NIIT’s net revenues rose to Rs239 crore during the quarter under review.
IT training company NIIT Ltd reported a net profit of Rs40.75 crore for the third quarter ended 31 December 2011.
Net revenues rose to Rs239 crore during the quarter under review, up 15% from Rs207.9 crore the same year-ago period.
"The acquisition of two global clients for delivering multi year multi million dollar managed training services growth enrolment, both for the short-term technology diploma programmes and finance and banking courses, reflected the strong acceptance of the NIIT brand in these challenging times," NIIT CEO Vijay Thadani said.
In the late afternoon, NIIT Technologies was trading at around Rs213.40 per share on the Bombay Stock Exchange, 2.76% down from the previous close.
“State Bank of India will finance 85% of the On Road Price of Mahindra Reva Electric Vehicles with tenure of 7 years and low interest rate of 12%:” R N Mehra, CGM, State Bank of India.
Mahindra Reva Electric Vehicles Pvt. Ltd., a part of the US $14.4 billion Mahindra Group, has signed a Memorandum of Understanding (MoU) with State Bank of India (SBI), the country’s premier public sector bank. The preferred financier agreement was signed by both parties which will enable both Mahindra Reva and State Bank of India to leverage on the inherent strengths of each other’s vast network.
The MOU was signed by Mr. R N Mehra, chief general manager, personal banking of State Bank of India and Mr. R Chandramouli, chief of operations of Mahindra Reva Electric Vehicles Pvt. Ltd.
Speaking on the occasion, Mr. R N Mehra, CGM, State Bank of India Mumbai said, “State Bank of India will finance 85% of the On Road Price of Mahindra Reva Electric Vehicles with tenure of 7 years and low interest rate of 12% (Rs1765 per lakh of loan for 7 years). There will be no pre payment penalty in case customers choose to pre close the loan. Through this initiative, we are pleased to promote Green Cars as these are environment friendly”.
Mr. R Chandramouli, chief of operations of Mahindra Reva Electric Vehicles Pvt. Ltd. said, “It is a moment of pride for Mahindra Reva to be associated with a bank of the stature, heritage and respect as SBI. With such highly competitive schemes and finance, we are hopeful of getting a good response from our dealers and customers”.
Out of the 134 equity diversified schemes that are aged five or more years, around 16 of them have grossly underperformed the benchmark over all the periods mentioned
Moneylife has conducted a study to analyse which equity diversified mutual funds have constantly underperformed their benchmark over one year, two years, five years and since inception. Five years is a reasonable time for funds to prove their performance. However, out of the 134 equity diversified schemes that are aged five or more years, around 16 of them have grossly underperformed the benchmark over all the periods mentioned.
In various articles in the past and in our financial literacy seminars held by Moneylife Foundation, we have consistently pointed out that one should not go by the names or rather brand name of fund houses but by the performance of that particular scheme. The list of 16 contains a few big names, as well.
Life Insurance Corporation of India (LIC) would be your first choice while looking for an insurance product but do not make the same judgement when choosing a mutual fund. LIC Nomura MF has been infamous for its poor equity fund management. Moneylife has commented in the past on its meagre performance. In fact all of its equity funds have failed to perform. Three out of their five equity schemes—LIC Nomura Equity, LIC Nomura MF Opportunities and LIC Nomura MF Growth—are on the list of underperformers where the funds were launched five years back. The other two funds—LIC Nomura MF India Vision and LIC Nomura MF Top 100 were launched a few years back and have also underperformed their benchmark in the last one and two years.
HSBC Mutual Fund, part of the HSBC Group which has been managing assets for 25 years globally, has two of its funds on the list. HSBC Midcap Equity and HSBC Progressive Themes have given a return of around 10 percentage points lower than that of its benchmark in the last one year. The HSBC Progressive Themes Fund has given returns of -7% and -2% in the last five years and since inception, respectively, compared to its benchmark which has given a return of 3% and 7% in the respective period.
Tata Mutual Fund has two of its schemes on the list. Tata Capital Builder, launched in September 2006, has underperformed the benchmark by just a percentage point or so in all the periods. The Tata Service Industries Fund has done a bit worse though. It has given a return of -12% in the last ten years compared to its benchmark which has given a return of -5%. There has been a difference of 3-4 percentage points in the other periods as well.
Two schemes from Principal Mutual Fund, part of the Principal Financial Group which manages assets worldwide, have failed to perform, as well. In the last five years it has given a return of -4% whereas the benchmark returned 3%. Principal Services Industries Fund, launched in March 2006 has given a return of 2% since inception compared to its benchmark which returned 7% in the same period. Its mid-cap fund launched in November 2008, has underperformed the benchmark in the last one year and two years, as well.
One fund of SBI Mutual Fund—SBI Magnum Multi Cap—has underperformed its benchmark in all the periods. Whereas two other funds of SBI Magnum—SBI Magnum Sector Funds Umbrella and SBI Magnum COMMA Fund—have underperformed the benchmark in the recent one year and two year period but have outperformed in the five year period.
Reliance Equity Fund has failed to perform in all the periods. Well, this was not the lone underperformer of Reliance Mutual Fund. Older funds like Reliance Growth, Reliance Vision and Reliance RSF Equity have underperformed the benchmark in the last one year and two years as well. Holding a large stake of Reliance Industries in September 2011 may have well hampered their performance.
A fund house well known for their gross performance of equity funds is JM Financial Mutual Fund. This is one name you should certainly beware of. All of its equity funds have seen poor performance. The fund which has underperformed on all occasions is JM Equity. For the five-year period it has returned -6%, the lowest on the list, whereas its benchmark has returned 3%. The funds which have been launched within the five year period—JM Core 11 Fund and JM Multi Strategy Fund has given a return of 18 percentage points and 9 percentage points below their benchmark Return in the last one year. They have under performed the benchmark in the two-year period, as well. JM Basic Fund, too, underperformed the benchmark in the one-year, two-year and five-year period and somehow managed to beat the benchmark performance since inception.
Other funds which are a part of the list are IDFC Classic Equity Fund Plan A, UTI Contra Fund, Taurus Discovery Fund and ICICI Prudential Midcap Fund.