India’s largest telcoms company has finalized an outsourcing deal where French-American networks major Alcatel Lucent will manage, build and operate its (Bharti’s) landline business. The deal size can be upwards of $500 million spread over a 10-year period. Alcatel-Lucent will also take on over 4,000 Bharti employees who currently handle its landline business on to its roles.
Bharti has over 2.7 million landline users spread over 95 cities. This segment had a profit margin of 42.1% for the quarter-ended March 31 and 42.4% for the year-ended March 09. Besides, it also contributed revenues to the tune of Rs 8,585 crore for the quarter-ended March 09 and Rs 33,517 crore for the year-ended March 09. This segment also accounts for about 9% of Bharti’s total earnings. The average revenue per user for Bharti’s landline business is Rs 1,071 per month, which is three times higher than that of the telco’s average mobile customer.
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Thursday, April 30, 2009
Saturday, April 25, 2009
China Unveils big pot of Gold
China revealed that it had secretly raised its gold reserves by three-quarters since 2003, increasing its holdings to 1,054 tonnes and confirming years of speculation it had been buying. Hu Xiaolian, head of the State Administration of Foreign Exchange (SAFE), told Xinhua news agency in an interview that the country's reserves had risen by 454 tonnes from 600 tonnes since 2003, when China last adjusted its state gold reserves figure.
By a Reuters calculation, China's holding of gold would be worth around $30.9 billion at current prices. That accounts for only about 1.6 per cent of China's total foreign exchange holdings and is little more than one-tenth of the value of the US gold reserve, the world's biggest. It also means gold has slipped as a share of China's total reserves from about 2 per cent, based on end-2003 prices.
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By a Reuters calculation, China's holding of gold would be worth around $30.9 billion at current prices. That accounts for only about 1.6 per cent of China's total foreign exchange holdings and is little more than one-tenth of the value of the US gold reserve, the world's biggest. It also means gold has slipped as a share of China's total reserves from about 2 per cent, based on end-2003 prices.
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Thursday, April 23, 2009
India, China drivers of global economic growth: World Bank
"China and India have emerged in recent years as drivers of global economic growth, accounting for 2.9 percentage points of the five per cent growth in global output in 2007," the World Bank said in its latest World Development Indicators (WDI) 2009.
While low- and middle-income economies now contribute 43 per cent of global output, up from 36 per cent in 2000, the report said China and India account for five percentage points of that increased share. According to the report Brazil, China, India, and the Russian Federation attracted the largest shares of capital flows among developing economies.
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While low- and middle-income economies now contribute 43 per cent of global output, up from 36 per cent in 2000, the report said China and India account for five percentage points of that increased share. According to the report Brazil, China, India, and the Russian Federation attracted the largest shares of capital flows among developing economies.
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Indian bank NPAs to triple by 2011' sector safe- Crisil
"The increase in NPAs will be driven by delinquencies in corporate loans; this asset class accounts for about 56 percent of banks' advances," said Raman Uberoi, Crisil's senior director. Banking sector advances have grown about four-fold over the past seven years to an estimated 27.7 trillion rupees. Crisil projects that, by end-March 2011, the sector's gross NPAs will increase to around 5 percent of its advances. This will mean a tripling of NPAs to 1.9 trillion rupees, Crisil added.
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Wednesday, April 22, 2009
BPO sector likely to log revenues of $225 bn by 2020
The Indian IT-BPO industry is likely to touch revenues of $225 billion by 2020, of which exports will account for about $175 billion, as per a new report. The industry also has the potential to generate an additional $150 billion in revenues, provided it takes some measures to transform the business environment, infrastructure, talent development and innovativeness.
The projection of $225 billion in revenues is based on a few assumptions, McKinsey partner Ranjit Tilankar said. These include some basic academic reforms such as collaboration with industry on curriculum, increase in employability of graduates from the current 10-15%, at least a 5.5% GDP growth and no impact of protectionism.
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The projection of $225 billion in revenues is based on a few assumptions, McKinsey partner Ranjit Tilankar said. These include some basic academic reforms such as collaboration with industry on curriculum, increase in employability of graduates from the current 10-15%, at least a 5.5% GDP growth and no impact of protectionism.
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Tuesday, April 21, 2009
Apologies for Error in NAV
Dear All,
We apologise for wrong reporting of NAV on 16 April, 2009 as 12.22. The Error was a result of formula mistake in Database. The NAV had not crossed 12. We assure to not repeat the same mistake.
Team Crecer Capital
We apologise for wrong reporting of NAV on 16 April, 2009 as 12.22. The Error was a result of formula mistake in Database. The NAV had not crossed 12. We assure to not repeat the same mistake.
Team Crecer Capital
RBI announces Reverse Repo and Repo Cuts.
With the rate cuts announced in the RBI, one this is for certain, that slowdown could well continue into the next year.
The silver lining is, that RBI does expect an increase in the credit off-take in the markets to keep growing by 20%, which in the short run would sow the seeds, which would ultimately leave us out of this rut.
The overall impact on the rate cut is going to be positive for the rate sensitive sectors like Realty and Auto, which would see a lot more flows from the side of the banks.
The banks which were expecting a cut in the CRR, however would be disappointed as RBI has kept the tabs there at 5%.
Since the Reverse Repo rate has gone down to 3.25, there would be an increased buying by the banks into government treasuries, which would see a fall in their yields. The RBI perhaps may also be doing this to support the governments huge borrowing program which may eventually raise the yields to 7% on the 10 year paper.
The overall growth projections for the economy by the RBI stand at 6% for the next fiscal.
The silver lining is, that RBI does expect an increase in the credit off-take in the markets to keep growing by 20%, which in the short run would sow the seeds, which would ultimately leave us out of this rut.
