Bharti Airtel, India’s top mobile phone carrier, on Wednesday reported a bigger-than-expected 28% fall in quarterly profit, hit by losses at its African operations and as costs of its new third-generation network in India weighed.
Shares in Bharti fell more than 4% after the results to their lowest level in more than a week.
India’s long-suffering telecoms sector is back on investors’ radar after companies including Bharti raised call prices recently -- the first such increase in at least two years -- after a vicious price war in the 15-player market had strained their finances.
With more than 850 million mobile connections, India is the world’s second-biggest mobile phone market after China and is adding subscribers at the fastest pace. The market, however, offers some of the world’s cheapest call rates as carriers have traditionally sacrificed profits to chase growth.
Bharti last year ventured into Africa at a time when growth on its home turf was slowing by acquiring most of the mobile African mobile operations of Kuwait’s Zain to become the world’s fifth-biggest mobile carrier by subscribers.
But high costs in Africa have kept the firm’s margins under pressure and it has yet to turn a profit there, although company officials have said the African business is improving.
The company’s overall Africa related net loss in the June quarter was at Rs302 crore.
Bharti, which spent $3.5 billion in an Indian state auction last year to buy 3G and broadband airwaves, is betting on a pick up in premium data services to boost margins in a market where voice calls account for more than 85% of the sector’s revenue.
“In India, the company’s efforts in the area of cost efficiencies have helped arrest the margin decline,” Bharti Airtel chairman Sunil Mittal said in a statement.
“Overall, 2011-12 promises to be an exciting year of transformation.”
New Delhi-based Bharti, nearly a third owned by Southeast Asia’s biggest phone firm, SingTel , said consolidated net profit fell to Rs1,215 crore ($274 million) for its fiscal first quarter ended June from Rs1,682 crore a year earlier, based on international accounting standards.
It was the sixth consecutive quarter of falling profits for the New Delhi-based firm that had 221.2 million mobile users at the end of June in 19 countries across Asia and Africa.
Revenue rose 39% to Rs16,975 crore. A Reuters poll of brokerages had expected net profit of Rs1,518 crore on revenue of Rs16,887 crore.
Monthly average revenue per user (ARPU), a key metric for telecom carriers, from Bharti’s Indian operations fell an annual 12% to Rs190 for the quarter. Africa ARPU saw a drop of 2% on year to $7.3.
Showing posts with label Quarterly Results. Show all posts
Showing posts with label Quarterly Results. Show all posts
Wednesday, August 3, 2011
Tuesday, December 9, 2008
Cognizant posts good results, but weak forecast
Technology and outsourcing services company, Cognizant Technology Solutions Corp., reported good results for the September quarter, with revenues increasing by 7.2% compared with the previous three months, and operating profit rising by as much as 19.2%.
The growth in profit was aided by a favourable foreign exchange movement and sharp increase in employee utilization. But that doesn’t take away from the fact that underlying business growth has also been decent. Much has been said about the company’s high exposure (46%) to banking and financial services, but this segment continues to grow at a rate that’s higher than the company average.
But the good news stops with the September quarter results. The guidance for the December quarter, in fact, has been lowered.
Based on the forecast three months ago, the company had estimated revenues of $723 million (Rs3,449 crore today) in the September quarter and $758.5 million in the December quarter.
While it easily beat its guidance for the September quarter by reporting revenues of $734.7 million, the target for the December quarter has been lowered to $746.7 million.
The management told analysts in a conference call that “we want to maintain some caution on expectations for growth next quarter”.
While the current economic environment is the main reason for caution, the company is also facing other headwinds such as adverse currency movements relating to revenues it earns in Europe. Because of the sharp fall of European currencies, revenues from this region get impacted when converted into dollars, the functional currency for the US-headquartered company.
Still, some analysts tracking the firm are worried about the low growth guidance for the December quarter. The forecast assumes year-on-year revenue growth rate of just 24.4%, the lowest since the second quarter of fiscal year 2001-02, or the worst since the technology bust.
The company has also said clients’ budget-making process should get postponed by two-three months, and the pick-up in spending it normally sees during the December quarter is not expected to happen this time around.
Some analysts have lowered forecasts for the next year based on these statements and the negative news on the economic environment. They are now talking of a revenue growth rate of about 15% for next year. Bank of America Securities, for instance, has lowered revenue growth estimate for 2009 to 15.8%, from 25.8% earlier.
In the past few years, Cognizant has been growing at a rate that’s about 10 percentage points higher than the industry. Even this year, while the industry is expected to grow by about 20%, Cognizant is all set to achieve a growth of 32%.
The moot question is if Cognizant grows at just 15% next year, as some US analysts are now predicting, how low could other Indian IT players go?
The growth in profit was aided by a favourable foreign exchange movement and sharp increase in employee utilization. But that doesn’t take away from the fact that underlying business growth has also been decent. Much has been said about the company’s high exposure (46%) to banking and financial services, but this segment continues to grow at a rate that’s higher than the company average.
But the good news stops with the September quarter results. The guidance for the December quarter, in fact, has been lowered.
Based on the forecast three months ago, the company had estimated revenues of $723 million (Rs3,449 crore today) in the September quarter and $758.5 million in the December quarter.
While it easily beat its guidance for the September quarter by reporting revenues of $734.7 million, the target for the December quarter has been lowered to $746.7 million.
The management told analysts in a conference call that “we want to maintain some caution on expectations for growth next quarter”.
While the current economic environment is the main reason for caution, the company is also facing other headwinds such as adverse currency movements relating to revenues it earns in Europe. Because of the sharp fall of European currencies, revenues from this region get impacted when converted into dollars, the functional currency for the US-headquartered company.
Still, some analysts tracking the firm are worried about the low growth guidance for the December quarter. The forecast assumes year-on-year revenue growth rate of just 24.4%, the lowest since the second quarter of fiscal year 2001-02, or the worst since the technology bust.
