IOC bid successfully for oil block in Libya
New Delhi: Indian Oil Corp. and its partner Oil India Ltd have won an oil block in Libya in the first ever joint foray in oil and gas exploration overseas. IOC-OIL have won the onshore Block-086 in the highly prospective Sirte basin, officials in IOC said.

The two firms had last month forged an alliance for joint venture into oil and gas exploration and production in other countries.

Officials said under the conditions of the licence, IOC-OIL will get 18.4 per cent share of any future production in the block, with the remaining 81.6 per cent going to Libya's national oil company. Libya will also fund half of the exploration and development costs.

Block-086 measures 7087 sq km. OIL will be the operator of the block.

Three giant US oil companies won 11 of the 15 Libyan oil exploration and production sharing agreements contested by 56 international companies. Officials said IOC-OIL will bid for at least two out of the 40 licences Libya proposes to offer in the second round next month.
Back to News Review index page  

Amtek India to buy UK auto components company
New Delhi: Amtek India Ltd has said that it is considering a plan to buy the UK-based Sigma Cast Group Ltd, which makes turbo chargers for automobiles. The company's board will meet on February 7 to consider the plan, the New Delhi-based Amtek India said in a statement.

Sigma makes automobile casting components at a factory near Birmingham in the UK and is one of the largest suppliers of turbo charger components for automobiles in the world, the statement said.

This could be the third major overseas acquisition by the Amtek Group in recent years. Last year, another group company, Amtek Auto Ltd, had acquired 100 per cent equity stake in the UK-based GWK Group Ltd and prior to that, Amtek Auto had invested Rs28 crore in buying out 100 per cent equity in New Smith Jones Inc, based in the US, which makes ring gears and flex plates.
Back to News Review index page  
Mudra acquires Kidstuff Promos and Events company
Mumbai: Mudra Communications Pvt Ltd has acquired the Delhi-based Kidstuff Promos and Events company (KPE) in a bid to reposition itself as an integrated marketing communications agency.

KSE is a promotional marketing services company with expertise in consumer contact programmes specific to schools and colleges, and other consumer promotions.

The agency currently has billings of around Rs20 crore and has an all India reach of 535 towns. This is first below-the-line acquisition by Mudra Communications and it will now hold 74 per cent stake in this company.

The relationship will be symbiotic with Mudra getting an independent access of KPE's existing clients, and the latter utilising the Mudra's resources to consolidate its presence in the promotional marketing space.

KPE currently has a database of 16,000 schools, 1,000 colleges, 5,000 parlours, 1,500 pubs and restaurants, 500 call centres, 250 cinema halls, and 100 malls, the company claimed. Its key clients include HLL, Intel, Bausch & Lomb, Discovery Channel, Pepsi, Cartoon Network, ITC Foods and several others.

Mudra is examining other areas in its pursuit to offer total branding solutions, and will invest in them moment new opportunities arise, Kamath said, while indicating that the agency partnered with Rapp Collins, the international direct response agency, last September.
Back to News Review index page  
Ramco Ind to set up cement unit
Chennai: Ramco Industries Ltd plans to set up a 600-tonne-a-day cement clinker grinding unit at Kharagpur in West Bengal at a cost of about Rs15 crore, and hopes to commission the plant by June.

According to company officials, about 200 tonnes a day will be used for Ramco Industries' fibre cement sheet plant in Kharagpur and the balance will be sold in the market.

The company's board, which met on Friday, also approved a proposal to set up a cotton spinning mill with an installed capacity of 14,400 spindles at Rajapalayam in Tamil Nadu. This will cost the company about Rs36 crore, of which 80 per cent will come as loans and the balance from internal accruals.

For the three months ended December 2004, Ramco Industries reported a net profit of Rs4.98 crore on total income of Rs44.70 crore compared with a net profit of Rs4.90 crore on income of Rs39.28 crore for the same period last year.

For the first nine months of the year, the company reported a net profit of Rs22.03 crore on income of Rs149.13 crore against a net profit of Rs19.72 crore on income of Rs125.63 crore for the corresponding period last year.
Back to News Review index page  
ITC asked to cough up Rs.450 crore
New Delhi: The Finance Ministry has issued an ordinance, which allows the government to fine the cigarette major to the tune of Rs450 crore. In the same matter the Supreme Court had earlier given relief to ITC. Last year, ITC had won its appeal against a government order asking it to pay extra excise dues.

Between 1983-85, ITC had paid excise based on the price printed on its cigarette packets.

The government said that the cigarettes were actually being retailed at higher rates so the excise paid should also be higher. The apex court in the ruling said that India's excise laws only ask the manufacturer to pay tax on its printed price, so ITC did not need to pay the extra money.

However, the government has hit back with a legal weapon.

It's changed the relevant clause in the excise act saying excise will be charged on the actual market price and not what's printed on the package and has imposed it with retrospective effect.

The FMCG major has been asked to pay Rs450 crore within thirty days. It has also been asked to pay back any refund it has collected on the Rs 350 it has already paid.

