Tata JLR to set up manufacturing plant in Brazil

Tata Motors -owned Jaguar Land Rover (JLR) has said it would set up its first manufacturing unit in Brazil with an investment of up to 240 million pounds by 2020.

A landmark agreement between the iconic British luxury carmaker and the Brazilian authorities will result in a plant based in the state of Rio de Janeiro.

It will initially employ 400 people and generate additional jobs in the supply chain, aimed at an annual production capacity of 24,000 vehicles.

"This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies," said JLR CEO Dr Ralf Speth.

"Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products," he added.

Construction of the premium manufacturing facility will commence in mid-2014 and the first vehicles are expected to come off the assembly line in 2016, subject to the final approval of the plans from the Brazilian federal government under its Inovar-auto Programme.

Based in the City of Itatiaia, JLR's planned expansion into Brazil is the next major step in the company's strategy to increase its global manufacturing footprint and create additional capacity by tapping into the South American market potential.

"The choice of Rio de Janeiro to host the Jaguar Land Rover's new facility is another historic achievement for our  state. We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labour and important suppliers," said Sergio Cabral, Governor of Rio de Janeiro State, who signed the agreement in Rio alongside Phil Hodgkinson, JLR global business expansion director.

UK-based JLR has had a presence in the Brazilian market for more than 20 years, with a national sales company in Sao Paulo employing almost 100 people.

There are currently 35 dealers across Brazil with further expansion planned in the next year. So far in 2013, Jaguar Land Rover sales in Brazil have increased by more than 40 percent to 9,549 vehicles over the 10 month period.

The best-selling models in the country include Range Rover Evoque, Freelander and Discovery.

JLR has three advanced manufacturing facilities in the UK and is in the process of building its first state-of-the-art advanced engine facility at 54 South Staffordshire Business Park in the West Midlands region of England at an investment of over 500 million pound, creating almost 1,400 new jobs.

Tata Motors stock price

On December 06, 2013, Tata Motors closed at Rs 391.00, up Rs 0.70, or 0.18 percent. The 52-week high of the share was Rs 405.00 and the 52-week low was Rs 252.10.

The latest book value of the company is Rs 59.47 per share. At current value, the price-to-book value of the company was 6.57.

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US law firm to represent India in Loop arbitration case

Government has appointed US law firm Curtis, Mallet-Prevost, Cole and Mosle LLP, whose top lawyers may charge up to USD 700 per hour, for representing it in international arbitration filed by Khaitan Holdings seeking damages of about USD 1 billion.

"The government has appointed Curtis, Mallet-Prevost, Cole and Mosle LLP, USA based-law firm, as counsel in the arbitration," an official source said.

The law firm will charge fees in the range of USD 160-700 per hour based on the level of lawyer rendering services, the source added. The firm will charge for all third party expenses at its actual cost.

The government is also believed to have agreed to pay business class airfares for travelling and related expenses based on actual bills. The firm may also charge USD 0.1 per photocopy and USD 60 per hour for proofreading under the agreement, sources said.

The arbitration between Khaitan Holdings and the government will take place in London. Khaitan Holdings holds 26.95 per cent stake in Loop Telecom whose 21 telecom 2G licences were cancelled by the Supreme Court in 2012.

Mauritius-based Khaitan Holdings said that Loop paid a cash entry of Rs 1,454.94 crore and financial guarantees worth Rs 812 crore.

Khaitan Holdings has sought return of USD 140 million invested by it in Loop along with 12 percent interest from the date of receipt of the investment till the date it receives the claim, its share of the lost shareholder revenue estimated in excess of USD 1 billion, loss of the market values of the licences in excess of USD 300 million.

Khaitan stock price

On November 27, 2013, Khaitan (India) closed at Rs 20.50, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 28.50 and the 52-week low was Rs 20.00.

The latest book value of the company is Rs 115.85 per share. At current value, the price-to-book value of the company was 0.18.

