Both textile & plastic division witnessed good demand, confident to achieve similar growth: Sintex Ind

LM Rathod, CFO of Sintex Industries said it was a healthy quarter for us. Our consolidated PAT was up by 54%. Both textile and plastic division witnessed good demand.

On 1st June, Sintex has acquired 81% of the shareholding of Wausaukee Composites Inc (WCI). WCI is a leading manufacturer of highly engineered composite components for OEM's. 50% of Wausaukee customers are Fortune 500 Companies.

Rathod said WCI consolidation has been only for a month now. It had a revenue of $ 93 million while PAT was $ 8 million. Going forward, we are confident to achieve same rate of growth on consolidated basis.





DLF sole bidder for 10,000 acres of Bangalore township project

DLF has emerged the sole bidder for the 10,000-acre residential township project at Bidadi near Bangalore, an industry aide said today, according to NW 18. "The estimated cost of developing the township is Rs 3500 crore," the aide said. Located 39 km from Bangalore, the Bidadi project comprises 10 villages of Byramangala, Bannigiri, Hosur, KG Gollarapalya, Kanchugaranahalli, Aralalusandra, Kempayyanapaly, Kanchugaranahalli, Mandlahalli and Voderahalli.





Minister for Corporate Affairs: Maybe some diversion of funds from Suzlon; Premature to comment on extent of penalties

Suzlon Energy has touched an intra day high of Rs 1,499 and an intra day low of Rs 1,450.20. Currently, the share is quoting at Rs 1,456.90, down Rs 47.55, or 3.16%. It is trading with volumes of 443,290 shares, compared to its 5-day average of 89,786 shares, an increase of 393.72%. The stock is under pressure today after there were reports that there will be inspection of company's books over misuse of IPO funds.

Minister for Corporate Affairs said that there may be some diversion of IPO Funds in case of Suzlon. He added that they have received complaints from investors that IPO funds being diverted. He added that it will be premature to comment on extent of the penalties on Suzlon.

Suzlon Energy has confirmed that it has received a communication from the government and is co-operating with it. Tulsi Tanti, MD of the company says that this is a normal process and they have submitted the details required by the government. Tanti added that it is a good government intiative.

The inspection is part of a wider exercise the ministry had started last year to scrutinise all initial public offers (IPOs) since 2004 to find out if anyone has utilised public money for purposes other than those stated while raising funds.

The inspection of Suzlon subsidiaries follows a report by the Mumbai registrar of companies (RoC) and the regional director that said an inspection was needed to allay doubts about certain entries in its balance sheet for the fiscal ended 2006. After a technical scrutiny of the balance sheet, the RoC wondered why advances to certain parties have not been paid back to the company.

Also, debtors have not paid a large sum to the company back in cash or kind. This has raised questions and apprehensions that the company may have diverted Rs 2,200 crore to various parties. Therefore, an inspection under Section 209 A of the Companies Act was needed, the RoC said.

The company had hit the primary market towards the end of 2005 to raise funds for its expansion plans. It has different arms for producing wind turbine towers and generator units in India besides its overseas subsidiaries.

The ministry wants to allay suspicion and ensure that investor interest is protected at a time when the market is testing new highs. The government’s scrutiny will cover a large number of companies as a string of IPOs had hit the market in the past three years. They include the IPOs of Reliance Petroleum, Reliance Communication, Mahindra & Mahindra, TCS, Sun TV, IL&FS Investsmart, Deccan Aviation, Biocon and Jet Airways.





Ranbaxy receives final US FDA approval to manufacture and market Amlodipine Besylate Tablets

Ranbaxy Laboratories Limited (RLL), announced today that the Company has received final approval from the U.S. Food and Drug Administration (FDA) to manufacture and market Amlodipine Besylate Tablets, 2.5 mg (base), 5 mg (base) and 10 mg (base). The Office of Generic Drugs, U.S. Food and Drug Administration, has determined the Ranbaxy formulations to be bioequivalent and have the same therapeutic effect as that of the reference listed drug Norvasc Tablets® of Pfizer Pharmaceuticals Inc. Total annual market sales for Norvasc®, Amlodipine Besylate Tablets were $ 2.79 billion (IMS – MAT: March 2007).

