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VOLUME 11 ISSUE 3 MARCH 2013
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INVEST LIKE WARREN BUFFETT VOLKSWAGEN’S REVOLUTION IN CAR MAKING CARS FOR INDIAN SUPER RICH TOP 7 EMERGING TECHNOLOGIES BOEING SHOWS NO COMPANY IS TOO BIG TO FAIL
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EDITORIAL
Vol 12 Issue 3 March 2013
Managing Editor Jason D Pavoratti Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D
Why India Should Aim for Growth in Human Development Index, and Not Just in GDP The hype and the build-up to that Great Event and the Non-Event it always turns out to be, is just over. As usual, Opposition opposed the budget while the ruling circles hailed it as the greatest achievement since a long time. Stock Markets too played their role to the hilt. Long famed to deliver credit where it is due, markets tanked by around 300 points in appreciation. Not that the market’s appreciation matters. Thinking against the backdrop of India’s stark realities, market reaction should be taken as a positive, at least by all the non-market players who comprise the silent majority (98%+) of this vast nation.
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Captains of the industry were, however, largely appreciative of the budget. Most applauded Chidambaram & Co’s hard work in delivering a fine balance between 180 degree divergences like fiscal discipline and cash-for-work program. Despite warnings from India Inc.‘s heavyweights like Naina Lal Kidwai to Aditya Puri that super-rich tax shouldn’t be imposed, Chidambaram did show the spine to implement super-rich surcharge this time itself, even though it is just for one year now. And not unsurprisingly, even higher voices from the industry - from NR Narayana Murthy to Deepak Parekh - were seen applauding the move, exhorting fellow multimillionaires that they shouldn’t be this much stingy. The FM himself had asked industry to take inspiration from Wipro Chairman Azim Premji’s recent giveaway pledge to the tune of Rs. 12,500 crore, by joining The Giving Pledge of Gates & Buffett. After all, as Chidambaram said, the move would affect only a miniscule percentage of the population. In fact, miniscule is not the right word, as the real number of affected super-rich are less than 50,000! Remember, this statistic, is about a nation that recently hogged world’s centrestage when an association of Swiss Banks recently remarked that Indians are one of the largest black money hoarders in their country. The real reaction in the minds of the real super-rich was a sense of relief. While the majority of them heaved a sigh of relief that there is no breakthrough strategy yet to identify unaccounted wealth hoarding, the 50,000 affected HNIs would have heaved another type of sigh - because Chidambaram could have done worse. Not just through a higher surcharge, or by making it a permanent feature, but by introducing radical moves like Estate Tax, the necessity on which the FM had commented just days before. ‘Introducing’ is not the correct word, as India had it long back, and even now most best-performing nations like US has it. Estate Tax would have gone a long way in better accountability of wealth hoarding, as this would have forced all forms of wealth including land and jewellery - to be taxed whenever it is inherited from one generation to the next. The detractors of Estate Tax, of course, have their point as during its previous implementation, many of the super-rich had found out ways to circumvent it. While that argument again emphasizes the oftrepeated point that it is proper execution that is missing, it is no excuse to not reintroduce Estate Tax.
In this issue, Seasonal Magazine’s focus is on best performing companies in Q3, so that we can not only showcase corporate excellence, but identify the stocks most likely to perform during the next 3-4 months, for the benefit of our readers. But even while we proudly present this issue, the larger issues are not oblivious to us, as socially sensitive citizens. What kind of growth is India aiming at? If it is the nation it is nothing but GDP, and if it is about companies, it is nothing but bottomline. This sheer focus on profit growth has kind of made the intelligentsia of this nation into economic morons who applauds only when bottomline bulges YoY and QoQ. Don’t we need a radically better paradigm for growth? The current bottomline-focused paradigm comes from the West, especially USA, where the resources-topopulation ratio is starkly different. How can we keep on blindly following it, and even worse, struggle fatally trying to keep that course? What should matter is not the Gross Domestic Product, but the Human Development Index. Whom are we fooling when we claim with the West that India is the world’s 10th largest economy by nominal GDP or 3rd largest by PPP GDP? We are fooling none but ourselves. Because, India’s HDI stands at a pathetic 134 th rank with a value of 0.547. To put this performance in perspective, India’s position is worst in BRICS, with Russia at 66, Brazil at 85, and even China at 101. It is difficult to fool a comprehensive metric like HDI as it takes into account almost all aspects regarding standard of living like health, education, income etc. Isn’t it an irony that despite the UN sponsored HDI being co-invented by Amartya Sen, his home country hasn’t yet figured out how to improve on that crucial front? Why don’t we have any politicians batting for HDI, as against GDP? Everyone from Dr. Manmohan Singh to Narendra Modi to Nitish Kumar is following the flawed development model which theorizes that economic growth will cause HDI to rise. It won’t, as is readily seen from India’s pathetic position despite growing super fast for almost a decade, and Gujarat’s comparable position despite growing admirably under Modi. Even Sonia Gandhi’s cash-forjob program has fallen flat on the HDI front. The divergent tactics of Sonia or Modi can win vote banks for the short-term, but it cannot transform the nation forever. Is there a silver bullet to achieve better HDI for our people? Yes, there is, and it is called jobs. More jobs and more well-paying jobs. The best example comes from the tiny state of Kerala, which stands above all states (yes, beating even Delhi) in HDI. Other
famed development models like Maharashtra and Gujarat stands distant at 7th and 11th position respectively. We can deride the Kerala Model by saying many things like it is a ’Money Order’ economy. Which is true too, as the state is heavily dependent on NRK inflows from Middle East. It is not a right strategy too for a state to follow or encourage, but the point here is that only more jobs and more high-paying jobs can bring up HDI. In Kerala’s case, that jobs just happened to be in Middle East. Why does more jobs and more high paying jobs raise HDI? Because jobs begets jobs. In Kerala’s specific example, despite being poorly industrialized, home construction is a massive activity. Today, it is very difficult to find Keralites doing manual labour for other Keralites. Rather, it is employees from Bengal to Gujarat, and Rajasthan to Tamilnadu, who are working there, as even an unskilled labourer’s daily wage is upwards of Rs. 500 in Kerala. In many Indian states, the wages is less than Rs. 100. Kerala’s Middle East reliance is not the right model to follow, as it works only because all the income is repatriated back to the country due to poor investment prospects in Gulf. At the same time, it shows the power of lakhs of high-paying jobs. It is in this context that Chidambaram’s budget falls flat. Even its greatest admirers admit that it has no solutions to create lakhs and lakhs of reasonable jobs. But that is not the point either. The crux of the matter is that how can he kickstart such massive job generation when the corporate ethic of growth that is followed is solely of bottomline growth, which often mandates that jobs should be reduced massively to drive growth. More turnover and more profits with least employment is the corporate mantra. Will Seasonal Magazine be able to do a radically different compilation cover story like ‘Best YoY & QoQ Job Creators in Quantity & Quality’, maybe five years from now? And will it be appreciated by all, above stories of wealth creators and bottomline expanders? Let us hope so. The solution calls for a leader from a greater orbit. Like Gandhi who foresaw it much earlier, and advocated the charka and local sourcing of all essentials in our villages itself, making them selfsufficient, and providing gainful employment for all. It was perhaps a slower model of development, but wasn’t it what India really needed? John Antony
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Contents
Set to Gain on Q3 PERFORMANCE Where and What Did Our Politicians Study in College?
Multi-Crore Cars for Indian Super Rich
The post-earnings stock surges had died out earlier this time. The run-up to what was the last-budget-before-next-elections had understandably made the markets nervous. Adding to that was the midcap woes brought about by high promoter pledges, and the newest danger, basket pledges. And finally, a clause regarding FIIs in the budget itself spooked the market. Now that the Finance Ministry has clarified about that clause, will markets regain bullishness? Whether the overall market improves or not, what makes a company and its stock really change their trajectory, from south to north? In the short-term many factors can cause it, like, positive sectoral news, institutional buying, debt reduction, inorganic growth, significant new orders, bonus/dividend announcements etc. But on the longer term, what really moves stocks is only one thing - performance a.k.a. earnings. Analyses of almost all multibagger stocks in the past reveal this first-principle of the market. In other words, if you plot the earnings-per-share graph and the stock-price graph of any historical wealth creators like Infosys or Reliance, one can easily see that both the graphs are quite similar, the only difference being that the stock-price graph is a bit lagging in time to the EPS graph. In fact, if someone was only glued in to the EPS graph and mercilessly disregarded all other signals, he or she would never have missed any multibagger stock from its infancy onward.
Wockhardt’s Profit Doubles in Q3, Proves Stock Rally is Justified Turnaround Sustains at Central Bank of India Bank of India: Why This Positive Turnaround May Sustain If you are Indian and super rich, it is time you moved up from your Benz, BMW, & Audi. But not all cars for multi-millionaires can be bought easily in India. Here are four of them. As the millionaire population...
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BANKS-IN -FOCUS
Corp Bank Innovates to Grow Faster Karur Vysya Bank’s Topline Grows 25%, Bullish on Transaction Banking
The Top 7 Emerging Technologies for 2013
New challenges need new technologies to tackle them. Here, the World Economic Forum’s Global Agenda Council on Emerging Technologies identifies the top 7 most promising technology trends..
No Company is Too Big to Fail
For months, Boeing was at the top of the world. With airlines across the world scrambling for their Boeing 787 Dreamliners, which had no competition, and still has no competing model from rival Airbus. But then came disaster in the form of overheating batteries.
Invest Like the World's Best Investor
IT Mission’s Work Will Soon Touch All 3.34 Crore Keralites
The old man has done it again. Warren Buffett bought ketchupmaker Heinz for close to Rs. 1,50,000 crore, together with a Brazilian private equity firm. Heinz is more known in India for its local blockbuster brands like Complan, Glucon-D, & Nycil (which they acquired from others like Glaxo)...
Kerala State IT Mission (KSITM) has made giant strides in executing several key IT related projects in the state, with the momentum accelerating during the last couple of years. Two of KSITM’s initiatives - E-District and Aadhaar - deserve special mention not just due to their national importance but for their potential to touch and..
Cheap Luxury
Will VW’s Mammoth Bet Boost Itself, Wreck Itself, or Transform Carmaking Forever? Volkswagen seems to have invented a radically different way of making cars. And almost everyone else from Toyota to Ford to BMW have been caught unawares. Now, after six years of top-secret planning, when VW is about to take the $70 billion bet, by deploying the ‘MQB Plan’ worldwide, even analysts are a divided lot - with some saying that it will deliver an ‘unfair’ advantage..
John questions role of country's rich in helping needy
Pros & Cons of a Top-Up Loan
Top-up loans may be the best choice available if you want to raise some cash for personal purposes. Do explore it before looking into other expensive options.
Questioning the social work done by corporates in the country, actorproducer John Abraham says there are hardly any billionaires who part with their money to help the needy. The youth, he believes, can play a big role. "I say the youth should contribute. Contribution is when each one of us are willing to give..
Fed Up With Doing Business in India? Try These 10 Business Heavens
Is There an Unholy Nexus Between Banks and Realtors?
Free markets and private properties are much talked about. But the phrase economic freedom definitely gives rise to policy debates.
Ne w LLa aunche s: New unches:
Personal finance expert, Harsh Roongta of apnapaisa.com, shares a recent customer query and his answer for it.
ux e, Fresh, LLux uxe
& Duds page5
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Is There an Unholy Nexus Between Banks and Realtors? Personal finance expert, Harsh Roongta of apnapaisa.com, shares a recent customer query and his answer for it.
Q: I have purchased an apartment which is under construction and the total cost of flat works out to be around Rs 30 lakh for which I have already made a down payment of Rs 8.5 lakh but for remaining Rs 21.5 lakh, I have taken a loan for which I have entered into a tripartite agreement with the bank and the builder. As per the agreement I was supposed to make the payments to the builder as and when he completes the work but bank has released the entire Rs 21.5 lakh. I asked the bank as to how they released so much of amount when the rule and the agreement mentioned that only when the construction is over I need to pay the amount. After speaking to the builder he has apologized and he has given me an option to refund the extra amount which he has withdrawn from the bank and the other option he has given me is of interest payment of 7.75, which is equivalent to the bank fixed deposit (FD) for 45 days. So, should I take back the cash from the builder or I should accept an interest
payment of 7.75 from the builder? A: Clearly, it is the bank that has not done its duty here. They had no business releasing this. You are paying an interest rate to the bank; so there is no earthly reason for you to accept an interest rate that is less than that. You just tell the builder to give back the money or you put pressure on the bank. File a written complaint with the bank and the bank will ensure that the builder gives you that interest because it is the bank who had not fulfilled its responsibility. Make sure you file a written complaint. If they don’t respond, or if the builder does not respond to the pressure from the bank, just pile on the pressure by filing a complaint with the Nodal officer of the bank. You can be hundred percent sure that the bank will put pressure on the
builder to completely compensate you for 10.25 interest payment but this 7.75 business is not right. He is just testing how far you will take the complaint. Please file a written complaint, you will 100 percent get relief.
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Is Indian Income Tax Rates High or Low?
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Successive Indian finance ministers have claimed that Indian tax rates are low, especially our IT rates. But there have been dissenting voices from independent economists. It is a very tricky issue to unravel, as comparisons are difficult on two counts. One is that different countries have different social security systems, and more importantly, different ways in which citizens pay for such systems. Secondly, not only is the slab-system followed in various countries different, but even cost of living and purchasing power varies. Yet, KPMG recently undertook a comprehensive study, within these limitations, to find out the most expensive countries by income tax.
KPMG has used $100,000 annual income and a combination of IT Rate Plus Social Security Rate for arriving at this listing. And to all our politicians' dismay, India fares prominently in this list at 14th position! Add to that the poor social security and high corruption level, and Indian IT payers have pretty to be angry about! Indian rates are even higher than that of countries like Norway, Finland, & Sweden that tops in comprehensive social security. India also charges more than all comparable peers in BRICS, with only Brazil coming close, while Russia and China are surprisngly cheaper by IT rates. The most expensive nation is Belgium while USA comes across as a very reasonable state at 55th position only.
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AUTO
Seasonal Magazine
Cheap Luxury page12
Will VW’s Mammoth Bet Boost Itself, Wreck Itself, or Transform Carmaking Forever?
Seasonal Magazine
olkswagen seems to have invented a radically different way of making cars. And almost everyone else from Toyota to Ford to BMW have been caught unawares. Now, after six years of top-secret planning, when VW is about to take the $70 billion bet, by deploying the ‘MQB Plan’ worldwide, even analysts are a divided lot - with some saying that it will deliver an ‘unfair’ advantage to VW, some feeling that it holds the potential to wreck VW Group and its varied brands like Skoda, Audi, Porsche, Lamborghini, & Bentley, but all agreeing that it will transform car making forever. Customers on the other hand might be benefited, as discerning customers would be able to cut through cunning brand hype and select an almost similar car at a much lower price. So, what is this MQB Plan all about?
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Ulrich Hackenberg isn’t yet a household name but if Volkswagen’s $70 billion bet on his big idea pays off, he may join the likes of Henry Ford, Alfred Sloan and Taiichi Ohno in the canon of auto industry pioneers. Since the heyday of Henry Ford and his Model T, the world’s automakers have considered the “global car” to be their Holy Grail - the same basic design that can be built, in subtle variations, and sold in different markets.
Seasonal Magazine
Take that fundamental concept, stretch it across many different vehicle types, sizes and brands, then build them by the millions, and you begin to sense the enormity of Volkswagen’s rapidly evolving “mega-platform” strategy and its potential impact on competitors around the globe.
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Auto engineer Hackenberg nurtured this bright idea for three decades, after early pitches to auto executives were largely ignored, until somebody finally bought it wholesale. The man who bit was Volkswagen Chief Executive Officer Martin Winterkorn. Hackenberg’s fundamental rethink of vehicle platforms, the industrial Lego from which cars are designed and made, is helping power the German company to the top of the global sales charts several years ahead of its 2018 target. It could also make VW one of the most profitable carmakers in the world. The strategy is not without risk. It could, for instance, expose Volkswagen to the threat of a massive global recall if a
single part, used in millions of cars, fails. But rivals have taken note of the power behind its move. Volkswagen’s modular platforms are being benchmarked by most of the world’s top automakers, including Toyota Motor Corp and Ford Motor Co, according to company executives. “We’d be crazy not to,” said a senior Ford official, requesting anonymity because of the proprietary nature of the subject. VW’s work on its largest megaplatform, known internally as MQB, began in earnest in 2007 and is being implemented over the next four years at a cost of nearly $70 billion, estimates Morgan Stanley. The potential payoff is compelling: Projected annual gross
savings by 2019 of $19 billion, according to the bank, with gross margins approaching 10 percent.
Ulrich Hackenberg
The automaker is expected to announce a record profit for 2012 of more than $30 billion later this month (February 22), according to Bernstein Research, whose senior analyst, Max Warburton, observes: “VW looks to have unstoppable momentum - in China, the U.S., Europe and most of the rest of the world.” That momentum has been building for some time, even before the initial deployment last year of Hackenberg’s brainchild. Industry-leading levels of commonality - the proportion of parts that can be shared among different
“They had the same engines, the same clutches, the same ventilation - all identical parts,” says an executive who attended the presentation. “It was a level of commonality that didn’t exist at Renault-Nissan.” Late in 2011, as the outlook darkened for French carmaker PSA Peugeot Citroen, its board was given a similar demonstration, and a similar shock, at the company’s high-security research center in Velizy, southwest of Paris. Technicians took apart the front ends of two different VW cars and swapped most of their components. “They were a little dumbstruck by the realization that there was a whole new world out there - and their development was 10 years behind,” recalls one participant.
SIX-YEAR GESTATION After a six-year gestation, VW has just begun to implement its sophisticated and highly flexible platform with the deceptively simple label MQB, a German acronym for “modular transverse matrix.” Virtually all of the group’s small and medium frontwheel-drive family models, including the latest generations of the VW Golf and Audi A3, are being designed around MQB as their base. The new platform features a far greater degree of plug-and-play modularity, flexibility and parts commonality than at Toyota, General Motors Co, Ford and other competitors. MQB “could be the single most important automotive initiative of the past 25 years,” says Michael Robinet, managing director of IHS Consulting in Northville, Michigan. “It really changes the game.” With the new mega-platform strategy
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models - are nothing new to VW. At a gathering in Japan five years ago, Renault and Nissan executives lifted the hoods on several VW Group vehicles side by side - including models from Skoda, Seat and Audi brands - and saw trouble.
