ITC in focus after Q1 results

ITC reported 15.6% rise in net profit to Rs 2186.39 crore on 24.54% rise in total income to Rs 9482.84 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID.

ITC said that the Scheme of Arrangement between Wimco and the company became effective on 27 June 2014 on filing of the Order of the Hon'ble High Court with the respective Registrar of Companies. The Scheme, with effect from 1 April 2013, provided for the demerger of the non engineering business of Wimco into the company. The results for Q1 June 2014 reflect the effect of the Scheme, and consequently, the figures for the previous periods are not strictly comparable, ITC said.

Dr Reddy's Laboratories, Lupin, Bank of India, Cadila Healthcare, Container Corporation of India will announce their April-June 2014 results today, 30 July 2014.

On a consolidated basis, Bharti Airtel's net profit rose 60.91% to Rs 1108.50 crore on 13.33% increase in total revenues to Rs 22962 crore in Q1 June 2014 over Q1 June 2013.

Net profit was boosted by improved operational efficiency and lower forex and derivative losses, the company said in a statement.

Consolidated mobile data revenues grew by 73.9% to Rs 2204 crore in Q1 June 2014 over Q1 June 2013, consistently contributing more than one-third of the incremental revenues.

India SA revenues registered a growth of 11.8% in Q1 June 2014 over Q1 June 2013 across segments, led by 9.9% growth in mobile India, 12.9% in telemedia services, 20.7% in Digital TV, 14.8% in airtel business (B2B) and 11.7% in South Asia.

Mobile voice realisation in India improved to 38.08 paise per minute (up 1.49 paise in Q1 June 2014 over Q1 June 2013). Mobile Data revenue at Rs 1559 crore registered a growth of 68.2% in Q1 June 2014 over Q1 June 2013 in India, uplifted by increase in data customer base and higher usage per customer. Mobile data revenues contribute to 12.4% of mobile India revenues compared with 8.2% in Q1 June 2013.

Africa revenues grew by 17.5% in Q1 June 2014 over Q1 June 2013 in rupee terms and 12.1% in constant currency terms. Data revenues stood at $102 million for the current quarter, contributing 8.8% of overall Africa revenues compared with 5.3% in Q1 June 2013. Data ARPU increased to $1.50 from $1.23 in same quarter last year, enabled by 36.7% increase in data usage per customer. Active Airtel Money customers have risen by 222% in Q1 June 2014 over Q1 June 2013 to 4.3 million.

Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 7720 crore grew by 18% in Q1 June 2014 over Q1 June 2013, with margin expanding by 1.3% to 33.6%. The resultant consolidated EBIT (earnings before interest and taxes) of Rs 3684 crore represents a in Q1 June 2014 over Q1 June 2013, growth of 36.5%, with EBIT margin improving by 2.7%.

The company's consolidated net debt has reduced to $9609 million resulting in the net debt to EBITDA ratio (LTM) improving to 2.04 times as compared to 2.20 times at the end of the previous quarter.

In a statement, Mr. Gopal Vittal, MD and CEO, India & South Asia, said: "Our revenue momentum in India has been sustained during Q1 with a growth of 11.8%. While the pace across all segments has been satisfying, Mobile data and DTH stood out with growths of 68.2% and 20.7% respectively. The industry awaits more 3G spectrum being made available even as we look forward to the implementation of policies relating to spectrum sharing and trading. These have become essential to deliver sustained broadband growth and high quality service."

In a statement, Mr. Christian de Faria, MD and CEO, Africa, said: "Telecoms are back to growth in Africa, this time spearheaded by internet and mobile money. Airtel has grown by 12.1% in constant currency terms, with exceptional performance in Mobile Data (+85.5%). Airtel Money transaction values have increased by 4.9 times to US$ 2.2 Bn in this quarter. With Niger and Tchad having obtained licences, we will now have 3G presence in all 17 countries. Our investments in licences, networks and marketing are directed towards sustaining double-digit revenue growth."