The company has also said clients’ budget-making process should get postponed by two-three months, and the pick-up in spending it normally sees during the December quarter is not expected to happen this time around.
Some analysts have lowered forecasts for the next year based on these statements and the negative news on the economic environment. They are now talking of a revenue growth rate of about 15% for next year. Bank of America Securities, for instance, has lowered revenue growth estimate for 2009 to 15.8%, from 25.8% earlier.
In the past few years, Cognizant has been growing at a rate that’s about 10 percentage points higher than the industry. Even this year, while the industry is expected to grow by about 20%, Cognizant is all set to achieve a growth of 32%.
The moot question is if Cognizant grows at just 15% next year, as some US analysts are now predicting, how low could other Indian IT players go?
Wednesday, October 29, 2008
RELIANCE INDUSTRIES LIMITED(FINANCIAL RESULTS – Q2, 2008-09)
Reliance Industries (RIL) came out with a stronger than expected results for thequarter ended September 2008 with topline rising by 40% and bottomline increasingby 7%. The refining margins of the company was lower at USD13.4/barrel forSeptember 2008 quarter compared to USD 13.6/barrel in September 2007 quarterand USD 15.7/barrel in June 2008 quarter. The operating margins fell by 350 bps.Commenting on the results, Mukesh D. Ambani, CMD, Reliance Industries said: "Ithas been an exciting quarter at Reliance Industries. We have started production ofoil from the KG basin and soon will emerge as key hydrocarbons major. AtReliance, we are at the final leg of capital expenditure in our key businesses andwill see cash flows from these investments in the following quarters. Leadingeconomies across the globe are passing through some unprecedented times. Ourbusinesses are gearing to meet these emerging challenges."During the quarter ended September 30, 2008, Reliance chemicals , ReliancePolyolefins, Reliance Energy and Project Development, Reliance Polymers (India),Reliance Universal Enterprises, Reliance Global Energy Services (Singapore),Reliance One Enterprises and Reliance Aromatics and Petrochemicals havebecome subsidiaries of the Company.
STANDALONE QUARTERLY RESULTS
For the quarter ended September 2008, the sales of the company grew 40%to Rs 44787 crore. Operating margins fell by 350 basis points to 14.5%leading to a 12% growth in the operating profits at Rs 6474 crore.The average crude prices of Brent, WTI, and Dubai for three months periodended September 2008 were US$ 117.98/bbl, US$ 116.87/bbl and US$113.47/bbl as against US$ 74.68/bbl, US$ 75.37/bbl and US$ 69.97/bbl for thecorresponding previous quarter.Other income for the quarter declined 10% to Rs 151 crore leading the growthin PBDIT at 11% to Rs 6625 crore. Interest costs jumped 70% to Rs 437 croreand depreciation increased 12% to Rs 1264 crore. The PBT of the companyraised 8% to Rs 4924 crore. Considering a marginal increase in effective taxrate the resultant PAT was 7% higher at Rs 4122 crore
STANDALONE QUARTERLY RESULTS
For the quarter ended September 2008, the sales of the company grew 40%to Rs 44787 crore. Operating margins fell by 350 basis points to 14.5%leading to a 12% growth in the operating profits at Rs 6474 crore.The average crude prices of Brent, WTI, and Dubai for three months periodended September 2008 were US$ 117.98/bbl, US$ 116.87/bbl and US$113.47/bbl as against US$ 74.68/bbl, US$ 75.37/bbl and US$ 69.97/bbl for thecorresponding previous quarter.Other income for the quarter declined 10% to Rs 151 crore leading the growthin PBDIT at 11% to Rs 6625 crore. Interest costs jumped 70% to Rs 437 croreand depreciation increased 12% to Rs 1264 crore. The PBT of the companyraised 8% to Rs 4924 crore. Considering a marginal increase in effective taxrate the resultant PAT was 7% higher at Rs 4122 crore
BAJAJ AUTO LIMITED (FINANCIAL RESULTS – Q2, 2008-09)
BAL is the second largest 2-wheeler player in India. The new BAL represents themanufacturing business of the erstwhile BAL post the demerger under a Scheme ofArrangement. The strategic business undertaking consisting of wind farm andfinancial services business has been vested with Bajaj Finserv Limited (BFS) whileall the businesses and all properties, assets, investments and liabilities of erstwhileBAL, other than the manufacturing undertaking, the strategic business undertakingand part of the investments transferred to BAL and BFS, remain vested with TheBajaj Holdings & Investment Limited [(BHIL) – erstwhile Bajaj Auto Limited (BAL).The said scheme became effective with effect from 20 February 2008 (the effectivedate), but operative with retrospective effect from 1 April 2007 (the appointed date).Pursuant to the Scheme, shares were allotted to the shareholders of erstwhile BALon 3 April 2008 and the new shares got listed in BSE and NSE on 26 May 2008
PERFORMANCE
In the quarter ended Sept ’08, the company’s total operating income grew by8% to Rs 2548.43 crore owing to its net sales. Its net sales grew by 9% to Rs2450.73 crore driven by low sales volume growth. Out of this, its exportssurged by robust 44% to Rs 744 crore. Its other operating income declined by17% to Rs 97.70 crore.Its total sales volume grew by meager 4% to 640042 units on back of flat 3wheeler sales volume and marginal improvement in 2 wheeler sales volume.Its 2 wheeler sales volume, that contributes close to 88% to total salesvolume, grew by 5% to 565098 units. Out of this, its motorcycle sales volumethat represents 99% of 2 wheeler sales volume, increased by 6% to 561477units. Its 3 wheeler sales volume were flat at 74944 units, up by only 63 units.Its total exports grew by 31% to 206930 units. Its contribution to the total salesvolume has drastically increased by 600 bps to 32%.Its operating profit margin (OPM) declined notably by 270 bps to 13.5% owingto increase in raw material cost and purchase of traded goods. Thus itsoperating profit reduced by 10% to Rs 343.86 crore. Its raw material cost, as% to sales net stock adjusted, rose by 240 bps to 72%. Also its purchase oftraded goods rose by 60 bps to 4%. Its other expenditure rose by 20 bps to9%. Its staff cost declined by 20 bps to 3%
On the non operating front, its other income slipped by 15% to Rs 22.10 crore.Further its interest cost increased by whopping 332% to Rs 5.87 crore.However decline in its depreciation cost by 33% to Rs 33.08 crore partiallyarrested the degrowth in the profit levels. Its PBT before EO reduced by 9% toRs 327.01 crore. It registered EO expense of Rs 61.10 crore representingVRS compensation for the workers at Akrudi plant in quarter ended Sept ’08against nil in quarter ended Sept ’07. In the current fiscal, the company hasdecided to recognize expenditure such as VRS over an appropriate period incompliance with provisions of AS – 15 Employee benefits in line with specialtransition provision option (which allows such expenses to be deferred forrecognition over payback period but not exceeding 1st Apr 10). Thus it pulleddown the PBT after EO notably by 26% to Rs 265.91 crore. Its tax provisionslipped by 32% to Rs 81 crore owing to both low profit base and decline ineffective tax rate by 300 bps to 30%. Its net profit declined by 23% to Rs184.91 crore.
