IT majors sit on growing cash mountain

The top five Indian IT firms have piled up net cash in excess of Rs 20,000cr.

Riding high on a booming economy and growing outsourcing opportunities, the top five Indian information technology players – Tata Consultancy Services, Infosys Technologies, Wipro, Satyam Computer Services and HCL Technologies – have piled up net cash in excess of Rs 20,000 crore.

The net cash figure jumped 31 per cent to Rs 21,148.42 crore in 2006-07 from Rs 16,151.36 crore in the previous year. Analysts estimate the figure to increase by 60 per cent in the current financial year.

The logic lies in the revenue and net profit numbers of these companies. For instance, the total turnover of the five companies for the 2006-07 financial year stands at Rs 57,397 crore — a jump of nearly 40 per cent over last fiscal’s number of Rs 41,033 crore. Read more at Business Standard

Emirates group to bid for Indian airports

DUBAI: Dnata, the ground handling, ticketing and reservation arm of Emirates Group, will submit proposals for strategic partnership with the Airports Authority of India (AAI) to offer ground handling solutions for its airports.

As part of its privatisation drive, the Indian government is currently in the process of modernizing over 40 airports in the country. The deadline for submission of proposals is April 30.

"We are going to submit proposals to Indian authorities for ground handling projects in four days as the April 30 deadline is very close," Gary Chapman, President of Group Services and Dnata, said.

At present, Dnata looks after ground handling operations in nine international airports including Dubai, Singapore, Changi, Guangzhou, Iran and Karachi.

"By 2010, we will have presence in more than 30 international airports as we are aggressively pursuing opportunities in India, China and other Asian markets," Chapman was quoted as saying by the Gulf News. "After India, China is very strong in our plans and we are looking at opportunities in major Chinese airports," he added.

Inflation unchanged at 6.09%

Inflation based on the wholesale price index (WPI) was unchanged at 6.09% for the week ended 14 April.

Prices of vegetables, which shot up over 23% during the previous week contributing the most to inflation, declined 5% in the week under review.

Besides vegetables, prices of fruits, urad, coconut oil, naphtha, brass sheets and strips also declined. This was offset by the rise in prices of non-vegetarian food items, gram, groundnut oil, cotton seed oil and ferro silicon. Prices of other products moved in a narrow range.

Vedanta open offer for Sesa Goa stakeAdd to Clippings

MUMBAI: Anil Agarwal-led Vedanta Resources Plc on Friday made an open offer to the shareholders of India's biggest private iron ore exporter Sesa Goa for acquiring 20 per cent stake in the company for up to Rs 1,603.05 crore.

The open offer was made after the recent announcement by Vedanta for acquiring Japanese firm Mitsui & Co's 51 per cent stake in Sesa Goa for $981 million (around Rs 4,070 crore) in cash.

The company has made an open offer to acquire up to 78,72,404 equity shares representing 20 per cent stake in the equity share of the Sesa Goa at a price of Rs 2,036.30 per share payable in cash, Sesa Goa said in a filing to the Bombay Stock Exchange.

Vedanta Resources clinched the deal from bidders like Arcelor-Mittal and the Aditya Birla Group, who were also in the fray to acquire 51 per cent stake in India's biggest private iron ore exporter Sesa Goa Ltd.

Read more at Economic Times

India's FDI into London second biggest

LONDON: India has become the second-biggest source of new foreign investment into London, behind only the United States, a report released on Friday said.

According to the Financial Times, a new report from Think London, the capital's foreign direct investment (FDI) agency, says that India has accounted for 16 per cent of all new foreign investment into London between 2003 and 2007.

That has helped investment into London jump to 52 billion pounds (76.1 billion euros, 103.4 billion dollars), from 38 billion pounds two years ago. The United States topped the list, with 31 per cent of new investment, while France was third with seven percent. China, Japan and Canada with six percent each followed.

"London does not have the same resonance in China, Russia or Brazil as it does in India," Think London's chief executive Michael Charlton noted. The United States still dominates total foreign investment into the capital, though, accounting for about half of it, followed by France with 12 per cent.

Read more at Economic Times