Mumbai: The country’s largest steel producer, Steel Authority of India Ltd (SAIL), said net income climbed 18% to Rs1,700 crore in the three months to 30 September from Rs1,443 crore a year earlier. The rise, however, was less than the median estimate of seven analysts surveyed by ‘Bloomberg’.
SAIL and its Asian rivals may pay as much as 33% more for imported coal next year, according to McCloskey Group Ltd, likely slowing profit that’s risen for six straight quarters. China’s Baoshan Iron & Steel Co. and South Korea’s Posco posted a drop in earnings in the quarter, citing higher raw material costs. “There’s concern if the company will be able to maintain earnings growth in the face of rising costs,” said Raj Bhandari, director at Networth Stock Broking Ltd in Mumbai.
SAIL shares lost 5.6% on Tuesday to close at Rs261.05 on the Bombay Stock Exchange. bloomberg
Luxembourg: The European Union (EU) prolonged tariffs on plastic film from India for five more years, curbing access to a $1.2 billion (Rs4,728 crore) market for companies such as Ester Industries Ltd and Garware Polyester Ltd.
The duties punish Indian exporters of polyethylene terephthalate film for selling it in the EU below domestic prices or production costs, a practice known as dumping. The product is used in goods such as plastic food packaging, video tapes and refrigerator engines.
“There will be a significant increase of dumped imports if anti-dumping measures were to be removed,” the 27-nation EU said in a decision on Tuesday in Luxembourg. The continuation of the duties, which are as high as 18%, will take effect after being published in the Official Journal.
Indian producers are challenging higher-cost European manufacturers including DuPont Teijin Films, Mitsubishi Polyester Film GmbH, Nuroll SpA and Toray Plastics Europe in a western European market worth €800 million a year.
India’s share of the EU market for polyethylene terephthalate film rose to 9% in the 12 months through June 2006 from 5% in 2003, according to the EU. bloomberg
Mumbai: A provider of IT-enabled services Axon Infotech Ltd said on Tuesday it plans to buy 51% stake in Bangalore-based Quasar Innovations Pvt. Ltd for an undisclosed sum.
The payment for the stake buyout will be completed by 6 November, the company said in a statement.
Quasar provides original equipment manufacturers and network operators with device-engineering services.
Axon Infotech shares gained 2.3% on Tuesday to close at Rs659.55 on the Bombay Stock Exchange. REUTERS
Paris: French wines and spirits group Pernod Ricard benefited from rising sales in China’s and India’s economies, which helped push up first quarter revenue 6.9%, above forecasts.
Shares in the world’s second largest wine and spirits group jumped as much as 3.5% in Paris, after it said sales rose to €1.56 billion (Rs8,845 crore). A ‘Reuters’ poll of 10 analysts had given an average sales forecast of €1.52 billion.
“These results enable the confirmation, in current market conditions and on a like-for-like basis, of guidance of strong growth in sales and operating profit from ordinary activities for Pernod Ricard in 2007-08”, chairman Patrick Ricard said in a statement.
Drink makers have targeted fast growing emerging markets to increase turnover. Pernod said it had underlying sales growth of 30% in China during the first quarter, and similarly high revenue growth in India. reuters/BLOOMBERG
Hong Kong: Telecommunication services company, GTL Infrastructure Ltd, increased a convertible bond sale by 25% after investors placed orders over four times the amount on offer.
The Mumbai-based company raised the sale of the five-year securities to $250 million (Rs985 crore) from $200 million, according to an email sent to investors. The amount can be raised by another $50 million to meet demand from investors, the email said. The deal attracted more than $1 billion in orders.
GTL Infrastructure lured investors with its record share price, selling low-cost, equity-linked debt to acquire telecommunications towers used mainly for mobile phone networks, and to fund expansion.
The company’s shares gained 92% since they started trading in November, outpacing the benchmark Bombay Stock Exchange Sensitive Index’s 52% increase. bloomberg
New Delhi: India’s second biggest utility by market value Reliance Energy Ltd (REL), will separate its road, metro rail, bridges and real estate businesses that have investments worth $4.6 billion (Rs18,124 crore) planned along with partners.
