SBT FY12 profit slumps to Rs 510.46 cr

hiruvananthapuram: The net profit of State Bank of Travancore (SBT), an associate of SBI, fell to Rs 510.46 crore in 2011-12 against Rs 727.73 crore in the previous year.
The bank, however, registered a growth of 6.19 per cent in operating profit at Rs 1,249 crore against Rs 1,176 crore last year.
The fall in net profit attributed to various factors like additional provisions for staff, NPA and income tax payment, the bank said.
The total income of the Kerala-based bank improved by 29 per cent to Rs 7,477 crore from Rs 5,819 crore in the previous year, SBT Managing Director P Nanda Kumaran and other senior managers told a press meet here last evening.
Elaborating on the bank's performance on various fronts, bank officials said "our overall performance has been much better compared to many other banks in the country during the period".
Total business registered a growth of 21.69 per cent at Rs 1,26,816...

DHANANJAY

- PGDM

Yes Bank eyes Rs 1.5 tn balance sheet size

Mumbai: The youngest private sector lender Yes Bank has set a target of achieving a balance sheet size of Rs 1.5 trillion by the turn of 2015. "The remaining three years will see the bank witnessing accelerated growth with the objectives to achieve a balance sheet size of Rs 1,50,000 crore (Rs 1.5 trillion), deposit base of Rs 125,000 crore and advances of Rs 100,000 crore," Yes Bank Managing Director & CEO Rana Kapoor said.
He was addressing the top management, investors and analysts on the completion of two years of its Version 2.0 vision yesterday.
This confidence comes on the back of significant momentum on Casa and retail liabilities front, he said, adding going forward, the bank will focus on branch expansion.
"We have a target of 900 branches, along with increasing headcount to 12,750 by March 2015," Kapoor said.
The bank has 356 branches across over 200 cities and more than 5,600 employees as...
DHANANJAY SINGH
PGDM 2ND SEM.

Facebook reveals revenue, profit slide ahead of IPO

The company blamed the first-quarter decline, which surprised some on Wall Street, on seasonal advertising trends.
"It was a faster slowdown than we would have guessed," said Brian Wieser, an analyst with Pivotal Research Group.
"No matter how you slice it, for a company that is perceived as growing so rapidly, to slow so much on whatever basis - sequentially or annually - it will be somewhat concerning to investors if faced with a lofty valuation," Wieser said.
Facebook is preparing to raise at least $5 billion in an initial public offering that could value the world's largest social network at up to $100 billion.
"The biggest issue is the realization that Facebook is not going to have an easy time meeting high expectations of the public market," said Jeff Sica, chief investment officer of SICA Wealth Management, which manages more than $1 billion in client assets, real estate and private equity holdings. "It will affect how people look at the IPO."
Investors are still likely to sign up in droves for the IPO; However, growth concerns may make some investors less likely to keep the stock over the long term, he added.
"I'm still encouraging people to participate in the IPO, under the acknowledgement that it could be a bumpy ride," Sica said. "There are high expectations and I hate high expectations."
The company, founded by Mark Zuckerberg in a Harvard University dorm room in 2004, surpassed 900 million monthly active users in the first quarter and said its full-time staff grew by about 1,100 employees to 3,539 in the past 12 months, according to an updated filing with the U.S. Securities and Exchange Commission on Monday.
Facebook also disclosed that it has agreed to pay Instagram $200 million if the company's recent deal to buy the photo-sharing start-up for about $1 billion does not go through.
Facebook said it paid $300 million in cash for Instagram, along with 23 million shares of Class B common stock. It said the fair value of its Class B common stock was $30.89 per share as of January 31.
Spending roughly doubled over the past 12 months, outpacing the 45 percent revenue increase during the period, it said.
Net income slid 12 percent to $205 million in the quarter, from $233 million a year earlier at the rapidly expanding company.
Facebook said its advertising business, which accounts for the bulk of its revenue, typically slows down in the first three months of the year. The rapid advertising growth may have "partially masked" such trends to date, and seasonal impacts may be more pronounced in the future, it noted.
Revenue, which totaled $1.06 billion in the three months ended March 31, declined 6 percent from the fourth quarter. It was the first quarter-on-quarter drop since at least 2010.
"It was bound to happen. You are going to see a slowdown," said Anupam Palit, an analyst at GreenCrest Capital LLC, noting that it is harder to double revenue when the base is larger.
But he also said Facebook has not worked out how to make more money in some international markets where it is growing the fastest, such as Brazil, India and the Philippines.
"They have not cracked international markets yet, while others like Google do very well internationally," Palit added.
Apart from slowing growth, Facebook is also grappling with other issues. Yahoo Inc is suing it for patent infringement even as the social networking company tries to beef up its intellectual property arsenal. On Monday, it said it would pay $550 million for hundreds of patents from Microsoft Corp.
PAYMENTS HINT
Facebook gets most of its revenue from advertising, but has a Payments business centered around Facebook Credits, a virtual currency used mainly to buy virtual goods within social games.
However, the company hinted at a possible an expansion of Facebook Credits into other areas.
Facebook gets a cut of up to 30 percent from virtual goods sales on its platform.
"In the future, if we extend Payments outside of games, the percentage fee we receive from developers may vary," the company said in its IPO filing on Monday.
Some investors expect e-commerce to be a major area of expansion for Facebook. Some industry experts said that if Facebook Credits were used for purchases of physical goods, the company's cut would have to be a lot lower than 30 percent.
(Reporting By Alistair Barr and Alexei Oreskovic; Editing by
DHANANJAY SINGH
PGDM 2ND SEM.

