TCS Q2 beats estimates, net up 32% at Rs 2,169.21 cr

MUMBAI: Country's largest software firm Tata Consultancy Services today reported 32% jump in consolidated net profit at Rs 2,169.21 crore for the second quarter ended September 30, 2010, driven by rising order wins from its mainstay financial clients.

As per Indian accounting norms, the company had a net profit of Rs 1,642.21 crore in the July-September 2009 quarter, TCS said in a filing to the Bombay Stock Exchange.

"It has been a quarter of superior performance across the board, driven by volume growth of over 11 per cent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery," TCS CEO and MD N Chandrasekaran said.

TCS, part of the Tata Group that spans commodities, autos and services, added 19,293 people during the quarter, the highest ever for the company, taking the total headcount to 1,74,417 at the end of September quarter.

Income from operations rose to Rs 9,286.39 crore in Q2, up from Rs 7,435.23 crore in the year-ago period. It added 30 new clients during the quarter.

Under US accounting standards its net profit rose to Rs 2,106 crore ($475 million) from Rs 1,624 croe reported last year.

TCS said that the macro environment is uncertain and the scenario will continue like this for sometime. The company also said that attrition is of some concern but is manegable.

"It has been a quarter of strong revenue and margin performance all around," TCS CFO S Manhalingam said.

The board has proposed an interim dividend of Rs two per equity share on a face value of Re one each.

Last week, rival Infosys Technologies Ltd beat estimates and raised its annual sales forecast, but warned currency volatility could crimp growth for India's $60 billion outsourcing sector.

A strong rupee is a cause for concern for the sector, which draws more than half its revenue in dollars and has significant rupee expenses, which could squeeze margins.

"With our major operating currencies continuing to be volatile, we remain vigilant on this front," Mahalingam said.

Shares in TCS, valued at about $43.5 billion, have risen over 31 percent percent this year, outpacing a near 17 percent percent gain in the sector index and a 16 percent rise in the broader market.

Bridgestone to set up Rs 2,600 cr new plant in Pune

CHENNAI: Bridgestone India, a leading tyre manufacturer, on Monday said it planned to set up a new production facility at Chakan in Pune at an investment of about Rs 2,600 crore.

The new plant would help the company to produce 10,000 units of passenger vehicle tyres per day and 3,000 units of commercial vehicle tyres per day by 2020, Bridgestone India Managing Director Hiromi Tanigawa said on Monday.

"By 2013 we will launch new production facility at Chakan near Pune at investments of almost USD 26 billion rupees (Rs 2,600 crore)...," he said.

The new plant would come up on 7.60 lakh square meters, nearby treble the size of its Indore plant (2.60 lakh sq m).

The company, which entered India in 1996, commenced production at its Khedhar plant in 1998 for manufacturing of tyres for passenger and sports utility vehicles in India.

The company would also invest around Rs 300 crore at its Khedar plant for increasing its capacity from 14,000 units to 15,000 units, he said.

Asked about plans for overseas operations, he said the company would focus on the domestic market as the demand was increasing.

The tyres manufactured at the proposed plant would have 40 per cent localisation, resulting in savings on import duty incurred on shipments from Japan , he said.

With the setting up new plant the company would also double its headcount in India. "We are having 1,700 employees in India and we will add another 1,800 (for the new facilities)," he said.

He said the company, with 1800 dealers and 200 exclusive 'Bridgestone Select' dealership points, currently enjoyed 26 per cent market share in the replacement market and 20 per cent in the commercial vehicle category.

Mahindra two wheelers sales up 451% in Sept

MUMBAI: Mahindra Two Wheelers reported its best monthly sales of 16,569 scooters in September, a whopping 451% increase year-on-year.

The $76.1-billion Mahindra & Mahindra group-owned company sold 1.5 lakh units in the last 12 months, riding on the back of its ‘powerscooter strategy’ targeting youth with its peppy looks and 125cc power engine. The company now looks to consolidate its position in the two-wheeler segment with its newly- launched motorcycles, said Anoop Mathur, president of the two-wheeler segment and member of group executive board of M&M.

The Mumbai-based auto major recently made its debut in the motorcycle segment with two models, Stallio and Mojo, and roped in film star Aamir Khan as its brand ambassador.

The 300cc Mojo is a lifestyle bike which the company calls the ultimate machine for motorcycle enthusiasts. Having an aspirational high-performance bike with latest global technology is expected to help M&M to make an impact in the highly competitive bike market.

“Mojo is in a sense a showcase of what we are capable of doing,” group vice-chairman and managing director Anand Mahindra told ET NOW in an interview. “It is the fastest Indian bike and it was designed with that goal in mind,” he said.

The 110cc Stallio is more of a volume winner, being competitively priced, fuel efficient and offering some new features. M&M has kick-started an online campaign to create a buzz around its motorcycles. The company has offered to hire 20 bikers to ride its bikes from Ladakh to Nagpur. After the journey, the bikers get to keep the bikes.

