For private circulation only

For private circulation only

01 March 2008

A weekly publication of SMI

Market settles higher in event dominated week

The market posted gains last week amid volatile trade ahead of expiry of February 2008

derivatives contracts. The BSE Sensex posted gains for 3 out of 5 days, whereas the

S&P CNX Nifty advanced for 4 out of 5 trading sessions. Small-Cap and Mid-Cap indices

underperformed the Sensex.

The Finance Minister P Chidambaram proposed to hike the short term capital gains tax

from 10% to 15% in Union Budget 2008-09 which he presented to the parliament on

Friday, 29 February 2008. However there was no change in corporate tax and the rate of

Securities Transaction Tax (STT), too, was kept unchanged. The finance minister said

STT paid by the taxpayer will be treated like any other deductible expenditure against

business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs

duty was kept unchanged at 10%.

The Finance Minister (FM) announced changes in personal income tax slabs that will

bring down tax liability of individual tax payers substantially. With an eye on parliamentary

elections in 2009, FM also announced a package of a massive Rs 60000 crore of waivers

of loans of farmers.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week

ended Friday, 29 February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20%

to 5223.50, in the week.

The BSE Mid-Cap index rose 85.94 points or 1.13% to 7,680.39 in the week. The BSE

Small-Cap index rose 32.72 points or 0.34% to 9,628.13 in the week. Both these indices

underperfomed the Sensex.

Trading for the week started on an upbeat note with 30-share BSE Sensex gaining

301.50 points or 1.74% at 17,650.57 on Monday, 25 February 2008. The broader based

S&P CNX Nifty was up 89.95 points or 1.76% at 5,200.70 on that day. Oil & gas and

information technology stocks were in demand.

The 30-share BSE Sensex rose 155.62 points or 0.88% at 17,806.19 on Tuesday, 26 February

2008 after Railway Minister Lalu Prasad Yadav provided thrust on modernising rail

infrastructure in Railway Budget 2008-09 which he presented to parliament on that day. The

broader based S&P CNX Nifty was up 69.35 points or 1.33% at 5,270.05 on that day.

The key benchmark indices came off higher levels in late trade on Wednesday, 27

February 2008, to settle almost flat due to selling in IT and banking counters. The 30-

share BSE Sensex rose 19.80 points or 0.11% at 17,825.99. The broader CNX S&P Nifty

ended down 1.65 points or 0.03% at 5,268.40 on that day.

On Thursday, 28 February 2008, the barometer index BSE Sensex ended almost unchanged

in volatile trade as derivative contracts for February 2008 series expired. The 30-share

BSE Sensex ended down 1.51 points or 0.01% at 17,824.48. However, the broader CNX

S&P Nifty was up 16.7 points or 0.32% at 5,285.1 on that day.

Market slipped in volatile trade on 29 February 2008 after finance minister announced a

hike in short term capital gains tax to 15% from 10%, in Union Budget 2008-09. The 30-

share BSE Sensex slipped 245.76 points or 1.38% at 17,578.72. S&P CNX Nifty declined

61.60 points or 1.17% to 5,223.50 on that day.

India’s largest private sector firm by market capitalization and oil refiner Reliance

Industries rose 1.17% at Rs 2458.25 in the week. The company said on Tuesday, 26

January 2008 it had discovered more gas in an exploration block off India’s east coast.

This is the company’s eight discovery in the block.

Maruti Suzuki surged 13.12% to Rs 867.20 and Tata Motors rose 0.80% to Rs 700.25 in

the week. The government reduced excise duty on small cars to 12% from 16% and cut

excise duty on hybrid cars to 14%, from 24%, in the Budget.

DATE PURCHASES SALES NET

(RS CR) (RS CR) (RS CR)

FII (Equity)

Week Ended (02/28) 12787 12096 691

This Month (Feb 28) 73777 72043 1733

Jan ’99 to Till Date 1799616 1604289 186789

MF (Equity)

Week Ended (02/28) 4607 3428 1179

This Month (Feb 28) 15112 14891 221

Feb ’00 to Till Date 466835 432210 34627

INDEX SUMMARY

29-FEB-08 22-FEB-08 VARI(%)

