Category: Breaking Corporate India Earnings News

L&T had a solid 3QFY08 with PAT at Rs4.8bn up 40% YoY (8% above consensus estimates of Rs4.5bn and 7% below CIR estimates of Rs5.1bn). This was well supported by net sales growth of 55% YoY and a 48bps YoY margin expansion.

L&T booked Rs130bn of orders in 3QFY08, up 37% YoY, led by the Rs55bn Mumbai Airport and the Rs13bn Cairn Energy orders. L&T ended 3QFY08 with an order backlog of Rs496bn up 39% YoY. Further the company has already booked Rs65bn of orders in the first month of 4QFY08.

Shipbuilding Ready to Roll at Ennore. The BTG (boiler-turbines-generator) facility is likely to be developed in Hazira and L&T is keen to get the clearance and land from the Gujarat government now that elections are over in the state.

Bharti Shipyard:
Bharati Shipyard’s 3Q net income of Rs267m was up 51% yoy but below our expectations primarily due to: 1. lower-than-expected revenue recognition during the quarter, 2. lower subsidy recognition, and 3. operating loss in the windmill division.

EBITDA margins (ex-subsidy), the most important parameter to gauge performance in our view, remained robust at 20%, primarily driven by better utilization at the existing facilities. Subsidies came in a tad lower than expected. However, since Bharati accounts for subsidy on orders only on 70% completion, lower subsidy accounting during 3Q is purely a timing difference, likely to be corrected over the subsequent
quarters.

CCS Infotech has informed us that the company has opened the its first multi brand IT showroom CCS Zone Retail in Velachery, Chennai. The CCS Zone is located at 34, Sakhti Vijayalakshmi Nagar, 2nd street, 100 feet by pass road, Velachery, Chennai. The showroom showcases and retails their products like PCs, laptops, servers and other advanced computer & mobile related accessories.

This showroom was inaugurated by B Surya Narayanan, director, sales & marketing, South, Intel India

Tata Consultancy Services has signed an agreement with Sony Pictures Entertainment, Inc. to develop and deploy service-oriented architecture (SOA) solutions that allow Sony and its customers to better use all of its IT assets to advance their business goals. Based on industry best practices, the SOA solutions combine a set of best-of-breed technologies, tools, patterns and standards from Sony Pictures, TCS and BEA Systems to help enterprise organizations align business functions for greater flexibility and efficiency.

Sony Pictures and TCS have created a world class SOA framework that enables enterprise organizations to quickly sense and respond to changing market conditions. Centered on the deployment of reusable and network-aware applications, the SOA framework leverages key business assets within and beyond enterprise boundaries, with interoperability, independent of platforms, languages and protocols. The framework benefits enterprise organizations across various industry verticals including media & entertainment, insurance, banking, retail, financial services and manufacturing.

Dishman reported 3Q FY08 numbers with revenue up 18% YoY while margins declined 939bps to 20% due to losses at subsidiaries. As a result, recurring net income (excluding MTM gains on foreign currency debt) declined 12% to Rs216m. However, we continue to be positive on Dishman and believe that 3Q FY08 was a blip due to some one-off expenses.

1) Some sales were postponed to Q4 FY08. We note this is not unusual in contract manufacturing. 2) Losses at Dishman’s subsidiaries in Japan, the Netherlands and the Middle East – all of which are businesses in the nascent stage. Management expects these to be reversed in Q4. 3) Higher staff costs due to consolidation of the vitamins business and incentive payouts at Carbogen.

Expected Fully diluted EPS – Rs 14.44 [FY08] and Rs 19.59 [FY09].

SBI has reported a very strong quarter, combining high growth, improving profitability, and stable asset quality. It’s also a strong come-back from the previous quarter, in which growth was at the cost of profitability.

The strong P&L is a mix of a) 35% fee growth (excluding one-offs), driven by FX revenues and 19% core fees b) Rebounding margins – up about 20bps qoq (boosted by investment yields), though still low at 284bps – with some strains ahead and c) Moderate cost growth, strong trading gains, and strong asset write-backs. Exone- offs and trading gains, pre-provisioning profit growth of 48% yoy and 33%qoq.

SBI also continues to gain market share with 26% loan growth, has improved its under-pressure deposit mix over the last quarter, and importantly, maintained asset quality.

Ansal Properties & Infrastructure [ANSAL API] has entered into a tripartite agreement with Edu Infrastructure, a subsidiary of Educomp Solutions and Knowledge Tree Infrastructure – its associate company.

As per the agreement the company / its associate would construct / develop the school properties in the various residential townships of the company and lease it out to the school operators for operating and managing the schools. Edu shall have the right to take minority interest in the associate. The agreement is expected to enable the Company to leverage the experience of Educomp to emphasize the education in its residential colonies.