Amlodipine Besylate Tablets are indicated for the treatment of hypertension and may be used alone or in combination with other antihypertensive agents. Amlodipine Besylate is also indicated for the symptomatic treatment of chronic stable angina and may be used alone or in combination with other antianginal agents. Amlodipine Besylate Tablets are also indicated for the treatment of confirmed or suspected vasospastic angina and may be used as monotherapy or in combination with other antianginal drugs.

“We are pleased to receive this final FDA approval for Amlodipine Besylate Tablets, which represents Ranbaxy’s 115th ANDA approval to date. This product will further expand our product portfolio of affordable generic alternatives and will be launched in August 2007 to all classes of trade,” said Jim Meehan, Vice President of Sales and Marketing for RPI, USA.





GMR Consortium wins BOT Project for International Airport Terminal Turkey, GMR holds 40% stake in the consortium

GMR Infrastructure has informed BSE that the consortium of the Company - 40%,Limak lnsaat Sanayi San Ve Tic A S Turkey (Limak) - 40% and Malaysia Airports Holdings Berhad (MAHB) - 20%, has won the tender for Sabiha Gokeen International Airport (SGA) at Istanbul, Turkey, amidst intense competition from global firms.

This BOT (Build Operate - Transfer) project involves construction of a new international airport terminal with a 10 million capacity in 30 months besides managing the existing domestic and international terminals (with a passenger capacity of 35 million per annum). The current international terminal will be converted to an all domestic terminal, subsequent to construction of the new terminal. The term of BOT concession would be for 20 years, while the new international terminal will have to be constructed within a period of 30 months from the transfer of the facility.

The total concession fee of Euro 1.93 billion (approx Rs 10808 crore or USD 2.7 billion) is payable to the Government Authority and is structured over a 20 year period of concession, with no concession fee payable in the first three years.

SGA is emerging as a second airport in Istanbul, as an alternative to the already constrained Istanbul Ataturk airport. SGA is located at a similar distance from the centre of Istanbul as the existing Ataturk airport, and strategically placed in the midst of Turkey's most important industrial development zone. SGA is also located within 5 kilometres of the Istanbul Formula One Race circuit.





L&T gets Rs 542 Cr order from IOC

Larsen & Toubro (L&T) has announced that the Company has been awarded a Rs 542 crore order by Indian Oil Corporation (IOC).

The order is for the Motor Spirit Quality (MSQ) Upgradation Unit, comprising a Light Naptha Hydrotreating unit, Isomerisation unit, Reformer Splitter and associated utilities and offside facilities (EPCC-1), to meet the Euro IV norms. The unit is located at IOC's refinery in Panipat at Haryana, India.

IOC intends to operate this MS Quality Upgradation Unit and necessary Utilities and Offside as part of their Fuels Upgradation project. Jacobs H&G Pvt Ltd (JH&G) have been retained by IOC to provide services for Project Management Consultancy (PMC) and Front End Engineering Design (FEED). UOP/AXENS are the process licensors.

This prestigious order comprises the Residual Process Design, Detailed Engineering, Procurement, Supply, Transportation, Storage, Fabrication, Inspection, Construction, Installation, Testing, Mechanical Completion, Pre-Commissioning, Commissioning, and Performance Guarantee Test Runs for the said Project.

The order was bagged by L&T against keen competition from internationally reputed EPC contractors, on the strength of its track record in meeting refinery project quality requirements and conforming to stringent delivery schedules.