PERFORMANCE
In the quarter ended Sept ’08, the company’s total operating income grew by8% to Rs 2548.43 crore owing to its net sales. Its net sales grew by 9% to Rs2450.73 crore driven by low sales volume growth. Out of this, its exportssurged by robust 44% to Rs 744 crore. Its other operating income declined by17% to Rs 97.70 crore.Its total sales volume grew by meager 4% to 640042 units on back of flat 3wheeler sales volume and marginal improvement in 2 wheeler sales volume.Its 2 wheeler sales volume, that contributes close to 88% to total salesvolume, grew by 5% to 565098 units. Out of this, its motorcycle sales volumethat represents 99% of 2 wheeler sales volume, increased by 6% to 561477units. Its 3 wheeler sales volume were flat at 74944 units, up by only 63 units.Its total exports grew by 31% to 206930 units. Its contribution to the total salesvolume has drastically increased by 600 bps to 32%.Its operating profit margin (OPM) declined notably by 270 bps to 13.5% owingto increase in raw material cost and purchase of traded goods. Thus itsoperating profit reduced by 10% to Rs 343.86 crore. Its raw material cost, as% to sales net stock adjusted, rose by 240 bps to 72%. Also its purchase oftraded goods rose by 60 bps to 4%. Its other expenditure rose by 20 bps to9%. Its staff cost declined by 20 bps to 3%
On the non operating front, its other income slipped by 15% to Rs 22.10 crore.Further its interest cost increased by whopping 332% to Rs 5.87 crore.However decline in its depreciation cost by 33% to Rs 33.08 crore partiallyarrested the degrowth in the profit levels. Its PBT before EO reduced by 9% toRs 327.01 crore. It registered EO expense of Rs 61.10 crore representingVRS compensation for the workers at Akrudi plant in quarter ended Sept ’08against nil in quarter ended Sept ’07. In the current fiscal, the company hasdecided to recognize expenditure such as VRS over an appropriate period incompliance with provisions of AS – 15 Employee benefits in line with specialtransition provision option (which allows such expenses to be deferred forrecognition over payback period but not exceeding 1st Apr 10). Thus it pulleddown the PBT after EO notably by 26% to Rs 265.91 crore. Its tax provisionslipped by 32% to Rs 81 crore owing to both low profit base and decline ineffective tax rate by 300 bps to 30%. Its net profit declined by 23% to Rs184.91 crore.
STERLITE INDUSTRIES (INDIA) LTD.(Result Update: Q2, 2008-09)
Highlights of Q2 performance
On consolidated basis for the quarter ended September 2008, the revenue of SterliteIndustries increased by 3% to Rs 6810.99 crore (including other operative income ofRs 217.22 crore). The OPM of the company declined by 320 bps to 27.2% on the backof sharp decline in LME prices of all the metals on one side and significant increase inpower and fuel cost on other. The overall operating profit declined by 8% to Rs1852.24 crore.The other income for the quarter surged by 42% on Y-o-Y to 402.46 crore leading to aPBIDT of Rs 2247 crore, down 2% on Y-o-Y.The interest charges for the quarter were at Rs 58.05 crore (down 10% Y-o-Y) and thedepreciation charges for the quarter declined by 19% Y-o-Y to Rs 166.65 crore. Foruniform accounting policy depreciation on new plant and machinery in aluminiumbusiness has been provided at SLM rates as against the WDV Method rates.Consequent to this, depreciation charge for the quarter ended September 2008 islower by Rs 44.33 crore. The decline in interest and depreciation charges boost thePBT before EO to Rs 2022.37 crore, flat on Y-o-Y basis.After considering the EO expenses of Rs 10 crore in Q2 FY09 relating to any possibleliability on account of guarantees given to Banks and Financial Institutions for theloans taken by other company, (against NIL in Q2 FY08), the PBT after EO stood atRs 2012.37 crore, almost flat on Y-o-Y. The provision for taxation was Rs 291.56 crore
On consolidated basis for the quarter ended September 2008, the revenue of SterliteIndustries increased by 3% to Rs 6810.99 crore (including other operative income ofRs 217.22 crore). The OPM of the company declined by 320 bps to 27.2% on the backof sharp decline in LME prices of all the metals on one side and significant increase inpower and fuel cost on other. The overall operating profit declined by 8% to Rs1852.24 crore.The other income for the quarter surged by 42% on Y-o-Y to 402.46 crore leading to aPBIDT of Rs 2247 crore, down 2% on Y-o-Y.The interest charges for the quarter were at Rs 58.05 crore (down 10% Y-o-Y) and thedepreciation charges for the quarter declined by 19% Y-o-Y to Rs 166.65 crore. Foruniform accounting policy depreciation on new plant and machinery in aluminiumbusiness has been provided at SLM rates as against the WDV Method rates.Consequent to this, depreciation charge for the quarter ended September 2008 islower by Rs 44.33 crore. The decline in interest and depreciation charges boost thePBT before EO to Rs 2022.37 crore, flat on Y-o-Y basis.After considering the EO expenses of Rs 10 crore in Q2 FY09 relating to any possibleliability on account of guarantees given to Banks and Financial Institutions for theloans taken by other company, (against NIL in Q2 FY08), the PBT after EO stood atRs 2012.37 crore, almost flat on Y-o-Y. The provision for taxation was Rs 291.56 crore
MARUTI SUZUKI INDIA LIMITED (FINANCIAL RESULTS – Q2, 2008-09)
In the quarter ended Sept ’08, Maruti Suzuki India (MSI), recorded moderate growthin its total operating income by 7% to Rs 4993.62 crore. However crash in its OPMby 480 bps lowered the operating profit by 27% to Rs 515.71 crore. The fall in itsOPM is attributed to couple of factors such as Yen appreciation, increase in royalty,increase in diesel cost, rise in employee cost due to K series plant, expandedcapacity at Manesar and R&D etc. Further, its depreciation cost surged by 88%owing to new depreciation policy which in turn worsened the profit levels. Its netprofit declined by 37% to Rs 296.12 crore.
