VSNL's Q1 net falls
Mumbai: Videsh Sanchar Nigam (VSNL), Tata group company, registered a net fall in profits to 65.8 crore during the first quarter ended June 30, '03, compared with Rs 261.2 crore recorded during the same period of the previous fiscal.

The company's total income also dropped sharply to Rs 926.3 crore in the first quarter as against Rs 1,426.2 crore posted during the same period a year ago.

The company said continued pressure in tariffs lines and competitive international long distance (ILD) environment were contributory factors for dip in sales in Q1 of FY04. However, VSNL said its leased channel business has seen a growth in revenues during the quarter by 12.45 percent.

The company is accepting 950 applications under its VRS plans.

VSNL expects an annual reduction in staff cost by Rs 35-40 crore, due to the VRS the company said.
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iGate acquires GMR's stake in Quintant for Rs 87 cr
Bangalore-iGate Global Solutions, formerly called Mascot Systems, is acquiring the 51percent stake held by the GMR group in business services provisioning company, Quintant Services Ltd, for Rs 86.9 crore in an all-cash deal. iGate has appointed Mr Phaneesh Murthy as CEO.

Mr Sunil Wadhwani, chairman of iGate Global, said that the move would augment the company's domain expertise and strengthen its presence in the financial services segment.

With this acquisition iGate will receive about Rs 68 crore in assets, including Rs 60 crore in cash, domain expertise in banking, insurance and financial verticals, the management team and proprietary process tools and frameworks, among others.

The board of iGate Global approved the transaction on Wednesday, as well as the appointment of Mr Murthy, former worldwide head of sales and marketing of Infosys Technologies, as CEO and to the board of the company.

Mr Gerhard Watzinger, the former CEO of iGate, will manage the global relationship with GE and oversee company's interest in the German region.
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CDC to make open offer for 20 pc in Punjab Tractors
Mumbai: CDC PTL, the wholly-owned subsidiary of CDC, the UK based private equity fund, which last week acquired 23.5 per cent stake in Punjab Tractors Ltd, has said it intended to make an open offer for another 20 per cent stake in the company. CDC acquired the Punjab government's stake in the company at Rs 153 per share. The open offer would also be at the same price, as per SEBI rules. Punjab Tractors closed at Rs 139 on the NSE today.

Earlier CDC had sought to get exemption from making an open offer for the company. CDC will appoint two directors to the board to Punjab Tractors to "assist the company in achieving its exciting plans for future development."

Punjab Tractors is the second largest tractor manufacturer in India, with a market share of 20 per cent.
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Tata Tele turnover up 26 percent, net at Rs 4.5 crore
New Delhi: Tata Telecom has announced a net profit of Rs 4.51 crore in the quarter ended June 30 compared to Rs 1.59 crore for the same period last year.

The company posted a turnover of Rs 75.12 crore against Rs 59.60 crore for the corresponding period in the previous year, registering a growth of 26 percent.

Tata Telecom's focus is on providing end-to-end converged communications solutions to enterprises. It concentrated on the high-growth vertical segments of IT-enabled services, contact centres, educational institutes, banking and finance, hospitality, among others. The company's enhanced market footprint through systems integrator partners started to bear fruit, claims the company.
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Knowledge Systems acquires Questech
Bangalore: Knowledge Systems, a Bangalore-based communications and infrastructure technologies provider, has acquired Questech India, an internet solutions firm for $1.25 million in a stock and cash deal.

According to Mr A V Bhaskar, managing director Questech, "We have decided to merge forces with Knowledge Systems. Our complimentary strengths in geographical presence and technology focus will enhance our growth in the global market."

Mr H K Katti, co-founder and managing director of Knowledge Systems, said, the company is planning to extend its reach into regions such as Japan, Apac and West Asia.

The company's focus is currently restricted to the US and Europe. Questech specialises in industries such as manufacturing, retail and distribution, logistics and insurance.

Mr Mohan co founder of Knowledge Systems said that the new entity is targeting revenues of $4 million for fiscal 2003-04 and hopes to reach $20 million in three years.

Knowledge Systems was set up by a group of ex-Wiproites, while Questech was founded by former IBM and Apple employees in the US.
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ICI India to offload Indian Explosives stake to Orica for Rs 67 cr
Kolkata: ICI India is selling off its 51 per cent holding in Indian Explosives Ltd (IEL) for Rs 66.64 crore to Orica Investment Pty of Australia which holds 49 per cent in the joint venture.

The proposed sale of shares to Orica is subject to the Australian company obtaining clearance from FIPB said Mr Aditya Naraya, chairman, ICI India.

This deal will bring to an end the suits pending before the Bombay High Court said Mr Narayan addressing the shareholders' at ICI's 49th AGM on Wednesday.

