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FinXpress Company in Focus:
BHEL
3
StartUp in focus:
Voicetap
4
Markets this Week 5
News of the Week 6
CAN YOU SOLVE IT? 8
JULY 24, 2011
Institute Of Management Technology
Ghaziabad
Sources of Data:
HDFC securities
Economic Times
The Hindu
Rediff Money
MoneyControl.com
Financial Express
Inside this issue:
Will the Bull
run continue?
Empowering India
Knowledge at
your fingertips
Page 2 FinXpress
Greetings IMT
FinNiche presents FinXpress - the much awaited and unique intra-school weekly publication. Useful to all finance enthusiasts,
this week’s digest covers news articles, opinions and analyses from more than 10 media sources known and respected in the
world of finance, including InvestorWords.com, EquityMaster.com, Economic Times, Trak.In Business Blog, Wall Street
Journal, The Economist, Rediff Money, MoneyControl.com, Financial Express. We offer a snapshot of important national and
international news from across the various domains of finance. We also bring to you the complete information about the top
company and an innovative start-up. The market trends and the stock market ups and downs are also contained in the same.
Finally, we have the fun section which includes cartoons and quizzes and also an opportunity to get identified on the campus
for the first five correct entries.
FinNiche, this week is back with interesting and mind boggling events. We bring back Survivor III, the most exciting and
challenging intra-event, this time filled with series of games testing your acuity, perspicacity and mental prowess. It consists
of 2 rounds which are Kryptex, an online game followed by the Checkered Masquerade. So, enjoy the challenge!
We constantly thrive to excel and make FinXpress more readable and lucid. Therefore, your suggestions are always welcome
as we consider them to be extremely valuable.
Team FinNiche
Page 2 FinXpress
About BHEL :
Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. It is the 12th largest power equipment manufacturer in the world. BHEL was established more than 40 years ago. It is one of India's nine largest PSUs, known as the Navratnas or 'the nine jewels'. BHEL is ranked ninth in the ten most innovative companies in the world by the US magazine Forbes' latest edition.
BHEL is a public sector company which has given amazing returns to investors. BHEL's operations are organized around three business sectors, namely Power, Industry - including Transmission, Transportation & Renewable Energy and Overseas Business. 74% of the total power generated in India is produced by equipment manufactured by BHEL.
Company Profile :
BHEL announced its fourth quarter results for FY11. The company’s profit came at ` 6, 053 cr versus provisional of ` 6, 021 cr. The company clocked consolidated turnover of ` 43, 691 cr versus provisional of ` 43, 451 cr. BHEL registered a net profit of ` 2, 798 cr versus provisional of ` 2, 807.8 cr in fourth quarter. The company’s net sales stood at ` 18, 623 cr versus provisional of ` 18, 694.5 cr.
Competitive advantage :
Quality is BHEL's competitive advantage; most boilers run with Plant Load Factor of 90%. Steps have been taken to reduce cycle time of delivery and capacity modernization. All processes have been made highly productive and more automated. Some of the customers of Chinese companies are coming back to BHEL. BHEL is able to fulfill its delivery commitment in 34 months for sub-critical boilers and 42 months for super-critical sets. In case of repeat orders in a multiple project, subsequent sets are delivered in gaps of two months.
Challenges :
So far, BHEL has an edge in manufacture of sub-critical boiler sets with proven experience and standardized design. The competitors have changed. Today, the competition is at a multi-national level and there are new technologies.
Customers expect funding either through loans or equity. BHEL has joint ventures with utilities like State Electricity Boards and other Public Sector Undertakings, but cannot fund new private sector companies whose professional commitment is not proven.
BHEL’s FPO stint :
BHEL original IPO started from year 2000 with price of 64, after 11 years the company stock price has turned from 64 to 3000 current price, as the stock has been split up once, which means a return of 5000% in 11 years.
The Company is going to offload 5% of its stake through FPO (Follow-on Public Offer) this financial year. The Government aims to raise a fund of ` 95, 000 cr between 2011-12 and 2013-14. The disinvestment target set by government for the last fiscal year is ` 40, 000 cr but the actual figure achieved is around ` 22, 700 cr. Government planned this FPO to raise money via public offering.
