On a consolidated basis, DLF's net profit fell 28.06% to Rs 100 crore on 3.15% increase in revenue to Rs 2225 crore in Q2 September 2013 over Q2 September 2012.
EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) fell marginally by 0.12% to Rs 863 crore in Q2 September 2013 over Q2 September 2012.
DLF said it witnessed an enthusiastic response to its luxury development-Camellias in DLF 5, Gurgaon. During the quarter, the company sold approx 0.09 million square feet (msf) of the project at an average realization of Rs 28055 per square feet (sq. ft).
On the divestment of the non-core assets, the company has closed the divestiture of the Wind business and Star Alubuild to Lixil. The company has also signed a share purchase agreement with Dewan Housing Finance for sale of shareholding in DLF Pramerica Life Insurance, which is currently awaiting regulatory approvals. Given the pipeline of divestitures, the company said it remains committed to reduce its net debt to Rs 17500 crore by end of the financial year ending March 2014 (FY14).
Lastly, in the current economic & high interest rate environment, the company expects a slow absorption of product in the market. Despite these adverse conditions, the company has managed to more than double its sales bookings in the half year ended 30 September 2013 (H1 FY14) compared to corresponding period of last year. The company said it remains hopeful in achieving its sales booking target for the year. On the leasing front, the company has achieved leasing of 1 msf in H1 FY14 compared to 1.14 msf for the entire year ended March 2013 (FY13).
Infosys after trading hours on Wednesday, 30 October 2013, said that the company has completed a civil settlement that concludes the investigation by the US Attorney's Office for the Eastern District of Texas and resolves all issues with the US Department of State, Immigrations and Customs Enforcement and the US Department of Homeland Security relating to I-9 paperwork errors and visa matters that were the subject of the investigation. There were no criminal charges or court rulings against the company, Infosys said. Furthermore, there are no limitations on the company's eligibility for federal contracts or access to US visa programs as a result of the settlement, Infosys said.
In the settlement, Infosys has agreed to pay $34 million to resolve all allegations, for which the company had already taken a reserve of $35 million which included attorney's fees. The settlement is focused on historical I-9 paperwork errors from 2010-2011 that Infosys began correcting before the investigation began. There is no evidence that the I-9 paperwork violations allowed any Infosys employee to work beyond their visa authorization. As reflected in the settlement, Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse, the software major said in a statement. The company's use of B-1 visas was for legitimate business purposes and not in any way intended to circumvent the requirements of the H-1B program, Infosys said. Only 0.02% of the days that Infosys employees worked on US projects in 2012 were performed by B-1 visa holders.
In the settlement agreement, the US Government acknowledged that Infosys demonstrates a commitment to compliance with the immigration laws through its current visa and I-9 practices. This settlement removes the uncertainty of prolonged litigation and allows the management to continue to focus on delivering measurable results for the company's clients, Infosys said.
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The central board of State Bank of India (SBI) has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Central Bank of India said it board has approved raising upto Rs 1800 crore by issuing equity shares to the Government of India on preferential basis. The board has fixed 5 November 2013 as the relevant date for the purpose of determining the issue price.
Union Bank of India's board has approved raising upto Rs 1997 crore through preferential allotment of shares/qualified institutional placements/rights issue.
Power Grid Corporation of India said its board has approved investment proposals worth a total of Rs 2820.04 crore.
Shares of state-run oil refining-cum-marking firms (PSU OMCs) and state-run upstream oil firms will be in focus after an Expert Group set up by the government to advice it on pricing methodology for diesel, domestic LPG and PDS kerosene under the chairmanship of Dr. Kirit S. Parikh on Wednesday, 30 October 2013, suggested that the best course of action is to free the market from all price controls on diesel, domestic LPG and PDS kerosene at the earliest.
In view of the significant gap between the present administered prices and the international prices, the committee has spelt out the arrangements that may prevail in the interim till the best course of action is implemented. The Expert Group was of the opinion that since the government has already decided to eventually free diesel price, there is no need to tinker with the existing pricing formula, which, even if modified, will not solve the problem of mounting under-recoveries incurred on sales of controlled products, mainly due to high international crude prices and depreciation of Indian rupee.
The committee was of the opinion that the government should take steps to pass on the impact of rise in price of diesel to consumers and move rapidly towards making the price of diesel market determined. The committee has recommended that diesel price be raised by Rs 5 per litre with immediate effect and the balance under-recovery should be made up through a subsidy of Rs 6 per litre to PSU OMCs. The subsidy on diesel should be capped at Rs 6 per litre. This would imply freeing of price of diesel beyond this cap. Any rise in the gap between domestic and international prices beyond Rs 6/litre should be made up by corresponding increase in the price of diesel in the domestic market by the OMCs. If the gap falls below Rs 6/litre, either the prices should be reduced or the subsidy to be provided should be reduced. The second option is recommended by the Expert Group as that would lead to decline in subsidy over time. In the future, oil companies should be permitted to revise the prices above the subsidy cap (in line with the changes in the international prices and other costs elements) on their own. The committee was of the opinion that the fixed subsidy of Rs 6/litre be reduced gradually and finally removed through regular monthly downward revisions in the cap on subsidy and corresponding increase in the price of diesel over the next one year.
As regards, PDS kerosene, the committee has suggested market determined pricing of kerosene and that the benefit of the subsidy to the deserving consumers i.e. BPL families, be given through direct cash transfer mechanism. For this purpose, the DBTK scheme for Direct Transfer of Subsidy to BPL families throughout the country should be fast-tracked and completed within the next two years. Till this is implemented, the price of PDS Kerosene should be increased by Rs 4/litre immediately and thereafter the price of PDS Kerosene be revised from time to time at least in line with growth in the per capita agriculture GDP. Allocation of PDS Kerosene should be reduced with spread of rural electrification and increased use of LPG and PNG for cooking. Since Kerosene is neither exported nor imported and also since there is no custom duty on PDS Kerosene, it's pricing may continue to be based on IPP.
As regards domestic LPG, the committee was of the opinion that the limit for subsidized cylinders be reduced from the present 9 to 6 cylinders per annum to each household and the DBTL scheme be restricted to identified families based on an exclusion criteria. The DBTL scheme should be implemented throughout the country for Direct Transfer of Subsidy to identified families within next one year. The committee has recommended increase in price of subsidized domestic LPG by Rs 250/cylinder immediately and that the balance subsidy be phased out over the next 2 years through gradual price increase. As the country continues to be heavily dependent on imports of LPG, the methodology of fixing refinery gate price of Domestic LPG should continue on IPP basis.
The committee has suggested subsidy sharing burden by ONGC and Oil India based on based on three levels of previous crude oil prices viz. crude price below $80 a barrel, crude price at between $80 to $120 a barrel and crude price above $120 a barrel from the financial year financial year 2014-15 onwards. Keeping in view the current high level of under-recoveries, the contribution from ONGC and Oil India during the financial year 2013-14 may be retained at the existing level of $56/barrel of crude oil produced. As regards GAIL (India), with the reduction in availability of APM gas, the committee has recommended that GAIL's contribution should not exceed the gross profit made on sale of LPG (after allowing a reasonable profit amount to be retained by GAIL).
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