SENSEX 17579 17349 1

NIFTY 5224 5111 2

BSE TECH 3265 3316 -2

BSE - 100 9405 9241 2

BSE -200 2217 2183 2

BSE -500 7108 6997 2

DOLLEX - 30 3611 3566 1

DOLLEX - 200 924 910 2

BSE - PSU 8484 8209 3

BSE AUTO 4887 4708 4

BSE BANKEX 10114 10150 0

BSE CAP. GOODS 16120 15656 3

BSE CONS DURA 4699 4890 -4

BSE FMCG 2274 2231 2

BSE HEALTHCARE 3929 3745 5

BSE IT 3862 3918 -1

BSE METAL 16740 16369 2

BSE OIL & GAS 11032 10673 3

SHAREMASTERINDIA

TOP GAINERS - Weekly

29-FEB-08 22-FEB-08 VARI (%)

GLAXOSMITH 1109.40 953.45 16.4

GODREJ CONS 134.85 116.30 16.0

PUNJAB TRACT 282.65 244.45 15.6

GUJ.IND.POW. 110.75 97.40 13.7

MARUTISUZUK 867.20 766.65 13.1

LANCO INFRA 475.20 421.50 12.7

CMC LTD. 924.85 829.00 11.6

NAT.ALUM 463.40 415.45 11.5

SUN PHARMA. 1225.90 1102.25 11.2

ING VYSYA BN 353.10 318.40 10.9

BHEL 2282.00 2058.85 10.8

TVS MOTOR L 43.70 39.50 10.6

CAIRN IND 228.20 206.35 10.6

MAH & MAH 692.80 628.80 10.2

UNITED PHOSH 334.85 305.15 9.7

TOP LOSERS - Weekly

29-FEB-08 22-FEB-08 VARI (%)

HEXAWARE TEC 74.50 82.55 -9.8

TITAN IND. 1097.60 1191.45 -7.9

BRIGADE 253.05 273.60 -7.5

EIH LTD. 172.50 186.35 -7.4

SUZLONENERGY 281.30 303.80 -7.4

POLARIS SOFT 88.80 95.40 -6.9

DLF LIMITED 780.55 828.90 -5.8

JSWSL 1061.55 1115.45 -4.8

REL.CAP. 1818.25 1901.95 -4.4

CORPN.BANK 325.55 340.20 -4.3

JETAIRWAYS 737.35 769.15 -4.1

GEOMETRIC L 67.65 70.50 -4.0

MICRO INKS L 305.20 317.45 -3.9

CHAMBAL FERT 58.50 60.75 -3.7

WELSP GUJ SR 440.45 457.20 -3.7

Market may stabilise

The market might stabilise in the coming weeks with the key event viz the Union Budget 2008-2009

over. Rollover of derivative contracts from February 2008 series to March 2008 series was decent.

Nifty saw rollover of about 75% and market wide rollover was 72% to 73%, when derivative

contracts expired on 28 February 2008.

The Finance Minister P Chidambaram proposed hike the short-term capital gains tax on sale of

shares to 15% from 10% in Union Budget 2008-09 which he presented to the parliament on Friday,

29 February 2008. However there was no change in corporate tax and the rate of Securities

Transaction Tax (STT), too, was kept unchanged. The finance minister said STT paid by the taxpayer

will be treated like any other deductible expenditure against business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs duty was

kept unchanged at 10%.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week ended 29

February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20% to 5223.50, in the week.

Sensex is down 3,628.05 points or 17.10% from a record high of 21,206.77 hit on 10 January

2008. The barometer index is down 2708.27 points or 13.34% in calendar 2008 so far.

The wholesale price index rose 4.89% in the 12 months to 16 February 2008, higher than the

previous week’s rise of 4.35%, government data showed on Friday, 29 February 2008.

Domestic market will also be influenced by global markets. Federal Reserve Chairman Ben Bernanke

signaled a readiness to cut interest rates again to prevent further damage to the weak US economy,

even as he took note of rising inflation risks last week. Delivering the Fed’s semiannual report on

the economy to Congress, Bernanke made clear the central bank was worried a deepening housing

slump, softening jobs market and tighter credit could dim an already bleak economic outlook.

Higher crude oil prices are also a matter of concern. Crude oil prices touched a record high above

$103 a barrel on Friday, 29 February 2008, after Ecuador shut a key export pipeline and a fire hit a

major European natural gas plant, while the US dollar’s fall to a series of lows kept fresh funds

flowing in.

