If there is one Legal way to Become Rich early, it is by Investing in Stocks and Real Estate. In this Blog you will not see general news which are available at numerous sites, instead u will get filtered news and opinions which matter. Many a times some small but important news were overlooked because of simultaneous big event, I try to put all those news in my Blog. The Home Page shows posts of only last 10 days. To see all the posts click on the month in the Archive section.
Monday, February 27, 2006
News You Can Use
Punj Lloyd- Bags Rs 86 cr Order From Global Health
Engineering construction company Punj Lloyd Ltd has bagged an order worth Rs 86 crore for a construction project from Global Health Pvt Ltd. The secured project is for the high end, multi-specialty Institute of Integrated Medical Sciences and Holistic Therapies, that Global Health would be setting up in New Delhi.
Punj Lloyd informed the stock exchanges that the project, which is expected to be completed within 14 months and is being designed to international standards, is an addition to the Rs 1837.4 crore orders the company has bagged since September 30, 2005. The company already has an order backlog of over Rs 4836.7 crore and these projects are in the oil and gas, infrastructure sectors including highways and power. It is also working on several projects in the Middle East, the Caspian, the Asia Pacific and South Asia.
Praj Ind - Inks MoU With Aker Kvaerner
Praj Industries Ltd has entered into a Memorandum of Understanding (MoU) with leading engineering and construction services provider, Aker Kvaerner Netherlands BV, for a strategic co-operation on bio-ethanol projects in Europe. Under the MoU, Praj will supply the process licence, process engineering, and critical and proprietary equipment for the process plant, while Aker Kvaerner will provide basic engineering, procurement and construction expertise. "This alliance will further position Praj very favourably in Europe, as Aker Kvaerner is well respected for its engineering, procurement and construction capability worldwide," the company's chairman Pramod Chaudhari said. In a bid to augment its marketing efforts, Praj informed the stock exchanges that it had plans to set up an operating base in EU shortly. Praj is based in Pune and specialises in technology, design, engineering, manufacture and supply of equipment for distillery plants, ethanol plants and related effluent treatment plants.
Madhucon - Bags Rs 629 cr Project From NHAI
Madhucon Projects Ltd today said it has bagged a build-operate-transfer project worth Rs 629 crore by National Highway Authority of India for four laning of NH-45 B in Tamil Nadu. The project entails four laning of 129 km of Madurai-Tuticorin section of NH-45B in Tamil Nadu, the company informed the Bombay Stock Exchange. The highway connects port city of Tuticorin with Madurai by shortest route and the BOT project would help in saving vehicle operation cost and fuel consumption, it said.
SKF India Ltd, the Indian subsidiary of the Swedish global engineering major, reported a decline in net profit at Rs 10.24 crore for the quarter ended December 31, 2005 as compared to Rs 15.70 crore for the same quarter last fiscal.
However, total income rose 52.96 per cent to Rs 259.08 crore for the fourth quarter this fiscal from Rs 169.37 crore during the year-ago period, the company informed the Bombay Stock Exchange. The revenues are not strictly comparable as the Q4CY2005revenues include revenues from the indenting business, which hitherto wasconducted on a commission basis and was included in the other income. Hence there should be a significant jump in the revenues and a significant drop in the otherincome (down 56.5%). The raw material cost during the quarter also includes a sum of Rs10.23 crore representing the cost of traded goods sold in the previous quarters. This should be treated as an extraordinary item and accounted for below the line. Further there is also a one-time expenditure of Rs4.08 crore towards contribution to the superannuation fund due to a change in the accounting practice. Consequently the total extraordinary charge during the quarter is Rs14.3 crore.
The operating profit margins (OPMs) for the quarter declined by 130 basis pointsprimarily on account of the change in the treatment of the indenting business. As indenting is more or less a trading business the margins in the same are comparatively low. Consequently the raw material cost as a percentage of sales has increased from 48.7% to 54.9% during the quarter. However due to the stable other cost, the operating profit during the quarter has jumped by an impressive 39.4% to Rs35.3 crore.
For the year ended December 31, 2005 the company posted a net profit of Rs 64.07 crore as compared to Rs 56.61 crore during last year. The total income increased to Rs 816.01 crore during the current year from Rs 604.32 crore last year. The company's board has also recommended a 35 per cent dividend.
Gillette India continues its strong growth in the FY 2005, recording net sales of Rs4.53bn, a growth of 11.5% growth over last year. The company ended the year with a profit before tax at 24% of net sales. The year 2005 also marked Gillette India reaching it highest-ever annual net profit figure at Rs687mn, a growth of 12.3% over FY 2004. The company proposed a dividend for the FY 2005 at 100% (Rs10 per share).
The company’s Grooming Business grew by 12%. During the first quarter of 2005, the company extended its Mach 3 Turbo proposition to the younger audience with the launch of Mach 3 Turbo Champion. This launch was supported by a high impact media campaign and the product exceeded its distribution and sales targets. Mach 3 sales recorded an impressive 22% growth in FY 05. Vector Plus delivered record performance with an impressive volume growth of 72%.
In the Personal Care category Gillette India continued to grow its value share, with a 22% growth in net sales over FY 04. The company further consolidated its position in the shave gels segment with the successful launch of the 25 gm pack of Gillette Tube Shave Gel.
2005 was a record year for the company’s Oral Care Business, which clocked a significant 35% growth in net sales. In the fourth quarter of 2005, the company launched the new Oral-B Cross Action Power thereby consolidating its position in the power-brushing segment. The company further consolidated its market position in the alkaline batteries segment.
According to Managing Director Zubair Ahmed, “We have been able to drive value leadership in our core categories with a strong brand franchise, as a result of sustained and aggressive investments in advertising and marketing innovations during the year. Strategic brand investments we made in 2005 helped in our endeavour of upgrading the Indian consumer to superior technology products.”
In the fourth quarter of 2005, the company recorded net sales of Rs1.16bn a growth of 18% over Rs983bn last year. Net profit for the fourth quarter stood at Rs150mn a growth of 118% over Rs68mn last year. In line with its commitment to franchise building for a long-term impact, the company continued its progressive investments in advertising and sales promotions this quarter.
Adlabs Films, managed by Reliance-Anil Dhirubhai Ambani Group, plans to foray into the home video segment through the organic route. Initially, the company was in talks with leading players in the home video segment for a possible acquisition, but owing to differences in valuation figures the company has decided to venture out on its own.
