Wipro posts better than expected results; dividend at Rs.5 per share
Bangalore: Software behemoth Wipro Ltd has posted better-than-expected earnings for the fourth quarter ended March 31, 2006. Net profits for the fourth quarter ended March 2006 was up by 43 per cent to Rs 618 crore, while revenues were up by 35 per cent to Rs 3,113 crore over the corresponding last quarter.

Sequentially, the net profits were up 14 per cent and revenues grew by 13 per cent over the previous quarter. Net profits for the financial year 2006 grew by 27 per cent to Rs 2,067 crore on revenues of Rs 10,626 crore compared to last year's net of Rs 1,628.5 crore on revenues of Rs 8169.8 crore. While the company's domestic revenues crossed the Rs 10,000-crore mark for the financial year 2006 its global revenues crossed the $2-billion mark as its global IT business grew by 33 per cent, while domestic business was up 22 per cent.

The company announced a cash dividend of Rs 5 per share (250 per cent on par value of Rs 2 each).

Post-results, Wipro stocks edged up on the BSE to an intra-day high of Rs 598 before closing at Rs 559, a decline of 1.80 per cent over previous close. Analysts termed the performance as pretty strong and above market expectations but said the first quarter financial year 2007 revenue guidance was `muted'.
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Goodlass Nerolac becomes Kansai Nerolac Paints
Mumbai: Goodlass Nerolac Paints' board of directors has approved a proposal for a change in its name to Kansai Nerolac Paints. Kansai Paints Company holds 64.52 per cent stake in Goodlass Nerolac Paints. The company's board has also approved the scheme of merger of the company with Polycoat Powders Ltd. The share exchange ratio would be 461 shares of Goodlass for 1,000 shares of Polycoat Powders. KPMG India is the consultant to the merger. The merger is subject to the required statutory approvals.
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HPC to upgrade technology
Kolkata: State-owned Hindustan Paper Corporation (HPC) is implementing the Rs 660-crore modernisation and technical upgradation plans in its two mills in Assam. The modernisation is to be completed latest by 2011-12. HPC is also committed to investing in two more projects of which one will be a greenfield project in Uttar Pradesh with an annual production capacity of 3,00,000 tonnes of writing and printing paper. This project is estimated to cost Rs 3,700 crore.

The other project is the revival of Nagaland Paper & Pulp Company Ltd's (NPPC) mill at Tuli in Nagaland. NPPC's annual capacity will be doubled to 66,000 tonnes from 33,000 tonnes.

The chairman of HPC, Raji Philip, said that the capacity of its Kerala based wholly owned Hindustan Newsprint Ltd (HNL) would be raised to 2,70,000 tonnes of newsprint from 1,00,000 tonnes, entailing an investment of about Rs 700 crore.

He said that HPC as a group company has posted a profit before tax (PBT) of Rs 105 crore during the fiscal 2005-06 on a record sales turnover of about Rs 1,020 crore, while it aims at a sales turnover of Rs 1,177 crore and a PBT of Rs 150 crore in 2006-07, based on a production mandate of 333,000 tonnes, which consists of 218,000 tonnes of printing and writing paper and 115,000 tonnes of newsprint.

HPC has plans to achieve a production target of 8,00,000 tonnes and a sales turnover of about Rs 3,000 crore by 2010-11.
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Reliance Energy reports 14.5 pc rise in Q4 net profit
Mumbai: Reliance Energy has reported a 14.5 per cent increase in net profit for the fourth quarter ended March 31, 2006. The company's net profit rose to Rs 169.47 crore, up from Rs 147.93 crore in the fourth quarter of the previous fiscal. Net sales of electricity rose by 17.7 per cent to Rs 771 crore, up from Rs 654.7 crore.

However, total revenues dipped by dipped by 22.9 per cent to Rs 1,224.45 crore (Rs 1,589 crore) due to income from EPC and contracts falling to Rs 267 crore, down from Rs 812.34 crore.

The company's annual net profit rose by 24.9 per cent to Rs 650 crore (Rs 520.3 crore). Total income for the year was marginally higher at Rs 4,608 crore (Rs 4,592 crore).

The REL stock lost Rs 3.10 on the BSE on Wednesday, to close at Rs 634.65, losing 0.49 per cent over the day.
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Suzuki to sell five lakh two wheelers in initial phase
Bangalore: Suzuki Motorcycle India said it plans to sell 5 lakh two-wheelers during the initial phase of its operations. Suzuki has launched the 125 cc Heat and its upgraded version, Zeus.

Suzuki has over 100 two-wheeler models in its stable. Company officials said Suzuki plans to launch scooters at a later date.

Suzuki's department head for sales and marketing, Deepak Pandey said India was the fastest growing market for two-wheelers after China and during 2005-06, nearly 7 million two-wheelers were sold and by 2010, sales are expected to cross 10 million.

Suzuki has so far opened 30 dealerships in the country and by May end it plans to open 40 more.

The Japanese motorcycle maker has acquired 37 acres near Delhi for its factory. The current capacity of the plant is 1.2 lakh units a year. The capacity can be expanded to 5 lakh units a year.
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HCL Tech net rises 22.7 per cent
New Delhi: HCL Technologies has registered a 22.7 per cent increase in consolidated net income for the third quarter ended March 2006 to Rs 192.9 crore compared to Rs 157.3 crore in the year-ago period, although the year-on year growth fell short of market expectations. As per US GAAP, HCL Technologies' consolidated revenues were up 30.7 per cent to Rs 1,122 crore (about $250 million).

