Wipro 1QFY11 guidance offers no surprise
Wipro’s numbers broadly as per expectation. Total revenues for the quarter came in Rs 70 Bn while revenues for IT-Services came in at Rs 52.6 Bn.
Wipro, like TCS, sustained its continued performance on margins (in IT-Services), improving margins sequentially by 0.6% to 24.4%, which we believe came in from better offshore leverage (offshore revenues moved up 90bps Q/Q to 50.6% of revenues and offshore volumes went up 4.8% Q/Q). That said, this quarter did not reflect the full impact of wage hikes as revised wages Read more
Stocks reel under selling pressure from across all sectors
Local equity markets are witnessing intense selling pressure from across all sectors on back of weak global cues. All Asian markets are trading in the negative terrain with Shanghai Composite declining by more than 4% and Jakarta Composite shedding around 3%. Moreover, most of the other Asian indices declined by more than one percentage point on the US SEC’s (Securities and Exchange Commission) fraud charges against Goldman Sachs. Back home, all sectors in the broader indices are trading in the red with Metal segment losing around 2.3%, followed by Oil & Gas, Power, Auto and Realty that also lost more than one percentage point. Adding to woes is the Downgrade of Indian Equities by Morgan Stanley to EqualWeight.
Coupled with the global events, RBI’s looming liquidity tightening measures Read more
Detial of Swarup Committee Report on ULIP + Insurance
AS requested by our readers, here is an excerpt from the recommendations of Swarup Committee’ report for Insurance Sector / ULIP Case.
All retail financial products should go no-load by April 2011. The pension product in the NPS is already no-load. Mutual funds have become no-load with effect from 1 August 2009. Insurance policies need to remove the bias towards selling the policy with the highest commission. Because there are almost three million small agents who will have to adjust to Read more
Air Traffic in India Takess Off to a High
Indian airline passenger traffic, at 3.98 mn for March, represented 23.4% YoY growth, re-affirming our positive view on the sector. Airline seat factors came down for all airlines on account of seasonality. Market share for both Jet (including Jetlite) and SpiceJet largely remained unchanged. The Indian aviation sector clocked its highest annual traffic for FY10, at 46.3mn passengers (+17%
YoY), marginally beating our BofAML FY10 estimate. We expect strong 15% passenger growth for FY11, at 53mn passengers. Strong passenger traffic can partially offset the cost pressure related to rising ATF prices. Read more
Total Income Tax Payers / Assesses in India
We have just received Information from the Ministry of Finance, Department of Revenue Assistant Director on the total number of Income Tax Assesses in India. Can you take a guess ? India’s population is around 1.1 bn while the Income tax assesses / payers are less than 4%. yes you have read that right. Here is how the Income Tax Payers Base in India looks like, Read more
Era of Growth comes to an End at Infosys – Disappointing Results
Infosys Technologies Ltd , India’s leading Software Labor Arbitrage company announced the Audited Consolidated results for the quarter & year ended March 31, 2010 – The Group has posted a net profit after tax & minority interest of Rs 16170 million for the quarter ended March 31, 2010 as compared to Rs 16130 million for the quarter ended March 31, 2009. Total Income has increased from Rs 58870 million for the quarter ended March 31, 2009 to Rs 61420 million for the quarter ended March 31, 2010. Read more
Banks may raise rates after April RBI review
Ever since the Reserve Bank of India (RBI) hiked policy rates in a mid-cycle move in second half of April 2010, expectations of increase in pace of normalisation of the monetary policy stance have picked up. In case the RBI continues to tighten things aggressively in the forthcoming policy review scheduled for April 20, there is strong possibility that market rates too will start inching upwards.
India’s central bank, in line with most of its global counterparts, cut down policy and reserve rates sharply in a series of moves Read more
RBI will have to act strong as inflation fails to ease
India’s inflation continues to dupe government and the monetary authority alike and just when it seems that prices are easing, they begin to rise again. Latest reported data of food inflation shows that the pace of rise in food commodities’ prices increased by more than a percentage-and-a-half within a week. Fuel price inflation too continues to remains at higher levels. Manufacturing inflation has already been seen rising sharply in last couple of months. All this is likely to result into a significant jump in headline inflation for March. Read more
Impact Analysis of MphasiS acquiring Fortify Infrastructure services
MphasiS is to acquire Fortify Infrastructure Services, a provider of offshore-based remote IT operations and management (ROM) services via an all-cash deal. MphasiS would be paying US$15.5m (upfront consideration) + earn-outs (over a period of two and a half years if certain financials are attained).
The acquisition should provide MphasiS access to Fortify’s accounts, an experienced management team (average Read more
Punj Lloyd bags EPC contract worth Rs 232 crore
Punj Lloyd has bagged EPC contract worth Rs 232 crore from Public Health Engineering Department of the Government of Bihar for turnkey implementation of 850 solar- water treatment plants. The solar- water treatment plants will resolve the serve groundwater contamination, resulting in many types of diseases including skin and lung cancer. Read more