Manmohan Shetty, chairman and managing director, Adlabs, said, “We were initially looking at acquiring a company to give us a jump-start in the business. But, we have now taken the decision to start up on our own as an acquisition is not working out.”
The company is currently in the process of drawing up plans for the segment debut. The company had earlier sounded out all the established players in the industry for a possible buyout, including Shemaroo, Excel Home Videos and the Ultra group. Apparently, Adlabs and the players, with which it was negotiating, were unable to reach a consensus on the companies’ valuation front and, hence, the proposal of an acquisition fell through in each case. Adlabs feels that venturing out on its own would amount to more value for money.
Recently, the company raised $100 million through issuance of foreign convertible currency bonds for funding its various expansion projects including the home video segment foray. The other players, who too are eyeing the home entertainment sector, are Sahara One and UTV. These two companies are already into production and distribution of movies. Of total market size of close to Rs 1,000 crore, the official home video entertainment market size is currently estimated at Rs 180-190 crore.
ITC Ltd opened its Fortune Murali property at Vijaywada with with an eye of the conference market. A part of the Fortune Park Hotels chain, it opened on February 8 as the chain's sixteenth operating property. Fortune Park Hotels is a wholly owned subsidiary of ITC Limited and offers accommodation for the mid-price segment of business travelers.
Built almost 17 years ago by a Dubai based company, Fortune Murali Park is owned by Kandhari Hotels, whose managing director, M Murali Krishna, undertook to totally renovate the earlier hotel. The new look includes the re-cladding of the exterior walls and full refurbishment of the interiors. Built on a 1-acre plot, Fortune Murali Park is located on MG Road with 70 rooms including 44 standard and 18 club rooms, six junior suites, an executive suite and a presidential suite. It has two restaurants, a bar and lounge. The hotel aims to be a major conference venue and features five banquet halls and seminar rooms to accommodate upto 1000 guests as also a board room for presentations. Mandeep S Lamba, president of Fortune Park, said the Fortune Murali Park at Vijaywada gave the chain a substantial presence in the south and in Andhra Pradesh. Other properties in the south included Fortune Katriya at Hyderabad, Fortune Kences at Tirupati, the South Park at Tiruvananthapuram and Fortune Calicut at Kozikode.
The chain aimed to have 50 properties by 2010 including another hotel in Cochin.
Tile manufacturer Kajaria Ceramics Ltd has chalked out an expansion plan entailing an investment of Rs 123 crore. The plan is to raise its output from 18 million square metre per annum (msqa) to 40 million square metre per annum (msqa) by March 2009. The project, which will help increase the company’s turnover to Rs 1,000 crore by 2010, is to be completed in a phased manner. To fund the expansion, the company has lined up Rs 80 crore debt and Rs 43 crore will be raised through internal accruals. The company has already got approval to issue GDR or FCCBs of up to $30 million.
At present, the company has one plant each at at Sikandarabad (Uttar Pradesh) and Bhiwandi (Rajasthan). The company plans to increase the capacity of the Bhiwandi plant by 8.4 msqa. The present capacity of the unit is 8.3 msqa. The capacity at the Sikandarabad plant is 9.7 msqa. The expansion at the Bhiwandi plant is expected to be completed by September 2006. The expansion would help the company increase its presence in the low-end market.
Kajaria has opened its office in Sharjah which will function as a marketing arm for the whole of the Gulf region.
Jindal Stainless - Now Decorating Living Rooms Like Never Before
If you think stainless steel is meant for only kitchenware, think again, especially, when you are in India. Today steel has widened its ambit and is finding new uses in the daily lifestyle through home decor products. Traditionally used for heavy construction such as building bridges, dams and skyscrapers, steel is now affecting mans life in a more personal way. An alloy of iron containing chromium and other elements making it resistant to corrosion, stainless steel has been for long, looked upon as something related to utensils in the kitchen only. But today the decades old established definition is changing rapidly with the high-quality variety of steel foraying into a variety of multi-utility and decorative products.
What is important for us is that a customer goes and sees what is possible with stainless steel. We are confident more and more people would be using the kind of products we made out here. And you wouldnt think of using anything else like porcelain and bone china, says Sugato Bose, business head of Artdinox Lifestyle Product Division of Jindal Stainless Limited. We tell our customers to be proud of stainless steel. You dont need to remove this when guests are around. The design aspect of it, the quality aspect of it is what we have been pushing, Bose adds.
Exquisite home decor items, office and bar accessories and designer furniture made of stainless steel are giving bone china and porcelain products a run for their money. Be it, finger rings, anklets, bracelets and necklaces, steel jewellery is the latest in fashion these days and can be conspicuously seen adorning women. Bose tells that several steel companies are putting in efforts to conceptualise and design an array of new products. Be it the stunning and classy flower vases, lounge chairs, photo-frames, candle stands, magazine racks steel is decorating the living rooms of the houses like never before.
Many customers feel that the designs are simply breathtaking and are very adept at gelling with the modern lifestyle. I remember a time there was glittering and shining stainless steel and that is something I cant think of in our house. One thing good about that was it was unbreakable. We see European and Italian kitchens today and these products matches beautifully with it.
In what is seen as Jindal Stainless’ “first step in looking out for global opportunities”, Ratan Jindal, vice-chairman and managing director, is set to head the company’s newly formed subsidiaries in Dubai and London. The company has already formed a wholly owned subsidiary in London which will be called Jindal Stainless UK. The Dubai-based subsidiary, to be set up within three weeks, will be called Jindal Stainless FZE. Ratan Jindal will be the CEO of both subsidiaries.
“He will continue to head the Indian operations. But as the company draws its overseas plans, Ratan Jindal has agreed to look after the affairs of both the UK and Dubai subsidiaries. Already he is spending considerable amount of time travelling between the locations,” said Arvind Parekh, director, finance. But he added that Jindal won’t be “shifting to these new bases”. The subsidiaries are part of the company’s long-term plans. “Through the subsidiaries we want to explore global opportunities for expansion. We are eyeing the markets but we need to have our own infrastructure in place before we start anything. We are also looking into other synergies including marketing and tie-ups with foreign firms,” said Parekh. He agreed that the company is looking at acquisitions for growth but said “it is too early to comment”.
The west Asian market, which is seeing a construction boom, is emerging as an important market for Jindal’s steel products. Europe is also an important market for finished steel products, besides being a raw material hub. Jindal Stainless sources raw material from European countries including Russia.
