IL&FS Transportation declared preferred bidder by NHAI for new project

The IL&FS project is on toll basis with a concession period of 24 years including construction period of 2.5 years and the estimated cost of the project is Rs471.05 crore.

IL&FS Transportation Networks was declared preferred bidder by the National Highways Authority of India (NHAI) for construction of new bridges/structures, repair of existing four lane highway from Kharagpur to Baleshwar section of NH-60 from km 0.000 to km 119.300 in Orissa and West Bengal and its operation and maintenance under NHDP Phase I to be executed as BOT (toll) on DBFOT Pattern. The project is on toll basis with a concession period of 24 years including construction period of 2.5 years and the estimated cost of the project is Rs471.05 crore. The company has now received a Letter of Award from NHAI for the project.

In the late afternoon, IL&FS Transportation was trading at around Rs196.50 per share on the Bombay Stock Exchange, 2.32% up from the previous close.

User

Eurocopter India eyes top slot in 5 years

Eurocopter India CEO Xavier Hay said that at present the company holds 35% share of the Indian chopper market.

Eurocopter India, a subsidiary of Franco-German-Spanish Eurocopter group, is bullish on the Indian helicopter market and aims to reach the top slot in the next five years time, a top company executive said.

Eurocopter India CEO Xavier Hay said that at present the company holds 35% share of the Indian chopper market after its competitor Texas-based Bell Helicopter, which enjoys number one position with 45% share.

“Today we are currently in number two position with 35% market share and they (Bell) have 45%. We want to be in number one position in the next five years with the development of new markets such as Emergency Medical Services (EMS) and law enforcing agencies,” Hay told reporters at a press conference.

At present, Eurocopter has 29 customers, operating 80 helicopters in the civilian market with a total 500,000 flight hours and 360 helicopters in the militiary market in India.

Replying to query on the some of the regulatory bottlenecks in the expansion of markets, he said currently it takes 48 hours to get the takeoff or landing clearance from the authorities in case of EMS. He hoped that there will be some relaxation in the future.

Quoting aviation regulator DGCA records, he said that Eurocopter India delivered nine brand new turbine helicopters, out of a total of 14 registered last year with DGCA, representing a 65% market share.

Out of the nine aircraft delivered, five were twin-engine helicopters, with the remaining four being single-engine AS350 B3, he added.

He added Eurocopter also focused on developing its support and services offerings, where customers would be able to access a full suite of services from spare parts supply and technical assistance to training, retrofits and customisation anywhere in India.

In addition, the chopper maker is also expanding its network of Eurocopter-approved maintenance centres, adding Bangalore to the two existing facilities in New Delhi and Mumbai.

Hay forecast the chopper market in India will be doubled by 2015 to a total of 500 choppers.

"We (Eurocopter) are currently growing 20% annually. This is challenging for Eurocopter and India as well to double the market in four to five years. It is a bit difficult to envisage the target and forecast as to which segment is viable," he said.

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Equity Mutual Funds: Massive net outflows in February

Eleven months after SEBI got a new chairman, who happened to be the CEO of UTI Mutual Fund, the apathy of investors, distributors and fund companies have greatly increased

Sales of equity schemes in February amounted to a total of Rs3,880 crore, the highest since September 2011. Along with sales, redemptions from equity funds increased, as well. Redemptions touched Rs6,689 crore— the highest since October 2010. This led to a net outflow of Rs2,809 crore from equity mutual funds in February 2012.

Sale of equity linked savings schemes (ELSS) picked up from the month of January but was much less compared to February last year when the stock market was higher. Sales of ELSS amounted to Rs286 crore, up 17%, but was down by more than half compared to last year when the sales touched a high of Rs648 crore.

February saw just one new fund offer—Indiabulls Blue Chip fund—an equity fund, which managed to rake in just Rs13 crore whereas FT India Feeder-Franklin US Opportunities Fund—an overseas fund of funds—managed to bring in as much as Rs104 crore. Two fund companies have filed offer documents to launch similar funds.

The net equity fund flows have fluctuated a lot in the last one year. In the last 11 months equity mutual funds have seen a net inflow of just Rs51 crore which is better than last year. For the 11 months last year, equity mutual funds suffered an outflow of Rs13,591 crore. But despite the huge outflows, sales were much better in the previous period which came up to a total of Rs61,225 crore compared to the sales of the last 11 months which amounted to just Rs45,635 crore.

