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Cairn India in focus after Q4 results

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Last Updated : Apr 26 2014 | 12:01 AM IST

Cairn India's consolidated profit after tax (PAT) rose 18% to Rs 3035 crore on 16% growth in revenue to Rs 5049 crore in Q4 March 2014 over Q4 March 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 26% to Rs 3654 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin surged to 72% in Q4 March 2014, from 67% in Q4 March 2013. The result was announced after market hours today, 23 April 2014.

Consolidated PAT rose 5% to Rs 3035 crore on 1% growth in revenue to Rs 5049 crore in Q4 March 2014 over Q3 December 2013. EBITDA rose 3% to Rs 3654 crore in Q4 March 2014 over Q3 December 2013. EBITDA margin edged up to 72% in Q4 March 2014, from 71% in Q3 December 2013. Cairn India said that the 5% sequential growth in PAT in Q4 March 2014 was primarily led by increase in investment income consequent to realisation of gains on maturity of investible funds and one time charge of ESOP policy change accounted in previous quarter.

Consolidated PAT rose 3% to Rs 12432 crore on 7% rise in revenue to Rs 18762 crore in the year ended 31 March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Cairn India said that revenue growth in FY 2014 was driven by increase in working interest volume to 137.1 kboepd in FY 2014, from 127.8 kboepd in FY 2013 and due to benefit from rupee depreciation. This increase was partly offset by higher profit sharing with the Government of India (GoI) in DA1 consequent to tranche change, Cairn India said. The company said its forex gain was higher at Rs 739 crore in FY 2014 on account of over 10% rupee depreciation against the dollar.

Cash and cash equivalents stood at Rs 13707 crore in rupee funds and $1.53 billion in dollar funds as on 31 March 2014, part of which is expected to be used for share buy-back and dividends, Cairn India said. Till 31 March 2014, Cairn India has bought back 32.70 lakh shares for a total consideration of approximately Rs 106 crore from the open market through stock exchanges under the ongoing share buyback programme.

The company's board recommended a final dividend of Rs 6.50 per share for FY 2014, entailing an outflow of approximately Rs 1451 crore including dividend distribution tax. This along with the interim dividend paid in October 2013 cumulatively amounts to around 22.46% of the company's annual consolidated net profit.

With regard to future business outlook, Cairn India said that the management remains committed to create long term shareholder value. Considering the significant potential in the Rajasthan asset, the company will continue to focus on key development projects to enhance recovery with overall planned net capex of $3 billion by FY 2017, it said. The company said it is targeting to achieve reserve replacement ratio of 150% in next 3 years subject to PSC extension till 2030 and a 3 year production CAGR of 7-10% from known discoveries with flat production in FY 2015. Further exploration activity across the portfolio provides additional value upside and momentum while technology adoption supports low cost operations and development, Cairn India said.

UltraTech Cement's net profit rose 15.43% to Rs 838 crore on 8.18% increase in net sales to Rs 5832 crore in Q4 March 2014 over Q4 March 2013. Net profit fell 19.2% to Rs 2144.47 crore on 0.3% increase in net sales to Rs 20077.88 crore in the year ended March 2014 over the year ended March 2013.

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Maruti Suzuki India, ICICI Bank, AXIS Bank and IDFC are set to announce their financial results today, 25 April 2014.

Union Bank of India said that on 22 April 2014, it successfully priced a $350 million Reg S senior unsecured notes drawdown from its $2 billion Medium-Term Note Program. The bonds are rated Baa3 by Moody's and BBB- by S&P. The 5.5-year bonds were priced at a spread of 280 bps over the 5-year US Treasury, equivalent to a price of 99.764 and yield of 4.549% per annum. The bonds will be denominated in US dollars, and will bear fixed interest of 4.5% per annum, with interest payable semi-annually in arrears. The bonds will mature on 28 October 2019. The total orderbook of the Offering was in excess of $1.2 billion and was oversubscribed 3.4 times with demand from 150 investors, Union Bank of India said in a statement.