Sesa Sterlite's consolidated profit after tax (PAT) dropped 9.35% to Rs 375.56 crore on 4706.58% growth in total income to Rs 18466.88 crore in Q1 June 2014 over Q1 June 2013. The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August 2013. Therefore, the results for Q1 June 2014 are not comparable with the results of Q1 June 2013.

In a press release, Sesa Sterlite issued adjusted proforma numbers for Q1 June 2013 which are more representative of the performance during the period. Based on these adjusted figures, attributable PAT before exceptional items more than doubled to Rs 1341 crore in Q1 June 2014, from Rs 600 crore in Q1 June 2013. Revenue jumped 19% to Rs 17056 crore in Q1 June 2014 over Q1 June 2013. The increase was primarily due to Sterlite Copper which was under temporary closure in Q1 June 2013. Cairn India also witnessed increase in revenue due to higher average oil prices though offset partially by higher profit petroleum. Revenue of the aluminium business was higher on better premium, partially offset by a weaker market and lower realisations in the power business. Operations at the Australian copper mines were suspended since January 2014 and the mine has been put under care and maintenance in July 2014. Other businesses were almost flat compared to Q1 June 2013.

Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 3.5% to Rs 5670 crore in Q1 June 2014 over Q1 June 2013. While favourable oil prices, LME, premiums, and currency depreciation helped increase EBITDA, lower volumes in zinc and power, higher cost of production, higher profit petroleum, and Australian mines closure resulted in a modest EBITDA increase of 3.5%. EBITDA margin, excluding custom smelting operations of copper and zinc in India, remained strong at 47% in Q1 June 2014, higher than 45% in Q1 June 2013.

The company said it has a strong balance sheet with cash and cash equivalents of over Rs 47500 crore.

Mr. Navin Agarwal, Chairman, Sesa Sterlite said: "The outlook for the natural resources sector and for Sesa Sterlite is positive as the government is looking at formulating forward looking policies which will help harness production and grow the potential of the company's businesses. The natural gas development project pursued by Cairn India is a good example of the company's focus as a key growth area for the future."

Sesa Sterlite said that iron ore operations at its mines in Goa continue to remain suspended. The Goa state government is working towards formulation of its mining policy following the Supreme Court order of March 2014. Sesa Sterlite expects to resume mining operations at Goa in the second half of the current financial year after obtaining the necessary approvals.

Sesa Sterlite said that its alumina refinery expansion project at Lanjigarh is on hold. The company said its fresh application for environmental clearance for this project is under process and the public hearing is scheduled on 30 July 2014.

L&T's consolidated profit after tax (PAT) jumped 111% to Rs 967 crore on 10% growth in gross revenue to Rs 19123 crore in Q1 June 2014 over Q1 June 2013. The sharp rise in PAT was on the back of divestment gains, L&T said. The recurring PAT jumped 68% to Rs 771 crore in Q1 June 2014 over Q1 June 2013. The result hit the market after market hours on Monday, 28 July 2014.

International revenue during Q1 June 2014 stood at Rs 4781 crore, constituting 25% of the total revenue, L&T said.

L&T's order intake rose 11% to Rs 33408 crore in Q1 June 2014 over Q1 June 2013. The international order inflow at Rs 14754 crore in Q1 June 2014 grew more than 2 times on year-on-year (YoY) and constituted 44% of the total order inflow during the quarter. Major orders during Q1 June 2014 were secured by the infrastructure, hydrocarbon and heavy engineering segments, L&T said.

The consolidated order book of the group stood at Rs 195392 crore as on 30 June 2014, higher by 13% on YoY basis. International order book constituted 26% of the total order book, L&T said.

L&T said that notwithstanding the improved sentiments, the domestic business environment and investment cycle continued to remain subdued in Q1 June 2014. The company weathered domestic slowdown by strengthening its international presence in the select overseas markets amidst strong competitive pressures, L&T said.