The overall impact on the rate cut is going to be positive for the rate sensitive sectors like Realty and Auto, which would see a lot more flows from the side of the banks.
The banks which were expecting a cut in the CRR, however would be disappointed as RBI has kept the tabs there at 5%.
Since the Reverse Repo rate has gone down to 3.25, there would be an increased buying by the banks into government treasuries, which would see a fall in their yields. The RBI perhaps may also be doing this to support the governments huge borrowing program which may eventually raise the yields to 7% on the 10 year paper.
The overall growth projections for the economy by the RBI stand at 6% for the next fiscal.
Monday, April 20, 2009
Indian BPOs' revenue will be doubled by 2010
India's business process outsourcing (BPO) industry will double its revenues in less than two years despite the economic slowdown and protectionist measures of western countries, a report by analyst firm Gartner said on Monday. The top 20 India-centric BPO service providers accounted for $4 billion in revenue in 2008, representing 5 per cent of the $80-billion revenue of the top 150 BPO companies in the world.
By 2010-end, the market share of India's BPOs is expected to become 10 percent as many corporates would turn towards low-cost BPOs as part of their cost-cutting measures, Gartner said.
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By 2010-end, the market share of India's BPOs is expected to become 10 percent as many corporates would turn towards low-cost BPOs as part of their cost-cutting measures, Gartner said.
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Indian pharma industry may gain $18.4 bn from global mkt
Approximately $ 123 billion worth of products are at risk of loosing patents by 2012. Even at a conservative estimate of 15 per cent opportunity, this translates into 18.4 billion dollars opportunity for generics driven Indian drug industry, according to a report of an inter-ministerial task force headed by a Joint Secretary of the Commerce Ministry.
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Thursday, April 16, 2009
DLF to surrender 5 IT/ITeS SEZs
"DLF has nine (notified) IT/ITeS special economic zones, five of them they are dropping ... they have made an application and it will come up after the elections," a senior Commerce Ministry official said.
DLF had earlier surrendered its 40-acre IT SEZ in the central Delhi. Its nine notified SEZs are located in various states. It could not be ascertained which SEZs are now sought to be cancelled.
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DLF had earlier surrendered its 40-acre IT SEZ in the central Delhi. Its nine notified SEZs are located in various states. It could not be ascertained which SEZs are now sought to be cancelled.
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Wednesday, April 15, 2009
GVK forays into clinical trials with Chinese co
Hyderabad-based GVK Biosciences has tied up with Excel PharmaStudies (Excel), a Chinese clinical research organisation (CRO), to conduct clinical trials in India. GVK Bio president Manni Kantipudi said: “This is a first of a kind alliance between an Indian CRO and a Chinese CRO. The GVK Bio-Excel alliance integrates trial management across India and China and provides sponsors with a single point of contact.”
Thursday, April 9, 2009
NAV crosses 11...
For the first time since the launch of Crecer Capital in 2007, the NAV has crossed the figure of 11. Yes, you are reading it right, the NAV today stands at 11.07. Todays gain can be attributed to the movement in the Pharma Stocks in our Portfolio. With a 25% gain on the stock till date, it has out performed some of the other high Beta Stocks also.
Hold on for more news on the portfolio. .
Hold on for more news on the portfolio. .
Tuesday, April 7, 2009
Crecer Capital - Today
Currently the fund is being managed by a team from Class of 2010. The Corpus of the fund is well into 6 digits with a good number of investors from the Batch. The new team took over the fund responsibility late last year and entered the market around the mid of February. A well diversified Portfolio with Pharma, FMCG, Banks, etc stocks the fund has been able to consistently out perform its benchmark index.
Keep watching this space for regular updates on the Portfolio and the NAV.
Keep watching this space for regular updates on the Portfolio and the NAV.
Crecer Capital - The Start
It all started with the enthu of a typical B School Student- to do something new and different.
While many of us had exposure to stock markets, still many had no or little exposure. Thus began the urge to add value to all the particiapant's. The motive of Crecer Capital was to learn while doing ( In this case investing) . Considering the importance of stock market in the corporate world, we took the plunge to start a pseudo mutual fund , something we call as a Collective Investment Vehicle – ‘ Crecer Capital’ for the participant’s of SPJIMR. Crecer is a Spanish word which means ‘to grow’ and thus became the funds name symbolizing growth not only monetarily but also in knowledge. Launched around Diwali of 2007 and managed in house, the fund received active involvement from the batch. We at Crecer believe it has been a great step taken forward at SPJIMR and hope it not only becomes an ever lasting culture at the institute but influences it in a positive manner.
After a successful first year, we passed on the responsibilities to the new batch and we are certain that they will do an even better job and take Crecer to bigger heights.....
--Team Crecer, Class of 2009.
While many of us had exposure to stock markets, still many had no or little exposure. Thus began the urge to add value to all the particiapant's. The motive of Crecer Capital was to learn while doing ( In this case investing) . Considering the importance of stock market in the corporate world, we took the plunge to start a pseudo mutual fund , something we call as a Collective Investment Vehicle – ‘ Crecer Capital’ for the participant’s of SPJIMR. Crecer is a Spanish word which means ‘to grow’ and thus became the funds name symbolizing growth not only monetarily but also in knowledge. Launched around Diwali of 2007 and managed in house, the fund received active involvement from the batch. We at Crecer believe it has been a great step taken forward at SPJIMR and hope it not only becomes an ever lasting culture at the institute but influences it in a positive manner.
After a successful first year, we passed on the responsibilities to the new batch and we are certain that they will do an even better job and take Crecer to bigger heights.....
--Team Crecer, Class of 2009.
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