Being an election year, domestic revenues for Tata Consultancy Services are expected to decline in March quarter, thus impacting its overall growth, says SBI Cap Securities
Demand environment for Tata Consultancy Services (TCS) would remain as there is an improvement in discretionary spending. “Generally March is the strongest quarter for India business. However, being an election year, revenue from India is expected to decline quarter-on-quarter in Q4, impacting the overall growth,” says SBI Capital Securities in a note.
According to a research note, geographically, the US and UK are expected to grow close to the average of TCS, whereas Latin America would grow faster.
“For TCS, performance in March quarter is likely to be weaker than December quarter due to seasonal factors and softness in the India business, impacted by the general elections,” the report said.
SBI Cap Securities, in a research note, has lowered its estimates on TCS for Q4 to 2% in constant currency, down from its 3% estimates earlier. According to TCS management, closure and ramp-up of deals are on track. The company expects better FY15 compared with FY14.
In terms of profitability, TCS had maintained its long-term EBIT margin target of 27% and would look at reinvesting in domain capabilities, expanding its offerings and reach, and also being more aggressive in chasing deals, the research report said.
SBI Cap Securities, said, “Despite near-term revenue weakness, we believe TCS is best placed to capture any uptick in spending on the back of its diverse presence across verticals, markets and service lines. Over the last 1M/3M, TCS has corrected by 7%/2% and currently trades at 18.9x/17.0x F15e/F16e EPS. Considering its ability to retain and improve market share and recent stock price underperformance, the research analysts upgrade the rating to BUY from HOLD with a revised target price of Rs2,525 valuing company at 21x F16e earnings.”
The company’s financial summary is shown in table below:
SEBI levied a fine of Rs28 lakh on Mafatlal Finance and its two promoters for delay in compliance with its disclosure norms
Market regulator Securities Exchange Board of India (SEBI) has imposed a penalty of Rs28 lakh on Mafatlal Finance Company and its two promoters on failure to disclose information within stipulated time.
In three separate orders, SEBI asked Mafatlal Finance Company to pay a fine of Rs8 lakh, and its two promoters, Mafatlal Industries and Ensen Holdings (now known as PIL Chemicals to pay Rs10 lakh each.
SEBI said the company and its two promoters failed to disclose their holdings in timely manner between 1998 and 2007.
In its reply, Mafatlal Finance said, “The aforesaid delay has occurred on account of our erroneous presumption and understanding of the requirements of SAST regulation believing it to be necessary if and only when there has been a change in the promoter holding either by acquisition of new shares or the sale out of their present holdings. It has not received communication from the Stock Exchanges regarding its non submission in the earlier years.”
“Its shares have continued to remain suspended from the year 2000 onwards and hence no trading entry or exit opportunities were/are available to the shareholders. No pecuniary gain or loss was hence possible due to the delayed disclosures owing to the suspension of trading of the company’s shares. The said suspension in fact continues till date. Further no prejudice is caused to anybody due to the aforesaid delay in disclosures,” the company said.
As per SEBI order, the two promoters were required to make the yearly disclosure to Mafatlal Finance within 21 days from the financial year ending 31st March in respect of their holdings, among others, which they had failed to do.
After spending 22 days behind the bars, Subrata Roy has been granted bail on a condition that Sahara group deposits Rs10,000 crore with SEBI
The Supreme Court, while granting conditional bail to Subrata Roy, has asked the Sahara group to deposit Rs5,000 crore with market regulator Securities and Exchange Board of India (SEBI) and also provide bank guarantees for another Rs5,000 crore. After spending 22 days behind the bars, Roy has been granted bail on a condition that Sahara group deposits Rs10,000 crore, half of it in cash, with SEBI.
The apex court also agreed to defreeze bank accounts of Sahara group companies to raise Rs10,000 crore. The case is adjourned for Thursday and Sahara is asked to furnish its bank account numbers which are to be defreezed.
During the hearing on Tuesday, the Sahara group offered to pay the market regulator Rs20,000 crore within next 12 months. This is the money, two Sahara group companies collected from investors through optionally fully convertible debentures (OFCD).
In a fresh proposal to the bench of Justices KS Radhakrishnan and JS Kehar, the Sahara group had said they will deposit with SEBI Rs2,500 crore within three working days of the acceptance of its proposal and three instalments of Rs3,500 crore each on 30th June, 30th September and 31 December 2014. The balance Rs7,000 crore would be deposited 31 March 2015, the group said.
The Sahara group said its proposal to deposit Rs20,000 crore to the market regulator in five instalments would be backed by an irrevocable bank guarantee.