SHAREMASTERINDIA P/E Ratio

* BSE 500 companies

HIGH P/E RATIO STOCKS* LOW P/E RATIO STOCKS*

COMPANY PRICE 52 WEEK PE IND.

(29-FEB-08) HIGH LOW PE

Moser Baer (I) 177 345 164 182 13

Bombay Dyeing 693 1019 433 135 14

NIIT 124 172 85 133 5

GVK Power Infra 50 94 28 129 9

BOC India 158 233 120 94 13

Gulf Oil Corpn. 164 387 152 87 13

DCM Shriram Cons 72 106 56 79 21

PTC India 119 202 54 77 8

Brigade Enter 253 428 185 76 14

Karuturi Net. 270 442 74 67 10

NOCIL 30 68 20 55 13

Subex Ltd 273 675 234 51 15

Guj. St.Petronet 71 114 44 51 10

Tata Power Co. 1401 1641 483 50 9

Siemens 817 1125 484 50 20

Redington India 356 458 118 49 13

TVS Motor Co. 44 79 33 48 17

Puravankara Proj 311 535 290 45 14

Alstom Projects 730 1109 369 45 23

Asahi India Glas 87 137 85 43 12

Ganesh Housing 466 830 278 39 14

Rain Commodities 212 309 108 39 28

Kirl. Brothers 345 527 275 39 19

B H E L 2282 2925 970 39 23

Power Grid Corp. 110 167 80 38 9

Zee Entertainmen 241 363 169 38 29

Himatsing. Seide 81 140 70 37 14

Gati 123 215 80 37 31

Opto Circuits(I) 414 581 166 36 20

Elecon Engg.Co 237 343 111 35 8

Raymond 342 474 251 35 17

Nestle India 1372 1663 876 35 25

Tata Comm 508 783 342 34 6

Neyveli Lignite 152 274 49 34 9

Torrent Power 148 270 56 34 9

Jagran Prakashan 113 169 60 34 29

R C F 85 150 34 33 11

Guj. NRE Coke 157 181 32 33 10

ICRA 755 1158 525 33 10

Allcargo Global 799 1129 610 33 10

Trent 570 829 473 33 17

Sun TV Network 315 458 260 31 29

Apollo Hospitals 496 630 362 31 17

Blue Star 471 548 180 31 26

Motherson Sumi 107 124 67 30 12

Asian Paints 1112 1320 642 30 23

COMPANY PRICE 52 WEEK PE IND. DIV Y

(29-FEB-08) HIGH LOW PE (%)