Legal experts say the government is fully within its rights to do this.
Back to News Review index page  
No stay on ADC regime order: TDSAT
New Delhi: With respect to the implementation of the new Access Deficit Charge regime, the Telecom dispute settlement tribunal, TDSAT has refused to grant a stay, through an interim order, on the implementation of the ADC regime from tomorrow.

However, TDSAT has asked Telecom Regulatory Authority of India to file its reply within two weeks. The matter would now be heard on February 24. TDSAT has also said it had the jurisdiction to adjudicate on regulations of telecom regulator TRAI.

The new levy regime could result in a loss of about Rs550 crore to MTNL annually.
Back to News Review index page  

RIL: Independent directors were not paid any money
Mumbai: Reliance Industries Limited (RIL) has denied that independent directors were paid any money once they were appointed on the board of the company.

Reacting to media reports, the company says the three independent directors D V Kapur, Y P Trivedi and S Venkitaraman were not paid any money by the company or promoters except the amount paid as sitting fees for the directors.

Earlier, there were media reports that these directors and companies owned by their relatives were working for Reliance, which could be a possible violation of listing agreements. However, RIL has clarified that once the directors were appointed on the board, the payments were stopped and contracts of those companies were not renewed once their term expired.
Back to News Review index page  
Bharti buys VSAT business for Rs33 crore
New Delhi: Telecom major Bharti Tele-Ventures has said that it has acquired Max Group's Very Small Aperture Terminal (VSAT) business for Rs33 crore.

The all-cash deal would take Bharti to the number two spot in the VSAT industry after Hughes Escorts Communications. The move is aimed at taking advantage of the broadband policy announced recently, which relaxed the service norms for VSAT operators.

The agreement between Bharti Infotel, a 100 per cent subsidiary of Bharti Tele-Ventures and Max Group, involves acquiring 100 per cent equity stake in C Max Infocom and its wholly owned subsidiary Comsat Max. The two acquired companies recorded revenues of over Rs50 crore for the financial year ended March 31, 2004.

VSAT is a satellite-based communication which is highly effective in transmitting data to remote and rural areas. The new broadband policy allows VSATs to be used for offering high speed Internet also.

The acquisition involves Bharti Tele-Ventures taking over all the assets and liabilities of the acquired companies, including the VSAT Hubs in Mumbai and Delhi, along with 4,300 installations spread across the country. In-addition, Max's data centre located in Delhi along with 130 telecom professionals would also come into the Bharti fold.
Back to News Review index page  

BSNL nets over a lakh bookings for broadband service
New Delhi: Bharat Sanchar Nigam Ltd has received over one lakh bookings for its broadband services in the first two weeks since its launch. The state-owned company has given 1,000 connections and has rolled out the DataOne service in six cities.

The company had launched broadband services on January 14 from Chennai and is offering speeds of 256 Kbps at Rs500 per month. BSNL proposes to reach 15 cities this month and approximately 200 cities by the end of this fiscal. The company has kept a target of reaching 1 million subscribers over the next couple of years.

BSNL's broadband network is centrally-managed from Network Operating Centres (NOC) located at two sites, one of them being the master at Bangalore and the other disaster recovery site at Pune.

The technology called ADSL (Asymmetric Digital Subscriber Line) will allow the subscriber to surf the net and have a phone conversation simultaneously.
Back to News Review index page  

Corporate Results
IOC Q3 net profit down 46 per cent
New Delhi: Indian Oil Corporation (IOC) has reported a 46 per cent drop in its net profit in the third quarter due to losses on sale of LPG, kerosene and diesel. The oil PSU said that it lost Rs2131 crore on sale of LPG, kerosene and diesel in the October-December 2004 period.

The company's net profit dropped Rs1286.76 crore for the third quarter ended December 31, 2004, as compared to Rs2403.44 crore in October-December 2003. The company's revenues, however, rose from Rs31,196.29 crore in October-December 2003 to Rs37,274.05 crore this year.

For the nine months ended December 2004, the company recorded a net profit of Rs3,999 crore compared to Rs5,155 crore for the same quarter of the previous fiscal. Gross turnover for April-December 2004, however, increased 17 per cent to 1,10,169 crore from the previous year's Rs.94,107 crore.

Tata Motors Q3 net up a whopping 50 per cent
Mumbai: Tata Motors has posted a 50 per cent rise in net profit at Rs316.21 crore in third quarter ended December 31, 2004, compared to Rs210.88 crore posted during the same period of the previous fiscal.

The automotive manufacturer's income from operations rose to Rs4,364.94 crore during the quarter under review, as against Rs3,399.60 crore recorded in the same period of the previous fiscal.

The company's total sales volume during the quarter increased by 26 per cent to 98,662 units from 78,380 units sold in the year-ago period. Commercial vehicle sales grew 26 per cent to 50,908 units.

Tata Motor's passenger vehicle sales recorded a 29 per cent growth at 39,048 units, while exports were up 14 per cent at 8,706 units during the review period. However, the operating margins continued to be under pressure due to an unprecedented increase in material costs like steel, tyres and other commodities.

For the nine-month period ended December 31, Tata Motors posted a net profit of Rs848.74 crore (compared to Rs517.87 crore in the April-December quarter of last fiscal).

