New design centre provides fillip to HCL Technologies
HCL Technologies surged 3.36%, to Rs 488.70 on setting up a dedicated design center for product engineering services in Bangalore for Augmentix Corporation.A total of 31,297 shares were traded on the BSE.The stock has been recovering since the last two weeks. From a recent low of Rs 411.93 on 13 June 2006, the stock rose to Rs 472.80 on 28 June 2006 as the market recovered from a bearish stronghold. Earlier, the stock dropped from a recent high of Rs 662.55 on 3 April to Rs 411.93 on 13 June 2006 under selling pressure in a weak market.
HCL Technologies is setting up a dedicated design center for product engineering services in Bangalore for Augmentix Corporation, one of the leading worldwide suppliers of mission critical solutions for rugged environments. This new dedicated center will allow the company to build on the range of services provided to Augmentix by working on next-generation server platforms and new initiatives.
HCL America, a subsidiary of HCL Technologies, had inked a multi-million dollar agreement with MSC Software Corporation, a global provider of simulation solutions, to participate in the 'One-Oracle' global rollout Oracle 11i applications project. The implementation will include the complete suite of Oracle applications, including financial, CRM, distribution, project and human resources modules.
Earlier this month, the company’s scheme of amalgamation of HCL Technologies (Mumbai), HCL Technologies BPO Services, HCL Enterprise Solutions, DSL Software, Shipara Technologies and Aquila Technologies, all wholly-owned subsidiaries of the company, was approved by the high courts of Delhi and Karnataka.
The company had also signed a distribution agreement for the Asia Pacific region with Qumus, the leading developer of enterprise compliance, governance and risk management solutions. The company is currently the sole distributor of Qumus products in the Asia-Pacific region.The company had also bagged a five-year outsourcing deal worth Rs 1,500 crore from a European electrical retailer, DSG International, in mid-January 2006.
The company had posted a strong third quarter report for the period ended 31 March 2006. The company’s net profit jumped 75%, to Rs 134.76 crore in Q3 March 2006 compared to Rs 76.76 crore during Q3 March 2005. The net sales for the same period jumped 99%, to Rs 708.50 crore from Rs 355.87 crore.
Gail India stiffens
Gail India rose 0.73%, to Rs 255 on signing the annual agreement for performance targets for the FY 2006-07.As many as 4.14 lakh shares were traded on the BSE.The counter had stumbled from a recent high of Rs 320.15 on 5 April to close at Rs 219.15 on 14 June 2006 under heavy selling pressure in a weak market, coupled with poor Q4 results as a result of the heavy subsidy burden. Here, the stock found support and appreciated, as the market recovered from the bearish stronghold, to close at Rs 253.15 on 28 June 2006.
Gail India has announced that the company and Petrobras, Brazil's energy giant, have signed a cooperation and confidentiality agreement last week to become partners during the forthcoming NELP VI bidding. Petrobras has also shown keen interest in partnering the company for exploration projects, including blocks in Iran such as block 12.Gail India has also signed an annual memorandum of understanding (MoU) for performance targets, for the financial year 2006-07. During the year 2006-07, the company has targeted transmission of 76.67 MMSCMD of natural gas from domestic sources and through LNG route. It includes the gas marketing target of 69 MMSCMD. It also provides for a production target of 3.20 lakh MT of polymers and about 1.25 million tonnes of liquid hydrocarbons.
Currently, the company's total exploration acreage is 91,350 sq. km. with the participating interest in 16 exploration blocks. Of these, 7 are on-land blocks and 9 are offshore blocks. The various consortium partners of the company in the 16 blocks are ONGC, GSPC, Gazprom, OIL, IOC, Hardy Exploration & Production, Enpro Finance, ENI India, Jubiliant, GGR Canada, Daewoo, OVL, Korea Gas, Oilex, Videocon, BPCL and HPCL. The company's participating interests in these blocks varies between 10 - 80%.
Recently, the company, along with its consortium partners, signed the exploration and production sharing agreement (EPSA) with the Government of the Sultanate of Oman for Block 56 in Oman. The company has 25% participating interest in the consortium.Gail had announced the incorporation of Aavantika Gas (AGL), a joint venture company between GAIL and Hindustan Petroleum Corporation (HPCL). The joint venture company will implement city gas projects for supply of piped natural gas (PNG) to domestic, commercial and industrial consumers and compressed natural gas (CNG) to automobile consumers in Madhya Pradesh.
The city gas project implementation initially in the city of Indore depending on gas availability and shall be expanded to other cities of Madhya Pradesh such as Gwalior and Ujjain on the basis of financial viability and gas availability.The company has so far formed eight joint venture companies, which are successfully implementing the city gas projects in various cities of the country. Continuing with the market leadership, the company is further planning to form state wise JVCs along with oil marketing companies for Rajasthan, Gujarat, Kerala, Karnataka and West Bengal in the near future.
Earlier this month, Gail India had sold out the entire quantity of the first ever LNG spot cargo bought from Algeria. The LNG, equivalent to 80 MMSCM of natural gas, was sold to consumers like NTPC, Delhi Vidyut Board, Birla Copper and some others. Going forward, the company is in discussion with major suppliers for bringing more LNG cargos from South East Asia, Middle East and North Africa. The first spot cargo of LNG from Sonatrach, Algeria, was received on 20 May 2006 at Dahej.
The company had made a provision of Rs 1,064 crore (previous year it was Rs 1137 crore) as subsidy to bail out the bleeding oil marketing companies as per a directive from the Ministry of Petroleum and Natural Gas.The company plans to invest Rs 5,460 crore in its Assam Gas Cracker project to be set up at an integrated petrochemical complex at Lepetkata, Dibrugarh. It will have a capacity of 2,20,000 tonnes per annum of ethylene and 60,000 tonnes per annum of propylene. It will also produce 55,000 TPA of Raw Pyrolysis Gasoline and 12,500 TPA of Fuel oil.
Gail India had also commissioned the Thulendi-Phulpur pipeline and gas supply has commenced to IFFCO in May. The 18 inch, 139 km pipeline, was commissioned ahead of the schedule committed to the customer for approximately Rs 150 crore.
On 3 March, Indian Oil Corporation (IOC) sold half of its stake in GAIL India for Rs 561 crore through block deals. A total of 20.4 million shares were sold at Rs 275 a share. Life Insurance Corporation (LIC) picked up 9 million shares, while Prudential Asia Fund Management bought around 2.8 million shares.
Gail India has announced that eight national and international firms have responded to the company's invite for the expression of interest (EOI) for transportation of CNG from the A1 block of Myanmar. CNG marine transportation has an inherent advantage over LNG shipping for transporting medium volume of gas up to a distance of 1,500 kms as it obviates the necessity of capital intensive investment towards liquefaction plant at source and degasification plant at delivery point, according to Gail.
On 11 March, Gail had announced that it would discontinue levying of marketing margin on the sale of natural gas covered under the Gas Pricing Order. This follows a communication from the Ministry of Petroleum and Natural Gas to ONGC, GAIL and OIL stating that they shall not levy any marketing margin on all category of consumers covered under the Gas Pricing order of 20 June 2005.
For the fourth quarter ended 31 March 2006, Gail reported 20.8% decline in net profit to Rs 409.26 crore compared to Rs 516.44 crore in Q4 March 2005. The net sales for the same period increased to Rs 3,659.81 crore from Rs 3,610.11 crore.GAIL India registered a net profit rise of 18%, to Rs 2,310.07 crore for the year ended 31 March 2006 as compared to Rs 1,953.91 crore. The net sales for the same period rose to Rs 14,459.41 crore from Rs 13,591.38 crore.