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supporting its 12 brands, from spartan Skoda to Audi, Porsche and Lamborghini, VW is poised to snatch the global sales crown from Toyota as early as next year, according to investment bank Morgan Stanley. VW envisions enormous leverage from MQB. The plan is to boost global sales to 10 million or more, with roughly two out of every three cars - some 40-plus models totaling 6.3 million sales a year - built on some variation of the MQB platform, according to U.S. research firm IHS Automotive. None of VW’s competitors has the diversity of brands, the breadth of technology, the sweeping geographic footprint or the deep pockets necessary to support and take advantage of such a wide-reaching initiative as MQB. Even Toyota, the current global sales leader, is playing catch-up with its German rival.
There is no doubt about who Volkswagen is mainly gunning for with MQB - which is global sales leader Toyota which has rebounded remarkably after an American recall scare. Toyota is also known to be tracking MQB closely.
“There’s no doubt we have fallen behind,” says a senior Toyota executive who declined to be named because of the sensitive nature of the subject. “We have not even begun to make the fundamental structural changes that VW has” in designing and applying flexible vehicle platforms. The sense from competitors and auto analysts is that VW’s rollout of MQB is likely to be as influential as such earlier innovations as Ford’s adaptation of standardized parts, GM’s “ladder” of brands and Toyota’s streamlined production system.
WATERSHED EVENT
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VW’s suppliers see MQB as a watershed event, a break with a past when really big vehicle platforms might have yielded orders for as many as 5 million or 6 million identical components over their typical six- to seven-year life cycle.
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Now, with the implementation of MQB, “they’re being asked for quotes on 35 million parts,” says a senior European industry executive.
More importantly, the modularity enables VW to design, engineer and build a wide variety of vehicle size and shapes - from a subcompact Polo hatchback to a full-size, sevenpassenger crossover that’s due in the United States in 2015. The flexibility of the MQB system also allows VW to create more cars that are more tailored for specific markets at a lower cost, and it doesn’t have to sell so many units to break even, according to Morgan Stanley analyst Stuart Pearson. MQB isn’t the only weapon in Hackenberg’s arsenal. Larger Audi, VW and Porsche models with longitudinal engines - mounted in a north-south configuration - will use
a similar set of components dubbed MLB that already underpins a number of Audi vehicles. And many of the group’s ultra-luxury and performance brands will employ a third component set called MSB, designed for premium rear- and allwheel-drive vehicles such as the Porsche 911, the Bentley Continental and the Lamborghini Gallardo. Each of the three modular component sets will come in different variations that will enable enormous flexibility in terms of product design, while accommodating a wide range of powertrain options, from gas and diesel engines to electric motors and batteries. “Modular platforms have grown beyond the technology (alone) to become a management tool which helps support the brands’ development.
While GM is a lead player in two of the largest markets - US & China - it lags in several key markets like India. What would be GM’s response to threats in the near future like MQB?
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STRENGTHS AND WEAKNESSES The modular toolkits seem like the ideal complement to VW’s other strengths, not the least of which is the company’s sheer size: Group revenue this year is projected by Bernstein Research to top $275 billion. But the huge volumes planned for the MQB derivatives alone could also expose the group to the same sort of mass recalls of millions of cars experienced in recent years by Japanese rival Toyota. If a single part has a problem, and that part is in many different models, a recall affects many more vehicles.
Ford has made a dramatic comeback in their hometurf of US, and in key emerging markets like India on a small-car strategy. But if it wants to compete globally, it has to counter emerging threats like MQB. Ford is also known to be benchmarking VW’s universal platforms.
Now, China accounts for 30 percent of VW’s global sales. The German group operates 10 assembly/component factories in China and plans to pump another $13 billion with its JV partners over the next three years into plants, equipment and models. Excess exposure to a single market such as China contradicts VW’s philosophy of spreading growth evenly and potentially makes it vulnerable to negative market developments and possible government interference, says Pieper. To hedge its potential emergingmarkets exposure, VW also has
Top managers are scanning other overseas markets where the company lacks local production facilities, including Africa, much of Latin America and most of the ASEAN region, where VW’s modest presence is dwarfed by that of market leader Toyota. VW is in the process of boosting global capacity, including the investments in China and the United States, to nearly 12 million by 2015, from 8.6 million in 2010, according to Morgan Stanley.
CHANGING OF THE GUARD The full rollout of MQB may not be accomplished until the end of the decade, estimates Pearson. By then, the chief stewards of VW’s corporate strategy - CEO Winterkorn and Chairman Ferdinand Piech - may be retired and the next generation of management moved into the top slots.
Analysts, including Morgan Stanley’s Pearson and Frankfurt-based Metzler Bank analyst Juergen Pieper, also express concern about VW’s growing reliance on emerging markets, notably China, for future growth. The company was an early investor in China and the only European automaker to form joint ventures with that country’s top two manufacturers, FAW Group and Shanghai Auto.
The latter two plants will be updated to accommodate new models that use the MQB platform - the latest Golf in Puebla and the big crossover in Chattanooga, according to VW executives.
overhauled its loss-making North American operations - an estimated $4billion investment, according to Morgan Stanley, that could more than double U.S. sales by 2018 to 1.3 million.
The Austrian-born Piech, 75, is a thirdgeneration auto executive. A mechanical engineer by training, he is the grandson of Ferdinand Porsche, the legendary Austrian designer of the original VW Beetle.
Even then, it would remain a mid-level player in the U.S. market dominated by GM and Ford, which sell nearly 5 million vehicles a year between them.
VW’s supervisory board has yet to clearly anoint potential heirs to Piech and Winterkorn, 65, and it won’t be easy, particularly since much of the power has been closely held by the two patriarchs since Winterkorn became CEO in 2007.
VW is supporting its recent growth spurt with additional production capacity, including a new Audi assembly plant in Mexico, expansion of VW’s existing facility in Puebla and a potential increase at the new Chattanooga plant in Tennessee.
As for the company’s strategic vision after Piech steps down, Morgan Stanley’s Pearson says: “His legacy is (building) the world’s largest and most successful auto company. I don’t think the strategy will change any time soon.” (Credit: Reuters)
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Seasonal Magazine
The toolkits help the brands to preserve their character and sharpen their individuality,” said Hackenberg, now development chief for the Volkswagen brand.
FUTURE WATCH
Seasonal Magazine
THE TOP7 EMERGING TECHNOLOGIES FOR 2013
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New challenges need new technologies to tackle them. Here, the World Economic Forum’s Global Agenda Council on Emerging Technologies identifies the top 7 most promising technology trends that can help to deliver sustainable growth in decades to come as global population and material demands on the environment continue to grow rapidly. These are technologies that the Council considers have made development breakthroughs and are nearing large-scale deployment.
OnLine Electric Vehicles (OLEV) 3-D printing and remote manufacturing Energyefficient water purification
Selfhealing materials
Organic electronics and photovoltaics
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Precise drug delivery through nanoscale engineering
Carbon dioxide (CO2) conversion and use
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THE TOP10 EMERGING TECHNOLOGIES FOR 2013
OnLine Electric Vehicles (OLEV): Wireless technology can now deliver electric power to moving vehicles. In next-generation electric cars, pick-up coil sets under the vehicle floor receive power remotely via an electromagnetic field broadcast from cables installed under the road. The current also charges an onboard battery used to power the vehicle when it is out of range. As electricity is supplied externally, these vehicles need only a fifth of the battery capacity of a standard electric car, and can achieve transmission efficiencies of over 80%. Online electric vehicles are currently undergoing road tests in Seoul, South Korea.
Energy-efficient water purification: Water scarcity is a worsening ecological problem in many parts of the world due to competing demands from agriculture, cities and other human uses. Where freshwater systems are over-used or exhausted, desalination from the sea offers near-unlimited water but a considerable use of energy – mostly from fossil fuels – to drive evaporation or reverse-osmosis systems. Emerging technologies offer the potential for significantly higher energy efficiency in desalination or purification of wastewater, potentially reducing energy consumption by 50% or more. Techniques such as forward-osmosis can additionally improve efficiency by utilizing low-grade heat from thermal power production or renewable heat produced by solar-thermal geothermal installations
Seasonal Magazine
3-D printing and remote manufacturing
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Three-dimensional printing allows the creation of solid structures from a digital computer file, potentially revolutionizing the economics of manufacturing if objects can be printed remotely in the home or office. The process involves layers of material being deposited on top of each other in to create free-standing structures from the bottom up. Blueprints from computer-aided design are sliced into cross-section for print templates, allowing virtually created objects to be used as models for “hard copies” made from plastics, metal alloys or other materials.
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Carbon dioxide (CO2) conversion and use:
Pharmaceuticals that can be precisely delivered at the molecular level within or around a diseased cell offer unprecedented opportunities for more effective treatments while reducing unwanted side effects. Targeted nanoparticles that adhere to diseased tissue allow for the micro-scale delivery of potent therapeutic compounds while minimizing their impact on healthy tissue, and are now advancing in medical trials. After almost a decade of research, these new approaches are finally showing signs of clinical utility.
Self-healing materials: One of the defining characteristics of living organisms is their s inherent ability to repair physical damage. A growing trend in biomimicry is the creation of non-living structural materials that also have the capacity to heal themselves when cut, torn or cracked. Self-healing materials which can repair damage without external human intervention could give manufactured goods longer lifetimes and reduce the demand for raw materials, as well as improving the inherent safety of materials used in construction or to form the bodies of aircraft.
Organic electronics and photovoltaics Organic electronics – a type of printed electronics – is the use of organic materials such as polymers to create electronic circuits and devices. In contrast to traditional (silicon-based) semiconductors that are fabricated with expensive photolithographic techniques, organic electronics can be printed using low-cost, scalable processes such as ink jet printing, making them extremely cheap compared with traditional electronics devices, both in terms of the cost per device and the capital equipment required to produce them. While organic electronics are currently unlikely to compete with silicon in terms of speed and density, they have the potential to provide a significant edge in cost and versatility. The cost implications of printed mass-produced solar photovoltaic collectors, for example, could accelerate the transition to renewable energy.
Seasonal Magazine
Precise drug delivery through nanoscale engineering:
One of the most promising approaches uses biologically engineered photosynthetic bacteria to turn waste CO2 into liquid fuels or chemicals, in low-cost, modular solar converter systems. Long-promised technologies for the capture and underground sequestration of carbon dioxide have yet to be proven commercially viable, even at the scale of a single large power station. New technologies that convert the unwanted CO2 into saleable goods can potentially address both the economic and energetic shortcomings of conventional CCS strategies.
INVESTMENT
INVEST LIKE THE WORLD'S BEST INVESTOR
Seasonal Magazine
he old man has done it again. Warren Buffett bought ketchupmaker Heinz for close to Rs. 1,50,000 crore, together with a Brazilian private equity firm. Heinz is more known in India for its local blockbuster brands like Complan, Glucon-D, & Nycil (which they acquired from others like Glaxo) rather than their varied sauces. And even Indian investors can learn a lot from the Heinz deal, in which Warren Buffett again put to use many of his core investing philosophies. Here are eight of them, from Morningstar.
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Berkshire Hathaway, the holding company managed by legendary investor Warren Buffett, recently announced it was, along with a Brazilian private-equity firm, buying American ketchup-maker Heinz for $28 billion. The deal, the largest ever in the food industry globally, reinforces two things. One, Warren Buffett is still relevant in the investment world despite concerns over how the increased size of Berkshire's portfolio will make it exceedingly difficult for him to continue to deliver the stellar returns it has logged in the past. And two, what helps him stay relevant is a clutter-free mind and a simple investment logic: the best investment opportunities are found not in the direction everyone is looking, it's often right in front. At Morningstar, we have long been fans of the Oracle of Omaha and the core of our equityresearch philosophy revolves around Buffett's stated principles: look to buy businesses with competitive advantages trading at a discount to what they are worth, and hold for the long term. Which is why the highlights of our stock analyses are our fair value estimates of a firm; a moat rating, which describes the sustainable advantages (or lack thereof) it has over peers; and a star rating based on the fair value estimate that tells you whether the stock is trading near or away from its fair value. Here we look into various aspects of the Heinz deal and supplement each with a Buffett quote, signifying how it has Buffett's investing philosophy stamped all over it:
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Seasonal Magazine
1) Frontline or Pennystocks? "Buy companies with strong histories of profitability and with a dominant business franchise." Most of Buffett's notable stock picks, including Heinz, were not firms there were obscure, under-researched or ones that the rest of the market was unaware of (think Coca-Cola, Gilette, GE). All it needed was to buy businesses with qualities that lend them some competitive advantages over peers and which would compound over time.
2) Market Value or Intrinsic Value? "Price is what you pay; value is what you get," says Buffett. Perhaps one of the most famous but the least-understood of Buffett's quotes, it emphasises upon the importance of understanding what to your eyes is the business' intrinsic worth, without the clamour of noise associated around it. "The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price," he says.
3) Buy Cheap or Buy Growth? According to Buffett, "Growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive." Buffett has always said that value investing does not mean buying companies that are generally trading at low earnings multiple or price to book but buying companies that are trading at discounts to their real worth. Buffett has paid top dollar for Heinz: the deal was done at over 20 per cent of its market price despite the fact that the stock was trading at its all-time high, and with its P/E ratio trading at a 15 per cent premium to its historical five-year average.
Seasonal Magazine
4) Wonderful Company or Wonderful Price?
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"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Buffett has separately said that time is the friend of the wonderful business (as such
businesses grow over time) and the enemy of the mediocre one. And so he won't mind buying a wonderful company even if it's not at bargain price, as he believes over the long term, earnings growth will take care of the valuation. The above quote holds truer in the context of the size of Berkshire's portfolio today. He can only buy large companies outright or pick up huge stakes rather than making small stock purchases to produce a sizeable return or "move the needle". And well-entrenched, cash-generating companies often don't come cheap on a valuation basis.
5) Profit From Change or Lack of Change? As per Buffett, "Our approach is very much profiting from lack of change rather than from change. For example with Wrigley chewing gum, it's the lack of change that appeals to me. I don't think it is going to be hurt by the Internet. That's the kind of business I like." Buffett sticks with predictable, easy-to-understand businesses, which would grow over time. "Heinz is our kind of company with fantastic brand," Buffett told CNBC of the purchase, pointing out to his affinity for buying firms in the Coca Cola mould with strong and sticky brand recognition.
6) Complex Companies or Simple Companies? The Oracle of Omaha can be selfdepreciating, when he says, "I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over." Buffett does not try to chase companies that would produce a dynamic shift in an industry or ones that are expected to be the next great growth opportunity.
He instead buys "boring" firms that produce strong cash flows over time. "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ," he points out.
7) A Reasonable Wait or an Indefinite Wait? "We don't get paid for activity, just for being right. As to how long we will wait, we'll wait indefinitely," he has claimed. Buffett likes to wait when the market does not offer enough opportunities. All of last year, Berkshire had been sitting with excess of $40 billion in cash earning next to nothing in the US's low-yield environment even though he has said he likes to keep only about $20 billion in cash. For Heinz, Buffett says he had been maintaining a file on the firm since 1980 but moved only when he thought the time was right. "Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's," he once wrote.
8) Diversify or Not Diversify? Buffett can be a contrarian when he says, "Risk can be greatly reduced by concentrating on only a few holdings." Contrary to popular wisdom that diversification helps reduce risk, when the right opportunity presents itself, Buffett likes to go "all-in" on his bets, often buying companies outright in or purchasing stakes worth billions of dollars, as diversification tends to reduce overall returns of the portfolio. "Wide diversification is only required when investors do not understand what they are doing," he says. "Risk comes from not knowing what you're doing." The Heinz buy symbolises the Buffett way of investing: load up and move in, in a big way once you are confident in your investment thesis. SM
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Multi-Crore Car Indian Supe
LUXURY
Seasonal Magazine
Chidambaram just made it more costly to buy fully imported luxury cars. But if you are Indian and super rich, it is time you moved up from your Benz, BMW, & Audi. But not all cars for multi-millionaires can be bought easily in India. Here are four of them: As the millionaire population in India grows with every passing year, the luxury auto market of the country is seen witnessing a tremendous increase in demands for ever higher standards of opulence in cars. With the buyers demanding more and the sellers providing readily, the Indian car bazaar has reached a stage where it is brimming with options, each one being just as enchanting as the next. Out of these innumerable captivating alternatives that the potential Indian buyer of today is presented with, we bring to you the most sought-after models with eight-figure price tags.
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rs for er Rich BUGATTI VEYRON Price: Rs 16.00 crore (Ex-showroom, Delhi)
Price: Rs 4.50 crore (Ex-showroom, Delhi) The ultimate status symbol of the elite, Rolls Royce, introduced a ravishing facelift of their fascinating sedan, the Phantom, last year with a series of cosmetic upgrades along with a few technical updates, making it all the more attractive and irresistible. Featuring the same 6.8-litre, 12cylinder, supercharged, V12 petrol mill that powered its predecessor, the Rolls Royce Phantom II employs a new 8speed automatic ZF gearbox sourced from BMW to work in synchronisation with the engine, which accounts for a 10 per cent enhancement in the car's fuel-economy. This enthralling saloon hands out a commanding 453bhp at 5350rpm coupled with a peak torque output of 720Nm between 10003000rpm.
Seasonal Magazine
ROLLS ROYCE PHANTOM II
Truly one of a kind, the electrifying Bugatti Veyron is the solitary model that represents its prominent luxury brand in India. And while its exorbitant price tag makes it the most expensive car in the country, its maddening acceleration, which can take it from 0-100kmph in a breathless 2.7 seconds, makes it the one of the fastest street-legal production cars on the planet. Under the hood, the Veyron carries a massive 8.0-litre, DOHC, supercharged petrol engine, capable of churning out a maximum of 987bhp at 6000rpm and a peak torque of 1250Nm at 2200rpm. With this powerpacked motor working round the clock, the top mark that the speedometer of this car gets to sport on its dial is a whopping 407kmph.
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LAMBORGHINI AVENTADOR Price: Rs 3.69 - 4.77 crore (Ex-showroom, Delhi) From the legendary clan of supercars where every member is not only named after the ferocious fighter bulls of Spain but is blessed with their ferocious character as well, comes the stunning Lamborghini Aventador with its dazzling looks and breathtaking speed. Launched last month in a new open-roof model titled as the Aventador Roadster LP700-4, the car boasts of a fabulous 0-100kmph acceleration of 3.0 seconds while flaunting a 350kmph top speed, all thanks to its powerful 6.5-litre, V12, supercharged petrol engine. This mighty power mill, besides churning out a peak 700bhp at 8250rpm, also holds the potential of pumping out a top 690Nm of torque at 5500rpm.