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Cement demand set to improve in most parts of India: Survey

After a period of slowdown, demand for cement is expected to pick up mainly because of the increase in Government spends in the infrastructure sector, a survey by ICICI Securities has found.

The demand for the key construction material has improved in states like Punjab, Haryana, Uttar Pradesh, Bihar and Maharashtra, while its prices have increased by Rs 30-40 per bag in the past two months, the leading brokerage said in a statement here today.

Also Read: Growth in 8 core sector industries declines by 0.6% in Oct

Others like Rajasthan, Gujarat, West Bengal and Karnataka are showing initial signs of demand improvement, while requirement in Andhra Pradesh and Tamil Nadu is likely to remain weak, it said. "We continue to maintain our positive stance on the sector and expect demand to pick up on the back of healthy rural housing demand due to a good monsoon, gradual pick up in Government infrastructure spends and low base of the past year," the financial services firm said.

In November, cement despatches grew by around 3-4 percent year-on-year while they declined by 7-8 percent on month-on-month basis to around 18.5 MT, impacted by sand mining ban in Rajasthan (partially lifted on Nov 26), cyclones in Andhra Pradesh and Odisha, Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi and festive season, it said.

The year-to-date demand growth in FY14 is likely to be at 3-4 per cent YoY led by east and central regions, where expansion is expected to be 6-8 percent. North region has likely grown by 2-3 percent, while west and south are expected to have broadly flat demand. Cement prices have been hiked by Rs 10-15 a bag (50kg) in north, central and west regions effective December 2, while they were broadly flat in south and east. On an average pan-India prices increased by 1-2 percent MoM, while remained flat YoY to Rs 284 a bag in November.

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SBI panel says nothing wrong in loan sanctioned by Acharya

Dec 06, 2013, 09.30 PM IST

Acharya, who headed the mid-corporate group for the bank, was alleged to have facilitated the sanction of a loan against some favours.

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SBI panel says nothing wrong in loan sanctioned by Acharya

Acharya, who headed the mid-corporate group for the bank, was alleged to have facilitated the sanction of a loan against some favours.

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SBI panel says nothing wrong in loan sanctioned by Acharya

Acharya, who headed the mid-corporate group for the bank, was alleged to have facilitated the sanction of a loan against some favours.

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An internal panel of the State Bank of India , which probed graft allegations against Deputy MD Shyamal Acharya, has found there was nothing 'irregular' in sanctioning of the loan in question.     

Bank Chairperson Arundhati Bhattacharya said the internal committee has not found any wrong doing by Acharya.

Also Read: CBI continues SBI probe, finds 4kg gold in Dy MD's lockers

Acharya, who headed the mid-corporate group for the bank, was alleged to have facilitated the sanction of a loan against some favours.     

"There is nothing irregular with the way the loan has been passed," a bank spokesman told PTI here today.     

He declined to answer when asked what would happen to the case now, and whether Acharya, who was asked to go on leave after the allegations surfaced last month and CBI started a probe, would resume work.     

"This is only an internal committee report," the spokesperson said. The report was to have been submitted on November 30.     

Financial Services Secretary Rajiv Takru said in New Delhi that the ministry has received SBI's internal probe report and is looking into it. He also said that he discussed the report with Bhattacharya.     

"SBI has submitted the internal enquiry report in respect of sanction of a loan by the credit committee headed by Acharya to the Department of Financial Services. The members of the internal enquiry committee have noted that the sanction appears to have been given in the ordinary course of business," the bank said in a statement.     

The two-member probe panel comprised of Hemant Contractor and A Krishna Kumar, the senior-most managing directors. The economic offences wing of the CBI registered a case against Acharya on November 24 after raiding his house following a tip off.     

A criminal case was also registered against former SBI official KK Kumarah and Piyoosh Goyal, Chairman of Delhi-based firm Worlds Window.     

Acharya is alleged to have asked for a bribe of Rs 15 lakh to clear a Rs 400-crore loan proposal of Goyal's firm.

SBI stock price

On December 06, 2013, State Bank of India closed at Rs 1861.80, up Rs 8.10, or 0.44 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 179.98 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 10.34. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company is 1.29.

