finxpress_11mar2012

FinXpress StartUp in focus:

BusinessIntelligenze

3

Markets this Week 4

News of the Week 5

CAN YOU SOLVE IT? 7

Company in Focus:

2

MARCH 11, 2012

Sources of Data:

> HDFCsecurities

> Economic Times

> The Hindu

> Rediff Money

> MoneyControl.com

> Financial Express

> Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

ONGC: MAKING TOMORROW BRIGHTER

CRR CUT FROM 5.50% to 4.75% BY THE RBI

Oil and Natural Gas Corporation Limited (ONGC) is an Indian state-owned oil and gas

company headquartered in New Delhi, India. It produces around 77% of India's total

crude oil production and around 81% of natural gas production. ONGC is one of the

largest publicly traded companies by market capitalization in India and the largest

India-based company measured by profits.

Vision

"To build and nurture a world class Human capital for leadership in energy business".

Mission

"To adopt and continuously innovate best-in-class HR practices to support business leaders through engaged,

empowered and enthused employees".

Global Ranking

• ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world and 23rd among leading global

energy majors as per Platts 250 Global Energy Companies List for the year 2009

• ONGC ranks 24th among the Global publicly-listed Energy companies as per ‘PFC Energy 50” (Jan 2008)

• Finance Asia 100 list ranks ONGC no 1 among Indian Blue Chips.

• Occupies 155th rank in “Forbes Global 2000” list 2010 of the world’s biggest companies for 2010 based on sales,

profits, assets and market capitalisation.

• ONGC ranked 402nd position as per Fortune Global 500 - 2009 list;, based on revenues, profits, assets and

shareholder’s equity.

Pioneering Efforts

ONGC is the only fully–integrated petroleum company in India, operating along the entire hydrocarbon value chain :

• Holds largest share of hydrocarbon acreages in India.

• Contributes over 79 per cent of Indian’s oil and gas production.

• Refining capacity of about 12 MMTPA.

• Created a record of sorts by turning Mangalore Refinery and Petrochemicals Limited around from being

astretcher case for referral to BIFR to the BSE Top 30, within a year.

• Interests in LNG and product transportation business.

Technology

• State-of-the-art seismic data acquisition, processing and interpretation facilities

• Uses one of the Top Ten Virtual Reality Interpretation facilities in the world

• Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR, Petrobras, Norsk, ENI, Shell

• One of the biggest ERP implementations in the Asia

Road Ahead

New Discoveries and fast track development Leveraging state-of-the art technology and global best practice

Equity Oil from Abroad New Sources of Energy

Downstream Value Additions &Forward Integration Production from small and marginal fields

FinXpress

Company in Focus : ONGC

BusinessIntelligenze helps decision-makers carry out BI delivered as Service in a

sustainable, competitive & advantageous way with a very high operational focus. It

was established in the year 2010. It employs 11-25 people. It has a turnover up to US

$0.25 million. Its major markets are in Australia, New Zealand, Indian Subcontinent,

East and Middle Africa, South and West Africa and North America .

Operations

It is a dynamic company aspiring to be pure-play SaaS provider of Business Intelligence & Analytics to Companies that

outsource their non-Core processes to Low-cost Countries such as India, Philippines & Americas with complete solution set

for their business needs. It focuses on Business Performance and provides outsourced design, customization, deployment

& support services for several BI platforms. Its solutions are deployed over Cloud as well as mobile especially in the

domains of people focused processes, their performance monitoring and overall Supply Chain.

Competencies

BusinessIntelligenze provides a business performance management solution that is focused on helping companies improve

operational performance through interactive dashboards. Everyone making operational decisions can view, interact with,

and analyze performance metrics, measures, and drivers that are relevant and updated for continuous performance

improvement.

Products and Services

It offers products such as ‘Jumbo’ Business Intelligence. Business intelligence is the proven technique for achieving a

significant business impact - from enhancing the top line to discovering new ways to reduce the bottom line; from trend

analysis to customer retention; from revenue to expenses; from analytics on recruitment to retention; and constant

benefit analysis.

FinXpress

StartUp in Focus :

BusinessIntelligenze

FinXpress

Markets this week

Week gone by

The week began with the Nifty breaking the previous lows of 5268 and drifting down further. The index however found

support at the 5170 levels which also roughly coincides with the 200-day EMA. A smart rally was seen on Friday which

helped to curb the losses seen in the early part of the week. W-o-W, the Nifty lost a marginal 0.43%. The top gainers this

week were Tata Steel and Bajaj Auto with gains of 5.3% and 2.1%. However, Hindalco Industries and Maruti Suzuki lost

3.62% and 1.99%.

Indian Markets

Indian cement companies continued their upbeat performance mainly on account of increase in offtake from construction

activities post monsoon. Demand is improving in rural housing, semi-urban housing and infrastructure segments in the

western, northern and most importantly southern regions. Major cement players reported a growth of 12.1% y-o-y in the

last month. The cumulative sales of top 4 players in April-February 2012 period has improved by 8.2% to 94 mt.