LAND ROVER RANGE ROVER
Seasonal Magazine
Price: Rs 1.70 - 1.87 crore (Ex-showroom, Delhi)
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The amazing all-wheel drive luxury line of Sports Utility Vehicles by the immensely famous brand of Land Rover, the magnificent Range Rover, welcomed a new member to its fleet last year when the company launched the sensational 2013 Range Rover Vogue SE in November. Powered by a brawny 4.4-litre, 16V, SDV8 diesel mill, this splendid package of opulence and performance promises top power and torque outputs of 334.3bhp at 3500rpm and 700Nm over 1750-3000rpm respectively. Leaving no visible scope for complaints, this SUV offers the best in every field, be it technology, comforts, styling, safety, performance or any other, for that matter.
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LEADERSHIP
WHERE AND WHAT DID POLITICIANS STUDY IN Arun Jaitley
Seasonal Magazine
BJP's Rajya Sabha MP, Arun Jaitley was actively involved in student politics during college. He graduated in Commerce from the Sri Ram College of Commerce, University of Delhi. He also pursued a LL.B degree from the Faculty of Law, University of Delhi, which he completed in 1977.
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AK Antony
Shashi Tharoor
Incumbent Minster for Defence, AK Antony completed Bachelors in Arts from Maharajas College and a Bachelor of Law from University of Kerala.
Outspoken politician Shashi Tharoor is the incumbent Minister of State for Human Resource Development. He holds multiple degrees with a Bachelor of Arts degree in history from the St. Stephen's College in Delhi. Also, he has M.A., M.A.L.D, Ph.D. degrees from the Fletcher School of Law and Diplomacy at Tufts University, U.S.A.
Sushma Swaraj Sachin Pilot Leader of Lok Sabha, Sushma Swaraj completed her Bachelor in Arts degree with majors in Sanskrit and Political Science from the S.D. College, Ambala Cantt. (Haryana) and also earned a L.L.B degree from Punjab University in Chandigarh.
Sachin Pilot, son of the former Indian National Congress MP Rajesh Pilot, has a B.A. degree from the St. Stephens College in Delhi and also a MBA degree from the Wharton Business School, University of Pennsylvania, Philadelphia in the U.S.A.
Agatha Sangma Agatha Sangma was the youngest Minister of State in Prime Minister Singh's U.P.A cabinet in 2008 (28). Sangma, who represents the Tura Constituency in Meghalaya, completed a Masters in Arts (Environmental Management) from University of Nottingham, United Kingdom. She holds multiple Diplomas in Cyber Laws, Corporate Laws, Human Rights Laws, and Securities & Investment Laws.
Seasonal Magazine
D OUR N COLLEGE?
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WHERE AND WHAT DID OUR POLITICI ANS STUD
Rahul Gandhi
Seasonal Magazine
Son of the incumbent Congress President Sonia Gandhi, Rahul Gandhi possesses a Bachelors Degree from the University of Florida in the USA. But, interestingly, the degree was completed under a false name due to security concerns following the tragic assassination of his father, the former Indian Prime Minister Rajiv Gandhi in 1991. Rahul later earned a M. Phil in 1995 from the prestigious Cambridge University.
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P Chidambaram LK Advani P Chidambaram, currently serving as the Finance Minister in the Congress-led UPA, is a multipledegree holder. A lawyer by profession before entering into politics, Chidambaram holds three degrees - B.Sc. (Madras University, Chennai), B.L.(Madras Law College (now Dr. Ambedkar Government Law College), and a M.B.A. from the prestigious Harvard University, Boston, Massachusetts (U.S.A.).
Bharatiya Janata Party (BJP) leader Lalkrishna Advani is a law graduate from the Government Law College, Mumbai. Advani completed his early schooling from the St. Patricks High School in Karachi, Pakistan. The former Deputy Prime Minister later enrolled into D.G. National College, Hyderabad, Sindh in Pakistan.
Dr. Manmohan Jyotiraditya Scindia Singh Prime Minister of India, Dr. Manmohan Singh completed a Masters in Arts (Economics) from the Punjab University in Chandigarh. Singh completed the Masters with a first class distinction with first position in the University. He also achieved a Economic Tripos (Fist Class Honours) from the prestigious University of Cambridge and later a D. Phil from the Nuffield College, University of Oxford, in U.K.
Representing Guna Constituency in Madhya Pradesh, Jyotiraditya Scindia is the incumbent Union Minister of State (Independent Charge), Power in the current UPA-led Central Government. Scindia completed a Masters in Arts from the Harvard University and also a M.B.A. degree from the Stanford University (Graduate School of Business), California (USA).
Salman Khurshid Minister of External Affairs in the current UPA-led Indian government, Salman Khurshid is a lawyer by profession. Khurshid holds a Bachelors degree in Arts (English and Jurisprudence) from St. Stephen's College in Delhi, and also holds a M.A. degree in addition. Khurshid possesses a B.C.L degree from the St. Edmund Hall, Oxford University.
Seasonal Magazine
DY IN COLLEGE?
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INDIA ABROAD
Seasonal Magazine
Fed Up With Doing Business in India? Try These 10 Business Heavens
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ree markets and private properties are much talked about. But the phrase economic freedom definitely gives rise to policy debates. This is a list of the top 10 countries based on the 2013 Index of Economic Freedom by The Heritage Foundation in partnership with the Wall Street Journal. The index has measured economic freedom based on four broad categories: Rule of law, limited government, regulatory efficiency and open markets. India is ranked at 119 with an overall score of 55.2 for its economic freedom. No wonder then that you have been thirsting to do business abroad. Everyone from Ratan Tata and Mukesh Ambani to small-scale but savvy commodity traders are doing the same - trying their luck abroad. So, here are the Top-10 Business Heavens. Inspect the list closely, as depending upon the line of business you want to pursue, the metrics you need to track will vary, like for some businesses 'Freedom From Corruption' is important while for some others 'Trade Freedom' is the essential thing.
With a score of 89.3, Hong Kong aces the list of the most economically free nations in the world.
SINGAPORE
Singapore’s overall score of 88.0 for its economic freedom gives it the second rank worldwide.
90.0 84.0 88.9 92.9 98.9 86.2 82.1 90.0 90.0 90.0
Property Rights: 90.0 Freedom From Corruption: 92.0 Government Spending: 91.3 Fiscal Freedom: 91.1 Business Freedom: 97.1 Labor Freedom: 91.4 Monetary Freedom: 82.0 Trade Freedom: 90.0 Investment Freedom: 75.0 Financial Freedom: 80.0
Seasonal Magazine
HONG KONG
Property Rights: Freedom From Corruption: Government Spending: Fiscal Freedom: Business Freedom: Labor Freedom: Monetary Freedom: Trade Freedom: Investment Freedom: Financial Freedom:
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Property Rights: 90.0 Freedom From Corruption: 87.0 Government Spending: 44.8 Canada has Fiscal Freedom: 79.8 an overall Business Freedom: 91.7 score of Labor Freedom: 82.3 79.4 Monetary Freedom: 75.2 making it Trade Freedom: 88.2 the sixth Investment Freedom: 75.0 most-free Financial Freedom: 80.0 economy.
CANADA
NEW ZEALAND
The overall score for Australia’s economic freedom is 82.6
Property Rights: 90.0 Freedom From Corruption: 88.0 Government Spending: 62.8 Fiscal Freedom: 66.4 Business Freedom: 95.5 Labor Freedom: 83.5 Monetary Freedom: 83.8 Trade Freedom: 86.2 Investment Freedom: 80.0 Financial Freedom: 90.0
SWITZERLAND
AUSTRALIA
Property Rights: 90.0 Freedom From Corruption: 88.0 Government Spending: 63.8 Ranked at Fiscal Freedom: 68.1 number five, Business Freedom: 75.8 Switzerland’s overall score Labor Freedom: 87.9 Monetary Freedom: 86.2 for its Trade Freedom: 90.0 economic freedom is Investment Freedom: 80.0 Financial Freedom: 80.0 81.0
New Zealand’s overall score for its economic freedom is 81.4
Property Rights: 95.0 Freedom From Corruption: 95.0 Government Spending: 33.2 Fiscal Freedom: 71.5 Business Freedom: 99.9 Labor Freedom: 89.5 Monetary Freedom: 83.3 Trade Freedom: 86.8 Investment Freedom: 80.0 Financial Freedom: 80.0
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UNITED STATES
Ranked at number nine, Denmark scored an overall 76.1 for its economic freedom.
Property Rights: 70.0 Freedom From Corruption: 51.0 Government Spending: 81.9 Fiscal Freedom: 92.1 Business Freedom: 78.2 Labor Freedom: 72.3 Monetary Freedom: 75.4 Trade Freedom: 87.9 Investment Freedom: 90.0 Financial Freedom: 70.0
Property Rights: 90.0 Freedom From Corruption: 94.0 Government Spending: 5.9 Fiscal Freedom: 39.8 Business Freedom: 98.4 Labor Freedom: 91.1 Monetary Freedom: 80.0 Trade Freedom: 86.8 Investment Freedom: 85.0 Financial Freedom: 90.0
Seasonal Magazine
Mauritius’ overall score of 76.9 for its economic freedom gives it the eighth rank worldwide.
DENMARK
CHILE MAURITIUS
Chile scored an overall of 79.0 for its economic freedom.
Property Rights: 90.0 Freedom From Corruption: 72.0 Government Spending: 83.7 Fiscal Freedom: 77.6 Business Freedom: 70.5 Labor Freedom: 74.2 Monetary Freedom: 84.6 Trade Freedom: 82.0 Investment Freedom: 85.0 Financial Freedom: 70.0
Property Rights: 85.0 Freedom From Corruption: 71.0 Government Spending: 47.8 Ranked at Fiscal Freedom: 69.3 number ten, Business Freedom: 90.5 United Labor Freedom: 95.5 States’ Monetary Freedom: 75.0 overall score Trade Freedom: 86.4 for its Investment Freedom: 70.0 economic Financial Freedom: 70.0 freedom is 76.0
FINANCE
Pros & Cons of a Top-Up Loan
Seasonal Magazine
Top-up loans may be the best choice available if you want to raise some cash for personal purposes. Do explore it before looking into other expensive options.
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ahul Ghanekar, 39 year old doctor needed some money to expand his clinic. While he was talking to one of his old patients about it, the patient mentioned the option of taking a top-up loan at a very attractive rate. A top-up loan is in fact one of the best options for borrowing funds at a low cost. The tenure of these can go up to 15 to 20 years, depending on your home loan's term. "It is offered only to existing customers. The maximum tenure could be the same as the balance repayment period. However, it is based on our evaluation," says a spokesperson from a housing finance company. "Usually, the total of outstanding home loan amount and the top-up loan does not exceed 70 per cent of the property's market value.Interest rates on top-up loans are quite low when compared to personal loans. Their EMIs are low because of longer terms, while the amount you would be eligible for is higher," adds another spokesperson from a leading housing finance company. The money raised from a topup loan can be used for any purpose (other than speculative activities) including education, marriage or even a holiday. A top-up loan is often the best choice for borrowing. It offers the advantage of a great interest rate, paperwork that is already done and comfortable tenure. SBI has one of the lowest rates offered for top-up loans at 11.25 per cent. Most
top-up loans will attract a rate between 11.25-13 per cent currently. If compared with other types of loans like gold loans or personal loans you can see why a top-up loan is a clear forerunner. The main advantages of a top-up loan are a lower rate of interest, longer tenure and virtually no paperwork.
Things to watch out for
Interest rates on top-up loans are quite low when compared to personal loans. Their EMIs are low because of longer terms, while the amount you would be eligible for is higher.
1. Even though a top-up loan can be used for any purpose, some banks offer a lower rate if the loan is used for actual improvements/extension of the home. The rate is higher if it used for other purposes. 2. If you choose to pre-pay the loan, there might be hefty penalty attached to it; it could be as high as 4 per cent in some cases. 3. Top-up loan may be available to the customer only after s/he has repaid specified EMIs of the original home loan i.e. the home loan should be repaid to some extent. 4. There might be processing charges and other charges which would hike up the cost of the loan. 5. Top-up loans are not suited for everyone as they are meant for people who have an existing home loan and have repaid some specified part of it. 6. The amount of loan is usually limited by the EMIs repaid. Top-up loans may be the best choice available if you want to raise some cash for personal purposes. Do explore it before looking into other expensive options. SM
RISK MANAGEMENT
No Company is Too Big to Fail
For months, Boeing was at the top of the world. With airlines across the world scrambling for their Boeing 787 Dreamliners, which had no competition, and still has no competing model from rival Airbus. But then came disaster in the form of overheating batteries. And Boeing's dream world came tumbling down. And in this dramatic fall is lessons for every big company suffering from the arrogance that they are too mighty or too big to fail. If Boeing can fail, any big company in any sector can fail. aine Field Airport, next door to Boeing Co's widebody plant north of Seattle, is getting crowded as 10 new 787 Dreamliners flank the runway, sparkling with contrasting and colorful liveries, including Poland's LOT, Britain's Thomson Airways and China Southern Airlines.
Seasonal Magazine
It is a similar story several thousand miles away, outside the company's North Charleston, South Carolina final assembly building, where space is taken up by four 787s destined for Air India.
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A month after the global fleet of the carbon-composite jets were grounded as US and Japanese regulators carry out investigations into overheating
batteries, the parked airliners are a stark symbol of deepening problems this is causing Boeing. At Paine Field in Everett, Boeing plans to move some of its other planes around to make room for new 787s coming off its two production lines, and says it has room to store all the 787s it is making. But Boeing is finding it increasingly difficult to convince Wall Street that its balance sheet is not going to be strained by the crisis. Until the Dreamliner is cleared to fly again, which could be several months, Boeing will be starved of delivery payments but still has to keep producing and maintaining the 787s it is making. The world's largest planemaker is being hit on a number of financial fronts, as well as suffering potential damage to its
brand image. It is unable to deliver the five Dreamliners being produced per month, missing out an about $200 million in final cash payments from customers every month the 787 is grounded, while it has to pay out millions of dollars to clean, maintain and insure the parked planes. The delay may also force Boeing to postpone plans to double production by the end of this year. Meanwhile, it is spending as much as $1 billion a month to keep the production line running, according to Russell Solomon, an analyst at Moody's Investors Service, as the 787 program is still in the early, cost-heavy stage. On top of that, it will have to pay the extra costs of putting engineers to work on the battery problem and the expense of reworking the 100 or so Dreamliners that have so
Wall Street initially pegged those costs at $350 million to $625 million, but as investigations drag on with no clear indication of a fix, analysts have held back on updating those figures. The longer the delay, the more complex and expensive the fix is likely to be. "They've got all that carbon fiber sitting on the ramp, when they'd like to have the cash," said Carter Leake, an analyst at BB&T Capital Markets. "This is going to be a slow slog for a long time."
Cash Drain The company's $13.5 billion in cash and short-term investments provide a cushion, as does the $3.7 billion in free cash flow generated in the fourth quarter of 2012, but both will be eaten away each month the plane is grounded. So far, analysts and one source familiar with Boeing's thinking do not expect the cash squeeze will prompt Boeing to borrow more, even at current low interest rates. The company itself said only that it has not adjusted its cash management strategy. Boeing's cash flow could be cut by as much as $1.5 billion over six months if the 787s are still unable to fly, analysts said. "The longer the plane is grounded, the greater the risk of the company's 2013 cash flow meaningfully declining," said Solomon at Moody's. So far, Boeing's stock has held up at around $75, higher than for most of last year, and customers are expressing faith in the plane and its maker. Airlines are being notified of late deliveries, but none has canceled any orders. The shares have fallen 3 per cent since the 787 grounding in mid-January, compared to an 11 percent gain for Airbus parent EADS. Boeing says it is still too early to quantify the financial impact of the grounding, and its 2013 financial forecasts excluded 787 costs. Bob Crandall, former head of American
Airlines and an industry figurehead, said Boeing will suffer, but most airlines would not be overly fazed by delivery delays, as they can lease replacement jets and bill Boeing for it, or factor those costs into discounts on future plane purchases. "It's a shame, and will inconvenience airlines and passengers, and hurt Boeing financially. "But progress and safety are the two games in play," he said. "They (Boeing) will fix the problem and get the planes back in the air. It will cost them money, but nobody in the aviation community will fault them," he added. "Aviation progresses by constantly learning, and here the lesson is about the nature of lithium batteries." Favourable market conditions are helping Boeing and its rival Airbus sell and produce record numbers of jets, worth about $88 billion last year, said Richard Aboulafia, a senior aerospace analyst at the Teal Group in Fairfax, Virginia. High oil prices are prompting airlines to order new fuel-efficient planes, and low interest rates make the purchases easier to finance them and make the loans attractive to investors looking for yield. "You could not ask for those three variables to get any better for airplane output," he said. But, he added, it's unclear how long it will last.The US and Japanese investigations into burning lithium batteries are moving slowly, and there is no sign of a resolution. The longer that goes on, the longer deliveries are pushed back.
Boeing's cash flow could be cut by as much as $1.5 billion over six months if the 787s are still unable to fly, analysts said. "The longer the plane is grounded, the greater the risk of the company's 2013 cash flow meaningfully declining," said Solomon at Moody's.
More importantly, it suggests that the work Boeing will have to do to rectify battery problems on the more than 100 Dreamliners it has already produced could be significant and will hamper its efforts to ramp up production. Two weeks ago, Chief Executive Jim McNerney said Boeing was sticking with the ambitious plan hatched long before the current battery problems came to light to increase 787 production to seven a month by mid-year and 10 a month by the end of 2013. Boeing spokesman Charles Bickers said that is still the plan, and it is too early to know what the financial impact of the 787 grounding will be.The steep ramp-up is crucial to the profitability of the 787, as the lion's share of outlays happen early in a plane program. The quicker Boeing can refine the process and ramp up production, the quicker it will reach the target of 1,100 planes, the point where it calculates it will break even on the program. At planned production rates that is already a decade away. "A slowdown would be crushing," said Leake at BB&T. "As long as the program accounting assumptions don't change, Boeing can keep booking the same margin in the current production block. "But once production rates change or slow, their assumptions on both revenue and cost will have to change." Revenue will likely go down as Boeing will have to offer aggrieved customers more concessions on future purchases to keep them happy, while it loses hundreds of millions of dollars in 'progress' payments, which airlines pay as planes near completion. At the same time, costs will stay higher for longer than Boeing has been counting on. Boeing's credit rating is not immediately under threat, but the trend is concerning analysts. "If the grounding persists for many more months, planned increases in the monthly production rate look increasingly suspect - and expensive, possibly further eroding Boeing's otherwise strong credit profile," said Solomon at Moody's. SM
Seasonal Magazine
far rolled off the production lines once it resolves the problem.