JK Lakshmi 137 221 97 3 33 1

Mangalam Cement 138 243 107 4 33 3

Varun Ship. Co. 78 111 50 4 7 6

SRF 118 207 94 4 5 5

Bongaigaon Ref. 63 117 39 4 10 6

Birla Corp. 227 386 175 4 33 2

J K Cements Ltd 168 257 125 4 33 2

Dalmia Cement 365 620 296 5 28 1

Chennai Petroleu 300 490 173 5 10 4

Prithvi Info 258 358 206 5 15 1

Orient Paper 49 85 35 5 6 2

Aftek Ltd 53 103 46 5 15 2

Guj. Alkalies 173 275 107 5 15 1

Kesoram Inds. 405 675 296 5 21 1

Zylog Systems 256 525 233 6 15 1

Aurobindo Pharma 330 820 233 6 24 1

GE Shipping Co 417 572 185 6 7 3

Prism Cement 48 80 29 6 33 2

NIIT Tech. 131 425 90 6 15 5

Lloyd Electric 121 224 111 6 26 2

G N F C 182 231 87 7 11 2

Alok Inds. 69 108 50 7 9 2

Graphite India 54 96 43 7 12 6

T N Newsprint 105 147 81 7 11 4

Unichem Labs. 151 284 138 7 24 3

Indian Oil 561 810 355 7 10 3

Nava Bharat Vent 225 352 83 8 26 2

G S F C 253 370 152 8 11 2

H P C L 299 406 218 8 10 6

Alembic 55 108 51 8 24 2

B P C L 460 560 287 8 10 3

ISMT Ltd 71 140 64 8 11 1

Prajay Engg. 324 480 164 8 14 1

Asian Electronic 265 590 222 8 23 1

Torrent Pharma. 158 272 125 9 24 2

Man Inds. 114 177 86 9 11 1

Patni Computer 241 573 185 9 33 1

HCL Infosystems 213 300 125 9 13 4

Jindal Stainless 157 244 116 9 11 1

KPIT Cummins Inf 84 154 68 9 15 1

Ahmednagar Forg. 195 285 169 9 26 1

Guj. Flourochem. 248 400 221 10 13 1

Coromandel Fert. 128 155 63 10 11 2

Orchid Chemicals 252 328 176 10 13 1

Hindalco Inds. 203 223 125 10 14 1

Lak. Mach. Works 2030 4000 1750 10 14 2

SHAREMASTERINDIA Dividend Yield

Dividend yield

COMPANY BSE BSE EQUITY PRICE (Rs) 52 WEEK TTM DIVIDEND (%) AVG DIV Y

CODE GROUP (Rs cr) (29 FEB’08) HIGH LOW PE 2007 2006 2005 DIVI.(%) (%)

