Year: 2008

Parsvnath Developers Ltd – PDL reported F4Q08 consol results – sales up 25.5% to Rs5 bn, OPM compressed by 190 bps to 32.8%, which together resulted in 19% fall in net profits to Rs1.07 bn. Full year profits for F08 were Rs4.2 bn (up 45%), versus our estimate of Rs4.4 bn, 5% below consensus estimates.

PDL’s net debt has risen to Rs14 bn (74% net gearing) versus Rs12.8 bn (71%) in F3Q08. Receivables continue to rise – Rs12.8 bn (Rs10.8 bn in F3Q08) – implying incrementally 37% of sales (43% previous qtr).

Land bank is 211 msf (210 msf in F3Q08), area under construction moves up to 77 msf (75.8 msf in F3Q08) and pre-sales moves up to 40 msf (32.8 msf earlier). Ongoing projects include 24 msf of plotted development. The company grossed Rs50 mn in rental income in F08, which it expects to rise to Rs250-300 mn in F09.

Hindalco Industries Ltd has informed us that the Company at its meeting held on June 20, 2008, has approved the issue of Equity Shares for an amount not exceeding Rs 5000 Crores to the existing Shareholders on rights basis (“Rights Issue”) to part finance the acquisition of Novelis Inc. The Share Ratio for the Rights issue will be 1:3, i.e. one right of Re 1 each for every three equity shares of Re 1 each held by the shareholder as on the Record Date to be announced later. The price per share for the Rights Issue would be decided by the Board and announced at a later date.

Indian Inflation soared to a NEW HIGH for the week ended June-7th to 11.05% Vs 8.75%. More Details will be updated soon.

Update @ 16:00 IST:
While this week’s data incorporates the effect of the fuel price hike (auto-fuels by 10%-15% and cooking fuels by 17%), the headline was expected to be close to ~10% levels. Besides the fuel price increase, the uptrend seen in basic metals and iron-ore since the last two months continues up 20.7% and 41.6% respectively.

Primary articles were up 10.8%; manufactured products were up 9.1% while the fuel price index was up 16.25%. Of the headline 11.05% WPI number, 2.5% is attributed to primary articles, 5.1% to manufacturing and 3.5% to the fuel index.

Most Analysts are of the view that RBI will hike the repo rate ahead of July policy meeting.

The Government of India has clearly failed to control Inflation which is expected to touch double digit leaving the conservative investors [Fixed Interest Instruments] in deep pain. Here is how various brokerage houses are expecting the Indian Inflation numbers to be announced tomorrow.

ABN Amro Bank 10.5%
CARE Ratings 9.23%
CRISIL Ltd. 9.82%
Dun & Bradstreet Info. 9.10%
ICICI Bank 10.10%
IDBI Gilts Ltd. 9.68%
JPMorgan Chase Bank 9.77%
Kotak Mahindra Bank 9.77%

Along with global weakness, the above numbers shocked Traders which led to some unwinding today.

Power Grid Corporation’s revenue for the year was up 23.9% to INR 46,148 mn over FY07. While revenue from Transmission grew by 29% to 41,885 mn, Telecom revenue was up 60% to INR 1,235 mn. The company saw a steady increase of 10% in its Consultancy segment.

Net profit for the year was up 50% to INR 16,528 from INR 10,975 mn last year. In the current year, the company has commissioned projects worth INR 60,185 mn in the transmission space on which it has started to receive returns. Other income for the year was up 30% at INR 4,667 mn.

The company had its IPO in FY08 and has ~INR 8,800 mn of cash left from the issue. The company also saw increase in Open access charges by 36% to INR 527 mn. Also in FY08, the Telecom segment of the company has become PBIT positive. The company plans to invest close to INR 85,000 mn in FY09 for various transmission projects. On the Telecom front, the company intends to increase its revenues to ~50,00 mn by FY10

IRB Infrastructure’s topline for FY2008 increased by 40% yoy to Rs7.3 bn driven by 28% growth in toll collection segment (Rs3.7 bn) and 46% growth in E&C segment (Rs3.6 bn). Operating profit for the year stood at Rs4.1 bn, a yoy improvement of 47% and accordingly the operating profit margin for the year improved by a healthy 300 bps to 56%. PAT after minority interest witnessed a strong growth of 86% yoy to Rs1.1 bn against expectations of Rs996 mn.

The order book of the E&C division stood at Rs65 bn. Out of this, pure E&C order backlog is at Rs38 bn (Rs34 bn captive E&C) which is expected to be completed in next 30 months. The balance is operations & maintenance order book of Rs27 bn, which is to be executed over next 10 years.