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See FY14 EC margins at 11.5%; 50 bps variance likely: LT

Engineering conglomerate, L&T expects the company's FY14 engineering and construction (E&C) margins to be at 11.5 percent, however, given the nature of the business, one may see a 50 bps variance to this guidance.

Whole-time Director and CFO R Shankar Raman told CNBC-TV18 that he is not surprised by volatility in seen in the company's margins and one should take call on the margins based on the company's performance on a 12-month basis than three or six months. 

Speaking about the latest happenings in the company, he said that L&T is expecting Dedicated Freight Corridor Corp order  to begin by March 2014 for the west-north region, which is the company's area of focus. The industrial corridor may have begun, but actual ordering is expected to start post election.

Meanwhile, he is not too hopeful of capex cycle picking up anytime soon. He added that large industries are battling capacity underutilisation and recovery in the capex cycle looks another 12-18 months away.

Also Read: Capital goods expensive now, rally on poll hopes, say Experts

Below is the edited transcript of R Shankar Raman's interview with CNBC-TV18

Q: Lately you have got lot of real estate orders or civil orders vis-à-vis mechanical orders that you have in your order book. What is the percentage of real estate civil orders in your book as a percentage of your total engineering and construction (E&C) order book?

A: The real estate order is a sub-segment of the civil orders. Therefore, when we talk about civil orders, we talk about building factories, office space, and leisure health segment in terms of hospitals, malls, commercial buildings and residential buildings. So, all of this put together could be almost 40 percent of the total infrastructure sector orders that we report.

Infrastructure sector orders is a portion of the E&C orders which includes hydrocarbon and power. So, at a point in time if hydrocarbon and power has subdued as in the recent past, the percentage of the civil orders tend to look up, but it is fair to say if things even out maybe 25-30 percent of the orders could be civil oriented.

Q: You said civil orders are 40 percent now. How much were they and how much may they be one year down the line?

A: Little over, it was somewhere between 15-20 percent.

Q: Coming to the freight corridor and the industrial corridors, what is the amount of order flows from these and what is the speed of execution?

A: Dedicated freight corridor they have been ordering out on the north and the east segment as well as the West and the North segment. We have been one of the beneficiaries of that order flow for the west and the north segment. This is not the whole of the segment; it is a portion of the segment. The subsequent portions of west to north segments are under consideration.

I expect possibly before the code of conduct kicks in maybe some element of ordering and I am assuming that we lineup for polls in May, by March the code of conduct will kick in so end of February, early March we are hopeful that we will get subsequent segment of the west-north corridor getting ordered out. East and north, we are not closely following because we would like to play to our strength in so far as these corridors are concerned. It is very tempting to look at all segments but we also have to execute responsibly. So, I think we are focusing on the west to north at the moment.

On the industrial corridor, it's still early days. I think ordering will happen realistically post elections but lot of ground work needs to be done even before that to happen. So, the initial studies are underway. Since they have not fructified into a specific bid, they have not come to the finance stable as yet, but I am sure the business development people are working with concerned agencies to give it some technical shape. So, its still work in progress.

Q: Coming to margins, in the last reported quarter your margins were about 9.7 percent down from close to 11 percent year ago but 9.7 percent was inline with street expectation. Can you hold on to that in the second half?

A: 9.7 percent is a point in time; it is a six month number. I have been pleading with the street that being a project company, 90 day cycle is a cruel cycle for us. There are many quarters where progress may not be achieved in a linear fashion. The revenue recognition and the margins are consequence of what we have achieved on the project sites. Given the fact, 12 month is a more appropriate representation than a three month or six months period.

We got into the year on the back of 11.5 percent E&C margin in the pervious year and our guidance was that based on the order backlog and execution schedule that we were looking ahead; we felt that we should have a fighting chance of maintaining the margin in the E&C business by the end of the year.