L&T said that the domestic market holds large potential, awaiting impetus through policy measures and conducive investment environment. The company expects good prospects in the medium term from revival of core sectors such as infrastructure, power, minerals & metals, defence and oil & gas when the initiatives by the new government at the centre take definitive shape and rigour. The company is confident of sustaining its growth momentum by utilizing the emerging opportunities for which it has positioned itself well, L&T said.

Bharat Heavy Electricals (Bhel) after market hours on Monday, 28 July 2014, said that the company has bagged an order valued at Rs 68 crore for setting up a 10 MWp grid connected solar power plant for Karnataka Power Corporation (KPCL). The plant will be set up at Shivanasamudram, Belakavadi Village in Mandya District of Karnataka. Bhel's scope of work in the turnkey contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of the 10 MW solar power plant including grid inter-connection, operation and maintenance (O&M) of the plant for 3 years.

On a consolidated basis, IDFC reported 13.55% fall in net profit to Rs 481.74 crore on 7.63% fall in total income from operations to Rs 2122.52 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID.

Provisions and contingencies jumped 244.65% to Rs.203.93 crore in Q1 June 2014 over Q1 June 2013.

Based on standalone financials, IDFC's ratio of gross non-performing assets (NPA) to gross advances stood at 0.64% as on 30 June 2014, higher than 0.56% as on 31 March 2014 and 0.32% as on 30 June 2013. The lender's ratio of net non-performing assets (NPA) to net advances stood at 0.43% as on 30 June 2014, higher than 0.37% as on 31 March 2014 and 0.2% as on 30 June 2013.

IDFC's gross loan book fell 7% to Rs 53848 crore on 30 June 2014 from Rs 57600 crore as on 30 June 2013.

Ranbaxy Laboratories (Ranbaxy) reported a consolidated net loss of Rs 185.92 crore in Q1 June 2014, lower than net loss of Rs 524.24 crore in Q1 June 2013. Total income declined 8.16% to Rs 2451.70 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Tuesday, 29 July 2014, when the stock market was closed on account of Ramzan Id.

Branded and OTC category contributed Rs 1370 crore accounting for 58% of total sales in Q1 June 2014. Generics and others category recorded Rs 1000 crore of sales during the quarter, the company said in a statement.

In the domestic market, sales in Q1 June 2014 stood at Rs 610 crore, a growth of 12% over the corresponding period. Ranbaxy said it expects the momentum in Indian business to continue in the months ahead.

Commenting on the company's Q1 results, Arun Sawhney, CEO & MD, Ranbaxy said, We continue to work towards growing our base business with focus on emerging markets, while at the same time, restoring the business on growth trajectory in our traditional markets such as USA and Europe.

Adani Enterprises after market hours on Monday, 28 July 2014 said it has received Australian government's nod for the company's Carmichael Coal Mine and Rail Project, after having received approval from the Queensland Coordinator General on the 7 May 2014.

Adani Chairman, Gautam Adani said, "We welcome the Minister's approval of the Carmichael Mine and Rail project, which takes us another step closer to delivering our mine, rail and port development".

Mr. Adani further said, "Adani's commitment to contribute towards providing energy security to India and other Asian countries goes hand-in-hand with its commitment to providing sustainable employment opportunities for local workers and suppliers, not just through our rail infrastructure, but also our longer-term investments in ports and mining. Development of the Galilee Basin is vital for the regional and economic growth of both Queensland and Australia, and Adani's projects play an important role in realising this growth".

Adani is fully committed to adhering to the strict regulatory and environmental approval processes that apply to all of its planned projects, the company said in a statement.

Net profit of Escorts declined 41.49% to Rs 34.11 crore on 4.33% decline in net sales to Rs 1122.11 crore in Q1 June 2014 over Q1 June 2013.

