Expect a moderate acceleration in growth for Tier-I IT in FY14, says Nomura

 

Oracle’s license sales growth is an early indicator of a pick-up in discretionary spending for IT services companies, says Nomura Equity Research in its Quick Note
 
“We continue to expect a moderate acceleration in growth for Tier-I IT (Information Technology) in FY14 (versus FY13). Our Tier-I IT stock preferences among ‘Buys’ are HCL Technologies, followed by Wipro and Cognizant, and among ‘Neutrals’ we prefer Infosys over Tata Consultancy Services,” Nomura Equity Research said in its Quick Note. 
 
Oracle Corporation’s license sales growth is an early indicator of a pick-up in discretionary spending for IT services companies, and the muted performance (-2% year-on-year and flat in constant currency) in 3Q (third quarter) could temper exuberance in street expectations for IT services companies. This according to Nomura analysts, is after the third quarter results announcement of Oracle Corporation. Its shares were down 8% in after-market trading in America. This result miss, according to Thomson Reuters, is their worst miss in revenues since November 2011.
 
Nomura analyst Rick Sherlund (based in the US), in his First Look note on Oracle Corporation results, made the following observations:
 
(a) License revenue came in at $2.338 billion (-2% year-on-year, 0% constant currency), below the guidance range of +3%-13%;
 
(b)  Hardware products revenue was $671 million (-23% year-on-year, -22% constant currency), which is another in a long string of hardware disappointments;
 
(c) EPS (Earnings per share) of $0.65 was below Nomura’s estimates of $0.68 on lower-than-expected revenues as well as a lower-than-expected operating margin of 46.6%.
 
Oracle Financial Services Software (in India) was trading at Rs2,600, down 2.85%, on the Bombay Stock Exchange.
 
According to Oracle Corporation (US) management’s guidance and commentary for future performance:
 
(a) Oracle has guided for 1%-11% year-on-year growth in license revenues for the next quarter and a fall of 12%-22% year-on-year in hardware.  
 
(b) Oracle attributed the miss in revenues to lack of urgency in sales force execution which has led to many 3Q (third quarter) deals falling into 4Q (fourth quarter). 
 
(c) Oracle mentioned in the results conference call that the pipeline growth is encouraging but they still have been conservative with the 4Q (fourth quarter) guidance. 
 

User

Indian pharma market records 7.7% y-o-y growth in net sales February

 

The slowdown in net sales growth has been a result of uncertainties surrounding the pending pharma pricing policy, lack of investment in sales force and regulatory delays in obtaining new product approvals in India, says Nomura Equity Research on the Indian pharmaceuticals market
 
The Indian pharmaceuticals market (IPM) is a secular growth story, with market growth led by new product introductions and volume growth driven by increasing penetration and better access to healthcare. As per AIOCD (All Indian Origin Chemists & Distributors) data, IPM registered net sales growth of 7.7% year-on-year in February 2013 after growing 10%+ in January 2013. For the quarter ended December 2012, IPM net sales growth came in at 9.1% year-on-year, as per AIOCD data. Nomura Equity Research notes that 3QFY13 was the first occasion where IPM net sales growth fell below 10% year-on-year (since April 2007).
 
As per the industry, the slowdown in growth has been a result of uncertainties surrounding the pending pharma pricing policy, lack of investment in sales force and regulatory delays in obtaining new product approvals in India, observe Nomura analysts. 
 
Nomura reports that Zydus Cadila (ex-Biochem) (26.2%), Sun Pharma (14.8%), Lupin (11.6%), Glenmark (10.3%) and Cipla (9%) posted higher year-on-year net sales growth than the overall IPM in February 2013. There has been slower growth for Glaxo (0.4%), Ranbaxy (5.5%) and Dr. Reddy’s (1%).
 

User

Lawmakers disgrace India: From Mumbai to Delhi, a saga of bad behaviour

With lawmakers across parties, be it in Mumbai or Delhi or elsewhere, behaving in such a petulant manner what is in store for the ordinary citizens. They will have to be alert and ready to fight for their rights as more and more lawmakers themselves will become law breakers

 
Not very long ago, we in Maharashtra used to take pride that ours is an industrially advanced state with strong bedrock of culture. When we used to hear stories about MLAs in some other states indulging in violence inside and outside the Assembly, we used to express disgust at their behaviour. In our sense of self-righteousness we used to condemn such a conduct and would express strong anathema towards the unbecoming behaviour of the lawmakers.
 
Not anymore, it seems those days are well and truly over. What happened on 20 March 2013 in Mumbai and that too within the precincts of the Maharashtra Vidhan Bhavan at Nariman Point would make our heads hang in shame. Few MLAs/MLCs pounced upon an Assistant Police Inspector Sachin Suryavanshi and thrashed him in the presence of several other MLAs as also police officials. He was rescued by other policemen and had to be rushed to a public hospital. Later, he was shifted to the ICU of Bombay Hospital. 
 
