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HCL strikes India's biggest ever outsourcing deal at US$335mn
New
Delhi: HCL Technologies may have bagged India's largest
IT outsourcing deal so far. Pegged at US$335mn (Rs1,500
crore) spread over five years, it betters the previous
record of US$260mn set by Tata Consultancy Services (TCS)
for its deal with ABN Amro.
The
company, however, refused to confirm or deny the size
of the deal from British specialist electrical retailer
DSG International. The company said that the deal was
won against stiff competition from other Indian IT majors.
Industry
sources say that under the terms of the deal, DSG will
transfer its complete IT team to HCL. Besides, HCL Tech
plans to hire a minimum of 1,000 IT professionals at its
existing Indian development centres in Noida and Chennai
to service its newest clients.
According
to the terms of the deal, HCL Technologies will provide
systems development, application delivery, infrastructure
support and maintenance services to DSG International,
Europe's leading specialist electrical retailer. According
to market analysts the deal would lead to at least 25
per cent cost saving for DSG in the short to medium-term.
The
DSG Group specialises in the sale of high technology consumer
electronics, personal computers, domestic appliances,
photographic equipment, communication products and related
financial and after sales services. It has presence in
14 European countries and serves 100mn customers every
year.
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ONGC
proposes new corporate structure for itself
New
Delhi: The Oil and Natural Gas Corporation (ONGC)
has recommended a new corporate structure for itself to
the Petroleum Ministry.
"We
have suggested to the ministry of Petroleum and Natural
Gas to appoint two vice-chairmen to manage domestic and
overseas business," the ONGC chairman and managing
director, Subir Raha, said. Both the vice chairmen and
managing director would have directors responsible for
finance, exploration, projects and human resources reporting
to them, he said.
As
per the proposal submitted to Petroleum Ministry, the
ONGC Chairman will have a vice-chairman and managing director
responsible for the firm's core exploration and production
business and a similar set for its overseas businesses
(ONGC Videsh Ltd).
Further,
the company proposes to set up a corporate executive committee,
similar to a board of directors, for business planning,
resource allocation and management interface.
The
committee will comprise a chairman, two vice-chairmen
and functional directors, besides a nominee director each
from the ministries of Petroleum and Finance and six independent
directors.
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ONGC
and Shell in tie up for oil exploration
New
Delhi: In its attempts to acquire greater weightage,
even as it seeks oil and gas at a global level, the Oil
and Natural Gas Corporation (ONGC) has signed an agreement
with Royal Dutch/Shell to jointly bid for assets in India
and abroad, including the Sakhalin-II fields in Russia.
ONGC chairman Subir Raha said ONGC, which has a 20 per
cent stake in Sakhalin-I, was looking at the possibility
of picking up a stake in Sakhalin-II and tying up for
gas from the two projects to make its shipments viable.
Shell might take equity in ONGC blocks and the two firms
might also jointly bid for exploration blocks in future
options of prospecting licences in India, he added.
India has stepped up efforts to acquire energy assets
abroad to meet its growing internal demand.
Apart from jointly bidding for assets, the pact provides
for co-operation in international projects and export
of petroleum products from ONGC's Mangalore Refinery and
Petrochemicals Ltd.
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Competition
Commission of India to acquire enhanced powers
New Delhi: Mergers, demergers and takeovers in
the country will shortly come under a critical scanner
from the Competition Commission of India (CCI), with it
acquiring certain enforcement powers through modifications
in the Act.
CCI
officials also said that currently a great deal of ground
work was going on within the Commission for introducing
amendments in the Act and after it acquired complete functioning,
the Commission would ensure that there was fair competition
for all stakeholders of an open market economy within
the rules of the game.
The
new framework should allow the Commission to ensure that
cartelisation, emerging out of mergers, demergers and
takeovers, does not lead to capitalisation of larger market
size in any sector of the Indian economy for larger and
wider monetary gains, officials said.
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L&T
Q3 net up 96 pc
Mumbai: Larsen & Toubro has reported a 96 per
cent increase in net profit for the third quarter of the
current fiscal. The company said that the increase has
come about from revenues from increased orders from the
year-ago quarter, and was helped along by a one-time gain
from the sale of its glass and dairy equipment businesses.
Net
profit for the quarter amounted to Rs259.27 crore, as
against Rs132.35 crore, for the corresponding year-ago
quarter. Net revenues from operations, at Rs3,666 crore,
(Rs3,229 crore) grew by 13.5 per cent. International revenues
constituted 19 per cent of total sales, a statement from
the company said.
Other
operational income at Rs24.62 crore (Rs19.39 crore) and
other income at Rs87.34 crore (Rs60.52 crore), brought
the "total other income" to Rs111 crore against
Rs79.91 crore. Total expenditure rose by 12.6 per cent,
to Rs3,444 crore (Rs3,059 crore).
Interest
costs amounted to Rs22.49 crore (Rs14.03 crore), while
depreciation and amortisation accounted for Rs26.63 crore
(Rs21.54 crore).
Profit
before tax and before extraordinary items was recorded
at Rs289.6 crore (Rs187.03 crore). Provision for current
tax stood at Rs50.62 crore (Rs56.18 crore). Provision
for fringe benefits tax accounted for Rs5.07 crore.
During
the third quarter of this fiscal, the company said its
order bookings grew by 108 per cent, with contracts secured
amounting to Rs7,397 crore.
During
April-December 2005, order bookings at Rs16,211 crore
were higher by 80 per cent against the corresponding period
of 2004. Revenues for the three quarters at Rs10,211 crore
were higher by 14 per cent.
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Taj
GVK Hotels Q3 net up 104 pc
Hyderabad: The company has posted a growth of 68
per cent in income, 80 per cent in gross profit and 104
per cent in net profit for the third quarter of current
fiscal ended December 2005.
As
per the unaudited financial results taken on record by
the board here, the company achieved a turnover of Rs52.44
crore (Rs31.15 crore), gross profit (PBDIT) of Rs24.97
crore (Rs13.87 crore) and a net profit of Rs14 crore (Rs6.86
crore).
In
the meantime the company has announced that it has embarked
upon a major expansion programme involving an investment
outlay of Rs380 crore.
In
a press release here, the company said it is setting up
a five-star business hotel in Chennai at a cost of Rs90
crore. This project is expected to be operational by March
2007.
The
company is adding an additional 129 guest rooms at the
existing premises of Taj Krishna here, besides the construction
of service apartments and additional car parking facility
at an estimated cost of Rs120 crore.
Further,
the company proposes to undertake expansion by adding
150 guest rooms and renovate the hotel property at Taj
Residency here at a cost of Rs100 crore and convert the
hotel into a deluxe property.
Taj
GVK Hotels has also announced plans to set up a business
hotel in the prime locality of Begumpet here, consisting
of 189 rooms at a cost of Rs70 crore, which is expected
to be operational by 2008.
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NIIT
Ltd Q3 net rises 14 pc
New Delhi: NIIT Ltd has posted a 14-per cent rise
in net profit for the quarter ended December 2005 at Rs5.5
crore from Rs4.8 crore in the corresponding period last
year. For Q3, its consolidated net revenues stood at Rs105.2
crore, recording a 22 per cent year-on-year growth.
Global
system revenues were at Rs149.4 crore, representing a
13 per cent year-on-year growth.
The
Q3 operating profit increased 29 per cent to Rs11.9 crore.
There was an improvement of 63 basis points in the operating
margin.
Revenues
from China increased 36 per cent and enrolments in IT
career programmes increased 61 per cent in Q3.
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