TCS net profit up 35 pc to Rs883-cr in Q1
Mumbai: India's largest software services exporter Tata Consultancy Services has reported a 34.99 per cent rise in its consolidated net profit for the first quarter ended June 30. Net profit for the quarter stood at Rs883 crore against Rs654 crore during the corresponding quarter of the previous fiscal. The board of directors has recommended an interim dividend of Rs3 per on shares of Re1 each.

The rise in the company's bottomline was due to all round good performance across all domains of activity — financial services, telecom and retail, - as well as across its new services such as assurance, infrastructure support and consulting, said S. Ramadorai, CEO and managing director, TCS, told the press here on Tuesday. Income from operations stood at Rs4,227 crore (Rs2,890 crore), up by over 46 per cent from a year ago. Foreign exchange fluctuations plumped up the topline by Rs40 crore, said S. Mahalingam, chief financial officer.

Profit before interest, depreciation and tax amounted to Rs1,070 crore, rising over 30 per cent from a year ago. EBITDA margins, however, declined, standing at 26.75 per cent during the quarter, down from 28.28 per cent a year ago.

The company's employee attrition rate for the 12 months ended June 30, 2006, stood at 10.6 per cent. The attrition rate for the 12 months ended March 31, 2006, was 9.9 per cent.

The company hired 7,095 employees during the first quarter of this fiscal, making for a net addition of 4,698 employees. As at the end of the quarter, TCS' employee strength was 71,190.
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Ranbaxy acquires GSK's generic drug unit in Spain
New Delhi: Ranbaxy Laboratories, the country's largest drug maker, has acquired GlaxoSmithKline Plc's (GSK) Mundogen generic drug unit in Spain. The company did nit reveal the acquisition price. The acquisition was done through Ranbaxy's Spanish subsidiary Laboratorios Ranbaxy S.L.

The company said it is planning to expand its range of 40 drugs in Spain's 600-million ($752 million) generic drug market. The CEO and MD of Ranbaxy, Malvinder Mohan Singh, said: "The Mundogen generic business acquisition from GSK is in line with our M&A strategy to focus on the EU markets where we continue to see growth opportunities. The acquisition will further consolidate our presence in the rapidly growing Spanish generic market and strengthen our product portfolio."

Ranbaxy's Spanish operation was incorporated in February 2004.
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Ashok Leyland, ANG Auto in Rs1,800-cr tractor trailer deal
New Delhi: Ashok Leyland has placed a five-year order worth up to Rs1,800 crore for tractor trailers with ANG Auto Ltd, an auto component manufacturing company. The order would be executed by ANG's subsidiary, ANG Auto Tech, which in turn would invest Rs61 crore for setting up a 6,000 unit annual capacity for Ashok Leyland at its Sitarganj unit in Uttaranchal expected to be operational by October.

ANG Auto will manufacture and supply 6,000 tractor trailer units annually to Ashok Leyland for the next five years and the order size is between Rs1,500 crore and Rs1,800 crore said company officials at Ashok Leyland. Ashok Leyland may also look at picking up a stake in the ANG subsidiary later. ANG Auto had revenues of Rs57 crore last fiscal with as much as 85 per cent through overseas sales. The company will hold around 75 per cent equity in the new subsidiary and manufacture the trailers in collaboration with FUWA Engineering of China, a major manufacturer of axles.
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Thermax UK subsidiary exits loss making heaters, boilers biz
Pune: Thermax' UK subsidiary ME Engineering has decided to exit the packaged boilers and heaters business which was continuing to make losses. The company is also winding up operations of Thermax Energy Performance Services (TEPS), a joint venture with EPS ASIA, operating in the energy audit space and has foreclosed all major contracts with a view to mitigating its losses, according to Thermax's annual report for 2005-06.
The decision would help reallocate resources into the core waste heat recovery and related business to create long-term sustainability, said the report. The decision to wind up TEPS was based on the belief that the business was unlikely to turn around since the business model did not find acceptance in the market and adequate technical/financial support was not forthcoming from the joint venture partner.

Meanwhile, Thermax Europe, the wholly owned UK-based subsidiary which leads Thermax's absorption chiller business in Europe, saw a fall in turnover to GBP 1.8 million from 1.9 million in the previous financial year. The company is also revisiting its strategy and business model for the Brazilian market where high gas prices and steep import duties have led to demand being depressed. Thermax Inc, US, another wholly owned subsidiary, which leads its business in North and South America, saw total revenues rise to $ 12 million from $ 8.2 million the previous year. The company's wholly owned subsidiary, Thermax Engineering Construction Co, which executes engineering construction projects mainly of a captive nature, has seen revenues rise over 63 per cent to Rs74.1 crore from Rs45.40 crore. Profit after tax went up from Rs0.9 crore in the previous year to Rs1.3 crore, the annual report said.
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Cambridge University Press acquires 51 per cent stake in Foundation Books
New Delhi: Cambridge University Press (CUP) has entered India by acquiring 51 per cent stake in Foundation Books together with its divisions Foundation Media and Foundation e-Learning for about $6 million. The new company will be called Cambridge University Press India Pvt Ltd.

