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The stock of Infosys crashed on Friday after revenues for the March '12 quarter showed a decline compared to the December '11 quarter. Revenues in the recently-ended quarter fell 4.8 per cent.
The company also saw a slight decline in volumes and realisations. However, a strong other income component, which was up by 52 per cent stymied a sharp fall in net profits.
Compared to the December '11 quarter, net profits for the March '12 quarter shrank 2.4 per cent.
Darkening the picture was the company's tame growth projections, citing a challenging year for the IT industry on the back of slow recovery in global markets.
Infosys guidance for the fiscal ahead was an 8 to 10 per cent growth in dollar terms. That's well below Nasscom's projection of 11 to 13 per cent for the IT industry.
Profiting from stake sale
New York Life Insurance is exiting from its insurance venture with Max India.
Buying into the insurance company is Japan's Mitsui Sumitomo Insurance Company (MSI). MSI will buy 16.63 per cent directly from New York Life and 9.35 per cent from Max India to bring its total stake to 26 per cent.
Max India will buy 9.35 per cent from New York Life Insurance.
It is this stake which it will sell to MSI. From this deal, the company stands to make a profit of about Rs 800 crore, as it forks out Rs 182 crore for purchase and receives Rs 984 crore from selling the stake.
Max India holds about 70 per cent in Max New York Life Insurance.
On the day of the announcement, the Max India stock shot up 8 per cent, and it closed the week with a 10 per cent gain.
Cut down by tariff
Just two weeks ago, Indraprastha Gas traded at a trailing price-earnings multiple of 17.6 times. By the close of last week, valuations shrank sharply to 10.7 times.
The stock nose-dived 34 per cent in a single day and was down 40 per cent for the week.
Sparking the slide was the downstream regulator, Petroleum and Natural Gas Regulatory Board's directive to the company to make a steep cut in two key gas tariffs for Delhi customers.
The regulator also ordered the company to immediately refund the excessive tariff billed to households for piped cooking gas and automobiles for compressed natural gas (CNG).
The network tariff was slashed by 63 per cent and CNG prices were cut by 59 per cent.
The losses due to the ruling are estimated to be in the range of Rs 1,000 to Rs 1,500 crore. Indraprastha has challenged the directive in the Delhi High Court, and the date for the final hearing is set for April 19.
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