IT stocks may edge higher after Cognizant Technology Solutions Corporation which provides information technology, consulting, and business process outsourcing services on Wednesday, 5 November 2014, raised its guidance for 2014 revenue and non-GAAP EPS after announcing Q3 September 2014 results. Cognizant now expects non-GAAP diluted EPS of least $2.57 in 2014. At the time of announcement of second quarter June 2014 results in August this year, Cognizant had forecast 2014 non-GAAP diluted EPS of at least $2.54. Cognizant's revenue jumped 11.9% to $2.58 billion in Q3 September 2014 over Q3 September 2013. Non-GAAP diluted earnings per share stood at $0.66 in Q3 September 2014, compared to $0.59 in Q3 September 2013. Non-GAAP operating margin was 19.5% in Q3 September 2014, within the company's target range of 19-20%.
Shares of infrastructure developers will be in focus after Prime Minister Narendra Modi on Wednesday, 5 November 2014, directed strict monitoring of projects based on monthly completion targets for road, railway, shipping and civil aviation projects. Emphasizing that there is now no delay in decision-making at the highest level, the Prime Minister said it should now be possible to achieve all infrastructure targets. Modi said that a new civil aviation policy is under preparation. Following the decision to allow 100% foreign direct investment (FDI) in Railways, 20 projects in 10 sectors have been identified for FDI, the Prime Minister's Office (PMO) said in a statement.
Bharti Airtel after market hours on Wednesday, 5 November 2014 in a clarification with regard to news item titled Bharti Airtel Calls off Rs 700 cr Deal with Loop" said that under the agreements executed with Loop Mobile (Loop), the transaction was conditional upon DoT approvals which even as of today has not been received. In this regard the company has been in discussions with Loop, Bharti Airtel said. Loop had late last evening sent the company an email noting that DoT approvals had not yet been received and had also noted that it was way beyond the time envisaged for securing such approval, Bharti Airtel said.
In light of this update and the fact that Loop's mobile license is to expire at the end of this month, Bharti Airtel has decided to terminate the discussions with regard to the transaction for acquiring subscribers of Loop, the company said.
Bharti Airtel further said that other than the agreements that were mentioned in the press release of 18 February 2014, no further agreements have been entered into between the parties, though there would be some correspondence as is normal in such transactions, Bharti Airtel said.
Bharti Airtel further said that it has fully complied with its disclosure obligations under clause 36 and that it is not aware of any information which could explain the movement in trading of shares as mentioned in the aforesaid email, it added.
GAIL (India) on 5 November 2014, clarified that allegations made by a section of people on cut in APM gas supplies are not true and there has not been any arbitrary or selective reduction in allocations to small industrial customers in South Gujarat. In fact, special emphasis is being given to protect the interest of small customers (those presently having allocation of domestic gas up to 50,000 SCMD). Under these guidelines, present level of supply upto a maximum of 5,000 SCMD is reserved for small customers and kept out from the purview of the pro-rata cut, GAIL (India) said. This allays any concerns of the small customers, including glass units in South Gujarat, the company said.
Infosys announced on Thursday, 6 November 2014, a major recruitment drive in the US to support the growth of its business and enhance its capabilities. The company plans to hire 1,500 professionals for consulting, sales and delivery during the current financial year ending 31 March 2015 (FY 2015). In addition, it will hire close to 600 Bachelors and Masters graduates from US Universities over the next twelve months.
With this program, Infosys will bolster its expertise in client relationship management, consulting and technical delivery. The addition of these employees will help Infosys provide its clients local market insights, industry-leading technology expertise, and timely responsiveness to critical issues.
Infosys will recruit up to 300 management and technology graduates from leading US universities. They will work across multiple technology domains including digital, big data, analytics and cloud. Up to 180 graduates will be recruited into the Infosys consulting practice in the US. They will join existing teams advising clients on business and technology transformation strategies. Infosys will also continue its global recruitment program of hiring MBA graduates from leading business schools, and will recruit 100 Masters graduates for its sales teams under this initiative.
This recruitment drive will leverage the wide range of relationships between Infosys and academic institutions across the US. These relationships have been cultivated through programs such as the global InStep Internship Program and the recently announced collaboration with the Institute for Computational & Mathematical Engineering at Stanford University, Infosys said in a statement.
