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TCS in focus after unveiling Q3 business update

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Last Updated : Dec 15 2014 | 9:30 AM IST

IT major TCS in its business update for Q3 December 2014 issued after trading hours on Friday, 12 December 2014, said that currency fluctuations will have a marginal positive impact on the company's earnings before interest and tax (EBIT) in Q3 December 2014. The target EBIT margin band for Q3 December 2014 remains unchanged, TCS said. There will be adverse currency impact of 20 basis points (bps) on constant currency revenue in rupee terms in Q3 December 2014. There will be adverse currency impact of 220 bps on constant currency revenue in dollar terms in Q3 December 2014. TCS said that revenue in Q3 December 2014 is expected to be in-line with the seasonal trends. Retail, manufacturing and Hi-Tech verticals are likely to see impact of holidays and furloughs. The BFSI vertical continues to be impacted by weakness in insurance and products. Telecom and smaller verticals are expected to grow better than the company average. Demand environment in North America is on expected lines, adjusted for seasonal weakness. TCS expects business in Europe to grow better than average while the business in UK remains weak due to seasonality and impact of insurance. TCS said that the strength in the IT infrastructure services vertical continues.

Shares of insurance companies will be in focus after the Ministry of Parliamentary Affairs on Saturday, 13 December 2014, said that the Insurance Laws (Amendment) Bill, 2008 will be taken up for consideration and passing in both the Houses of Parliament during the week beginning on 15 December 2014. The Union Cabinet, last week, approved the official amendments to the Insurance Laws (Amendment) Bill, 2008. The Parliamentary Select Committee in its report tabled in Rajya Sabha on 10 December 2014 agreed a composite cap of 49% on foreign investment in the insurance sector, which includes all types of foreign investment as opposed to the 26% foreign direct investment (FDI) allowed at present. Finance Minister Arun Jaitley had said in his maiden budget speech in July that the composite cap in the insurance sector should be increased to 49% from the current level of 26%, with full Indian management and control.

Shares of steel and mining companies, cement firms and power generation companies will be in focus after the Lok Sabha on Friday, 12 December 2014, passed the Coal Mines (Special Provisions) Bill, 2014. The bill allows the government to enforce rules and guidelines for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The challenge for the government now will be to find support for the bill in the Rajya Sabha where it's in a minority.

Shares of public sector companies will be in focus after Minister of State for Finance Jayant Sinha said in written reply to a question in the Lok Sabha on Friday, 12 December 2014, that as per the Action Plan of 2014-15 on disinvestment, the government intends to sell 5% stake in ONGC, 10% stake in Coal India, 11.36% stake in NHPC, 5% stake in Power Finance Corporation, 5% stake in Rural Electrification Corporation, 5% stake in Container Corporation of India, 10% stake in SJVN, 10% stake in MOIL, 10% stake in Rashtriya Ispat Nigam and 10% stake in Hindustan Aeronautics during the current fiscal year. In addition, some loss-making central public sector enterprises (CPSEs) may also be disinvested in 2014-15, Sinha said. However, they have not yet been identified, he said.

Tata Motors after trading hours on Friday, 12 December 2014, said that Tata Motors Group's global wholesales rose 2.37% to 83,906 units in November 2014 over November 2013. Global wholesales for Jaguar Land Rover (JLR) rose 3.4% to 41,318 units in November 2014 over November 2013.

Oil & Natural Gas Corporation (ONGC)'s Board at its meeting held on Friday, 12 December 2014 notified of the three discoveries made recently; one in deepwater Krishna Godavari Basin, off the east coast of the country, one in Mumbai offshore Basin, off the west coast of the country and one in Cauvery basin in the southern onland part of the country.

ONGC's Board of Directors also approved interim dividend of Rs 5 per share for the year ending 31 March 2015. The announcement was made after market hours on Friday, 12 December 2014.

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Pidilite Industries said that the company alongwith its wholly owned subsidiary Pidilite International Pte. has incorporated a private limited subsidiary company in Ethiopia on 10 December 2014 in the name of "PIDILITE CHEMICAL PLC" for manufacture of adhesives, mastics, paints, varnishes or similar coatings, printing, writing and painting inks etc. The announcement was made after market hours on Friday, 12 December 2014.

Siemens said it recently won an order worth approximately Rs 317 crore from Bihar Grid Company, a joint venture between Bihar State Power Holding Company and Power Grid Corporation of India. This is Siemens' first GIS substation order from BGCL and also marks the establishment of the first 220 kV GIS in the state of Bihar, Siemens said. The announcement was made after market hours on Friday, 12 December 2014.