During the quarter, the EBIDTA margin stood at 22.3 per cent against 22.8 per cent in the corresponding period of the previous year and 22.5 per cent in second quarter of the current fiscal.

The software segment contributed revenues to the tune of Rs 834.8 crore during the third quarter of the FY06, an increase of 28.6 per cent against Rs 649.4 crore in the same period previous year.

The BPO revenues rose 21.3 per cent to Rs 156.5 crore up from Rs 129 crore in the year-ago period, while the revenues from infrastructure management were up 58 per cent to Rs 130.7 crore.
During the quarter, the company divested its entire portfolio of investments held since 2000 in some venture capital funds. These investments, which had a current carrying value of $18.27 million, were sold for a gross consideration of $20.38 million, resulting in a gain of $1.50 million.

HCL Tech shares closed at Rs 602.30 per share on the BSE, compared to Rs 651.15 per share in the previous close.
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3i Infotech net up 79 per cent
Bangalore: 3i Infotech has reported a 133 per cent increase in its net profit for the fourth quarter 78.8 per cent increase for the year ended March 31, 2006. According to V. Srinivasan, managing director and CEO at 3i Infotech the growth was due to aggressive sales and marketing, and cost control.

The company's guidance for the next fiscal anticipates revenue growth of 25-30 per cent and earnings-per-share between Rs 13 and Rs 13.50. Net profit leapt to Rs 17.51 crore in Q4-06, from Rs 7.5 crore reported for the same year-ago quarter. Total income for the quarter grew 45.4 per cent to Rs 216 crore, up from Rs 148.5 crore. Profit before interest depreciation and taxation amounted to Rs 27.1 crore (Rs 15.1 crore). Revenue for the year was Rs 424 crore, up 45 per cent over the previous year (Rs 292 crore).

Profit before interest depreciation and tax grew 81 per cent to Rs 92 million, representing a PBIDT margin of 21.7 per cent, as against 17.4 per cent for the previous year.

Profit after tax, at Rs 577 million, represented a net margin of 13.6 per cent, as against 11 per cent in the previous year.
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VSNL to offer broadband services
New Delhi: Videsh Sanchar Nigam is making investments for rolling out broadband services for the retail segment. The company said it is also foraying in a big way in managed services segment and was also looking to expand its portfolio in the broadcasting sector.

According to N Srinath, executive director, VSNL speaking at a press conference here, VSNL is also planning to increase its presence in the international telecom market in a bid to compensate for the loss in market share in the Indian International long-distance segment over the last two years. The company expects more than 50 per cent of its revenues from international business and 25 per cent of its employees are outside India," he said. VSNL has already partnered 2,000 cable service providers to provide the last mile link for its broadband services.

VSNL owns 26 per cent stake in South African telecom operator SNO. The project cost is estimated to be $ 1billion spread over a period of four years. SNO has the licence to provide all except mobile telecom services in that country.

He said that VSNL would also look to expand its portfolio in the broadcasting segment.
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Infotech Enterprises reports 86 per cent rise in Q4 net: announces 1:2 bonus
Hyderabad: Infotech Enterprises has reported revenues of Rs 107.8 crore and net profit of Rs 16.60 crore for the fourth quarter ended March 2006 against Rs 65.17 crore and Rs 8.92 crore for the corresponding previous quarter respectively.

The company has announced a stock split and a bonus offer in the ratio of one share for every two held now. The Infotech board has recommended a dividend of 22.5 per cent pre-bonus and pre-split.

For the fiscal ended March 2006, revenues stood at Rs 362.50 crore (Rs 257.13 crore) and net profit at Rs 50.32 crore (Rs 27.38 crore).

Each Rs 10 share would be split into two shares of Rs 5 each. Alongside, Infotech has decided to reward its shareholders with a bonus offer of one share for every two shares held.

The company added 1,546 employees during the fiscal and currently has 3,978 people on its rolls across various locations. It expects to induct about 1,400 people during the current fiscal.
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Reliance finds oil in Krishna basin
New Delhi: Reliance Industries has found oil in deep waters in the D-6 block of the Krishna-Godavari (KG) basin — the first in the basin--and is expected to formally announce its first big oil find in the KG basin within a month. Oil was struck at 1,800 meters water depth in the MA-1 well, which has been drilled, tested and capped. However, the company has not made a formal announcement since the find is yet to be tested or certified by the DGH or any other independent agency.

The oil find is estimated to have reserves of 1bn barrels, which could translate to 60m tonnes. At a 45 per cent recovery rate, the reserves could lead to revenues of $1.8bn every year for 15 years, considering an oil price of $60/bbl.

Global oil analysts have predicted firm oil prices in the medium term.
In 2002 RIL found the world's largest gas reserves and now has established reserves of 14 trillion cubic feet in this area.

RIL has contracted two rigs, which are expected to arrive in September this year. However, these will be used for the development of the gas field. The company has committed to gas deliveries by the end of '08.
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