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Top 100 Stoc Set to Gain on Q3 Perform
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COVER STORY
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SM
Seasonal Magazine
cks mance
he post-earnings stock surges had died out earlier this time. The run-up to what was the last-budget-before-next-elections had understandably made the markets nervous. Adding to that was the midcap woes brought about by high promoter pledges, and the newest danger, basket pledges. And finally, a clause regarding FIIs in the budget itself spooked the market. Now that the Finance Ministry has clarified about that clause, will markets regain bullishness? Whether the overall market improves or not, what makes a company and its stock really change their trajectory, from south to north? In the short-term many factors can cause it, like, positive sectoral news, institutional buying, debt reduction, inorganic growth, significant new orders, bonus/dividend announcements etc. But on the longer term, what really moves stocks is only one thing - performance a.k.a. earnings. Analyses of almost all multibagger stocks in the past reveal this first-principle of the market. In other words, if you plot the earnings-per-share graph and the stock-price graph of any historical wealth creators like Infosys or Reliance, one can easily see that both the graphs are quite similar, the only difference being that the stock-price graph is a bit lagging in time to the EPS graph. In fact, if someone was only glued in to the EPS graph and mercilessly disregarded all other signals, he or she would never have missed any multibagger stock from its infancy onward. And can earnings be predicted? Only very few Indian companies are in the habit of providing earnings guidance, and even fewer are those who consistently perform according to their own guidance. That is why quarterly earnings reports from thousands of listed companies are still keenly watched by all serious investors - both institutional and retail. Of course, many brokerages and analysts try to predict earnings, but like the recent Q3 results showed, there are more misses than hits, with even consensus estimates being proven wrong. And when well-regarded estimates go wrong, there is double the danger - as, on such consensus estimates the stock would have run up higher than deserved, making the fall even more deeper, when reality hits in the form of the latest quarterly numbers. On the positive side too, there are different kind of positive numbers. Turnaround results are a keenly watched development, as it typically causes a sharp change in trajectory for the stock. For example, a positive turnaround by way of either YoY or QoQ growth will surely make the stock surge as the past several quarters’ underperformance would have corrected the stock to a great degree. On the other hand, a negative turnaround will cause not only a severe correction in the stock, but is often regarded as a first signal of hidden corporate governance issues. Positive turnarounds and consistent quarterly numbers are also another short-term indication, that this performance is more likely to continue. Another type of powerful quarterly numbers is when a company posts powerful growth on both the traditional YoY parameter as well as the more radical or difficult QoQ metric. Such performance shows that the company is growing at a faster pace, which will often cause the stock to be re-rated, which means that the market would be assigning it a higher price not just on earnings expansion but on P/E multiple expansion. Quarterly numbers are also important for stakeholders other than shareholders, like, for the promoters, management, employees, lenders, business partners, associates etc, as everyone wants to do business with healthily growing companies. But with thousands of stocks and hundreds of sectors to monitor, quarterly performance reviews are a difficult task for most stakeholders. To make this task easier, Seasonal Magazine brings you ’The Earnings Power List’ that identifies turnaround performers, best performers, and above-average performers, based on Q3 numbers. Needless to say, given a positive market scenario, these are the stocks that are set to scale up, at least till Q4 or annual results are out by April beginning to May end, and most probably, much beyond.
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Top 100 Stocks Set to Gain on Q3 Performance
Central Bank of India
Seasonal Magazine
TURNAROUND SU ST AT CENTRAL BANK
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entral Bank of India’s year-on-year performance in Q3 has been quite good on most fronts. While net profit rose by 59.3%, net interest income also rose by 19.6%, showing that the core lending business is growing satisfactorily. The result is also a far cry from the one-off loss-making quarter of Q4. In fact, even the sequential or QoQ performance for this quarter has its good points like total revenue growing by 2.43%. However, the Mumbai based public sector lender couldn’t match the last two sequential quarters’ bottomline outperformance, based equally on higher operating and interest expenses. Otherwise, Q3 numbers signal that the turnaround that started with Q1 of this fiscal is continuing at this large-sized lender. CBI could even make Net NPA remain flat at 3.79% on a QoQ basis. Chairman & Managing Director MV Tanksale’s strategies seems to be working in the right direction. The bank has already achieved 12% credit growth for the first nine months of this fiscal, and is now confident of achieving RBI’s target of 16% credit growth for the whole year. While many peer banks are struggling on this front, CBI’s strategy of concentrating on home loan and SME loans has come to the aid of the bank on achieving the desired credit growth target. Central had disbursed home loans worth Rs 6,000 crore in the first nine months of the current financial year. The bank is now expecting a further uptick in their home loan offtake - of around Rs. 4000 crore more - after RBI further cut lending rates recently. To facilitate meeting such targets, Central Bank had recently scaled down their base rate from 10.50 per cent to 10.25 per cent. As a result of this, most lending rates from Central will decrease. At the same time, though deposit rates too will marginally come down, the bank has been prudent to offer time-limited schemes through which short-term deposit targets can be met. It is a win-win situation for the bank as well as its deposit customers. For example, the bank’s Chennai headquartered South Zone recently did a soft launch of a new fixed deposit scheme - Cent 101 - in which the bank will pay 8.55% interest, which is among the highest in the industry now. Under this scheme Central will also offer 9.05 per cent to the senior citizens.
MV Tanksale, CMD
TAINS 59%
The scheme is suitable for many needs as it addresses a wide range with minimum amount that can be deposited under this scheme being Rs 1000 while maximum limit is Rs 10 crore. The scheme has been an instant success with CBI South Zone attracting Rs. 58 crore within days. Earlier, the bank came out with a similar plan for 555 days - Cent 555 - which was a great success. On the credit front too, the bank has been uniquely proactive. A recent example was the Mega Credit Camp for all its branches in the key Mumbai and Thane regions. Despite being a single day camp, loans amounting to Rs. 123.75 crore were distributed to over 347 customers from 86 branches in these two regions. Growing its MSME business has been another key focus area under Chairman Tanksale. Recently, the bank tied up with Small Industries Development Bank of India (SIDBI) for enhancement of credit flow to MSME sector. To shore up its capital and thus power further growth, Central Bank of India will raise capital up to Rs 2,046 crore by mid-March through a preferential allotment route as part of the capital infusion by the government. Post the capital raising, the tier-I capital of the bank will go above 8 percent with a capital adequacy ratio of around 12 percent. SM
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Top 100 stocks Set to Gain on Q3 Performance
WOCKHARDT’S PROFIT DOUBLES IN Q3, PROVES STOCK RALLY IS JUSTIFIED 101%
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nvestors were keenly awaiting Wockhardt’s results as its stock had run up almost 370% in the yearto-date. However, the Pharma major didn’t disappoint as consolidated net profit doubled to Rs 428 crore in the third quarter of financial year 2012-13, from Rs 213 crore in the year ago period. The surge in bottomline was more impressive as growth in consolidated net sales was 18.7%, to Rs 1,435 crore from Rs 1,208 crore during the same period. Profitability was up with ‘Earnings before Interest, Tax, Depreciation and Amortisation’ (EBITDA) surging 45% YoY to Rs 544.8 crore and operating profit margin rising by 700 basis points YoY to 38% in the third quarter. Net profit included one-time gain of Rs 10.6 crore on divestment of nutrition business, which is an after-effect of the CDR process. Other income increased to Rs 14 crore from Rs 8.5 crore YoY. Wockhardt’s business in the US , for the three months ended
December 31st, recorded a 45% growth over the corresponding period last year. Growth in American market was driven by a few niche products that were launched last year. During the quarter under review, the company also received three product approvals in US. Wockhardt’s international business contributed 83% to its total revenues during the quarter. Its business in the UK recorded a growth of 19% compared to the corresponding quarter of the previous year. This was impressive as UK market was relatively stagnant for most players. Another core market for the company, Ireland, recorded a growth of 3% for the period under review. Wockhardt’s India business grew 14% and the
emerging markets business grew 18% during Q3 on a YoY basis. The pharma company’s Q3 performance reiterated that the stock rally was not just based on the successful execution of the CDR process. Even before Q3, Wockhardt’s fundamental performance had improved, with quarterly net profit doubling within the last four quarters. Market re-rated the pharma scrip continually through the year-to-date, making Wockhardt soar from Rs. 372 to Rs. 1895 now. Even a change to T Group that limited short-term trading in the scrip was not enough to contain the Wockhardt rally. Founder and Chairman Habil Khotakiwala’s wealth creation legacy should be inherited by sons
Dr. Murtaza Khorakiwala who is MD of Wockhardt, and Dr. Huzaifa Khorakiwala who is ED. Daughter Zahabiya Khorakiwala heads Wockhardt Hospitals, which is yet to be listed. At current prices, Wockhardt trades at a TTM priceearnings multiple of 16.50 times, and the valuation may appear even more attractive going forward because if in Q4 Wockhardt delivers a good bottomline, the trailing twelve months valuation will appear very attractive as the P&L will be shedding the one-off loss-making quarter of last March. Even otherwise, the stock should have a positive bias as competitors like Sun Pharma are trading at 25 times TTM P/E. SM
Seasonal Magazine
Wockhardt's Biotechnology Manufacturing Plant in Aurangabad, inaugurated by India's Former President Dr. A P J Abdul Kalam
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Top 100 Stocks Set to Gain on Q3 Performance Bank of India
Seasonal Magazine
WHY THIS POSITIVE TURNAROUND MAY SUSTAIN
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hat Bank of India made a strong turnaround from the previous quarter, nobody is doubting. Because, from September quarter’s slumping bottomline of just around Rs. 302 crore in profit, BoI has rebounded with a profit of over Rs. 803 crore. Not only is this number in match with all other quarters of the year-to-date, but it is a handsome 12.20% growth on a year-on-year basis from the corresponding quarter of the previous fiscal. There were several highlights to this performance. Firstly, the bottomline expansion was aided by both net interest income growth and other income growth, which means the bank is performing on all core fronts. Secondly, NPAs have come down noticeably on a sequential basis. Though the good bottomline numbers was also helped by tax expenditure coming down sharply, several other positive points are to be noted in this large-sized public sector lender’s performance. Bank of India outperformed much of its public sector peers, as well as some comparable private sector peers in the core performance metric of loan book expansion. Advances came in at 20.20%, clearly ahead of industry averages. BoI made good use of the better prospects for the infra sector, with infra sector growth for the bank coming in at 24%. Gross NPAs, Net NPAs, and provisions have all fallen on a sequential basis, indicating that asset quality is steadily improving. Net NPAs now stands at 1.97% while provisions and contingencies are at Rs. 916 crore. It goes to the credit of Chairperson Vijayalakshmi R Iyer who assumed charge mid-quarter that the management has not gone in for any unnecessary one-off cleansing of the books, which has been the practice at some peer banks whenever there was a leadership change. She is one of public sector banking’s most experienced leaders now, having served Union Bank and Central Bank earlier. At Union Bank,
Bank of India, Corporate Office
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her last tenure was as General Manager in charge of Information technology and Risk Management, which are two core areas of expertise that Bank of India may benefit from. At Central Bank, where VR Iyer served as Executive Director, she was in charge of varied portfolios like Credit, Treasury, Forex, IT, CBS, Risk Management, and Inspection / Audit, which makes her a well-rounded leader suitable to lead Bank of India. The top leadership including Iyer realizes that one area where the bank’s performance can be scaled up considerably is availability of funds, and as such, BoI has started moving to launch a $500 million dollar bond issue for which they are being helped by Barclays Capital, Citigroup, HSBC, Deutsche Bank, JP Morgan and Bank of America-Merrill Lynch. If BoI can conclude the bond issue without much delay, it will be further armed to take on the opportunities arising from the budget and the probable rebound in the economy. However, the management is also showing no complacency on the NPA front, as, on a
year-on-year basis, Gross NPAs had moved up. BoI has recently formulated an aggressive strategy to deal with NPAs that will see it shedding up to Rs. 2600 crore of NPAs by next fiscal end. Of this, around Rs. 625 crore will be shed in this ongoing fourth quarter itself. The bank has also been executing on a comprehensive and regular strategy to deal with NPAs that include recovery camps, lok adalats, separate schemes for urban and rural NPAs, using SARFAESI Act wherever applicable, as well as appointing an asset reconstruction company as recovery agent. If this strategy gets fully executed, it will provide a major boost to the bottomline in the coming quarters. The Bank of India stock had swiftly run up from yearly lows of Rs. 250 to as high as Rs. 390 within a short span of time, and is now in a consolidation phase. BoI stock is always keenly watched by investors as it had run up by a stunning 67 times within a span of just ten years (2000-2010), and it still has the DNA for such outperformance. SM
Seasonal Magazine
VR Iyer, CMD
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Top 100 stocks Set to Gain on Q3 Performance 68% Reliance Capital
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Reliance Capital’s net profit rose by 67.77 percent yearon-year to Rs 101 crore in the third quarter of financial year 2012-13. Consolidated total income grew by 8 percent to Rs 1,716 crore from Rs 1,587 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 12.5 percent YoY to Rs 747 crore in OctoberDecember quarter. Operating profit margin improved 100 basis points YoY to 43.6 percent in the third quarter.
Seasonal Magazine
Reliance Power
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Reliance Infrastructure Reliance Infrastructure reported sharp growth in its net profit due to exceptional gain while in core operations, numbers were lower. Net profit rose 58.4 percent yearon-year to Rs 659 crore in the third quarter of financial year 2012-13 on exceptional gain of Rs 418 crore. Even its other income jumped 65.30 percent to Rs 243 crore from Rs 147 crore during the same period. After removal of exceptional gain and other income, the net profit stood at Rs 145 crore. Total income fell nearly 23 percent to Rs 3,455 crore from Rs 4,478 crore, and earnings before interest, tax, depreciation & amortisation (EBITDA) slipped 25 percent YoY to Rs 489 crore in OctoberDecember quarter.
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Anil Dhirubhai Ambani Group company Reliance Power reported better-than-expected numbers in third quarter of financial year 2012-13 with the consolidated net profit growing more than 30 percent year-on-year and 10.7 percent quarter-on-quarter to Rs 265.7 crore, sending shares 4 percent higher. Earnings were boosted by higher plant load factors at Rosa unit and higher fuel cost. Full availability of fuel leading to stronger generation also contributed to higher revenues in the quarter. Generation in the second quarter was weak due to planned outages and maintenance shutdown by the company. Consolidated net sales jumped 3 times year-on-year and 35.7 percent
quarter-on-quarter to Rs 1,464 crore in OctoberDecember quarter. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 3.5 times YoY and 25 percent QoQ to Rs 493 crore in October-December quarter. EBITDA margin increased 300 basis points YoY to 33.7 percent, but that was down 275 basis points QoQ. Other income declined to Rs 122 crore from Rs 217 crore year-on-year due to cash deployment in capex. Rosa unit works on a cost-plus earnings model; therefore, higher fuel costs directly impact the topline and plant level return on equity positively.
Dr Agarwals Eye Hospitals Dr Agrawals Eye Hospital has reported a standalone sales turnover of Rs 25.30 crore and a net profit of Rs 1.08 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.37 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 24.11 crore and net loss was Rs 0.63 crore., and other income Rs 0.45 crore.
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Turnaround From Loss
Turnaround From Loss
Network18 Media and Investments reported a net profit at the consolidated level for the December quarter, led by strong performances in its broadcasting and digital businesses. The company’s net profit stood at Rs 6.8 crore and operating profit at Rs 10.6 crore. Consolidated quarterly revenues surged to Rs 697.4 crore, up 52 percent year-on-year. “Our recast balance sheets helped us rationalize our interest payouts and our television and digital assets turned in strong operational performances,” said Raghav Bahl, Managing Director, Network18 in a press statement. Consolidated quarterly revenues of TV18 broadcast, in which Network18 holds majority stake, stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter. Network18’s digital content and e-commerce divisions together logged revenues of Rs 119.6 crore, up 104 percent over last year. “We are extremely pleased that all our broadcast and digital content operations grew their margins despite softness in the advertising environment,” B Saikumar, Group CEO said in the release, adding, “Our e-commerce businesses have turned in another stellar quarter doubling over the previous year.” The company’s digital content operations recorded revenues of Rs 22.4 crore, growing around 20% year on year. Moneycontrol.com jumped to an unprecedented 14.9 million unique visitors in December 2012 as per Comscore World Report, the company said in the press release.
Finolex Industries Finolex Industries has reported a standalone sales turnover of Rs 614.45 crore and a net profit of Rs 30.61 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 11.31 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 568.70 crore and net loss was Rs 1.76 crore., and other income Rs 3.87 crore.
3237% Turnaround From Loss
Seasonal Magazine
Network 18
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Top 100 stocks
Set to Gain on Q3 Performance
SpiceJet
14100% Turnaround From Loss
SpiceJet has reported a whopping Rs 102 crore net profit for the December quarter against Rs 39 crore loss it reported in the year ago period, boosted by improved yields and better fleet optimisation. Sales also improved 37% YoY to Rs 1603 crore, on robust passenger load factors in the holiday season (OctDec). Yields or earning per passenger grew 29% to Rs 4412 due to higher fares which airlines generally charge to passengers during peak season. The airline also improved its market share to 19.20% from 16.80%,YoY by flying 80% more passengers on seven international routes on its network. On domestic routes too, it performed well at the operating level. Neil Mills, the airline’s CEO in a statement said, “In a challenging environment when all airlines are bleeding, SpiceJet has put up a good show by adopting strategies that boosted overall performance.”
SKS Microfinance SKS Microfinance has announced its third quarter results. The company’s Q3 net profit was at Rs 1.2 crore versus loss of Rs 428 crore, year-on-year, YoY. Its total income from operations was down at Rs 85 crore versus Rs 87 crore, YoY. Its net interest income (NII) was up at Rs 50 crore versus Rs 45.6 crore, YoY. Its provisions & write-offs at Rs 28.36 lakh versus Rs 233.56 crore, QoQ.
4140% Turnaround From Loss
Dhanlaxmi Bank
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Turnaround From Loss
Kerala-based Dhanlaxmi Bank turned profitable in the third quarter (October-December, 2012-13) recording a net profit at Rs 4.4 crore as against a net loss of Rs 37 crore a year ago, on the back of lower employee cost that dropped to Rs 45 crore compared with Rs 73 crore in Q3, FY13. In the recent past, a slew of senior management officials left the bank resulting in lower salary bill. A year back, Amitabh Chaturvedi (the then MD) led management was replaced by the old management based in Kerala. Even though the bank reported a net profit after a long spell, its asset quality looks fraught with huge stress. Gross non-performing asset (NPA) ratio worsened significantly from 0.77% to 4.19% year-on-year. Provisions for bad loans zoomed from Rs 41 lakh to about Rs 10 crore y-o-y. Net NPA ratio shot up to 2.93% as against 0.35% during the same time. Net interest income or the difference between interest earned and paid out, rose more than 17% to Rs 75 crore.
