Reliance Capital, Q4 net profit plunges 14%
Thursday, April 30, 2009Reliance Capital has announced its audited results for the fourth quarter & year ended March 31, 2009.
The standalone results for the quarter shows net profit of Rs 331.44 crore against Rs 386.49 crore registering a dip of 14% on YoY basis, the total income stood at Rs 883.20 crore against Rs 799.29 crore registering a growth of around 10.50% on YoY basis.
The standalone results for the entire fiscal shows net profit of Rs 968.02 crore against Rs 1,025.45 crore registering a dip of 5.60% on YoY basis, the total income stood at Rs 3,017.29 crore against Rs 2,079.79 crore registering a growth of 45% on YoY basis.
The consolidated results for the quarter shows net profit of Rs 311.64 crore against Rs 365.57 crore registering a dip of 14.75% on YoY basis, the total income stood at Rs 1,579.00 crore against Rs 1,634.71 crore registering a minor dip of 3.40% on YoY basis.
The consolidated results for the entire fiscal shows net profit of Rs 1,015.67 crore Rs 1,009.06 crore registering a minor jump on YoY basis, the total income stood at Rs 6,019.43 crore against Rs 4,919.19 crore registering a growth of 22% on YoY basis.
The Board of Directors of the Company has recommended a dividend of Rs 6.50 on equity share of Rs 10 each for FY09.
Published by Webmaster @ 6:45 PM IST.
United Phosphorous Volume growth of 10-15% expected
Highlights of Conference Call:
- The Sales during the year ended March 2009 increased by 37% to Rs 4802 crore as compared to the previous year.
- The Profit before tax during the year increased by 19% to Rs 522 crore and the net profit increased by 25% to Rs 495 crore during the year under review.
- The domestic market revenue during the year ended March 2009 increased by 29% to Rs 1060 crore whereas the international market sales increased by 33% to Rs 3941 crore.
- North American market contributed 22% of the total consolidated business of the company during the year ended March 2009, whereas the Indian and the European market contributed 21% and 32% respectively. The rest of the world market contributed the remaining share.
- Of the total international sales, the sales from North American region during the year under review was Rs 1081 crore, which was 17% higher as compared to the previous year.
- The sales from Europe was Rs 1587 crore (38% higher compared to the year 2008) and the sales from the rest of the world was Rs 1273 crore during the year ended March 2009, which was 43% higher compared to the previous year.
- The domestic sales were Rs 1033 crore during the year under review increasing by 29% as compared to the previous fiscal.
- North American market contributed 22% of the total consolidated business of the company during the quarter ended March 2009, whereas the Indian and the European market contributed 14% and 42% respectively. The rest of the world market contributed the remaining share.
- Of the total international sales, the sales from North American region during the quarter under review was Rs 304 crore, which was 5% higher as compared to the previous year.
- The sales from Europe was Rs 585 crore (21% higher compared to the corresponding quarter of the previous fiscal) and the sales from the rest of the world was Rs 315 crore during the quarter ended March 2009, which was 20% higher compared to the previous year.
- The domestic sales during the 4th quarter was Rs 196 crore thus increasing by 5% as compared to the corresponding quarter of the previous fiscal.
- The outstanding borrowing as at the end of fiscal 2009 was Rs 2073 crore, thus increasing by 806 crore as compared to the previous fiscal.
- The effective increase in borrowing was due to loan to Advanta to the tune of Rs 184 crore, reprising of forex loans to the tune of Rs 261 crore and the balance for the working and the capital expenditure requirement.
- The company expects volume growth of 10-15% in the current fiscal as pricing is seen correcting. Pricing is expected to correct in the fiscal as raw material prices fall besides competitive pressure on certain molecules and products.
- The demand across U.S. and Europe is expected to be strong. In Asian market also the demand is expected to be buoyant however Latin American market is expected to be weak.
- The company has been able to rein in working capital (from 119 days to 91 days currently) and expects to improve further. Additionally, it expects most of the incremental cash flow to fund incremental working capital needs, thus retaining net debt at current levels.
