RComm Q1 net profit down 79.42% at Rs 251 cr

Anil Dhirubhai Ambani Group company - Reliance Communications has announced its results for the quarter ended June 2010. It has reported net profit of Rs 251 crore as against Rs 1220 crore, a de-growth of 79.42% (QoQ). The fall was due to notional provisioning on forex.

Revenues declined 1.53% to Rs 5015 crore from Rs 5092.8 crore, (QoQ).

Numbers were below the expectations; CNBC-TV18 expected net profit at Rs 612.67 crore and net sales at Rs 5273.3 crore.

Earning before interest, depreciation, tax and amortisation (EBIDTA) margin improved at 32.54% versus 31.46%.

Stock that rallied 55.6% in 7 days

Raymond jumped 55.59% in 7-days to end at Rs 374.90 on Friday. Rallying 19.99%, the stock hit 52-week high today. There were pending buy orders of 40,371 shares, with no sellers available.

In the April-June quarter of this fiscal, it has posted a loss of Rs 24.88 crore compared to loss of Rs 31.60 crore (YoY) while income was at Rs 244.26 crore vs Rs 239.94 crore (YoY).

Is Germany driving growth in Europe?

The gross domestic product (GDP) numbers for the Eurozone expanded by 1% in the second quarter, ie from the first and by 1.7% versus the second quarter of 2009 that is year-on-year (YoY).

Germany seems to be the engine of growth. And that, is quite expected with 2.2% growth in the second quarter. That is the fastest since the country’s reunification in 1990. So is the worst over for Europe?

Is this the right time to start investing in equities

The markets are looking good at this point of time, volatility is less. So, is this the time for you to start investing before the market runs up even more?

In an exclusive interview with CNBC-TV18, PN Vijay, Portfolio Manager, says in this environment, if a person is looking at two-three year time frame, equity is a great place to invest and build assets and beat inflation.

Vedanta-Cairn conclude negotiations

Vedanta Resources Plc will acquire 51% stake worth around USD 8-8.5 billion in UK-based Cairn Energy’s Indian entity. CNBC-TV18 learns that the negotiations have concluded and Cairn has agreed to sell part stake in its Indian unit. This signalling a strategic shift by mining company Vedanta into oil and gas.

However, Petronas, which holds almost 15% in Cairn India, is unlikely to sell its stake to the Anil Agarwal company.

Nintendo 3DS Impresses

For gamers, this is the most wonderful time of the year. It's the week of the Electronic Entertainment Expo (E3), where developers unveil their upcoming software and hardware offerings to the public. Forbes caught up with GamePro editor John Davison to get the scoop on what's caught his eye so far at E3.

Exports jump 35% to $16.1 bn in May

India's May exports rose an annual 35 per cent to $16.1 billion, flattered by low year-ago numbers, the trade secretary said on Friday.

Imports for the month were at $27.4 billion, Rahul Khullar said, widening the country's trade deficit to $11.3 billion.

Asia's third-largest economy is targeting close to 15 per cent export growth in the current fiscal year, following an annual drop of 4.7 per cent in the 2009/10 fiscal year as the global slowdown crimped demand.

"It is a huge base effect kicking in," said Khullar.

India has exported $33 billion worth of goods in April and May, the first two months of the current fiscal year, he said.

April exports had risen 36 per cent to $16.9 billion as demand picked up for India's gems and textiles, while imports rose 43 per cent from a year earlier to $27.3 billion and the trade deficit stood at $10.4 billion.

RIL mulls $9-bn investmen

Mumbai: Reliance Industries Ltd (RIL) plans to invest USD nine-billion in expansion of its polyester and petrochemicals business, Chairman Mukesh Ambani said today.

"In the next five-years, our total investment in all the new polyester and petrochemical manufacturing facilities will be the largest investment in this sector to be made anywhere in the world at any given point of time," RIL's Chairman, Mukesh Ambani, told shareholders at the company's AGM here.

RIL is executing a 1.4-million tonnes of paraxylene capacity at Jamnagar. It is also setting up an integrated 2.3-million tonnes of purified terephthalic acid (PTA), 5,40,000-tonnes of polyethylene terephthalate complex at Gandhar and 3,60,000-tonnes of polyester filament yarn plant at Silvassa.

These initiatives translate to the single largest capacity addition in polyester in the history of Reliance.

This expansion will strengthen India's position as a leading textile and fibre producer in the world, Ambani said.

