Market may open slightly higher

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 11.50 points at the opening bell. The market remains shut tomorrow, 18 April 2014, on account of Good Friday. Wipro, CRISIL, GlaxoSmithKline Pharmaceuticals among others will unveil January-March 2014 results today, 17 April 2014.

HCL Technologies announced before market hours that consolidated net profit as per US GAAP rose 8.5% to Rs 1624 crore on 2% rise in revenues to Rs 8349 crore in Q3 March 2014 over Q2 December 2013.

HCL Tech said that the board of directors of the company at its meeting held on 17 April 2014, inter alia, has declared an interim dividend of Rs.4 per share of Rs 2 each of the company for the financial year ending 30 June 2014 (FY 2014).

HCL continues to push the pedal on its new generation propositions including Digital System Integration while maintaining its profitable growth trajectory.

"Our leadership has been driven by our commitment towards sustainability, diversity and trust through transparency. With an emergence of an increasingly positive macro environment these values will continue to be HCL's key differentiators and provide an impetus to our future growth", said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.

"We continue on our growth momentum with a strong revenue growth of 3% QoQ along with 10th straight quarter of margin expansion. Our EBIT has registered an impressive expansion of 7.1% sequentially and 44.5% YoY resulting in a healthy EBIT margin of 24.6%. The Application Services business registered a robust performance led by Digital Systems Integration proposition on the discretionary side and ALT ASM on the non-discretionary side this quarter. Infrastructure Services have continued to punch their weight in the market", said Anant Gupta, President & CEO, HCL Technologies.

"We continue on our journey of making significant investments in talent acquisition by on-boarding several senior leaders representing a mix of industry and skill profiles to exponentially multiply our capability in the emerging Digital Systems Integration space.", he added.

"Our success with the industrialized delivery model, increasing number of contracts moving into steady state, savings on G&A front, helped in improved net income margin of 19.4% this quarter, up from 15.9% in the corresponding quarter of last year. This has provided us more room for making relevant investments in a rapidly changing market landscape. Our focus on generating higher free cash flow continued during the quarter with free cash flow as %age of EBITDA reaching 73%, up from 61% in the corresponding period last year. The return on capital employed (LTM basis) was at 38%, higher than 32% achieved in the corresponding quarter last year", said Anil Chanana, CFO, HCL Technologies.

TCS' consolidated net profit rose 2.3% to Rs 5297 crore on 1.2% growth in revenue to Rs 21551 crore in Q4 March 2014 over Q3 December 2013. The results are as per International Financial Reporting Standards. Net profit jumped 37.5% to Rs 19117 crore on 29.9% growth in revenue to Rs 81809 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

The company added 18,564 employees on gross basis and 9,751 employees on net basis in Q4 March 2014.

Commenting on the company's FY 2014 performance, N. Chandrasekaran, CEO and MD, TCS said, We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully.

Looking forward to financial year 2014-15, Mr Chandrasekaran added, We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. As on organization, we remain focused on disciplined execution of our strategy as well as on energizing 300,000 TCSers to ensure they make a difference to their customers, their colleagues and the community.

Rajesh Gopinathan, CFO said, Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are continuously investing to stay ahead of the curve.

TCS said that there was holistic growth across markets and industries during the financial year. Europe led growth in major markets, while UK and North America continue to grow in line with the company average, the company said. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY14, the company said in a statement.

TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions, the company said in a statement.

TCS' board of directors at its meeting held on Wednesday, 16 April 2014, recommended a final dividend of Rs 20 per share for FY 2014.

JSW Steel announced after market hours on Wednesday, 16 April 2014 that company has on 15 April 2014 acquired 50% stake in Vallabh Tinplate (VTPL). On 8 April 2014, the company intimated that it had on 7 April 2014 acquired 26% equity stake in Vallabh Tinplate.

On 21 February 2014, JSW Steel had informed that the company, subject to customary closing conditions and third party consents, intends to acquire 26% equity stake in VTPL immediately and increase it to 50% in due course.

Clariant Chemicals (India) turns ex-dividend today, 17 April 2014, for final dividend of Rs 20 per share for the year ended 31 December 2013.

Esab India turns ex-dividend today, 17 April 2014, for final dividend of Re 1 per share for the year ended 31 December 2013.

Vesuvius India turns ex-dividend today, 17 April 2014, for dividend of Rs 4.75 per share for the year ended 31 December 2013.

