Year: 2008

Power Trading Corporation – PTC’s 4QFY08 results at Rs192mn were sharply ahead of estimates (Rs114mn) due to significantly higher than estimated other income. The traded volumes fell by 15.4% yoy to 1.2bn units during the quarter led by lack of surplus power and very low long term volumes of Tala project and Himachal Pradesh Electricity board.

Moreover, the operating margins fell to 0.4% during the quarter led by the lower traded volumes. During the quarter, PTC has acquired an 11% stake in Teesta Urja, a 1,200MW hydel power project in Sikkim. Additionally, the company’s subsidiary PTC Financial Services (PFS) has acquired equity stakes in a power exchange and in wind, bio mass and bio fuel projects in India. These investments have been funded by PTC from the QIP issue of Rs12bn completed in January 2008.

JSW Steel one of the main companies behind steel cartel in India reported a PAT for 4Q excluding SISCOL, prior period taxes and write-back of misc expenditure works out to Rs3bn (-15% yoy). 4Q PAT would have been higher excl forex translation loss of Rs930m. EBITDA was Rs7.2bn (-7% yoy) and the margin was 23.1%, lower yoy and qoq. SISCOL reported FY08 PBT of Rs660m and 21% EBITDA margin.

During 4Q coke costs jumped 89% yoy to Rs19,000/t and iron ore costs rose 98% to Rs2,300/t. Costs are slated to rise further. JSTL has tied up its coking coal at US$305/t for FY09. Iron ore hikes have not yet been finalized but are likely to be in excess of 65%. JSTL has ~25% of captive iron ore and expects ~60% captive iron ore and ~45% coking coal by 2010.

Margins are likely to be hit somewhat in 1Q FY09 as prices are being maintained at current levels for the next 2-3 months. JSTL also passed on the impact of the import duty cut on raw materials by reducing prices of HRC by Rs500/t.

Elder Pharma reported 32% YoY growth in top line in Q4FY08 on the back of strong performance of its leading brands. For full year FY08, total revenue increased by 22% YoY to Rs 5481.4 mn. The growth in revenues was mainly on account of strong performance by its leading brands like Shelcal, Chymoral, Eldervit etc.

Elder’s EBDITA margin remained stable at 20.2% during the fourth quarter ended March 2008. For full year FY08, EBDITA margin grew by 280 basis points to 20.2% as compared to 17.4% for last year.

Elder recorded 36.5% YoY growth at net profit level to Rs 204.2 mn during Q4FY08 compared to corresponding quarter last year. For FY08, net profit witnessed growth of 36.1% YoY to Rs 718 mn.