Glenmark Pharma Healthcare firm Glenmark Pharma reported stronger-thanexpected numbers on all parameters, with the consolidated net profit growing 4.6 times year-on-year to Rs 213 crore in the third quarter of financial year 2012-13. Consolidated total income grew by 34 percent to Rs 1,381 crore from Rs 1,031 crore during the same period, including out-licensing income of Rs 49.3 crore from Forest Labs. Out-licensing income stood at Rs 23.83 crore in the third quarter of previous financial year 2011-12. Glenn Saldanha, Chairman & MD said, “The US, India and Russia markets performed exceptionally well and continue to drive growth for the company.” Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped more than three times yearon-year to Rs 320 crore in October-December quarter. Operating profit margin increased quite sharply to 23.1 percent in December quarter as against 10 percent in a year ago quarter. Revenue from the generics business jumped 33 percent YoY to Rs 580.99 crore in December quarter. Specialty formulation business excluding out-licensing revenue increased 31.22 percent year-on-year to Rs 735.76 crore in the third quarter. “The option agreement with Forest Laboratories for the development of novel mPGES-1 inhibitors and the USFDA approval for Glenmark’s inlicensed molecule - Crofelemer has come as a big boost and renewed validation for our world-class drug discovery capabilities. While the option agreement with Forest Labs marks our seventh outlicensing deal in the innovation R&D space; the USFDA approval for Crofelemer has paved the way for Glenmark becoming the first Indian company to launch an New Chemical Entity (NCE) across multiple geographies,” Saldanha added.
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8512% Turnaround From Loss
TV18 Broadcast TV18 Broadcast turned corner during the quarter ended December, reporting a consolidated net profit of Rs. 21.3 crore, driven by strong growth in broadcasting and distribution revenues. Quarterly revenues stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter. The company had been reporting net losses at the consolidated level for five successive quarters till September 2012. “Our net distribution income (subscription revenues minus carriage fee) has finally broken into positive territory and our recast balance sheet has helped us rationalize our interest payouts,” said Raghav Bahl, Managing Director, Network18 in a press statement, adding, “we are now entering an exciting phase in our journey as we strengthen our existing operations and consolidate our regional acquisition.” The company recently raised Rs 2700 crore through a rights issue to fund its acquisition of Eenadu group-promoted ETV. Advertising, the biggest contributor to broadcasting revenues grew 10 percent over last year to Rs 312 crore, a 27 percent gain sequentially. Subscription revenues vaulted to Rs 29 crore from Rs 3 crore during the September quarter, and distribution revenues surged 52 percent sequentially to Rs 144 crore. “Our broadcast operations grew their margins despite softness in the advertising environment,” said Group CEO B Saikumar, said in the press statement.
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Top 100 Stocks
Set to Gain on Q3 Performance
Force Motors Force Motors has reported a standalone sales turnover of Rs 436.32 crore and a net profit of Rs 8.13 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.30 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 522.44 crore and net profit was Rs 2.34 crore., and other income Rs 0.05 crore.
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2491% Fortis Malar Hospitals Fortis Malar Hospitals has reported a standalone sales turnover of Rs 26.05 crore and a net profit of Rs 36.02 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.29 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 23.85 crore and net profit was Rs 1.39 crore., and other income Rs 0.41 crore.
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Mahindra and Mahindra Financial Services Non-banking finance company Mahindra and Mahindra Financial Services’ consolidated net profit grew by 35.8 percent year-on-year to Rs 216 crore in the third quarter of current financial year 2012-13. Consolidated income from operations rose by 38.4 percent to Rs 1,057.3 crore from Rs 764 crore during the same period. The firm is seen as a frontrunner for a new banking license.
Jet Airways Turns Profitable in Q3 In an Emphatic Way Does Jet really need to lure Etihad at all costs? Jet Airways has reported Rs 85 crore profit in the December quarter against Rs 101 crore (YoY) loss, boosted by higher yields and lower fuel cost. While gross yields per passenger grew 18.6%, aviation fuel cost fell 3% to Rs 1688 crore, YoY. Revenues rose nearly 7 percent - lower than expected - to Rs 4,205.8 crore from Rs. 3,939.2 crore, YoY. The firm has reported foreign exchange loss of Rs 48 crore during the quarter as against gain of Rs 179 crore, QoQ as the Rupee remained weak against the dollar. The company said that it has stopped capacity on loss making routes and will re-deploy aircraft on profitable high density routes in ensuing months. Currently, aircraft on ground have impacted topline by Rs 55 crore. Nikos Kardassis, CEO, Jet Air, said that the airline is taking all measures to boost earnings and cut costs. The airline is keen to enhance ancillary revenues to boost overall performance. He further said, high aviation fuel cost and currency fluctuation remains a cause of concern for the sector. However, Q4 passenger bookings are healthy but there could be some seasonality impact. The past year-to-date was sweet for Goyal when his strategies were favourably contrasted with the rest of the pack - from AirIndia to Kingfisher to SpiceJet. But did Naresh Goyal really need FDI in
aviation? Maybe not, with even his investment into Jet coming from abroad. But FDI in aviation wouldn’t hurt, and he promptly went in for one of the best partners - Etihad. But in true UAE style, Abu Dhabi’s airline is trying to extract a too favourable deal from Jet.
Turnaround From Loss
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Top 100 stocks
Set to Gain on Q3 Performance
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Maruti Suzuki
Escorts
India’s largest passenger car maker Maruti Suzuki said that net profit in the third quarter more than doubled year-on-year to Rs 501 crore, helped by strong sales growth, led by the diesel powered Ertiga multi-utility vehicle and the compaft DZire sedan. Its first profit rise in six quarters sent its shares surging to a three-year high. The company’s net sales in Oct-Dec were up 46 percent froma year ago to Rs 10,957 crore. Maruti Suzuki has had tough times over the last one year. While sales, especially of petrol driven vehicles, remained sluggish, there were several instances of labour strikes at its Manesar plant that hit production. In the year-ago quarter too the company lost production of around 40,000 units due to strike. A labour unrest at the plant in July last year left a human resources manager dead and several other executives injured. The plant remained shut for around one month post the violence. Return to full scale operations at Manesar this quarter and demand for new Swift, DZire and Ertiga have given it a big boost. The Ertiga was launched in April 2012 and the new compact DZire was introduced in Feb 2012. Maruti Suzuki sold 2.69 lakh units in Oct-Dec in the domestic market, up 27 percent, while exports rose 17 percent to 32,496 units. Operating profit margin last quarter improved 270 basis points to 7.9 percent and earnings before interest, tax, depreciation & amortisation (EBITDA) jumped to Rs 890 crore from Rs 417 crore.
Escorts has reported a standalone sales turnover of Rs 1,028.18 crore and a net profit of Rs 28.14 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 13.59 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 829.77 crore and net profit was Rs 10.86 crore.
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Zee Entertainment
Edelweiss Financial Services
Zee Entertainment Enterprises’ consolidated net profit rose 2.8 percent quarter-on-quarter - higher than expected - to Rs 193.3 crore in the third quarter of financial year 201213. Meanwhile, consolidated revenue declined 1.5 percent to Rs 938.8 crore from Rs 953.5 crore during the same period. YoY growth in both topline and bottomline was much higher. Numbers were better than expected on every parameter. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 19.7% QoQ to Rs 261 crore in October-December quarter. EBITDA margin improved 490 basis points QoQ to 27.8 percent. Advertisement revenue too grew stronger-than-expected 28.8 percent YoY to Rs 509.4 crore in December quarter. Subscription revenue rose by 25.6 percent YoY to Rs 409.8 crore while domestic subscription revenue stood at Rs 296.1 crore for the quarter.
Edelweiss Financial Services' consolidated net profit grew by 49 percent year-on-year to Rs 44.95 crore in the third quarter of financial year 2012-13, from Rs. 30.25 crore in the year-ago period. Consolidated total income rose by 17.95 percent to Rs 536.7 crore from Rs 455 crore during the same period.
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Kitex Garments has reported a sales turnover of Rs 96.51 crore and a net profit of Rs 10.36 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.94 crore. For the quarter ended Dec 2011 the sales turnover was Rs 82.88 crore and net profit was Rs 5.63 crore., and other income Rs 1.39 crore.
Seasonal Magazine
Kitex Garments
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Top 100 Stocks
Set to Gain on Q3 Performance
Union Bank’s Q3 Strong With 38% Bottomline Growth State-controlled lender Union Bank of India surprised the street by reporting net profit growth of 37.7 percent year-on-year to Rs 302.4 crore in the third quarter of financial year 2012-13, led by lower non-performing assets. Net interest income rose 2.6 percent to Rs 1,891.4 crore from Rs 1,843.6 crore during the same period. Gross non performing asset (NPA) improved by 30 basis points quarter-on-quarter to 3.36 percent and net NPA fall by 36 basis points QoQ to 1.7 percent in the OctoberDecember quarter. However, provisions against bad loans increased quite sharply to Rs 857.3 crore in the third quarter as against Rs 487 crore in second quarter of FY13. Capital adequacy ratio stood at 10.78 percent as against 11.39 percent QoQ. The board of directors of the stateowned lender approved raising equity capital up to Rs 1,000 crore on preferential / QIP / rights basis towards capital infusion in addition to Rs 1,500 crore approved in board meeting held on December 27, 2012. Union Bank has had three strong quarters in a row, which made the share price soar towards the later period of year-todate. The large-sized public sector bank also started reaping fruits from its program of pruning its corporate business and growing its retail business. Also remains one of the most well-branded public sector banks.
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Muthoot Capital Services Muthoot Capital Services has reported a standalone sales turnover of Rs 26.54 crore and a net profit of Rs 5.16 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.03 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 16.66 crore and net profit was Rs 3.39 crore., and other income Rs 0.02 crore.
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Turnaround From Loss
Blue Dart Express Blue Dart Express’ net profit doubled to Rs 45 crore in the third quarter of financial year 2012-13 from Rs 22.4 crore in a year ago period. Net sales jumped 16.5 percent to Rs 458.4 crore from Rs 393.5 crore during the same period. “The company has changed its accounting year to commence from April 1 of every year and to end on March 31 of the following year, to proactively comply with the proposed Companies Bill 2012. Consequent to this, the current accounting period would be for the 15-month period from January 1, 2012 to March 31, 2013,” Blue Dart said.
Essar Oil Essar Oil has posted a net profit of Rs 32 crore for the December quarter when compared with a loss of Rs 362 crore, year-on-year mainly on improved margins. The company has registered gross refining margins at USD 9.75/bbl as against USD 3.82/bbl reflecting higher complexity benefits post expansion of projects. This is the first quarter showing the full impact of the capacity expansion to 20 MTPA (million tonnes per annum). In previous quarter, the company had posted a GRM of USD 7.86 a barrel, a discount of USD 1.2 a barrel as compared to Singapore complex at USD 9.1 a barrel. The company’s net sales grew 14% to Rs 23, 817 crore,YoY. LK Gupta, Essar Oil’s managing director and CEO said, “Our Vadinar Refinery has demonstrated excellent operating performance during the quarter post completion of its expansion & optimization projects. Going forward, we will continue to optimise our crude diet and product slate further to improve our earnings, creating greater stakeholder value.”
Navneet Publications has reported a standalone sales turnover of Rs 125.02 crore and a net profit of Rs 11.24 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.00 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 84.42 crore and net profit was Rs 4.01 crore., and other income Rs -0.77 crore.
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Somany Ceramics
73%
Somany Ceramics has reported a standalone sales turnover of Rs 267.19 crore and a net profit of Rs 8.16 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.27 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 217.46 crore and net profit was Rs 4.73 crore., and other income Rs 0.02 crore.
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DCB
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Development Credit Bank’s (DCB) net profit grew by 72.44 percent year-on-year to Rs 26.9 crore in the third quarter of current financial year 2012-13. Net interest income increased 20 percent to Rs 72 crore from Rs 60 crore during the same period. Gross non-performing assets (NPAs) declined marginally to 3.80 percent in October-December quarter as against 3.86 percent in previous quarter while net NPAs rose by 5 basis points QoQ to 0.73 crore in the quarter.
23% Indiabulls Realestate Indiabulls Real Estate has reported a consolidated sales turnover of Rs 331.29 crore and a net profit of Rs 50.06 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 20.04 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 356.47 crore and net profit was Rs 40.81 crore., and other income Rs 20.85 crore.
Bangalore based state-owned lender Syndicate Bank’s third quarter (October-December, FY13) net profit surged more than 50.3% year-onyear to Rs 508 crore, boosted by a one-off tax refund of Rs 141 crore. “We have got the tax write-back based on our exposure in rural credit,” M G Sanghvi, CMD, Syndicate Bank told. “We may continue to get this benefit in the March quarter as well. All state-owned banks also get the same advantage. We are shifting focus to retail and mid corporate lendings. We do not see any fresh threat on asset quality. In between April 1 and December 31, our loans expanded 9%,” he said. However, if one excludes the tax credit component, net profit would have risen by just 8.50% y-o-y to Rs 367 crore. During the quarter, the net interest income or the difference between interest earned and paid out, grew nearly 6% to Rs 1,400 crore. Syndicate’s global loan book scaled up more than 17% y-o-y to Rs 1.37 lakh crore while the domestic credit rather recorded a bit muted growth just at 13% y-o-y at Rs 1.16 lakh crore. Retail credit accounts for more than 17% of the domestic loan book. Gross non-performing asset (NPA) ratio declined 16 basis points to 2.31% quarter-on-quarter. Net nonperforming ration stood at 0.85% as against 0.92% a quarter back. Provisions against bad loans upped at Rs 530 crore compared with Rs 480 crore in previous quarter. During the quarter, the lender restructured loans a little less than Rs 1,000 crore. Total restructured book was at about Rs 10,000 crore. The PSB bank’s stock has been a good performer in the year-to-date. The compelling case for Syndicate Bank stock was obvious during the first two quarters of year-to-date. The valuations were that attractive. Then came two blockbuster quarters in Q1 and Q2 and suddenly all banking stock pickers were scrambling for Syndicate stock.
50%
Omaxe has reported a consolidated sales turnover of Rs 567.93 crore and a net profit of Rs 28.85 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.81 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 451.81 crore and net profit was Rs 19.32 crore, and other income Rs 9.68 crore.
49%
Kolte-Patil Developers Kolte-Patil Developers has reported a consolidated sales turnover of Rs 225.43 crore and a net profit of Rs 38.86 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.17 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 73.91 crore and net profit was Rs 8.03 crore., and other income Rs 2.94 crore.
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Syndicate Bank Q3 Profit Grows 50%
Omaxe
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Top 100 stocks
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SBT
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ICICI Bank
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30%
India’s largest private sector lender ICICI Bank‘s third quarter (October-December) standalone net profit jumped more than 30% year-on-year to Rs 2,250 crore, driven by robust net interest income, which increased 29% to Rs 3,500 crore. Other income too climbed 17% to Rs 2,215 crore adding to the profit margin. “The rise in profit came on the back of growth and efficiency parameters,” Chanda Kochhar, MD & CEO, ICICI Bank told reporters in a conference call. “Going forward, we expect slight improvement in net interest margin by a few basis points. Our growth in loans is well-balanced. We would grow our retail loans at 20%. Also, there is a room for growing our international business wherein the net interest margin stood at 1.3%,” she said. The bank expanded its loans by 16% y-o-y to Rs 2.87 lakh crore while the deposits grew at a slower pace by about 10% to Rs 2.86 lakh crore. The share of current and savings account (CASA) was at 40.9% as against 40.7% in the second quarter. Net interest margin logged a rise of 37 basis points to 3.07% y-o-y. Provisions against bad loans inched up to Rs 369 as against Rs 341 crore a year back. However, the same came down in comparison with the July-September quarter recorded at Rs 508 crore. Provision coverage ratio stood at 77.7% as on December 31. “In Q2 provisions were up due to one single corporate account which we had provided for. Earlier, we had sold our credit exposure in Kingfisher airlines. Currently, we do not have any plan for selling our (stressed) loan portfolios,” Kochhar said. During the quarter, the gross nonperforming asset (NPA) ratio improved from 3.54% to 3.31% quarteron-quarter. Net NPA ratio was at 0.76% compared with 0.78% a quarter back. Net restructured book remained at Rs 4,169 crore, little changed from the previous quarter. ICICI Bank, according to Kochhar, does not need to raise any equity capital in the near term. Its capital adequacy ratio was 19.53% of which tier-I (equity capital) was at 13.25% as on December 31.
State Bank of Travancore‘s net profit grew by 30.4 percent year-on-year to Rs 132 crore in the third quarter of financial year 2012-13, sending shares nearly 6 percent. Profit of the bank rose by 25 percent YoY to Rs 449 crore in the first nine months of current fiscal. “Growth in advances resulting in a higher net interest income aided the bank to achieve a growth in the net profit,” State Bank of Travancore said. Net interest income went up by 14.04 percent to Rs 1,511 crore from Rs 1, 325 crore during the same period. Net interest margin stood at 2.50 percent in the October-December quarter. Gross non-performing asset (NPA) increased to 3.04 percent from 2.82 percent in the corresponding quarter of last fiscal and 2.98 percent in previous quarter. Meanwhile, net NPA declined to 0.66 percent from 0.73 percent QoQ. Provisions against bad loans moved up to Rs 124.3 crore in the December quarter as against Rs 117.6 crore in September quarter. The capital to risk weighted assets ratio (CRAR) of the bank stood at 11.40 percent during the quarter, down by 101 basis points compared to 12.41 percent in previous quarter. The regulatory minimum prescribed by Reserve Bank of India is 9 percent. Deposits increased 21 percent YoY to Rs 80,043 crore while gross advances rose by 17 percent year-on-year to Rs 65, 560 crore in December quarter. State Bank of Travancore increased its presence in another 75 new centres in 201213, taking the total number of branches to 954. “21 new ATMs were installed taking the total ATM network of the bank to 950. Bank’s ATMs form part of more than 25000 strong ATM network of State Bank group. In Kerala, Bank has 734 (77 percent) branches and 782 (82.31 percent) ATMs,” the bank said.
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V-Guard Industries has reported a standalone sales turnover of Rs 349.04 crore and a net profit of Rs 15.35 crore for the quarter ended Dec '12. Other income for the quarter was Rs 1.46 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 246.68 crore and net profit was Rs 12.45 crore., and other income Rs 0.76 crore. During the pastyear-to-date, market couldn’t resist re-rating the scrip as quarterly net profit growth has been strong within the last four quarters. Even a stake sale by a promoter group entity was not enough to break the rally in V-Guard Industries. V-Guard stock soared from a year-to-date low of Rs. 168 to Rs. 464 now. Above average corporate governance practices also helped. But Founder Kochouseph Chittilappilly is not just an industrialist, but a humanist who made waves for kickstarting a kidney donation program in Kerala by donating his own kidney. His wealth creation legacy should be inherited by son Mithun K Chittilappilly who is MD of V-Guard.
