To: Labrador who wrote (484) | 5/6/2000 11:03:00 AM | From: Labrador | | |
INDIA: ICICI stk down 5.5 pct despite profit rise.
05/02/2000 Reuters English News Service
BOMBAY, May 2 (Reuters) - Shares of Indian financial firm ICICI Ltd were down 5.5 percent despite posting a 20.5 percent rise in net profit for 1999/2000 (April-March). Analysts said investment gains had helped prop up the net profit and this factor was unlikely to help a rise in net profit again in 2000/01.
"If you strip the gains from sale on investments, profit is not all that impressive," Hemendra Hazari, banking analyst at ASK-Raymond James told Reuters.
The benchmark 30-share Bombay index rose 34 percent during the financial year, helping ICICI 's net profit from the sale of investments to touch 2.93 billion rupees against 440 million in the previous year.
ICICI 's stock was traded at 126.00 rupees at 11:15 a.m (0545 GMT) compared to Friday's close of 133.40 rupees tracking a weak market which was down over three percent at 4,510.66 points.
The firm which posted a net profit of 12.06 billion rupees ($276.29 million) for 1999/00 announced its results after close of trading on Friday.
The firm's shares have taken a beating since the central bank had questioned the firm's 1998-99 (April-March) results in early March.
ICICI had disputed a Reserve Bank of India (RBI) inspection report which said the profit figure for the year was overstated by 4.03 billion rupees on lower provision for sticky loans.
The stock had touched a high of 196.0 in early March before the central bank report dragged down the stock. However, analysts said they were still bullish about the firm's e-commerce initiatives which would help decide future valuations. "Its e-commerce initiatives are impressive and given the thrust there the stock is trading at reasonable levels," Vimal Jain of Prime India Broking said. He however added that he had no recommendation for the stock.
ICICI on Friday detailed its e-commerce initiatives at an analysts' meet on Friday after announcing its results. ICICI , along with its subsidiaries, has a strong presence in technology and offers a gamut of services including e-banking through ICICI Bank and e-broking through I-Web. ((Bombay newsroom, +91 22 265-9000, fax +91 22 264-1699, anirban.nag@reuters.com)). |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
To: Labrador who wrote (485) | 5/6/2000 11:04:00 AM | From: Labrador | | |
FUND BEAT / Baring all
05/01/2000 The Economic Times
US-64, the largest and oldest mutual fund in the market, has announced its top holdings. These are Reliance Industries, Reliance petroleum, HFCL, ITC, Infosys Technologies, Global Telesystems, SSI, Satyam Computer, ICICI and Mahanagar Telephone Nigam Ltd. Together these scrips constitute 53.3 per cent of the funds assets. The top 5 scrips constitute 37.11 per cent of the funds assets. For the quarter ending March 31, 2000, the net income of the scheme was Rs 738 crore. The total reserves of the scheme have also grown to Rs 4,223 crore.
UTI has also declared dividends of 16 and 20 per cent in its Mastershare and Grandmaster schemes respectively. The record date for both these dividends is May 20, 2000. In a separate move UTI has decided to issue a common application form for eight of its equity funds. these are Masterplus 91, Mastergain 92, Mastergrowth, Grandmaster 93, Primary Equity Fund, UGS 10,000, Master Index Fund and Nifty Index Fund.
UTI has also announced that, inspite of the volatility in infotech scrips, it will continue to maintain a 25 per cent exposure to this sector in its equity schemes.
Sun F&C Mutual fund is in the process of launching a high risk-high return fund called Resurgent India Equity Fund. This fund will concentrate on generating long term capital appreciation. The funds investment spectrum will consist of companies which are in the process of restructuring, privatising or growing through acquisition. Due to the high risks associated with this fund, the minimum investment will be Rs 5 lakh and in multiples of Rs 1 lakh thereafter. The initial offer period of the fund extends till May 25, 2000 and units will be available at Rs 10.
Sun F&C is also leveraging the power of the internet to make its schemes more accesible to potential existing as well as potential investors. Investors can now buy and sell the Asset Management Companys mutual fund schemes over the web.