H P C L 500104 A 339 299 406 218 8 180 30 150 120 6

Varun Ship. Co. 500465 B1 150 78 111 50 4 45 45 30 40 6

Graphite India 509488 B1 30 54 96 43 7 150 60 45 85 6

Bongaigaon Ref. 500072 A 200 63 117 39 4 35 27 120 61 6

SRF 503806 B1 68 118 207 94 4 60 30 25 38 5

NIIT Tech. 532541 B1 59 131 425 90 6 65 60 55 60 5

Andhra Bank 532418 A 485 91 130 70 7 38 35 30 34 4

Chennai Petroleu 500110 A 149 300 490 173 5 120 120 120 120 4

Ship. Corp. (I) 523598 A 282 215 332 151 7 85 85 70 80 4

T N Newsprint 531426 A 69 105 147 81 7 40 30 28 33 4

HCL Infosystems 500179 A 34 213 300 125 9 400 400 310 370 4

Bank of Mah. 532525 B1 431 55 97 37 7 20 4 14 13 4

B P C L 500547 A 362 460 560 287 8 160 25 125 103 3

Indian Oil 530965 A 1192 561 810 355 7 190 125 145 153 3

Unichem Labs. 506690 B1 18 151 284 138 7 100 100 70 90 3

Vijaya Bank 532401 A 434 66 97 38 7 20 10 25 18 3

Syndicate Bank 532276 A 522 98 131 57 6 28 25 20 24 3

GE Shipping Co 500620 A 152 417 572 185 6 115 112 90 106 3

Corporation Bank 532179 A 143 326 490 212 7 90 70 65 75 3

Allahabad Bank 532480 A 447 110 143 68 5 30 40 30 33 3

LIC Housing Fin 500253 A 85 308 403 128 7 80 60 50 63 3

Canara Bank 532483 A 410 278 421 174 7 70 66 55 64 3

G N F C 500670 A 155 182 231 87 7 43 43 38 41 2

Alok Inds. 521070 A 187 69 108 50 7 14 12 12 13 2

Torrent Pharma. 500420 A 42 158 272 125 9 60 50 80 63 2

Union Bank (I) 532477 A 505 186 235 84 9 35 35 35 35 2

Oriental Bank 500315 A 251 251 321 157 9 47 45 30 41 2

Indian Overseas 532388 A 545 165 229 89 8 30 26 24 27 2

Alembic 506235 B1 28 55 108 51 8 50 50 30 43 2

Nava Bharat Vent 513023 B1 16 225 352 83 8 200 100 100 133 2

G S F C 500690 B1 80 253 370 152 8 45 45 15 35 2

Pun. Natl. Bank 532461 A 315 604 721 400 9 100 90 60 83 2

Bank of Baroda 532134 A 367 366 501 189 10 60 50 50 53 2

JBF Inds. 514034 B1 60 143 215 95 7 23 20 20 21 2

Coromandel Fert. 506395 B1 26 128 155 63 10 100 85 75 87 2

Birla Corp. 500335 A 77 227 386 175 4 35 23 15 24 2

Guj. Alkalies 530001 B1 73 173 275 107 5 25 20 15 20 1

Man Inds. 513269 S 27 114 177 86 9 30 25 20 25 1

Jindal Stainless 532508 A 30 157 244 116 9 100 80 120 100 1

Patni Computer 532517 B1 28 241 573 185 9 150 150 125 142 1

Orchid Chemicals 524372 A 66 252 328 176 10 30 30 40 33 1

Guj. Flourochem. 500173 B1 12 248 400 221 10 250 100 50 133 1

Kesoram Inds. 502937 B1 46 405 675 296 5 40 30 25 32 1

Zylog Systems 532883 B1 16 256 525 233 6 25 15 12 17 1

Spanco Telesys 508976 S 21 198 300 162 9 18 18 13 16 1

Asian Electronic 503940 B1 15 265 590 222 8 45 25 18 29 1

KPIT Cummins Inf 532400 B1 16 84 154 68 9 35 35 35 35 1

Videocon Inds. 511389 B1 229 417 869 336 10 35 35 20 30 1

Note: Companies of BSE 500 having dividend yield >= 1 TTM: Trailing 12 months

Formula : Equity Div. (%) x Face Value / Latest Close price

SHAREMASTERINDIA Stock Analysis

Bajaj Electricals: Electrifying growth to continue Price Rs 490

A part of the Shekhar Bajaj Group (Promoter holding: 67.49%), Bajaj

Electricals (BEL) is a 69-year-old Engineering company, with interest

in Lighting, Luminaires, Appliances, Fans, and Engineering & Projects.

It has 19 branch offices, a chain of 600 distributors, 3000 authorised

dealers, over 1,20,000 retail outlets and over 200 service franchises

spread across the country.

The company has been focusing on enhancing revenue growth through

introduction of new products, expansion of the dealer and retailer

network along with good brand building efforts. The various actions

that the company had taken for effective cost control, value engineering,

competitive sourcing and improving credit discipline including

introduction of channel finance continue and are giving good results.

For the quarter ended Dec’07 Bajaj Electricals has registered 30% growth

in net sales to Rs 110.09 crore. Operating profit margins (OPM) advanced

to 10.2% (up by 190 bps), leading the operating profit to an increase of

59% to Rs 37.18 crore.

Other Income has increased by 155% to Rs 2.09 crore. Interest expenses

have increased by 22% to Rs 7.73 crore while provision for depreciation

has increased by 14% to Rs 1.97 crore. Thus PBT registered a growth

of 83% at Rs 29.57 crore. After providing for a taxation of Rs 10.65

crore as against Rs 6.20 crore, the Net profit recorded a robust growth

of 90% at Rs 18.92 crore.

For the nine-month ended Dec’07, Net sales increased by 31% to Rs

922.29 crore. The operating profit advanced by 64% to Rs 86.75 crore

on the back of 190 bps rise in OPM at 9.4%. The other income for the

period increased by 182% to Rs 3.70 crore. The interest outgo spurted

by 28% to Rs 22.34 crore and depreciation moved up by 7% to Rs 5.51

crore, thereby resulting in a PBT of Rs 62.60 crore, up by 98%. After

accounting for a taxation (including FBT and deferred tax) of Rs 22.72

crore as against Rs 12 crore in the corresponding previous period, the

Net profit.

For the quarter ended Dec’07 the lighting division has reported growth

in revenue of 30% to Rs 110.09 crore contributing almost 30% to

the total revenue and the segment PBIT of the same reported a

whopping growth of 462% at Rs 7.75 crore (contributing to 21% of

total PBIT).

For the nine month ended Dec 2007 the lighting division reported

growth in revenue of 25% to Rs 274.34 crore contributing almost

30% to the total revenue and the segment PBIT of the same reported

a 106% growth at Rs 14.76 crore (contributing to 17% of total

PBIT).

The consumer durables division has reported growth in revenue of

37% to Rs 159.99 crore contributing 44% to the total revenue and

the segment PBIT for the quarter stood at Rs 15.95 crore which was

80% higher as compared to the corresponding previous quarter and

contributed around 43% to the results.

For the nine month ended Dec 2007 this division reported growth in

revenue of 36% to Rs 417.89 crore contributing almost 45% to the

total revenue and the segment PBIT of the same reported a 84%

growth at Rs 39.93 crore (contributing to 47% of total PBIT).

Engineering & Projects division reported Net sales of Rs 94.68 crore

compared to Rs 80.86 crore in the corresponding previous quarter

and a segment PBIT of Rs 12.73 crore as against Rs 11.40 crore.

This division contributed 26% to total revenue and 35% to total PBIT

of the company.