 What was the fault of this policeman who invited such a wrath of these worthies who call themselves as citizens’ elected representatives? As evident from the press reports, a day earlier this same cop had hauled up one of the MLAs named Kshitij Thakur, a young people’s representative from an area close to Mumbai. He was charged for speeding on the Bandra - Worli Sea Link and was made to halt and asked for the fine for over speeding. 
 
Instead of submitting himself to the law of the land, this worthy MLA moved a breach of privilege motion against the cop and wanted him to be punished by the House. He claimed that the policeman had misbehaved with him. That is true, when you ask a lawmaker to follow the law it amounts to misbehaviour; after all the laws are made by them for the common men to follow, they are above the law.
 
Next day the said policeman was in the visitors’ gallery of the Assembly and this MLA happened to see him. Soon he and few other MLAs went and got hold of the cop and thrashed him right inside the Vidhan Sabha building.
 
As if the conduct of the MLAs was not shameful enough, they were duly protected by their parties as well. While next day the House suspended them from the membership of the House till December end of 2013, no further action was forthcoming.
 
But the more shocking behaviour was of the senior police officers who miserably failed to perform their duty. Instead of arresting the guilty MLAs, the DGP and the Police Commissioner went and met the Chief Minister to express their displeasure.
 
Imagine what would have happened if instead of an MLA an ordinary citizen would have even dared to touch a policeman; he would have been immediately arrested and charged with the serious offence of beating a public servant and remanded to 14 days jail with further consequences to follow subsequently. In addition, the ordinary citizen would have been beaten blue and black for daring to touch a policeman. 
 
Instead, in this case, the MLAs were able to negotiate their surrender and that too only two of them came at their convenience to the police station two days later and they were remanded to custody for one day. Senior police officers expressed satisfaction and indulged in self-congratulations. 
 
The latest news is that all the MLAs are upset at the arrest of these two MLAs and want the policemen to be taught a lesson so that they are put in their place. With senior police officials playing footsie with the political leadership, it will not be surprising that a quiet burial will be given to the whole episode in the coming days. In fact worse may follow and the injured cop may be charged for misbehaving with a worthy MLA and be suspended from service; surprises never cease to happen, just keep your ears to the ground.  
 
If politicians in Mumbai were touching the nadir of their conduct in public, their senior brethren in Delhi was faring no better as is evident from the conduct of several Members of Parliament during the debate on the Anti-Rape  Law. While discussing the issue of providing greater protection to women, many MPs made derisive comments about women. In fact, Sharad Yadav, leader of JD (U), crossed all limits and made such cheap comments about women that one cannot even reproduce them. It was shocking that he and several other honourable members of Parliament failed to display any seriousness on the issue and instead indulged in banter even while the discussion on such a vital piece of legislation was on. Ms Supriya Sule was heard lamenting the conduct of her colleagues in Parliament. 
 
As it is the MPs had failed in discharging their duty as two-thirds of them chose to remain absent from the House even as the anti-Rape law was being discussed by the House; many of those present exposed their perverted mental makeup, it would have better if they had also remained absent.
 
With lawmakers across parties, be it in Mumbai or Delhi or elsewhere, behaving in such a petulant manner what is in store for the ordinary citizens. It only means that the citizens have to be alert and ready to fight for their rights as more and more lawmakers themselves will become law breakers.
 
(Dr SD Israni, advocate & partner, SD Israni Law Chambers, is one of India’s leading authority on corporate, commercial and securities laws. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on disclosures (called the Malegam Committee) and the one on buy-back of shares. Dr Israni has been a member of the Legal Affairs Committee of the Bombay Chamber of Commerce and Industry, Indian Merchants' Chamber and Indian Council of Arbitration. Dr Israni is an active member of the Institute of Company Secretaries of India and was on its Central Council for four terms and headed the Capital Markets Committee of the ICSI.)
 

User

COMMENTS

Vaibhav Dhoka

4 years ago

There is NO credibility for any system in force.Superiors suppress downtrodden.We are fast moving back to King mentality.The above insistence is very shameful.The height of political disgrace is seen in demand across politician to pardon Sanjay Dutta after supreme court gave its 1993 bomb blast verdict.This shows that politicians are above law.Time has come to dissolve judiciary if such demand arises.Meaning there is no equality in INDIA.

DEEPAK KHEMANI

4 years ago

It seems we are living in the Kingdom of India and not a democracy wherein our elected representatives(yes we need to take the blame for electing such people)have become KINGS and think they are here to rule us and not represent us, and as they say the law will take its own course!

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)