Delhi-based low-cost carrier SpiceJet is likely to achieve breakeven by the end of its first year of operations in May. The airline has already posted a positive operating profit in its second quarter of operations, according to senior company executives.
SpiceJet, which currently operates over 36 daily flights connecting 11 destinations in the country, commenced operations in May 2005. According to the Bombay Stock Exchange data, the airline posted a loss of Rs 23.71 crore during the period March 1 to May 31, 2005. Chairman Siddhanta Sharma said the airline is expected to record a revenue of Rs 275-300 crore in the current financial year.
Director Ajay Singh said the airline will be inducting seventh aircraft to its fleet in May. “SpiceJet inducted its first self-owned Boeing 737-800 recently. The aircraft is flying on the Delhi-Goa-Delhi route via Mumbai,” he said. He pointed out that the airline has now increased its capacity to over 7,000 seats per day with the induction of sixth aircraft. “We are expecting three more new aircraft and 4 leased ones to join our fleet this year. It is expecting deliveries of 10 Boeing 737-800s each in 2007 and 2008,” he said.
According to industry analysts, the carrier will have to shell out $1.2 billion for fleet acquisitions as the listed price of an Boeing aircraft is $60 million. “With better negotiation, SpiceJet could manage to bring down prices to $45-50 million per craft. The company has plans to acquire Boeing 737-900 ER aircraft for short-haul international destinations in future,” industry sources said.
Singh said currently the airline has a market share of 6.3 per cent, which it wants to raise to 20 per cent by 2008. “In the first three quarters of its operations, SpiceJet has achieved a load factor of 88 per cent. We will be adding two more destinations soon to strengthen our network further,” Singh said. About funds for fleet acquisition, Singh said the airline is exploring the option of issuing foreign currency convertible bonds (FCCBs) on a future date.
Earlier, SpiceJet has allotted FCCBs aggregating $80 million for meeting capital expenditure. The FCCBs with a maturity of over five years will be listed on the Luxembourg Stock Exchange. These are convertible into equity shares at a conversion price of Rs 90 per share.
Ghaziabad-based Alps Industries, leading manufacturer and exporter of home decor furnishing and textiles, is planning to strengthen its presence by foraying into retailing. For retailing, the company is targeting mainly three segments -- branded home furnishing, home decor and fashion accessories -- at an investment of Rs 50 crore. It plans to open retail outlets across the country in phased manner. At least two outlets would be operational in the next two months, while the remaining mega city stores would be opened in two years.
Further, it has lined up an investment outlay of Rs 250 crore for expansion in Punjab and is looking for a suitable location. The company will fund this expansion through a GDR issue of about Rs 125 crore and a combination of term loans and internal accruals.
The company enjoys 35 per cent market share in the soft windows covering segment under the Vista brand. Its fashion accessories brand, Le-pashmina, is also a well-established name distributed across 1,500 outlets across India. Alps' ready-to-use home furnishing items such as bed sheets, bed covers, cushion covers, mats and table linen have gained wide acceptance in Europe and the US, particularly for their eco-friendly appeal developed by proprietary technology of vegetable dyes for textiles. So, it is one of the leading suppliers to MNC retail chains of Europe and North America.
Leading chains like JC Penny, Springs, Walmart and Homestead sell its products. So, the company would definitely benefit more with higher off-take from these international retail houses. Moreover, Alps has recently entered into an agreement with a south-east Asian company for sale of technology pertaining to application of natural dyes to textiles. Under the pact, Alps will provide transfer of technology and training to the personnel of the buyer for this patented application methodology of natural dyes to various textile fibres.
Lastly, PruICICI has acquired 2.76 % stake in Alps on 25th Jan 05 and now it holds 5.98 %. Long Term Investors consider buying the stock in small lots.
Ramco Systems Ltd has announced that Virgin America, a US-based start-up airline, has chosen maintenance & engineering (M&E) software solution from the company’s aviation suite.
Virgin America has chosen the software to automate its M&E business processes and to integrate with IT systems at partner organisations, the company said in a communique to stock exchanges.
Ramco’s aviation software is a web-centric, browser-based solution built from the ground-up using the company's patented VirtualWorks technology. The software has been developed exclusively for fleet operators and maintenance, repair & overhaul (MRO) providers. The solutions are available on a choice of technology platforms and its functionalities cover materials, finance, sales and human resources as well as corporate performance management and collaboration capabilities.
“We are pleased to have the opportunity to provide Virgin America with Ramco’s global solutions to address their unique business process, collaboration requirements and their need to manage constant change,” said Jim Fitzgerald, senior vice-president, global aviation solutions, Ramco.
Ramco’s aviation customers include Virgin America, Indian Airlines, SpiceJet, Air New Zealand Safe Air Ltd, RUAG Aerospace, Petroleum Helicopters (PHI), Conair Aviation Group, Columbia Helicopters (CHI), Indian Air Force, Eurocopter and AISalam Aircraft Co.
Last but not the least, Rakesh Jhunjhunwala holds shares of Ramco Systems, reason enough to have faith in the company.
Reliance Infra And Gateway Distriparks - On The Right Track
Reliance Infrastructure, Gateway, Adani, CCI, CWC and P&O among contenders.
As many as 10 companies, including Reliance Industries, Adani Logistics, Gateway Distriparks Ltd, Hind Terminals, MICT (P&O Ports), Indian Infrastructure and Leasing Mumbai, Sical Chennai, Dinesh Emirates ETA, Central Warehousing Corporation (CWC) and Container Corporation of India (CCI) have bid for running freight train services all over the country.
The bidders have submitted Rs 50 crore each as registration fee for running the freight trains, including on the Delhi-Mumbai route. Four other bids, for lines excluding the Delhi-Mumbai route, were submitted by Delhi-Assam Roadway Corporation, JM Bakshi, Bothra Shipping and PRCL with deposits of Rs 10 crore each.
Permissions for container routes are expected to be given before the end of this financial year. An official said the railways had written to the industries ministry seeking a clarification on the rules for foreign direct investment in companies that would participate in the freight sector. “We have asked whether FDI is permitted or not and if so, what should be the cap on it,” he said. As of now, Indian subsidiaries of foreign entities have been permitted to bid for freight routes. However, foreign companies have not been allowed to participate in the container sector.
The lack of availability of rolling stock is going to be a problem in the initial days for these companies. The companies will have to buy rolling stock from wagon manufacturers. The railways will not have any role to play in the purchase of wagons. Some of the companies that have bid for container lines are into shipping and will now be able to move their goods to ports at a faster pace. However, a company like Reliance Industries is expected to use containers exclusively to transport its own raw materials and finished goods.