Tractor volumes went sequentially up by 14.7% to 17,849 tractors in Q1 June 2014 as compared to 15,556 tractors in Q4 March 2014. Construction equipment volumes increased to 719 in Q1 June 2014 from 677 in Q4 March 2014. Auto products continued to be under pressure and quarterly income dropped to Rs 22.90 crore in Q1 June 2014 from Rs 30.60 crore in Q4 March 2014. While railway products also saw a dip in quarterly revenues from Rs 45.1 crore in Q4 March 2014 to Rs 42.70 crore Q1 June 2014, the current order book of around Rs 33 crore to be executed over the next 2 to 3 months provides a sound base for the forthcoming quarter.

Speaking on the results, Escorts' Chairman Mr. Rajan Nanda said, "The new government has brought in winds of change and new energy into the economy. We plan to aggressively address segments, which will open up with the implementation of the government's ambitious plans in infrastructure and farm mechanization. There has been a marked improvement in the sentiment around the construction industry due to the announcement of major infrastructure programs. Escorts is strengthening its product portfolio to meet the aspirations of its customer base with higher dependency on mechanization and technology. While we intend to focus on improving market share in the tractor market, we shall maintain our focus on growth in the construction equipment business."

Mr. Nikhil Nanda, Escorts' Managing Director added, "We stand today at the cusp of change as a country. The sinews of a new India will emerge from new roads, new rail networks, greater mechanization and productivity. And the tools for executing these projects lie in both farm equipment and construction equipment. At the market end, we continue to work on strengthening our image and technology leadership by understanding our customer better. Our new products have been successful in creating new market segments and tapping into a wider range of customers for our tractors, both in the farm and non-farm segment. On the manufacturing front, we have embarked on ambitious programs that focus on 'lean' management and consolidation of manufacturing facilities."

United Bank of India after market hours on Monday, 28 July 2014 said it has received Rs 300 crore from Life Insurance Corporation of India (LIC) and completed the preferential allotment of 8.45 crore equity shares of Rs 10 each at a price of Rs 35.50 per share on date. The bank received the necessary clearance from the shareholders on 18 June 2014 and the final clearance from the Ministry of Finance on 16 July 2014.

Tata Global Beverages' consolidated net profit declined 12.89% to Rs 97.23 crore on 5.42% growth in total income to Rs 1931.10 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Monday, 28 July 2014.

Tata Global Beverages' income from operations rose 5% to Rs 1913 crore in Q1 June 2014 over Q1 June 2013. Profit before exceptional items declined 4% to Rs 169 crore in Q1 June 2014 over Q1 June 2013. While branded business performed well, profitability was impacted by lower crop available for sale in the plantation business and investment in new ventures, Tata Global Beverages said in a statement.

During the quarter, Tata Global Beverages continued to focus on strengthening its brands across tea, coffee and water, the company said in a statement.

Tata Starbucks - a joint venture between Tata Global Beverages and Starbucks has now entered Chennai. There are now 51 Starbucks stores spread across Mumbai, Delhi, Bangalore, Pune and Chennai. The stores continue to witness excellent customer response, Tata Global Beverages said in a statement.

Mr. Ajoy Misra, MD and CEO of Tata Global Beverages said, We are committed to investing behind our brands, in a challenging market environment. Tata Global Beverages is leveraging key consumer trends like health & wellness and convenience to develop and market differentiated product offerings in tea, coffee and water. In addition to organic growth, innovation, category expansion and strategic alliances will drive growth for the business.

Net profit of State Bank of Mysore rose 43.18% to Rs 74.77 crore on 13% increase in total income to Rs 1867.73 crore in Q1 June 2014 over Q1 June 2013.

State Bank of Mysore's ratio of net non-performing assets (NPAs) to net advances stood at 2.72% as on 30 June 2014, compared with 3.29% as on 31 March 2014 and 3.43% as on 30 June 2013.

The bank's ratio of gross NPAs to gross advances stood at 5.13% as on 30 June 2014, compared with 5.54% as on 31 March 2014 and 5.61% as on 30 June 2013.