We never bargained for linear maintenance of that margin so internally we are not surprised with the way volatility between the quarters. We also put out at the beginning of the year at it is very difficult to predict very precisely these margins. So, any guidance that we give at any point in time, the street would be well advised to add and subtract 50 bps because of the nature of the business that we run.

It is not very predictable. Consequently, I would expect us to be anywhere in 11.5 percent as a base with plus minus 50 bps variation in the E&C by the end of the year. We have four more months to go in our business the second half and within that the last quarter is the biggie. If all our planning and scheduling comes right in the remaining four months, we should reach where we targeted, but I would rather count my chickens after they are hatched.

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Worst over for steel sector; gross debt at Rs 21000cr: SAIL

In an interview to CNBC-TV18, CS Verma, Chairman, SAIL said that the worst is over for the steel industry. Steel companies in India and globally have upped prices by Rs 1,500-2,000/tonne and USD 15-20/tonne respectively, so one should expect better realisations.

He further highlighted that in 2012, global crude steel output went up by 0.7 percent, but in the first 10 months (January to October) of the current calendar year, the growth steel production globally is 3.2 percent.

SAIl's current gross debt stand at around Rs 21,000 crore and the company expects its capacity to reach 18.5 mt by FY14-end.

Meanwhile, Verma who is also officiating as the head of state-owned miner NMDC , said that company has increased prices of both fines and lumps by Rs 200/tn for December and is confident of achieving 30mt in FY14.

Also Read: Outperformance over, time to book profits in metals, says Nomura

Below is the edited transcript of CS Verma's interview with CNBC-TV18

Q: How your margins are expected to pan out as we head into the second half of the year? In the quarter gone by Steel Authority of India (SAIL) reported its lowest EBITDA per tonne for the past 26 quarters and we have spoken about the pressures that you have been facing for a while. Do you see this pressure continue in the second half?

A: The worst is over for the steel industry and prices have moved up a bit in last couple of months. Even the steel companies in India have increased the prices for their steel products in last two months by about Rs 1,500-2,000/tonne. Even globally, steel prices have gone up by about USD 15-20/tonne.

Input prices have also slightly gone up. In the times to come, we should get better realisation because steel industry is passing through a very challenging time, because global capacity utilisation has been only about 78-80 percent, meaning thereby that there is 20 percent surplus capacity available in the system. If you see the data now, it is on the path of revival. In the year 2012, global crude steel output went up by 0.7 percent, but in the first 10 months of the current calendar year, January to October the growth in steel production globally is 3.2 percent.

Q: You have some expansion plans as well, so your dependence on imported coal is likely to go up. Can you just give us how much you will be looking at imported coal going ahead and whether that will put pressure on your margins?

A: Today our imported coal requirement is somewhere about 12 million tonne. We are meeting two-third of the requirement of imported coal through imports from Australia and remaining from USA. Post expansion, our coal requirement will go up to a level of about 18 million tonne, so our production will also go up.

In fact, the coking coal prices had come down. From the peak level of about USD 300/tonne about two years back, today it is hovering around USD 140-150/tonne for imports from Australia and US coal prices are hovering around USD 130/tonne. Coal prices have come at historic low. Input prices have come down and realisations are slightly picking up. So, it gives me a positive outlook as far as the margins are concerned.

Q: What is your inventory at the moment?

A: Inventory is about 1 million tonne and that is needed in the system. We are having largest marketing network in India. We have about 3,000 dealers and 54 stockyards all over the country. So, we have to have some feedstock. This is the minimum inventory which we require.

Q: Jindal Steel & Power (JSPL) increased its prices, but you guys didn't. So is it because of the inventory situation that you did not raise your prices?

A: No, all the companies have increased the prices. In the last two months even our company has increased the prices by about Rs 1,500/tonne. By and large, the increase in prices has been same by all the steel companies in India.

Q: Can you tell us when your new 8 million tonne capacity will come on-stream? When is the start?

