The Mint Report October 16 2009

The Mint Report October 16 2009

New Delhi: Tata Consultancy Services has reported better than expected second quarter results. Net profits rose 28.7% to Rs1,624 crore rupees compared to the same period last year. And total revenue for the quarter stood at Rs7,435 crores compared to Rs7,206 crores in the previous year. In recent times, TCS has seen pressure on its fees ease up and has cut its costs and won more outsourcing deals. Friday’s numbers are crucial in reassuring markets about the recovery in India’s IT sector.

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UltraTech Cement reported its second quarter results on Friday. Net profits grew 53% to Rs251 crore rupees compared to the same period last year. Net sales increased to Rs1,541 crore rupees from Rs1,396 crores in the same period last year. Cement production went up 12% to 3.73 million metric tonnes. Ultra Tech says it expects industry demand to grow at 9% in the current fiscal year because of the government’s packages to boost infrastructure and housing.

An economic think-tank says corporate India is likely to see a 22.8% growth in its overall profit after tax or PAT this fiscal year. The Centre for Monitoring Indian Economy says that the manufacturing sector excluding the petroleum industry will see a 24.3% rise in profits after tax. It expects the financial services sector’s PAT to go up 32.2% and the non-financial services sector’s PAT to go up 20.4%.

Satyam Computer Services has delayed the restatement of its accounts by a quarter. While the company’s previous target for restatement was December, it says its accounts won’t be available until March because it has fictitious accounts going back to 2001. Satyam found itself in the middle of India’s biggest accounting scandal in January this year and was later taken over by Tech Mahindra.

China’s largest automaker is considering buying a stake in General Motors’ India operations. SAICO is talking to GM about making minivans and small cars in India to meet local demand for low-priced transport. The two companies are already partners in China and are focusing on introducing Chinese-made Wuling light commercial vehicles into the Indian market.

IIFCL has raised Rs500 crore rupees through taxable bonds in a transaction arranged by Trust Investment Advisor and ICICI Bank. The 15-year bonds have a coupon rate of 8.55%.

Sterlite Industries says it has raised $500 million in convertible notes that are can be converted into American depository shares. The money will be mainly used for expansion in Sterlite’s copper business.

The World Bank says it has approved a $320 million dollar loan for upgrading roads in Andhra. According to the bank, the 30-year loan will help improve the quality and safety of more than 6,000 kilometers of roads in the region.