For the nine month ended Dec 2007 this division reported growth in

revenue of 28% to Rs 228.94 crore contributing 25% to the total

revenue and the segment PBIT of the same reported a 41% growth at

Rs 30.16 crore (contributing to 35% of total PBIT). Achieving targeted

revenue of Rs 2000 crore by 2010 seems more likely than ever.

The company had targeted Rs 1000 crore of sales in FY 2007. Against

this, it has achieved sales of Rs 1079 crore.

For the nine months of FY 2008 ended September 2007, its sales

have improved by 31% to Rs 922.29 crore.

Through both organic and inorganic growth strategies, the company

aims to reach the targeted turnover of Rs 2,000 crore in 2010.

To consolidate promoters’ holdings, the Bajaj Brothers - Rahul,

Shekhar, Madhur and Niraj – had made an voluntary open offer to

acquire 12.10 lakh shares of Bajaj Electricals (BEL) at Rs 389 per

share. The offer which opened on January 24, 2008 and remained

open till February 12, 2008 was largely unsuccessful.

The company’s business strategy is going in the right direction and

will contribute to strengthening the organization in the years ahead.

The company will emphasize to have a healthy mix of high-end

products contributing to the bottom-line along with achieving Rs

2000 crore sales mark in FY 2010.

We expect the company to register sales and net profit of Rs 1380.37

crore and Rs 66.59 crore in FY 2008. On equity of Rs 17.29 crore and

face value of Rs 10 per share, EPS works out to Rs 38.5. The EPS is

projected to rise to Rs 51 in FY 2009. At current price of Rs 490, the

scrip is available at a P/E of just 12.7 on FY 2008 EPS and of 9.6 on

FY 2009 EPS.

Bajaj Electricals: Financials

0503(12) 0603(12) 0703(12) 0803(12P) 0903(12P)

Net Sales 649.63 844.21 1078.86 1380.37 1725.46

OPM (%) 6.8 8.1 8.1 9.7 9.7

OP 43.92 68.07 87.52 133.47 167.37

Other inc. 1.62 1.95 4.30 7.70 15.00

PBIDT 45.54 70.02 91.82 141.17 182.37

Interest 16.38 17.96 23.07 29.17 35.59

PBDT 29.16 52.06 68.75 112.00 146.78

Dep. 5.99 6.38 7.28 7.95 8.90

PBT 23.17 45.68 61.47 104.05 137.88

EO -1.38 1.30 -1.18 0.00 0.00

PBT after EO 21.79 46.98 60.29 104.05 137.88

Tax 7.95 17.15 21.68 37.46 49.64

PAT 13.84 28.20 38.53 66.59 88.24

EPS (Rs)* 8.0 16.3 22.3 38.5 51.0

* Annualised on current equity of Rs 17.29 cr. Face Value: Rs 10. (P): Projections

EO: Extra Ordinary items. Figures in Rs crore. Source: PACE Databases

SHAREMASTERINDIA Stock Result

Voltas: Robust performance

For the quarter-ended Dec’07, Voltas reported 17% increase

in Net Sales to Rs 664.76 crore. The Electro mechanical

projects and services division, contributed almost 56% of

sales at Rs 373.65 crore compared to Rs 354.12 crore in the

corresponding previous quarter. The growth in this segment

is marginal due to some delays in the execution of

international projects. However, the Order Book of this

segment stands at Rs 3504.85 crore as at 31st December

2007, representing a growth of 44% over the corresponding

period in the previous year, indicating positive future growth

prospects.

Even though the Engineering Agency and Services division

(comprising Textile Machinery, Materials Handling and Mining

& Construction Equipment business) contributed only 24%

to the overall sales, the revenue of this division witnessed a

growth of 37% to Rs 159.97 crore. The major contributor

has been Mining & Construction Equipment which grew by

98% and Textile Machinery by 19%.

Similarly the Unitary cooling product division contributed

19% of sales (Rs 123.82 crore, up 39%). The air conditioner

business grew by 36% in volume, and water coolers and

dispensers grew by 23% in volume.

The OPM for the period swelled by 350 bps to 8.3% leading

the operating profit to a whopping growth of 101% to Rs

55.25 crore. The OPM shot up as a result of overall savings

among cost heads. The raw material cost as % to sales

declined by 340 bps to 71%. Other expenses depreciated by

80 to 8.9% while staff costs went up by 50 bps to 11.6%.