Citigroup says Tech Mahindra is in sweet spot in buoyant market, initiates target price of Rs1,920 (21x FY09E)

Citigroup has come out with a report on Tech Mahindra. In this report the research house says Tech Mahindra, a niche IT services provider in the telecom space, is a key beneficiary of the huge IT spend by British Telecom (one of the owners of Tech Mahindra) and AT&T and Alcatel (with whom it also has strong relationships).

Tech Mahindra is in a sweet spot in a buoyant market – resulting in industry-leading CAGRs of 40% for revenue and 32% for EPS over FY07-FY10E. While Citigrouop is cognizant of the risks of a less diversified, domain-focused model such as Tech Mahindra's, it believes that significantly higher growth will result in a valuation premium over comparables like Satyam and HCL Tech.

Tech Mahindra is the largest Indian IT services player in the TSP space. IT spend by TSPs is expected to remain robust – and Tech Mahindra should be a prime beneficiary given its strong relationships with the likes of BT (which owns 31% of the company) and AT&T, Citi says.

Citi further says various initiatives by new management (joined in 2004) have resulted in faster growth and improved profitability over the past two years. Tech Mahindra continues to leverage its domain capabilities and to use its JVs/acquisitions/equity partnerships to take advantage of a buoyant telecom outsourcing market.

Citi’s target FY09E P/E multiple of 21x represents a 10% premium to its fair-value multiple for Satyam – which it believes is justified by Tech Mahindra's 32% recurring EPS CAGR over FY07-FY10E (vs. 20% for Satyam). Its High Risk rating reflects Tech Mahindra's client/domain concentration. Almost all revenues are derived from the telecom segment, 64% of them from British Telecom. Also, quarterly performances could be volatile. Sector risks include supply-side challenges, currency risk (though Tech Mahindra is relatively less exposed to US$) and visa issues.

With outsourcing by telecom service providers (TSPs) on an upswing, Citigroup expect Tech Mahindra (Tech Mahindra) to deliver industry-leading CAGRs of 40% in revenue and 32% in recurring EPS over FY07-FY10E. It gives a target price of Rs1,920 (21x FY09E).





Infosys Q1 Net Profit seen 4.16% lower at Rs 974.48 Cr; Revenues seen up 1.08% at Rs 3813 Cr

Infosys Technologies is to come out with Q1FY08 numbers tomorrow. According to CNBC-TV18 estimates, the company is expected to post decline of 4.46% in net profit of Rs 974.48 crore* (Rs 9.74 billion) as against Rs 1020 crore (Rs 10.20 billion) in the previous quarter.

Revenues are likely to go up 1.08% to Rs 3813 crore (Rs 38.13 billion) from Rs 3772 crore (Rs 37.72 billion).

* Excluding Rs 125 crore tax write back.

Q1 Expectations

* Revenue growth in dollar terms at 7.5% QoQ
* Likely to miss Q1 Rupee EPS guidance on account rupee appreciation
* To lower annual guidance by 4-5% in Rupee terms; up in $ terms
* EBIDTA margin expected to decline by 340 bps





Ankit Metal and Power to list on the bourses today; Modest listing expected

After receiving modest response to its initial public offering, Ankit Metal and Power, a Kolkata-based steel manufacturer, will list on the bourses with 32875500 shares today. The offer price fixed at Rs 36 per share. The company had entered capital market with an initial public offering, IPO of 1.19 crore equity shares at a price band of Rs 30-36 per share. The issue was subscribed 1.58 times.

The company raised capital from the public mainly to part finance an integrated steel plant in Bankura, West Bengal. Post the issue the promoter and promoter group holding stood at 70.83%.

Metal sector is far from boring after looking at Tata Steel and SAIL. Analysts say that with earning per share of Rs 7 this year after doubling their capacity, the stock justifies Rs 35-40 band at the next year EPS. Ankit Metal may list with premium of Rs 3-4, at Rs 38-40 levels. Broadly there would not be any point of selling the stock below Rs 35 and buying above Rs 40-44 levels.