Under the new container policy, private players are expected to invest in rolling stock and inland container depots. The railways will only invest in laying lines and improving and expanding the existing ones.
With the Sensex at its current lofty levels of over 10,000 points, the main risk for most stock portfolios is market risk, also known as systematic risk. A question some investors may have at this point is whether it is possible to buy insurance for their exposure to the stockmarkets. After all, an adverse news development like an unfavourable budget announcement would certainly lead to a substantial price correction.
The good news is that there are several kinds of insurance policies available in the stockmarket. In fact, these policies have been running for some time now - since June 2000, to be precise, when equity derivatives were introduced to the Indian stockmarkets.
Insurance can be bought by investors for their stock portfolios, either by selling futures or buying put options. By selling futures, investors can gain when the market falls, which can offset the loss in their portfolio. The risk of the stock prices falling, therefore, is eliminated.
Medical Tourism is projected to be a $2.3 bn business for India by 2012. Medical Tourism is the sector of future but alas there are not many stocks, catering to this industry, listed on our bourses. Foreigners are flocking for getting knees replaced, hips resurfaced, cosmetic surgery, obesity treatment and what not at bargain prices. Read an exhaustive article published by Outlook and try to guess the turnover of Medical Tourism in future. At an Indian Medical Tourism Expo in UK last year, 25 percent of visitors were seeking medical treatment in India. Seeing all the potential, even the Foreign Healthcare groups are entering India. Parkway Holdings of Sigapore has tied up with Apollo in Kolkata and with Asian Heart Institute & Research Centre in Mumbai. International Chain Columbia Asia has a 75 bed multi speciality Hospital in Bangalore. To grab some Global Opportunities, Apollo is entering into some joint ventures to set up centres Dhaka and Colombo, it has also formed joint ventures to set up and run Hospitals and Clinics in Yemen and Saudi Arabia.
Keep a watch on Apollo Hospitals, Ranbaxy (Fortis), Wockhardt and Carol Info Services.
R S Software - Pioneering & Targeting High Growth Area Of Electronic Payments
RS Software (India) Ltd, a Kolkata-based software pioneer, has decided to focus completely on the electronic payments industry for future growth and revenues, according to Raj Jain, managing director. Software and service offerings to the global payment systems industry will be a major driver of revenue growth for R.S. Software (India) Ltd. The company has unveiled its plans for the industry. The total revenues generated by companies in the US payment systems industry in 2004 were $250 billion, said Raj Jain, Managing Director of R.S. Software (India) Ltd.
Addressing newspersons, Jain said the global payment systems industry comprised companies such as Visa, Master Card, Nova, Pay Pal and Western Union that facilitate the electronic transfer of money. R.S. Software has built up core competencies for the integration of technologies in global payment systems. "Our vision is to be the leader in providing quality software and services to leading payment systems companies globally," Jain said.
Towards this end, the company plans to augment the headcount at its Kolkata operations from 450 to 675-700 within the next one year. It also plans to add 60,000 sq. ft. of space at the Salt Lake Electronics Complex here, where it is already operating. Currently, 80 per cent of R.S. Software's revenues come from services and offerings to the payment systems industry.
“Moving forward, 100% of our growth is expected to come from the payments industry,” he said. To this end, RS Software aims to increase headcount and physical infrastructure at its Kolkata base.
On Friday, the company reported a profit after tax of Rs 1.38 crore on total income of Rs 22.44 crore for the quarter to December 31, 2005, against a net profit of Rs 6 lakh only on revenues of Rs 19.95 crore in the same quarter of the preceding year. Export income accounted for Rs 21.46 crore of the total income of Rs 22.44 crore during the quarter. For the year to March 31, 2005, RS Software had reported a loss of Rs 1.49 crore on revenues of Rs 78.29 crore.
Jain said that the global payments industry is worth $400 billion, of which the USA alone accounted for $250 billion in 2004. The figures refer to the business of all the parts that go into making the whole, while the total electronics payments globally add up to over $2 trillion. Jonathan Kalman, a US venture capitalist who has joined the board of RS and also invested some of his personal funds, said the payments industry is growing at a scorching pace. “My wife and I used to write around 600 cheques a year nowadays, we write less than 10 a year,” he said.
“We believe that this industry is going to become so huge that you are going to find almost everything becoming electronic payments,” said Kalman, who is also the founder, chairman and chief executive officer of Katalyst, and investment and advisory firm.
RS Software will also expand its physical infrastructure, taking up 60,000sqft of ready space in Salt Lake’s Sector V.
The company plans another rights issue, in the third week of March, to raise around Rs 16 crore. The decade from 2005 to 2015 will be the most exciting party, and RS Software is “committed to capitalise on the next phase,” Jain said.
R S Software, a leading software solutions provider in the Payment Systems domain. Ever since its inception in 1991, R S Software has been providing quality software services on time, using the onsite-offshore model to offer its customers enhanced returns on their IT investments. Relying on scalability, a knowledge base that has been nurtured for over 12 years and stringent execution standards, RS primarily focuses on the Payment Solutions space covering the entire range from POS to transaction processing, to make one-stop payment processing a reality for our clients.
R S also have substantive expertise in the areas of Embedded & Hi-tech Systems while our technology bandwidth spans across mainframes, mid-range, client-server, systems software, web technologies and ERP. Our clients include high profile global players in the Payment Cards industry, Insurance, Manufacturing and in the Retail/Logistics sector.
To meet the business needs of the Payment Processing environment, RS offers a gamut of services that include Transaction Processing, Dispute Resolution, Risk Mitigation and Data Analytics. In the hi-tech space, RS is creating Biometric offerings for securing financial transactions through fingerprint identification, and is also working towards developing frameworks that include multi-modal biometrics for solutions in areas requiring high degree of security.
Operating out of the Salt Lake Electronics Complex in the eastern Indian city of Kolkata and having offices in UK and US, RS is amongst the first companies to receive the ISO 9001: 2000 certification and CMM Level 4 and P-CMM level 3 assessments in the year 2000. It is also one of the first companies to bring the IBM Mainframe architecture to India in1991 and the fiftieth company to receive the BS7799 Certification in 2005.
This scrip is showing some strength with huge volumes. The company's website www.amexit.com shows some exciting businesses under its fold but surprisingly there are no news flow. Balance Sheet looks ok. I am putting my money on it for short term target of Rs. 52.00 with a strict stop loss of Rs. 26.00.