The recent FPOs and IPOs of SAIL, ONGC, Coal India and other PSU giants were also part of the same strategy. The amount raised in this fiscal year is ` 1, 100cr from the 5% disinvestment in Power Finance Corporation. Department of Disinvestment has finalized 4 merchant bankers to manage the FPO. The list goes as: ICICI Securities, DSP Merrill Lynch, Morgan Stanley and Kotak Mahindra Capital.
Though, there are certain speculations regarding disinvestment plan of BHEL, it was not on this year’s list for divestment. The hurried announcements of divestment might not be taken well by the market.
Page 3 FinXpress
Company in Focus : Bharat Heavy Electricals Limited (BHEL)
Page 4 FinXpress
We have service providers like Just Dial these days which
provide us with the phone numbers of people to whom we can
call to get our query resolved. Sometimes, we find ourselves in
a position where we want to connect with someone on a
particular topic but don't know how to or where to find them.
The way we connect today is constrained by the knowledge of phone numbers or the means of getting the numbers
(internet, directory services etc. and our circle of friends and family). With 600 million mobile subscribers (and growing)
across India, it seems a bit of an irony that you are able to connect with only 500 of them at any time.
The Concept
Voicetap was founded in March 2009 by Mrigank Tripathi , Devanshu Pandey and Vivek Khandelwal. Life is a series of
topics. We talk everyday on particular topics. Be it the topic of beer or the topic of nuclear power. Topics, while a small
word, are what we engage in day in and day out. Inevitably we find ourselves in a position where we want to connect with
someone on a particular topic, but don't know how to or where to find them. Thus, evolved the concept of Voicetap. You
can talk directly with someone on a particular topic without you having to know the person or his phone number. Till now,
you could only connect on the basis of a phone number - now you can connect with relevant people on the topics of your
choice.
How do they do it?
Voicetap helps you speak directly with a relevant person over the phone on the topic of your choice, at the time of your
choice and from the place of your choice. If you are looking to speak to someone on a particular topic, just follow the
simple 3 step process as depicted in the figure. The only requirement to use Voicetap is a phone which can send an SMS
and can make calls.
So how do they make money?
Voicetap is working with leading hospitals, financial services
companies and in the education and career space.
The reason such companies are involved in this business
relationship with Voicetap is that they get a chance to engage
with potential customers. The corporate directly get a chance
to get in touch with potential customers and establish their
credibility, solve, problems, upcell or cross sell.
It also helps in increasing the brand awareness amongst the
people. The direct channel of communication helps drive that
company’s brand values to the consumers, thereby resulting
in an increased of the company’s product/services by the
consumers.
Page 4 FinXpress
StartUp in Focus : Voicetap
Page 5 FinXpress
Markets this week
The markets rose in two out of five trading sessions in the week, with most of the gains coming on Friday, July 22.The Sensex rose 160.38 points or 0.86% to settle at 18, 722.30 in the week, while Nifty gained 52.85 points to close at 5633.95.
Telecom giant Bharti Airtel was the highest gainer this week gaining nearly 3.72% followed by Infosys, which gained around 3%.Crompton Greaves and GTL were amongst the highest losers with Crompton Greaves falling by almost 25% during the week.
Most of the sectorial indices ended in green with the top gainers being FMCG, Metals and Realty rising by 1.9%, 1.7% and 0.8% respectively. The losers were Consumer Durables, Healthcare, Auto and Power falling by 1.7%, 1.5%, 1.5% and 1.1% respectively.
Meanwhile, the prices of agricultural commodities have surged in the past three weeks, due to either a delay or slow progress of the monsoon. According to data compiled by Kotak Economic Research, rainfall data till July 16 indicate weekly precipitation has indeed slowed after June’s strong start. In these three weeks, coriander futures are up 34 per cent and guar gum and seeds by 20%. Jeera and oilseeds were the other major gainers. In the international markets, gold climbed above $1, 600 an ounce, while crude oil prices rose to settle just short of $100 a barrel.
