HPCL, M&M and Infosys to see some action today

Hindustan Petroleum Corporation (HPCL) is likely to acquire 8% stake in Petronet LNG’s Rs 5,000 crore liquefied natural gas (LNG) terminal at Gangavaram in Andhra Pradesh. The Viskhapatnam refinery of HPCL, which is only a few kilometers away from Gangaravam port, is being expanded to 15 million tonnes per annum from current 8.33 million tonnes and the expanded unit will have a gas requirement of close to 2.5-3 million standard cubic meters per day. Andhra Pradesh government too has evinced interest and is likely to get 5 percent stake, leaving Petronet with 69 percent shareholding.

Mahindra & Mahindra (M&M) has increased prices of its passenger and commercial vehicles by an average of 1%. This increase would be in the range of Rs 2,300 to Rs 11,500 (ex-showroom) depending on the model and has been effective this month. M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.

Infosys, a leader in consulting, technology, outsourcing and next generation services, has successfully implemented its Finacle core banking solution for Discover Financial Services, a leading U.S. direct bank and payment services company. The new Finacle platform provides Discover with real-time processing and customer servicing for the company’s deposits portfolio, and is expected to be extended to support Discover’s installment lending products as well. The Finacle solution helps companies enhance operational efficiency, bring new products to market, integrate and automate compliance functionality, reduce costs and deliver a superior banking experience to its customers.

Liquor maker United Spirits (USL) has lined up a number of measures, including selling treasury shares and surplus land and properties, to pare its huge debt of Rs 7,600 crore. The board has approved the plan to monetize surplus assets. The company plans to offload a substantial number of treasury shares of both itself and those of United Breweries held by USL. However, the treasury shares of USL are stuck in a litigation with a bank and it is expected to take a few more months before the issue is settled. USL, through the sale of treasury stocks, United Breweries shares and surplus land and properties, is expected to generate about Rs 2,000 crore.

Sesa Sterlite, India’s top private iron ore miner, expects to soon resume mining in Karnataka and produce at its court-set limit of 2.29 million tonne in the year ending March. The company in August stopped producing from its lone operational mine in the southern state pending the renewal of its licence, exacerbating a shortage of the raw material for users such as JSW Steel and Kalyani Steels. Following a court imposed ban of more than two years in Karnataka, Sesa restarted mining in the state in December last year, before being asked to stop again in August.

Amara Raja Batteries board which met at Chongqing in China approved setting up of a tubular battery plant. The proposed project will support accelerate the growth momentum and secure additional market share in the near future. The company has posted a net profit of Rs 100.30 crore for the second quarter ended September 30 as against Rs 94.58 crore for the same period last year. The company registered strong numbers based on volume growth. The company has registered higher income of Rs 1,060 crore for the second quarter, up 32 percent as against Rs 805 crore for the corresponding quarter last year.

SpiceJet has reduced its capacity in a fleet standardization exercise. Over the past six months, the airline’s fleet has shrunk from 58 aircraft to 48 planes with the carrier returning 10 Boeing 737s to lessors. Three planes have been returned in the past two months alone. The airline now operates 48 aircraft, including 33 Boeing 737s and 15 Bombardier Q400. The reduction in capacity and the grounding of a Boeing 737 following a collision with a buffalo in Surat have impacted the airline’s schedule, leading to cancellation of some flights. While SpiceJet is shrinking its fleet, its competitor IndiGo keeps adding aircraft to its fleet; it recently took delivery of its 100th aircraft.

Air passengers living in smaller cities in the country are in for a treat, as carriers are working on offering international connectivity directly to these cities in the days ahead. Jet Airways, owned 24% by Etihad, is in the process of connecting smaller cities in the country to Etihad’s hub in Abu Dhabi. Jet Airways will connect 10 cities by March next year in its plan to provide international connectivity to 23 smaller cities through Abu Dhabi. Flights from Lucknow and Goa to Abu Dhabi will be launched this month and Ahmedabad and Pune will be connected with the UAE capital by next March. 

Wipro’s - consumer care and lighting business could end this fiscal year with $1 billion (Rs 6,000 crore) in revenue, as the privately-held company expects the Narendra Modi-led government’s promised reforms to start reflecting on the ground, leading to a better second-half of the year for the company. Wipro’s Consumer Care & Lighting, which reported a little more than Rs 5,000 crore in revenue in the year ended March 2014, saw a 25% growth in revenue in the quarter ended September. This revenue growth of 25% in that period is on account of the 10-11% price hike undertook by the company.