In short, much less of money is moving in and out of mutual funds, as uncertainties to the business caused by the regulator continued. In February last year, UK Sinha, then the CEO of one of the largest mutual funds, UTI, became the regulator. But this seems to have no difference so far. Indeed, investors are investing in even less, fund companies seem listless and distributors seem to have no interest in selling mutual funds.

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COMMENTS

manoja

5 years ago

@ DG,

Representing the interests of Distributors of MF is not narrow interest. Here is why.

I was into mutual fund sellling in a big way before the commissions were scrapped. Subsequent to the scrappin of commission, there was simply no incentive for me to go out and canvass for the sale of mutual funds at all. Clients are not willing to pay a service charge every time they put some money into a fund. And to service them without any revenue stream was not possible for me.

It was then I decided to become a sub broker with a leading brokerage house. I made all my clients in mutual funds to open a trading & demat account with this broking house. Started advising them actively on the equity market. And on each delivery trade when the clients are charged a brokerage, I get a share in that. My average earning since the last couple of years has exceeded the commission I used to earn by selling mutual funds.

And in the last three odd years, all my clients have only taken out money from mutual funds with no fresh investments made.

May be there are thousands of distributors like me who have found alternate channels to earn money and who have shunned mutual funds totally. This is the main reason why fund houses are not seeing any incremental investments in their schemes.

Deepak R Khemani

5 years ago

Well it is because Mr Sinha came from the industry every one felt that he would turn things around as he would have understood the problems faced not only by the distributors but the AMC's and the investors also, but alas things have moved very slowly and as regards to investors booking profits it is normal, as investors have waited for 4 years at a stretch and have seen zero or even negative returns in many equity schemes so this sudden burst of liquidity which has caused prices to rise from 20% to even 50-60% in many scrips, it is only logical that they will book profits and lock in high interest yields in debt and with the current political uncertainty it will take a brave heart to invest now, although this is the time when buying and remaining invested will actually give decent returns in the "LONG TERM"

pravsemilo

5 years ago

Do we have to see outflows as investors runnings away from mutual funds? Could it not be that they are trying to book profits from the rally? The article says that these outflows are highest since October 2010? Don't we see a similiarity between October 2010 and February 2012.

REPLY

DG

In Reply to pravsemilo 5 years ago

Its normal for MoneyLife to carry unbalanced reporting and opinions like this, without presenting all facets of the story.

Indian domestic investors and funds have sold through the rally, and it's hardly a difficult thing to understand with all the global uncertainty and domestic instability in government. Why should not book profits and take money off the table if I'm not confident of next 6-12 months?

But, the only angle MoneyLife can find here is to beat up SEBI again because Mr. Sinha has not lived up to the broker/agents hopes for reinstating entry commissions.

I put up with this narrow focus on MF broker/agent interest simply because except for this one major flaw, MoneyLife has been good at promoting investor interest.

pravsemilo

In Reply to DG 5 years ago

DG,

I humbly disagree. Though it could be that retail investors have booked profits - but did you also read the line where they said only net inflow is 51 crores (that too in 11 months) ? And did you also read how inflows have fluctuated? These numbers say how much SEBI is interested in promoting the interest of retail investors. 51 crores is not even 1% of the 6 lakh crores that are managed by mutual funds. Does that imply something? Doesn't it echo what Moneylife has been screaming about dwindling retail investor interest?

SEBI is wrong on its own part. We are better off not judging things - unless we have the complete information - which of course we don't have. Media (I mean moneylife not mainstream media) has more information than us. And they do the necessary research before arriving at a conclusion - which is quite evident in articles. You won't find such thing in the sharp dressed dim witted anchors of "breaking" news channels.

Wasn't it the mainstream media who hailed Bhave as the messiah?

DG

In Reply to pravsemilo 5 years ago

I agree we are better off not judging things on the basis of partial information. And MoneyLife indeed focuses more attention on several investor and consumer interest areas than other "mainstream" media. Multi-level schemes are one prime example.

My main complaint against such MoneyLife articles is limited to the narrow, one-sided view provided and lack of the larger context.

Net retail investor inflows into MFs always go up in rising markets and fall in falling markets. Instead of looking at overall market conditions, the article only tries to link it to SEBI and Sinha's appointment. I have no problem with this being pointed out as one factor, but trying to see MF inflows in isolation with market trends is strange to say the least.

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