Category: Breaking Corporate India Earnings News

India’s leading EPC company Larsen and Toubro – L&T reported a rise of 32.47% in its PAT for Q2FY09 at Rs 461 crore as against Rs 348 in same quarter of last year.

Net sales stood at Rs 7682.20 crore versus Rs 5499.94 crore. The company’s E&C revenues stood at Rs 5,989.63 crore versus Rs 4,259.92 crore, Electrical & Electronics revenues stood at Rs 760.48 crore Vs Rs 671.73 crore.

Net Margins declined to 8.8% Vs 10.7% [YoY]. More details will be updated soon.

Axis Bank reported Rs4.0bn of net profit for Q2FY09. The robust earnings has been driven by better than expected NII and other income. The NII has grown by 55.2%yoy, while other income grew by 81.4%yoy. The operating profit grew 88.9%yoy to Rs8.7bn led by robust growth in the operating income.

The liability profile remained strong with CASA maintained at 40% of the deposits. While the assets saw some slippages, as the GNPA increased by Rs700mn over Q1FY09, the provision cover remained strong at 52.6%. The provisions for the quarter were higher at Rs2.6bn driven by a sharp increase in NPA provisioning. The NPA provisioning increased 110.5% to Rs2.4bn in Q2FY09.

Axis Bank is expected to report full year EPS of Rs 41.2 for FY09.

The Gaur family of Jaiprakash Associates can be best categorized as Daredevil promoters in Corporate India, since they went ahead and exercised the 10 million warrants out of the first tranche (of 50 million warrants) at Rs397 per share (more than 400% premium to current market price Rs 80). The promoters had already brought in Rs3.97 billion on 50 million warrants earlier this year, while the minimum they were required to bring in was Rs1.99 billion. The excess brought in has been adjusted against the exercise of the 10 million warrants resulting in the inflow into the company from the holding company of ~ Rs1.6 billion.

We believe that the warrant conversion is a statement by the promoters of their level of confidence in the company. The cash infusion also indicates that the promoters could, over the next 18 months, convert further warrants (40 million warrants at Rs397 convertible by July 2009 and 120 million warrants at Rs249 convertible by January 2010). Any inflow on this account should reduce market concerns on funding issues for Jaiprakash Associates.

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Aug 08 India Industrial Production slows to 1.3% significantly lower than expectations and the lowest level seen since Oct 98. While growth was expected to come in lower due to the high base (Aug 07 @ 10.9%), the 1.3% number was a shock. On a sectoral basis, mining did relatively well at 4%, while growth in manufacturing and electricity was 1.1% and 0.8%, respectively. Cumulatively, growth during Apr-Aug slowed to 4.9% vs. 10% last year.

Capital goods was up 2.3% vs. the high base of 30.8% last Aug; Consumer goods held up at 5% but aided by the flat growth last year. What is worrying is the contraction in intermediate goods at -6.2% – the lowest level seen over 13 years. Primary components of intermediate goods include
cotton yarns, filaments, pipes, auto ancillaries, LPG and natural gas, and polyester fibers, paints and varnishes.

The RBI has cut the CRR by 1.5% with effect from tomorrow. The move is likely to inject more than Rs 50,000 crore liquidity into the Indian Banking system. More details awaited.

Infosys Technologies has reported a net profit of Rs 1390 crore for the September 2008 quarter, as against Rs 1074 crore during the year-ago period.

The company’s total income has moved up from Rs 4005 crore for the September 2007 quarter to Rs 5143 crore for the September 2008 quarter.

Infosys Stock is currently trading down 11% at Rs 1,116. More details will be updated soon.

Update:
On a consolidated basis, the Infosys’ net sales for the quarter ended on Sep-30 rose 11.64 per cent to Rs 5,418 crore from Rs 4,854 crore in the Apr-Jun quarter. Net profit rose 9.98 per cent to Rs 1,432 crore against Rs 1,302 crore in the previous quarter.

Infosys Guidance:
The Management has given a guidance of mere 13 to 13.5% growth for FY-2009, downward revision from 20%.