In a separate announcement on Thursday, 6 November 2014, Infosys announced a strategic engineering partnership with DreamWorks Animation. The two companies intend to work together to further develop DreamWorks' technologies to bring them to wider use. Infosys will deploy its global talent pool available across cloud, big data, Java and open source capabilities to develop next generation solutions based on the DreamWorks technology.
CESC after market hours on Wednesday, 5 November 2014 said that at a meeting held on 5 November 2014, the QIP Committee of the board of directors of the company allotted 76.21 lakh equity shares of Rs 10 each at a price of Rs 644 per share (inclusive of a premium of Rs 634) to qualified institutional buyers (QIBs).
Tata Global Beverages' consolidated net profit declined 65.31% to Rs 62.45 crore on 4.46% growth in total income to Rs 2053.61 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 5 November 2014.
During the quarter, Tata Global Beverages continued to focus on innovation and strengthening its brands across tea, coffee and water.
Mr. Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said, We will continue to focus on innovations based on strong consumer insight across tea, coffee and water. The last quarter has seen new launches and campaigns across geographies inspite of a challenging market environment. We are committed to growth through further strengthening our brands and strategic alliances.
Escorts reported net loss of Rs 7.86 crore in Q2 September 2014 as against net profit of Rs 43.63 crore in Q2 September 2013. Net sales rose 4.96% to Rs 986.61 crore in Q2 September 2014 over Q2 September 2013.
The company recorded an increase of 1.2% in tractor volumes to 15,013 tractors in Q2 September 2014 from 14,842 tractors in Q2 September 2013.
Construction equipment volumes also increased 13% to 747 units in Q2 September 2014 over Q2 September 2013.
The company absorbed the additional one-time exceptional expense of Rs 31.4 crore on account of a VRS that covered around 350 employees. As a consequence, the company recorded a loss of Rs 7.90 crore in Q2 September 2014.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) fell 48.06% to Rs 33.5 crore in Q2 September 2014 over Q2 September 2013.
Escorts Agri Machinery volumes went up by 1.2% to 15,013 tractors in Q2 September 2014 over Q2 September 2013. Revenues went up by 5.8% at Rs 803 crore in Q2 September 2014 over Q2 September 2013.
Escorts Construction Equipment volume up by 13% with 747 units in Q2 September 2014 over Q2 September 2013. Revenue increased by 4.6% to Rs 121.50 crore in Q2 September 2014 over Q2 September 2013. This increase is the result of growing product acceptability in the market. The company will continue to develop & offer innovative products and move up the value chain.
Escorts Auto Product revenue up by 17% to Rs 26.8 crore in Q2 September 2014 as against Rs 22.90 crore in Q1 June 2014.
Escorts Railway Products posted strong growth with sales increasing by 11% to Rs 47.30 crore in Q2 September 2014 as against Rs 42.70 crore in Q1 June 2014. Earnings Before Interest & Tax (EBIT) margin up by 580 bps to 9.6% against 3.8% sequentially. The order book position as on 1 October 2014 was Rs 34 crore.
GlaxoSmithKline Pharmaceuticals' net profit rose 27.46% to Rs 128.67 crore on 17.48% increase in total income to Rs 782.46 crore in Q3 September 2014 over Q3 September 2013.
Meanwhile, the board of GlaxoSmithKline Pharmaceuticals has decided to change the financial year of the company from January - December to April - March. Accordingly the company's current financial year shall be for a period of fifteen months i.e. from 1 January 2014 to 31 March 2015.
Further, the board of GlaxoSmithKline Pharmaceuticals has appointed Andrew Aristidou as the Chief Financial Officer and Executive Director of the company from 1 December 2014. Mehernosh Kapadia, current Chief Financial Officer and Senior Executive Director, will retire from service on 30 November 2014 and will cease to be a director of the company from 1 December 2014.
Financial Technologies (India) (FTIL) said it will fully exit Indian Energy Exchange (IEX) by selling its entire stake to a clutch of investors, including TVS Shriram Growth Fund, for Rs 576.84 crore.