A: Today our capacity has already gone up by about 2.5 million tonne because we have already commissioned the blast furnace in Rourkela steel plant. This is 4,060 cubic meter blast furnace and is the largest operating blast furnace in India. With the start of the blast furnace in Rourkela steel plant our hot metal capacity which used to 40 million tonne has gone up to about 70.5 million tonne.

The second blast furnace is expected to be commissioned before the end of the fiscal in our IISCO Burnpur steel plant. By the end of the fiscal, our capacity will go up to a level of about 18-18.5 million tonne. The last blast furnace of the current phase of the modernisation and expansion is scheduled to be commissioned next fiscal.

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Promoters' FCCB conversion to boost networth: Essar Oil

Speaking to CNBC-TV18, Lalit Kumar Gupta, chief executive officer, Essar Oil, says the FCCBs will be converted at an average price of Rs 130 and Rs 153 in two different tranches.

Lalit Kumar Gupta, chief executive officer, Essar Oil says the company's promoters are converting the Foreign Currency Convertible Bond (FCCB) in order to boost the company's networth.

Speaking to CNBC-TV18, Gupta says the FCCBs will be converted at an average price of Rs 130 and Rs 153 in two different tranches.

Also read: Essar Oil to shut crude and secondary units for a week

Additionally, Gupta says that the company has high interest costs of Rs 3000 crore per annum, but it is likely to be reduced substantially by USD 150-200 million (Rs 15-20 crore).

Below is the edited transcript of Gupta's interview to CNBC-TV18. 

Q: Take us through the Foreign Currency Convertible Bond (FCCB) conversion because it's a large amount USD 260 million and the promoters will be converting these FCCBs at three times the market price or 2.5 times the market price?

A: Last year our promoter company had decided to convert optionally convertible debenture into compulsory convertible debenture in order to make sure that our networth is improving. Now they have decided to convert compulsory convertible debenture into equity and accordingly, they have given us notice. They are converting almost at an average price of Rs 130 and Rs 153 in two different tranches. So, USD 260 million will now get converted into equity and will definitely boost our networth.

Q: What are the pending FCCBs that Essar Oil has and what are the timelines of conversion and who would they be issued to. Would it only be the promoter company?

A: USD 260 million which is getting converted for which we have received a notice from our parent company, Essar Energy Plc, is getting converted immediately and thereafter we do not have any other remaining FCCB for conversion.

Q: The thing that stood out from your numbers last time was the below EBITDA numbers. You had interest cost on one side, which are decent but you have forex element, which is still impacting your numbers. How would both of these numbers pan out as you go forward?

A: We have clarified earlier in great detail that the foreign exchange variations which we show in our accounts, they are mark to market (MTM) provisions which get realised in the next quarter so they generally are to be seen in the context that they are accounting policies and not necessarily the losses.

Yes, there is interest of about Rs 3,000 crore plus as of now. About 100 percent of our revenues and expenditures are in dollars and so our earnings are also in dollars. Our natural currency is dollar so we are converting this which will substantially reduce interest by USD 150-200 million. Therefore, going forward we expect that interest burden should come down. In Q2 interest started showing some declining trend because of this conversion.

We have set up Essar Oil totally at USD 5 billion and today our debt including even sales tax is about USD 3.5 billion. So, if one sees it in context it is absolutely in control and once we convert interest expense into dollar loans, it is going to be within the limit.

Q: How much it could reduce in FY15?

A: Our present target is to convert about USD 2 billion into foreign currency and if we take saving of 6 percent, at least USD 120 million interest amount should go down further.

Q: Your gross refinery margins (GRMs) were also positively surprised the market in Q2. What has been the trend in Q3 so far?

A: Q2 was a monsoon quarter in

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Lupin launches generic Fenofibric Acid capsules in US

Dec 06, 2013, 01.43 PM IST

Lupin's US subsidiary Lupin Pharmaceuticals Inc (LPI) has launched its generic Fenofibric Acid Delayed- release capsules in the strengths of 45 mg and 135 mg.

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Lupin launches generic Fenofibric Acid capsules in US

Lupin's US subsidiary Lupin Pharmaceuticals Inc (LPI) has launched its generic Fenofibric Acid Delayed- release capsules in the strengths of 45 mg and 135 mg.