L&T Finance Holdings' consolidated net profit rose 8.81% to Rs 186.54 crore on 24.89% rise in total income to Rs 1431.35 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 23 April 2014. The consolidated net profit fell 18.28% to Rs 596.89 crore on 31.1% rise in total income to Rs 5237.18 crore in the year ended 31 March 2014 (FY 2014) over FY 2013.

Figures for the FY 2014 are not comparable with FY 2013 on account of acquisitions of subsidiaries namely, L&T Housing Finance (formerly: Indo Pacific Housing Finance Limited), L&T Fund Management (formerly: FIL Fund Management), L&T Trustee Services (formerly: FIL Trustee Company) and FamilyCredit during the third quarter of the previous financial year.

L&T Finance Holdings said that the board of directors of the company at its meeting held on 23 April 2014, inter alia, has recommended dividend of Rs 0.75 per share. The dividend, if approved by the shareholders at the ensuing Annual General Meeting will be credited/dispatched before 22 August 2014.

Loans & Advances as on 31st March 2014 grew by 20% year on year to Rs 40,080 crore as compared to Rs 33,310 crore as on 31sl March 2013 and by 6% quarter on quarter. This has been driven by a conscious focus on the rural products finance, personal vehicle finance and housing finance segments in retail business, while pursuing operational assets in the wholesale business.

The investment management business witnessed the Average Assets under Management (MUM) growing by 63% on a year on year basis to Rs 18,255 crore, while the wealth management business achieved average assets under service of Rs 5,012 crore as on 31st March 2014.

The slowdown in the economy continues to put pressure on the asset quality. Gross NPAs stood at 3.18% of loan assets as on 31st March 2014 as compared to 2.93% as on 31sl December 2013. Net NPAs stood at 2.29% of loan assets as on 31st March 2014 as compared to 2.05% as on 31sl December 2013. We remain cautious in lending to segments under stress such as CE/CV and corporates, while continuing to follow a conservative provisioning policy with contingent and voluntary provisions of -Rs. 195 Cr over and above RBI norms, company said.

Commenting on the results and financial performance, Mr. Y. M. Deosthalee, Chairman & Managing Director, L&T Finance Holdings, said, "We are delighted that our outstanding loan book has crossed the Rs 40,000 crore mark this quarter which is another milestone in our journey of becoming a comprehensive financial services player. While credit costs remain elevated due to the challenging macro environment, containing the stress and building a quality portfolio has been a key focus for the management team. Post acquisition of FamilyCredit and Indo-Pacific Housing Finance, there are plenty of opportunities to expand our presence in retail and rural markets."

The company in its outlook said that the trends in the movement of the leading macro indicators remain unstable, raising doubts about sustained revival in economic growth. Inflation remains a key monitorable for the regulator with any possible cut in regulatory rates being dependent on a sustained reduction in inflation. Vagaries in monsoons due to the expected negative impact of EI Nino weather phenomenon could impact the rural economy.

On the other hand, the monetary situation is benign with the CAD expected to be much lower at $ 35 billion on the back of moderate pick up in exports and substantial fall in gold imports. The positive impact of the government's initiatives to clear long pending infrastructure projects is expected to be visible on the ground in the next 2 quarters, while the outcome' of the general elections would determine the growth trajectory in the medium term. Given the challenging environment, we continue to focus on building a quality portfolio by being cautious in credit selection and containing credit costs on our existing assets through aggressive .asset monitoring. While growth may be slightly muted in FY15, we expect to maintain overall book growth at 15% -20%. Improved margins with a stable opex, lower credit costs and increase in gearing are expected to result in better return ratios for the business.

DLF announced that its offices leasing and management arm, DLF Offices, has created a benchmark by leasing 3 million square feet (sq. ft.) of office space in the year ended March 2014 (FY14) with many marquee MNCs and Indian companies. Out of the 3 million sq. ft. leased out, a record 1.7 million sq. ft. has been leased out in Gurgaon alone. This has been achieved despite intense competition in the office leasing space and a subdued economic environment. The lease rentals witnessed stable to healthy increases in various micro markets.

Significantly most tenants who are completing the 9 year lease term in DLF CyberCity, Gurgaon chose to renew their leases reinforcing their faith and relationship with DLF. DLF Offices has approximately 27 million sq.ft of leasable space pan India with certain projects having achieved above 95% occupancy.