With respect to news titled "Reckitt Benckiser, Dabur Row over Copyright escalates," Dabur India clarified after market hours on Friday, 12 December 2014, that the injunction application of Reckitt Benckiser (India) & Another (the plaintiffs) have disposed off by the high court and has ordered that plaintiffs has failed to make out a prima facie case for temporary injunction either on the ground of infringement of trademark , copyright or passing off against Dabur India (defendant) for the TVC of Pudin Hara Lmon Fizz alleging that TVC infringes its registered trademark Firman Device of its product Gaviscon. The plaintiffs are not entitled to the relief of temporary injuntion in respect of the TVC. During the pendency of the suit, there would be no interim order against the TVC of the defendant. The high court has further ordered that in case of any modification in the said TVC, the defendant shall take necessary permission from the court. The defendant is not allowed to use the 'Fireman Device on the packaging of the product including the print media. Against the order of single judge, the plaintiffs have filed an appeal before the division bench of high court of Delhi which is pending for adjudication. The company further said news item published in the media has no material impact on the firm.

Oil India (OIL) announced after market hours on Friday, 12 December 2014, that OIL has signed an memorandum of understanding (MOU) with Zarubezhneft, Russia during the India-Russia Annual Summit on 11 December 2014 at New Delhi. As per the scope of cooperation of MOU both parties intend to work together in the areas of joint search and evaluation of hydrocarbon exploration and production (E&P) and technological association and any other areas of common interest.

With respect to media reports titled Tata Chemicals to invest in Chennai, Tata Chemicals after market hours on Friday, 12 December 2014 replied that phase one of the plan is to set up 1000 tonnes per annum (TPA) prebiotic plant in Sriperumbudur near Chennai. Out of this, 300 TPA Fructo-oligosacchride (FOS) plant has gone on stream already. The expected investment at the scale of 1000 TPA is about Rs 50 crore. The plan is to expand this unit to 5000 TPA over a period of 3 to 5 years with a further investment of around Rs 100 crore, Tata Chemicals said.

Indian Overseas Bank before market hours today, 15 December 2014 said that the Board at its meeting held on 5 December 2014 accorded its approval to the Bank to raise capital of Rs 2000 crore with an option to retain oversubscription up to Rs 600 crore aggregating to Rs 2600 crore as capital by way of issue of perpetual bonds (Additional Tier I Bonds) at appropriate time in one or more tranches on private placement basis depending upon the market conditions. The Bank is in the process of getting approval from Government of India to raise capital by way of AT1 bonds and are taking necessary steps in this regard.

GMR Infrastructure said that GMR Hyderabad International Airport (GHIAL), a subsidiary of GMR Infrastructure on 12 December 2014 acquired 9.67 crore shares of face value of Rs 10 each, representing 44.61% stake in MAS GMR Aerospace Engineering Company (MGAE) from Malaysia Aerospace Engineering SDN BHD (MAE) for a nominal consideration. Before acquisition of the stake, MGAE was a Joint Venture Company of GHIAL and MAE. With this acquisition of stake from MAE, MGAE has now become a wholly owned subsidiary of GHIAL. The announcement was made after market hours on Friday, 12 December 2014.

With respect to disclosure on12 December 2014 titled Majesco to Acquire the Business of Agile Technologies, Mastek replied after market hours on Friday, 12 December 2014, that this is an acquisition by Majesco Inc. U.S. (formerly known as Majesco Mastek USA) a wholly owned subsidiary of Mastek in USA with the objective of strengthening the insurance business portfolio. Regarding the further queries raised by the exchanges about the acquisition, the company said the acquisition would not fall under the related party transactions. The information regarding estimated cost of acquisition or the price at which the shares are acquired and nature of consideration - whether cash consideration or share swap and details of the same cannot be disclosed at this point of time, Mastek said.

OnMobile Global announced after market hours on Friday, 12 December 2014, that the Board of Directors of the company have approved buyback of shares at a price not exceeding Rs 86 per share for an aggregate amount not exceeding Rs 49 crore. The board has further resolved that the buy-back period shall in any case close within six months from date of opening of the offer. The buyback shall be from the open market through stock exchange methodology.

Lyka Labs scheduled a meeting of the Board of Directors of the company on 17 December 2014 to consider issue of further shares/warrants/any other securities on preferential basis to promoter/promoter group/others. The announcement was made after market hours on Friday, 12 December 2014.

Metkore Alloys & Industries said that the metal recovery plant commenced operations for extracting ferro chrome from the slag for which the company entered long term contract with Harsco India. From these operations, the company will benefit by over Rs 100 crore in a timeline of four years.

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First Published: Dec 15 2014 | 8:41 AM IST

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