CUP publishes around 2,500 new titles and 200 journals every year.
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Deepak Fertilisers to set up ammonium nitrate unit in Orissa
Pune: Pune-based Deepak Fertilisers and Petrochemicals Corporation (DFPCL) would set up its greenfield integrated complex for nitric acid and ammonium nitrate in Paradip in Orissa.
S.C. Mehta, vice-chairman and managing director, DFPCL, said the land acquisition is in process and the company is looking at about 50 acres of land for setting up the plant. The plant would have a production capacity of three lakh tonne per annum. Of this, about one lakh tonnes would be set aside for exports and would cater to the South-East Asian market.

The company's 100 per cent subsidiary Smartchem Technologies also has two plants with a total capacity of 50,000 tonnes in Andhra Pradesh and Gujarat.
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Coromandel Fert net profit up 25 pc on higher sales
Hyderabad: The Rs1,875-crore Muruguppa group company Coromandel Fertilisers (CFL), has reported a growth of 184.8 per cent in sales turnover, 75 per cent in gross profit and 25.2 per cent in net profit for the first quarter of current fiscal ended June 30. As per the unaudited financial results approved by the CFL board here on Tuesday, the company posted a sales turnover of Rs356.16 crore for the quarter against Rs125.89 crore in the corresponding quarter of the previous fiscal, gross profit of Rs35.9 crore (Rs20.51 crore) and a net profit of Rs12.37 crore (Rs9.88 crore). This translates into an EPS of Rs0.97 (Rs0.78) on an equity base of Rs25.41 crore.

The company has attributed the all-round improvement in the performance mainly to increased volume of production, sales and improved productivity.

During the quarter under review, the company acquired 50.72 per cent stake in Ficom Organics Ltd, Ankleshwar. Consequently, Ficom Organics has become a subsidiary of the company effective May 30. In a press release here, the company said this acquisition would facilitate in consolidating its pesticides business.
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Blue Star in strategic alliance with Italian co
Mumbai: Blue Star has entered into a strategic alliance with Italian company - ISA - for providing a range of supermarket and food refrigeration solutions. As part of the alliance, Blue Star will be responsible for sales, installation and after sales service of the commercial refrigeration products, co-branded as Blue Star ISA.
T.G.S. Babu, executive director, Blue Star, addressing the press said, "Organised retail in the form of supermarkets and convenience stores will bring about a massive transformation in the way food products are procured, stored and sold in India. With huge investments announced by corporates such as Reliance, Fortune, Bhartis and Tatas, Blue Star is gearing up to tackle the emerging supermarket opportunities.''

He said the potential of the supermarket refrigeration business has been estimated at nearly Rs100 crore, and the company expects the industry to ramp up in the next few years. Italy based ISA manufactures retail refrigeration products and its customers include leading supermarkets in Europe such as Carrefour, Spar and Ahold.

Initially, the ISA products will be imported and sold under the Blue Star ISA brand but subsequently there are plans to manufacture the range in India.

Blue Star is also looking at forging alliances with European players in the area of bulk storages.
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Wipro claims damages of €18m from Beckman
Bangalore: Wipro Technologies has claimed € 18 million from Beckman Coulter India in damages according to the latter's filing with the Securities and Exchange Commission.

According to Wipro, Beckman Coulter India went against the contract it signed with Wipro and hired a number of its current and former employees. Wipro was the former distributor for Beckman Coulter India, a provider of instrument systems and products that simplify and automate processes in life-science and clinical labs.

Wipro has expressed that the poached employees had years of industry experience, and the loss would not be easily gotten over.
The Delhi High Court found the Indian unit of Beckman guilty for violating the contract, which had a non-solicitation clause, and advised Wipro to demand a sum of €18 million as damages.

It has now formally initiated arbitration against Beckman Coulter International SA, which is the Beckman Coulter unit that entered the original contract with it. The arbitration would take place in Switzerland.
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Hexaware plans expansion
Mumbai: Software firm Hexaware Technologies plans to spend up to Rs90 crore ($19 million) in expansion over six months and $20 million to $40 million on acquisitions, the company's chairman Atul Nishar said. The company has identified acquisition targets in North America and Europe he said.

Hexaware is planning to buy a company with annual revenues of $20 million to $30 million and expertise in serving transport, logistics and financial services segments.

Earlier, Hexaware reported a 53 percent rise in the net profit to Rs29.77 crore in the quarter to June while gross revenue rose 25.3 per cent to Rs21 crore.

Nishar said the expansion included setting up a centre in Europe, which contributed more than a fourth of its revenue. The company was considering Poland, Hungary and the Czech Republic to locate the centre, he added.

The company also planned to set up a 3,000-seat software centre in the southern city of Chennai and expand its capacity to 11,000 seats later. It would invest Rs35 crore in this centre.
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