Markets across the globe rallied on Friday, after the European Union took a bold step to give a second bailout, an additional $157 billion and a contribution from private sector bond holders for Greece. The Nikkei gained 1.6% for the week, the Hang Seng added 2.6%, but the Shanghai Composite Index finished the week with a 1.8% loss as manufacturing activity slowed.
In the US Markets, the S&P 500 Index rose 0.1% to close at 1, 345.02 for a weekly gain of 2.2%, and the Dow Jones Industrial Average closed down 0.3% to 12, 681.16 for a weekly gain of 1.6% while the Nasdaq composite index rose 24.40 points, or 0.9 percent, to 2, 858.83 gaining nearly 2% for the week.
For the second day in a row crude topped $100-a-barel in intraday trading but couldn't hold triple digits at the settlement amid lingering doubts about the strength of near-term oil demand in the U.S., the world's largest oil consumer.
HDFC bank net profit up by
34 % to ` 1, 085 crores
India’s second largest private sector lender - HDFC bank’s first quarter net profit rose more than 34% to ` 1, 085 crore compared to the same period last year. Net interest income in the April-June period jumped by 18.6% year-on-year to ` 2, 848 crore from ` 2, 401 crore a year back. Net interest margin (NIM) sequentially remains unchanged at 4.20%, suggesting that the bank has successfully passed on the higher cost of borrowings to its customers.
31 FDI proposals worth
` 3, 845 crore cleared
The government on Tuesday announced its approval to 31 foreign direct investment (FDI) proposals worth ` 3, 844.70 crore out of which a major chunk of the inflow is accounted for by three applications, that of Multiples Pvt. Equity Fund, Ashwell Holding Company and global tour operator Cox & Kings. Amongst the proposals cleared based on the recommendations
Page 6 FinXpress
News of the Week
of the Foreign Investment Promotion Board (FIPB), Multi-ples Pvt. Equity Fund-Scheme-1 (Mumbai) has been permitted to issue units, make investments in securities of Indian companies and distribute income realized on its investment. The transac-tion is expected to result in an investment inflow of ` 1, 000 crore.
Record food grains output in
2010-11
The country is heading for a record food grains production in the 2010-11 crop year at 241.56 million tonnes, with wheat and pulses output touching an all time high of 85.93 million tonnes and 18.09 million tonnes respectively. Union Agriculture Secretary P. K. Basu attributed the successes to good monsoon, higher minimum support price to farmers and focused policy approach, particularly to enhance production of pulses and oilseeds. As a result of higher output of the pulses, the import of is said to have gone down this year.
The record output was achieved despite drought in 90 districts in the eastern belt, excessive rains in parts of Gujarat and Andhra Pradesh and yellow rust in some wheat-growing pockets.
$7.2 billion RIL-BP deal
cleared after 5 months
The government on Friday gave
unconditional approval to Reliance Industries’ (RIL’s) proposal to sell 30 per cent interest in 21 oil and gas blocks to BP. It withheld permission for two blocks. The two companies had announced on February 21 that BP would pay $7.2 billion to RIL for the deal. The approval was given by the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Dr. Manmohan Singh.
Google+ gathers steam 18%
total users from India
Google’s social networking foray, Google+, is steadily gathering steam, owing primarily to the users in India and the US. Within weeks of its launch, the site which is still in its beta phase (one needs to be invited to join it), has seen nearly 20 million users signing up.
The number of unique Google+ visitors stood at 19.93 million between June 29 and July 19. Users from the US and India.
5.31 million and 2.85 million, respectively — emerged as the top countries on Google+. Another 0.87 million users were from the UK, 0.71 million from Germany, and 0.5 million from France.
Still, Google+ numbers pale in comparison with those of the Facebook users having a figure of over 750 million. Even micro-blogging site Twitter accounts for over 200 million registered accounts.
51% foreign stake in retail
gets CoS nod
On Friday, India moved closer to a major economic reform, with a committee of secretaries (CoS) giving an approval in principle for allowing upto 51 per cent foreign direct investment (FDI) in multi-brand retail.
