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Tech Mahindra derives Satyam benefits
Mon, 24 Jan 01:30 pm

Indian indices continued to trade firm led by sustained buying interest in heavyweights. Stocks from the banks and consumer durables space continue to lead the gains. However, oil & gas stocks are trading weak.

Currently, the BSE-Sensex is trading up by around 95 points, while the NSE-Nifty is up by about 31 points. There has been some buying interest amongst the mid and small cap stocks as well with the BSE Midcap and BSE Small cap indices registering gains of 0.65% and 0.63% respectively. The rupee is trading at 45.64 to the US dollar.

IT stocks are currently trading mixed with HCL Tech and Infosys trading firm, while Wipro and CMC Ltd are trading in the red. Tech Mahindra has announced its 3QFY11 results. The company has reported a 21% QoQ decline in sales and a 71% QoQ growth in its net profit. Revenues of 2QFY11 had included one-time revenue of Rs 2,990 m which was not present during the current quarter. Excluding this, revenues declined by 1.9% QoQ during the quarter. There was an overall decline in revenues across all of the company's segments. Operating margins improved by 2.3% QoQ on the back of lower operating expenses (as percentage of total sales). Bottom line grew by a whopping 70.6% QoQ mainly due to higher other income as well as gains from associate Mahindra Satyam as against the losses seen during the previous quarter (2QFY11). The company's utilization levels improved to 76% as against 75% in 2QFY11. The company's employee base stood at 34,208 as at the end of December 2010, which means an addition of about 201 employees during the quarter.

Power stocks are also trading mixed with Guj Ind Power, NTPC and CESC Ltd trading firm, while Reliance Power and Tata Power are trading weak. State-owned Coal India's subsidiary Bharat Coking Coal Ltd (BCCL) will open seven new underground mines in Jharkhand, a step aimed at nearly tripling its underground coal production capacity to 12 mtpa. The tenders for three to four mines have already been floated. Remaining tenders in the pipeline are likely to be floated in another two months. The mines, all situated in Dhandand, have a cumulative annual production capacity of almost 7 mtpa.

The CMD of the subsidiary also expressed hope that production from these mines will start after three to four years. With land acquisitions norms getting tougher, BCCL has shifted its strategy and is focusing more on underground mines.

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Mar 20, 2018 11:19 AM