Category: Breaking Corporate India Earnings News

Punjab National Bank’s total business grew by 21% to Rs2860 bn on the back of 19% growth in deposits and 24% growth in advances, sequentially deposits grew by 9.1% and advances grew by 18%.

PNB’s reported NIM reduced by 41 basis points to 3.66% from 4.07% in 4QFY07 mainly due to deposits cost pressure, though the bank managed to hold the reduction in NIM by increasing credit-deposit ratio by 272 bps and increasing exposure to SME and retail sectors. Core operating performance was much better with other income and reduced operating expenses [33% (Y-o-Y) drop in employees’ expenses] led to 2.3 times jump in bottomline.

In percentage terms, GNPA and NNPA decreased to 2.7% and 0.6% from 3.4% and 0.8% respectively. EPS for FY08 was at Rs 65. The bank is expected to take significant hit on bottomline the current year due to NPAs, Agricultural Loans and Inflationary pressure.

Wire & Wireless India (WWIL) recorded revenues of Rs755 mn during Q4FY08, representing a top line growth of 7.4% QoQ and 13.8% YoY. The growth was primarily led by 30% QoQ increase in carriage revenue from Rs264 mn in Q3FY08 to Rs355 mn in Q4FY08.

Digital subscription revenue also grew significantly by 66.2% QoQ from Rs45 mn to Rs75 mn. Digital revenue growth was attributed to ARPU expansion which grew to Rs95 per month during quarter (~36% YoY growth).

The company’s OPM improved by 108 bps during the quarter, led by a sharp 490 bps improvement in cost of goods and services. OPM stood at -3.4% during Q4FY08, compared to -24.9% in Q4FY07. The company reported a net loss of Rs 75.4 crore. We personally think that the management of Wire & Wireless India is extremely weak with constant exodus of folks at the top management.

We are presenting the Month Over Month IIP – Index of Industrial Production, the barometer for the health of the Indian economy. The bar chart below shows IIP from May-07 to April-08.
The following graph shows the contribution of each of the sectors to IIP – Manufacturing, Mining and Electricity between May-07 and April-08.

McNally Bharat’s 4Q FY08 sales rose 20.3% yoy, to Rs2.06bn, 18.9%. Sales were under pressure due to some execution delays and to the proportionately greater share in the order book of sectors like steel, where the average execution cycle is longer.

The EBITDA was Rs174m, vaulting 221.5% yoy. The EBITDA margin expanded 528bps yoy, to 8.4%, against the expected 365-bp expansion. The margin expansion mainly stemmed from the lower base and the non-materialization of the anticipated (when bidding) cost pressures. The bottom line for the year grew 47.7% yoy, to Rs96m. The higher EBITDA margin and lower interest chiefly led to the robust bottom line even as the top line came under pressure.

The company is expected to post a 22% topline growth over FY 2010.

Godawari Power and Ispat Ltd (GPIL) in Q4 FY08 reported revenue of Rs2.6bn, a growth of 139.0% yoy on account on a rise in production and improved realization. On qoq basis, it registered a 21.1% growth on the back of lower ferro manganese and sponge iron sales. Sponge iron, billets and ferro manganese realizations on qoq basis rose 13.2%, 11.7% and 13.2% respectively.

For the full year, standalone revenue for the company registered a growth of 87.6%yoy to Rs8.3bn. The growth in revenue was account of a rise in production of sponge iron and billets. GPIL increased its sponge iron capacity to 0.5mtpa from 0.2mtpa, billet making to 0.4mtpa from 0.25mtpa and wire rod facility to 120,000tpa from 41,600tpa during the year. The new capacities are expected to show results from FY09.

OPM in Q4 FY08 expanded by 100bps to 18.6% from 17.6% witnessed in the same period last year. The company witnessed a bottomline growth of 139.9% yoy to Rs288.3mn in Q4FY08 from last year’s Rs120.2mn. Capacity additions of the sponge iron and billet making capacity has been completely ooperatinla during the quarter and will lead to robust volume growth for the company.

Equity Research has detailed coverage on the Godawari Power and Ispat.

The last date to file first installment of Advanced Tax for FY2009, was June-15th. We have obtained Advance Tax figures for SENSEX heavy weights.

• SAIL paid an Advanced Tax of Rs 457 crore against Rs 454 crore year ago
• ICICI Bank has paid Rs 340 crore Vs Rs 250 crore a year ago
• SBI has paid Rs 663 crore Vs Rs 503 crore a year ago
• IDBI Bank has paid mere Rs 10 crore Vs Rs 7 crore a year ago
• Reliance Industries paid Rs 340 cr Vs 295 cr a year ago
• Bajaj Auto paid Rs 50 cr Vs Rs 60 cr a year ago
• HDFC’s Advance Tax shot up by 40% to Rs 140 cr Vs Rs 95 cr
• Tata Motors paid Rs 30 cr and Ambuja Cement Rs 100 cr

Keep checking we will update as more corporates file their advance tax numbers with us 🙂

So far their is no dip showing any signs of potential slowdown. However, what’s bothering investors is how will the government tackle likely double digit inflation ?