FTIL said it entered into a Share Purchase Agreement (SPA) with TVS Shriram Growth Fund 1, S. Gopalkrishnan, Lakshmi Narayanan, Rajeev Gupta, Dalmia Cement Bharat Power Ventures Limited, Kiran Vyapar Limited, TVS Capital Funds Limited, and Agri Power and Engineering Solutions Private Limited for sale of 25.64% equity stake on a fully diluted basis in IEX for an aggregate consideration of Rs. 576.84 crore, a company statement said.
In the wake of the Rs 5,600-crore NSEL payment scam, Central Electricity Regulatory Commission (CERC) had directed Jigesh Shah-led FTIL to completely exit from IEX, country's leading power exchange with more than 95% market share. NSEL is a group firm of FTIL.
The transaction is subject to fulfillment of certain condition precedents including buyout of the application software and other technology for its own use only by IEX and regulatory approvals, if any, the statement added. Post completion of the transaction, FTIL would have completely exited IEX. FTIL said.
Canara Bank's net profit rose 0.14% to Rs 626.84 crore on 14.26% rise in total income to Rs 11915.21 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced on Thursday, 6 November 2014. The bank's ratio of net non-performing assets to net advances stood at 2.31% as on 30 September 2014, compared with 2.03% as on 30 June 2014 and 2.3% as on 30 September 2013. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 2.92% as on 30 September 2014, compared with 2.67% as on 30 June 2014 and 2.64% as on 30 September 2013.
Indian Bank's net profit rose 2.8% to Rs 314.33 crore on 6.42% rise in total income to Rs 4340.32 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced on Thursday, 6 November 2014. The bank's ratio of net non-performing assets to net advances stood at 2.55% as on 30 September 2014, compared with 2.48% as on 30 June 2014 and 2.56% as on 30 September 2013. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 4.21% as on 30 September 2014, compared with 4.01% as on 30 June 2014 and 3.76% as on 30 September 2013.
Allahabad Bank announced after market hours on Wednesday, 5 November 2014, that the bank has decided to revise the interest rate downward by 0.15% per annum (p.a.) i.e. from existing 9.05% p.a. to 8.9% p.a. on domestic retail term deposits scheme with maturity period of one year to less than five years, with effect from 10 November 2014.
Bata India's net profit rose 3.77% to Rs 39 crore on 13.22% rise in total income to Rs 558.53 crore in Q3 September 2014 over Q3 September 2013. The result was announced after market hours on Wednesday, 5 November 2014.
Mr. Rajeev Gopalakrishnan, Group Managing Director, Bata Emerging Markets, Bata India said: "The quarterly performance reflects our focus on maintaining quality sales and growth. With an aggressive plan on opening of new format stores, offering aspirational designs and addition of a wider range of products, the expectation isto amplify the growth momentum. We will continue to deliver the contemporary range of products to the consumers at high quality and great value. It gives us immense pleasure to welcome new consumers and loyal customers at our stores and offer an enriching experience with great customer service. We aim to deliver better than the best in future as well," he said.
The new range is contemporary, stylish and on trend with aspirational designs targeted to appeal the young generation. The styles will be a combination of trends like cut-work, embellishments, color-blocking, prints, stripes, shimmer with interplay of textures and an amalgamation of colors. The catalogue will cater to a wide range of consumers with an exotic range for men, women and children.
The key styles like stilettos, wedges, gladiators, ballerinas, moccasins, ankle straps, sneakers, loafers for women and brogues, driver's, derby, oxford, slip-ons, fisherman sandals and sneakers for men will be seen across the season. The Kid's collection will be a range of trendy sneakers, sandals, floaters, ballerinas, outdoor as well as school shoes, company said.
The company continues to invest behind opening and renovation of stores, products, people, marketing, systems and processes. Bata India will be opening over 100 new stores this year, the company added.
Ashok Leyland reported net profit of Rs 120.68 crore in Q2 September 2014 compared with net loss of Rs 25.05 crore in Q2 September 2013. The company's total income rose 26.06% to Rs 3243.37 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Thursday, 6 November 2014.
Essel Propack's consolidated net profit surged 34.05% to Rs 38.46 crore on 13.13% growth in total income from operations to Rs 595.15 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 5 November 2014.