With the next phase of large-scale investments, combined with value-added products, the polyester business would contribute in greater measure to Reliance's growth and profitability and maintain its global leadership, he said.

"In our recent past, the petrochemical business went into a consolidation phase. This was a sequel to the large capacity additions in Jamnagar and integration of manufacturing facilities of the erstwhile IPCL," he said.

"We are committed to creating competitive capacity in petrochemicals to cater to the next decade of growth in India and Asia," Ambani said.

The refinery provides Reliance with extremely competitive feedstock. Reliance will leverage its superior technical and project execution skills in building additional global scale capacities.

Ambani pointed out that currently, due to the on-going economic crisis, capacity-building in this sector globally is at a low. This provides Reliance with a unique opportunity to build world-scale capacity at competitive capital costs. All these augur well for rapid growth and profitability of the petrochemical business of Reliance, he said.

"We are accelerating the implementation of an off-gas cracker at Jamnagar. This off-gas cracker with over 1.5 million tonnes per annum of olefins capacity with matching downstream capacities will be one of the largest facilities in the world. MEG from cracker will add to our leadership position in the polyester business," he said.

Reliance is also the largest player in the synthetic rubber business in India.

"We want to build on this leadership to become one of the top ten elastomer companies in the world. Reliance will create additional capacities of poly butadiene rubber at Baroda and styrene butadiene rubber at Hazira...

Pipavav denies stake sale to Reliance

Pipavav Shipyard is not in talks with Reliance Industries for a stake sale, Nikhil Gandhi, chairman of SKIL Infrastructure, which controls Pipavav it was revealed today.

Earlier this week, media reports had said Reliance could buy a 26 percent stake in the shipbuilding firm.

Gold regains Rs 19,000 level on firm global cues

NEW DELHI: Gold prices extended gains for the second day on Friday by adding Rs 25 to Rs 19,000 per 10 grams at the bullion market here on sustained buying by traders.

Silver shot up by Rs 200 to Rs 29,800 per kg.

Domestic prices gained after the precious metal rose in the overseas markets which normally set the price trend at the domestic front.

In the global markets, investors indulged in buying the metal after growing concerns that the economic recovery is not as strong as expected.

Standard gold of 99.9 purity and 99.5 purity rose further by Rs 25 each to Rs 19,000 and Rs 18,900 per ten grams, respectively. They had gained Rs 75 in the previous trading session.

Sovereign also traded higher by the same margin at Rs 14,700 per piece of eight gram.

In line with the general firming trend, silver ready rose Rs 200 to Rs 29,800 per kg and weekly based delivery by Rs 300 to Rs 29,520 per kg.

Silver coins also went up by Rs 100 to Rs 34,600 for buying and Rs 34,700 for selling of 100 pieces. — PTI

