NSE WEEKLY NEWS UPDATE
✍ SpiceJet shares surge 10% as Ajay Singh checks
Stocks of SpiceJet on Friday surged nearly 10 per cent after the company returned to original promoter Ajay Singh for its revival in a multi-layered deal worth up to Rs 1,500 crore. Shares of the cash-strapped firm rallied 9.92 per cent to Rs 20.50 — its highest trading permissible limit for the day on the BSE. Sun TV Network also jumped 12.87 per cent to Rs 423.90. Cash-strapped SpiceJet’s original promoter Ajay Singh returned to the airline with a long-term plan entailing an investment of up to Rs 1,500 crore, as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier. Singh, who is in talks to rope in more investors including foreign entities, would get 53.48 per cent stake, currently worth about Rs 500 crore, in the airline from the Maran family as part of the deal approved by the SpiceJet board yesterday. Kalanithi Maran-led Sun Group would also infuse Rs 80 crore in the loss-making airline following conversion of their warrants, which would give them a 10 per cent minority stake. Marans would remain invested with this stake in the airline, which they acquired over four years ago, as a public shareholder although they would cease to be its promoters.
✍ TCS Q3 PAT at Rs 5,444 crore versus Rs 5,288.3 crore, up 2.9% QoQ
Tata Consultancy ServicesBSE -0.51 % (TCS), the country’s largest IT services exporter on Thursday reported Profit After Tax (PAT) of Rs 5440 crore for the third quarter of the current financial year, versus an ET NOW Poll of Rs 5,462 crore. This is a rise of 2.9% QoQ.Sales for Q3 were reported at Rs 24,500 crore versus an ET NOW Poll of Rs 24,534.1 crore. The Q3 margin stood at 27%. For the quarter ended December 31, TCS posted revenue of $3.93 billion, compared to $3.92 billion in the second quarter. On a constant currency basis, revenue rose 2.5%, in-line with expectations. Profit after tax rose 0.1% sequentially to $873 million in the same period.The company’s operating margin rose 20 basis points to 27%.
✍ Things to watch out for
Growth – Analysts expect the company to post around 1.5% revenue growth quarter-over-quarter in dollar terms, below Infosys’ 2.6% growth. The third-quarter is seasonally weak due to ramp-downs and furloughs around the holiday season.
Margins and Utilization – TCS is expected to post marginally stronger margins on the back of the weaker rupee, but cross-currency headwinds are expected to hurt. With utilization already above 85% few see that as a lever the company could use to push margins higher. Analysts expect the operating margin to come it at about 27% for the third-quarter.
Deal wins and Pricing – As about $100 billion worth of deals come up for renewal this year, the street will be keeping a close watch on the number of large deal wins – the bread and butter for IT companies. TCS has always maintained a razor -sharp focus on big contracts and has had greater success winning them. But analysts also want to hear about pricing, and realizations.
Client Budgets and Discretionary Spending – Analysts will be looking for guidance on client budgets and discretionary spending after Infosys said verticals such as banking and financial services, oil & gas and telecom would likely not see budget expansion and was cautious on discretionary spending as well.
The Law of Large Numbers – With over 300,000 employees, TCS has always said its scale is an advantage. But after the compay dialled back growth expectations for FY15, analysts are looking to see if the company’s industry-beating growth days are behind it or whether this year was just an aberration.
✍ RBI cuts repo rates by 25 basis points
Encouraged by softening inflation, the RBI on Thursday decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent with a view to boost growth.The decision to reduce repo rate comes a fortnight ahead of the scheduled date of monetary policy announcement on February 3.“It has been decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect,” Reserve Bank said in a statement on Thursday.The RBI has been keeping the benchmark interest rate at elevated level at 8 per cent since January 2014.The RBI, however, has decided to keep the cash reserve ratio (CRR), the portion of deposits which the banks are required to have in cash with the central bank, unchanged at 4.0 per cent.Following reduction in the repo rate, the reverse repo rate has been adjusted to 6.75 per cent and the marginal standing facility (MSF) rate and Bank Rate to 8.75 per cent.The RBI said that the Consumer Price Index (CPI) has been easing since July 2014 and was below the expected trajectory and the government has reiterated its commitment to adhering to its fiscal deficit target.
✍ NIIT Q3 standalone net profit up 6.7%
Education company NIIT Ltd on Friday has reported a 6.7 per cent increase in standalone net profit for the third quarter of financial year 2014-15 at Rs. 16.07 crore from Rs. 15.05 crore in the corresponding period last fiscal.The standalone net revenue jumped 2.3 per cent to Rs. 117.15 crore (Rs 114.43 crore), according to the company’s filing to the BSE.The company reported a 50 per cent increase in consolidated profit after tax at Rs. 1.8 crore in the third quarter of financial year 2014-15 compared with Rs. 1.2 crore in the corresponding period of the previous fiscal, NIIT Ltd said in a statement. The consolidated net revenue of the company increased 6.25 per cent at Rs. 248.2 crore (Rs 233.6 crore), the statement added.