IDBI Mutual Fund has recently issued its statement of Scheme(s)/Plan(s) portfolio. A look at the portfolio of the funds Tax I-NIT96 scheme reveals high concentration levels. The top 10 scrips constititute 69.81 per cent of the funds total assets. These are Infosys Technologies, Satyam Computers, Hindustan Lever, Zee Telefilms, Aptech, Gujarat Ambuja Cement Sun Pharmaceuticals, Reliance Industries, ITC, and Cipla Laboratories.
TATA Mutual Fund has decided to introduce a 10 per cent equity component into the portfolio of its income fund. According to the Asset Management Company, the step is a move to dilute the impact of the higher dividend distribution tax proposed in this years budget. As on March 31, 2000 Tata Income Fund had a 6.27 per cent equity component in the funds growth option. The equity holding in the dividend option was 0.57 per cent. |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
To: Labrador who wrote (486) | 5/6/2000 11:07:00 AM | From: Labrador | | |
Here's a great write-up of ICICI, and its potential is obvious. 05/01/2000 The Economic Times
ICICIs ability to capitalise on its early-mover advantage, improving asset profile and improving economic prospects have been driving the stock lately. Besides, its listing on the NYSE has also helped this FI move away from its traditional association with the commodity cycle. ICICIs web-trading product is the most recent in several e-commerce products it launched through its banking arm, ICICI Bank. Beginning with more traditional services such as payment of telephone bills, account balance queries and opening a bank account, ICICI went on to provide a platform to customers for facilitate trade and payment over the internet using ICICI Banks banking products. It has clearly taken the lead and is capitalising on its first-mover advantage by introducing new products. ICICI is expected to launch a few more e-commerce related products, particularly in the area of B2B and possibly B2C.
THE new web-trading product is being launched through a new subsidiary ICICI Web Trade, marking its foray into e-broking. This is the first integrated product that enables an ICICI Bank customer to buy shares on both cash and margin basis and have it deposited in the persons current account. This is likely to provide a fair amount of free float to ICICI . This will help ICICI reduce its funding costs apart from providing additional fee income. The proposed new product underlines the benefits of an integrated universal bank structure with ICICI Bank, ICICI Securities and ICICI Ltd, all playing a central role along with ICICI Web Trade.
This product together with the payment gateway will enable the bank to take ob about one lakh online customers over the next 7 to 8 months, from the current level of 14,000. This will accelerate the process of ICICI achieving the critical mass. It will simultaneously provide ICICI with enhanced cross selling opportunities.
The launch of its credit card expected by February 2000 should further close the existing gaps in the product line and provide an even greater thrust to ICICI groups cross selling efforts.
Although e-commerce business volumes in India are currently small, one player, proactive in the field of e-commerce, is likely to grab a larger share of that business with a resulting material impact. E-commerce is a medium that ICICI can exploit to enhance its payment franchise. Compared with traditional banks that earn a substantial proportion of their fees by way of LCs and remittances, ICICIs fee income is largely dependent upon guarantees and fees. This was an area where ICICI was lagging behindbecause of regulatory constraints on FIs. The internet does provide ICICI with the opportunity to take this advantage away from traditional banks that still rely on the brick and mortar branch network.
ICICI Infotech, a fully-owned subsidiary of ICICI , began as a registrar and transfer agency. Now a transaction processing company, it serves as ICICIs investor servicing company. It has set up an integrated document imaging and management system to handle investor correspondence. It handles all processing requirements of ICICIs retail business and implements SAP and millennium projects for the parent.
With the company beginning to cater to third party assignments, ICICI is expected to develop it into a regular technology company to enable it to achieve a prominent position. ICICI has also stated that over the long term, it plans to take the company public as employees of this company have been offered stock options. There is a strong likelihood that ICICI may acquire an existing software content provider and merge it with ICICI Infotech to develop it into a regular software company. Any acquisition in this direction is likely to result in ICICI getting higher valuations.
AN important facet of ICICIs strategy is its diversification into retail banking. This results in diversity of fund-base, lower cost of funding and a strategic opportunity. ICICI is a large borrower in the wholesale market, but a retail funding franchise is crucial to sustain competitiveness in short term lending - its new focus. ICICI has also recognised that it needs to access the domestic savings pool directly, which is the key to lower costs.
