Year: 2008

IVR Prime Urban Developers has entered into joint development agreement for construction of high rise residential apartments. The 9.6 acre gated community project at Kukatpally, comprises a built up area of 1.325 million Sft and a parking area for 1200 cars. The Rs 386 crore project consists of a 2 bed room apartments of 1250 Sft, 3 bedroom apartments of 1500 Sft and 4 bedroom apartment of 1800 Sft each.

The company is also set to foray into the city of Visakhapatnam with its real estate development at Vedurvada, located near the Vizag Steel Plant. The project is named Misty Woods and is spread in the area of 130 acres. The location is surrounded by the 6000 acre Naval and Air Force Academy and upcoming SEZ of Achutapuram. Companies like Brandixs Apparel Park, HPCL, Pokarna granites, St.Gobain etc are a part of this SEZ.

Sanwaria Agro Oils – SAOL exceeded sales estimates by a wide margin & PAT estimates marginally for FY08. It achieved a turnover & PAT of Rs. 9386 mn & Rs. 543 mn respectively against an estimated turnover and PAT of Rs. 8234 mn & Rs. 501 mn respectively. EPS for FY08 stood at Rs. 6.2 [FY07: Rs. 1.4] vs. estimated EPS of Rs. 5.8. The net sales & PAT increased by 110.7% & 344% respectively over FY07. EBITDA margins improved from 5.2% in FY07 to 8.3% in FY08. PAT margins increased from 2.7% in FY07 to 5.8% in FY08. Improved realisations, better capacity utilisation & economies of scale contributed largely to the sales & profitability growth.

SAOL has expanded the existing daily crushing capacities at Mandideep & Itarsi from a total of 1,000 TPD to 2,000 TPD & refining capacity from a total of 150 TPD to 300 TPD. The commercial production of the same has commenced from January 15 2008. The full impact of this expansion is expected in FY09.

HDFC Bank has reported a net profit of Rs. 4.71bn (37 % yoy growth), ahead of our estimate of Rs 4.61bn. The key takeaways from the quarter: Strong NII growth, slower non- fund income growth, higher provisioning expenses as the bank set aside for contingencies and a lower tax rate. Sequentially the advance portfolio has declined: a function of securitization carried out during the quarter.

Non-fund income growth has been relatively slower this quarter at ~39% yoy, primarily due to decline in forex/derivative revenues. Lower tax outflow on account of tax free income booked during the quarter allowed the bank to make a higher provision on contingencies (for derivative related issues). On the positive side, sequentially there has been a decline in the provisions on NPA and standard assets (NPA provision to average loan down to 1.66% from 1.87% in Q3FY08)

Expect HDFC Bank to report a fully diluted EPS of Rs 54, post centurion bank of punjab merger with itself.