The Indian market opened flat today,
mirroring flat opening in the SGX Nifty and marginally positive opening trades
in most of the Asian bourses. Investors would keenly watch out for the outcome
of the RBI’s monetary policy meet scheduled today. The US stocks, after
trending higher over the past few weeks, showed a lack of direction throughout
the trading on Monday. The lackluster performance came as traders seemed
reluctant to make any significant moves following the recent strength.
The European markets ended the trading session on Monday with mixed results.
Investors were pleased with some positive economic data from China, as well as
the surge in US durable goods orders. However, the larger than expected
decrease in US pending home sales provided a note of caution. Meanwhile, the
Indian markets ended a lackluster session largely unchanged as investors
adopted a cautious stance ahead of the monetary policy meet of the RBI
scheduled today and the January series F&O expiry slated for
Thursday.
Axis
Bank to raise `5,546cr via QIP and preferential allotment
Axis Bank Ltd. (AXSB), India’s third- largest non-state
lender by market value, began a share sale to raise as much as 55.5 billion
rupees ($1 billion). The bank, based in Mumbai, is offering 39.9 million
shares at 1,390 rupees, or 1.6 percent below the stock’s closing price
yesterday of 1,412.95 rupees, according to a term sheet obtained by
Bloomberg News. The sale is India’s largest this year and comes after
companies raised 573 billion rupees selling equity in 2012, data compiled by
Bloomberg show. Foreign demand for Indian stocks helped lift the benchmark BSE
India Sensitive Index (SENSEX) this month to its highest level in
more than two years. Axis Bank is the third-best performer in the 14-stock
Bankex index over the last six months. The lender said last month it would
offer as many as 45.8 million shares in a so- called qualified institutional
placement, a sale earmarked for institutional investors. As part of the
offering, the bank would make a preferential issue of 6.05 million shares to
state-owned lenders, including Life Insurance Corp. of India, according to a
stock exchange notification on Dec. 27. The placement includes 5.9 million
preferential shares, the terms show. The company has received more than
enough demand for the share sale, two people with knowledge of the matter
said. Axis Capital, Citigroup Inc. (C) and JPMorgan Chase &
Co. are managing the transaction, the people said, asking not to be identified
as the information is private. The bank began the offering yesterday, it said
in a stock exchange filing without offering any additional details. Source: Bloomberg
Adani Ports to sell 100% in Abbot Point to promoter
Adani Ports and Special Economic Zone Limited (APSEZ) has decided to sell 100 per cent stake in Abbot Point Coal Terminal in Australia to its promoter family. "The company will sell 100 per cent stake in the Abbot Point terminal to the Adani Family. The equity portion in Abbot Point acquisition was around $235 million and the rest of the amount was debt portion. The entire equity and debt portion will be transferred to the promoter family," said B Ravi, chief financial officer, APSEZ. The company had made the Abbot Point acquisition through around $2 billion debt (about Rs 11,000 crore). "We expect to raise at least $235 million or Rs 1,300 crore of the enterprise value of Abbot Point from this stake sale. However, the valuation is under process," added Ravi. The stake sale will also reduce company's debt-to-equity (D/E) ratio significantly from around 3.2:1 to about 1.2:1. The decision to sell stake comes on the back of a lower rate of return on foreign operations and the strained financial conditions after the Abbot Point acquisition. "The company will concentrate more on Indian operations. However, it does not mean that it will never venture into any overseas deal," said Ravi. In a statement issued on Monday, APSEZ said the board of directors has given in-principle approval for divestment of stake in the Australian venture. The statement, however, did not give any details on the valuations. The proceeds of the stake sale will also be used to buy Dhamra Port from Larsen & Toubro and Tata Steel for about $1 billion (about Rs 5,500 crore). In a client note dated January 27, Citibank valued Abbott Point at Rs10 a share on a discounted cash flow to equity basis, using a cost of equity of 13 per cent. “To focus