Month: July 2008

Medybiz is developing a home-based disease management programme for the treatment of chronic ailments

The Anil Dhirubhai Ambani Group (ADAG) is all set to enter the personalised healthcare services through its Reliance Health Ventures, Medybiz,

Medybiz, the unit of ADAG engaged in the healthcare services is in the final stages of developing a home-based disease management programme for the treatment of chronic ailments like, coronary heart diseases, hypertension, diabetes, obesity, cancer, neurological disorders.

The first of its kind healthcare services will help people change unhealthy lifestyles and improve self-care skills during an illness or chronic diseases.

Wipro has reported a net profit of Rs 546 crore for the June 2008 quarter as against Rs 671.4 crore during the year-ago period. The company’s total income stands at Rs 4,807.4 crore for the reporting quarter as against Rs 3,776.8 crore for the June 2007 quarter.

On a consolidated basis, the group has reported a net profit of Rs 907.8 crore for the June 2008 quarter as compared to Rs 725.6 crore in the corresponding previous period. The group’s total income is pegged at Rs 6,087.1 crore for the quarter ended June 2008 as compared to Rs 4,303.2 crore during the year-ago period.

Wipro guided for 2Q IT services revenues of $1089m which implies growth of ~2% qoq. The guidance is muted compared to that of Infosys (~5-6% growth guidance). Management cited the environment as the reason for cautious stance in the near term and expects the second half to witness a recovery.

Wipro’s global IT services headcount declined by 725 employees in the quarter. Management indicated that hiring was slower in the quarter because they had hired ~2,000 employees towards the end of the previous quarter.

Satyam Computer Services has posted a profit after taxation of Rs 575.91 crore for the June 2008 quarter as against Rs 389.14 crore during the year-ago period.

The company’s total income has moved up from Rs 1,820.93 crore for the June 2007 quarter to Rs 2,556.52 crore for the June 2008 quarter.

Nipuna lost animation business ($8m – as per management) and some voice-based BPO business. Management indicated that this was unexpected, but it was more a quarterly aberration and they expected this to recover going forward.

Satyam guided to ~3.5-4.5% $-term revenue growth in 2Q – which is decent given the environment. FY09 guidance remained unchanged at 24-26% revenue growth yoy ($ terms). EPS guidance was revised upwards by ~8% to Rs.31.8-32.3 (32- 34% growth yoy) – due primarily to INR depreciation. Satyam expects to post an EPS of Rs 32.35 for FY09.

Biocon’s revenues for the quarter were at INR 2,639 mn showing a de-growth of 2.5% (on a like to like basis the revenues have increased by 7%), EBITDA has gone down by ~25% to INR 576 mn. Net profit for the quarter was INR 150 mn.

Biocon had no licensing income in this quarter and hence the EBITDA margins at 21.8% were significantly lower than 28.2% in Q1FY08 and 31.1% in Q4FY08. Adding to the company’s woes was MTM forex loss of Rs 255mn. Other income of INR 126 mn was at INR 14 mn for Q1FY08.

Licensing income is going to be uneven across the quarters hence in the next few quarters as the company records licensing income, the performance of the next three quarters would be better than 1QFY09. We believe lack of revenue growth in contract research services is a cause of concern. The revenues from this segment have stagnated over the last 6 quarters or so.

Colgate Palmolive (India) reported net sales of Rs 4.1bn (up 16%), EBITDA of Rs 661mn (up 7.6%) and adj. PAT of Rs 719mn (up 16%) in Q1FY09.

Pre exceptional profit growth was marginally ahead of expectations, driven by 16% revenue growth, and buoyed by 49% rise in other income. Revenues were supported by strong 11.5% volume growth, with toothpaste and toothbrushes recording 11% and 32% growth in the quarter respectively.

Overall EBITDA growth was 8%. Margins tend to be volatile on account of aggressive brand-building spends. Gross margins expanded 50bps Y/Y (up 220 bps QoQ) as cost pressures were offset by price hikes and excise benefits at the Baddi production facility.

Colgate continues to dominate across key segments – toothpastes, toothbrushes and toothpowder – with market shares of c48%, 37% and 46%, respectively

Colgate has the highest dividend yield of c5% and FCF yield of 6.5% in the India Consumer Universe and should provide downside support at these levels.