Cairn India after market hours on Thursday, 23 January 2014, reported 14% fall in consolidated profit after tax (PAT) to Rs 2884 crore on 17% growth in revenue to Rs 5000 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 10% to Rs 3555 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin fell to 71.1% in Q3 December 2013, from 75.8% in Q3 December 2012.
PAT declined 15% to Rs 2884 crore on 8% growth in revenue to Rs 5000 crore in Q3 December 2013 over Q2 September 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 2% to Rs 3555 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin fell to 71.1% in Q3 December 2013, from 77.8% in Q2 September 2013.
Cairn India said that the 8% growth in revenue on sequential basis in Q3 December 2013 was driven by increased volumes. The company said EBITDA fell 2% on sequential basis in Q3 December 2013 as the contribution from higher revenues was primarily offset by increased exploration costs and one time charge on account of adoption of fair value methodology of stock option valuation. The company said that the 15% decline in PAT on sequential basis in Q3 December 2013 was primarily due to a foreign exchange loss on the dollar deposits with the strengthening of the rupee against the dollar.
With regard to future business outlook, Cairn India said that the production remains on track to meet the fiscal year exit guidance of over 225,000 boepd from all producing assets, supported by continued infill drilling. Cairn India said it targets to commence implementation of Polymer Flood EOR programme by Q4 FY 2015 for enhancing ultimate recovery from the Mangala field. The company further said that it is actively working on plans to extend the EOR programme to other fields in future. The company said it remains focussed on developing and enhancing production from the already discovered and new fields through the use of advanced technology in the low permeability reservoirs.
Cairn India said it remains on track to drill out 50% of gross risked prospective resources in Rajasthan by fiscal year end including 2 high impact wells expecting to test deeper gas plays. Successful exploration outcomes in the southern part of the basin indicate potential for gas, Cairn India said.
Mr. Elango P, Whole time Director, Cairn India said: "Cairn remains committed to discover new resources and deliver accelerated value from its assets. Our focus on execution is yielding results. Production rose by over 5% compared with the previous quarter and we remain on track to meet the full year exit guidance of over 225,000 boepd. With strategic focus on increasing ultimate recovery from operating fields, we have commenced execution of Polymer Flood Enhanced Oil Recovery project at Mangala, making us one of the front runners in technology adoption. The renewed exploration and appraisal programme during 2013 resulted in 3 discoveries in Rajasthan and declaration of commerciality of Nagayalanka discovery in KG-Onshore block. Our strategy of active exploration across the portfolio opens up potential for resource accretion in the near term. We are keen on evaluating the blocks in NELP-X announced by MoPNG recently, to build on our exploration led growth in India".
Coromadel International, Engineers India, Glenmark Pharmaceuticals, Karnataka Bank, Mahindra Lifespace Developers and SKS Microfinance will announce their October-December 2013 earnings today, 24 January 2014.
Shares of Ranbaxy Laboratories will be watched after the US Food and Drug Administration (USFDA) said on Thursday, 23 January 2014, it has banned more products from Ranbaxy Laboratories from entering the United States due to manufacturing violations.
USFDA has prohibited Ranbaxy from manufacturing and distributing active pharmaceutical ingredients (APIs) from its facility in Toansa, India, for FDA-regulated drug products. The Toansa facility is now subject to certain terms of a consent decree of permanent injunction entered against Ranbaxy in January 2012, USFDA said in a statement.
The decree contains, among other things, provisions to ensure compliance with current good manufacturing practice (CGMP) requirements at Ranbaxy facilities in Paonta Sahib and Dewas, India, as well as provisions to address data integrity issues at those facilities. In September 2013, the FDA added Ranbaxy's Mohali facility to the CGMP provisions of the decree.
"We are taking swift action to prevent substandard quality products from reaching U.S. consumers," said Carol Bennett, acting director of the Office of Compliance in the FDA's Center for Drug Evaluation and Research. "The FDA is committed to ensuring that the drugs American consumers receive - no matter where they are produced - meet quality standards and are safe and effective."
The FDA's inspection of the Toansa facility, which concluded on 11 January 2014, identified significant CGMP violations. These included Toansa staff retesting raw materials, intermediate drug products, and finished API after those items failed analytical testing and specifications, in order to produce acceptable findings, and subsequently not reporting or investigating these failures, USFDA added.
The agency is evaluating potential drug shortage issues that may result from this action. If the FDA determines that a medically necessary drug is in shortage or at risk of shortage, the FDA may modify this order to preserve patient access to drugs manufactured under controls that are sufficient to assure quality, safety and effectiveness.