on the high growth Indian ports and logistics sector and maintain its leadership position in India, the board of APSEZ has in-principle decided to divest its significant stake in entities controlling the Abbot Point Coal Terminal in Queensland, Australia to the Adani family, subject to requisite approvals, formalities and clearances, at a valuation determined by an independent valuer,” said B Ravi, chief financial officer of APSEZ, in a statement issued after the board meeting. “This divestment will further enhance the financial strength of APSEZ in order to pursue its plans to acquire or set up new ports and logistics assets in India,” Ravi added. In 2011, Adani had acquired Abbot Point for a consideration of around AUS$1.8 billion. APSEZ is a private port located in Gujarat, but is facing roadblocks from the government on its SEZ project as the land parcels are not meeting the SEZ norms. According to analysts, the cargo growth at Mundra Port has outpaced growth at major ports in India. Apart from Australian coal terminal, over the past few years, APSEZ has been developing a number of other ports and terminals such as Dahej, Hazira, Marmugao, Kandla and Vizag. Soon after the announcement, APSEZ’s stock shot up 4.9 per cent to Rs 137 a share. APSEZ’s stock price has underperformed the BSE Sensex by 14 per cent in CY12 and 31 per cent over the past one year. Analysts say the key reason behind the underperformance is a sharp increase in leverage and a fall in returns on capital employed. These factors are set to reverse as capex is nearing completion, according to analysts. Analysts warn that if the company embarks on another round of capacity expansion or undertakes a major acquisition leading to increased debt levels, it will impact its stock performance. According to analysts, slower than expected traffic growth due to weak economic conditions is another key risk. Source: Business Standard
V-Guard Net jumps 23 pc at Rs 15 cr in December quarter
The Kerala-based diversified V-Guard Group today reported 23 per cent increase in its net profit at Rs 15.35 crore on the back of a 42 per cent rise in revenues in the December quarter. Revenue for the quarter rose to Rs 349 crore, an increase of 42 per cent over corresponding period last financial year at Rs 246.60 crore, the company said in a release. The company attributed low profit to higher ad spends as it launched new products in the reporting period. During the quarter under review, advertisement spend has increased by 141 per cent per cent resulting in reduction in margins, the company said. The company manufactures voltage stabilisers, wiring cables, electric pumps, electric motors, geysers, solar water heaters, electric fans and UPSes. On the business outlook, V-Guard Industries BSE -0.37 % Managing Director Mithun K Chittilappilly said, "we intend to continue to grow our business across all verticals to maintain the momentum this year as well and stabilisers, wires, pumps and digital UPS are expected to do well in the fourth quarter.Source: Economic Times
Tata Tele's Q3 net loss widens to Rs 197.16 cr
Tata Teleservice (Maharashtra) today said its net loss has widened to Rs 197.16 crore in the three months ended December 2012, mainly due to foreign exchange related accounting adjustments and financing costs. Tata Teleservice (Maharashtra), which provides telecom services, had reported net loss of Rs 144.62 crore for the same period a year ago. In the period under review, the company's finance cost stood at Rs 138.20 crore and it incurred a charge of Rs 91.74 crore related to accounting adjustments in foreign exchange. There was also an increase in network operation cost by 27 per cent at Rs 159.43 crore during the reported quarter compared to Rs 125.29 crore for the same period a year ago. The revenue, however, increased by 4.19 per cent to Rs 651 crore from Rs 624.72 crore in the year ago period. "The Company maintained a strong focus on wireless broadband services. Its VAS (Value added services) and data revenues accounted for 37 per cent of total wireless revenues in Q3 FY13," the company said in a statement. Source: Economic Times
Puravankara Projects’Q3 net jumps 101%
