TCIL, GVK Power results

TCIL net profit up 32% at 6.54 crore

Gurgaon-based integrated supply chain and logistics solutions provider, Transport Corporation of India Limited (TCIL), registered 32 per cent increase in net profit at Rs 6.54 crore for the quarter ended September 30, 2006, as compared with Rs 4.95 crore in the corresponding quarter last year. Its net profit for the half-year was Rs 13.13 crore, an increase of 31 per cent, as against Rs 10.03 crore in the same period last year.

Revenues for the quarter were up 26 per cent at Rs 272.79 crore, compared with Rs 216.86 crore in the corresponding quarter last year.

During the first half of the year, the company's revenues touched Rs 517 crore, compared with Rs 415 crore last year, reflecting a growth of 24 per cent.

It expects its revenues to grow 20-25 per cent by the end of the current fiscal. TCIL's revenues for the 2005-06 financial year stood at Rs 914 crore.

Announcing the results after the company's AGM and board meet in Hyderabad on Monday, TCIL executive director Vineet Agarwal said the company was planning to invest Rs 450 crore over the next four years in expanding its fleet strength, setting up additional warehouses and acquiring pre-owned ships.

"We are planning to set up five modern warehouses "" one each at Gurgaon, Pune, Bangalore, Nagpur and Kolkata "" involving an investment of Rs 150 crore. Each of the warehouses will have a 2 lakh-sft capacity, equipped with temperature control systems and cold storage facilities that would cater to clients that are into FMCG and telecom among others," Agarwal said.

He said the company had recently completed the merger process of TCI Seaways Limited (TCISL), an unlisted group company engaged in coastal and international cargo movement. "Post merger, the performance of the erstwhile TCISL will be reported under the newly-formed shipping division of the company," Agarwal said, adding that the company would invest around Rs 100 crore in acquiring pre-owned ships. "Our plan is to acquire a ship every year," he said. It currently has a fleet of four cargo ships.

The company would invest Rs 100 crore to enhance and add higher-tonnage trucks to its fleet and Rs 50 crore in its windpower business, while the rest would go into upgrading IT systems.

According to Agarwal, of the Rs 450 crore capital expenditure, the company is planning to raise one-third through debt and another one-third through internal accruals, while the remaining Rs 125-150 crore would be raised through equity.

GVK Power posts Rs 7.9 cr net profit

Hyderabad-based GVK Power and Infrastructure Limited (GVKPIL) posted a net profit of Rs 7.9 crore for the quarter ended September 2006, on a total income of Rs 10.16 crore for the same period.

The comparative financial details of the company's second quarter performance during the previous year were not released as GVK Industries had become its subsidiary only on September 21, 2005, according to GVK Power director (finance) Isaac George.

Meanwhile, net sales for the half-year period ending September 2006 came down to Rs 5.7 crore from Rs 6.5 crore in the corresponding period last year as the Jegurupadu gas power project has been operating at low plant load factor (PLF) due to non-availability of gas, according to George.

However, the other income, coming in the form of dividend from GVK Industries, grew substantially during the second quarter of the year 2006.

The company's total income for the second quarter includes a net sales of Rs 2.9 crore and other income of Rs 7.1 crore. The other income for the half-year period rose to Rs 7.3 crore from Rs 5.1 crore in the corresponding period of the previous financial year.

Similarly, the consolidated net profit of GVKPIL for the quarter ended September 30, 2006, stood at Rs 8.5 crore on a consolidated turnover of Rs 71.88 crore.

For the half-year period, the consolidated total income of the company for the period ended September 2006, stood slightly lower at Rs 144.5 crore, compared with Rs 147.4 crore in the corresponding period last year.

Net profit for the half-year period in question increased to Rs 15.19 crore from just Rs 48 lakh in the corresponding period last year.

The board of directors of the company, which met here today, declared an interim dividend of Rs 2.50 per equity share. The earning per share (non annualised) was Rs 6.42, according to a company press release.