M&M entered the two-wheeler space with gearless scooters after acquiring Pune-based Kinetic in July last year. M&M acquired 80% controlling stake for Rs 110 crore.

GM India to come out with electric car next year

JAIPUR: General Motors (GM) India today said that it is strengthening its foothold in the state and will showcase an electric car next year.

It would be an environment-friendly small car, President and Managing Director Karl Slym said, adding that it would be a battery operated car.

He said GM India is rapidly expanding its network in the wake of increasing popularity of Chevrolet in India, which recently completed seven years in the country.

In a joint collaboration with China's SAC (Shanghai Auto Car), GM will bring three "value-package" cars, he said.

It would soon be commissioning the power train facility in Talegaon, making the first flexi-engine plant for GM globally wherein both petrol and diesel engines are going to be manufactured together, he said.

Recently, the company inaugurated a LNG facility at its factory premises at Halol for supplying gas to its car manufacturing plant, and has also ramped up production at its Halol and Talegaon plants, he said.

When asked whether GM is planning any industrial investment in Rajasthan, Slym said its two units are already producing 2,25,000 cars per annum, and this would go up to 4 lakh in next couple of years.

Speaking on the occasion, Vice-President (Sales-marketing-aftersales) Sumit Sawhney said GM has invested over USD 1 billion (Rs 4,500 crore) in India till date, and is deeply committed to this market.

In last six months, GM India grew 79 per cent against the 36 per cent industry growth, Sawhney said, adding that the company's share in the car industry is, however, 4 per cent.

Steel Strips Wheels bags export order worth Rs 15 lakh

NEW DELHI: Auto-component manufacturer Steel Strips Wheels Monday said it has bagged an export order worth Rs15 lakh to supply 400 truck trailer wheel rims to a customer in the Middle East.

"This export order is for the supply of 400 truck wheels rims. The business will generate nearly Rs 15 lakh," the company said in a statement.

The order will be supplied from its new Jamshedpur plant which was inaugurated in July this year.

"SSWL is confident of getting more business in coming months from European and Middle East customers for this particular truck trailer wheel rim and negotiations with them are at an advance stage," the statement said.

Currently, the company has three manufacturing facilities in Dappar (Punjab), Chennai and Jamshedpur with an installed capacity of 11 million wheels per annum and has plans to increase the capacity to 21.5 million wheels by 2012-13.

The company offers a range of wheel rims for passenger cars, multi utility vehicles (MUV), tractors, trucks, off the road (OTR) vehicles as well as two and three wheeleRs

ITC: Leading Multi-business conglomerate turns 100

KOLKATA: Happy 100th birthday, ITC! India’s one of the largest multi-business conglomerates completes a century of existence on Tuesday, August 24, 2010.

To mark the day, company chairman Y C Deveshwar will address its close to 29,000 employees across the country through a webcast from ITC Sonar, Kolkata.

ITC also plans to unveil a special anthem on the occasion, company officials said.

“We are celebrating the inspiring journey of 100 years and renewing our pledge to take the company to even higher orbits of growth in the future, never losing the inspiration to put country before corporation always,” says Nazeeb Arif, vice-president —corporate communications, ITC.

Also, as part of the centenary celebrations, ITC, which has a market capitalisation of nearly Rs 1,14,000 crore, is giving away one free bonus share for each of its shares held.

That’s a long, long way for a company registered as the Imperial Tobacco Company of India on August 24, 1910, with an authorised capital of Rs 1,000 in ten shares of Rs 100 each.

That was not the start of the ITC story in India though. It started four years earlier, when two English gentlemen -- Jellicoe and Page – travelled from London to Calcutta, looking for an agent for Scissors and other W.D & H.O Wills' cigarette brands in India.

They combed the business district of Kolkata, but it was hard to find anybody interested in cigarette at a time when the cult of blends, pipes, pouches with Turkish and Virginia cigarettes was in vogue.

Finally, a small-time agent with little money, Buksh Ellahie, stepped in with borrowed money from a courtesan whom he married later.

And Ellahie, as the first agent of Wills, started the journey of ITC.

A lot has changed since then. The company was run by Britishers till well after the country’s Independence in 1947.

It got its first Indian manager in 1934 in Abdur Sardar Hussain, while its first Indian chairman was Ajit Narain Haskar in 1969.

It was Haskar who took the lead in Indianising the company as well as the management, says Champaka Basu, corporate historian and author of ‘Challenge and Change: The ITC Story 1910-1985’.

“He not only explained the complexities of the Indian social, economic and political environment to the parent company BAT, but also suggested steps ITC should take to ensure its profit and growth,” says Ms Basu.

In fact, ITC started looking beyond tobacco under his leadership, when it entered the hotel business in 1975.