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Lupin launches generic Fenofibric Acid capsules in US

Lupin's US subsidiary Lupin Pharmaceuticals Inc (LPI) has launched its generic Fenofibric Acid Delayed- release capsules in the strengths of 45 mg and 135 mg.

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Drug firm Lupin today said its US arm has launched generic Fenofibric Acid capsules used for reducing cholesterol and fatty acids in the blood in the American market.    

Lupin Pharmaceuticals Inc (LPI), the company's US subsidiary has launched its generic Fenofibric Acid Delayed- release capsules in the strengths of 45 mg and 135 mg, Lupin said in a statement. The company had earlier received the final approval from the US health regulator (USFDA) for the same, it added.    

Also Read: Lupin launches generic GERD drug in the US market

The company's generic products are generic equivalent of AbbVie Inc's Trilipix delayed-release capsules in the same strengths.     

As per the IMS MAT September 2013 data, Trilipix delayed- release capsules in the strengths of 45 mg and 135 mg had annual US sales of nearly USD 449.5 million, Lupin said.

"The capsules are indicated as co-administration therapy  with statins for the treatment of mixed dyslipidemia,  treatment of severe hypertriglyceridemia and primary hyperchol esterolemia or mixed dyslipidemia," it added.

Lupin stock price

On December 06, 2013, at 14:15 hrs Lupin was quoting at Rs 859.90, up Rs 4.50, or 0.53 percent. The 52-week high of the share was Rs 946.35 and the 52-week low was Rs 569.00.

The company's trailing 12-month (TTM) EPS was at Rs 40.18 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 21.4. The latest book value of the company is Rs 108.15 per share. At current value, the price-to-book value of the company is 7.95.

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Annual interest outgo seen Rs 540 cr post CDR: Gammon India

Like most infrastructure companies,  Gammon India has been impacted by slower economic growth and project delays. The company's board on Wednesday approved a proposal to increase its authorise share capital from Rs 176 crore to Rs 15,047 crore, as banks that have lent to the company have been given the option to convert their loan into equity shares. Should the banks choose to do so, Gammon will issue up to 168 crore shares at Rs 27.05 apiece to the CDR lenders on a preferential basis. Banks have so far loaned the company around Rs 4500 crore. 

Also Read: Gammon India to monetise Mumbai property to cut debt

Gammon CFO Girish Bhat however says the entire CDR of the company has been approved and insists that it is only an enabling resolution. "It is not that lenders are converting this into equity shares; this is only an enabling resolution that if any event happens after 10 years, and the company is unable to repay its debt then we have got the right to convert it into equity," he told CNBC-TV18. He says debt on the book as on September 30 is Rs 4,290 crore.

The installments of the debt payment will start from April 15, 2015, and the interest rate for all funds has been reduced to an extent of almost 1 percentage point. The overall CDR package will be spread over 10 years. He expects yearly interest outgo to be Rs 540 crore going forward.

Below is the verbatim transcript of Girish Bhat's interview on CNBC-TV18

Q: Will the lenders be willing to convert their money into shares at Rs 27? The going price of your share is not even half that, so will they be willing?

A: Just to clarify, first of all we are in the CDR process. Our entire CDR of the company has been approved and this is the enabling resolution. It is not that lenders are converting this into equity shares, this is only an enabling resolution that if any event happens after 10 years, and company is unable to repay its debt then we have got a right to convert it into equity. So it is not that we are converting our debts into an equity. It is only an enabling resolution to increase the authorized capital of the company.

The shares which have been issued are basically out of the total Rs 14,500 crore of our banking limit, we have got a funding limits where the banks are funding Rs 4,500 crore. Balance is non-fund base limit so that fund base limit was the conversion any time in the future, it gets converted because of our default in a ten years period then the price has been fixed at Rs 27.05 only for 100 days.

Q: Can you tell us what is the debt on your books and what are the key features of the CDR package?