Citi shareholders oppose pkg for Pandit

New York: Showing frustration with large payouts to Wall Street executives, Citigroup's shareholders have voted against the bank's proposal on top level compensations, which included a USD 15 million package for its India-born CEO Vikram Pandit. The vote came at Citi's annual shareholder meeting held in Dallas on Tuesday.
While the vote is not binding, it is the first time that investors at one of America's largest banks have voted against a board's compensation plan, the New York Times said.
Only 45 per cent of shareholders supported the plan while the rest voted against the proposal on executive compensation, which included approving Pandit's USD 15 million pay package.
Since Citi does not have to act on the vote, Pandit and other top executives could still get their packages but the rejection nonetheless sends out a strong signal.
"Citi¿s board of directors takes the shareholder vote seriously, and along with senior management will consult with representative shareholders to...
DHANANJAY SINGH
PGDM2ND SEM.

HCL Tech Q3 net profit up 28.7% at Rs 602.5 crore

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HCL Tech Q3: Revenues up 2.5% QoQ

NEW DELHI: IT services firm HCL Technologies today posted a 28.7 per cent increase in net profit at Rs 602.5 crore for the quarter ended March 31, 2012.


The company had posted a net profit of Rs 468.2 crore in the January-March quarter of the last fiscal (2010-11), HCL Technologies said in a statement.


The company's revenues for the reported quarter were up 26 per cent at Rs 5,215.6 crore from Rs 4,138.2 crore in Q3 of FY11.


"A key strategic shift in the global IT industry has been the levelling of the playing field between the Indian origin service providers and the global MNCs. It is encouraging to note that HCL has continued its growth trajectory even in this environment," HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar said.


The company has announced an interim dividend of Rs 2 per equity share of the face value of Rs 2 each.


During the quarter, HCL Technologies added 1,394 people (gross), taking the total headcount to 82,464 on March 31, 2012.


Prateek Agarwal, CIO, ASK Investment Managers is of the view that when Infosys results disappointed markets, it raised a doubt on the IT sector.


"After HCL Technologies came out with Q3 results which were above expectations, it seems more of one company issue rather than a sector issue," he said.


At 10:03 AM, shares in HCL Technologies were trading at Rs 502.60, up 4.52% on the Bombay Stock Exchange. 

ASHRAF HUSSAIN

PGDM-2nd semester

meaning of finance management

Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Scope/Elements Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:

1. Dividend for shareholders- Dividend and the rate of it has to be decided.
2. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

Functions of Financial Management

1. Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has many choices like-
   1. Issue of shares and debentures
   2. Loans to be taken from banks and financial institutions
   3. Public deposits to be drawn like in form of bonds.
   Choice of factor will depend on relative merits and demerits of each source and period of financing.
4. Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways:
   1. Dividend declaration - It includes identifying the rate of dividends and other benefits like bonus.
   2. Retained profits - The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc.
7. Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc. Dk seth pgdm 2nd sem

definition of finance

1. A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets.

2. To raise money through the issuance and sale of debt and/or equity.

Dk seth pgdm