- The key raw materials prices have declined significantly (by 40-90%) from their peak levels. Thus after a 15% increase in pricing during FY09 the prices are expected to correct by 5% during FY 2010.
- The tax rate is expected to increase to 17-20% during the current fiscal.
- The capital expenditure for the current fiscal is maintained at Rs 150 –200 crore for product registrations and capacity expansion.
- The company completed the Cerexagri French restructuring, however the restructuring plans of Cerexagri plant in Spain is currently on hold.
Published by Webmaster @ 11:46 AM IST.
ACC Ltd Outperforms expectations
Wednesday, April 29, 2009ACC's 1Q09 results were significantly above our estimates, as our numbers proved to be conservative in terms of cost savings and benefits from lower coal costs. ACC reported a record-high EBITDA/mt.
Is the worst behind us in the cement cycle?
The cement earnings upcycle started in FY05, driven by rising capacity utilisation (84% in FY04 rising to 94% in FY08) and strong demand (9.3% CAGR over FY05-08). While our demand outlook remains stable (7-8% growth through FY12F), we estimate the bunching of capacity addition between June 2009 and mid-2010 will reduce utilisation to 77-80%, which will probably put margins and prices under pressure.
In the past 3 years, ACC has achieved an EBITDA/mt of Rs900, vs Rs1,066 by Ambuja Cements and Rs1,087 by Ultratech Cement (Grasim’s 100% subsidiary). However, in 1Q09, ACC recorded an EBITDA/mt of Rs1,100, vs Rs1,017 by Ambuja Cements and Rs997 by Ultratech Cement.
Published by Webmaster @ 8:12 AM IST.
Bank of Baroda 4QFY09 results update
Tuesday, April 28, 2009Net interest income (NII) came largely in line with ours estimates led by above industry average loan growth and marginal improvement in margins. Other income surprised positively, led by robust fee income growth, treasury gains and recovery from written-off accounts. Low cost deposits grew by 20% yoy, but the ratio declined marginally as of March 2009. Reported asset quality largely appears stable and about Rs26.6bn (about 1.85%) loans were restructured in FY09. Another Rs16bn of loan (1.0%) applications for restructuring are pending approval.
Asset quality: Reported asset quality largely remained stable on a qoq basis. In FY09, about Rs10bn were additions to opening gross NPLs, while recovery and upgradation was Rs7.4bn and writeoffs were about Rs4bn. Gross NPLs were at 1.27% (Rs18.4bn) as of March 2009 (1.5% - Rs19.2bn in December 2008) and net NPLs are 0.31% as of March 2009 (0.37% in December 2008).
At the current price, the stock trades at 6.1x FY10F earnings and 1.0x FY10F adjusted book value
Published by Webmaster @ 8:09 AM IST.
RBI lowers growth forecast to 5.7% for FY10
Tuesday, April 21, 2009India's banking regulator Reserve Bank of India (RBI) has lowered its growth forecast for the current fiscal to 5.7%, down from 6% forecast of expansion that the bank had made three months ago.
The results of professional forecasters’ survey conducted by the the apex bank in March 2009 that suggested moderation in economic activity for FY09. The median forecast for GDP growth in the survey came down to 6.6% and 5.7% respectively for the last and current fiscals.
Further, the sectoral growth rate forecast for the agriculture sector has been revised downwards from 3% to 1.6% and for industry, from 4.9% to 4.1%. Services sector, however, bucked the trend and the forecast for the sector was revised upwards from 9% in the last survey to 9.3% in the current survey.
Published by Webmaster @ 8:40 AM IST.
Infosys Guidance - Revenue to Decline by 3-6% in USD
Wednesday, April 15, 2009Infosys Technologies has given a guidance for fiscal 2010, the revenues of the company is expected to report a decline by 6.7% to 3.1% in US dollar terms.