Retail banking is still in its early days and ICICI believes it can provide a better value proposition to customers than several of its peers. Technology has cut costs and regulatory barriers and ICICI can now offer a wide range of products through an array of channels. Among key elements of ICICIs retail strategy is a multi-channel distribution network centred around 300-odd low-cost automated centres in top 150 to 200 cities and 100-odd branches of ICICI Bank. Another is a branding strategy backed by adequate ad spending and a wide product range to maximise the share.
The retail distribution is gaining critical mass. ICICI is fast developing retail loan products and has launched mortgage loans. It plans to nationally launch consumer durables products.
ICICI is the first institution that has put in place a compatible IT architecture and common IT strategy across group companies. When regulations permit, the operations of individual entities could smoothly integrate. Even now, there would be no loss on the cross-selling opportunity or servicing ability owing to the capability of IT systems. NPAs are believed to have peaked during last fiscal. ICICI will be able to manage asset quality problems, going forward, due to better prospects of economic recovery and rising commodity prices, loan profile changing in favour of better quality loans and increased focus on NPL management and recoveries. Post FY 97, as part of its long-term strategy, ICICI has focussed on infrastructure and shorter term working capital loans. Incremental disbursements to manufacturing projects were cut. Proportion of manufacturing loans has fallen from 73 per cent in FY 97 to below 50 per cent in FY 99. Infrastructure and working capital loans form 51 per cent of total loans in FY 99. HISTORICALLY, for ICICI , a low provision cover has been a cause for concern. However, in FY 99, ICICI restated its accounts under US GAAP according to which the management has substantially raised provision coverage to 49 per cent. This is comparable with the coverage for domestic banks. ICICI has recognised its investment losses under US GAAP and written off Rs 600 crore from its books. This is quite positive, and was a persistent concern under the Indian GAAP.
IMPROVEMENTS in the outlook of commodity prices and the domestic economy have helped in better valuations for the scrip. Higher disclosures through adoption of US GAAP has resulted in a more transparent balance sheet. The potential of ICICIs e-commerce foray and its emerging retail franchise is expected to provide an upside to the valuations. A good medium term buy in our perspective. |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
To: Mohan Marette who started this subject | 8/8/2001 4:18:07 PM | From: Labrador | | | Performance Review - First Quarter Ended June 30, 2001: 21% Increase in Profit to Equity Holders MUMBAI, India, Jul 27, 2001 (BUSINESS WIRE) -- The Board of Directors of ICICI at its meeting held in Mumbai today, approved the audited accounts of ICICI (NYSE: IC chart, msgs) for the first quarter ended June 30, 2001 (Q1-2002). The Board also approved the unaudited consolidated accounts under Indian GAAP and considered the unaudited consolidated US GAAP financial statements of ICICI for Q1-2002. In order to facilitate comparison with earlier years, the key highlights of the unconsolidated accounts of ICICI under Indian GAAP are given below.
Results - Indian GAAP
Profit to equity holders (profit after tax less preference dividend payout) increased 21% to Rs. 326 crore in Q1-2002 from Rs. 269 crore in the quarter ended June 30, 2000 (Q1-2001). The profit after tax increased to Rs. 326 crore in Q1-2002 from Rs. 287 crore in Q1-2001.
Business Operations
The period under review was marked by generally lower credit off-take by corporates, and limited project finance opportunities in the absence of new projects. However, ICICI continued to maintain its growth by leveraging its strong corporate relationships and customised financial solutions. ICICI's disbursals increased 6% to Rs. 8,741 crore in Q1-2002 from Rs. 8,240 crore in Q1-2001. Total assets were Rs. 74,751 crore at June 30, 2001, an increase of 14% compared to June 30, 2000. ICICI's client-centric business model has been strengthened by the formation of dedicated relationship groups as part of the recent re-organisation of the wholesale banking business. The newly-created Government & Institutions Group (GIG) has made significant progress in establishing relationships with public sector undertakings, urban local bodies and other government institutions which offer wide-ranging business opportunities. GIG accounted for 13% of ICICI's disbursals for the quarter.
ICICI continues to diversify and de-risk its portfolio by focussing on highly rated clients and structured finance. Disbursals to "A-" and higher rated clients accounted for 92% of ICICI's total disbursals during the quarter.