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V-Guard’s Q3 Profits Up By 23%, Sales Up by 42%
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L&T Finance’s Q3 Profit Soars Multifold L&T Finance Holdings’ consolidated net profit grew 3 times year-on-year to Rs 294.6 crore in the third quarter of financial year 2012-13. Gross non-performing asset (NPA) came in at 2.39 percent and net NPA at 1.56 percent as on December 31, 2012. Loans and advances rose by 30.77 percent year-on-year to Rs 31,230.5 crore in October-December quarter. The re-rating that L&T Finance long hoped for had finally come in the year-to-date, helping the NBFC break over its narrow trading range ever since its IPO. The re-rating was due to inorganic growth by buying out companies in other sectors like housing finance, and prospects of repeating the same in sectors like wealth management. The firm’s semi-urban focus is also likely to be a growth engine as more of rural India becomes semi-urban.
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GIC Housing Finance’s Q3 Surges by 90%
Seasonal Magazine
GIC Housing Finance has reported a standalone sales turnover of Rs 139.48 crore and a net profit of Rs 23.21 crore for the quarter ended Dec ’12. For the quarter ended Dec 2011 the standalone sales turnover was Rs 112.29 crore and net profit was Rs 12.20 crore. Investors had long waited in the counter, due to the striking resemblance in name and substance with market darling LIC Housing Finance. But this GIC arm took its sweet time in delivering, but late 2012 was that sweet time for investors. Based on vastly improved fundamental performance - equally in bottomline and topline - GIC Housing Finance stock soared to over 66%.
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Geojit BNP Paribas’ Q3 Profit Soars 162% Geojit BNP Paribas Financial Services has reported a consolidated sales turnover of Rs 62.36 crore and a net profit of Rs 14.26 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 5.39 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 51.36 crore and net profit was Rs 5.45 crore., and other income Rs 7.42 crore. Broking business is still not the stock market favourite it once was. But that hasn’t stopped Geojit BNP Paribas from outperforming the market by leaps and bounds. Founder and Managing Director CJ George has played the game well, even after the 2008’s global financial crisis, and all his moves like low leverage and partnering with banking giant BNP and expanding in Middle East are bearing rich fruits now. Backed by celebrity investor Rakesh Jhunjhunwala, who is also a Director, Geojit BNP also made wonderful RoI when it exited the institutional broking business two quarters back. Quarterly bottomline has grown by over 160% during the last four quarters, and market was prompt to soar the scrip from Rs. 15 to Rs. 24 now. All time high stands at Rs. 131, and if this well-managed business grows with the same momentum, and the market improves, Geojit may scale back that high eventually.
Taj GVK Hotels Taj GVK Hotels & Resorts has reported a standalone sales turnover of Rs 66.66 crore and a net profit of Rs 4.27 crore for the quarter ended Dec '12. For the quarter ended September 2012 the standalone sales turnover was Rs 60.84 crore and net profit was Rs 1.68 crore.
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BL Kashyap & Sons BL Kashyap & Sons has reported a standalone sales turnover of Rs 376.76 crore and a net profit of Rs 3.98 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 8.19 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 492.49 crore and net profit was Rs 0.38 crore., and other income Rs 10.47 crore.
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Puravankara Q3 Bottomline Doubles
101%
Real estate firm Puravankara Projects’ consolidated net profit doubled to Rs 64.4 crore in the third quarter of financial year 2012-13 from Rs 32 crore in a year ago period. Consolidated total income grew by 60 percent to Rs 310.6 crore from Rs 194 crore during the same period. fter spending the first quarter of this past year-to-date in a lull, Puravankara Projects stock started soaring, when it became clear that their pioneering efforts in combating the realty sluggishness, like their initiative into affordable housing through subsidiary Provident, was going to bear rich fruits. Quarterly net profit growth at 56% clearly outpaced a decent topline growth of 38%, showing pricing power and competitive strength of brands Purva and Provident, and making the market take the scrip from Rs. 55 to Rs. 105 now. Realty pioneer Ravi Puravankara’s wealth creation legacy should be intact in the hands of son Ashish Puravankara who is now Joint Managing Director. All eyes will be on the strategies of Ashish now, specifically on his strategies to scale back the scrip to post-IPO all-time high of Rs. 535.
Archies Archies has reported a standalone sales turnover of Rs 56.36 crore and a net profit of Rs 2.95 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.08 crore. For the quarter ended September 2012 the standalone sales turnover was Rs 48.04 crore and net profit was Rs 1.19 crore.
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EIH (Oberoi Hotels) EIH has reported a standalone sales turnover of Rs 323.63 crore and a net profit of Rs 32.77 crore for the quarter ended Dec '12. Other income for the quarter was Rs 0.21 crore. For the quarter ended September 2012, the standalone sales turnover was Rs 234.47 crore and net loss was Rs 18.30 crore., and other income Rs 11.72 crore.
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SREI Infrastructure Finance SREI Infrastructure Finance has reported a consolidated sales turnover of Rs 771.44 crore and a net profit of Rs 46.28 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.89 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 687.32 crore and net profit was Rs 19.40 crore., and other income Rs 5.64 crore.
Orbit Corporation Orbit Corporation has reported a consolidated sales turnover of Rs 67.83 crore and a net profit of Rs 12.15 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.21 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 71.54 crore and net profit was Rs 3.88 crore, and other income Rs 1.94 crore.
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Lupin
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Seasonal Magazine
Pharmaceutical firm Lupin’s consolidated net profit grew by 42.6 percent to Rs 335.2 crore in the third quarter of financial year 2012-13. Consolidated revenue rose by 37.4 percent (stronger than expected) to Rs 2,501 crore from Rs 1,820.2 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up nearly 62 percent YoY to Rs 605 crore in the October-December quarter while operating profit margin improved by 370 basis points YoY to 24.2 percent in the third quarter. Other income jumped quite sharply to Rs 26.5 crore from Rs 2 crore YoY.
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Top 100 stocks
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22% Dabur India
24%
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Reliance Industries
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Reliance Industries (RIL) December quarter numbers was boosted by higher gross refining margins (GRMs). The company posted a net profit of Rs 5502 crore. On a YoY basis, profits grew 24% after four quarters of declining returns. Meanwhile, quarterly revenues stood at Rs 96307 crore. Attributing the good performance of the company to robust refining margins, chairman Mukesh Ambani said, “RIL’s performance has improved in the quarter with margin expansion in petrochemicals and record earnings in the refining business.”
Fast moving consumer goods major Dabur India reported mixed results for the third quarter, with consolidated net profit up by 22 percent year-on-year to Rs 211 crore. However, consolidated net sales growth was lower at 12 percent recording Rs 1,631 crore. Dabur CEO Sunil Duggal attributed the shortfall in topline to fall in international sales. But the organic international business has seen margin expansion, he added. The maker of Real Fruit juices, Dabur Chayavanprash and Vatika hair oil reported a EBITDA (earnings before interest, taxes, depreciation and amortization) of Rs 274 crore, up 19 percent from a year ago. Last quarter, EBITDA margin was up 100 bps at 16.8 percent. Dabur’s consumer care business sales grew 12 percent to Rs 1,414 crore, while foods business sales were up 20 percent to Rs 165 crore in Q3. Dabur also runs retail stores under the New U brand, which saw a sales growth of 42 percent at Rs 17 crore. Loss in the retail business also narrowed to Rs 2.7 crore from Rs 3.3 crore. Sales from other segments declined to Rs 35 crore from Rs 37 crore. Its consumer care business profit rose 20 percent to Rs 324 crore. But foods business profit was down 18 percent year-on-year to 18 crore. Dabur’s total expenses last quarter rose 11 percent to Rs 1,392 crore. Advertising and publicity spends, in particular, were up 19 percent (30 percent quarter-onquarter) to Rs 235 crore.
Oberoi Realty Oberoi Realty’s Q3 consolidated net profit was up 31.76% at Rs 134.4 crore versus Rs 102 crore, year-onyear, YoY. Its consolidated net sales were up 53.31% at Rs 284.7 crore versus Rs 185.7 crore, YoY.
Cera Sanitaryware
101% Cholamandalam Cholamandalam Investment and Finance Company has reported a consolidated sales turnover of Rs 668.97 crore and a net profit of Rs 81.51 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.49 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 475.62 crore and net profit was Rs 40.56 crore., and other income Rs 0.50 crore.
Cera Sanitaryware has reported a standalone sales turnover of Rs 128.02 crore and a net profit of Rs 12.00 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 2.00 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 82.48 crore and net profit was Rs 7.95 crore., and other income Rs 1.63 crore.
51%
32% Tata Coffee Tata Coffee has reported a consolidated sales turnover of Rs 418.09 crore and a net profit of Rs 33.76 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.14 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 415.90 crore and net profit was Rs 24.04 crore., and other income Rs 0.01 crore.
Tourism Finance Corporation Tourism Finance Corp of India has reported a standalone sales turnover of Rs 47.09 crore and a net profit of Rs 11.26 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.67 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 31.16 crore and net profit was Rs 9.07 crore., and other income Rs 0.20 crore.
NHPC
47%
State-owned NHPC has reported a standalone sales turnover of Rs 1,010.37 crore and a net profit of Rs 311.77 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 189.02 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 881.98 crore and net profit was Rs 212.18 crore., and other income Rs 203.15 crore.
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Top 100 stocks Set to Gain on Q3 Performance State Bank of Mysore
Berger Paints Berger Paints India has reported a consolidated sales turnover of Rs 920.30 crore and a net profit of Rs 76.80 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.90 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 782.31 crore and net profit was Rs 49.09 crore., and other income Rs 8.19 crore.
State Bank of Mysore has reported its results for the quarter ended Dec ’12. Standalone Net Interest Income (NII) for the quarter was Rs 1,503.03 crore and net profit was Rs 154.77 crore. Other income for the quarter was Rs 112.96 crore. For the quarter ended Dec 2011 the Standalone Net Interest Income (NII) was Rs 1320.73 crore and net profit was Rs 110.94 crore., and other income Rs 106.88 crore.
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56% Harrisons Malayalam
Seasonal Magazine
Harrisons Malyalam has reported a standalone sales turnover of Rs 100.14 crore and a net profit of Rs 10.14 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.17 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 94.11 crore and net profit was Rs 7.30 crore., and other income Rs 0.37 crore.
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40% Power Grid Corporation State-owned Power Grid Corporation of India’s net profit grew by 39.5 percent year-onyear to Rs 1,129 crore in the third quarter of financial year 2012-13. Net sales rose more than 36 percent to Rs 3,362 crore from Rs 2,467 crore during the same period. Numbers were good on most parameters. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 39 percent YoY to Rs 2,923 crore while EBITDA margin improved 180 basis points year-on-year to 87 percent in October-December quarter. Other income increased to Rs 128 crore from Rs 109 crore YoY.
Amara Raja Batteries Amara Raja Batteries’ net profit rose by 23 percent year-on-year to Rs 81 crore in the third quarter of financial year 201213. Total income grew by 23.8 percent to Rs 759 crore from Rs 613.13 crore during the same period. Numbers were strong on MOST parameters. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 15 percent YoY to Rs 122 crore. Operating profit margin declined 130 basis points YoY to 16 percent.
23%
ING Vysya Bank
Yes Bank
Private sector lender ING Vysya Bank’s net profit grew by 35.6 percent year-on-year to Rs 162 crore in the third quarter of financial year 2012-13, helped by lower non-performing asset (NPA). Net interest income rose by 32.7 percent to Rs 403 crore from Rs 303.6 crore during the same period. Gross NPA declined 13 basis points QoQ to 1.77 percent in OctoberDecember quarter while net NPA dropped to 0.05 percent from 0.13 percent QoQ. Provisions against bad loans increased to Rs 24.6 crore from Rs 6.4 crore QoQ. Capital adequacy ratio stood at 12.47 percent in December quarter as against 13.04 percent in September quarter.
Private sector lender Yes Bank‘s third quarter (October-December) net profit grew 35% year-on-year to Rs 342 crore in 2012-13, driven by higher interest income and fee income. Net interest income or the difference between interest earned and paid out, rose by 36% to Rs 584 crore from Rs 428 crore during the same period. Other income increased 48.34 percent YoY to Rs 313 crore in the December quarter. Gross non-performing assets (NPAs) declined 7 basis points quarter-onquarter to 0.17 percent while net NPAs fell to 0.04 percent in third quarter as against 0.05 percent in previous quarter. But provisions against bad loans were up by 78.9 percent QoQ to Rs 56.7 crore in October-December quarter. Capital adequacy ratio improved by 50 basis points QoQ to 18 percent while net interest margin too increased to 3 percent versus 2.9 percent quarter-on-quarter.
36%
36% Jammu and Kashmir Bank Jammu and Kashmir Bank’s (J&K Bank) third quarter net profit rose by 35.7 percent year-on-year to Rs 289.4 crore. Meanwhile, net interest income jumped 31.8 percent to Rs 594.2 crore from Rs 450.8 crore during the same period. Gross non-performing asset (NPA) increased to 1.61 percent as against 1.59 percent QoQ whereas net NPA declined to 0.14 percent as against 0.16 percent QoQ. Provisions against bad loans were Rs 22.4 crore in October-December quarter, up 23 percent compared to Rs 18.2 crore in July-September quarter. Capital adequacy ratio went up to 13.82 percent from 13.73 percent quarter-onquarter. Provision coverage ratio stood at 94.21 percent as on December 31.
Shriram City Union Finance
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Seasonal Magazine
Shriram City Union Finance has reported a standalone sales turnover of Rs 813.54 crore and a net profit of Rs 112.52 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.19 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 536.54 crore and net profit was Rs 83.46 crore., and other income Rs 1.38 crore.
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Top 100 stocks Set to Gain on Q3 Performance State Bank of Bikaner and Jaipur State Bank of Bikaner and Jaipur’s (SBBJ) net profit rose by 31.2 percent year-on-year to Rs 215 crore in the third quarter of financial year 2012-13. Net interest income went up by 7 percent to Rs 673 crore from Rs 629.6 crore during the same period. Gross non-performing asset (NPA) fell by 16 basis points quarter-on-quarter to 3.13 percent and net NPA slipped 3 basis points QoQ to 1.88 percent in the OctoberDecember quarter.
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30% HDFC Bank
IndusInd Bank
Seasonal Magazine
IndusInd Bank has reported its results for the quarter ended Dec ’12. Net Interest Income (NII) for the quarter was Rs 1,800.49 crore and net profit was Rs 267.27 crore. Other income for the quarter was Rs 355.80 crore. For the quarter ended Dec 2011 the Net Interest Income (NII) was Rs 1389.74 crore and net profit was Rs 205.96 crore., and other income Rs 265.12 crore.
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30%
India’s second largest private sector lender HDFC Bank reported 30% year-on-year jump in its third quarter net profit at Rs 1,859 crore, driven by robust growth in other income and loan expansions. During the quarter, net interest income or the difference between interest earned and paid out, rose nearly 22% to Rs 3,800 crore. Other income increased 27% to Rs 1,800 crore aided by growth in fee and commission income. There was a small blip in non-performing assets. Gross non-performing asset (NPA) ratio rose to 1% as against 0.91% in the JulySeptember quarter. Net NPA ratio remained at 0.20%, little changed from the previous quarter. Provisions and contingencies stood at Rs 307, up by Rs 14 crore from the previous quarter. “The bank’s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA coverage ratio based on specific provisions (not including
write-offs, technical or otherwise) was at 80% as on December 31, 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as of December 31, 2012,” HDFC Bank said in a press release. During the three month period, the loan book expanded more than 24% y-o-y to Rs 2.41 crore. Retail loans escalated about 30% y-o-y to Rs 1.30 lakh crore. This is way above the industry credit growth at around 16%. However, the bank refrains from lending long term significantly. Project finance, launched more than a year back, currently stands at just around 4% of the loan book. Going forward, the lender may have to face challenge in sustaining the current growth momentum. The bank’s annualised return of asset (RoA) is at 1.8%, which is all time high for the bank. To maintain this run-rate, according to analysts, HDFC Bank have to further ramp up its credit growth to the tune of around 30% y-o-y, which is a tough call. But any inorganic growth may help the bank to hold on the high level of RoA.
Indiabulls Financial Services Indiabulls Financial Services has announced its third quarter results. The company’s Q3 consolidated net profit was up 31% at Rs 324 crore versus Rs 247.4 crore, year-on-year, YoY. Its consolidated income from operations was up 31% at Rs 1,148 crore versus Rs 875 crore, YoY. Other key performance metrics were as following: The company’s Q3 NII stands at Rs 544 crore. Cost-to-income ratio was around 18% range. Company’s net worth stands at Rs 5,382 crore. Q3 Net Gearing at 4.5x. Net leverage continues to be at comfortable levels. Expect spreads to be stable or marginally higher going ahead. Book grew by 30% in Q3. Expect housing biz to grow by 25-30% going forward. This NBFC which has been re-positioning itself as a housing finance major has openly disclosed that it is currently not interested in a banking licence.
Jubilant Foodworks Jubilant Foodworks, which runs retail chain Domino’s Pizza in India, has reported numbers for the third quarter of financial year 2012-13. Net profit grew by 30 percent yearon-year to Rs 37.7 crore in OctoberDecember quarter. Total income rose by 39 percent to Rs 385.1 crore from Rs 277 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 30.2 percent YoY to Rs 67.7 crore while operating profit margin declined 130 basis points YoY to 17.6 percent in the December quarter. Growth in same store sales too was disappointing coming in at 16.1 percent.
31%
Page Industries Page Industries, the exclusive licensees of Jockey International (USA) in India, has posted net profits of Rs 25.4 crore for the quarter ended December 31, 2012 as compared to Rs 19.9 crore for same quarter last year, an increase of 27.80 percent. Total income was at Rs 216.2 crore for the quarter ended December 31, 2012 whereas it was at Rs 1,72.1 crore for same quarter last year, an increase of 25.62 percent. The company has reported an EPS of Rs 22.79 for this quarter as compared to Rs 17.83 for the quarter ended December 31, 2011. Page Industries, located in Bangalore, is the exclusive licensees of Jockey International (USA) for manufacture and distribution of the Jockey brand innerwear/leisurewear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE. Page Industries is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India.
