Satyam net profit up 38 pc at Rs.284.65-cr
Hyderabad: Satyam Computer Services has registered revenues of Rs4,793 crore and net profit of 981.9 crore for the financial year 2005-06 a growth of 36.12 per cent in revenue and 38 per cent in net respectively over fiscal 2004-05. The company has announced a bonus share of 1:1 (subject to shareholders' approval) and a final dividend of 250 per cent (total for the year 350 per cent).

During the fourth quarter ended March 31, 2006, the company's software revenues stood at Rs1,314 crore and net profit at Rs284.65 crore, showing a growth of 35.21 per cent in revenue and 38 per cent on net profit over the corresponding quarter last year.

For the year 2005-06, if other income is considered, Satyam's total revenues touched Rs5,012 crore with a net profit of Rs1,239 crore.

The company now has cash reserves of Rs4,268.75 crore (close to $1 billion).

Announcing the results at a press conference, the chairman of Satyam, B. Ramalinga Raju, said "it is with a sense of great pride and joy that I report Satyam's entry into the billion-dollar club. Achieving this significant landmark has been made possible by the support received from our customers and investors and the hard work of our associates."

Satyam has come up with a revenue guidance of Rs6,000-6,100 crore for the financial year 2006-2007, a growth of 25.2 per cent to 27.3 per cent that could potentially witness EPS of Rs36-Rs36.6.

Raju said," To some extent, the profitability of the company would be impacted due to the hike in salaries." For those onsite, the hike would be 6 per cent and offshore employees it would be 16 per cent. The company has announced a restricted stock option scheme. This, along with the salary hike, is aimed at bringing down the attrition rate from about 18-19 per cent to about 12 per cent.
The company shares witnessed volatile trading, closing lower at Rs810.20 at the NSE as against the previous close of Rs871.35, hitting a high of Rs917.80.

Satyam Computer Services will add about 10,000 to 12,000 employees during 2006-2007 to fuel growth and is working on a better compensation package for its employees, including a restricted stock option scheme to be launched on October 1, 2006.
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ONGC Videsh signs agreement with Japan Oil
New Delhi: ONGC Videsh (OVL) and Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed a Memorandum of Understanding for co-operation in the hydrocarbon sector. The MoU was signed by the JOGMEC President, Mr Isao Kakefuda, and the OVL Managing Director, Mr R.S. Butola.

According to ONGC, "The MoU provides for mutual collaboration for business opportunities in exploration and production and R&D activities relevant to the hydrocarbon sector. It provides a framework for accelerating and widening cooperation in hydrocarbon sector including unconventional fuels, besides collaboration in E&P sector."

The concept of the MoU is based upon the joint statement on mutual cooperation in the field of energy between Japan and India, executed in last September by the Ministry of Economy, Trade and Industry of Japan and the Ministry of Petroleum and Natural Gas of India.
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Monsanto, AP Govt gear up for battle over royalty payment
New Delhi: Mahyco-Monsanto Biotechnology Company is gearing up for confrontation with the Andhra Pradesh Government as the state government has accused it of collecting `exorbitant' royalty for Bt cotton.

The AP Government has objected to a certain pricing policy adopted by Monsanto. For every 450 gm of seeds sold, Monsanto charges Rs1,200 as `trait' charges (a form of royalty charges) from its Indian licensees, according to the Andhra Pradesh Government.

During a hearing at the Monopolies and Restrictive Trade Practices Commission (MRTPC), Monsanto said that the `trait value' is a patent right. And, that intellectual property right does not fall under the ambit of the Commission.

Monsanto said that the price for cotton in the markets was uniform irrespective of the kind of seeds used for production. Since there was no price differentiation, there should not be a case for monopolistic trade practice.
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Kinetic expects Rs.180-cr revenues from `Blaze'
Bangalore: Kinetic Motor Company expects to sell around 40,000 units of newly launched scooter Blaze during 2005-06 translating into revenues of between Rs150 crore to Rs180 crore.

Blaze is the first of the six scooters from the Italjet range, which will be launched in India in a phased manner. The second scooter in the series will be launched in July. Last year, Kinetic bought rights for manufacture from Italjet Moto for launch of seven scooters.

These scooters, which have been designed by the Italian designer, Leopoldo Tartarini will also be exported to other countries. The ticker price of Blaze when it was launched in Europe around 2000 was about $4,000. In India, it is available at Rs49,990 ex-showroom.
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Toyota Kirloskar's operations achieve profitability
Bangalore: Toyota Motor Corporation's Indian operations have become profitable after wiping out the entire accumulated losses estimated to be between Rs200 crore and Rs300 crore of its joint venture, Toyota Kirloskar. Sources said Toyota had set a target of wiping out accumulated losses within the first six years of the joint venture's operations in India.

The company has posted a small profit of around Rs20 crore. Toyota Kirloskar has also posted its highest ever turnover so far at Rs 4,000 crore, an increase of 26 per cent over the previous year. In volumes the company has posted an 8 per cent growth selling a total of 46,348 vehicles including 36,547 Innovas and 8,866 units of Corolla in 2005-06.