Carol Info - Have Patience Will Earn
Carol Info Services (formerly Wockhardt Life Sciences) is a company which many good analysts are recommending for Long Term. But again, I am finding it very difficult to gather information about this company. I learnt that the company has a lot of cash in its books and surely it will do something with the cash. I feel that Wockhardt will expand its Hospitals through this company. If anybody has its Annual Report or definite information, please let me know about it.
NRB Bearings - Rolling Profits
NRB is into manufacturing Needle Roller Bearings and enjoys virtual monopoly in Indian Markets. NRB, which in November bought back for $13 million the entire 26 percent stake held by Timken France SAS, is forecast to post a 30 percent growth in 2005/06 profit to 355 million rupees on net sales of 2.55 billion, an 18.6 percent growth, according to Reuters Estimates. Similarly profit for 2006/07 is expected to grow 28.5 percent to 456 million on net sales of 3.02 billion rupees, up 18.4 percent.
NRB, whose largest customer is top commercial vehicle maker Tata Motors Ltd., is already growing at twice the rate of a 25 billion rupee bearing industry expanding at 10 percent a year. Last but not the least, when promotors start buying shares from the secondary market then you know how strong the belief is.
Sangam (India) Ltd. - A Good Bet In Post Quota Regime
Sangam (India) Ltd, the largest polyester-viscose dyed yarn manufacturer in India, plans to focus on exports and defence garment market for growth in the post quota scenario.
"We have been receiving good inquires from a number of large international firms on account of low-cost advantage. The company has recorded an impressive growth of 156 per cent in its export sales in the third quarter ended December 2005," Managing Director of the company, Mr S N Modani, said here. "It has registered a 65 per cent rise in exports at Rs 48 crore in first nine months of the current fiscal year compared to Rs 29 crore in the corresponding period last year," Mr Modani said.
The company is targeting 70 pc growth in export on year-on-year basis. Apart from international export markets, the company is also looking for opportunities in to the supply of polyester viscose fabrics to Indian Army and other para-military forces. The company has supplied four lakh metre fabrics in first nine months, thereby, registering a growth of 350 per cent in this segment. The total demand for market size is estimated at five crore metres per annum.
"The PV sector has been recently opened for the defence after lot of trials as the PC garments lose colour and texture after repeated wash. It is also uncomfortable wear in tropical climate," Mr Modani said. In contrast, the PV fabrics are more durable, retains original texture, absorbs moisture and enables mass production under one shade, he said.
Sangam is planning a Rs 540 crore investment drive to increase spindle and weaving capacities and setting up a 21 MW captive power plant. The added capacities would be operational by March 2007.
"We will invest Rs 300 crore to add 97,000 spindles, which will increase our total capacity to 1.6 lakh spindles," L L Soni, associate vice president of Sangam, said. The company is also adding 140 weaving machines costing about Rs 80 crore, and Rs 70 crore will be invested in setting up a processing house with a capacity of 80,000 tonne per day. The company is now outsourcing its processing requirements to a sister concern SPBL.
The investment also marks Sangam's entry into cotton yarn to become "a complete yarn solutions company." About 14,000 cotton spindles will be operational by the end of this month and another 17,000 by the end of March. "Almost 65,000 PV spindles will start operations by October," Soni said. The company already has a 10 MW captive plant, but is investing Rs 90 crore to set up an additional 21 MW plant to meet increasing energy needs.
Meanwhile, Sangam has posted a 62.65% rise in net profit at Rs67.5mn for the third quarter ended December 31, 2005 as compared to Rs41.5mn in the corresponding quarter previous year. Net sales rose 6.23% to Rs826.5mn compared to Rs778mn during the same quarter previous year. During the quarter, the company witnessed a significant improvement in operating profit margins on account of reduction in raw material cost and higher realizations. Operating profit margins increased by 13.49% to 16.28%. The company’s exports sales jumped by 156% to Rs 18.63crore from Rs72.7mn.
The company has posted 63.72% rise in net profit at Rs167mn for the nine months period ended December 31, 2005 compared to Rs102mn in the corresponding period previous year. Net sales increased by 11.05% to Rs2.52bn compared to Rs2.27bn during the same period previous year.
Commenting on company’s financial performance, R P Soni, Chairman, said: “We are witnessing an accelerated growth in the polyester-viscose yarn segment. Volume growth following improved demand and lower raw material costs has resulted in margin improvement. Moreover, we are de-risking our business model by increasing our product range and adding fresh capacities which will enable us to establish our presence across the entire value chain.”
The company’s on-going expansion plan has progressed as per schedule with 13,200 cotton spindles and 90 weaving machines have become operational in January 2006. Further, the company is expected to install additional 18000 spindles by March 2006. The revenue from these operations will be reflected from the next quarter onwards. The project will be financed through a mix of debt and equity. Speaking about raising funds, Soni said: "About Rs 400 crore will be raised from the government's TUFS scheme and Rs 136.4 crore would be through internal accurals." Sangam India will get a five per cent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of Government of India.
Gateway Distriparks Ltd (GDL) has filed an application with the Ministry of Railways to operate container trains under all categories including export-import and domestic containerised cargo on all-India basis. The company has paid Rs 50 crore as registration fees and submitted the application requesting permission to move container trains as per the recently announced policy by Indian Railways.
Till now Container Corporation of India (CONCOR) was the only logistics operator moving the container trains in the country. GDL would initially move containers between its existing rail linked inland container depot (ICD) at Garhi Harsaru, Gurgaon and the ports at Mumbai, Pipavav and Mundra.
Earlier, GDL had signed an agreement with CONCOR to work jointly towards business development for mutual benefit. It also included facilitating export-import trade by providing ICD facility and rail connectivity to various gateway ports from the company’s ICD at Garhi Harsaru. Meanwhile, GDL is planning to add more rail linked ICDs at various strategic locations and would have a national network of container freight stations (CFSs) and ICDs, catering to movement of export-import trade and also domestic containerised cargo across the country.