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28% TTK Prestige Kitchen appliances company TTK Prestige’s net profit rose by 27.5 percent year-on-year to Rs 44.1 crore in the third quarter of current financial year 2012-13. Total income increased 30.75 percent to Rs 438 crore from Rs 335 crore during the same period.
Phoenix Mills has reported a standalone sales turnover of Rs 69.34 crore and a net profit of Rs 34.14 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 12.59 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 50.49 crore and net profit was Rs 26.90 crore., and other income Rs 11.28 crore.
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Phoenix Mills
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Top 100 Stocks Set to Gain on Q3 Performance Marico Mumbai-headquartered Marico’s consolidated net profit rose by 21.4 percent year-on-year to Rs 102 crore in the third quarter of financial year 2012-13. Consolidated net sales grew by 10 percent (below forecast) to Rs 1,164 crore from Rs 1,058 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased more than 36 percent to Rs 166.4 crore from Rs 122 crore year-onyear. Operating margin improved by 270 basis points YoY to 14.2 percent.
Mahindra & Mahindra Utility vehicle maker Mahindra & Mahindra reported standalone net profit for the third quarter rose 26 percent from a year ago to Rs 836 crore. Net sales for the three month period rose 29 percent year-on-year to Rs 10,643 crore. Standalone EBITDA margin, however, declined to 11.2 percent from 12.1 percent a year ago. Including its 100% subsidiary Mahindra Vehicle Manufacturers Ltd (MVML) the net profit was up 30 percent at Rs 915 cr, while revenue rose 28 percent to Rs 11,522.3 crore in Oct-Dec. Last quarter, Mahindra sold 70,483 passenger utility vehicles, up 36 percent from a year ago and it also dispatched 3,814 Verito passenger cars. 6,500 vehicles were exported in Oct-Dec, M&M said. A slowdown in some of its key markets like Sri Lanka, Bangladesh and Bhutan led to a volume de-growth in exports, said Pawan Goenka, president, automotive and farm equipment sector. Competition has increased drastically in the UV space over the last 1-2 years, due to a surge in demand for predominantly diesel powdered UVs following a sharp rise in petrol prices. M&M, which makes the Scorpio, Bolero, XUV500 and Xylo range of UVs still remains the market leader with a share of 47.9 percent. “All the products of the entity’s UV portfolio continued to do well,” the company said, adding the premium SUV Rexton it has launched from its South Korean arm Ssangyong stable has received “enthusiastic” response. The company has so far sold over 55,000 units of the XUV500 SUV since it was launched around 16 months ago, Goenka said. Tractor sales, however, were slow, with Mahindra & Swaraj branded tractor sales up marginally to 62,522 from 62,342 units.
21% Sundaram Finance
Seasonal Magazine
Sundaram Finance has reported a standalone sales turnover of Rs 547.49 crore and a net profit of Rs 113.65 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 10.27 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 444.11 crore and net profit was Rs 91.15 crore., and other income Rs 12.02 crore.
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25%
26%
Kewal Kiran Clothing has reported a standalone sales turnover of Rs 77.45 crore and a net profit of Rs 12.00 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 2.87 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 64.61 crore and net profit was Rs 8.75 crore., and other income Rs 3.06 crore.
37% Asian Paints India’s largest paint company Asian Paints’ consolidated net profit grew by 30.35 percent year-on-year to Rs 335 crore in the third quarter of financial year 2012-13. Consolidated income from operations rose by 19 percent to Rs 3,053 crore from Rs 2,567 crore during the same period. Other income increased 92.3 percent YoY to Rs 30.91 crore while finance cost declined 26 percent to Rs 7.85 crore in the OctoberDecember quarter.
30%
Titan Industries Titan Industries reported a 24 percent year-on-year rise in third quarter net profit at Rs 204 crore, helped by strong sales growth, particularly in the jewellery business. The company, which also makes watches and eyewear, said revenue for the Oct-Dec quarter was up 23 percent to Rs 2,983 crore. The company’s jewellery business sales rose 27 percent to Rs 2,515 crore. Watch business saw a growth of 11 percent at Rs 424 crore. However, sales in other businesses, which include precision engineering, eyewear, accessories and a B2B business, saw slow growth of 4 percent year-on-year at Rs 98 crore. “Overall sales trend is encouraging. Consumer sentiment is turning positive with the stock markets picking up. Retail stores are experiencing an increase in footfall and the festive season in this quarter was a good one for all our brands, though demand had to be stimulated through investments in mass communication. We hope to carry forward this momentum into the last quarter,” said Bhaskar Bhat, MD. In the third quarter, Titan’s total expenses were up 23 percent at Rs 2,749 crore, while input costs rose 49 percent to Rs 1,876 crore.
24%
18% City Union Bank City Union Bank’s third quarter net profit rose by 18 percent year-on-year to Rs 85.2 crore despite increase in nonperforming assets. Gross nonperforming asset (NPA) increased to Rs 178.7 crore as against Rs 166.1 crore while net NPA moved up to Rs 91.4 crore as against Rs 80.7 crore quarteron-quarter. Provisions against bad loans jumped to Rs 31 crore in OctoberDecember quarter as against Rs 27.9 crore in September quarter. Capital adequacy ratio stood at 12.39 percent, down by 87 basis points quarter-onquarter compared to 13.26 percent.
Havells India Electrical power distribution equipment company Havells India’s net profit grew by 19.74 percent yearon-year to Rs 94.6 crore in third quarter of financial year 2012-13. Total income rose by 18 percent to Rs 1,058.4 crore from Rs 896.2 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 19.5 percent YoY to Rs 136.2 crore and operating profit margin improved 20 basis points YoY to 12.9 percent in October-December quarter.
20%
Seasonal Magazine
Kewal Kiran Clothing
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Top 100 Stocks Set to Gain on Q3 Performance
Dewan Housing Finance
22%
Seasonal Magazine
Axis Bank
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India’s third largest private sector lender Axis Bank’s October-December quarter net profit scaled up to 22% year-on-year to 1,347 crore, driven by three-pronged reasons: lower provisions against bad loans, higher net interest income and robust fee income. Net interest income spurted about 17% to Rs 2,495 crore while fee income shot up 15% to Rs 1,4052 crore. Net interest margin (NIM) stood at 3.57% compared with 3.46% in the July-September quarter. “The Bank has recorded healthy performance in terms of growth of net interest income, fee income and operating revenue for the 9 month period ended 31st December, 2012. With slower growth in operating expenses, the bank’s operating profit and net profit have also shown healthy growth,” the lender said in a press release. During the quarter, provisions and contingencies declined to Rs 387 crore as against Rs 422 crore a year back. The bank’s loan book expanded nearly 21% to Rs 1.80 lakh crore. This is way above the industry credit growth at 16%. Axis Bank increased its focus on retail lending. Its share of retail credit upped to 27% of its net advances as against 26% earlier. Earlier, the bank had to go through some asset quality pain in select corporate loan accounts. In Q3 however, the lender managed to retain its asset quality. Gross non-performing asset ratio remained unchaged at 1.1% while net NPA ratio was little changed at 0.33%. Axis Bank restructured assets to the tune of Rs 368 crore vs Rs 323 crore in the previous quarter. Deposits grew more than 17% y-o-y to Rs 2.44 lakh crore. The share of current and savings account sustained at 40%. Capital adequacy ratio too improved by 74 basis points QoQ to 13.73%.
Dewan Housing Finance Corporation has reported a standalone sales turnover of Rs 840.18 crore and a net profit of Rs 91.24 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.47 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 661.52 crore and net profit was Rs 74.97 crore., and other income Rs 0.37 crore.
22%
22% NTPC India’s largest power generation company NTPC’s net profit grew by 21.9 percent yearon-year to Rs 2,596.8 crore in the third quarter of financial year 2012-13. Net sales rose just 2.5 percent - lower than analysts’ forecast, to Rs 15,775 crore from Rs 15,384 crore during the same period. PAT was higher than estimate, led by higher availability of coal leading to lower cost. Also Plant load factor increased to 84.7%. During the quater, total installed capacity increased to 38.2 GW following commercialization of 0.5GW Rihand STPS and 0.5GW Vallur TPS (JV project with TNEB).
IL&FS Transportation Networks IL&FS Transportation Networks’ consolidated net profit rose 18.5 percent year-on-year to Rs 104 crore in the third quarter of financial year 2012-13. Consolidated total income went up nearly 39 percent to Rs 1,760 crore from Rs 1,268.4 crore during the same period.
25%
Tata Global Beverages’ consolidated net profit grew by 25 percent year-on-year to Rs 80 crore in the third quarter of financial year 2012-13. Consolidated total income rose by 6 percent YoY to Rs 1,915 crore and earnings before interest, tax, depreciation & amortisation went up by 11.35 percent YoY to Rs 203 crore in the October-December quarter. Consolidated EBITDA margin improved 60 basis points year-on-year to 10.6 percent in the third quarter.
19%
Seasonal Magazine
Tata Global Beverages
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Top 100 Stocks Set to Gain on Q3 Performance Kajaria Ceramics
GAIL
Kajaria Ceramics ‘ net profit rose by 19 percent year-on-year to Rs 25 crore in the third quarter of financial year 2012-13. Net sales too grew by 19 percent to Rs 417 crore from Rs 350 crore during the same period.
GAIL’s December quarter profit rose around 18 percent year-on-year to Rs 1284.86 crore, partly boosted by other income. Sales also rose around 11 percent year-on-year to Rs 12474.25 crore. The company said it gave Rs 700 core discount to oil retailers for selling liquefied petroleum gas (LPG) at subsidised rates. It also kept an excess provision of Rs 2100 crore for similar purpose. While the state-run company’s other income rose to Rs 154 from Rs 21.35 crore YoY, its interest cost too more than doubled to Rs 55.18 crore YoY. During the quarter, the operating profit margin decreased 7 bps to 14.07 percent YoY but better volumes contributed to higher profit. The company’s natural segment revenues rose around 11 percent YoY
to Rs 10118 crore, Petchem business sales rose 26 percent to Rs 1106.98 crore. LPG vertical’s revenues also grew around 32 percent to Rs 1277.20 crore.
Can Fin Homes
Apollo Tyres
Can Fin Homes has reported a standalone sales turnover of Rs 102.90 crore and a net profit of Rs 12.64 crore for the quarter ended Dec ’12. For the quarter ended Dec 2011 the standalone sales turnover was Rs 74.53 crore and net profit was Rs 10.77 crore.
18%
Leading tyre manufacturer Apollo Tyres’ consolidated net profit grew by 84.7 percent year-on-year to Rs 181 crore in the third quarter of financial year 2012-13, helped by other income of Rs 26.7 crore. However, consolidated revenue declined marginally to Rs 3,217.3 crore (lower than expected) from Rs 3,228.2 crore during the same period. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) went up 18 percent year-on-year to Rs 382.1 crore in the December quarter. Meanwhile, consolidated operating profit margin improved by 180 basis points YoY to 11.8 percent as against analysts’ forecast of 11.3 percent. The company saw turnaround in its South Africa operations that posted EBIT of Rs 4.7 crore in the October-December quarter as against loss of Rs 29.7 crore in a year ago period. Europe operations EBIT increased nearly 9 percent to Rs 140.6 crore from Rs 129.2 crore during the same period.
Seasonal Magazine
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http://www.magzter.com/IN/PeteCarlson-Solutions-Pvt.-Ltd/Seasonal-Magazine/Business/ or http://tinyurl.com/c6q92qz
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BANK-IN-FOCUS
Seasonal Magazine
Corp Bank Innovates to Grow Faster
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fter a mixed set of results in Q3, Corp Bank under the guidance of Chairman Ajai Kumar has launched a slew of innovations to improve its performance in Q4 and beyond. Corporation Bank’s total income in Q3 grew by 12.8% to reach Rs. 4,257.85 crore against Rs. 3,776.31 crore in the Q3 of previous fiscal. Net interest income was up by 2.5% at Rs 883.39 crore as against Rs 862 crore, in the corresponding year-ago period. NIM has improved by 12 bps sequentially to 2.4%. Though profits were lower on both QoQ and YoY basis, the yearly comparison is somewhat unfair due to the large base formed in Q3 of last fiscal due to a Rs.115 crore one-off income earned in the third quarter of previous financial year owing to disinvestment in mutual funds as directed by the Reserve Bank of India. Also, this quarter’s profits are lower largely due to higher provisioning which the bank has taken as a prudent measure to adhere by RBI standards. Under CMD Ajai Kumar, Corp Bank has turned much more responsive to market events, and the bank was prompt in reducing benchmark lending rate by 0.25% to 10.25%, making loans, including home and corporate, cheaper for borrowers. And in a recent high-profile event in Dubai, Ajai Kumar unveiled two ambitious Savings Bank schemes that really puts Corp in direct competition with private sector banks who usually lead in attracting high-value customers. Based on the concept of Quarterly Average Balance (QAB), there are two main schemes, and even a third one that even offers a relationship manager to service high-value customers like in private banks. The main two schemes are for customers who maintain minimum QAB of Rs 15,000 (SB Super) and for those who maintain a QAB of Rs 1 lakh (SB Signature). A bouquet of features and add-ons are integrated to make both the Savings schemes unique and attractive. The facility of relationship manager is available for those customers who maintain a QAB of Rs. 5 lakh. The primary account holders will get a free personal accident cover of Rs 10 lakh in SB Signature and Rs 5 Lakh in SB Super. Free Visa Signature debit card is provided to SB Signature customers and Visa Platinum debit
Ajai Kumar, CMD
Seasonal Magazine
In a recent high-profile event in Dubai, Ajai Kumar unveiled two ambitious Savings Bank schemes - SB Signature and SB Super - that really puts Corp in direct competition with private sector banks who usually lead in attracting high-value customers. Based on the concept of Quarterly Average Balance (QAB), there are two main schemes, and even a third one that even offers a relationship manager to service highvalue customers like in private banks.
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Shri Ajai Kumar, Chairman & Managing Director of the Bank launching two new savings account variants – SB Super and SB Signature at NRI Meet organized by the Bank at Dubai on February 02, 2013. Also seen in the photograph are Shri K Ramamurthy and Shri C G Pinto, General Managers, Dr. Kurian P Abraham, Deputy General Manager and Shri Ashok Chandra, Chief Representative, Corporation Bank, Representative Office, Dubai.
Seasonal Magazine
Corporation Bank’s retail lending has grown by 53% in the first three quarters., which is one of the best performances among peers. Their SME loans have seen a robust 35% growth, but at the same time Corporation Bank has a low rate of default in retail, SME, and priority sector lending.
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card to SB Super customers. Both set of customers will get preferential loan processing by affixing priority seal by the branch while forwarding loan applications. Bundled demat and trading accounts are also offered for both the variants including a waiver of annual maintenance charges for the first year. Free monthly e-mail statements will be sent to these preferred customers. SB Signature customers will be given a specially designed premium pouch to hold
the cheque book, card and cash. Other freebies and concessions include free NEFT, SMS Banking, and 25% concession in bank charges for gold coins. For SB Super - free RTGS up to two transactions per month, 50% concession in service charges for DD/ PO, free personalized cheque leaves 60 per year and 25% concession on first year locker rent are available. For SB Signature - free RTGS up to five transactions per month plus all others features as in SB Super will be offered. Apart from such innovative schemes, there are several other reasons to believe that Corp Bank is on the right track. Corp’s retail lending has grown by 53% in the first three quarters., which is one of the best performances among peers. Their SME loans have seen a robust 35% growth, but at the same time Corporation Bank has a low rate of default in retail, SME, and priority sector lending. Another area of thrust for the bank is gold loans, where they have doubled their portfolio in the first nine months to Rs 3,600 crore. Annual projections by the senior management put loans against gold to mark around Rs 5,000 crore by this fiscal end. The medium-sized public sector lender is also right on track to achieve RBI’s slated target of 16% growth for the whole year. Corporation Bank was looking at a capital raise of Rs. 1000 crore, of which Government of India has already infused Rs. 204 crore. To raise the remaining amount, the Board of Corporation Bank has approved private placement of up to Rs. 750 crore by way of equity instruments like QIP. SM
CELEBRITY
Seasonal Magazine
John questions role of country's rich in helping needy
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uestioning the social work done by corporates in the country, actorproducer John Abraham says there are hardly any billionaires who part with their money to help the needy. The youth, he believes, can play a big role. "I say the youth should contribute. Contribution is when each one of us are willing to give what is ours, without worrying about how much the other has. If we are all willing to do that, we will have equality," the 40-year-old said here Tuesday at a press conference organised by actor-philanthropist Rahul Bose. Citing the examples of Bill and Melinda Gates, Warren Buffet and Indian business tycoon Ratan Tata, he asked: "Which of our billionaires is parting with his money?" Rahul and John came together to announce a concert to raise money for the former's 'The Foundation', which works for the upliftment of underprivileged children. Talking about his own efforts, John said he prefers to live a simple life, and gives away most of his clothes and other items.
"I have given my clothes away. Anyway I wear very little clothes," he quipped, adding: "I have two to three pairs of jeans, four to five shirts which you will see are repeated in press conferences and some 20 t-shirts. You can instantly recognise them!" "I really believe that leading a simple lifestyle helps and I am sure you all can also do the same. It is no use having many expensive things - you just collect and horde and then throw out," he added. John also endorses the Mumbai Marathon. Rahul told reporters that John "does not charge anything for being its brand ambassador".