Gold Exchange Traded Fund from Religare

Religare MF today announced the launch of its new fund ‘Religare Gold ETF ’ (An Open Ended Gold Exchange Traded Fund). The Scheme seeks to generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error. The fund will be managed passively with investments in physical gold and will endeavor to track the performance and yield of its underlying asset viz. gold. Investments in physical gold will be made regardless of any investment merit. The fund intends to follow a fully invested approach and will have a minimum exposure of 90% of its assets in gold and gold bullion at all times. One unit of Religare Gold ETF will represent 1 gram of gold. The fund may buy and sell gold at different points of time during the trading session which may or may not correspond to the closing price of gold, maintain cash to meet its liquidity requirement, which may result in the Scheme having tracking error and to that extent the performance of the Scheme may not commensurate with the performance of its underlying asset. However, the fund manager will try and minimize the tracking error to the fullest extent possible. The fund is benchmarked to the Price of Gold.
Speaking on the occasion Saurabh Nanavati, Chief Executive Officer, Religare Mutual Fund said, “Investors keep asking whether this is the right time to invest in Gold. From my perspective, Gold is a necessary allocation to everybody’s portfolio to the tune of 5-10% of their portfolio. Gold is a hedge against inflation and a falling US dollar. Emerging markets like India are facing inflationary issues due to ample liquidity created by global central banks. As regards the US dollar, over a longer period with India and China GDP growth being in excess of 6%+ and US growth not expected to cross 2% in the near future, the dollar is bound to depreciate fairly sharply over the next 5 years against emerging market currencies. Gold will therefore, act as an insurance to retail investor portfolios.”
“Religare Mutual Fund would like to thank its 200,000+ investors for the faith shown in us in 2009. Religare Mutual Fund’s Avg. Assets under Management jumped almost 4 fold in calendar year 2009 to Rs.15,800 crores. We intend to maintain our retail momentum. Our last 2 funds got in around 50,000 investors, and we hope that the Gold ETF will be well-received by investors and distributors. We are also focusing on aggressively increasing our broker empanelment which should increase from 13,000+ empanelled distributors to over 22,000+ in the next 2 months itself.”
Advantages of Investing in Religare Gold ETF
Easily Accessible
During NFO – Retail Investors can directly buy from the Fund House.
Post NFO – Units will be listed on NSE/ BSE. Investors can buy, sell through their normal brokerage accounts.
Cost Effective
Cost much lower than the cost of buying, storing and insuring physical gold.
Liquid
Not Limited to Secondary Market Trading at NSE / BSE.
Investors can create and redeemed units in a minimum lot size of 1000 units directly with the Fund House.
Physical Gold and Purity
The underlying gold is held in the form of 1 kg bars.
Gold held by the fund shall be of fineness (or purity) of 995 parts per 1000 (99.5%) or higher sourced from LBMA (London Bullion Market Association) approved refiners.
Transparent
NAV will be declared on a daily basis and portfolio on a monthly basis.
Investors can buy units of Religare Gold ETF directly from the Fund House during the New Fund Offer Period. Post the New Fund Offer Period; Units of Religare Gold ETF will be listed on National Stock Exchange / Bombay Stock Exchange. Investors can buy and sell units of Religare Gold ETF on the exchange through any registered broker.
The minimum application amount during NFO for retail investors is Rs.5,000/- and in multiples in of Re.1/- thereafter while for Authorized Participants and Large Investors the minimum application amount is Rs.15 lacs and in multiples of Re.1/- thereafter OR 1 KG gold per application and in multiples thereafter. Units will have face value of Rs.100 each and will be issued at a premium equivalent to difference between allotment price and face value during the NFO.
About Religare Asset Management
With average assets under management of over INR 158bn (for December, 2009), expertise that extends across equity and fixed income investments, Religare Asset Management offers you a broad range of funds designed to suit your investment needs with an aim to provide best-in-class investment products across asset classes, regions and risk spectrum with high standards of customer service.
Religare Asset Management is promoted by Religare Securities Ltd. – a wholly owned subsidiary of Religare Enterprises Ltd., which is one of India’s leading integrated financial services group offering services ranging from equities, commodities and insurance broking to wealth management, investment banking, portfolio management and personal financial services.
For more information, log on to www.religaremf.com
About Religare Enterprises Limited
A diversified financial services group with a pan-India presence and presence in multiple international locations, Religare Enterprises Limited (“REL”) offers a comprehensive suite of customer-focused financial products and services targeted at retail investors, high net worth individuals and corporate and institutional clients. REL, along with its joint venture partners, offers a range of products and services in India, including asset management, life insurance, wealth management, equity and commodity broking, investment banking, lending services, private equity and venture capital. Religare has also ventured into the alternative investments sphere through its holistic arts initiative and film fund. With a view to expand and diversify, REL operates in the life insurance space under ‘Aegon Religare Life Insurance Company Limited’ and has launched India’s first wealth management joint venture under the brand name ‘Religare Macquarie Private Wealth’. REL, through its subsidiaries, has launched India’s first holistic arts initiative – with a gallery — as well as the first SEBI approved film fund, which is an initiative towards innovation and spotting new opportunities for creation and maximization of wealth for investors. REL operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498 cities and towns controlling 1,837 business locations all over India as on June 2009.
To make a mark in the global arena, REL acquired UK-based Hichens, Harrison & Co. in 2008 which was subsequently re-named as Religare Hichens Harrison PLC (“RHH”). Hichens, Harrison & Co. was incorporated in London in the year 1803 and is believed to be one of the oldest firms of stockbrokers in the City of London. Pursuant to expansion of REL’s business, the company has grown from largely an equity trading company into a diversified financial services company. With the addition of RHH the REL group now operates out of multiple global locations, other than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore).
Religare Enterprises Limited (“REL”) proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make a rights issue of its equity shares to its existing shareholders and has filed a letter of offer (“LOF”) with the Bombay Stock Exchange Limited (“BSE”), the National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”) and the Securities and Exchange Board of India (“SEBI”). The LOF is available on the websites of the Stock Exchanges and SEBI at www.bseindia.com, www.nseindia.com and www.sebi.gov.in, respectively, as well as on the website of the lead manager at www.enam.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, please refer to the section titled “Risk Factors” of the LOF.
Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of Scheme will be achieved. Investment in mutual fund units involve investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of capital. As with any investment in securities, the NAV of the units issued under Scheme may go up or down depending upon the factors and forces affecting the securities markets. As the Scheme will invest primarily in physical gold, the NAV of the Scheme will react to the price of gold. The prices of gold may be affected by several factors such as demand and supply of gold in India and in the global market, change in political, economical environment and government policy, inflation trends, currency exchange rates, interest rates, perceived trends in bullion prices, restrictions on the movement/trade of gold by RBI, GOI, etc. Past performance of the Sponsor and its affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividend will be paid regularly. Investors in the Scheme are not being offered any guaranteed / assured returns. Religare Gold Exchange Traded Fund, an open-ended Gold Exchange Traded Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and returns. Investment objective: To generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error. Asset Allocation Pattern: Physical gold: 90%-100%. Debt & Money Market Instruments*: 0%-10%.* Investments in securitized debts can be made by the Scheme upto 10% of the net assets. Load Structure: Entry Load: Nil. Exit Load: Nil. Please read the Scheme Information Document (SID) and Statement of Additional Information (SAI) before investing. SID, SAI and Key Information Memorandum cum Application Form are available at the ISC/Distributors. Terms of Issue: Offer for Units having face value of Rs. 100 each and will be issued at a premium equivalent to difference between the allotment price and face value during the New Fund Offer. After the closure of NFO, the Units of the Scheme will be listed on Stock Exchange(s) and the same can be purchased / sold in round lots of 1 Unit during the trading hours of the Stock Exchange(s) like any other publicly traded stock. In addition to purchase and sale of Units on Stock Exchange(s), Authorized Participants and Large Investors can directly subscribe to or redeem the Units of the Scheme with the Mutual Fund in Creation Units size at NAV based prices on all Business Days during an ongoing offer period. The NAV of the Scheme will be disclosed on all Business Days. Statutory Details: Religare Mutual Fund has been set up as a trust sponsored by Religare Securities Ltd. (liability restricted to Rs. 1,50,000) with Religare Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with Religare Asset Management Company Ltd. as the Investment Manager.
For more information, please visit – www.religare.in