ICICI's business volumes in retail finance continued to increase, and the ICICI Group today offers automobile finance loans in 72 cities, home loans in 61 cities, consumer durable loans in 26 cities and dealer funding in 29 cities. ICICI is today the largest financier for several leading automobile brands and a key housing finance provider. The ICICI Group's retail finance disbursals increased to Rs. 1,139 crore in Q1-2002 from Rs. 571 crore in Q1-2001. Retail finance disbursals accounted for 13% of total disbursals in Q1-2002 as compared to 7% in Q1-2001.
ICICI continued to unlock value out of its technology-related investments. During Q1-2002, ICICI divested 7.8% in the ICICI Eco-Net Fund in favour of Compaq Corporation for a consideration of US$ 4 million, recording capital gains of Rs. 11 crore.
Despite the high volatility in the equity markets and declining stock indices, ICICI's secondary market equity trading operations resulted in a net gain of Rs. 4 crore. This was achieved through active management of the portfolio and the use of equity derivatives. During the quarter, secondary market equity trading exposure ranged between Rs. 20 crore and Rs. 76 crore. ICICI also outperformed the market indices in its trading operations in government securities.
Asset Quality
ICICI's net NPA ratio was 5.1% at June 30, 2001 and net NPAs outstanding were Rs. 3,007 crore. ICICI has been able to restrict the level of NPAs due to its focussed efforts for recovery from existing NPA cases and increased monitoring of stress cases. The Special Asset Management Group (SAMG) continues to drive ICICI's efforts towards recovery and asset resolution. ICICI has made provisions against NPAs as per the accelerated provisioning policy adopted from FY2001, which achieves a provision cover of 50% against the secured portion of NPAs in three years as against five-and-a-half years mandated by the Reserve Bank of India.
Rapid liberalisation and globalisation has changed the operating environment for Indian companies and necessitated restructuring of operations and credit facilities of some intrinsically viable companies. ICICI has focused on proactive restructuring of such viable companies to maximise their economic value, with appropriate contractual mechanisms to mitigate credit risk and safeguard lenders' interests. The RBI has issued guidelines which provide a strong impetus to proactive and meaningful restructuring. During Q1-2002, ICICI restructured assets aggregating Rs. 1,439 crore and made provisions/ write-offs of Rs. 32 crore against these restructured assets.
Capital Adequacy
ICICI's capital adequacy at June 30, 2001 was 15.1% including Tier-1 capital adequacy of 9.6% and Tier-2 capital adequacy of 5.5% (including revaluation reserve as per the RBI guidelines).
Unaudited Consolidated Accounts under Indian GAAP
Profit after tax increased by 25% to Rs. 371 crore in Q1-2002 from Rs. 297 crore in Q1-2001.
Unaudited Consolidated Accounts under US GAAP
Income before tax and cumulative effect of change in accounting principles increased 21% to Rs. 334 crore (US$ 71 million) in Q1-2002 from Rs. 275 crore (US$ 58 million) in Q1-2001. Net income before cumulative effect of change in accounting principles increased 9% to Rs. 251 crore (US$ 53 million) in Q1-2002 from Rs. 231 crore (US$ 49 million) in Q1-2001. However, adding back the cumulative effect of change in accounting principle amounting to Rs. 126 crore, net income for Q1-2002 is Rs. 377 crore (US$ 80 million).
The balance sheet does not include the deferred tax asset arising out of 'other than temporary' diminution on investments charged to the income statement in prior years. Inclusion of such asset could have a positive impact of upto Rs. 96 crore on stockholders' equity at March 31, 2001. However, the exact amount will be ascertained on evaluation of likely realization of the deferred tax asset by the management. This change will be incorporated in the Form 20-F, as a correction to the financial statements for financial year 2001, to be filed with the Securities Exchange Commission.