✍ Tata wins central bank approval to buy DoCoMo stake in India joint venture
India’s central bank has allowed conglomerate Tata Sons Ltd to buy Japanese telecom firm NTT DoCoMo Inc’s stake in their struggling Indian venture, paving the way for the completion of the long-delayed $1.1 billion deal. In a memo to the finance ministry dated Dec. 22 seen by Reuters, the Reserve Bank of India (RBI) said it was “inclined to accept” the proposal from Tata to buy DoCoMo’s stake of around 26 percent in Tata Teleservices Ltd at half the price DoCoMo originally paid for the investment. The RBI has requested for the finance ministry’s view.
✍ December WPI inflation at 0.11% versus 0% in November; food price inflation rises to 5.2%
Plunging global oil markets helped India post slower-than-expected wholesale price inflation in December, raising hopes for an early cut in interest rates to help the economy out of its longest phase of sub-par growth since the 1980s. The wholesale price index (WPI) rose 0.11 percent year-on-year compared with a 0.6 percent jump forecast by economists in a Reuters poll. Wholesale prices were unchanged in November.
✍ IFC to raise stake in Bandhan Finance
International Finance Corporation (IFC) is picking up more stake in Bandhan Financial Services, the only new bank licensee from east, for Rs 580 crore. The newbie lender is raising Rs 1,600 crore from the market as Tier I capital for the proposed Bandhan Bank. Bandhan chairman Chandrasekhar Ghosh told TOI on Thursday that it has already tied up with IFC for Rs 580 crore and for the rest, it will arrange deals with other organizations in the next 10 days.
✍ PVR set to acquire Chennai’s movie exhibition company SPI Cinemas for Rs 750-1,000 crore
The Ajay Bijli led PVR group seems set to acquire Chennai’s premier movie exhibition company SPI Cinemas, popularly known as Sathyam Cinemas, in what could end up to be the biggest deal in Bijli’s career as well for India’s multiplex sector. Multiple sources aware of the on-going discussions said save last-minute developments, the deal may close for a rather steep valuation of approximately Rs 750-1,000 crore for just 40 odd screens, located predominantly in the Southern metro. To put this in perspective, last month Carnival Cinemas paid a little over Rs 700 crore to buy out Anil Ambani’s Big Cinemas that has 242 screens across the country.
✍ Axis Bank Q3 net up 18% at Rs 1,899 crore
Private sector lender Axis Bank reported a 18.4% rise in its net profit to Rs 1,899.76 crore for the third quarter ended December FY15.The third largest private sector bank’s net profit in the corresponding October-December quarter of FY14 stood at Rs 1,604.11 crore.”Total income has increased from Rs 9,433.55 crore for the quarter ended December 31, 2013 to Rs 10,928.81 crore for the quarter ended December 31, 2014,” it said in a filing to the BSE.The gross NPAs stood at 1.34% in Q3FY15, over 1.25% in the year ago period. Net NPAs also rose marginally to 0.44% from 0.42% during the period under review.
✍ Baja Auto Q3 net down 4.78% at Rs 861 crore
Bajaj Auto Ltd today reported 4.78% decline in its net profit to Rs 861.24 crore for the third quarter ended December 31, 2014.The company had posted a net profit of Rs 904.55 crore crore in the same quarter previous fiscal.Net sales during the period under review stood at Rs 5,520 crore as against Rs 5,294.55 crore in the year-ago quarter, the company said in a statement.In terms of volume, sales during the quarter were marginally down at 9,84,520 units as against 9,93,690 units in the same period last fiscal.
✍ Federal Bank net profit up 15% in Oct-Dec quarter
Private sector lender Federal Bank has reported a 15 per cent rise in net profit to at Rs 264.69 crore in the October-December 2014 quarter, compared with Rs 230.13 crore in the corresponding quarter of 2013-14, aided by other income growth and improved lending to small and medium enterprises (SME) and retail business net interest income, the difference between interest income and interest expenditure, grew 7.62 per cent to Rs 587.16 crore in the quarter under review, compared to Rs 545.57 crore in the year-ago quarter.
For Quick Trial – 08962000225
Or mail us here: info@ways2capital.com or visit
http://www.ways2capital.com/
Contact 0731-6554125
Or
http://www.ways2capital.com/free-trial.php
ListFree.org: Embedded data.