TCS Jumps Into Top 10 Global IT Services Companies Club
The country’s largest IT services provider, Tata Consultancy Services (TCS), has broken into the league of top 10 global IT services companies, moving from the 13th position in 2012 to the 10th spot in 2013. Twelve years ago, when TCS’ revenues were about $1 billion, the then CEO S Ramadorai had laid out a vision to be among the top 10 by 2010. It’s taken a little longer, partly because of the global financial slump of 2008-09, but the company has now got there, and considering the pace at which it is growing compared to its global counterparts, the ranking could get better fairly quickly in the years to come. The research compares IT services, and excludes other areas such as BPO, R&D services and software/hardware products. And it uses figures for the four quarters of calendar year 2013. TCS rose to the 10th spot displacing Montreal-based IT services firm CGI.
HTC Eyes Buying Nokia’s Chennai Plant
The Taiwanese smartphone maker, HTC may consider buying Nokia’s Chennai plant if it is put up for sale to a third party other than Microsoft, as the HTC explores ways to reach the Indian consumer in a better and faster way amid stiff competition, a top official said. “I am happy to look into it, because the overall preparation, exploration hinges upon if it will serve consumers better. If that (plant) will do that (service consumers better), then we would be happy to look further into it,” Chialin Chang, HTC Chief Financial Officer, told Economic Times. He however clarified that he wasn’t aware of the current situation surrounding Nokia’s handset manufacturing plant. The question of a sale to a third party other than Microsoft has arisen as it is becoming increasingly clearer that Nokia won’t be able to resolve the tax disputes with Indian authorities before the scheduled April end close of the $7.2 billion global deal. Microsoft and Nokia haven’t yet revealed their future course of action but time is running out for Nokia to resolve the dispute.
Hero Motocorp Makes JV In Bangladesh
India’s largest two-wheeler maker, Hero MotoCorp, has finalised a joint venture with Bangladesh-based Nitol Niloy Group to retail about a dozen two-wheeler brands in that country. Through the joint venture, Hero will set up its first manufacturing plant abroad. It is likely the facility will be operational in the second half of 2015-16. Hero holds 55 per cent stake in the joint venture. It inaugurated its first showroom in Dhaka last week. Through the next five years, Hero and Nitol Niloy will infuse $40 million (Rs 240 crore) into the venture. The plant will have an annual capacity of 150,000 units. Initially, at least 11 Hero motorcycle and scooter models will be marketed in Bangladesh, through 50 retail outlets. There will be total equity infusion of $12.6 million (Rs 77 crore) in a ratio of 55:45, through two years. In the first year, the new venture will record capital expenditure of $23.2 million (Rs 140 crore).
Jet Airways To Abolish Services Of Contract Employees
Jet Airways may reinitiate a move to finish the services of its contract employees across the country as the airline endeavours to cut down the number of flight operations and destinations served by it in the domestic sector. The Naresh Goyal-promoted airline is learnt to have discontinued flights to Vijaywada and Tirupati and has closed down offices in these two destinations. The airline’s Visakhapatnam office is slated to be closed from June. Jet had recently cut down about 15 flights from Kolkata, a station that could see some lay-offs. “The airline is progressively cancelling domestic flights and closing stations across the country,” said a Jet executive, who did not want to be identified. Another Jet staffer said that the employees on contract will bear the brunt of the lay-offs.
UCO Bank Endeavours To Nurture Its Loans, Deposits By 20-22% In FY15
UCO Bank seeks to enhance its loans and deposits by 20-22 per cent in the current financial year, a senior executive of the bank told reporters recently. “In 2013-14 (April-March) the growth in our advances was higher than the industry average. Our credit growth was around 17 per cent while our deposits were up 16 per cent. This year we expect 20-22 per cent growth in our deposits and advances,” Jai Kumar Garg, Executive Director at UCO Bank, said on the sidelines of an event to launch the bank’s vigilance manual. Credit growth for the banking system has continued to remain moderate at 14.3 per cent, on a year-on-year basis, as of March 19, 2014. Challenging macro-economic environment and policy woes in select sectors appear to have affected investment sentiment for quite some time now. UCO Bank’s advances were at Rs 141,457 crore at the end of December 2013, up 16.5 per cent from a year earlier. The state-run lender is yet to declare its earnings for January-March quarter and for financial year 2013-14.
LIC Housing Finance Registers Net Profit Of Rs 370 Crore
LIC Housing Finance listed a net profit of Rs 370 crore, up 17.03 per cent year-on-year (y-o-y) for the quarter ended March 31. Profit was boosted by a net interest income of Rs 533 crore, up 16 per cent y-o-y. Net profit for FY14 stood at Rs 1,317.19 crore compared to Rs 1,023.21 crore last year, a growth of 29 per cent. Net interest margins (NIM) for the entire year was 2.25 per cent, up 7 basis points (bps) from last year. The company’s recorded total income of Rs 2,478 crore and showed a growth of 19 per cent y-o-y in Q4. Revenue from operations grew 19 per cent y-o-y to Rs 2,407 crore. The housing finance company’s outstanding mortgage portfolio at the end of Q4 was Rs 91,341 crore showing a growth of 17 per cent y-o-y, while the individual loan portfolio stood at Rs 88,559 crore, a growth of 18 per cent y-o-y. Asset quality deteriorated marginally for the financial year and gross non-performing assets (NPAs) of the company stood at 0.67 per cent, up 6 bps from the corresponding period last year.