Unity Infraprojects Stock Split Approved

We had announced Unity Infraprojects stock split news on 21st Jan. Unity Infraprojects has informed BSE that the Board of Directors of the Company at its meeting held on January 29, 2010, have approved sub-division (stock split) of existing 1,48,17,476 equity Shares of Rs. 10/- each to 7,40,87,380 equity Shares of Rs. 2/- each (In the ratio of 5 (Five) shares of Rs. 2/- each against 1 (One) share of Rs. 10/- each)

K M Sugar Mills Approves Stock Split

As we talked about K M Sugar Mill’s stock split plans, K.M.Sugar Mills Limited has informed the Exchange that the Board of Directors of the Company in their meeting held on January 29, 2010 has approved to split One Equity shares of Rs. 10/- each in to Five equity shares of Rs. 2 each.

Mounteverest Trading & Investment Bonus Issue

Mounteverest Trading & Investment Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on February 03, 2010 to consider issue of bonus shares. Earlier they had announced on 21st January 2010 to decide on the bonus issue in yesterday’s meeting.
Mounteverest Trading & Investment Ltd board considered the matter of allotment of Bonus Shares and discussed the new norms prescribed under ICDR Regulations as also the provisions of other statutes such as Bonus Issue Guidelines, listing agreements and the Companies Act etc. The Board asked for further information and opinions that need time to be prepared and presented. Accordingly, the Board decided to meet again on February 03, 2010 and consider the agenda of issue of bonus shares on that day.

IIP for Nov at 11.7% Vs 2.5% (YoY)

IIP for Nov at 11.7% Vs 2.5% (YoY), Vs 10.3% (MoM); CNBC-TV18 poll saw Nov IIP at 10.2%; Capital Goods growth at 12.2% Vs 0.5% (YoY)
November IIP stood at 11.7% Vs 2.5% (YoY), Vs 10.3% (MoM). CNBC-TV18 poll saw November IIP at 10.2%. October IIP remained unchanged at 10.3%.
November Manufacturing Sector growth stood at 12.7% Vs 2.7% (YoY). Basic Goods growth stood at 6% Vs 2.2% (YoY). Capital Goods growth stood at 12.2% Vs 0.5% (YoY). Mining Sector growth stood at 10% Vs 0.7% (YoY). Electricity Sector growth stood at 3.3% Vs 2.6% (YoY). Intermediate Goods growth stood at 19.4% Vs -3.9% (YoY). Consumer Goods growth stood at 11.1% vs 9.4% (YoY). Consumer Durable Goods growth stood at 37.3% Vs 0.3% (YoY).