The plan was approved by the company board, Mumbai-based REL said in a statement to the Bombay Stock Exchange on Tuesday.
The businesses will be managed by a fully-owned unit that will help improve value of REL, run by billionaire chairman Anil Ambani.
India needs to double spending to $500 billion on public works over the next five years to sustain record economic growth, finance minister P. Chidambaram had said in New Delhi on Monday. bloomberg
New Delhi: India’s biggest refiner, Indian Oil Corp. (IOC), said second quarter profit rose 25% as a stronger rupee reduced crude import costs and pared overseas loan repayments.
Net income rose to Rs3,818 crore in the three months ended 30 September from Rs3,050 crore a year ago, the company said in a statement to the Bombay Stock Exchange (BSE). Sales fell 1.6% to Rs49,790 crore.
The rupee climbed 2.2% during the quarter, lowering crude purchase costs and loan repayments by Rs1,290 crore. The profit will help chairman Sarthak Behuria offset losses from selling fuels at prices below cost under government orders.
IOC shares on Tuesday closed with a gain of 4.26% at Rs467.25 on BSE. bloomberg
Lagos: Six foreign oil workers, including Indians, who were abducted from an offshore oil field in the Niger Delta were released on Tuesday after three days in captivity, officials said. The Indian and Polish workers are in good health, Italian energy giant Eni SpA said.
Gunmen in speedboats abducted the workers at dawn last Friday from the Mystras, some 80km offshore. Another Nigerian worker was reported to have been wounded on the leg during the attack. A militant group, the Movement for the Emancipation of the Niger Delta, owned up the attack.
The Mystras is capable of producing 80,000 barrels of crude oil per day.
Militants have abducted more than 150 foreigners this year to press their demand for local control of oil revenues.
The attacks since late 2005 have cut Nigeria’s regular oil output by about 20% helping send crude prices toward all-time highs. AP
New Delhi: German Chancellor Angela Merkel on Tuesday urged India, one of the world’s biggest polluters, to do more to combat climate change, saying her country was willing to help New Delhi make progress.
Merkel, a former environment minister who has pushed global warming to the top of her international agenda, said rich nations and emerging economies needed to strike a balance over the amount of responsibility they need to shoulder to prevent climate change and not fight over it.
“We have to prove that we are willing to strike a balance,” Merkel, who began a four-day visit to India on Monday, told business leaders in New Delhi. “Multilateral agreements are of the essence.” Germany could help India become a more efficient user of energy by sharing technology to avoid “mistakes we made in the industrial countries”, she said. reuters
Bangalore: Think ‘Batman’, ‘Spiderman’, ‘Matrix’ and India’s very own ‘Krrish’, all movies with visual special effects that helped create box office hits.
Such visual effects, or VFX, in India could become a $1 billion (Rs3,940 crore) market in the next decade, nearly 10 times its current size, as more Hollywood companies turn to outsourcing, said Eric Roth, executive director of Visual Effects Society.
Still, said Roth, Indian films are not at par with Hollywood, in optimum usage of VFX. “Bollywood is at a very initial stage in using VFX,” he said. “However India is an emerging market. While the level of sophistication does not match Hollywood, the gap is closing. Over the next few years, quality will go up.” DEEPTI CHAUDHARY
New Delhi:Time Inc.’s ‘Fortune’ magazine formally announced its partnership with Anand Bazar Patrika (ABP) Pvt. Ltd for an Indian edition. The new magazine is slated to be launched sometime early next year, the companies said. The ABP group publishes Bengali daily ‘Anandabazar Patrika’ and English newspaper ‘The Telegraph’ and runs news channels—Star News in Hindi and Star Ananda in Bengali. It also publishes ‘Businessworld’ magazine
“The whole impetus for the deal was to create a significant footprint for ‘Fortune’ in India,” said Vivek Shah, president of the Fortune Money Group, which includes magazines such as ‘Fortune’, ‘Money’ and ‘Fortune Small Business’, and the website CNNMoney.com. Shah declined to discuss financial details.
