Hero MotoCorp's net profit rose 27.74% to Rs 1004.22 crore on 15.33% increase in total income to Rs 8601.10 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016.
Earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to its highest-ever 16.20% in Q2 September 2016, as against 14.91% in Q2 September 2015 aided by softer commodities and cost control measures.
Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero MotoCorp, said the highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of the company's products. At the same time, the company has also delivered on its commitment of further strengthening its profitability by crossing the threshold Rs 1000 crore in PAT for the first time in a quarter. The domestic market has seen a revival in the past two quarters due to an above-average monsoon and positive consumer sentiment. The trend is expected to continue through the year and likely to result in double-digit growth for the industry. In the global markets, however, the industry continues to face headwinds due to volatile business environment driven by continued weakness in crude prices and sharp depreciation of local currencies.
Meanwhile, in a separate announcement, Hero MotoCorp said that its board of directors approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure. The said strategic investment is subject to execution of definitive agreements and completion of certain conditions customary for a transaction of this nature.
As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. Hero MotoCorp intends to enhance its participation in the EV space by pursuing its internal EV program in addition to partnering with Ather.
GlaxoSmithKline Pharmaceuticals, Glenmark Pharmaceuticals, Indian Oil Corporation (IOC), JSW Steel, Jubilant Life Sciences, Maruti Suzuki India, ONGC, Tech Mahindra and TVS Motor Company will declare July-September 2016 quarter results today, 27 October 2016.
Hindustan Unilever's (HUL) net profit rose 11.54% to Rs 1095.60 crore on 2.22% growth in total income to Rs 8733.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. During the quarter, in a challenging context where market growth continued to be under pressure, HUL's domestic consumer business grew at 2% and EBITDA (earnings before interest, taxation, depreciation and amortization) margin expanded by 60 basis points (bps), the company said. HUL's profit after tax before exceptional items, PAT (bei) grew by 9% to Rs 1082 crore in Q2 September 2016 over Q2 September 2015.
Harish Manwani, Chairman of HUL commented that in challenging market conditions, the company delivered another quarter of profitable growth. The company remains focused on market development, consumer led innovations and an even sharper drive on operating efficiences. With a good monsoon, the company expects a gradual improvement in market demand and remain positive on the mid-long term outlook for the industry, Manwani said. HUL's strategic agenda of delivering consistent, competitive, profitable and responsible growth remains unchanged, he added.
Sun Pharmaceutical Industries announced after market hours yesterday, 26 October 2016, the execution of definitive agreements by its wholly owned subsidiary for the acquisition of 100% of Ocular Technologies, Sarl (OTS), a portfolio company of Auven Therapeutics (Auven), an international private equity company focused on accelerated development of breakthrough therapeutic drugs. OTS owns exclusive, worldwide rights to Seciera (cyclosporine A, 0.09% ophthalmic solution). Sun Pharma will pay Auven $40 million upfront, plus contingent development milestones and sales milestones as well as tiered royalty on sales of Seciera as consideration for this acquisition.
Seciera is currently in a Phase-3 confirmatory clinical trial for the treatment of Dry Eye Disease, an inflammatory ocular disease affecting approximately 16 million people in the United States alone. Seciera is a patented, novel, proprietary formulation of cyclosporine A 0.09%. It is a clear, preservative-free, aqueous solution. In a completed Phase 2b/3 clinical trial in 455 patients, Seciera demonstrated a rapid onset of action and was well tolerated by the study population. Based on the published data in literature, the efficacy and safety endpoints in these trials compared favorably to other formulations of cyclosporine A.
The transaction is subject to approval of the US Federal Trade Commission as required under the Hart-ScottRodino Act and other closing conditions, and is expected to be completed by end of 2016.
State Bank of India (SBI) announced after market hours yesterday, 26 October 2016, that a meeting of the central board of the bank is scheduled to be held on 29 October 2016 to consider raising of equity share capital through preferential issue of equity shares to the Government of India.
Cummins India's net profit declined 0.53% to Rs 196.90 crore on 5.64% growth in total income to Rs 1429.13 crore in Q2 September 2016 over Q2 September 2015. The company's gross sales rose 5% to Rs 1331 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016.
Anant J. Talaulicar, Chairman & Managing Director (CMD) of Cummins India said that the company's exports continue to face headwinds due to the macroeconomic situation. The company continues to make inroads and gain market share domestically, Anant said. Government led investments in roadways and railways continued to drive Cummins' sales growth in the industrial engine segment, the CMD added. Despite exports revenues remaining depressed, the company's strong focus on cost optimization and efficiency improvement has helped it sustain its profitability, Anant said. Cummins remains committed to investing in customer-centric, fit-for-market products and technologies as well as in leadership and diverse talent development to continue delivering profitable growth in the future, Anant said.
Tata Power Company will be in focus. With reference to media report suggesting, "Ousted Tata Chief Says Group Faces $18 Billion in Writedowns," the company clarified after market hours yesterday, 26 October 2016, that it has examined the news article with comments purported to have been made by ex-chairman of Tata Sons regarding the company's Mundra ultra power project. The company has always made all relevant disclosures, as required, and has no further comments to offer.
Lakshmi Machine Works announced after market hours yesterday, 26 October 2016, that its board of directors has approved the buyback of 3.11 lakh equity shares, or 2.76% equity, of the company at Rs 4,450 per share, aggregating to an amount of Rs 138.39 crore.
Edelweiss Financial Services after market hours yesterday, 26 October 2016 announced that ICRA has assigned the rating of '[ICRA]A1+' (ICRA A one plus) to the proposed short term debt programme of Rs 3000 crore of the company. CRISIL has assigned the rating of 'CRISIL A1+' (CRISIL A one plus) to the proposed short term debt issue of Rs 3000 crore of the company.
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