Quarter Performance
The company’s net sales grew marginally by 6% to Rs 4806.26 crore inquarter ended Sept ’08 owing to degrowth in its sales volume. Its total salesvolume reduced by 1% to 189451 units driven by its domestic sales. Itsdomestic sales declined by 3% to 171706 units. However improvement in itsexports by 17% to 17745 units partially arrested the degrowth in its total salesvolume. Its total operating income grew by 7% to Rs 4993.62 crore.Its operating profit margin (OPM) crashed by 480 bps to 10.3% lowering itsoperating profit by 27% to Rs 515.71 crore.Its other income grew by 22% to Rs 96.04 crore. Its interest cost rose by 48%to Rs 20.77 crore. Its depreciation recorded steep hike of 88% to Rs 165.84crore owing to new depreciation policy adopted this fiscal that lowered theuseful life of assets. It’s PBT after EO declined by 38% to Rs 425.14 crore. Onaccounting its tax provision, its net profit declined by 37% to Rs 296.12 crore
Quarter Performance
The company’s net sales grew marginally by 6% to Rs 4806.26 crore inquarter ended Sept ’08 owing to degrowth in its sales volume. Its total salesvolume reduced by 1% to 189451 units driven by its domestic sales. Itsdomestic sales declined by 3% to 171706 units. However improvement in itsexports by 17% to 17745 units partially arrested the degrowth in its total salesvolume. Its total operating income grew by 7% to Rs 4993.62 crore.Its operating profit margin (OPM) crashed by 480 bps to 10.3% lowering itsoperating profit by 27% to Rs 515.71 crore.Its other income grew by 22% to Rs 96.04 crore. Its interest cost rose by 48%to Rs 20.77 crore. Its depreciation recorded steep hike of 88% to Rs 165.84crore owing to new depreciation policy adopted this fiscal that lowered theuseful life of assets. It’s PBT after EO declined by 38% to Rs 425.14 crore. Onaccounting its tax provision, its net profit declined by 37% to Rs 296.12 crore
CIPLA LTD.(Result Update: Q2, 2008-09)
Highlights of Q2 performance
For the quarter ended September’08, the net sales registered a moderate growth of23% to Rs 1354.69 crore on the back of 48% rise in the exports formulationbusiness to Rs 602.35 crore.. Operating profit margins narrowed by 660 bps to15.6% on the back of forex exchange losses of Rs 104.50 crore (as against forexgain of Rs 19.96 crore) and led operating profit fall of Rs 14% to Rs 211.01 crore.Resultantly, operating profit fell by 14% to Rs 211.01 crore.Other income for the quarter reported a dip of 23% to Rs 16.87 crore. The interestrose by 136% to Rs 5.59 crore and depreciation went up by 24% to Rs 40.61 crore,respectively, the PBT reported a fall of 21% to Rs 181.68 crore. As the effective taxrate fell by 70 bps to 16.7% resulting net profit to decline by 21% to Rs 151.43crore
For the quarter ended September’08, the net sales registered a moderate growth of23% to Rs 1354.69 crore on the back of 48% rise in the exports formulationbusiness to Rs 602.35 crore.. Operating profit margins narrowed by 660 bps to15.6% on the back of forex exchange losses of Rs 104.50 crore (as against forexgain of Rs 19.96 crore) and led operating profit fall of Rs 14% to Rs 211.01 crore.Resultantly, operating profit fell by 14% to Rs 211.01 crore.Other income for the quarter reported a dip of 23% to Rs 16.87 crore. The interestrose by 136% to Rs 5.59 crore and depreciation went up by 24% to Rs 40.61 crore,respectively, the PBT reported a fall of 21% to Rs 181.68 crore. As the effective taxrate fell by 70 bps to 16.7% resulting net profit to decline by 21% to Rs 151.43crore
Tata Power Ltd (Q2 FY09)
* Revenue growth of 45% yoy backed by sharp rise in realizations
* OPM down 580 bps yoy due to steep rise in fuel costs
* Net profit growth of 1.7% yoy not comparable due to change in accounting
policy
* Growth plans intact with funding and fuel tie-ups in place for most projects
under implementation
Revenue growth of 45% yoy backed by sharp rise in realizations
Revenues grew 45% yoy on the back of 64% yoy rise in average realizations per
unit sold (from Rs3.5 to Rs5.8); despite 11% yoy de-growth in units sold (from 3.8
BUs to 3.4 BUs). The sharp rise in realizations was due to escalation in fuel prices,
which are a pass through for Tata Power (TPWR). Sales volumes declined due to
6% yoy decline in units generated (mainly in hydro power plants). Also, up to
Q1FY09, TPWR used to purchase extra power from outside and supply to
distribution entities in the Mumbai License Area (LA) (pure pass through). This is
now being done by another licensee. To that extent, the sales volumes for the
quarter have declined as compared to Q2FY08. Revenues from Mumbai LA
comprised 85% of total revenues in Q2FY09 as against 87% in Q2FY08.
