Category: Breaking Corporate India Earnings News

Divis Labs Ltd (DLL) reported revenues of Rs2.8 bn. EBITDA margins at 41% were significantly higher and PAT was Rs 927 mn.

CRAMS and generics comprise around 50% of business. There were no one-time large orders registered this quarter. Thus, revenue line is likely to be maintained for the next few quarters.

Divis nutraceuticals plant which was commissioned in June 2008 and FY2009 will see the first year of revenues from this business.Sales is expected to grow by 48% and 40% in FY09 and FY10. Fully diluted EPS could be in the range of Rs 76 to Rs 80 for FY09.

The Edison Mission Group has withdrawn orders of 315 MW (second part of a two-phase 630 MW order) given to Suzlon Energy. This order withdrawal by Edison for 315 MW may affect near-term execution; Suzlon may however replace it by other orders in that geography.

Edison had the option of not purchasing the second part of the contract and it has exercised that option now. No explicit reasons are available for the exercise of the option by Edison. We believe Edison is a large customer of Suzlon (likely among the top 5 with Suzlon having executed (or executing) about 525 MW for this customer. This is significantly bad news for Suzlon Energy.

Voltamp’s net sales increased by 10.4% Y-o-Y to Rs.1351.4 mn in Q4FY08, largely on the back of better price realisations. EBIDTA increased to Rs.334.3 mn in Q4FY08, at 46.1% Y-o-Y growth. EBIDTA margins improved by around 606 bps YoY to 24.7%, mainly due to better price realizations, which led to substantial decrease in raw material cost as a percentage of sales (from 81.3% in Q4FY07 to 75.3% in Q4FY08).

Voltamp’s PAT during Q4FY08 increased to Rs.216.3 mn in Q4FY08. For the full year FY08, the company showed a growth in net sales of 36.9% to Rs. 5553.5 mn. Its EBITDA increased 92.1% from Rs.613.5 mn to Rs.1178.6 mn while it’s adjusted PAT increased from Rs.393.6 mn to Rs.799.0 mn, showing a growth of 103%. The EPS for the full year stood at Rs.79 as against Rs.38.9 last year, registering a growth of around 102.9% Y-o-Y.

Voltamp Transformer’s order backlog as of 8th May 2008 stood at around Rs.4485.1 mn

Canara Bank’s Interest costs (33% yoy) far exceeded the rise in interest income (18% yoy) and resulted in a 13% fall in the net interest income. Bank is getting rid of low-yield loans,and is expected to lend more aggressively in FY09, thereby earning higher interest and income. Operating expenses increased 10% yoy to Rs. 7 bn. The Bank’s employee costs declined by 4%, owing to its virtually stagnant workforce.

Non-interest income increased 14% yoy to Rs. 7.1 bn. On yearly basis, the growth was impressive at 53%. As the Bank is venturing into insurance and asset management businesses, the growth in other income is believed to be sustained. Deposits grew by 8% yoy to Rs. 1.5 tn.

Canara Bank reported a Net Profit of Rs 1565 crore for FY08 a growth of 10.1% over previous year. Fully diluted EPS for FY08 is Rs 38.

PVR’s results is simply a box office hit for the full year FY 2007-08. Sales grew of 49.7% to Rs 265 crore and Net Profit recorded a growth of 112.2% to Rs 21.6 crore resulting in an EPS of Rs 12.7.

However, for 4QFY2008, PVR reported a modest Topline growth of 32.9% yoy to Rs54.3cr (Rs40.9cr) on a standalone basis, driven by a 25% increase in Net Ticket revenues, 79% jump in Net Advertisement revenues and 31% higher F&B revenues.

PVR delivered a disappointing performance, registering a 350bp decline in standalone Operating Margins to 13% largely owing to a sharp 556bp increase in Rental costs (on account of service tax levies on lease rentals) and higher overheads to lower revenue base. The company has already made provisions for higher rentals.

PVR Operated 22 properties with 84 screens and 21,853 seats at the end of FY2008.

Emco posted a net sales growth of 36% YoY to Rs 3.4bn for Q4FY08 and 44% to Rs 9.4bn for the full fiscal. Project division revenues have picked up pace during H2FY08, contributing 30% of net sales for the fiscal. Management expects an even higher revenue share from this division in FY09, at 45%. EBITDA margins were up by 155bps during Q4FY08 to 14.2% and by 50bps for FY08 to 13.7%. Net profit saw a growth of 98% YoY for the quarter and 59% for the year.

Emco’s order book stands at Rs 11bn, which is 1.2x FY08 sales. The healthy order backlog and bright outlook for the project division indicate good revenue flows over the next two years.

Emco is trading at 10x one-year forward P/E, which is a 61% discount to peer company, ABB.