Net sales were up at Rs12,086.07 crore (Rs9,079.77 crore).

BHEL Q3 net up 78 per cent
New Delhi: Engineering major Bharat Heavy Electricals Limited's (BHEL) third quarter net profit jumped 78.4 per cent to Rs237.4 crore compared to Rs133 crore in the year-ago period. The company has also declared an interim dividend of 35 per cent for 2004-05.

Net income grew 28 per cent to Rs2,529.7 crore in the third quarter as against Rs1,972.8 crore in October-December 2003. Net profit for the nine month period ending December 31, 2004, grew 88 per cent to Rs419.9 crore over Rs223 crore.

Net income during the first three quarters rose 19 per cent to Rs5719 crore compared to Rs4802.9 crore in the corresponding period previous fiscal.

SCI Q3 net soars 110 per cent
Mumbai: Riding on the back of excellent freight markets, Shipping Corporation of India (SCI) Ltd has reported a 110 per cent rise in its third quarter net profit. The company's net soared to Rs280.15 crore for the quarter ended December 31, 2004 compared to Rs133.23 crore for the quarter ended December 31, 2003. Total income increased to Rs992.92 crore for the quarter ended December 31, 2004 from Rs712.92 crore in the corresponding period of the previous fiscal.

The net profit for the nine months' period ended December 31, 2004 was up at Rs807.78 crore as against Rs369.85 in Q3 of the previous fiscal.

Total income for the nine month period ended December 31, 2004 stood at Rs2687.78 crore compared to Rs2149.39 crore in the corresponding period of last fiscal.

Eicher Motors Q3 net up 95 per cent
New Delhi: Eicher Motors has reported a 95 per cent jump in net profit for the third quarter of the current fiscal, at Rs20.3 crore, against Rs10.4 crore in the year-ago period.

Net sales during the October-December 2004 quarter grew 46 per cent to Rs534 crore compared to Rs366 crore in the corresponding period previous fiscal. Net profit for the first three quarters surged 147 per cent to Rs36.27 crore over Rs15 crore in April-December 2003.

Net sales during the nine-month period in the current fiscal increased 47 per cent to Rs1326 crore against Rs900 crore in the same period of last fiscal.

LIC Housing Finance Q3 net down
Mumbai: LIC Housing Finance Ltd has posted a decline in net profit at Rs 42 crore, for the third quarter of this fiscal, as against Rs45.23 crore for the same period last fiscal.

The total income from operations moved to Rs268.42 crore during the period under review from Rs252.83 crore in the corresponding period last fiscal.

GAIL India Q3 net up 64 per cent
New Delhi: Gail India Ltd declared its results for the quarter ended December 31, 2004.

The company has posted a 64 per cent jump in net profit at Rs635.28 crore for the reporting quarter as against Rs386.98 crore in the corresponding period last fiscal.

Gail India's total income has surged by 24 per cent to Rs3,614.59 crore for the period under review from Rs2,924.35 crore in the year-ago period.

Dredging Corp Q3 net dips 42.73 per cent
New Delhi: The Dredging Corporation of India Ltd has reported a 42.73 per cent decline in net profit at Rs27.31 crore for the quarter ended December 31, 2004. Last fiscal it stood at Rs47.69 crore.

The total income decreased to Rs140.80 crore for reporting quarter against Rs152.53 crore in the year-ago period, marking a loss of 7.69 per cent.

The board of directors of the Corporation have also announced an interim dividend of 40 per cent on equity shares for the financial year 2004-05.

Mascon Global Q3 net dips
Chennai: Mascon Global Ltd, has reported a net profit of Rs69 lakh on a turnover of Rs74.99 crore for the quarter ended December 2004, against a net profit of Rs1.96 crore on turnover of Rs54.46 crore for the corresponding quarter last year.

Total expenditure for the quarter was Rs61.48 crore (Rs47.91 crore). For the year ended March 31, 2004, it reported a net loss of Rs3.14 crore on turnover of Rs220.01 crore.

Mascon's board at its meeting on Monday also accepted the resignation of Dr. Nandu Thondavadi as the Managing Director. Sandy K. Chandra will assume all responsibilities of Managing Director in addition to his responsibilities as the Executive Chairman.

Geojit to issue 1:1 bonus shares
Kochi: The board of Geojit, has decided to issue bonus shares in the ratio of 1:1 subject to the necessary approvals. The company had earlier issued 1:1 bonus shares in 2000, a press release issued here has said.

Geojit has reported a marginal rise in net profit at Rs3.37 crore (Rs3.23 crore) during the third quarter. Total revenue of the company rose by 19.82 per cent to Rs13.9 crore (Rs11.6 crore).
Net profit of the first nine months of the current fiscal was Rs6.02 crore (Rs6.62 crore), while total revenue moved up by 19.5 per cent to Rs31.3 crore (Rs26.2 crore).

Income from operations of the wholly owned subsidiary, Geojit Infofin Technologies grew by 225 per cent to Rs4.23 crore (Rs1.3 crore). The net profit for the nine-month period was higher by 126 per cent at Rs61 lakh (Rs21 lakh).
Back to News Review index page