Steel Strips Wheels tumbles 10% on Q3 results

The net profit for the quarter was at Rs. 15.5 crore

Steel Strips Wheels Ltd stock was lower by 10% at Rs.334 after company posted Q3 results.

The net profit for the quarter was at Rs. 15.5 crore

The total income was at Rs.313.8 crore.

The scrip opened at Rs. 366 and has touched a high and low of Rs. 366 and Rs. 327 respectively. So far 271865(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 565.05 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 458 on 28-Dec-2015 and a 52 week low of Rs. 254.5 on 27-Mar-2015. Last one week high and low of the scrip stood at Rs. 432 and Rs. 367.7 respectively.

The promoters holding in the company stood at 58.38 % while Institutions and Non-Institutions held 0.66 % and 40.96 % respectively.

The stock is currently trading above its 50 DMA.

Kotak Mahindra Bank Q3 net profit climbs 31.9%

The bank reported an increase of 31.9% in its net profit at Rs. 945.2 crore for the quarter ended Dec. 31, 2015 as compared to Rs.716.6 crore in the same period last year.

Kotak Mahindra Bank, a private sector lender, today reported increase of 31.9% in its net profit at Rs 945.2 crore for the quarter ended Dec. 31, 2015 as compared to Rs.716.6 crore in the same period last year.

The bank reported Net Interest Margin at 4.4%

Stock Commentary:

Kotak Mahindra Bank Ltd is currently trading at Rs. 682.85, up by Rs. 6.9 or 1.02% from its previous closing of Rs. 675.95 on the BSE.

The scrip opened at Rs. 679.55 and has touched a high and low of Rs. 686.4 and Rs. 673.85 respectively. So far 576642(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 123868.41 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 744.45 on 21-Jul-2015 and a 52 week low of Rs. 594.1 on 07-Sep-2015. Last one week high and low of the scrip stood at Rs. 704.45 and Rs. 672.8 respectively.

The promoters holding in the company stood at 33.77 % while Institutions and Non-Institutions held 38.89 % and 27.33 % respectively.

The stock is currently trading above its 50 DMA.

All in the family! RCom, Reliance Jio sign pact for 4G services

Mukesh Ambani and Anil Ambani have come together to share spectrum under 800 MHz band across 17 circles.

Reliance Communications (RCom) and Reliance Jio (RJio) have reportedly signed the most-awaited pact for delivering 4G services across the country. Mukesh Ambani and Anil Ambani have come together to share spectrum under 800 MHz band across 17 circles.

As per reports, the strategic partnership between RCom and RJio will benefit from network synergies and enhanced network capacity. RCom customers will be able to able to avail Reliance Jio 4G services, when they are launched across the country.

"The pact with Reliance Jio is subject to liberalization of 800 MHz Band," RCom was quoted saying. 

Reliance Communications is expected to receive Rs. 4,500 crore from Reliance Jio for sale of 800-850 MHz spectrum in 12 circles, that RCom will use for liberalisation of spectrum as asked by the Department of Telecom (DoT). RCom had applied for the liberalisation of 800 MHz spectrum in 20 circles.

RCom and RJio will be the first to offer nationwide 4G LTE services on 800-850 MHz. Both the service providers have agreed to enter into intra-circle roaming arrangements.

Asia and oil! What's going on?

We haven't seen oil being this cheap for a while. In fact, some of us (most?) weren't even in the financial sector when crude was trading at USD 30 per barrel, says Frederic Neumann, Co-Head of Asian Economic Research, HSBC.

Asia and oil

Crude is down, way down. Shouldn't that give Asia a nice lift? After all, most of the region imports the stuff. A lower purchase bill should therefore give a boost to the spending power of consumers, governments and companies. Alas, growth keeps slowing. What's missing? For one, lower commodity prices, including oil, partly reflect weakening demand itself. In addition, the downturn in mining capex and the declining income of commodity producers is weighing on exports from Asia. So don't expect the plunge in crude to lead to a swift bounce in Asian demand - it ain't as easy as that.