India’s merchandise exports growth remained sluggish as shipments for February 2012 grew only by 4.3 per cent year to

$24.6 billion. This was due to poor demand in markets overseas, especially in Europe, for items such as electronics, engi-

neering and textiles. During the month, exports were outpaced by imports, which rose 20.6 per cent to $39.8 billion, leav-

ing a trade deficit (export-import gap) of $15.2 billion.

Key Sectoral Movement

The sectors ended on amixed note this week. The top gainers were Auto, Consumer Durable, FMCG and Healthcare,

which gained 1.8%, 1.5%, 0.9% and 0.6% respectively. The top losers for the week were Metals, Oil & Gas, POwer and

PSU, which lost 3.9%, 3.2%, 2.5% and 1.4% respectively.

Global Markets

First-time claims for unemployment insurance for the week ended March 3 totalled 362,000, an increase of 8,000 from

the prior week, according to the U.S. government. U.S. consumer credit expanded sharply in January in a generally posi-

tive sign for the economy as people borrowed money to buy cars and go to school, Federal Reserve data showed. But at

the same time, the report also pointed to a decline in credit card usage, which could point to some jitters among consum-

ers regarding their outlook for earnings. Total consumer credit grew by $17.776 billion in January.

German manufacturing orders fell 2.7% in January, while the December gain was revised down 0.1 percentage point to

1.6% . While China's annual rate of consumer inflation slowed sharply to a 20-month low of 3.2 percent in February, com-

fortably within Beijing's 2012 target of 4 percent, giving policymakers room to further loosen monetary policy to support

slowing growth.

SENSEX NIFTY

FinXpress

News of the Week

RBI cuts CRR by 75 bps

to 4.75%

A decision to cut the Cash

Reserve Ratio (CRR) by 75 basis

points will reduce pressure on

liquidity ahead of payment of

advances tax by March 15. The

short term rates may soften by

about 25 basis points next week.

Bank officials and treasury

executives said the RBI decision

would inject ` 48,000 crore

into the banking system. This

would help ease the pressure on

liquidity which was pushing up

rates on short term money

markets. The RBI in a statement

said the liquidity deficit has

remained large on account of

both structural and frictional

factors. Further, the liquidity

deficit is expected to increase

significantly during the second

week of March due to advance

tax outflows and the usual

frontloading of cash balances by

banks. The revised CRR will be

4.75% from March 10, 2011. The

central bank had cut CRR by 50

basis points in the third quarter

review in January.

China's low GDP target

a mixed bag for Indian

steel cos

China has lowered its gross

domestic product (GDP)

projection to 7.5 per cent for

2012. As half of the world’s steel

production coming from China

and coking coal & iron ore prices

solely dependent on Chinese

demand, the Indian steel sector

sees mixed signals from the

move. On one hand, the sector

believes raw material prices

might come down, as the

demand for these from China

would fall. Steel dumping might

increase if high cost capacities in

China are not phased out. The

Indian steel sector has, time and

again, cried foul over lower-than-

production cost Chinese steel

finding shelter in India. The

industry believes this eminent

slowdown in China would lead to

more exports from the country,

and some of it would reach India,

causing steel dumping. China has

been known for steel dumping in

the past and a slowdown in

domestic demand could mean

this is going to increase in the

near future. Essar, however, is

optimistic about the situation

and thinks this is going to

change. Seshagiri Rao, joint

managing director and group

CFO, JSW Steel said, “If the steel

demand in China falls then the

excess steel production is likely

to come in the international

market. Then there should be

some proactive steps to stop

dumping.”

Euro zone finance min-

isters release 35 bn

euro for Greece

Euro zone finance ministers have

released 35 billion euro from the

second bailout package for

debt-ridden Greece shortly after

the government in Athens

reached a landmark deal with

private creditors on a bond swap,

which will halve its debts to

around 107 billion euros. The

finance ministers of the 17

nations using the euro, in a

conference call on Friday after-

noon, welcomed the pact by

private sector holders of Greek

sovereign bonds to write-down

up to 53.5% of their claims in

nominal terms by exchanging

their bonds for new ones with

less value, longer maturity and

lower interest rate. In real terms,

they may face losses up to 74%.

The ministers were "quite

encouraged" by the high level of

participation by banks,

insurances, funds and other

private investors in restructuring

Greece’s debts, Jean-Claude

Juncker, Luxembourg’s prime

minister and chairman of the

euro group said after the

conference call.

Jet Airways asked to

pay dues of `̀̀̀ 69 cr

After freezing the bank accounts

of beleaguered Kingfisher

Airlines, the service tax

department has now served a

notice on Jet Airways to pay up

about ` 69 crore as dues soon or

face similar consequences, but

the airline said it would do so by

Monday. Jet Airways has not

paid a total of about ` 69 crore

worth of dues for January and

February which they collected

during this period, official

sources said. The amount was to

have been paid by March 6, they

said, adding that if they did not

reply to the notice soon, "we will

have to go for freezing of their

accounts. We have to talk to the

banks in the process of assessing

the number of accounts they

have." Jet Airways posted a loss

of ` 101.22 crore in the third

quarter ending December 31 last

year, as higher fuel prices, lower

fares and rupee depreciation

continued to hurt the company.

