Year: 2008

Hindustan Dorr Oliver (HDO) as anticipated, reported robust numbers for the quarter ending March 2008. HDO’s Q4 FY08 sales stood at Rs.1055.5 mn as against Rs.785.2 mn in corresponding quarter previous year, up by 34%.

Operating profits for Q4 FY08 at Rs 151.7 mn, up by 98% as against Rs.76.8 mn reported earlier. It reported an OPM of 14.4% for the quarter, the highest ever reported by the company.Interest expense for the quarter went up by 405% on account of higher working capital to support the growing sales and the capex that it is incurring at its facility at Vatwa.PAT of Rs.94.8 mn for the quarter as against Rs.67.5 mn in Q4 FY07, up by 40%.

HDO’s current order backlog is greater than Rs.6.0 bn. Furthermore, its order pipeline is also strong. In the near-term, HDO is well-placed for a large order from Uranium Corp of India. The company has recently bagged Rs.2.5bn contract from Vedanta Group.

Breaking News:
Updating from the corridors of Petroleum Ministry, following is the price hike and excise hike in petroleum products

Rs 3 /L hike in diesel price.
Rs 5 /L hike in petrol price.
Govt hikes LPG prices by Rs 50 per cylinder.
Customs duty on crude cut to nil.
Govt cuts excise duty on diesel, petrol by Rs 1 /L.
Customs other petro products cut to 5% vs 10%.
Govt cuts customs duty on petrol, HSD to 2.5% from 7.5%.
Excise duty cut to cost 66.60 bln rupees.
Duty cut on oil pdts to cost govt 226 bln rupees

The net sales of ITTL declined by 17.7% to Rs 46.66 crore in Q4FY08 as against Rs 56.72 crore during Q4FY07. The net profit declined by 6.1% to Rs 9.66 crore in Q4FY08 as against Rs 10.29 crore during Q4FY07. Realization dropped by ~11.06% and raw material prices hiked because of which the company witnessed drop in PAT margin by ~280 bps on QoQ basis to 20.7%.

The company was busy in training and shifting people for commissioning the new plant because of which the company top line and bottom line declined by 17.7% and 6.1%.

On yearly basis, net sales of ITTL rose by 22% to Rs 189.5 crore in FY08 as against Rs 155.37 crore during FY07. The net profit rose by 48.9% to Rs 39.02 crore in FY08 as against Rs 26.21 crore during FY07.

The company’s order book position stands at ~Rs 154 crore with execution period of ~ 6 months. Out of which ~Rs 133 crore stands for power transformers, ~Rs 19.8 crore for distribution transformers and balance for dry type transformers.