OPM down 580 bps yoy due to steep rise in fuel costs
Contraction in OPM by 580 bps was due to 1,230 bps yoy sharp rise in cost of fuel with prices of coal, gas and oil
reaching their all-time highs in July 2008. However, further erosion in margins was restricted by an aggregate 650 bps
yoy decline in cost of power purchased, staff cost and other costs.
Net profit growth of 1.7% yoy not comparable due to change in accounting policy
Profit before tax was higher by 6.6% yoy on account of 34% yoy rise in other income, despite higher depreciation and
interest expenses. Other income comprised forex gains, dividends received and profit on sale of long term investments.
The effective tax rate for the quarter was higher at 15.2% as against 11.1% in Q2FY08. As a result, net profit was
higher by only 1.7% yoy. However, the PAT is not comparable due to change in accounting policy. Regulatory
adjustments, which used to be made on an annual basis in the last quarter of the year, are made on a provisional basis
every quarter from Q1FY09 onwards.
Business update
* Progress in implementation of generation projects: Management is confident that the company’s growth plans
will not be majorly impacted by the ongoing global financial turmoil. This confidence stems from the fact that funding
and fuel tie-ups are in place for most projects under implementation and construction work is progressing as per
schedule.
o During the quarter, the first unit of the 120 MW Haldia power project was commissioned, synchronization of the
second unit with the grid was completed and the third unit is expected to be commissioned by end FY09.
o The 4,000 MW Mundra ultra mega power project (UMPP) is progressing as per schedule and the first unit will be
commissioned by September 2011.
o For the 1,050 MW Maithon power project (JV with Damodar Valley Corporation), most equipment orders are in
place and overall progress is 20%, in line with the schedule.
o The synchronization of the 250 MW Trombay Unit 8 is scheduled for November 2008.
o The 50 MW wind project at Khandke will be commissioned in Q3FY09. TPWR is developing two more wind projects
of 50.4 MW each in Gujarat and Karnataka.
o The 120 MW each Jamshedpur and Jojobera captive projects for Tata Steel are progressing as per schedule.
* Hydro power initiative in Bhutan: During the quarter, TPWR entered a partnership with the Royal government of
Bhutan to develop 114 MW hydro power and acquired 26% stake in the project. Tata Power Trading will off-take all
the power from the project for a period of 25 years.
* Foray into geothermal energy: The company has widened its presence in the renewable energy space by
investing Rs1.65bn in Geodynamics Ltd, Australia. Post acquisition, TPWR holds 10% stake in the company.
* OPM down 580 bps yoy due to steep rise in fuel costs
* Net profit growth of 1.7% yoy not comparable due to change in accounting
policy
* Growth plans intact with funding and fuel tie-ups in place for most projects
under implementation
Revenue growth of 45% yoy backed by sharp rise in realizations
Revenues grew 45% yoy on the back of 64% yoy rise in average realizations per
unit sold (from Rs3.5 to Rs5.8); despite 11% yoy de-growth in units sold (from 3.8
BUs to 3.4 BUs). The sharp rise in realizations was due to escalation in fuel prices,
which are a pass through for Tata Power (TPWR). Sales volumes declined due to
6% yoy decline in units generated (mainly in hydro power plants). Also, up to
Q1FY09, TPWR used to purchase extra power from outside and supply to
distribution entities in the Mumbai License Area (LA) (pure pass through). This is
now being done by another licensee. To that extent, the sales volumes for the
quarter have declined as compared to Q2FY08. Revenues from Mumbai LA
comprised 85% of total revenues in Q2FY09 as against 87% in Q2FY08.
OPM down 580 bps yoy due to steep rise in fuel costs
Contraction in OPM by 580 bps was due to 1,230 bps yoy sharp rise in cost of fuel with prices of coal, gas and oil
reaching their all-time highs in July 2008. However, further erosion in margins was restricted by an aggregate 650 bps
yoy decline in cost of power purchased, staff cost and other costs.
Net profit growth of 1.7% yoy not comparable due to change in accounting policy
Profit before tax was higher by 6.6% yoy on account of 34% yoy rise in other income, despite higher depreciation and
interest expenses. Other income comprised forex gains, dividends received and profit on sale of long term investments.
The effective tax rate for the quarter was higher at 15.2% as against 11.1% in Q2FY08. As a result, net profit was
higher by only 1.7% yoy. However, the PAT is not comparable due to change in accounting policy. Regulatory
adjustments, which used to be made on an annual basis in the last quarter of the year, are made on a provisional basis
every quarter from Q1FY09 onwards.
Business update
* Progress in implementation of generation projects: Management is confident that the company’s growth plans
will not be majorly impacted by the ongoing global financial turmoil. This confidence stems from the fact that funding
and fuel tie-ups are in place for most projects under implementation and construction work is progressing as per
schedule.
o During the quarter, the first unit of the 120 MW Haldia power project was commissioned, synchronization of the
second unit with the grid was completed and the third unit is expected to be commissioned by end FY09.
o The 4,000 MW Mundra ultra mega power project (UMPP) is progressing as per schedule and the first unit will be
commissioned by September 2011.
o For the 1,050 MW Maithon power project (JV with Damodar Valley Corporation), most equipment orders are in
place and overall progress is 20%, in line with the schedule.
o The synchronization of the 250 MW Trombay Unit 8 is scheduled for November 2008.
o The 50 MW wind project at Khandke will be commissioned in Q3FY09. TPWR is developing two more wind projects
of 50.4 MW each in Gujarat and Karnataka.
o The 120 MW each Jamshedpur and Jojobera captive projects for Tata Steel are progressing as per schedule.
