Sunday, June 13, 2010

>What’s wrong with America’s right

Irate Iran, truculent Turkey

English football: the deeper meaning

When China runs out of workers

Inside Brazil’s favelas

Newspapers: not dead yet

To read the journal: THE ECONOMIST


The auctions for Broadband Wireless Access (BWA) license ended today. 2.3 GHz spectrum was
auctioned for 22 circles and 11 companies were bidding for it.

See details in report

The duration of the license is 20 years.
Services will be rolled out by year end by the service providers.
The companies will have to pay the bid deposit within 5 calendar days of the close of the
relevant auction and the balance amount is to be paid within 15 calendar days of close of relevant auction.
The Government rose over Rs 38000 crore from the BWA auctions, including money paid by
BSNL & MTNL for spectrum provided a year earlier. With the completion of the bidding the
Government has completed the long pending process of the auctions.

Bharti Airtel won bids on 4 circles and will pay an amount close to Rs 3300 crores for 4 circles.
- The company had already paid Rs 12000 crore for the 3G license and completed Zain
acquisition this week only. So the new amount will be another strain on a company which
was debt free last year before acquisition of Zain Telecom.

- The stock of the company was trading at Rs 274.25 down by 3.76%

To read the full report: BROADBAND WIRELESS AUCTIONS

>Gems & Jewellery Market – India: Major Government Bodies

The Gem and Jewellery Export Promotion Council (GJEPC)
The apex body of G&J trade in India was set up in 1966 for promoting precious stones and
jewellery exports

Has 6,500 members across the country

It has undertaken many initiatives in order to enhance competitiveness.

  • Preparation of a medium term export strategy for various sectors including G&J by the Ministry of Commerce
  • Exploring the possibility of direct procurement of rough diamonds from mining countries
  • Promotion of Indian diamonds and jewellery abroad through advertisements, publicity and
  • participation in international fairs, buyer seller meets as well as directly approaching market retailers
  • Market study through experts in the field to identify new markets
  • Promotion of export of 'hallmark' jewellery from India to assure foreign customers of quality and purity of jewellery made in India.

The Gem and Jewellery Trade Council of India (GJTCI)
This council is established with the main aim of boosting the gem and jewellery trade of India
It plays an important role in showcasing the Indian gem and jewellery to the international market
It is a council formed to boost jewellery trade of India by resolving various issues of the trade by forwarding them to the relevant high authorities
It disseminates latest information to its members through a monthly newsletter, various educative and trade motivational events such as seminars, workshops, exhibitions, festivals etc.

To read the full report: GEMS & JEWELLERY

>INDIA INFRASTRUCTURE: Next five years—bigger and better (UBS)

Sector set to grow strongly; government steps up debottlenecking
We forecast strong growth for the sector with likely ordering activity of US$300bn over three years and likely spending of US$500bn over five years. We also think the government has taken a number of measures over the past year to ease pre-execution hurdles (the major cause of delays in infrastructure development) in critical sectors such as power and roads. We believe there is an improvement in funding availability, a trend we think could continue.

Revenue visibility and robust margins should drive earnings
FY10 order inflows of engineering and construction (E&C) companies under our coverage were ahead of our expectations, and revenue visibility (order book) is at its peak for most. We expect revenue to pick up strongly in FY11, driven by larger project portfolios and an improved macroeconomic environment. We believe companies will largely be able to maintain their margins (at peak levels in FY10), driven by operating leverage and reasonable pricing (without compromising on margins).

E&C companies will benefit; L&T, BHEL and Nagarjuna are key plays
We prefer contractors and equipment suppliers under the infrastructure theme due to the earlier impact of rders on their earnings. We think strong ordering activity should keep multiples buoyant. Our top picks are: 1) L&T—multi-sector exposure, integrated model and strong financials; 2) Bharat Heavy Electricals (BHEL)—near-term earnings intact, operating leverage should drive margins; and 3) Nagarjuna Construction (Nagarjuna)—our preferred mid-cap play.

Among developers, we prefer power utilities
We prefer power utilities that have large merchant capacities and strong execution. Our top pick is Lanco Infratech (Lanco). Among the diversified developers under our coverage, we like GVK Power and Infrastructure (GVK) and Reliance Infrastructure due to their attractive valuations.

To read the full report: INDIA INFRASTRUCTURE

>SUZLON ENERGY: Management discussion 2009

•Suzlon completed the acquisition of 91% stake in Repower by acquiring 37.82%.

•It sold 10% stake in HansenTransmission for Rs6000 mn.

•It again sold 35.22% stake in Hansen for USD370 mnon 24Nov2009, which reduced its debt by around 15%.

•SE ForgeLtd. (subsidiary) raised Rs4000 mn from IDFC PE firm.

•SETL(China), a subsidiary of Suzlon, to setup 100MW wind farm project funded by the WorldBank.

To read the full report: SUZLON ENERGY