Summary Profit and Loss Statement (Indian GAAP)
Rs. crore
Q1-2001 Q1-2002 Growth % FY 2001
Fund based income 2,001 2,207 10.3% 8,211 Less : Interest and other charges 1,626 1,836 13.0% 6,912 Net fund based income 375 371 (1.1%) 1,299 Add : Fees and commissions 98 166 68.8% 522 Net income from operations 473 537 13.5% 1,821 Less : Operating expenses 83 78 (6.9%) 337 Profit from operations 390 459 17.8% 1,484 Less : Provisions and write-offs for loans & debentures 115 109 (4.4%) 608 Profit before income from investments and other income 275 350 27.1% 876 Add : Dividend income 51 45 (12.2%) 108 Add : Gross Capital Gains 6 43 -- 489 Less : Write-down of investments 27 56 -- 145 Net capital gains (21) (13) -- 344 Add : Other income 8 4 (51.9%) 62 Profit before accelerated provisions & tax 313 386 23.0% 1,390 Profit before tax 313 386 23.0% 577 Less : Provision for tax 26 60 130.8% 40 Profit after tax 287 326 13.3% 537 Preference dividend 18 - - 18 Profit to equityholders 269 326 20.7% 519
Summary Balance Sheet (Indian GAAP) Rs. crore
Jun 30, Jun 30, Mar 31, 2000 2001 Growth % 2001
Net loans and debentures 50,501 57,196 13.3% 56,002 Other Investments 3,371 4,461 32.4% 4,404 Current assets 7,123 7,005 (1.6%) 7,583 Leased assets 3,581 3,954 10.4% 4069 Other fixed assets 904 1,804 99.5% 1,042 Miscellaneous expenditure 350 331 (5.5%) 314 Total assets 65,830 74,751 13.6% 73,414 Shareholders' equity and reserves 8,303 9,018 8.6% 7,973 Of which : Equity capital 784 785 0.1% 785 Preference capital 359 350 (2.4%) 350 Borrowings 52,087 60,084 15.4% 59,835 Current liabilities 5,081 5,299 4.3% 5,256 Total liabilities 65,830 74,751 13.6% 73,414
Note :
1. Shareholders' equity and reserves includes revaluation reserve of Rs. 720 crore.
2. Provision for taxation for Q1-2002 includes deferred tax provision as per the accounting standard. However, no deferred tax liability relating to earlier years has been created. If such liability was created, the reserves would have been lower by Rs. 339 crore.
Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Contact:
ICICI Limited (For press queries) Madhvendra Das, 91-22-653 6124 email at das@icici.com or (For investor queries) Rakesh Jha, 91-22-653 8902 Sandeep Guhagarkar, 91-22-653 6157 email at ir@icici.com |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
To: Labrador who wrote (490) | 8/14/2001 10:57:55 PM | From: Imran | | | why is the stock so down? i bought earlier at 16, then saw it go up to the peak and down to 11, where i sold out.....
what are the prospects? earnings are still good..........
thx imran |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
To: Labrador who wrote (492) | 8/15/2001 5:45:21 PM | From: Imran | | | i guess so.......accounting in US GAAP seems to not be a priority..........but, do u think the fundamentals are there? steady divs and the indian govt will never let it go down....
imran |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
From: stevenmdart | 11/24/2009 6:54:33 AM | | | | Acquisitions and the Pharma industry
The Pharmaceutical industry has always been ruled by a selected number of ‘kings’, but now things are changing. New entrants are severely shaking their R & D models. Survival strategy - Instead of competing with them in research & development, the top 20 pharmaceutical companies are outsourcing the legwork to the new-borns. Not only to save around $7.5 billion annually (pharmaceutical industry) on an average, but also to save on the opportunity cost of generics replicating their formulas and selling products at huge discounts.
CytoDyn (CYDY) incorporated in 2003, has also come to the table with a revolutionary breakthrough: Cytolin. They claim it to be the only solution for HIV/AIDS (immune system therapy); and to prove it, studies of the drug will be designed and conducted by Massachusetts General Hospital. Past results of drug test on ten HIV infected subjects (carried out by company itself) were clearly evident of its efficacy and performance. But, once it gets through the study of Massachusetts General, more hype is expected, making it one of the hottest — yet one of the most classified — stocks in the biotech market.
What are your opinions regarding investment in such emerging pharmaceutical companies? Comments, ideas or stock pick suggestions are welcome.
blog.insidecytolin.com |
| ICICI Ltd - (Nyse: IC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| |