Today, ITC has interests in hotels, apparel, rural retailing, finance, packaged food, personal care, stationery, paperboard, packaging and printing, safety matches and even information technology.

Berger Paints to invest Rs 150 cr in Andhra plant

NEW DELHI: India’s second-largest paint maker Berger Paints India plans to invest Rs 150 crore to set up a new plant in Andhra Pradesh by 2012, top company executive said. “We have identified a 50-acre plot in Hindupur and are waiting for clearances,” said Subir Bose, MD at Berger Paints India.

The proposed unit will have an installed capacity of 1.5 lakh tonne annually and will push up overall capacity around 50%. Berger is also spending Rs 60 crore to expand existing capacity of 2.5 lakh tonne by adding 50,000 tonne for the year ending March 2011.

Berger has seven plants in India besides four facilities overseas, at present.

The company on Thursday introduced Breathe Easy , an eco-friendly decorative paint, and said it is eyeing 20% growth in revenues this year. The domestic paint industry is growing annually at 15-16%.

Jaipan forays into mobile handset business

MUMBAI: Home appliances major Jaipan Industries on Sunday disclosed its plans to foray into the mobile handsets business where it is eyeing up to five per cent market share in a year's time.

"We are coming out with 12 mobile handset models, of which three hi-tech models will be launched by December. We are targeting a sale of 50,000 pieces per month," Jaipan Industries' Director Atin Agarwal told media here.

The handsets would range from Rs 1,099-Rs 4,000 a piece, he said, adding the company was eyeing a four to five per cent marketshare in a year's time. "Once we sustain in the market, the profitability will go up to 14-15 per cent," he said.

The total mobile handset market in India is around 75 lakh handsets per month, of which Nokia leads with more than 30 lakh handsets, followed by Samsung with 15-18 lakh pieces per month, he said. The company aims to be among the top 10 players and is eyeing the 6th-7th spot initially, he said.

Jaipan has spent around Rs seven crore in building-up inventory, he said.

Initially, the company will assemble the handsets in China. "After two-years, we plan to start manufacturing them from our existing home appliance manufacturing facilities," he said.

ADAG plans to invest Rs 70,000 crore in MP over five years

KHAJURAHO: Unveiling mega investment plans for Madhya Pradesh which almost compete with the state's plan outlay, ADAG chairman, Anil Ambani , today said the group would invest Rs 70,000 crore over the next five years in various sectors making it the largest investor in the state.

Speaking at a Global Investors' Summit here, he said that his group would invest in sectors like power, mining, cement, Coal Bed Methane (CBM) and telecommunication.

The state's plan outlay over the next five years would be Rs 1,00,000 crore whereas RADAG's investment in the same period would be over Rs 70,000 crore, he pointed out.

Giving details about the slew of projects the group has chalked up, The Reliance Anil Dhirubhai Ambani Group chairman said it would set up 12,000 MW power plant using ultra super-critical technology.

In case of coal, he said the group would develop the country's largest private sector mine in the state with a production capacity of 25 million tonnes of coal per annum.

As regards cement, he said that the group would set up 10 MTPA of cement capacity in the state which would be enhanced to 20 MTPA.

Anil said that his group was committed to education and plans to build Dhirubhai Ambani Institute of Information and Communication Technology (DAIICT), a world class institute in Bhopal.

UltraTech readies Rs 5,000-cr capacity expansion plan

MUMBAI: Ultratech Cement , India’s largest cement maker, has kick-started the next round of its capacity expansion which is likely to cost `5,000 crore, immediately after execution of its earlier plan of adding nearly 20 million tonne over the past four years.

The Aditya Birla Group company has placed orders for two 3.3-million tonne kilns on KHD Humboldt Wedag of Germany as part of its plan to add 9.4-million tonne capacity by 2012-13, said a company official who did not wish to be named. The Aditya Birla group spokesperson declined to comment as the company was in the silent period ahead of the September quarter earnings announcement.

These orders are for expansion at its Rawan plant in Chhattisgarh and Rajashree unit in Karnataka, Alchemy Share & Stock Brokers said in a note to its clients.

The 52-million tonne company has already stated its plan to add 25 million tonne capacity over the next five years to maintain its market share. The Birla company has a 19% share of the `1,00,000 crore market, world’s second largest market after China.

UltraTech has emerged as the single largest cement company in India with an annual cement capacity of 48.8 million tonne, thanks to the merger of the cement division of Grasim Industries with itself. It also has captive power of 504 MW. It recently bought the 3-million tonne ETA Star in Dubai.

UltraTech’s closest rival Holcim Group’s ACC and Ambuja Cement with 30.6 million tonne and over 25 million tonne capacity, respectively, are yet to finalise and announce any further expansion plan. ACC has expanded its manufacturing capacity by nearly 10 million tonne in over 3 years, while Ambuja will be a 27-million tonne company by December-end against 18 million tonne in 2007.