* Hydro power initiative in Bhutan: During the quarter, TPWR entered a partnership with the Royal government of
Bhutan to develop 114 MW hydro power and acquired 26% stake in the project. Tata Power Trading will off-take all
the power from the project for a period of 25 years.
* Foray into geothermal energy: The company has widened its presence in the renewable energy space by
investing Rs1.65bn in Geodynamics Ltd, Australia. Post acquisition, TPWR holds 10% stake in the company.
Godawari Power and Ispat Ltd (Q2 FY09)
Strong realisations continue to bolster topline by 86.1% yoy
Rising raw material costs lead to a 520bps yoy drop in OPM
GPIL plans to sell higher amount of sponge iron than billets in the next two
quarters
Iron ore mining expected to start in Q3 FY09, earlier than expected
The company announces a buyback at a price not exceeding Rs135 per share
Strong realisations bolster revenue
Godawari Power and Ispat Ltd. (GPIL) reported an 86.1% yoy growth in Q1FY09 at
Rs3.3bn on the back of strong realisations. Steel prices remained strong during the
quarter, up by 60-100% yoy on various products. However, on a qoq basis, the
topline remained flat at 3.5% due to lower billet and wire rod sales. The company
increased its sales of captive power following higher returns. Sales of billets and
wire rods were 7-8% lower on a qoq basis. The company, in Q2 FY09, sold ~10MU
of power with an average realisation of Rs6.5 per unit.
Rising raw material costs lead to a 520bps yoy drop in OPM
Operating profit during the quarter rose 39.9% yoy to Rs525mn. OPM during the quarter remained under pressure due
to rising raw material costs. The raw material market remained tight leading to a jump in prices. GPIL has no captive
resources, leading to a jump in raw material prices. Iron ore and coal prices have doubled in the last one year causing a
fall of 520bps in OPM to 15.8% in Q2 FY09. On a qoq basis, OPM fell 180bps as landed costs of iron ore jumped to
Rs5,400 per ton from Rs4,500 per ton in Q1 FY09. Landed cost of coal were Rs3,000 per ton, same as that of last
quarter. Raw material costs as a % of sales rose to 77.3% in Q2 FY09 from 76% in Q1 FY09 and 69.1% in Q2 FY08.
New projects online, to be completed by Q2FY10
The company in Q1 FY09 received the approval from Ministry of Environment & Forest for Mining of Iron Ore in Ari
Dongri Mines in Chhattisgarh. Mining is expected to start from Q3 FY09, earlier than expected. The company also plans
to build an iron ore crushing plant with a capacity of 1.2mtpa, a beneficiation plant with a capacity of 0.1mtpa and a
pelletization plant with a capacity of 0.6mtpa with railway siding and other infrastructure development, at a cost of
Rs2.35bn. Execution of the plan is on schedule and is expected to start production in Q2 FY10. The company has also
decided to set up another iron ore palletisation plant with a capacity of 0.6mtpa in Orissa through a Joint Venture in the
name of Ardent Steel Ltd., in which the company will have a 75% stake.
Company announces a buyback at a price not exceeding Rs135 per share
The company has announced to buy back equity shares at a price not exceeding Rs135 per share. The aggregate
amount to be spent on buy back of the equity shares shall not exceed Rs360mn, which is 9.37 % of the paid-up capital
as on March 31st, 2008. The company will buy back minimum 3,00,000 equity shares
Outlook
GPIL has been proactively taking steps to maximize its return on capital. Due to a slowdown in the demand for the
billets, the company reduced its production and started to sell power. Owing to the global financial crisis, demand for
steel products has reduced drastically. We expect the demand to be higher from the current levels in the next two
months. Steel and steel product prices have fallen more than 30% in the Asian markets. We expect steel realisations to
fall 30% from the current levels in Q3 FY09 and remain constant for the rest of the year. The company’s captive iron ore
mine will aid in decreasing the raw material cost pressure. Despite a fall in steel realisations, the company’s OPM is
expected to expand in FY10.
At CMP of Rs75, the stock trades at P/E multiple of 1.9x and 2.0x on estimated earnings of Rs39.5 in FY09E and Rs37.5
in FY10E, respectively. We recommend a BUY with a target price Rs110 based on an EV/EBIDTA multiple of 2.5x FY10E
EBIDTA of Rs1.86bn.
Rising raw material costs lead to a 520bps yoy drop in OPM
GPIL plans to sell higher amount of sponge iron than billets in the next two
quarters
Iron ore mining expected to start in Q3 FY09, earlier than expected
The company announces a buyback at a price not exceeding Rs135 per share
Strong realisations bolster revenue
Godawari Power and Ispat Ltd. (GPIL) reported an 86.1% yoy growth in Q1FY09 at
Rs3.3bn on the back of strong realisations. Steel prices remained strong during the
quarter, up by 60-100% yoy on various products. However, on a qoq basis, the
topline remained flat at 3.5% due to lower billet and wire rod sales. The company
increased its sales of captive power following higher returns. Sales of billets and
wire rods were 7-8% lower on a qoq basis. The company, in Q2 FY09, sold ~10MU
of power with an average realisation of Rs6.5 per unit.