The total investment in the joint venture is around Rs1,200 crore in India.
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Radio Mirchi turnover up by 58 per cent
Mumbai: Entertainment Network (ENIL) in its audited annual results for the year ended March 31, '06 has declared a gross turnover increase of 57.7 per cent to Rs1,201.9m in FY05-FY06 from Rs762.2m in FY04-FY05. Profit after tax (PAT) stood at Rs294.6m compared to a net loss of Rs179.2m in FY04-FY05. Earning before interest, depreciation, tax and amortisation excluding licence fee for the year was Rs445.7m, a rise of 61.5 per cent over the previous year.

Net profit for the fourth quarter ended March '06 stood at Rs54.9m, company accounted annual amortisation of migration fee of Rs81.5m in fourth quarter.

Since the company is publishing results for the first time post its IPO in February '06, the fourth quarter numbers for the previous year are not available and not published.

The company has paid Rs1,301m to acquire the 25 new frequencies under the Phase II Policy of private FM sector. With effect from April 1, '05, the company has exercised the option to migrate its existing seven licenses from Phase I of fixed licenses regime to Phase II of revenue sharing regime by payment of migration fees aggregating Rs81.5m. The company reported consolidated net profit of Rs310.5m.

Consolidated total income was Rs1,406.4m and earning before interest, depreciation, tax and amortisation was Rs407.6m. Consolidated results include results of Times Innovative Media (TIMPL), a wholly owned subsidiary, for a period of 5 months. TIMPL was incorporated on October 26, '05. TIMPL acquired Event Management (3600) and Out of Home Media (Times OOH) business from Time Innovative Media (TIML).
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Private couriers likely to go to court against postal dept Bill
New Delhi: Courier companies are planning to go to the courts against the Indian Post Office (amendment) Bill, '06 which would restrict the operations of courier companies and impose USO fees on them. Organised under Express Industry Council of India (EICI) the Indian and foreign courier companies are meeting on Monday to chalk out their strategy which includes seeking legal opinion on the constitutional validity of such a bill.

The Bill has a provision whereby delivery of documents and letters below the 300 gms will become a monopoly of the postal department. The Bill also seeks to impose Universal Service Obligation (USO) on the private courier companies under which courier companies (with annual turnover of Rs25 lakh or more) will have to part with 10 per cent of their turnover with the government for meeting USO.

The draft bill, which aims to amend the Indian Post Office Act, 1898, has been put-up by Department of Post (DoP) on its website for comments from general public. The courier companies are opposed to both these provisions. They say that while the first provision will wipe out the revenue base of the Rs4300 crore industry, the second will make the operations unviable.
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Mahindra Gesco plans more SEZs
Mumbai: Mahindra Gesco, the realty arm of the Mahindra group, is planning to launch four more SEZs across the country. The company recently signed a a memorandum of understanding with the Maharashtra government for the 3,000 acre multi-product Pune special economic zone (SEZ), The company has already set up SEZs in Chennai and Jaipur.

Three of the new SEZs will be product specific SEZs, while the fourth will be a multi-product SEZ located in eastern India. The product specific SEZs will be for information technology and apparel industries and are expected to come up by mid-2007. However, the fourth SEZ for the food processing industry is still in a nascent stage.

The company is looking at different locations for these SEZs and is evaluating sites in Orissa, Andhra Pradesh and West Bengal for the multi-product SEZ. For the apparel SEZ it is considering one in the Delhi area and another in the Bangalore-Tirupur belt. The IT SEZ is likely to come up in a non-metro location said a company official.
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Tata ties up with Exide for Rs.1 lakh car, world truck
Mumbai: Tata Motors has signed an agreement with Exide Industries according to which the latter will be the provider of batteries for Tata Motors' Rs1 lakh car and "world truck" projects.

SK Mittal, director, R&D, Exide Industries said, "The lead-acid battery for the small car would be small in size and cost competitive, he said. "Similarly, the battery for the global truck is going to be contemporary to world standards," he added.
Exide has tied up with Japanese battery makers Shinobe, a Hitachi company, and Furukawa for technology.

The global truck is likely to be ready for production by 2008-09. Exide is carrying out research to make more powerful and yet compact, light weight, high performance and leak resistant batteries.

The company commands a 33 per cent market share in the overall domestic auto battery market, 90 per cent share in the automotive original equipment market and 50 per cent share in the industrial battery market.

Exide is currently increasing its manufacturing capacity of automotive batteries to 6 million from the present 4.8 million.
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L&T infra arm to offload 21.6 per cent stake
Mumbai: L&T-Infrastructure Development Projects (L&T-IDPL) is planning to divest 21.6 per cent stake to Silver Peak Investments (Mauritius) and an India Development Fund-led consortium for Rs 550 crore. Silver Peak Investments (Mauritius) is a wholly-owned subsidiary of JP Morgan Chase & Co and India Development Fund is a fund managed by IDFC Private Equity.

L&T-IDPL portfolio includes more than twenty projects in operation and construction with a further six projects under development.

JP Morgan, through its Asian Special Situations Group, invests across a range of industries in the capital structure of companies in various phases of their strategy and growth.

IDFC Private Equity manages two funds - India Development Fund and IDFC Private Equity Fund II - with a combined corpus of $620 million (Rs2,800 crore).
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