At the operating level, the PBIT of Electro mechanical projects

and services division shot up by 53% to Rs 27.71 crore

(contributing to 44% of total PBIT). The Engineering products

and Services division contributed almost 45% to the overall

PBIT, witnessed a growth of 13% to Rs 28.25 crore. The

Company’s unitary division reported a sharp rise in PBIT at Rs

6.44 crore as against a loss of Rs 2.85 crore in the

corresponding previous period, contributing to 10% of total

PBIT.

Other income for the period increased by 18% to Rs 9.98 crore.

The net interest income stood at Rs 0.41 crore as against Rs

1.37 crore in the corresponding previous period while the

provision for depreciation increased by 11% to Rs 3.23 crore.

Therefore, the PBT before EO stood at Rs 61.59 crore, up by

94%. There was an extraordinary income of Rs 7.28 crore as

against Rs 1.30 crore in the corresponding previous quarter.

Subsequently, the PBT after EO stood at Rs 68.87 crore, up by

109%. After accounting for a taxation of Rs 21.65 crore, the

PAT stood at Rs 47.22 crore posting a growth of 143% on y-oy

basis.

For the nine-months ended Dec’07, Voltas has registered 31%

increase in Net sales to Rs 2202.43 crore. The OPM rose by

430 bps to 8.7%, which lead to a 160% growth in the operating

profit to Rs 192.43 crore. At the operating level, the Electro

mechanical projects registered a rise of 114% to Rs 94.26

crore. The Engineering Agency and Services division

contributed almost 37% to the overall PBT and

the segment profit of this division witnessed a

growth of 17% to Rs 82.37 crore. The Unitary

division witnessed a massive growth in PBIT at

Rs 39.54 crore as against Rs 0.99 crore in the

corresponding previous period. There was an

extraordinary income of Rs 18.56 crore compared

to Rs 2.25 core in the corresponding previous

period. After accounting for a tax element of Rs

74.92 crore (up by 137%) the PAT stood at Rs

152.96 crore posting a growth of 131% on y-o-y

basis.

The Board of Directors have in December 2007

approved the proposals for purchase of 51%

shareholding in Saudi Ensas Company for

Engineering Services Limited (SECL), a joint

venture company in Saudi Arabia and 50%

shareholding in Universal Comfort Products

Private Limited (UCPL), a joint venture company

in India subject to requisite approvals of the

Regulatory Authorities. Upon transfer of aforesaid

shareholdings, SECL and UCPL would become

wholly owned subsidiaries of the company.􀂄

Voltas: Results

0712(3) VAR. (%) 0712(9) VAR. (%) 0703 (12) 0603 (12) VAR. (%)

Net sales 664.76 17 2202.43 31 2400.55 1853.14 30

OPM (%) 8.3 8.7 4.5 5.4

OP 55.25 101 192.43 160 108.68 100.73 8

Other income 9.98 18 28.54 -16 58.29 29.64 97

PBIDT 65.23 81 220.97 105 166.97 130.37 28

Interest 0.41 -70 2.11 -34 -0.47 1.4 LP

PBDT 64.82 87 218.86 109 167.44 128.97 30

Depreciation 3.23 11 9.54 2 12.32 11.09 11

PBT before EO 61.59 94 209.32 119 155.12 117.88 32

EO 7.28 460 18.56 725 67.71 -26.19 LP

PBT after EO 68.87 109 227.88 133 222.83 91.69 143

Taxation 21.65 59 74.92 137 36.75 21.2 73

Net profit 47.22 143 152.96 131 186.08 70.49 164

EPS (Rs)* 5.1 5.7 3.9 2.7

* Annualised on current equity of Rs 33.07 crore. Face Value: Rs 1. EO: Extraordinary items. EPS is

calculated after excluding EO and relevant tax. Figures in Rs crore. PL: Profit to Loss. LP: Loss to Profit.

Source: PACE Corporate Database

SHAREMASTERINDIA Corporate News

Luminaire Technologies to issue shares

The members of Luminaire Technologies have accorded to

increase authorized capital from Rs 5,00,00,000 to Rs

15,00,00,000.

The members accorded to issue equity shares on rights basis

in the ratio of five equity shares for every one equity share held

at par, raising an amount of Rs 12 crore.

These were accorded at the EGM held on 29 February 2008.