Rising raw material costs lead to a 520bps yoy drop in OPM
Operating profit during the quarter rose 39.9% yoy to Rs525mn. OPM during the quarter remained under pressure due
to rising raw material costs. The raw material market remained tight leading to a jump in prices. GPIL has no captive
resources, leading to a jump in raw material prices. Iron ore and coal prices have doubled in the last one year causing a
fall of 520bps in OPM to 15.8% in Q2 FY09. On a qoq basis, OPM fell 180bps as landed costs of iron ore jumped to
Rs5,400 per ton from Rs4,500 per ton in Q1 FY09. Landed cost of coal were Rs3,000 per ton, same as that of last
quarter. Raw material costs as a % of sales rose to 77.3% in Q2 FY09 from 76% in Q1 FY09 and 69.1% in Q2 FY08.
New projects online, to be completed by Q2FY10
The company in Q1 FY09 received the approval from Ministry of Environment & Forest for Mining of Iron Ore in Ari
Dongri Mines in Chhattisgarh. Mining is expected to start from Q3 FY09, earlier than expected. The company also plans
to build an iron ore crushing plant with a capacity of 1.2mtpa, a beneficiation plant with a capacity of 0.1mtpa and a
pelletization plant with a capacity of 0.6mtpa with railway siding and other infrastructure development, at a cost of
Rs2.35bn. Execution of the plan is on schedule and is expected to start production in Q2 FY10. The company has also
decided to set up another iron ore palletisation plant with a capacity of 0.6mtpa in Orissa through a Joint Venture in the
name of Ardent Steel Ltd., in which the company will have a 75% stake.
Company announces a buyback at a price not exceeding Rs135 per share
The company has announced to buy back equity shares at a price not exceeding Rs135 per share. The aggregate
amount to be spent on buy back of the equity shares shall not exceed Rs360mn, which is 9.37 % of the paid-up capital
as on March 31st, 2008. The company will buy back minimum 3,00,000 equity shares
Outlook
GPIL has been proactively taking steps to maximize its return on capital. Due to a slowdown in the demand for the
billets, the company reduced its production and started to sell power. Owing to the global financial crisis, demand for
steel products has reduced drastically. We expect the demand to be higher from the current levels in the next two
months. Steel and steel product prices have fallen more than 30% in the Asian markets. We expect steel realisations to
fall 30% from the current levels in Q3 FY09 and remain constant for the rest of the year. The company’s captive iron ore
mine will aid in decreasing the raw material cost pressure. Despite a fall in steel realisations, the company’s OPM is
expected to expand in FY10.
At CMP of Rs75, the stock trades at P/E multiple of 1.9x and 2.0x on estimated earnings of Rs39.5 in FY09E and Rs37.5
in FY10E, respectively. We recommend a BUY with a target price Rs110 based on an EV/EBIDTA multiple of 2.5x FY10E
EBIDTA of Rs1.86bn.
Thursday, October 23, 2008
Tata Consultancy Services Ltd (Q2 FY09)
Dollar revenue growth in-line despite material offshore shift; volumes surprise on upside
Growth continues to be driven by the non-Top 10 clients; Europe records strong growth
Broad-based growth across verticals; amongst services, ADM and Engineering drive growth
OPM expansion of 230 bps qoq was far above expectations; operating profit grew 18.8% qoq
Huge forex loss and higher depreciation impact net profit growth
Employee additions were strong; company confident of achieving FY09 hiring guidance
Growth continues to be driven by the non-Top 10 clients; Europe records strong growth
Broad-based growth across verticals; amongst services, ADM and Engineering drive growth
OPM expansion of 230 bps qoq was far above expectations; operating profit grew 18.8% qoq
Huge forex loss and higher depreciation impact net profit growth
Employee additions were strong; company confident of achieving FY09 hiring guidance
Friday, October 10, 2008
Infosys Q2 net rises 30 pct, beats f'cast
BANGALORE (Reuters) - Infosys Technologies, India's second-largest software services exporter, posted a 30.2 percent jump in quarterly profit, helped by a weaker rupee, beating market forecasts.
Infosys, which develops applications, designs supply chains and offers back-office services, said July-September consolidated net profit rose to 14.32 billion rupees ($291 million) from 11 billion rupees a year ago.
A Reuters poll of brokerages had estimated net profit of 13.99 billion rupees for Infosys, which has ABN AMRO, Goldman Sachs and Philips Electronics among its clients.
India's export-driven software service firms, who were used to a scorching pace of growth, have been badly hit by a slowdown in their main U.S. market and a spreading financial crisis.
Shares in Infosys, whose takeover bid for British consultancy Axon Group has been upstaged by a counter offer from a smaller Indian rival, fell 19 percent in July-September, worse than a 4.5 percent fall in the main Mumbai index.
Infosys, which develops applications, designs supply chains and offers back-office services, said July-September consolidated net profit rose to 14.32 billion rupees ($291 million) from 11 billion rupees a year ago.
A Reuters poll of brokerages had estimated net profit of 13.99 billion rupees for Infosys, which has ABN AMRO, Goldman Sachs and Philips Electronics among its clients.
India's export-driven software service firms, who were used to a scorching pace of growth, have been badly hit by a slowdown in their main U.S. market and a spreading financial crisis.
Shares in Infosys, whose takeover bid for British consultancy Axon Group has been upstaged by a counter offer from a smaller Indian rival, fell 19 percent in July-September, worse than a 4.5 percent fall in the main Mumbai index.
