Soumendra Nath Lahiri will lead the portfolio management services business of Emkay
Emkay said it has appointed Soumendra Nath Lahiri as their chief investment officer.
Mr Lahiri will lead the portfolio management services business of Emkay.
Mr Lahiri brings with him over 21 years of rich experience across many segments of the industry. His experience includes managing hedge fund & mutual fund, stock broking portfolios.
Mr Krishna Kumar Karwa, MD, Emkay, speaking on the occasion said, "We are extremely excited about Mr Lahiri joining the team. His experience adds a lot of value to our services and our entire team will look forward to his guidance. We are sure that our clients too will benefit immensely with his presence on the team."
During his tenure with DSP Merrill Lynch Fund Managers, Mr Lahiri managed top performing funds like DSPBR TIGER Fund, DSPBR Opportunities Fund and Small & Mid-cap & Micro Fund. DSPBR TIGER Fund was rated as the top performing fund for six consecutive quarters by CRISIL and the DSPBR Opportunities Fund was awarded by CNBC TV 18 as Mutual Fund of the year in 2007 & 2008.
New Delhi: IT major Wipro's third quarter numbers failed to lift investors' sentiments, as they did not bring any "positive surprise", reports PTI quoting analysts.
Wipro today reported a 9.60% jump in consolidated net profit at Rs1,318.8 crore for the third quarter ended 31 December 2010, against a net profit of Rs1,203.2 crore in the year-ago period that failed to cheer the Dalal Street, they said.
Net income from sales rose to Rs7,829.3 crore for the December quarter as against Rs6,977.4 crore in Q3 FY10.
"Wipro's third quarter results are below our expectation. Revenue growth was lower than expected, whereas profit after tax (PAT) was in line with our estimates. We expect the stock to see correction as results lack any positive surprise," brokerage firm Prabhudas Lilladher said in a report.
Reacting to the lower-than-expected quarterly numbers, the stock witnessed selling pressure and slipped by 4.2% on the Bombay Stock Exchange (BSE).
However, the scrip had outperformed the key index in the last two months on expectation of a good show in the October-December quarter.
"We announced the appointment of TK Kurien as the CEO of IT business and executive director, Wipro with effect from 1 February 2011. The joint CEO structure was one of the key factors that successfully helped us navigate the worst economic crisis of our times," Wipro Chairman Azim Premji said.
Analysts feel that the management rejig may also hit the stock performance in the short-term.
"The operating margins for IT services business was flat, despite lower working days and drop in utilisation," Wipro executive director and chief financial officer Suresh Senapaty said.
The company's IT services revenue grew by 15% at Rs7,829 crore, over the same period last year.
For the fourth quarter ending 31st March, Wipro expects revenues from IT services business to be in the range of $1,384-$1,411 million, a sequential increase of 3% to 5%.
"There was no surprise element in the numbers. Wipro has effected management change. We expect the stock to be range-bound, post the recent run-up. We prefer Infosys and TCS in large caps," Kotak Securities senior vice-president (PCG research) Dipen Shah said.
Echoing Mr Shah's opinion, Geojit BNP Paribas Financial Services AVP Gaurang Shah said, "The management rejig has made the investors cautious, as it is now a big responsibility for Kurien, who will alone handle the position held by two people earlier."
Besides, Wipro's performance has been subdued in comparison to its peers Infosys and TCS, which may dampen investors' sentiments, Mr Shah added.
The market leader says it plans to transfer its units to a subsidiary in which Roquette Freres will be the majority stakeholder
When, or rather, why does a winner quit? Shareholders of starch and starch derivatives giant Riddhi Siddhi Gluco Biols Limited are pondering over this question.
Riddhi Siddhi, the market leader in India and the largest exporter of starch and starch derivatives, has decided to transfer all its units to a subsidiary in which French company Roquette Freres will be the majority stakeholder.
But what prompted the company to take this decision so suddenly? The shareholders don't have a clue. They are not happy about it, and have accused the company of cheating them.
Indian Air Force group captain, MP Surange, who has a minority stake in Riddhi Siddhi, said, "The promoters of the company are in the process of selling the assets to a French company in a manner that the entire proceeds will flow into the corpus of the promoters, with very little or no benefit to the minority holders."
Some days ago, Ganpatraj Chowdhary, managing director, Riddhi Siddhi said in a television interview, "Among all the manufacturing units of Riddhi Siddhi, three of them will be tasked to the subsidiary company. Roquette will take a majority stake in this subsidiary company. The enterprise value is estimated approximately at Rs 1,250 crore." Roquette Freres, which already has a 14.96% stake in the company, will initially have the majority stake, and may then move up to a 100% stake. Mr Chowdhary said the deal would take around six to nine months to be completed.
While the management is glowing, shareholders are puzzled by the lack of communication from the company on this decision. The Riddhi Siddhi stock, which was trading at about Rs500 levels end-October has dropped to Rs350 levels now in just two months and this is giving minority shareholders sleepless nights. Now, no one knows how the valuation money will be distributed among the stakeholders.
According to a financial analyst with a reputed firm, "The move will definitely affect shareholders adversely. If there is no communication from the promoters and no indication on how the money will be distributed, there is room for confusion and suspicion. This, in turn, will affect the goodwill of the company."
Many shareholders don't understand the rationale for giving up a very profitable business. That too, when the company is the market leader with a more than 35% market share. Mr Chowdhary claimed on television, "We are confident of receiving Rs1,000 crore turnover for the current year, with the EBITDA margin of 20%. We are expecting EBITDA for the current year to be around Rs200 crore-plus."
Generally, companies that sell a majority stake in the unit use the funds for new ventures. What has Riddhi Siddhi planned? The management was not available for an answer.
Earlier last year, Dutch paints and chemicals manufacturer AkzoNobel sold its National Starch arm to American Corn Products International (CPI). Now with Roquette Freres' making a move on Riddhi Siddhi, other companies may follow.
Even experts, who are optimistic on the sector following the entry of foreign MNCs, agree that selling off a profitable business is baffling. Will Riddhi Siddhi sort out the matter with stakeholders in the coming six months? Looks unlikely.