“Details on issues including pricing, editorial content, hiring, circulation will be worked out in the near future,” said Shah. “We will decide in due course on the ratio of how much content would be generated locally and how much will come from the ‘Fortune’ magazine globally.” Rajeshwari Sharma
Ahmedabad: Manufacturer of agro-chemicals, Meghmani Organics Ltd, has announced plans to set up a caustic chlorine complex at Dahej in Gujarat at a cost of Rs503.16 crore. The company plans to set up a special purpose vehicle Meghmani Finechem Ltd for this integrated complex, which will produce caustic soda lye/flakes, chlorine gas and hydrogen gas in the first phase.
“We hope to earn a revenue of Rs250 crore at the end of one year from commercial operation of first phase in 2009 and double this revenue after completion of the second phase six months later,” Ashish Soparkar, managing director of Meghmani, said. Sunil Raghu
Mumbai: Plastic products maker Sintex Industries Ltd on Tuesday bought French auto parts firm NIEF Plastics Groupe for its third acquisition in the segment in less than five months.
Sintex paid €30.7 million (Rs174 crore) for NIEF, which had sales of €120 million in 2006.
Sintex, which makes fuel tanks in its auto plastics division, is looking at acquisitions to strengthen its auto component portfolio.
Sintex shares gained 4% to close at Rs432.70 on the Bombay Stock Exchange. REUTERS
Bangalore: Networking product major, Cisco Systems Inc., said it has increased the outlay for its venture capital (VC) investment activities in India by $100 million (Rs394 crore) to incubate new technologies in areas such as health care solutions.
Cisco also took a minority stake in a venture of Satyam Computer Services Ltd, but terms were not disclosed.
Satyam, India’s fourth largest software exporter, said the new venture will develop virtual health management solutions based on Cisco’s technology platforms for health care services, first in India and later expand it to other emerging markets.
“I will be disappointed if we grow less than 30% (in revenues, per annum) over the next three to five years,” said John Chambers, chairman and chief executive of Cisco. K. RAGHU
Mumbai: India’s biggest power-equipment maker Bharat Heavy Electricals Ltd said its second-quarter profit almost doubled.
Net income rose to Rs688 crore in the three months ended 30 September, from Rs360 crore a year ago, New Delhi-based Bharat Heavy told the National Stock Exchange. Profit beat the Rs460 crore median estimate of six analysts polled by Bloomberg. Sales rose 18% to Rs3,970 crore, from Rs3,340 crore.
Income other than from making power equipment almost tripled to Rs500 crore in the three-month period, from Rs170 crore a year earlier because of a tax refund, the company said. Bloomberg
Mumbai: Tata Chemicals Ltd on Tuesday posted a 12.23 % rise in net profit to Rs208.22 crore for the quarter ended 30 September, compared with Rs185.53 crore for the corresponding quarter last fiscal.
The total income of the company increased to Rs1,777.69 crore for the quarter under review, against Rs1,662.53 crore for the same period last year, up 6.93%, the company informed the Bombay Stock Exchange.
The stand-alone net profit of the company declined by 9.58% to Rs142.55 crore for the quarter ended 30 September, compared with Rs157.65 crore for the corresponding quarter last year. The standalone income of the company also increased marginally up to Rs1,299.46 crore for the reviewed quarter, against Rs1,194.20 crore, the company added.
Shares of the company closed at Rs326.10, down 1.15% on the BSE. PTI
New Delhi: The local unit of the world’s biggest food company Nestle India Ltd said its third-quarter profit rose 40%.
Net income in the three months ended 30 September increased to Rs116 crore, from Rs82.98 crore in the year earlier, the New Delhi-based company told the Bombay Stock Exchange on Tuesday. Sales gained 25% to Rs912 crore, from Rs727crore. Bloomberg