We haven't seen oil being this cheap for a while. In fact, some of us (most?) weren't even in the financial sector when crude was trading at USD 30 per barrel. And it's been on a rapid descent, too. Here's the thing though: lower prices should in principle be a boost to a region that for the most part imports oil. Think of Japan and Korea, each barely producing a drop of their own. Or China: now the world's largest energy consumer and biggest buyer of crude on world markets. Or Taiwan, or India, or the Philippines, or...

But that isn't happening. Growth has decelerated virtually everywhere alongside the decline in oil prices.

What's going on?

A couple of things. First, falling prices for raw materials, including oil, partly reflect cooling demand in Asia. Yes, the shale oil revolution and OPEC pumping away have increased supply (a positive for importers). But weaker demand is also playing a role. In fact, what's true for oil is true for other commodities as well. Take iron ore: extra supply (think Australia) has helped to depress prices globally, but so has the fact that China's demand has slowed. Even if the country still imported a record amount last year, this failed to meet bullish expectations set at the height of the boom. So, yes, softer demand is part of the story, even if only relative to expectations, whether for iron ore or crude.

Second, there's an income shift under way that's hurting Asia, at least in the short-term. The drilling and mining boom that higher commodity prices encouraged helped boost demand for some Asian exports. Korea and Singapore are good examples: their offshore engineering industries having taken a hit through lower orders.

More importantly, commodity exporters throughout the world spent their windfall gains freely in recent years, including on Asian goods. As they are now cutting back, crude importers such as advanced economies are not stepping up to make up the difference, preferring to, well, save their savings, rather than splurge, leaving the world short of demand (only witness disappointing retail sales in the US last month, reflected in a rising household saving rate). Of course, this is a broader commodity story, and doesn't apply just to oil, but the latter plays a major part in this.

None of this, of course, is to say that lower oil prices don't help at the margin. Only imagine where growth across the region would be right now if crude was still above USD 100 per barrel (say, because of a supply shock). A lot lower, presumably. Yet this raises a worrying prospect: if underlying growth is even weaker than currently reported, we might see activity sag further once the cushion from the fall in oil prices fades. (True, falling energy prices raise the income of importers, and even permanently so if they stay low. But they don't add anything in themselves to growth over time after the initial boost wears off.)

Our broader point is this: tumbling crude prices are not going to be a quick fix for Asia's growth malaise - rather, they are part of the symptom. A bounce in Asian demand thus appears unlikely on the account of oil. Looks like we'll be stuck in a slow grind for a while.

Pipavav Defence tumbles 9% on Q3 net loss

The Company has posted a net loss of Rs. (2936.037) mn for the quarter ended December 31, 2015 as compared to net loss of Rs. (704.637) mn for the quarter ended December 31, 2014.

Pipavav Defence and Offshore Engineering Ltd stock was lower by 10% at Rs. 71 after the company posted Q3 results.

The Company has posted a net loss of Rs. (2936.037) mn for the quarter ended December 31, 2015 as compared to net loss of Rs. (704.637) mn for the quarter ended December 31, 2014. 

Total Income has decreased from Rs. 2611.647 million for the quarter ended December 31, 2014 to Rs. 549.949 million for the quarter ended December 31, 2015.

The scrip opened at Rs. 76.3 and has touched a high and low of Rs. 76.3 and Rs. 72.3 respectively. So far 1724416(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 5863.91 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 114 on 28-Dec-2015 and a 52 week low of Rs. 46.6 on 23-Jan-2015. Last one week high and low of the scrip stood at Rs. 88 and Rs. 74.5 respectively.

The promoters holding in the company stood at 42.24 % while Institutions and Non-Institutions held 17.13 % and 40.63 % respectively.

The stock is currently trading below its 50 DMA.

