Category: Breaking Corporate India Earnings News

Sterlite Optical Technologies (SOTL), an integrated manufacturer of optical fibres and telecom cables, has enhanced its Sterlite Optical FTTH (fiber-to-the-home) concept in India with the introduction of six new products. The company is banking on the broadband revolution in India, and attempts to offer innovative products.

Sterlite Optical Technologies’ net profit fell 13.70% to Rs 19.32 crore in Q4 March 2007 compared to Rs 22.40 crore in Q4 March 2006. Net sales jumped 192.90% to Rs 386.27 crore (Rs 131.87 crore).

Based on the delivery schedules required by its customers, the company anticipates to complete deliveries within the next 6-8 months.

Voltamp reported a 70.1% growth in net profit to Rs 39.16 crore in FY 2007 (year ended 31 March 2007), from Rs 23.02 crore in FY 2006 (year ended 31 March 2006). Net sales rose 62.7% top Rs 404.89 crore (Rs 248.79 crore).

The current price of Rs 688 discounts its FY 2007 EPS of Rs 38.70 by a PE multiple of 17.7. Recently, the company’s board had approved capital expenditure of up to Rs 15 crore to increase installed capacity at the existing unit.

Voltamp Transformers manufactures transformers. It is a supplier to Reliance Industries, Jindal Steel, Siemens, ABB, Larsen & Toubro and Suzlon Energy. In late August 2006, Voltamp Transformers came out with a public issue comprising offer for sale by some its existing shareholders and there was no fresh issue of equity by the company. The issue was priced at Rs 345 per share, at the upper end of the Rs 295 – Rs 345 price band.

Sundaram Home Finance is a subsidiary of Sundaram Finance. A few months ago, Sundaram Finance had bought out the 25% stake held by multilateral lending agencies, FMO of Netherlands and IFC, Washington, in Sundaram Home Finance for Rs 48.52 crore.

Sundaram Finance’s net profit jumped 54.5% to Rs 22.65 crore in Q3 December 2006, from Rs 14.66 crore in Q3 December 2005. Net sales rose 41.4% to Rs 167.67 crore (Rs 118.54 crore).

Tech Mahindra’s consolidated net profit (excluding exceptional items) surged 120% to Rs 196.1 crore compared with Rs 89.1 crore in the corresponding quarter of the previous financial year. Revenue surged 108% to Rs 874.5 crore compared with Rs 421.2 crore in the fourth quarter of the previous year.

The company incurred a one-time exceptional charge towards an upfront payment of Rs 524.9 crore to a customer and reported a net loss of Rs 328.9 crore in Q4 March 2007.

For the year ended 31 March 2007 (FY 2007), Tech Mahindra’s consolidated net profit, excluding exceptional and prior period items, at Rs 612.6 crore, registered an increase of 160% over the last financial year. Its consolidated revenues grew 136% and stood at Rs 2929 crore.

We expect Tech Mahindra to join the bigger league of IT companies this year and grow higher than Infosys and Satyam.

It was the top-gainer from the ‘A’ group. Steel companies are expected to post strong results in the March 2007 quarter on the back of higher steel prices. Ispat Industries is yet to announce the date for its March 2007 quarter results.

Mahindra Gesco Developers said the FII holdings in the company has reached 27.47% of the paid-up equity capital, as on 4 May 2007.

Jindal Photo reported a 326.3% growth in net profit in Q4 March 2007 at Rs 9.55 crore (Rs 2.24 crore). Net sales rose 5.7% to Rs 110.32 crore (Rs 104.40 crore). For FY 2007 (year ended 31 March 2007), the net profit rose 41.7% to Rs 27.59 crore (Rs 19.47 crore). Net sales declined 5.4% to Rs 360.67 crore (Rs 381.25 crore). The current price of Rs 110.90 discounts its FY 2007 EPS of Rs 26.89, by a PE multiple of 4.12.

IT stocks have turned volatile in the past few days. After a solid surge to 5,150.28 on 16 April from 4,808.08 on 11 April 2007, owing to Infosys’ strong guidance for FY 2008, the BSE IT Index eased and moved between 4,954 and 5,124 up to 4 May 2007.

The rupee rose to a fresh nine-year high against the dollar on Monday, as the market tested how far the central bank would let it appreciate before intervening. By 9:14 IST, the partially convertible rupee was at 40.5450 per dollar, its highest level since May 1998, and gaining from Friday’s close of 40.8450/8600.

The rupee’s surge is a cause of concern for IT firms, as it directly impacts their revenue and profits, a lion’s share of which is accounted for by exports. At the time of announcing Q4 March 2007 results, Infosys had pointed out that its operating margins will be impacted by about 150 – 160 basis points (bps) due to the rupee’s inflation and by 300 bps on account of wage inflation. The company plans to compensate the impact through improved utilisations, lower losses in subsidiaries and scaled benefit from selling & general as well as administration expenses.

IT companies use the tool of hedging to mitigate risks associated with currency movements. TCS is said to have obtained a $1 billion hedge at a price range of Rs 43.50 – Rs 44. Infosys has a forex cover of $ 470 million. Satyam Computer has hedged a position of $ 460 million with a policy to hedge at least 50% position. Wipro has forward hedge contracts (options & futures) of $195 million at an exchange rate between Rs 44 – Rs 45.77.