Real estate firm Puravankara ProjectsBSE 0.98 % has reported 101% increase in this quarter profit for the fiscal year 2013 at Rs 64 crore. Net sales for the October-December quarter rose 60% over the year-ago period to Rs 311 crore. "The higher margins are due to good sale both in new and completed projects. Around 73% of the sales were from under construction projects, while the remaining was contributed by completed projects," Jackbastian K. Nazareth Group Chief Executive Officer Puravankara Projects said. The builder, which sold 0.91 million sq ft of new space in the third quarter valued at Rs 355 crore, is targeting sales volume of 3 million sq ft for the full year. "We had already sold 2.14 million sft for the current fiscal year and expect to exceed the target by end of current financial year, Ashish Puravankara joint managing director, Puravankara Projects, said The company has also informed BSE that the board of directors has decided and approved the Issue of non-convertible debentures to the extent of Rs. 60.00 crore to Xander Finance. Last December, Puravankara raised over Rs 365 crore ($68 million) with an assured return of 16% from an investment arm of J P Morgan for Purva Windermere a premium residential project in Chennai. Puravankara has 25.92 million sft of projects, with economic interest at various stages of development under Provident and Puravankara brands. Additionally it will launch 3.5 million square feet by end of current financial year. The average sale price realisation for Puravankara's residential projects has improved to Rs 4307 per sq ft from Rs 3835 per sq ft in the year-ago period. While for Provident, the affordable housing projects by the Group, the average sale realisation was Rs 2,752 per sft in October-December quarter as against 2,671 sft in the same period last year. The developer has a land bank of 84 million sft with economic interest across the country. The company's debt equity ratio is 0.82 with a net debt of Rs 1515 crore. It plans to bring down its debt equity ratio 0.65 in the next two quarters. Puravankara's shares closed 2.48% up at Rs 107.25 on the Bombay Stock Exchange on Monday. Source: Economic Times
Amara Raja Batteries Q3 net up 23 pc at Rs 80.91 cr
Amara Raja BatteriesBSE 4.30 % today reported 22.73 per cent increase in net profit for the third quarter ended December 31, 2012 at Rs 80.91 crore. The company had posted a net profit of Rs 65.92 crore in the same period last fiscal, Amara Raja Batteries said in a filing to the BSE. Net sales during the quarter under review stood at Rs 756.87 crore as against Rs 612.39 crore in the year-ago period, it added. Commenting on the performance, Amara Raja Batteries Managing Director Jayadev Galla said the company has been able to grow in double digits both in top-line and bottom-line despite slack demand from OE customers in automotive segment, supply challenges for want of capacities in all product lines except two-wheeler batteries, and cost escalations. "The company is keeping a close watch on cost increases due to power shortage, power tariff hike, rising commodity and fuel prices, and volatility in currency markets," he said, adding the company was confident of its growth prospects and continued to invest on capacities and products to support market leading growth in the medium and long term. Commenting on the future plans, company Executive Director Ravi Bhamidipati said to capitalise on the growth opportunities Amara Raja Batteries has decided to invest Rs 440 crore to augment capacities of different battery types over a period of 16 to 18 months. This investment is in addition to already approved capital investment of Rs 304 crore, he added. Shares of Amara Raja Batteries settled at Rs 301.50 per share, up 1.07 per cent from the previous close on the BSE. Source: Economic Times
Adani Ports and Special Economic Zone Limited (APSEZ) has decided to sell 100 per cent stake in Abbot Point Coal Terminal in Australia to its promoter family. "The company will sell 100 per cent stake in the Abbot Point terminal to the Adani Family. The equity portion in Abbot Point acquisition was around $235 million and the rest of the amount was debt portion. The entire equity and debt portion will be transferred to the promoter family," said B Ravi, chief financial officer, APSEZ. The company had made the Abbot Point acquisition through around $2 billion debt (about Rs 11,000 crore). "We expect to raise at least $235 million or Rs 1,300 crore of the enterprise value of Abbot Point from this stake sale. However, the valuation is under process," added Ravi. The stake sale will also reduce company's debt-to-equity (D/E) ratio significantly from around 3.2:1 to about 1.2:1. The