Infinite Computer Solutions IPO subscribe 2.85 times

The initial public offering (IPO) of Infinite Computer Solutions (India), a global service provider of Infrastructure Management, Intellectual Property (IP) leveraged solutions and IT services, focused on the Telecom, Media, Energy, Manufacturing, and Healthcare industries, has been subscribed to approximately around 2.84 times (Source: NSE and BSE website) on Day 2 (January 12). As of 4 pm on January 12, 2010, Total Bids Received was 27,861,480 as against the Total Issue Size of 9,777,550.
Infinite entered the capital market on January 11, 2010, with an Initial Public Offering of 11.5030 million Equity Shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The price band has been fixed between Rs. 155 and Rs. 165 per Equity Share. The Issue closes on January 13, 2010.
Nine anchor investors such as T. Rowe Price International Inc., Carlson Fund India, Lloyd George Investment Management (Bermuda) Limited A/C L. G. India Fund and India Plus Fund, Alden Global (Mauritius) Ltd. Credit Suisse (Singapore) Ltd., BATSPL A/C Bharti Axa Equity Fund, Reliance Capital Trustee Co. Ltd. A/C Reliance Regular Savings Fund – Balanced Option and Citigroup Global Markets Mauritius Pvt. Ltd. have been allocated 1,725,450 shares at a price of Rs 165 per equity share (upper end) on January 8, 2010.


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Axis IT&T Board approves Rights Issue

Axis IT&T Board approves Rights Issue to raise upto Rs 50 crores. Axis-IT&T Ltd has announced that the Board of Directors of the Company at its meeting held on January 12, 2010, has been decided to raise further capital by issue of Equity Shares on rights basis for an amount upto Rs. 50 (fifty) crores, subject to the necessary approvals, if any. The Board has also constituted a Committee and delegated the necessary powers to the Committee to decide about the size, timing, basis of offer, premium and other modalities of the proposed rights issue.

Sanraa Media Board approves 5:4 Bonus Issue

Sanraa Media had made an bonus issue announcement on 4th Jan. It has announced that the Company is marching into its 15th Year of incorporation. To mark this entry into the 15th year, the board has Considered and proposed, subject to the approval of the Shareholders and other statutory authorities, issue of Bonus Shares in the ratio of five equity shares of the Company of Re 1/- each for every four equity shares held by the Shareholders of the Company as on the Record Date to be fixed later for this purpose.

Record date - Winsome Yarns Stock Split

Winsome Yarns has fixed 22 January 2010 as the record date for sub-division of denomination of paid up equity shares from Rs. 10 each to Re. 1 each.

Atco Corporation hits Upper Circuit on Stock Split plan

Atco Corporation was locked at 5% upper circuit at Rs 356.85 on BSE, after the company said its board will meet on 19 January 2010 to consider stock-split. The company announced the board meet after market hours on Monday, 11 January 2010. The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level so far in the day. The stock hit a lifetime high of Rs 389.95 on 20 November 2009 and a 52-week low of Rs 50 on 14 July 2009. The company is engaged in production and sale of bottled drinking water/mineral water. The company markets its bottled mineral water under ‘Brilliant’ brand.

Murli Industries Stock Split Plan

Murli Industries surged around 5% on BSE, after the company said its board will meet on 18 January 2010 to consider stock-split. The company announced the board meet after market hours on Monday, 11 January 2010. The company is engaged in manufacturing and marketing paper. The company also manufactures and markets soya de-oiled cake, refined edible oil and paper products like duplex, newsprint, printing paper, cream wove, map litho paper and copier. The company operates in nine segments namely: solvent extraction unit, duplex paper, newsprint, writing & printing, power, pulp and cement.

Sterlite Technologies Bonus Issue and Stock Split plan

Sterlite Technologies jumped around 10% on BSE, after the company said its board will meet on 18 January 2010 to consider issue of bonus shares and stock split. The company announced the board meet after market hours on Monday, 11 January 2010. Sterlite Technologies provides transmission solutions for telecom and power sectors.