“This is a significant milestone for us. We have been preparing for this moment for quite some time. We believe that our existing rail linked ICD at Garhi Harsaru, Gurgaon will give us a headstart in the rail container transportation business” said Gopinath Pillai, chairman, Gateway Distriparks. Pillai added that the company is also evaluating various options to set-up rail linked ICDs at strategic locations across the country. “We are confident that this will play a key role in consolidating our position as an integrated logistics provider in the coming years”, he said. Pillai pointed out that the company had raised $85 million through its maiden global depository receipts (GDR ) offering in December 2005, issuing 16,660,000 GDRs representing 18.07 per cent of the post issue equity. The GDR proceeds would be utilised to fund the rail initiative and also in strategic acquisitions and expansions.
Sterling Holiday Resorts - Multibagger In The Making
Sterling Holiday Resorts has all it takes to become a multibagger, albeit with high risk involved, if the plans envisaged by the management fructify.
Sterling Holiday Resorts (India) Ltd, which pioneered the timeshare concept in the country, has embarked upon a turnaround strategy to settle its debts, refurbish its resorts and complete all the pending projects. To strengthen its finances, the company is planning to raise to the tune of $15 million through foreign currency convertible bonds and has set an ambitious plan to build 20 business hotels with a total capacity of 2,000 rooms and 18 heritage hotels at places of religious, cultural and historical interest across India in the next five years.
Addressing a press conference, R Subramanian, chairman and managing director, said a number of favourable conditions led to the revival of its business. Subramanian took over control of the company in October 2004 by buying the shares of the other two promoters. He said that in 1996 the entire investment market including the stock market, fixed deposit market and mutual fund market, collapsed impacting the sale of timeshares. The sale of timeshares plummeted during this period causing huge losses to the company.
After Subramanian took over in 2004, a top management team was set up for capital restructuring, and clearing up liabilities, refurbishing resorts. The company had Rs 211 crore of liabilities at one stage. However, through negotiation with the creditors, the final settlement amount was brought down to Rs 98 crore. The company has already paid about Rs 30 crore. It has funds worth of about Rs 25 crore, which will be paid to settle the debt. The company intends to mobilse about Rs 50 crore to pay the remaining debt by selling its 250 units at various places. However, it will be signing a 25-year lease agreement with the buyers. The company has entered into an agreement with three real estate marketing companies in Mumbai, Kolkata and New Delhi to sell its 250 units in the next three months. Its accumulated losses stand at Rs 135 crore, including depreciation, as per the balance sheet. It plans to wipe out the losses in the next couple of years. Currently, its paid up capital is Rs 24.9 crore. Subramanian and and his family hold 37 per cent in the company.
The company will take up refurbishment of resorts at a total budget of Rs 33 Crore. It will also be spending about Rs 15 crore for the development of halted resorts construction projects and new resorts development. It has set a target of adding a new resort a month for the rest of the year. "The last-one-and-a-half years were good. We have learnt the lessons and we believe that good times are beginning. Only that we will be more cautious and watchful,” he said. The company will soon kick off its marketing campaign. It has chalked out an initial budget of Rs 10 crore and has set an ambitious target to sell Rs 100 crore value of timeshares during the next financial year. At present, it earns about Rs 2 crore a month, he added. For its business hotels project, the company is looking at bringing in a strategic investor.
I recently came across a news article in The Economic Times, New Delhi Edition dated Feb 6, 2006 which I quote " Quota based allotment for retail investors in public offers of equities may be on the way out, in the wake of the multiple demat account scam. The proposal is being considered by the government to root out the scope of enterprising individuals cornering large percentage of these offers. The re-look at the primary market has been prompted by the discovery of the large scale abuse of the retail quota route using multiple demat account. Since the quota has not benefited the small investors the justification for carrying on with it is limited. 'The retail quota is a relic of a control raj,' said an official connected with the process." Now, I have more then one justification to carry on with the quota system for retail investors and I feel that abolishing the quota system will seriously hurt the retail investors. For example take a look at the oversubscription figures of recently concluded IPOs.
IPO Subscription Details
COMPANY NAME
Retail
Qualified Institutional Bidders
Non-Institutional Bidders
Employees
Overall
Entertainment Network India (Ltd)
15.7439 times.
54.2093 times.
61.1816 times.
0.6614 times.
41.11 times.
Gujarat State Petronet Ltd
21.9017 times.
56.9012 times.
84.2550 times.
No Quota.
48.75 times.
Jagran Prakashan Ltd
6.9625 times.
16.2633 times.
23.7415 times.
No Quota.
14.22 times.
Inox Leisure Ltd
18.0090 times.
59.2599 times.
95.0115 times.
1.1800 times.
49.59 times.
It clearly shows that retail portion is not heavily subscribed in all the above mentioned IPOs as compared to other quotas. To be specific, Retail portion in Entertainment Network has been oversubscribed by 16 times whereas overall oversubscription is 41 times. This means that in current scenario retail investor has a probability of 1 in 16 for getting allotment whereas in the absence of quota retail investor has a probability of 1 in 41 for getting allotment. Same theory applies for all the above mentioned IPOs. Hence, retail quota system is helping retail investors in a big way and by abolishing it government will do more harm than benefit. The irony is, abolishing quota will help so called enterprising individuals cornering large percentage of these offers.
Retail investors in general will have to suffer for the wrong doing of few crooks and culpable negligency of Sebi and Depository Participants.
On the contrary, I feel that retaining retail quota and making income tax PAN mandatory for all applications will help preventing crooks and black money, entering stock markets through primary route. Simply because PAN is unique for all individuals and multiple applications can be sorted out by a single computer query.
Further, I also think that minimum lot in IPOs should be fixed at 50 shares because in some high priced IPOs if one gets 10 shares, he is not earning much, instead if someone gets minimum 50 shares atleast he will take something home.
Friends, let me know your views by posting comments or by sending an email.
IS THERE A SIMILAR CLINIC FOR SENSEX 10,000 ANXIETIES.
Friends I am Damn Busy and will not be able to post frequently for atleast 10 Days but it doesn't mean that I will not post anything. Keep coming back to check .....
Meanwhile, enjoy a famous poem Stopping By Woods On A Snowy Evening by Robert Frost.
Whose woods these are I think I know. His house is in the village, though; He will not see me stopping here To watch his woods fill up with snow.
My little horse must think it's queer To stop without a farmhouse near Between the woods and frozen lake The darkest evening of the year.
He gives his harness bells a shake To ask if there's some mistake. The only other sound's the sweep Of easy wind and downy flake.
The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep.
Recommended by Sharekhan with a price target of Rs. 406. Reinforced by these reports of Forbes and Bloomberg. Don't forget to read what the reports say about India and... alas.. China.