As a result of this action, Ranbaxy is now prohibited from manufacturing API for FDA-regulated drugs at the Toansa facility and from introducing API from that facility into interstate commerce, including into the United States, until the firm's methods and controls used to manufacture drugs at the Toansa facility are established, operated and administered in compliance with CGMP, USFDA said.
Canara Bank turns ex-dividend today, 24 January 2014 for the interim dividend of Rs 6.50 per share for the year ending 31 March 2014.
Some media report indicated that Bharti Airtel may sell towers in Nigeria for $550 million. Bharti Airtel after market hours on Thursday, 23 January 2014, clarified that the company/its subsidiaries frequently seeks as well as receives proposals from various groups/companies for potential transactions and evaluates various opportunities as and when available. The company, as a matter of policy, does not wish to comment on the present speculative news items and if required will make necessary disclosures at an appropriate time. The company further confirms that it has not released any specific information pertaining to the news report, Bhart Airtel said in a statement.
Mastek's net profit rose 21.9% to Rs 18.30 crore on 1.6% increase in total income was Rs 242.40 crore in Q3 December 2013 over Q2 September 2013. The operating revenue rose 1.5% to Rs Rs 240.20 crore in Q3 December 2013 over Q2 September 2013. The company reported EBITDA of Rs 35.80 crore in Q3 December 2013 compared with Rs 28.90 crore in Q2 September 2013.
Mastek's 12-month order backlog was Rs 513 crore ($83 million) as on 31 December 2013 and in constant currency stood at Rs 515 crore ($82.50 million) as compared to Rs 558 crore ($89.10 million) at the end of Q2 September 2013, reflecting a drop of 8% quarter over quarter (QoQ) in rupee terms (drop of 7.5% QoQ in constant currency).
The company's board has decided on buy-back of company's equity shares of Rs 5 each from open market through stock exchange mechanism, at a price not exceeding Rs 250 per equity share payable in cash for an aggregate amount not exceeding Rs 54.50 crore for buyback of maximum of 32 lakh equity shares and minimum of 9.50 lakh equity shares. The offer size represents 14.92% of the aggregate of the company's paid up equity capital and free reserves as on 31 March 2013. The buyback will be implemented with the approval of the shareholders of the company by way of a special resolution through postal ballot and all other applicable statutory approvals.
The total cash/cash equivalent stood at Rs 249.40 crore on 31 December 2013 as compared to Rs 250.70 crore at the end of 30 September 2013.
Commenting on the results, Mr. Sudhakar Ram, Group CEO & Managing Director, Mastek, said: "We had a steady quarter with a marginal increase in the top line despite the continued ramp down in our IT services accounts. The shift in focus to high end products and solutions has helped us improve our operating margins. While there may be a short term impact due to the NA account ramp-down, I am confident that we will be able to grow both our revenues and margins over the next few quarters".
Mr. Farid Kazani, Group CFO and Finance Director, Mastek, said: "The highlight of the quarter has been the resilience in margins despite increased employee and product expenses. And, the cash flows remain healthy allowing us to reward the shareholders with the proposed buyback."
GMR Infrastructure will be in focus as a meeting of the board of directors of the company has been scheduled today, 24 January 2014, to consider raising funds through foreign currency convertible bonds or any other securities.
Sun Pharma Advanced Research Company (SPARC) announced that its licensee has received an approval from the Drug Controller General of India (DCGI) for Paclitaxel Injection Concentrate for Nanodispersion (PICN), indicated for the treatment of metastatic breast cancer.
In a clinical study in metastatic breast cancer patients, PICN was found to be equally effective and safe when compared to ABRAXANE. PICN is approved in India for both 260 milligram (mg)/m2 and 295mg/m2 doses to be administered every 3 weeks.
PICN is a novel formulation of Paclitaxel using SPARC's proprietary Nanotecton platform technology and is a Cremophor and Albumin-free formulation. It offers the convenience of a quick and easy one-step dilution and infusion preparation for healthcare professionals. PICN can be administered in a short 30 minute infusion and unlike conventional Paclitaxel formulations it does not require premedication with steroids and anti-histamines and does not lead to any significant hypersensitivity reaction in patients.
SPARC has licensed Sun Pharmaceutical Industries (SPIL) or its assignee to manufacture, promote and distribute PICN in the Indian market. As a part of the arrangement, SPARC is eligible for milestone and royalty income, the company said in a statement.
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