In the corresponding quarter the

previous year, the company had

posted a net profit of ` 118.23

crore. However, its total income

increased to ` 3,939.16 crore for

the quarter as against ` 3,473.38

crore recorded during the same

quarter of the previous year.

India Inc salary to

increase by 11.9% in

2012

Salary increases in India are

projected to be 11.9 per cent in

2012, according to global human

resource consulting and

outsourcing company Aon

Hewitt. The projections for 2012,

in the 16th Annual India Salary

Increase Survey, were marginally

lower compared to the actual

increase of 12.6 per cent in 2011.

Compared to other markets,

India outpaced Asia Pacific with

the highest salary increase in the

region, followed by China and

the Philippines, projecting a 9.5

per cent and a 6.9 per cent salary

increase in 2012 respectively.

The frontrunner for this year’s

salary increase is likely to be in

the pharmaceutical industry,

with a projection of 13.3 per cent

for 2012, riding high on a surging

year-on-year growth with a CAGR

of 11 per cent. The second

highest salary increase is

projected to be in the

engineering design/services with

a salary increase of 13 per cent,

which was 1.1 per cent higher

than the India average.

FinXpress

News of the Week continued.. .

Nissan’s small car with

Ashok Leyland to hit

market by 2014

Japanese car maker Nissan will

launch an entry-level small car,

developed in partnership with

Ashok Leyland, by 2014 that

could be priced around ` 2 lakh

to ` 4 lakh. Currently, the

company sells only one small car

'Micra' in India in both petrol and

diesel engines. According to its

official websites, the car is priced

between ` 4.14 lakh and ` 6.26

lakh (ex-showroom, Delhi).

Currently, Nissan has a joint

venture with Ashok Leyland to

produce light commercial

vehicles for the Indian market.

Earlier, Ashok Leyland had said it

would not enter the passenger

car segment and would limit its

association with the Japanese

firm to only commercial vehicle

space.

Budget 2012: Oil firms

ask for tax incentives in

Union Budget

An association of private and PSU

oil companies has demanded a

slew of tax incentives, including

income tax holiday for natural

gas production and extending

the same for oil refineries by

a n o t h e r f i v e y e a r s .

In a pre-Budget memorandum to

the government, the Petroleum

Federation of India (PetroFed), a

body comprising almost all public

and private sector oil companies,

sought seven-year holiday for

payment of income tax to all

refineries that are commissioned

by March 2017. Currently, the

tax breaks are available only for

units beginning production by

March this year. PetroFed said

the period of tax holiday for both

exploration and refining activities

should be extended to 10 years

as in case of power sector.

Derivative traders

carry forward bullish

bets to March series

Derivative traders carried

forward their bullish bets to the

March series on Thursday - the

day February futures and options

(F&O) series expired. But, the

extent of rollovers was lower

than last month, indicating that a

section of the traders are not

sure where the market is headed

i n M a r c h .

Nifty futures saw a 67% rollover,

according to provisional

numbers, which was lesser than

74% witnessed last month but in

line with three-month average.

Market-wide rollovers were

around 78%, similar to their

a v e r a g e .

Based on the rollovers, analysts

expect Nifty to range between

5,200 and 5,650 points in March.

Cartoons

Solve it Now!

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* * R u s h i n y o u r e n t r i e s t o :

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The right entries will get their name featured in

the next issue of FinXpress. So hit the quiz fast &

get yourself visible among 1000 odd in the cam-

pus.

Set A

Answer the following questions

1. What is the claim to fame of a product named ‘Epsom Salt’?

2. “If you can’t beat them, don’t join them, rather make them

irrelevant.” This is the essence of which business strategy?

3. An increase in the price of food that occurs as a result of in-

creased demand from human consumption and use as an alterna-

tive energy resource.

4. An interest rate swaps whose notional value adjusts according

to rising interest rates by indexing the floating portion to a Con-

stant Maturity Swap (CMS).

5. “This is a stringent test that indicates whether a firm has

enough short-term assets to cover its immediate liabilities with-

out selling inventory.”

6. This phrase is Latin for “according to value”. It is a tax based on

the assessed value of real estate or personal property.

CAN YOU SOLVE IT ?

Feel free to write to us at : Drop in your suggestions to the editorial team :

[email protected] Magazine design/news : [email protected]

Articles/quiz : [email protected]

LAST ISSUE’S RIGHT ENTRIES WERE FROM :

Aritra Bhowmick & Rahul Mittal

LAST WEEK’S ANSWERS

SET A

1. Watergate Scandal

2. LIBOR

3. Fiat Money

SET B

1. ‘Docutalk Journal’ : Xerox

2. ‘Remembrandt Money: The Netherlands

3. Country whose currency means to grasp:

Greece

4. Frankfurt: ECB

finxpress_11mar2012

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