Nifty falls below 7,400 level

The India VIX (Volatility) index rose nearly 3% to 20.11. Out of 1,786 stocks traded on the NSE, 1,354 declined and 122 advanced today. A total of six stocks registered a fresh 52-week high in trades today, while 167 stocks touched a new 52-week low on the NSE.

At 10:01 AM, the S&P BSE Sensex is trading at 24,323 down 123 points, while NSE Nifty is trading at 7,396 down 41 points.

The BSE Mid-cap Index is trading down 2.19% at 10,117, whereas BSE Small-cap Index is trading down 3.33% at 10,424.

Some buying activity is seen in IT and energy and metal sectors, while capital goods, auto, consumer durables, pharma and oil and gas sectors are showing weakness on BSE.

ITC, Infosys, Coal India, TCS, Sun Pharma, NTPC, HDFC and ICICI Bank are among the gainers, whereas Adani Ports, Bajaj-Auto, BHEL, Maruti Suzuki, ONGC, L&T and Cipla are losing sheen on BSE.

Indian Rupee opened lower at 66.70/$,down by 10 paise in early trade on Monday as against the previous close of 66.60/$. Indian rupee extended the weakness against the greenback, declining 30 paise and in the process hitting 28 months low. Strong demand for US dollar and sharp fall in global equities is taking a toll on Indian rupee. There are also concerns over persistent foreign capital outflows from the domestic equities. Of late, Indian macroeconomic indicators have also disappointed the investors. The numbers convey that industrial activity has slowed down and retail inflation is moving higher.

The India VIX (Volatility) index rose nearly 3% to 20.11. Out of 1,786 stocks traded on the NSE, 1,354 declined and 122 advanced today. A total of six stocks registered a fresh 52-week high in trades today, while 167 stocks touched a new 52-week low on the NSE.

Shares of Wockhardt Ltd are currently trading 7.5% lower at Rs. 1,191.90 on BSE after the US FDA made 9 observations for its manufacturing facility located at Shendra, Aurangabad last week.

Karnataka Bank gains 3%; Q3 net profit declines

The Bank has posted a net profit of Rs. 969.10 mn for the quarter ended December 31, 2015 as compared to Rs. 1069.40 mn for the quarter ended December 31, 2014.

Karnataka Bank stock was up by 3% at Rs. 255. The Bank has posted a net profit of Rs. 969.10 mn for the quarter ended December 31, 2015 as compared to Rs. 1069.40 mn for the quarter ended December 31, 2014.

Total Income has increased from Rs. 13646.90 mn for the quarter ended December 31, 2014 to Rs. 13698.30 million for the quarter ended December 31, 2015.

The scrip opened at Rs. 94.9 and has touched a high and low of Rs. 99.3 and Rs. 93.85 respectively. So far 653262(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1788.45 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 158 on 07-Jul-2015 and a 52 week low of Rs. 94.2 on 15-Jan-2016. Last one week high and low of the scrip stood at Rs. 114.3 and Rs. 94.2 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 33.24 % and 66.76 % respectively.

The stock is currently trading above its 200 DMA.

Results to watch out for: Wipro, Kotak Mahindra Bank among others

The results which are expected for today are Wipro, Kotak Mahindra Bank, Mindtree, Asian Paints, Hindustan Oil Exploration, Steel Strips Wheels Lt

The results which are expected for today are Wipro, Kotak Mahindra Bank, Mindtree, Asian Paints, Hindustan Oil Exploration, Steel Strips Wheels Ltd, Tata Metaliks, Tinplate Company of India,TTK Prestige, Delta Corp, Rallis India, Sical Logistics, Ashirwad Steels & Industries,Bharat Bijlee,Bhandari Hosiery Exports, Abirami Financial Services (India) Ltd, Bharat Seats, Minda Finance, Odyssey Technologies, Refex Industries, Veto Switchgears and Cables

Wipro Business Highlights

Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria andSwitzerland.

Infosys Business Highlights

IT Services

The IT Services segment had a headcount of 170,664 as of December 31, 2015. Wipro added 39 new customers during the quarter.

Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria andSwitzerland.

On December 23, 2015, Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry.

Wipro sustained its momentum in winning Large Deals globally as described below:

Wipro has entered into a multi-year global infrastructure support engagement with one of the largest medical devices companies in the world. Wipro will standardize and simplify the customer’s IT infrastructure across multiple service lines and in over 90 countries.

A leading global nutrition, health and wellness company has selected Wipro to enable the migration of a significant portion of its global IT applications estate to a hybrid cloud. As part of the engagement, Wipro will provide IaaS (Infrastructure as a Service), PaaS (Platform as a Service), an integrated hardware-software-services stack, and billing-metering-chargeback in a completely outcome-based model.

A large global retailer has selected Wipro as its quality engineering partner. Wipro will help develop a new operating and financial model that will allow the customer to accurately forecast its quality engineering spends and optimize costs, while driving continuous improvements in the quality and time-to-market of its offerings.

Wipro has won a large contract from a European general insurance multinational for provisioning and managing the company’s infrastructure.

A leading security solutions manufacturer, headquartered in the Nordic region, has selected Wipro to transform its IT infrastructure. As part of the five-year agreement, Wipro will leverage its Boundaryless Datacenter offering and will consolidate the customer’s existing data centers and implement a cloud-based-services model, including IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). 

Digital highlights

Wipro Digital capability combining design, engineering and analytics is seeing traction in the marketplace. Unique capabilities of Designit combined with Wipro’s technological prowess is driving synergistic deal wins. 

Wipro has been selected to help a global bank establish and operate its new digital platform, across 50 markets.

With global scale and a blend of strategy, design and engineering capabilities, Wipro’s agile teams will help support consistent customer experience, underpinned by continuous delivery across this new digital platform.Wipro will reinvent the onboarding process for customers, help improve sales conversion rates and reduce operational costs.

Wipro has won a multi-year deal from a large bank to enable omni-channel self-service by digitizing service processes and leveraging new age digital technologies. This will help the bank provide superior customer experience while reducing costs, in the form of lower call volumes.

Wipro will be augmenting the in-house team of a market leader in the automotive space, with telematics domain skills and advanced engineering expertise for their telematics program.

Designit has been selected by a leading South American bank to work on designing an entirely new banking concept and experience, targeted to create the next-generation banking experience for customers who are usually not attracted to traditional banking offerings anymore.

For a major German telecommunications brand, Designit has been assigned to create future smart ProductService-Experiences using artificial intelligence and similar emerging technologies. 

Cloud highlights

Our Cloud applications business is seeing a good traction in the market. In the quarter ending December 31, 2016 we engaged with several clients to design and deploy their enterprise processes leveraging industry leading SaaS products. A few marquee engagements include Cloud CRM processes rationalization for a UK-based gas and utility major, simplification of lead & opportunity management processes for a leading US based equipment rental company, modernization of a B2B order management system for a leading chemicals supplier company, design and deployment of recruitment processes for a business process outsourcing enterprise, implementation of performance and goal management processes for an American satellite service provider and transforming the

source-to-pay process for an global pharmaceutical and consumer packaged goods major. 

Wipro Q3 net profit rises 2%

Total Income has increased from Rs. 125886 mn for the quarter ended December 31, 2014 to Rs. 135743 mn for the quarter ended December 31, 2015.

Wipro Ltd has posted results for the third quarter ended 31st Dcember, 2015.

The net profit for the quarter stood at Rs. 2230 crore.

Wipro Q3IT Services Rupee revenue at Rs. 12,314 crore.

Total Income has increased from Rs. 125886 mn for the quarter ended December 31, 2014 to Rs. 135743 mn for the quarter ended December 31, 2015.

The Board of Directors of Wipro at its meeting held on January 18, 2016, have considered and approved an interim dividend of Rs. 5 per equity share of par value Rs.2 each to the members of the Company whose names appear in the Register of Members of the Company as on January 27, 2016, being the Record Date. 