A: Debt on the book as on September 30 is Rs 4,290 crore. The overall CDR package indicates that we have been given a breather in terms of repayment amortization funding for the repayment of the debt, there is a moratorium for one and a half years. So the reinstallments of payment of the debt will start only from April 15, 2015, and the interest rate for all our funds has been reduced to an extent of almost around 1 percentage point. The overall CDR package is spread over 10 years. We started from July 1, 2013. Therefore it starts from that date and it extends to an extent of around 10 years and the first repayment of the debt will start from April 2015.

Q: Can you take us through the final shareholding structure of the company post the issue of fresh shares what will the promoters' stake stand at because currently they hold about 35 percent?

A: I think we have to rework it because it will be converted because promoters have contributed around Rs 100 crore as part of this CDR package. It has to be converted into equity share based on the price prevailing. So as per the Securities and Exchange Board of India (SEBI) guidelines, this will be converted as we go forward into an equity holding. I am not sure how exactly the effective end position of the promoters' contribution will lead to an end result of the promoters shareholding, but I am sure it will be definitely higher than 51 percent.

Gammon India stock price

On November 28, 2013, at 14:09 hrs Gammon India was quoting at Rs 13.60, up Rs 0.28, or 2.10 percent. The 52-week high of the share was Rs 43.20 and the 52-week low was Rs 8.15.

The latest book value of the company is Rs 125.60 per share. At current value, the price-to-book value of the company was 0.11.

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Expect substantial improvement in margins FY15 onwards: KEC

EPC player KEC International expects to see a substantial improvement in its margins from FY15 onwards, managing director Ramesh Chandak said in an interview to CNBC-TV18.

The company reported a consolidated net profit of Rs 22.1 crore in Q2FY14, up 34 percent, versus Rs 16.5 crore year-on-year (YoY). Total income stood at Rs 1,778 crore, up 6.6 percent, versus Rs 1,668 crore (YoY). Its EBITDA rose up 30.4 percent at Rs 112 crore compared to Rs 85.8 crore (YoY).

However, it is unlikely to see double digit margins , he added.

Chandak further highlighted that the second quarter is a seasonally weak quarter for infrastructure companies due to monsoon and the company is not facing any execution problems.

Meanwhile, KEC International hopes to clock 14-16 percent growth in sales for FY14.

Below is the edited transcript of Ramesh Chandak's interview with CNBC-TV18

Q: One thing that the street is quite positive is that they expect your operating margins to improve going forward. They improved quite a bit in Q2 and you have also indicated that your low margin legacy orders will also soon get completed, so overall in FY14 what is the expectation, how much the EBITDA margins can improve?

A: We are expecting EBITDA margins to be about 1 percent more than last year. Going forward, FY15 onwards, there will be a substantial improvement in the margin. This time we have some legacy contracts, which will get over by this year. In spite of that, our EBITDA margin should be about 1 percent more than last year.

Q: Revenue growth was muted last quarter. Our average has been about 22 percent but last quarter was only about 7 percent was that a one-off and will that be addressed as we go forward?

A: Quarter-to-quarter execution might change, but we are expecting around 14-16 percent growth and that should come according to us.

Q: You said that in FY14 margins will improve by 1 percent and FY15 it will be substantially higher, can they even touch the double-digit mark, your operating margins, in FY15?

A: No, I don't think so. They will not be double digit, but they will be in the range of 8-9 percent.

Q: Just to go back to Q2, did you have some execution problems and was that a bit of a one of in that case?

A: It is not a question of execution problem. It is a cycle of how you are executing, which contracts are coming to execution and because of the rainy season this year rainy season got extended not much work can be done. That impact is there.

KEC Intl stock price

On November 28, 2013, at 14:10 hrs KEC International was quoting at Rs 43.20, up Rs 0.35, or 0.82 percent. The 52-week high of the share was Rs 74.45 and the 52-week low was Rs 23.25.

The latest book value of the company is Rs 37.99 per share. At current value, the price-to-book value of the company was 1.14.

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