Orica had recently moved court, demanding the modification of certain clauses of the shareholders' agreement, including those dealing with the valuation of IEL shares. A few claims were also raised on the company, which has also exercised its put option by calling upon Orica to buy the 51 per cent holding in IEL. Separately, Orica also contended that ICI is not authorised to exercise the put option. ICI is contesting both suits in court.

For the quarter ended June 30, ICI India recorded a total income of Rs 158.83 crore (Rs 153.92 crore). Its post-tax profit stood at Rs 7.65 crore (Rs 8.13 crore).
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Indal acquires Utkal Alumina
Kolkata: Utkal Alumina International Ltd (UAIL) has been acquired by the Indian Aluminium Company Ltd (Indal) of the Aditya Birla group, as the transaction for increasing Indal's equity holding in UAIL from 20 per cent 55 per cent has been completed.

The balance 45 per cent in the 100 per cent export-oriented alumina company in Orissa is held by Alcan Inc of Canada.

UAIL has shown an impressive export-led growth in sales and profit before tax.

Net sales/income from operations at Rs 380 crore were 23 per cent higher than the first quarter of last year (about Rs 310 crore). Profit before tax at Rs 37.5 crore was up by 33 per cent (Rs 28.1 crore). However, net profit witnessed a modest rise of 6 per cent at Rs 25.46 crore (Rs 24.01 crore) following higher current tax at Rs 10 crore compared to Rs 2.5 crore during Q1 last year.

The key factors which contributed to better performance were: higher output from most units, particularly a 40 per cent increase in production of speciality alumina and higher metal output from the expanded Hirakud smelter, a 50 per cent rise in export volumes of sheet, a surge in sales of speciality alumina and higher export volumes and realisation for standard alumina.
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Eveready net up to Rs 10 cr
Kolkata: Eveready Industries India has declared a higher net profit of Rs 10.2 crore in the April-June quarter of '03' against Rs 39 lakh in the corresponding period last fiscal.

The factors responsible for this rise were substantially higher 'other income' and better treasury management resulting in low interest outgo, that helped Eveready Industries substantially improve its bottomline.

Eveready Industries' Q1 'other income' was at Rs 4.7 crore, against Rs 1.7 crore in the same period last year, while its Q1 interest payout was Rs 9.6 crore, against Rs 21.3 crore.
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Indian Oil net rises 51 percent
New Delhi: Indian Oil Corporation (IOC) has reported a 51.5 per cent jump in the first quarter net profit to Rs 944.67 crore, against Rs 624.99 crore in the same period last year.

Turnover during the April-June quarter improved 10.7 per cent to Rs 30,874 crore, against Rs 27,898 crore in the same period last year.

The company's seven refineries increased output to 8.54 million tonnes during the period from 8.46 million tonnes in the same period last year.

Its pipelines network transported 10.72 million tonnes of crude oil products as against 9.72 million tonnes last year.

The company also sold 11.34 million metric tonnes of petroleum products, besides exporting 0.43 million tonnes during the first quarter of 2003-04.
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HPCL Q1 net up by 34.91 per cent
Mumbai: Hindustan Petroleum Corporation (HPCL) has declared a 34.91 per cent rise in net profit at Rs 157.34 crore for the quarter ending June 30, 2003 as compared to Rs 116.62 crore for the same period last fiscal.

Total income for the period under review also rose by 11.36 per cent to Rs 13,833.96 crore as against Rs 12,422.13 crore in Q1 of 2002, according to information given to the Stock Exchange, Mumbai, Wednesday.
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Sunfeast biscuits from ITC launched
Kolkata: ITC Foods Division has launched the Sunfeast range of biscuits on a national scale.

The range of glucose biscuits will be available in three sizes Marie (in 200 gm) and Cream segments (100 gm). The prices range from Rs 3 to Rs 19.

The Sunfeast umbrella brand, powered by Sunny the mascot, is intended to "spread the smile", with the new product innovations of Orange Marie and Butterscotch Cream biscuits aimed at children.

The Rs 4,500-crore biscuits market in India comprises eight lakh tones in volumes of which 50 per cent was in the organised segment. The market grew at 12 percent in 2002 from five per cent earlier.

The two product categories of Glucose and Marie alone account for a market size of Rs 1,500 crore annually.
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Amul to launch new products
New Delhi: Amul is adding several new products to its 'Masti' brand of ready-to-eat foods. The company has already launched two ready-to-serve soups under the Masti brands which include tomato soup and hot 'n' sour vegetable soup.

Amul is now planning to launch another ready-to-eat pre-cooked culinary item — Masti Kadhi at present being test marketed. Masti Kadhi in one litre packs will be priced at Rs 25.

Amul is also planning to add whipping cream to its existing range of dairy products. The product will be marketed as 'Chef's whipping cream,' and will be meant for cake and pastry decorations and other purposes.

The company claims that its soups are low in calories and fat, and rich in vitamins and mineral content. Each pack of one litre soup comes for Rs 30.
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