IL&FS Investsmart appoints director

Gregory Framke has been appointed on the board of IL&FS

Investsmart in the meeting of the board held on 28 February

2008 subject to completion of regulatory procedures including

obtaining director identification number.

Further the company has informed that, Mitchell Caplan and

Todd Mackay have resigned from the board of the company

with effect from 31 January 2008 and 28 February 2008

respectively.

GTL Infrastructure to allot equity shares

The committee of GTL Infrastructure has considered and

approved allotment of 889,140 equity shares consequent to

conversion of FCCBs worth US$ 1,200,000 at a conversion price

of Rs 53.04 per share, in terms of the offering circular dated 24

November 2007 for issue of U.S.$.300,000,000 zero coupon

convertible bonds due 2012.

This was approved at the committee meeting held on 29 February

2008

Neena Consultants to change its name

The members of Neena Consultants have unanimously

considered and approved the change of existing name of the

company from Neena Consultants to New Markets Advisory.

This was approved at the EGM held on 29 February 2008.

Country Club India to hold board meeting

The board of Country Club India will meet on 07 March 2008 to

consider the proposal of merger of Country Club Bangalore

and other entities with the company.

Octav Investments allots shares to K E C International's

shareholders

KEC International has received an intimation from Octav

Investments informing that 30,14,869 equity shares of Rs

10 each of Octav have been issued and allotted on 28 February

2008 to the shareholders of KEC International, pursuant to

the scheme of arrangement between National Information

Technologies and RPG Transmission and Octav Investments

and the company and their respective shareholders, in the

ratio of 2 equity shares of Rs 10 each of Octav for every 25

equity shares of Rs 10 each held by the shareholders of KEC

International as on the record date i.e. 18 February 2008.

NTPC's board accords investment approval

The board of NTPC has accorded the investment approval for

Barh Super Thermal Power Project, Stage-II (2 X 660 MW) in

the state of Bihar at an appraised estimated current cost of Rs

73410.38 million. The stage-I consisting of 3 units of 660 MW

each is under implementation.

This was accorded at the board meeting held on 29 February

2008.

Denison Hydraulics India recommends dividend

The board of Denison Hydraulics India has recommended

dividend at the rate of Rs 5 per share (50%) for the year ended

30 September 2007.

This was recommended at the board meeting held on 29

February 2008.

KEC International allots equity shares

KEC International informed that pursuant to the scheme of

arrangement between National Information Technologies and

RPG Transmission and Octav Investments and the company and

their respective shareholders, the company has issued and

allotted 69,42,578 fully paid up equity shares of Rs 10 each of

the company to the equity shareholders of the erstwhile RPG

Transmission as on the record date i.e. 19 February 2008 in the

ratio of 4 equity shares of Rs 10 each of the company for every

9 equity shares of Rs 10 each held in erstwhile RPG Transmission

and 47,15,424 fully paid up equity shares of Rs 10 each of the

company to the equity shareholders of the erstwhile National

Information Technologies in the ratio of 2 equity shares of Rs 10

each of the company for every 15 equity shares of Re 1 each

held in erstwhile National Information Technologies.

These shares were issued and allotted on 29 February 2008.

Inter State Finance to hold board meeting

The board of Inter State Finance will meet on 08 March 2008 to

consider raising of funds for business requirements of the

company by way of preferential allotment of equity shares /

warrants to promoters / strategic investors and through GDR /

FCCB / public offering.

First Leasing Company of India appoints directors

The board of First Leasing Company of India has co-opted

Viswanath Tumu as a director of the company to fill up the

casual vacancy caused by the sudden demise of V S Dhanasekar

and co-opted Babu Kandamchirayil Verghese as an additional

director of the company.

These directors were appointed at the board meeting held on

29 February 2008.

Disclaimer : This document has been prepared by SHAREMASTERINDIA and Pace Network Marketings Pvt. Ltd. (the company) and is being

distributed in India by SHAREMASTERINDIA. The information in the document has been compiled by the research department. Due care has been taken

in preparing the above document. However, this document is not, and should not be construed, as an offer to sell or solicitation to buy any securities. Any act of buying,

selling or otherwise dealing in any securities referred to in this document shall be at investor’s sole risk and responsibility.

This document may not be reproduced, distributed or published, in whole or in part, without prior permission from the Company.

SHAREMASTERINDIA .COM