Titagarh Wagons (TWL) after market hours on Wednesday, 16 April 2014 said that Titagarh Group promoted by the Chowdhary family has increased its stake in Cimmco. The company which was once owned by the SK Birla group was taken up for revival by the Titagarh Group and the Birlas jointly. The BIFR had sanctioned the scheme of revival for Cimmco in 2010. Pursuant to the Scheme, about 75% of the shares of Cimmco were allotted to Cimco Equity Holding, a special purpose vehicle (CEHPL) which was jointly owned by Titagarh and the Birlas. As per the filings made with BSE, Titagarh has increased its shareholding in CEHPL to 99% and pursuant to conversion of OFCD amounting to Rs 64.50 crore. As per the Sebi norms, this has triggered a mandatory open offer for a further 25.08% of Cimmco's shares at Rs 15.50 per share in the open market and detailed public announcement etc. in this regard will be issued in accordance with the applicable Regulations of SEBI, TWL said in a statement.

Late last week, Cimmco's Board had also approved issue of 8% non cumulative redeemable preference shares aggregating to the extent of Rs 50 crore by Cimmco to its promoter group entity- TWL on private placement basis and such infusion also approved by Titagarh's Board.

Commenting on this, Mr. Umesh Chowdhary, Vice Chairman and Managing Director of the Titagarh group said, "Cimmco's revival involved a substantial and uphill exercise which was carried out satisfactorily and the company's net worth turned positive thus enabling Cimmco to be discharged from the purview of BIFR in just about nine months following the sanction of Rehabilitation Scheme by the Ld. BIER in early 2010. However, over the last couple of years, performance of Cimmco has suffered setback mainly due to non-release of wagons procurement order by Indian Railways- single largest customer and various macro economic factors.

TWL, a promoter group entity of Cimmco has reaffirmed its confidence and agreed to subscribe to the 8% non-cumulative redeemable preference shares to the extent of R 50 crore on private placement basis and also conversion of OFCD of Rs 64.50 crore in CEHPL. The fund raised from the issue would be utilized for general corporate purposes including derisking the business by diversification into related area(s) of operations for which the plant at Bharatpur is fully equipped and also to reduce some higher cost debt of Cimmco. While Cimmco will continue to be a listed company, Titagarh would now have significant ownership of the shareholding of the company. Cimmco has very distinct and inherent advantages in terms of its infrastructure and location. In today's socio political environment, it is extremely difficult to establish such an infrastructure as is available with Cimmco. The plant is located on almost 200 acres of land in Bharatpur which has recently been declared under National Capital Region. We have a lot of plans for Cimmco and are very confident of making Cimmco a flagship company of the group", Mr. Chowdhary added.

Cimmco, incorporated in 1943 set up its plant in the district town of Bharatpur (Rajasthan), The facility is located over about 188 acres of land.

Jet Airways (India) after market hours on Wednesday, 16 April 2014 in a clarification to the exchanges regarding news item titled "Jet cancels orders for 17 Boeing" said that the information in the news article is incorrect. The company has not cancelled any aircraft order. The company, has in fact, opted for more fuel efficient variant, Jet Airways (India) said in its clarification.

Mindtree's consolidated net profit rose 11% to Rs 98.20 crore on 4.2% growth in revenue to Rs 823.70 crore in Q4 March 2014 over Q3 December 2013. The result was announced after market hours on Wednesday, 16 April 2014.

In dollar terms, Mindtree's consolidated net profit rose 11.7% to $15.9 million on 4.4% growth in revenue to $132.8 million in Q4 March 2014 over Q3 December 2013.

Mindtree's consolidated net profit surged 32.9% to Rs 450.80 crore on 28.4% growth in revenue to Rs 3031.60 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

In dollar terms, Mindtree's consolidated net profit rose 19.3% to $74.6 million on 15.1% growth in revenue to $501.50 million in FY 2014 over FY 2013.

Commenting on the company's financial performance, Krishnakumar Natarajan, CEO & MD, Mindtree said, FY14 has been a momentous year for Mindtree. We crossed half a billion dollars in revenues, $100 million in operating profits and Rs 100 of EPS. As we celebrated this success, I would like to thank all our clients, partners, investors and Mindtree Minds for their immense faith and contribution. We have progressed well in our journey to increase our strategic relevance to our clients. We will continue to aspire to deliver superior financial performance, innovation, industry leadership in our chosen verticals, social responsibility and corporate governance.

Mindtree has 207 active clients as of 31 March 2014. The company added 397 employees in Q4 March 2014 on a gross basis.

Mindtree's board of directors at its meeting held on Wednesday, 16 April 2014, recommended interim dividend Rs 5 per share for Q4 March 2014. Further, the Board has recommended a final dividend of Rs 5 per share for FY 2014 and a special dividend of Rs 5 per share for completion of 15 years in business. If the proposed 1:1 bonus share issue is approved by shareholders prior to the date of the AGM, the final & special dividend amounts would be accordingly reduced to 25% (Rs 2.5 per share), Mindtree said in a statement.

