it will help it develop a strong position in the Indian and Asian vegetable seed market, Advanta chairman Jai Shroff said.

The acquisition will add cabbage, cauliflower, tomato and gourd to Advanta's portfolio that includes cotton, maize, pearl, rapeseed, rice and sunflower.

The company has raised its FII ceiling to 49%. It had earlier changed its accounting year from April-March to January-December.

Advanta India is 100% owned by United Phosphorus (UPL) established with the prime objective of conducting research, development, production and marketing of superior high yielding hybrid seeds of crops .