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BANK-IN-FOCUS
Seasonal Magazine
Karur Vysya Bank’s Topl Bullish on Transaction B
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outh based traditional private sector lender, Karur Vysya Bank’s revenues jumped by 25% in Q3 on a year-on-year basis. Net interest income rose even more impressively by 31.4% to Rs 308.5 crore from Rs 234.7 crore during the same period last fiscal. KVB continued to display outstanding credit quality, with one of the lowest non-performing asset ratios in the industry. As of Q3 end, Gross NPA stood at a low 1.29%, and Net NPA was at an impressive 0.38%. It is striking that the asset quality ratios of GNPA and NNPA remain low, even after facing pressure in Q3 due to the external environment, and seeing marginal rises of 3 basis points and 6 bps respectively. Capital adequacy ratio (CAR) similarly declined marginally from 14% in Q2 end, but remained comfortable at 13.36% as of December quarter end. KVB went in for an even more prudent provisioning strategy which saw provision coverage ratio at 75.02%, with provisions against bad loans standing at Rs 65.2 crore. Based almost solely on this higher provisioning, net profit fell by 9.6% year-on-year to Rs 113 crore in the third quarter. However, interestingly, none of the analysts nor fund houses were taking a
decision on KVB stock solely on the marginal profit fall. The main reason for this is that from its origins as a traditional private sector bank, to its recent history as a fast modernizing medium-sized bank under MD & CEO, K Venkataramanan, this lender hasn’t deviated from its track-record of being one of the highest performers by way of core valuation metrics like Return on Assets (RoA) and Return on Equity (RoE). This is all the more important as despite having much better metrics than, say public sector banks, KVB is yet to be valued by the market as largesized private banks like HDFC Bank. Under CEO Venkataramanan’s leadership, KVB has also been moving fast enough to adapt to the dynamic banking environment in the country. The Tamil Nadu based lender recently cut its base rate by 25 basis points and increased the one to two year term deposit rate by 50 basis points with effect from February 3rd, 2013. After the reduction, the base rate now stands at 10.75 per cent and the benchmark prime lending rate (BPLR) at 15.75 per cent. The rate offered on its domestic and NRE term deposits have been hiked by 50 basis points to 9.5 per cent for the one to two-year period. Senior citizens would get an
K Venkataramanan, MD & CEO
Seasonal Magazine
li ne Grows 25%, Ba nking
additional half-per cent. The radical and contrarian moves on loans and deposits, is very characteristic of KVB known for thinking from its customers shoes. And it is highly likely to ease the burden on loan customers, even while shoring up its CASA deposits, thereby easing margin pressure for the bank. Karur Vysya Bank has very well managed operations in SME, agriculture and personal loans. While its branch expansion plans remains impressive, it’s asset quality is not expected to take a hit due to this growth due to its proven efficient operations. In fact, KVB scores over several other similar-sized private banks on the efficiency front. On the technology front, Karur Vysya Bank, recently chose to implement Polaris Intellect Global Transaction Banking (GTB) solution to enable the launch of its green-field operations in transaction banking. The GTB solution covers cash management, supply chain finance, and a banking portal that would suit the growing needs of the private bank. Transaction banking offers more stable annuity revenue with lower risks for lenders. The Intellect GTB solution is one of the most comprehensive enterprise transaction banking architecture developed to deliver unprecedented productivity through every stage of operations. Whether Securities, Cash Management, Liquidity Management, Trade Finance, or Treasury, the Intellect GTB solution is distinctly superior in design and functionality. Venkataraman, Managing Director & Chief Executive Officer, opined that, “Transaction Banking is an important new initiative from KVB flowing from our Centenary Vision.� The bank is set to celebrate its centenary in the year 2016. SM
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e-Governance
IT MISSION’S WORK WILL SOON TOUCH ALL 3.34 CRORE KERALITES Kerala State IT Mission (KSITM) has made giant strides in executing several key IT related projects in the state, with the momentum accelerating during the last couple of years. Two of KSITM’s initiatives - E-District and Aadhaar - deserve special mention not just due to their national importance but for their potential to touch and help each and every one of 3.34 crore Keralites.
The The Leadership Leadership Behind Behind
PH Kurian IAS, Chairman
Seasonal Magazine
t is no secret that Chief Minister Oommen Chandy takes a personal interest in making Kerala an eState. IT Minister PK Kunhalikutty has been the force behind some of IT Mission’s largest successes like the Akshaya Project, and continues to spearhead various IT initiatives.
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IT Principal Secretary, PH Kurian IAS heads KSITM as its Chairman. Dr. Jayasankar Prasad C is the young and dynamic Director of IT Mission. Other key executors at KSITM are Mavis Swittens, Finance Officer; K. Sreekumaran Nair, Manager - Business Development & Administrative Officer; Unnikrishnan G, Head eGovernance, and the three Mission Coordinators - Noufal KP, Rajeev KA, & Hameem Mohammed.
Dr. Jayasankar Prasad, Director
E-District Project erhaps no other state was as ready as Kerala when Government of India launched the E-Districts Project in 35 districts across the nation as part of the National E-Governance Project (NeGP). And most credit for that goes to Kerala State IT Mission which had already developed suitable infrastructure for the project by way of the unique Akshaya Centres. No wonder then that Kerala bagged 2 out of the 35 E-Districts awarded by the Centre - at Kannur and Palakkad.
2.82 lakh were already delivered the requested certificates. The implementation in Palakkad which kicked off from 8th February 2011, has so far witnessed 2.94 lakh online applications of which 2.31 lakh were delivered the certificates. The system is state-of-the-art with one feature being mobile status notification to the applicant as soon as Village Officer or Taluk Officer approves or disapproves an application. To start with, 23 certificates from the Revenue Department are being delivered under this scheme, including the crucial Caste Certificate and In a nutshell, E-District is all about helping citizens get all Community Certificate. All the certificates are delivered the various certificates that they need from the different with official digital signature and their validity and atgovernment departments through an par nature with conventional online single-window system. Once a certificates have been notified person submits the online application through two government circulars. The numbers speak for itself and the required scanned eligibility regarding the success of the ENot resting on its laurels with the documents at a local IT centre District implementation by success of the pilot projects at designated for the same, all he or she KSITM - from 17th December Kannur and Palakkad, KSITM has has to do is wait for a short period, 2010 to till-date, Kannur geared up for implementing eand the E-District system does all the witnessed 3.32 lakh online Governance in all the districts of forwarding and required processing Kerala. District e-Governance applications from public of with various departments, and finally Societies (DeGS) have been formed which 2.82 lakh were already the local centre delivers the requested at all districts under the leadership delivered the requested certificate to the applicant. In other of respective District Collectors to certificates. The words, the applicant doesn’t have to plan and implement projects like Eimplementation in Palakkad visit and re-visit dozens of th District. These have been formed as which kicked off from 8 departments dozens of times, which per the guidelines of Central February 2011, has so far has been the case hitherto. Government’s Department of
witnessed 2.94 lakh online applications of which 2.31 lakh were delivered the certificates. The system is state-of-the-art with one feature being mobile status notification to the applicant as soon as Village Officer or Taluk Officer approves or disapproves an application.
Information Technology’s (DIT). KSITM, as the nodal agency for the E-District Project, is using the software developed by National Informatics Centre (NIC) for implementation. The concerned employees of revenue department as well as the Akshaya entrepreneurs are being trained in the operation of this system.
Seasonal Magazine
The state-wide Akshaya centres which was also quite active in Kannur and Palakkad - provided the perfect infrastructure for implementing the EDistrict Project. The numbers speak for itself regarding the success of the implementation by KSITM - from 17th December 2010 to till-date, Kannur witnessed 3.32 lakh online applications from public of which
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Aadhaar Project
Seasonal Magazine
he stunning success of Aadhaar Project in Kerala is evident from the fact that the state is a frontrunner among all regions in the crucial metric of percentage-ofpopulation enrolled with Aadhaar. A surprisingly-high two-thirds of Kerala’s booming 3.34 crore population has been already enrolled with UIDAI a.k.a. Aadhaar.
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issues for all residents in India. The number will be stored in a centralized database and linked to the basic demographics and biometric information – photograph, ten fingerprints and iris – of each individual. It is easily verifiable in an online, cost-effective way. It is unique and robust enough to eliminate the large number of duplicate and fake identities in other databases.
KSITM is likely to achieve the deadlines set for it for bringing in all resident Keralites under this scheme, as it Much of the credit for this success goes to Kerala State IT is following an integrated approach for enrolment. For Mission, the project’s nodal implementation agency in the example, KSITM is utilizing different agencies and state. KSITM is, however, already on a warpath to achieve programs for a comprehensive the further goal of Kerala implementation of Aadhaar across Government in this regard, which is the state. Under KSITM’s guidance, The stunning success of bringing in 100% of Keralites under a three-pronged strategy has been Aadhaar enrolment by March 31 st Aadhaar Project in Kerala is established to address rural, urban, 2013. The deadline set for KSITM is evident from the fact that the and student communities. The ambitious as the project is only just state is a frontrunner among thriving Akshaya Centres across the over two years old. UIDAI launched all regions in the crucial th state is looking after enrolling the Aadhaar program on 29 September metric of percentage-of2.85 crore rural population, while 2010, with the inauguration done by population enrolled with KELTRON is in charge of enrolling Prime Minister, Manmohan Singh Aadhaar. A surprisingly-high the 82.66 lakh urban populace of the along with UPA chairperson Sonia two-thirds of Kerala’s booming state. The student population of Gandhi. 3.34 crore population has been around 50 lakhs are being enrolled Unique Identification Authority of through KSITM’s IT@School already enrolled with UIDAI India (UIDAI) is an agency of the infrastructure. a.k.a. Aadhaar. Much of the Government of India responsible for credit for this success goes to There is no doubt that through both implementing the Aadhaar scheme, a Kerala State IT Mission, the E-District implementation and unique identification project. It was Aadhaar implementation, KSITM is project’s nodal established in February 2009, and it set to touch the lives of all Keralites, owns and operates the Unique implementation agency in the and make it much easier. While EIdentification Number Database. The state. KSITM is, however, District Project will make it easy for agency is headed by Nandan already on a warpath to all to get required certificates from Nilekani, former co-chairman of achieve the further goal of the government in a hassle-free Infosys Technologies, as chairman, Kerala Government in this manner, Aadhaar is being deployed who holds a cabinet rank. The UIDAI regard, which is bringing in as the crucial identification system is part of the Planning Commission 100% of Keralites under for the delivery of all proposed of India. Aadhaar Card is a unique Aadhaar enrolment by March welfare schemes like cash-foridentification card based on a 12-digit st 2013. 31 subsidy, as well as next-generation unique number which the UIDAI banking.
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Ne w LLa aunche s: New unches: Bo ene Botttega V Vene enetta pr esen sentts it itss pre Women’s FFallallWin 13/ Wintter 20 2013/ 20 14 C ollec tion 2014 Collec ollection For Fall-Winter 2013/2014, Bottega Veneta presents a collection that has quite a Parisian and English touch and is precisely polished. The silhouette emphasizes volume, but still accentuating the shape of the body. Defined by intricate construction and deliberate lines, the overall look is transformative, and is reminiscent of the fashionable world of another era. The palette is quite decisive with monochromes defining the collection. Colours include black, slate, smoke and pearl white, offset by vibrant red, yellow and curry.
& Fresh, Luxe, Duds Burberr Burberryy pr esen pre sentts it itss Autumn/Win utumn/Wintter 20 13 2013 Womens wear omensw collec tion ollection British luxury fashion brand Burberry showcased its Burberry Prorsum Womenswear Autumn/ Winter 2013 collection, which is inspired by Burberry classics and1960s beauty Christine Keeler, featuring an iconic Burberry colour palette. Titled as ‘Trench Kisses’, the collection was quite obviously flowing with smart and new versions of this lovable and famous silhouette. Trench coats, cabans, Chesterfields, topcoats, regimental greatcoats, column dresses, shell dresses and cropped trousers were the highlight of this collection.
Seasonal Magazine
Cr ab tr ee & E unche our th st or e in Crab abtr tree Evvelyn la launche unchess ffour ourth stor ore India in Ne w Delhi New
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Luxury skincare brand, Crabtree & Evelyn, has now launched its 4th store in India at the DLF Promenade mall in New Delhi. A pioneer in botanical formulations for over 40 years, Crabtree & Evelyn blends nature and science, tradition and innovation, and luxury and comfort to create benefit-rich bath, body, and home care. The launch event saw beautiful women of Delhi come together for a champagne evening to get pampered with Crabtree & Evelyn’s indulgent hand care ritual. Choosing between their pomegranate, rose and other ranges, the women left with their hands feeling soft, moisturised and completely pampered. The store, while having a floral aesthetic, also reflects the brand’s English heritage. Their various ranges are tempting enough to make you spend hours in their lovely, boutique-y store! But a special mention goes to Evelyn Rose, which has been delicately re-engineered to portray the luxury of the original rose scent, infused with crisp airiness. Retaining the sophisticated allure which made Evelyn Rose an immediate classic, the updated fragrance is a softer, fresher reflection of the rose created for Crabtree & Evelyn by David Austin two decades ago. So enter this lush garden and have a refreshing shopping time!
Ne w LLa aunche s: FFrresh, LLux ux e, & Duds New unches: uxe
Cust omiz ed W atch fr om Customiz omized Wa from Carl FF.. Bucher er a Bucherer avvailable a att Ethos Summit Complete luxury involves personalization and customization. Understanding this, Carl F Bucherer has offered to customize its Alacria watch with your name, exclusively at Ethos Watch Boutiques. Feminine and striking curves make the Alacria an exceptional watch. This Quartz watch has solid gold bracelets with folding clasp. The yellow gold 18 K case features 36 diamonds and water-resistance to 30 meters, while the dial is crafted from mother-of-pearl.
Aman Ne w Delhi tto o be rrein ein he LLodhi odhi New einvven entted a ass TThe In the wake of much uncertainty, it’s finally decided that Aman New Delhi is going to be reinvented into a new avatar, and will be known as The Lodhi by the DLF Group. Offering simple and easy luxury, The Lodhi epitomises contemporary India with a perfect blend of the bustle of the city and serenity. Situated on Lodhi Road at the edge of Lutyens Delhi, The Lodhi offers spectacular views of Delhi’s green landscape from its rooms, along with restaurants, bars, a spa, health and recreation center. The many dining options include the informal restaurant Élan, the intimate Élan Bar, OTW and Anidra. Revamped in 2013, this boutique property with 40 rooms and suites, all with private plunge pools, offers a sense of casual luxury and comfort. The jali- screened expansive terraces, giving both privacy and views, extend the space of the already large rooms. A big day bed by the plunge pool offers a quiet spot for reflection, reading or a glass or two of wine at the end of a busy day as well as the ideal perch to observe city beyond.
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Ne w LLa aunche s: FFrresh, LLux ux e, & Duds New unches: uxe ZegnAr egnArtt Public/India la unche launche unchess in collabor ation with Dr ollabora Dr.. Bha u Daji LLad ad Museum Bhau
Seasonal Magazine
Being a patron of art and culture, the Ermenegildo Zegna Group’s initiative, ZegnArt Public, will now be launched in India in March 2013 in Mumbai, in collaboration with the Dr. Bhau Daji Lad Museum (Mumbai). ZegnArt comprises various projects implemented by the Ermenegildo Zegna Group in Italy and abroad in the field of visual arts, in collaboration with artists, curators, institutions and cultural institutions. The partnership between the Ermenegildo Zegna Group and the Dr. Bhau Daji Lad Museum has been set up on a public-private collaboration model that, in India in particular, is being established for the first time. ZegnArt Public/India is the first episode of a long-term program that calls for the annual activation, in an emerging country, of a dual path: the onsite construction of a work of public art commissioned from an artist in mid-career from within the host country and created in collaboration with a local institution of international profile; and the financing of a residency offered to a young artist from the host country who is invited to spend a research period in Italy.
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Miele in tr oduc es Ga intr troduc oduce Gass on gla ooking with a glasss ccooking sa ylish Ga saffe and st stylish Gass on Gla Glasss Hob Miele has always defined cooking with style. And their newest product promises that as well! Miele’s new generation of Gas on Ceramic Glass Hob has an attractive design, easyto-clean pot rests and a formidable collection of safety features. A special feature of the new hob unit is that the gas burners and the pot rests sit on a ceramic glass surround. This 'gas-on-glass' principle is both aesthetically pleasing and offers eminently practical benefits.
Guc ci pr esen Gucci pre sentts it itss Women’s A utumn/ Autumn/ Win 13-14 Wintter 20 2013-14 collec tion ollection Gucci’s Autumn/Winter 2013-14 collection for women has swept us off our feet with its gothic representation of the fatale woman. “The Gucci woman seduces with her dangerous femininity,” explains Creative Director Frida Giannini. “She is steely yet sexy – defining her discipline with femme fatale vices. She wears sculpted dresses with pure graphics, all the while alluding to devious touches.” The silhouette is constructed with the perfection of couture lines applied to ready-to-wear. It is powerful and body conscious. Jackets are caban style or small, either with softly egg-shaped shoulders or definition. The pencil skirt reaches till below the knee but reveals an unexpected slit.
The Cr ash W atch bbyy Cra Wa Car tier in st or es no w now artier stor ore Taking creative watchmaking to another level, and reminding us of the Tank Folle watch, Cartier has introduced humour and elegance to the world of horlogerie with the Crash Watch. With its asymmetrical dial, which can also evoke distortion and accidents, over time the Crash watch became a collector’s piece produced in very limited series. Today, the Crash watch appears in a limited edition of four new models adorned for the first time with a delicate bracelet composed of drops in white or pink gold. In an even more precious version, the bracelet is entirely gem-set.
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Indian de signer designer Ragha aghavvendr endraa R Raathor thoree la unche or olk launche unchess st stor oree in K Kolk olkaata Indian designer, Raghavendra Rathore, best known for his trademark Jodhpuri Bandgala suits and breeches, has launched a store in Kolkata at Camac Street. “People want to give gifts which are custom designed for their loved ones, rather than buying generic products from the market, that everybody has access to. We at our store will offer customization at its finest, clients can commission jeweled buttons as per their personal style, get special prints designed for the pocket scarves or design a piece of jewellery that can never be found anywhere else in the world. We hope to provide design solutions for diverse range of products through our store, from concepts for silver beds to men's bespoke wardrobe solutions.
For est E tials la unche ore Esssen sentials launche unchess sec ond st or e in Chennai second stor ore Luxury Ayurvedic brand, Forest Essentials, has launched their second retail outlet in Chennai. Known for its inherent appreciation of Ayurveda, Chennai seems to love this brand! Located in Phoenix Market City, the store is designed aesthetically. Sanskrit shlokas adorn the high walls of the store imparting ancient knowledge on beauty, while the ‘Tree of Life’ mosaic placed prominently, is pleasantly inviting. The luxurious design and fragrant welcome provides an exemplary Ayurveda experience to customers. This store will stock a complete collection of Ayurvedic skin and beauty care, hair care and wellness products.
Seasonal Magazine
So fit el LLuxur uxur or ge tional Sofit fitel uxuryy Ho Hottels ffor orge gess an in intterna ernational par tner ship with P otel eett Chabo Chabott partner tnership Po
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Potel et Chabot, a Parisian caterer and reception organizer, and Sofitel Luxury Hotels, have signed a partnership that aims to develop the expanding market for prestige receptions globally, in particular in Asia and Latin America. The agreement enables the Parisian company Potel et Chabot, a key reference in French gastronomy, to accompany its clients internationally, thanks to the support of the infrastructure and foreign market expertise of Sofitel. “While we continue to develop our
activities in the Parisian and French markets, which are still fundamental for our Company, we have decided to collaborate with Sofitel to expand our international markets. This partnership will allow us to strengthen our relationship with major luxury brands who entrust us with their business and catering needs. This is in line with Potel et Chabot’s ambition to boost development of global business and become a showcase for France with an increased presence on the world stage,” siad Franck Jeantet, PDG of Potel et Chabot.