Pantaloon - A Comestic Change
Having established itself as a major player in the retail space, Pantaloon Retail is now foraying into the services area with an entire range of diagnostic healthcare centres and beauty salons. The first of the salons, Star and Sitara, will open in Bangalore in March and is aimed at the same profile of customers who visit a Big Bazaar outlet.
“Any customer who is comfortable in a Big Bazaar will feel at home here as well,” says Kishore Biyani, managing director, Pantaloon Retail. “Health and beauty forms about 10 per cent of a consumers expenses, and we intend to capture part of that outgo,” he added.... Read Full Story
Logix Microsystem - A Logical Step
GE Shipping’s Executive Vice-President Ravi K Sheth raised his stake in Logix Microsystems, a Bangalore-based specialised software development firm, to 14.05 per cent.
Sheth, who was holding around 13.90 per cent stake in the company, acquired an additional 0.15 per cent stake on Wednesday. He was holding 9,82,899 shares on January 31, 2005. With the latest acquisition, Sheth got 10,546 shares more taking his tally to 9,93,445 shares..... Read Full Story
Savita Chemicals - Savita Chemicals seems to be a wonderful stock. I just came across its third quarter results and I think Savita is a perfect Stalwart as decribed by Peter Lynch.
Savita's estimated Book Value for the YE 2006 is Rs. 205 (Rs. 172 for YE 2005) and estimated EPS is Rs. 38 (Rs. 33.71 for YE 2005), the stock is quoting at Rs. 350.
Savita posted a Net Profit of Rs. 9.39 crores for the QE Dec06 up 17 % from Rs 8.0 crores (YOY). Income from Operations stood at Rs. 189.38 crores up 25.9 % from Rs. 150.40 crores. EPS for QE Dec06 is Rs. 10.72 and for Nine Months it is Rs. 28.34.
I feel at current market price risk reward ratio is in favour of investors.
Sayaji Hotels - Rakesh Jhunjhunwala is rumoured to pick 24 % stake in Sayaji Hotels via preferantial allotment at a price of Rs. 50.00.
Rajshree Sugars - Sugar and Carbon Credits (Sone pe Suhaga). Read This Report.
Hind Sanitary - If there is Boom in Housing and Construction Sector then you can't do without Hind Sanitary.
Ramco Industries - Just get your hands on its Balance Sheet, go to Investments and calculate the Value of its Holdings.
Reliance Energy - If you like Infrastructure plays then keep a close eye on it. Reliance Energy, besides Power, is already in Road Construction on BOLT basis and it is on right track to become a Giant Infrastructure play.
Medicaps - Recommended by Motilal Oswal with a price target of more than Rs. 200
Nelco - Expected to get huge Defence orders, Recommended by Sharekhan with a price target of Rs. 216
MCDOWELL & Co has posted 106.03 per cent increase in net profit to Rs 17.08 crore during the third quarter of 2005-06 while net sales grew 24.09 per cent to Rs 399.17 crore.
A company release said that volumes of McDowell's lead brands grew 13 per cent from 14.68 million cases to 16.54 million cases during the first nine months. Low-end brand sales were deliberately de-emphasised by the company when the input costs, particularly spirit, started rising in the previous fiscal. While spirits costs are coming down from the peak prices of last year, the company will continue its focus on the main line brands.
Consequently, overall sales volumes for the nine-month period in the current year stood at 19.5 million cases compared with 18.7 million cases earlier, registering an increase of five per cent. The emphasis on the main line brands resulted in 19 per cent increase in net sales to Rs 1,029.7 crore (Rs 862.9 crore).
Costs of the primary raw material are softening, the statement said. But the impact is yet to be felt in the 9-month period ended December 2005 as the crushing season has commenced only towards the end of the last quarter. The company expects the trend of falling prices to continue and that the forthcoming quarter's results should reflect the benefit of the falling prices unless the Government's policy on ethanol doping results in an adverse change. The statement said that interest costs are high on account of the borrowings to fund the acquisition of Shaw Wallace & Co Ltd.
The shareholders of McDowell have approved the issue of GDRs/ADRs/FCCBs and other equity-linked securities for $250 million. The board has also approved amalagamation of Zelinka Ltd and Asian Opportunities and Investments Ltd with the company with April 1, 2005 as the appointed date.
Raymond today reported a 204% increase in net profit at Rs 30.55 crore for the third quarter ended December 31, 2005 when compared with Rs 10.05 crore in Q3FY05. According to a release issued by the company to the BSE today, total income increased to Rs 359.42 crore in Q3FY06 from Rs 314.75 crore in Q3FY05.
The company has announced plans to set up a design studio in Italy. "The studio will be a joint venture to be formed between the company and Italy-based Gruppo Zambaiti. The studio will provide the company with strategic, cutting-edge design capabilities for all its textile and apparel businesses," the release added.
Srei Infastructure Finance has posted 79 per cent jump in profit after deferred tax to Rs 32.48 crore during the first nine months of 2005-6 as against Rs 18.10 crore recorded during same period last financial year. Total income stood at Rs 150.10 crore as compared with Rs 95.58 crore last year. Profit before tax increased by 73 per cent to Rs 46.66 crore from Rs 26.91 crore in the same period last year. The total business of infrastructure equipment, projects and rewneable energy finance was raised by 109 per cent to Rs 1,823 crore from Rs 871 crore.
SREI Infrastructure Finance Limited (SREI) and its consortium members have been shortlisted by the government of Andhra Pradesh (GoAP), for development and operation of the integrated mass rapid transit system (MRTS), better known as the Hyderabad Metro Rail project. In the first phase of the project, GoAP identified three corridors for development of elevated MRTS Project on build, operate and transfer (BOT) basis. These were the Miyapur – Chaitanyapuri stretch of 26.27 km with 25 stations, the Tarnaka-Panjagutta-Hitec City route of 20 km and the Secunderabad-Falaknuma via Charminar link of 13.18 km with 14 stations. The cost for all the three corridors in Hyderabad has been estimated at Rs 4,300 crore at Rs 72.88 crore per km.
Another proposal submitted by SREI alongwith Metrail AG of Switzerland was under the active consideration of the government of West Bengal for implementation of the 32km, 32 station Kolkata MRTS from Joka in the south to Panihati in the north, with an estimated project cost of Rs 1500 crore, with fare fixed at Rs 1 per passenger km..