Provisions and contingencies fell 4% to Rs 197.92 crore in Q1 June 2014 over Q1 June 2013.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.16% as on 30 June 2014, compared with 11.08% as on 31 March 2014 and 11.49% as on 30 June 2013.

Government of India holds 90% stake in State Bank of Mysore (as on 30 June 2014).

Mahindra Holidays & Resorts India's (MHRIL) net profit fell 3% to Rs 20.40 crore on 3% rise in total income to Rs 191 crore in Q1 June 2014 over Q1 June 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) rose 19% to Rs 41 crore in Q1 June 2014 over Q1 June 2013.

Commenting on the results, Arun K. Nanda, Chairman, MHRIL said, "The lower number of members acquired in the quarter is on account of certain streamlining initiatives that have been undertaken in the area of member acquisition. In the second quarter a major initiative of the Happy Family Referral Program was launched. This should improve member acquisition and at lower costs of acquisition."

Vasant Krishnan, Chief Financial Officer, MHRIL, said, "The Company has undertaken a rigorous review of its processes and cost structures. These are ongoing and should start to yield results going forward."

On a consolidated basis, Praj Industries' net profit fell 19.4% to Rs 2.49 crore on 27.9% increase in net sales to Rs 221.27 crore in Q1 June 2014 over Q1 June 2013.

"In the face the continuing challenges in the operating environment, Praj has displayed a 28% increase in turnover. The operating margin is higher when compared to corresponding quarter. We see some green-shoots in the Indian economy. Any change in the investment cycle will bode well for the business," said Gajanan Nabar, CEO & MD, Praj Industries.

Meanwhile, the board of Praj Industries has re-appointed Gajanan Nabar, as CEO & MD for a period of three years commencing from 1 August 2014 till 31 July 2017.

Lanco Industries' net profit surged 266.9% to Rs 12.84 crore on 0.8% decline in net sales to Rs 216.97 crore in Q1 June 2014 over Q1 June 2013.

The company's sale from Ductile Iron Pipe (DIP) increased to 36908 MT in Q1 June 2014 as compared to 34637 MT in Q1 June 2013. Further, the coke production and power generation were higher at 31274 MT and 210 lakh units in Q1 June 2014 as against 26676 MT and 188 lakh units in Q1 June 2013.

Meanwhile, the board of Lanco Industries has approved capex plan of Rs 325 crore to set up a small dia pipe (SDP) plant of 1 lakh tonnes per annum (TPA) for sizes ranging 100mm to 300mm dia with increased capacity of blast furnace and other facilities. Further, the board has also approved the change of name of the company from Lanco Industries to Srikalahasti Pipes, subject to shareholder's approval.

The board of Finolex Industries has appointed Anil Whabi as the chief financial officer of the company, effective 11 August 2014.

Gujarat Narmada Valley Fertilizers & Chemicals reported net loss of Rs 49.90 crore in Q1 June 2014 as against net profit of Rs 25.33 crore in Q1 June 2013. Net sales rose 5.65% to Rs 1013.23 crore in Q1 June 2014 over Q1 June 2013.

Akzo Nobel India turns ex-dividend today, 30 July 2014, for dividend of Rs 75 per share for the year ended 31 March 2014. On 16 May 2014, Akzo Nobel India had declared dividend of Rs 15 per share and special dividend of Rs 60 per share for the year ended 31 March 2014.

Amara Raja Batteries turns ex-dividend today, 30 July 2014, for dividend of Rs 3.23 per share for the year ended 31 March 2014.

Ambuja Cements turns ex-dividend today, 30 July 2014, for interim dividend of Rs 1.80 per share for the year ending 31 December 2014.

Crompton Greaves turns ex-dividend today, 30 July 2014, for final dividend of Rs 0.40 per share for the year ended 31 March 2014.

Lakshmi Machine Works turns ex-dividend today, 30 July 2014, for dividend of Rs 30 per share for the year ended 31 March 2014.

Tata Communications turns ex-dividend today, 30 July 2014, for dividend of Rs 4.50 per share for the year ended 31 March 2014.

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