Aarti Industries after market hours on Wednesday, 16 April 2014 in a clarification issued to the stock exchange said that a misquoted article on fire incident at the Boisar unit of the Aarti Industries was published in a Gujarati newspaper daily on 14 April 2014. Aarti Industries said that the article is erroneous and based on wrong information. It added that there was no such incident of fire at any unit of Aarti Industries and the article is published based on wrong information. The concerned newspaper daily has been approached to make suitable clarifications for the same, Aarti Industries said.

Hindustan Construction Company (HCC) at the fag end of trading hours on Wednesday, 16 April 2014 said it has been awarded an Rs 300 crore contract by Delhi Metro Rail Corporation (DMRC). This contract is for design and construction of 1.54 KM long twin tunnel on Dwarka-Najafgarh metro corridor of phase Ill of Delhi Metro. This is the third contract for underground metro received by HCC since October 2012 under the phase Ill development of Delhi Metro aggregating Rs 1539 crore, HCC said. The construction work would be completed in 36 months, it added.

On winning contracts, Arun Karambeklar, President and Whole Time Director, HCC said, HCC has been undertaking challenging assignments in underground metro development and repeat order from DMRC reflects our ability to execute complex assignments. Last month, HCC completed the 'up-line tunnel' of CC30 package well ahead of all peers working on phase III development.

Solar Industries India after market hours on Wednesday, 16 April 2014 said that its board of directors has transferred the shares of its subsidiary company Navbharat Coalfields to Navbharat Fuse Company upon compliance of the terms and conditions of the share purchase agreement, which had been placed and approved by the Board in its earlier meeting.

Shasun Pharmaceuticals (Shasun) after market hours on Wednesday, 16 April 2014 said that Ascent Capital Advisors India, a private equity investor has taken a minority stake in Alivira Animal Health (Alivira), a joint venture (JV) between the company and Sequent Scientific engaged in developing, manufacturing and sale of veterinary products inclusive of both API (Active Pharmaceuticals Ingredients) and formulations in the global market.

The United States on Wednesday urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment, saying Washington would like to see bilateral trade grow to $500 billion a year.

The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Voting in Maharashtra in the crucial fifth phase of the Lok Sabha elections takes place today, 17 April 2014. Nineteen seats are going for elections in this phase. Voting has also begun in Madhya Pradesh with 142 candidates in the fray in 10 Lok Sabha constituencies. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.

Key benchmark indices edged lower on Thursday, 16 April 2014 after private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. The forecast of below-normal rains triggered worries that food price inflation will edge up. Increase in global crude oil prices also hit sentiment on the domestic bourses adversely. The S&P BSE Sensex shed 207.70 points or 0.92% to settle at 22,277.23 on that day, its lowest closing level since 27 March 2014.

Foreign institutional investors (FIIs) sold shares worth a net Rs 44.69 crore on Wednesday, 16 April 2014, as per provisional data from the stock exchanges.

Most Asian stocks edged lower in choppy trade on Thursday. Key benchmark indices in South Korea, Japan, Singapore and China fell 0.14% to 0.39%. Key benchmark indices in, Indonesia, Hong Kong and Taiwan were up 0.05% to 0.45%.

Premier Li Keqiang said China isn't considering strong stimulus, and reiterated that economic growth a bit higher or lower than 7.5% is a reasonable range, according to a statement posted on the central government's website. The government said it will lower reserve ratios at some rural lenders.

US stocks rose to their highest level in a week on Wednesday, encouraged by a crop of corporate earnings and reassuring US and Chinese economic data.

The US economy continued to expand in most regions as businesses benefited from a rebound from harsh winter weather earlier in the year. Eight of 12 Fed districts characterized growth as modest or moderate, the Fed said in its Beige Book business survey, based on reports gathered before April 7. Industrial production rose more than forecast in March after a February gain that was twice as big as previously estimated. A Commerce Department report showed the pace of US home construction rebounded less than forecast in March.

In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability.

The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained, Yellen said to the Economic Club of New York.

The gap, in both cases, is large, with a jobless rate of 6.7% more than a percentage point higher than the top end of the Federal Open Market Committee's estimate of full employment. Inflation, by the Fed's preferred measure, is more than a percentage point below its 2% goal. It will take more than two years for the economy to close in on the Fed's goals, she said, adding that the Fed's forecasts in the past were disrupted by negative surprises, not positive ones.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.

Meanwhile, Ukraine accused Russia of fueling terrorism in its eastern regions as a move against separatists in the town of Kramatorsk stalled on the eve of an international conference aimed at defusing the crisis. Ukrainian government troops attempted to press on with an anti-separatist offensive that freed an airfield near Kramatorsk. Authorities sent armored vehicles into the Donetsk region town, only to have some of them seized by pro-Russian activists who also disarmed a number of soldiers. NATO is strengthening its military footprint along its eastern border immediately in response to Russia's aggression in Ukraine, the alliance's chief said on Wednesday.

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