For the Hyderabad system, SREI and its consortium members would design, develop, finance, build, operate, maintain and transfer the MRTS to GoAP after the expiry of the concession period. The other consortium members included SMRT Corporation Ltd (SMRT), a holding company in transportation based in Singapore providing train, bus and taxi services and also maintenance consultancy and project management services in railway systems. Another member was Essar Construction of the Essar group, with an asset base of $4.4 bn and turnover of over $2.08 bn. Another member was Singapore Technologies Electronics Limited (ST Electronics), which specialises in the design, development and integration of advanced electronics systems, rail and traffic management, intelligent building management, information security and m-commerce solutions. Sembcorp Engineers, Asia's largest integrated logistics provider, was also a member.
Elder Pharma has posted 53 per cent growth in net profit at Rs 10.74 crore for the third quarter ended December 2005 as compared with Rs 7.02 crore in the corresponding quarter last year. Income from operations has increased to Rs 94.41 crore for the quarter from Rs 79.67 crore in the year-ago period, registering a growth of 19 per cent. EBIDTA stood at Rs 18.50 crore as againt Rs 13.07 crore last year, up 42 per cent. EPS recorded was Rs 6.14.
Earlier, Elder Pharmaceuticals signed an agreement with Worldwide Media to be the principal sponsor for the annual Filmfare awards and South Filmfare awards for the events to be hosted in 2006, 2007 & 2008.
Elder has a good portfolio of brands with 'Shelcal' being its numero uno brand and almost generic for calcium supplements. It has a good marketing team and a good management
Greenply Industries Limited (GIL), India's largest interior infrastructure company, has reported a revenue of Rs 73.49 crore for the quarter ended December 31, 2005, representing a growth of 49 per cent over the corresponding period last year. Net profit for the quarter also grew by 112 per cent to Rs 3.71 crore, while earning per share (EPS) increased to Rs 2.76 from Rs 1.06, company sources here today said. It said revenue for the nine months ended on December 31 grew by 54 per cent to Rs 206.59 crore, while net profit for the same period increased from Rs 4.41 crore to Rs 10.31 crore representing an increase of 134 per cent over the said period last year. The cumulative EPS for nine months stood at Rs 7.68 as against Rs 2.69 last year.
Greenply Industries reported 112 per cent growth in net profit at Rs 3.71 crore for the quarter ended december 2005. Revenue stood at Rs 73.49 crore for the quarter representing growth of 49 per cent over the year-ago period.EPS increased to Rs 2.76 from Rs 1.06. Revenue for the nine months ended December 2005 grew 54 per cent to Rs 206.59 crore. Net profit increased to Rs 10.31 crore from Rs 4.41 crore, up 134 per cent over the same period last year. The cumulative EPS stood at Rs 7.68 as against Rs 2.69 last year.
Saurabh Mittal, joint managing director, said, "We have been able to improve the margins through a blend of higher capacity utilisations, change in product mix, cost control, improved product visibility and buoyancy in the market. We are maintaining the top position and will retain it in future too. We now have a range of products that has given us the status of a one-stop manufacturer of all products related to plywood and boards, flush doors, decorative veneers, decorative laminates and pre-laminated MDF and particleboard," he said.
Crest Animation Studios Ltd is planning to raise up to $12 million through the issue of foreign currency convertible bonds (FCCBs) for part financing three feature films. The company's US subsidiary, RichCrest Animation, had earlier signed a three-picture co-production and co-financing agreement with Lions Gate Entertainment. Crest's contribution for these three projects would be around $30 million.
Crest's board has approved the raising of funds through issue of FCCBs. The company is looking at a mix of debt and equity to fund the film projects. The first of the three CGI movies,‘Sylvester and the Magic Pebble’, is based on the Caldecott medal-winning story by William Steig, the creator of the blockbuster Shrek. The pre-production work on the movie is near completion, and the production plan is as per schedule for 2008 release. Said Crest Animation Studios CEO AK Madhavan, “We are excited to begin work on the first full length 3D CGI movie that will come out of India. Today, all the key components for the movie, the story, the production facilities, financing and the most critical of all, distribution, are in place. The landmark deal has put Crest amongst the only seven studios in the world to have the capability of producing 3D movies in CGI space.”
Meanwhile, Crest has posted a net profit of Rs 4.6 million for the third quarter ended 31 December 2005, as against a loss of Rs 5 million reported during the corresponding quarter of the previous year. Revenues rose nine per cent rise to Rs 72.9 million as compared to Rs 66.9 million for the corresponding quarter of the previous year. Profit before depreciation, interest and tax (PBDIT) at Rs 24.2 million grew by 28 per cent. For the nine months ended 31 December, Crest reported revenues of Rs 215.8 million, up 6 per cent from Rs 203.5 million during the corresponding period last year. Profit before depreciation, interest and tax (PBDIT) rose by 4 per cent to Rs 75.2 million, while net profit for the nine months increased to Rs 60.5 million from Rs 6.3 million.
Kolkata based Simplex Infrastructure Limited (SIL) , formerly Simplex Concrete Piles (India) Limited, is waiting for state government's approval for forming joint venture for real estate development in the state. B D Mundhra, chairman and managing director, SIL said, "We have submitted our application for a possible joint venture with state government for real estate development. We are waiting for a response in this regard." SIL had orders for developing commercial complex in metros including Bangalore and Mumbai over an area of 80 lakh square feet. The company is also looking for setting its foot in overseas location including Oman, Dubai, Abu Dhabi amongst others, he claimed. SIL ia already present in three countries - Qatar, Bahrain and West Indies. "We have already bagged Rs 600 crore project for constructing hotels for Hilton Hotels in Qatar," Mundhra informed.
Meanwhile, the company recorded 13 per cent growth in net profit at Rs 11 crore for the quarter ended December 2005 against previous years' corresponding figure of Rs 9.73 crore. Total income stood at Rs 374.70 crore, 43.30 per cent higher than last year's Q3 figure of Rs 261.35 crore. Profit before tax (PBT) went up by 23.09 per cent at Rs 14.02 crore against Rs 11.39 crore PBT during Q3, 2004-05. Income from foreign operation recorded phenomenal growth of 310.53 per cent during Q3, 2005-06 at Rs 33.13 crore as compared to last year's corresponding figure of Rs 8.07 crore. Profit from international operation has though declined by 70.96 per cent at Rs 36 lakh during October-December 2005 from last year's corresponding figure of Rs 1.24 crore due to the huge initial investment in the projects.
The order book of the company was to the tune of Rs 4,000 crore with an average gestation period of 1.5 years, Mundhra said.