Infosys Technologies has announced its audited consolidated results for the quarter & year ended March 31, 2009:
In the consolidated results for the quarter ended March 31, 2009 the Group has posted a net profit after tax & minority interest rise of 29.14% to Rs 1,613 crore compared to Rs 1,249 crore for the quarter ended March 31, 2008.
Total Income has increased for the quarter by 25.76% to Rs 5887 crore from Rs 4681crore in the same quarter last year
In the consolidated results for the year ended March 31, 2009 the Group has posted a net profit after tax & minority interest rise of 28.52% to Rs 5,988 crore for the year ended March 31, 2009 as compared to Rs 4,659 crore in previous fiscal.
Total Income of the group has increased by 27.42% to Rs 22,166 crore from Rs 17,396 crore of the previous year.
Published by Webmaster @ 9:50 AM IST.
Exports to US continue shrinking
Monday, April 13, 2009Reflecting the deepening of troubles of Indian exporters, India's exports to the US dropped to lowest level in more than a year in February. The recession-hit US imported goods worth a total $1.58 billion in February, the lowest in 14-months.
Consumer spending has fallen sharply in the US due to the ongoing economic crisis, resulting in erosion of demand for most of the imported goods. Nearly all countries which export to the US like China, Taiwan and other South Asian countries, have witnessed sharp decline in exports to US.
India's average monthly exports bill had been over $2 billion a month before the start of financial crisis in September last year. Since then, however, it has been showing consistent decline and reached its lowest point of $1.58 billion in February this year.
Published by Webmaster @ 10:59 AM IST.
Feb industrial production: Momentum shows uptick
Thursday, April 09, 2009The negative IP growth was in line with the consensus forecast of a 1.3% yoy decline and our expectation of a 1.5% yoy decline. The monthly momentum rose by 0.6% mom in February, higher than the 0.2% mom rise in January. For the April-January months, IP grew 2.8% yoy versus 8.9% yoy in the same period previously.
The Capital Goods Index rose by 10.4% yoy in February versus a 8.9% yoy rise in the first 10 months of the year. The monthly momentum in capital goods rose 1.2% mom s.a. (seasonally adjusted) in February, versus a 0.5% mom decline in the previous month. The Infrastructure Index for February rose 2.2% yoy in February compared to 1.5% yoy in January. Production of
consumer goods shrunk 3% yoy, lower than the 5.9% yoy average growth in the first 10 months of the fiscal year. However, on a monthly basis, growth in the Consumer Goods Index rose 0.7% mom from a 0.3% mom fall in January.
Published by Webmaster @ 3:59 PM IST.
Reliance Communications - Justifications for the strong outperformance?
Monday, April 06, 2009Some investors have wondered about RCOM's strong outperformance recently. RCOM is currently trading at a 10-15% premium to Bharti on FY10E EV/EBITDA. In the past, this premium has reached 25% also but only when the Towerco IPO looked imminent (Jan-08) and when the market was at its peak in terms of bullish sentiment. Such premium may not be repeated again in our view.
Most of the reasons for the sharp up-move have been macro & technical rather than company specific - increased risk appetite for high leverage B/S, esp. in the underweight index names which had been beaten down. Besides, a new rule on allowing non-compliance to AS-11 comes as a relief for companies with high forex debt (which are incurring huge translation losses). However, this does not benefit RCOM's P&L as it anyway was not reporting as per AS-11 in FY09. In any case, relaxation in accounting rules does not mean there is no impact.
Published by Webmaster @ 12:59 PM IST.
FIIs pull out Rs 50K cr in FY09: SEBI
Wednesday, April 01, 2009According to the latest data compiled by Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) have pulled out nearly Rs 50,000 crore from the domestic stock market in 2008-09.
FIIs' net outflows stood at Rs 47,706.2 crore till March 30 in the current fiscal, as compared to huge inflows of Rs 53,000 crore in the previous fiscal.
However, analysts believe that FIIs are likely to resume investments in Indian equities in the later FY10 owing to higher returns as an attractive investment destination with sound fundamentals.
Published by Webmaster @ 5:47 PM IST.
