Dalal Street

For Q4FY2008, Gujarat Industries Power Co. Ltd. (GIPCL) has posted 65.7% growth in net sales to Rs. 2,850.3Mn as compared to Rs. 1,719.9Mn for the quarter ended Mar 31, 2007. Power generation has increased during the quarter by 5%, owing to higher PLF contributed by the Surat lignite power plant and Vadodara station-II. Total Income has increased from Rs. 1,755.2Mn for the quarter ended Mar 31, 2007 to Rs.2,912.8Mn for the quarter ended Mar 31, 2008.

For the full year, it clocked revenues of Rs. 9,355.5Mn from Rs. 7,955.8Mn in FY07 presenting a growth of 17.6%. Fuel Cost for the year has increased by 38.4% to Rs. 6,058.7Mn from Rs. 4,378.2 in FY07. This has been due to increase in gas prices, subsequent rise in tariff’s for the gas based plants & excellent operating performance of the power plants.

Indiabulls Properties Investment Trust (IPIT) listing on the Singapore exchange is a prime example of the worsening situation; despite the relatively small size of the issue (USD220 mn), it was barely subscribed one time, indicating a definite lack of investor interest. The response to the IPIT IPO does not augur well for other proposed listings that are larger in size, such as those of DLF Assets (~USD1.3 bn) or Unitech Office Trust (~USD700 mn).

IPIT’s listing received a poor response, reflected by valuations as it closed below issue price at 0.9 s$. Private equity now appears to be the only avenue left for Realtors to fund their projects and even this is becoming a challenge, as these investors are now demanding a higher return on their investments than before.

India’s Inflation is said to be rising the same way like SENSEX was a year ago 🙂 The wholesale price index [WPI] based inflation for the week ended May 31 rose to 8.75 per cent as compared to 8.24 per cent for the previous week. Inflation rate stood at 5.09 per cent for the corresponding week in the previous year.

During the week, in index for the primary articles group rose by 0.9 per cent while the index for manufactured products increased by 0.7 per cent. The index for the fuel group remained unchanged. [So more to come next week, taking into account the rise in fuel & gas prices] Among the food items, prices of egg, condiments and spices, urad, fruit and vegetable, mustard oil have increased.

Government has also revised inflation rate for the week ended April 5 to 7.71 per cent as compared to 7.14 per cent reported earlier. [What the fu*k ? Revision in retrospect ? It can happen only in India 😉 ]

Analysts were of the opinion that Inflation will soon kiss the double-digit mark 🙂

Garware Wall Ropes (GWRL) has reported results for Q4FY08 lower than consensus estimates, owing to sluggish growth in the cordage segment.

Net sales increased 19% YoY to Rs 1.2bn, 8% short of estimates as the revenue share of the cordage business declined to 64% against the full-year average of 73%. Export sales have also been comparatively lower, comprising 33.4% of revenue in Q4FY08 as compared to 42% in FY07 and 36% in FY06. The EBITDA margin, at 13.2%, was 100bps lower due to rising crude prices, which led to higher input costs for cordage products.

For the current year, higher execution in the geo-synthetics business is likely to offset the slowdown in weak fibers of cordage.