The move was keenly awaited by global retail companies such as Wal-Mart and Carrefour. The decision, when implemented, is expected to bring in huge foreign investments in the retail sector and help the government counter the charge that it is suffering from a policy paralysis.
UB Group withdraws
controversial Bhajji ad
The Vijay Mallya owned UB Group today decided to withdraw the controversial ad, which had prompted the spinner to slap a legal notice against the group.
Page 7 FinXpress
News of the Week continued...
The UB Group said that it had taken a decision to replace the ad "in the interest of the game of cricket" and fearing that the commercial could be misused by vested interests to further their own agenda.
"This gesture *to replace the ad+ of Vijay Mallya is based on the larger national cricketing interests, particularly at time when the Indian Team is engaged in a crucial cricket test series in the United Kingdom," a statement from the group said.
Petroleum Ministry and
Regulator cross swords
again
The Petroleum Ministry and Petroleum Regulator have again crossed swords for the second time in a year. The petroleum & natural gas regulatory board (PNGRB) is miffed with the oil ministry intervening in its domain of operation. The ministry has come out with a decree which forbids supply of subsidized cooking gas in homes whereas the board wants to rapidly expand city gas networks providing cooking gas at market rates. The regulator policy would enable customers to take advantage of two gas connections which the government believes to be imprudent.
Alstom bags ` 270 crore
Order
Alstom, the French equipment
maker has bagged an order of
` 270 crore for setting up three
hydropower projects in India. It has signed its first contract with Shiga Energy for the 97 MW Tashiding hydroelectric project based in Sikkim. The second project has been signed with NSL Tidong Power Generation for 100 MW Tidong Project in Kinnaur district of Himachal Pradesh. The third contract has been signed with Haridwar Infrastructure for 6 MW Dikchu hydroelectric project in Sikkim. Currently, two projects of Alstom are under execution including the 2, 000 MW Subansriri Lower hydroelectric power plant in Assam and Arunachal Pradesh.
Swiss Banks owe $ 2.5
billion to Indian holders, say
Swiss Central Bank
The Swiss Central Bank authorities have estimated the total size of liabilities towards Indian holders to be at $ 2.5 billion in 2010 as opposed to $ 1.5 trillion as projected by the Indian politicians. According to Swiss Bank authorities, the liabilities towards Indian account holders stood at 1.965 billion Swiss francs ($2.7 billion) in 2009 and 2.4 billion Swiss francs ($3 billion) in 2008. Reports had earlier suggested that several Indian account holders had moved their funds to Singapore after some banks had relaxed confidentiality rules under pressure from OECD and G-20 regulations. However, recent reports indicate that Swiss banks continue to enjoy the tag of
being the tax havens.
Cartoons
Solve it Now!
We are on the web !
http://www.facebook.com/FinNiche
http://www.imtgfinxpress.co.cc
Page 8
**Rush in your entries to : [email protected]
Lucky winners will get their name featured in the next issue of
FinXpress.
Set A Where am I ??
1)Google
2)Chevrolet
3)Unilever
4)Nokia
5)Sony
Set C
Identify the Logo…
1) 2) 3) 4) 5)
Set B Question of the week :
It started off in 1913 in the heart of New York City as a publishing company, which sold financial statistics to consumers including the New York Stock Exchange. Now, the company is a reputed name in the arena of ratings. Which outfit are we talking of here?
CAN YOU SOLVE IT ?
a)Espoo
b)Mountain View
c)Minato
d)Detroit
e)Rotterdam
Feel free to write to us at : Drop in your suggestions to the editorial team :
[email protected] Magazine design/news : [email protected]
Articles/quiz : [email protected]
LAST WEEKS RIGHT ENTRIES WERE FROM-
Ankit Rungta Pranav Upadhyay
Mahak Aggarwal Shilpi Pachauri
LAST WEEK’S ANSWERS
Set A - Set B -
1) Jack Dorsey 1) Bank of America
2) Greg Brennman 2) Barclays
3) James S Turley 3) Future
4) Steve Luczo 4) Chanel
5) C Y Pal 5) Expedia
6) Kenneth Chenault