Sunday, July 27, 2008
MARUTI SUZUKI results update
The company recorded healthy growth of 21% to Rs 4753.58 crore in quarter endedJun ’08 backed by its net sales. Driven by 14% growth to 192584 units in its total salesvolume in quarter ended Jun ’08. Its domestic sales volume, that contributes 94% tototal sales volume, rose by 12% to 180093 units in line with the industry growth. Thedomestic sales volume was backed by its A2 segment (Alto, Wagon R. Zen, Swift) andA 3 segment (SX4, Swift Dzire). Its exports recorded healthy growth of 38% to 12491units in quarter ended Jun ’08. Also its income from operations rose by 31% to Rs22.55 crore.Its operating profit margin (OPM) slipped by notable 490 bps to 9.75% owing to thehigh raw material cost. Its market to market loss amounted to Rs 17.90 crore in quarterended Jun ’08.On the non operating front, its other income surged by robust 47% to Rs 328.78 crore.The other income includes interest/dividend income of Rs 222 crore (up by 41%) frominvestments in mutual funds and operational activities such as scrap sales of Rs 53.50crore (up by 55%). Its interest outgo rose by 12% to Rs 16.83 crore. Its depreciationcost surged by 102% to Rs 166.06 crore includes additional depreciation of Rs 61.90crore owing to the new depreciation policy. The company has adopted newdepreciation policy where in which the useful life of the assets under SLM method hasbeen shortened in quarter ended Mar ‘08. The company adopted this new depreciationpolicy on account of shorter product life cycles due to faster product refreshment andfast changing technology. However its tax provision slipped by 29% to Rs 143.68crore. Thus the downfall in its net profit was partially arrested to 7% to Rs 465.85crore
Wednesday, May 21, 2008
Tata Teleservices (Mah), Q4 net loss at Rs 20.6 cr
Tata Teleservices (Maharashtra), TTML has declared its results for the quarter ended March 2008 (Q4). The company's net sales were at Rs 455.72 crore versus Rs 439.76 crore on QoQ basis.
The company's other income was at Rs 35.47 crore versus Rs 19.74 crore on QoQ basis. Its operating profit was at Rs 114.86 crore versus Rs 108.59 crore.
The company incurred a net loss of Rs 20.6 crore versus net loss of Rs 27.4 crore on QoQ basis. Its depreciation costs stood at Rs 117.8 crore versus Rs 113.7 crore on QoQ basis. Its interest costs were Rs 52.79 crore versus Rs 41.92 crore on QoQ basis.
The company's other income was at Rs 35.47 crore versus Rs 19.74 crore on QoQ basis. Its operating profit was at Rs 114.86 crore versus Rs 108.59 crore.
The company incurred a net loss of Rs 20.6 crore versus net loss of Rs 27.4 crore on QoQ basis. Its depreciation costs stood at Rs 117.8 crore versus Rs 113.7 crore on QoQ basis. Its interest costs were Rs 52.79 crore versus Rs 41.92 crore on QoQ basis.
JK Cement Q4 PAT at Rs 59.8 cr
JK Cement has declared its results for the quarter ended March 2008 (Q4). The company's net sales were up by 5% at Rs 385.6 crore versus Rs 366.6 crore. Its OPM were at 26.6% versus 30.5%.
During the same quarter the company's PAT was down by 2.6% at Rs 59.8 crore versus Rs 61.4 crore.
The company's FY08 net sales were at Rs 1458.3 crore versus Rs 1233.3 crore. FY08 OPM were at 28.5% versus 26.7%.
Its FY08 PAT was at Rs 265 crore versus Rs 178 crore.
During the same quarter the company's PAT was down by 2.6% at Rs 59.8 crore versus Rs 61.4 crore.
The company's FY08 net sales were at Rs 1458.3 crore versus Rs 1233.3 crore. FY08 OPM were at 28.5% versus 26.7%.
Its FY08 PAT was at Rs 265 crore versus Rs 178 crore.
GMR Infra Q4 cons net profit up at Rs 50 cr
GMR Infrastructure has announced its fourth quarter results. The company's net profit was up at Rs 50 crore versus Rs 21.9 crore.
Its net sales were up at 885.3 crore from Rs 620 crore.
Its other income Rs 19.9 crore.
Its net sales were up at 885.3 crore from Rs 620 crore.
Its other income Rs 19.9 crore.
HDIL FY08 cons net profit at Rs 1383 cr
HDIL has announced its FY08 and fourth quarter results. The company's Q4 standalone net profit at Rs 708 crore versus Rs 270 crore.
Its standalone net sales were at Rs 975 crore.
FY08
Its FY08 consolidated net profit was at Rs 1383 crore.
Its FY08 nets sales were at Rs 2 380 crore.
Its standalone net sales were at Rs 975 crore.
FY08
Its FY08 consolidated net profit was at Rs 1383 crore.
Its FY08 nets sales were at Rs 2 380 crore.
Bajaj Auto Fin Q4 net profit at Rs 4.6 cr
Bajaj Auto Finance has announced its fourth quarter results. The company's net profit was down at Rs 4.6 crore from Rs 21.2 crore.
Its income was at Rs 111 crore.
Its income was at Rs 111 crore.
21st may results
Today's results :- HDIL, Thermax, Gammon Infra, Rain Commoditie, Hercules Hoists, Mah Scooters, Surya Roshni, Gabriel India, Sirpur Paper
Tuesday, May 20, 2008
Tech Mahindra Q4 loss at Rs 223 cr
Tech Mahindra has announced its Q4 numbers. It has posted loss of Rs 223 crore as against profit of Rs 196 crore. Revenues stood at Rs 990.7 crore versus Rs 911.6 crore. Margins declined at 22.4% from 23%.
Karnataka Bank Q4 PAT at Rs 60.78 cr
Karnataka Bank has declared its results for the quarter ended March 2008 (Q4). The bank's net interest income was down by 8.2% to Rs 118.29 crore from Rs 128.86 crore.
During the same quarter its PAT was up by 127% to Rs 60.78 crore from Rs 26.76 crore. The provisions were down to Rs 25.29 crore from Rs 60.78 crore. Its Q4FY08 EPS was at Rs 4.99.
The bank's FY08 EPS was at Rs 19.85.
During the same quarter its PAT was up by 127% to Rs 60.78 crore from Rs 26.76 crore. The provisions were down to Rs 25.29 crore from Rs 60.78 crore. Its Q4FY08 EPS was at Rs 4.99.
The bank's FY08 EPS was at Rs 19.85.
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