decision to sell stake comes on the back of a lower rate of return on foreign operations and the strained financial conditions after the Abbot Point acquisition. "The company will concentrate more on Indian operations. However, it does not mean that it will never venture into any overseas deal," said Ravi. In a statement issued on Monday, APSEZ said the board of directors has given in-principle approval for divestment of stake in the Australian venture. The statement, however, did not give any details on the valuations. The proceeds of the stake sale will also be used to buy Dhamra Port from Larsen & Toubro and Tata Steel for about $1 billion (about Rs 5,500 crore). In a client note dated January 27, Citibank valued Abbott Point at Rs10 a share on a discounted cash flow to equity basis, using a cost of equity of 13 per cent. “To focus on the high growth Indian ports and logistics sector and maintain its leadership position in India, the board of APSEZ has in-principle decided to divest its significant stake in entities controlling the Abbot Point Coal Terminal in Queensland, Australia to the Adani family, subject to requisite approvals, formalities and clearances, at a valuation determined by an independent valuer,” said B Ravi, chief financial officer of APSEZ, in a statement issued after the board meeting. “This divestment will further enhance the financial strength of APSEZ in order to pursue its plans to acquire or set up new ports and logistics assets in India,” Ravi added. In 2011, Adani had acquired Abbot Point for a consideration of around AUS$1.8 billion. APSEZ is a private port located in Gujarat, but is facing roadblocks from the government on its SEZ project as the land parcels are not meeting the SEZ norms. According to analysts, the cargo growth at Mundra Port has outpaced growth at major ports in India. Apart from Australian coal terminal, over the past few years, APSEZ has been developing a number of other ports and terminals such as Dahej, Hazira, Marmugao, Kandla and Vizag. Soon after the announcement, APSEZ’s stock shot up 4.9 per cent to Rs 137 a share. APSEZ’s stock price has underperformed the BSE Sensex by 14 per cent in CY12 and 31 per cent over the past one year. Analysts say the key reason behind the underperformance is a sharp increase in leverage and a fall in returns on capital employed. These factors are set to reverse as capex is nearing completion, according to analysts. Analysts warn that if the company embarks on another round of capacity expansion or undertakes a major acquisition leading to increased debt levels, it will impact its stock performance. According to analysts, slower than expected traffic growth due to weak economic conditions is another key risk. Source: Business Standard
V-Guard Net jumps 23 pc at Rs 15 cr in December quarter
The Kerala-based diversified V-Guard Group today reported 23 per cent increase in its net profit at Rs 15.35 crore on the back of a 42 per cent rise in revenues in the December quarter. Revenue for the quarter rose to Rs 349 crore, an increase of 42 per cent over corresponding period last financial year at Rs 246.60 crore, the company said in a release. The company attributed low profit to higher ad spends as it launched new products in the reporting period. During the quarter under review, advertisement spend has increased by 141 per cent per cent resulting in reduction in margins, the company said. The company manufactures voltage stabilisers, wiring cables, electric pumps, electric motors, geysers, solar water heaters, electric fans and UPSes. On the business outlook, V-Guard Industries BSE -0.37 % Managing Director Mithun K Chittilappilly said, "we intend to continue to grow our business across all verticals to maintain the momentum this year as well and stabilisers, wires, pumps and digital UPS are expected to do well in the fourth quarter.Source: Economic Times
Tata Tele's Q3 net loss widens to Rs 197.16 cr