Torrent Pharmaceuticals' consolidated net profit surged 75% to Rs 198 crore on 25% growth in revenue to Rs 1217 crore in Q2 September 2014 over Q2 September 2013. EBITDA jumped 83% to Rs 345 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 5 November 2014. Domestic formulation business' revenue surged 49% to Rs 442 crore in Q2 September 2014 over Q2 September 2013. Current quarter includes sales from acquired Elder business. Excluding this sales growth for quarter would have been 17%, Torrent Pharmaceuticals' said in a statement. International revenues rose 17% to Rs 673 crore in Q2 September 2014 over Q2 September 2013. Adjusting for currency movements revenues grew by 21%.
Cummins India's net profit rose 39.8% to Rs 202.40 crore on 23.1% increase in total income to Rs 1216.70 crore in Q2 September 2014 over Q2 September 2013.
Colgate Palmolive (India)'s net profit rose 18.31% to Rs 129.58 crore on 10.58% rise in total income to Rs 1010.44 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 5 November 2014,
Cadila Healthcare's consolidated net profit rose 51.65% to Rs 278.09 crore on 20.67% rise in total income to Rs 2122.61 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced on Thursday, 6 November 2014.
New Delhi Television (NDTV) reported a consolidated net loss of Rs 26.89 crore in Q2 September 2014 compared with consolidated net loss of Rs 15.26 crore in Q2 September 2013. Total income from operations rose 3.94% to Rs 110.38 crore in Q2 September 2014 over Q2 September 2013.
NDTV Profit/Prime achieved a major turnaround by turning EBITDA (earnings before interest, taxes, depreciation and amortization) positive in Q2 September 2014, within six months of its relaunch (this is after making losses of Rs 40 crore last year and losses in earlier this year too). This will help the company to move towards profitability. Profitability will also be achieved by restructuring of businesses or selling of loss making units while continuing a hard focus on the core business. NDTV Convergence continue to show robust revenue growth of 22% in Q2 September 2014 over Q2 September 2013.
NDTV said that the board of directors of the company at its meeting held on 5 November 2014, inter alia, have mandated the management to focus on accelerating growth in core business; fix, restructure or sell non-core businesses; further invest in online assets to accelerate the company's leadership position to benefit from the digital revolution; and explore all options to unlock and maximize Shareholders' value.
Ashiana Housing announced after market hours on Wednesday, 5 November 2014, the launch of its senior living project 'Ashiana Nirmay' in Bhiwandi (Rajasthan), which is part of the project 'Ashiana Town', an intimation about which was already given by the company. The saleable area of the project 'Ashiana Nirmay' will be approximately 7.86 lakh square feet (sq. ft.) out of the total saleable area of 39 lakhs sq.ft. of 'Ashiana Town'.
Magma Fincorp's consolidated net profit rose 31% to Rs 42.23 crore on 14% rise in gross revenues to Rs 580.62 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Thursday, 6 November 2014.
The result reflected robust growth in loan book, margins and net profit in the backdrop of a sluggish industry. With sizeable contributions from Mortgage, Tractor and Used assets verticals, the disbursements grew by 16% to Rs 2550 crore in Q2 September 2014 over Q2 September 2013. The company's loan book increased 13% to Rs18836 crore as on 30 September 2014 compared with same period as at 30 September 2013 and its Capital Adequacy Ratio (CAR) stood at 16.9% as on 30 September 2014.
Meanwhile, Magma Fincorp announced that its board has decided to exit the line of business comprising of the gold loans originated by the company which line of business involves the grant of terms loans to individuals and/or small businesses (whether constituted as a company, a partnership firm, a sole proprietorship or otherwise) against the security of gold (gold loans) and the board further authorized the management committee of the board of directors of the company to do all such acts, deeds and things as may be necessary or expedient to implement the above decision in the manner as the management committee of the board of directors may deem fit.
The board of Pochiraju Industries will meet on 13 November 2014, to review of the progress of bio pharma division agri division and pharma division. The board will also review the phase II expansion of bio pharma unit and consider various funding options viz. raising of debt, preferential allotment of equity shares and preferential allotment of warrants to promoters.
Stampede Capital has received Reserve Bank of India approval to set up overseas Stampede Financial subsidiary in Singapore. This will create an opportunity to the company to become an electronic designated market maker for Global Exchanges. The Singapore Exchange (SGX), Eurex (EX) and Australian Exchanges (ASX) have already agreed in-principle to appoint Stampede Financials as designated electronic market maker.
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