Category: Breaking Corporate India Earnings News

Hindustan Dorr Oliver (HDO) as anticipated, reported robust numbers for the quarter ending March 2008. HDO’s Q4 FY08 sales stood at Rs.1055.5 mn as against Rs.785.2 mn in corresponding quarter previous year, up by 34%.

Operating profits for Q4 FY08 at Rs 151.7 mn, up by 98% as against Rs.76.8 mn reported earlier. It reported an OPM of 14.4% for the quarter, the highest ever reported by the company.Interest expense for the quarter went up by 405% on account of higher working capital to support the growing sales and the capex that it is incurring at its facility at Vatwa.PAT of Rs.94.8 mn for the quarter as against Rs.67.5 mn in Q4 FY07, up by 40%.

HDO’s current order backlog is greater than Rs.6.0 bn. Furthermore, its order pipeline is also strong. In the near-term, HDO is well-placed for a large order from Uranium Corp of India. The company has recently bagged Rs.2.5bn contract from Vedanta Group.

Breaking News:
Updating from the corridors of Petroleum Ministry, following is the price hike and excise hike in petroleum products

Rs 3 /L hike in diesel price.
Rs 5 /L hike in petrol price.
Govt hikes LPG prices by Rs 50 per cylinder.
Customs duty on crude cut to nil.
Govt cuts excise duty on diesel, petrol by Rs 1 /L.
Customs other petro products cut to 5% vs 10%.
Govt cuts customs duty on petrol, HSD to 2.5% from 7.5%.
Excise duty cut to cost 66.60 bln rupees.
Duty cut on oil pdts to cost govt 226 bln rupees

The net sales of ITTL declined by 17.7% to Rs 46.66 crore in Q4FY08 as against Rs 56.72 crore during Q4FY07. The net profit declined by 6.1% to Rs 9.66 crore in Q4FY08 as against Rs 10.29 crore during Q4FY07. Realization dropped by ~11.06% and raw material prices hiked because of which the company witnessed drop in PAT margin by ~280 bps on QoQ basis to 20.7%.

The company was busy in training and shifting people for commissioning the new plant because of which the company top line and bottom line declined by 17.7% and 6.1%.

On yearly basis, net sales of ITTL rose by 22% to Rs 189.5 crore in FY08 as against Rs 155.37 crore during FY07. The net profit rose by 48.9% to Rs 39.02 crore in FY08 as against Rs 26.21 crore during FY07.

The company’s order book position stands at ~Rs 154 crore with execution period of ~ 6 months. Out of which ~Rs 133 crore stands for power transformers, ~Rs 19.8 crore for distribution transformers and balance for dry type transformers.

Topline for the full year FY08 up by mere 20% compared to FY07. For 4QFY08 topline improved by 33% to 4741 mn compared to 3573 mn in 4QFY07. Increase in revenue can be attributed to better (average) realization from Rs. 2700 in FY07 to Rs. 3200 in FY08. The total area sold during FY08 increased by 37.4% compared to FY07.

Higher interest cost lead to a decline in net profit margins from 17% in 3QFY08 to 15% in 4QFY08. However on the back of better realization and increased volume, net margins for the full year increased by 200 bps from 14% in FY07 to 16% in FY08.

Sobha Developers Land bank stands at 4024 acres (230 mn sq. ft developable area) as on 31st March 08. Outstanding amount to be paid over next 2 years for the land acquired is Rs. 660 cr. Land bank is distributed as follows – Bangalore 1600 acres, Pune 170 acres, Hosur 700 acres, Cochin 500 acres, Chennai 500 acres, Gurgaon 228 acres and others 326 acres.

Average realization in 2007-08 was Rs 3,200 per sq. ft compared to Rs 2,700 sq. ft in 2006-07.

NTPC’s 4QFY08 Recurring PAT at Rs18.0bn was up 4% YoY. Reported PAT was down 23% YoY on account of exceptional foreign exchange fluctuation items of Rs4.7bn. The company does not expect similar items from FY09 on account of change in accounting.

NTPC’s FY08 Recurring PAT at Rs75.0bn up 12% YoY was 7% below CIR estimates of Rs80.6bn on account of ~ Rs6bn of extra coal costs in 4QFY08 after Coal India hiked prices by 10%. These costs will be made up in the tariffs next year as this is a pass through item.

FY08 gross generation at 200.9 bkwh up 6% YoY was below CIR estimates of 209bkwh on account of delay in capacity addition and gas supply shortages.

Out of the 22,430MW of capacity the company expects to add in the XIth plan, 1,740MW has been commissioned, 16,930MW is under construction and 3,760MW is yet to be ordered. For FY09, we expect the company to report an EPS of Rs 10.98.

Zydus Cadila – India’s 4th largest pharmaceutical group and a global healthcare provider, announced its foray into Spain with the acquisition of 100% stake in Laboratories Combix.

Laboratories Combix which has a pure generics focus provides the right fit for Zydus’ entry strategy into a market that is estimated at $ 1.7 billion and is growing at 21.5% compared to 6% for the overall pharmaceutical market in 2007. The Spanish pharmaceutical market is the 5th largest in Europe.

Established in 2006, Combix with a sales and marketing focus has a solid portfolio covering 17 molecules. Additionally, it has a range of products that are pending launch or in the pipeline. The acquisition allows Zydus to jumpstart its business and leverage strengths in product development, a high quality, cost-competitive supply chain and operational efficiency.