Tata Teleservice (Maharashtra) today said its net loss has widened to Rs 197.16 crore in the three months ended December 2012, mainly due to foreign exchange related accounting adjustments and financing costs. Tata Teleservice (Maharashtra), which provides telecom services, had reported net loss of Rs 144.62 crore for the same period a year ago. In the period under review, the company's finance cost stood at Rs 138.20 crore and it incurred a charge of Rs 91.74 crore related to accounting adjustments in foreign exchange. There was also an increase in network operation cost by 27 per cent at Rs 159.43 crore during the reported quarter compared to Rs 125.29 crore for the same period a year ago. The revenue, however, increased by 4.19 per cent to Rs 651 crore from Rs 624.72 crore in the year ago period. "The Company maintained a strong focus on wireless broadband services. Its VAS (Value added services) and data revenues accounted for 37 per cent of total wireless revenues in Q3 FY13," the company said in a statement. Source: Economic Times
Puravankara Projects’Q3 net jumps 101%
Real estate firm Puravankara ProjectsBSE 0.98 % has reported 101% increase in this quarter profit for the fiscal year 2013 at Rs 64 crore. Net sales for the October-December quarter rose 60% over the year-ago period to Rs 311 crore. "The higher margins are due to good sale both in new and completed projects. Around 73% of the sales were from under construction projects, while the remaining was contributed by completed projects," Jackbastian K. Nazareth Group Chief Executive Officer Puravankara Projects said. The builder, which sold 0.91 million sq ft of new space in the third quarter valued at Rs 355 crore, is targeting sales volume of 3 million sq ft for the full year. "We had already sold 2.14 million sft for the current fiscal year and expect to exceed the target by end of current financial year, Ashish Puravankara joint managing director, Puravankara Projects, said The company has also informed BSE that the board of directors has decided and approved the Issue of non-convertible debentures to the extent of Rs. 60.00 crore to Xander Finance. Last December, Puravankara raised over Rs 365 crore ($68 million) with an assured return of 16% from an investment arm of J P Morgan for Purva Windermere a premium residential project in Chennai. Puravankara has 25.92 million sft of projects, with economic interest at various stages of development under Provident and Puravankara brands. Additionally it will launch 3.5 million square feet by end of current financial year. The average sale price realisation for Puravankara's residential projects has improved to Rs 4307 per sq ft from Rs 3835 per sq ft in the year-ago period. While for Provident, the affordable housing projects by the Group, the average sale realisation was Rs 2,752 per sft in October-December quarter as against 2,671 sft in the same period last year. The developer has a land bank of 84 million sft with economic interest across the country. The company's debt equity ratio is 0.82 with a net debt of Rs 1515 crore. It plans to bring down its debt equity ratio 0.65 in the next two quarters. Puravankara's shares closed 2.48% up at Rs 107.25 on the Bombay Stock Exchange on Monday. Source: Economic Times
Amara Raja Batteries Q3 net up 23 pc at Rs 80.91 cr
Amara Raja BatteriesBSE 4.30 % today reported 22.73 per cent increase in net profit for the third quarter ended December 31, 2012 at Rs 80.91 crore. The company had posted a net profit of Rs 65.92 crore in the same period last fiscal, Amara Raja Batteries said in a filing to the BSE. Net sales during the quarter under review stood at Rs 756.87 crore as against Rs 612.39 crore in the year-ago period, it added. Commenting on the performance, Amara Raja Batteries Managing Director Jayadev Galla said the company has been able to grow in double digits both in top-line and bottom-line despite slack demand from OE customers in automotive segment, supply challenges for want of capacities in all product lines except two-wheeler batteries, and cost escalations. "The company is keeping a close watch on cost increases due to power shortage, power tariff hike, rising commodity and fuel prices, and volatility in currency markets," he said, adding the company was confident of its growth prospects and continued to invest on capacities and products to support market leading growth in the medium and long term. Commenting on the future plans, company Executive Director Ravi Bhamidipati said to capitalise on the growth opportunities Amara Raja Batteries has decided to invest Rs 440 crore to augment capacities of different battery types over a period of 16 to 18 months. This investment is in addition to already approved capital investment of Rs 304 crore, he added. Shares of Amara Raja Batteries settled at Rs 301.50 per share, up 1.07 per cent from the previous close on the BSE. Source: Economic Times
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