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said – “We delivered Revenues in linewith our guidance. We saw a pick-up in large deal closures led by Global Infrastructure Services. It is becoming increasingly clear that customers want to simplify operations and optimize their IT spend while investing in Digital to transform their business. We are well-positioned to take advantage of this trend.”

Abidali Z. Neemuchwala, Chief Executive Officer-Designate of Wipro, said – “We are focused on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated Digital capabilities. We will leverage our strong culture of innovation and extremely talented employee pool to build compelling value propositions for our customers.”

Jatin Dalal, Chief Financial Officer of Wipro, said – “During the quarter, we have built competitive differentiation through the acquisition of two high-potential companies – cellent and Viteos. The impact on revenues from the Chennai floods were minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted operating margins for the quarter.”

As per IIFL estimates, Wipro is likely to post net profit of Rs. 2256.5 crore, 0.9% growth q-o-q and a 2.9% growth y-o-y. The Net revenue is estimated to be Rs. 12,810 crore, an increase of 2.4% q-o-q and 6.8% y-o-y. The EBIDTA margin is estimated to stand at 21%, a change of 0.6 bps q-o-q and 1.1 bps y-o-y.

Total Income has increased from Rs. 125886 mn for the quarter ended December 31, 2014 to Rs. 135743 mn for the quarter ended December 31, 2015.

IT Services

The IT Services segment had a headcount of 170,664 as of December 31, 2015. We added 39 new customers during the quarter.

Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria andSwitzerland.

On December 23, 2015, Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry.

Wipro sustained its momentum in winning Large Deals globally as described below:

Wipro has entered into a multi-year global infrastructure support engagement with one of the largest medical devices companies in the world. Wipro will standardize and simplify the customer’s IT infrastructure across multiple service lines and in over 90 countries.

A leading global nutrition, health and wellness company has selected Wipro to enable the migration of a significant portion of its global IT applications estate to a hybrid cloud. As part of the engagement, Wipro will provide IaaS (Infrastructure as a Service), PaaS (Platform as a Service), an integrated hardware-software-services stack, and billing-metering-chargeback in a completely outcome-based model.

A large global retailer has selected Wipro as its quality engineering partner. Wipro will help develop a new operating and financial model that will allow the customer to accurately forecast its quality engineering spends and optimize costs, while driving continuous improvements in the quality and time-to-market of its offerings.

Wipro has won a large contract from a European general insurance multinational for provisioning and managing the company’s infrastructure.

A leading security solutions manufacturer, headquartered in the Nordic region, has selected Wipro to transform its IT infrastructure. As part of the five-year agreement, Wipro will leverage its Boundaryless Datacenter offering and will consolidate the customer’s existing data centers and implement a cloud-based-services model, including IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). 

Digital highlights

Our Digital capability combining design, engineering and analytics is seeing traction in the marketplace. Unique capabilities of Designit combined with Wipro’s technological prowess is driving synergistic deal wins. 

Wipro has been selected to help a global bank establish and operate its new digital platform, across 50 markets.

With global scale and a blend of strategy, design and engineering capabilities, Wipro’s agile teams will help support consistent customer experience, underpinned by continuous delivery across this new digital platform.Wipro will reinvent the onboarding process for customers, help improve sales conversion rates and reduce operational costs.

Wipro has won a multi-year deal from a large bank to enable omni-channel self-service by digitizing service processes and leveraging new age digital technologies. This will help the bank provide superior customer experience while reducing costs, in the form of lower call volumes.

Wipro will be augmenting the in-house team of a market leader in the automotive space, with telematics domain skills and advanced engineering expertise for their telematics program.

Designit has been selected by a leading South American bank to work on designing an entirely new banking concept and experience, targeted to create the next-generation banking experience for customers who are usually not attracted to traditional banking offerings anymore.

For a major German telecommunications brand, Designit has been assigned to create future smart ProductService-Experiences using artificial intelligence and similar emerging technologies.