According to Mr. Amit Grover, National Director - DLF Offices, "DLF reinforced its vision to enhance the experience of its clients with high emphasis on safety and quality of services. Our strategic view is to enhance the ecosystem in which the clients' workforce feels safe and comfortable to spend a larger part of their day at work. Our Infrastructure initiatives especially the mass transport and value adds like accessible health-care, entertainment, dining and engagement avenues like Cyber Hub at Cybercity Gurgaon have established new industry benchmarks. Our partnership approach for structuring space solutions and working on client feedback is well reciprocated by existing clients, resulting in expanding their presence in DLF Offices."

In a separate a statement, DLF clarified that while 3 million sq.ft. is the total leasing done, a portion of this i.e. 1.3 million sq.ft. is of spaces that were re-leased. The incremental leasing of 1.7 million sq.ft. done during the year was better than the guidance of 1 to 1.5 million sq.ft.

Edelweiss Financial Services announced after market hours on Wednesday, 23 April 2014, that the board of directors of the company at its meeting held on 23 April 2014, have, subject to the receipt of necessary approvals, if any, approved the buy-back of the company's equity shares of Re 1 each. The aforesaid buy-back will be made from the Open Market through Stock Exchanges, at a price not exceeding Rs 45 per equity share and for an aggregate amount not exceeding Rs 135 crore.

Infosys announced after market hours on Wednesday, 23 April 2014 a strategic partnership with Orange to offer customers a new immersive experience on Orange's IPTV offering. Infosys will deliver a broad portfolio of interactive TV apps on the Orange Livebox Play.

The TV apps will be powered by Infosys DigitizeEdge, an integrated digital asset and experience platform for TV operators, media companies, advertisers, and content publishers. Infosys will leverage this cloud-based platform to onboard top content providers and brands across the globe. DigitizeEdge will enable Orange to deliver a wide range of lifestyle-centric, video-rich, and contextual over-the-top (OTT) services via TV apps, to enhance viewer experience and interaction with their TV. The platform will customize content for Orange's viewers in France.

Infosys DigitizeEdge allows enterprises to easily launch immersive app channels on multiple devices including connected TV, tablets, smartphones, PCs, and in-vehicle infotainment systems. The platform also helps to monetize OTT services and generate new revenue streams. The platform enables video and interactive features across TV and second screen apps, synchronized with TV viewing patterns. Infosys DigitizeEdge provides modular capabilities to support the entire digital value chain including multi-screen consumer experience, service delivery, and digital asset transformation. It offers targeted personalization and recommendations, analytics, and partner collaboration, with a self-service management console, to accelerate revenue generation initiatives. Infosys DigitizeEdge has partnerships with some of the world's top digital media companies like Popular Science, Motor Trend, Space.com, Visible Body, Entrepreneur, and Wright's Media, as well as advertising agencies and brands. These relationships create a unique value chain of content providers, advertising networks, consumer brands, and marketers that allow TV operators to create an innovative immersive experience for their viewers.

Rajesh K. Murthy, Global Head, Energy and Telecom, Infosys said: Integrating TV with Internet content services will allow Orange to deliver a fantastic experience to their customers. We are seeing traditional pay-TV providers as well as telecommunication and cable firms, continuously looking to provide Web-based services on existing TVs. Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers.

Wockhardt announced after market hours on Wednesday, 23 April 2014 that the State Drug Controller, Himachal Pradesh, has suspended the manufacture, sale or distribution of Fixed Dose Combination (FDC) Dicyclomine Hydrochloride IP 10mg, Tramadol Hydrochloride IP 50mg & Acetamenophen IP 325mg. The company in order to revoke the said suspension is filing an appeal before the State Government under the provisions of applicable law. The product contributed less than 3% of the consolidated sales of Wockhardt during the financial year ended 31 March 2014 (FY 2014).

Bhushan Steel will be in focus. With reference to a letter dated 26 November 2013, vide which direction regarding Blast Furnace No. 2 installed at its Steel Plant at Meramandali, Odisha received from the State Pollution Control Board, Odisha was submitted, Bhushan Steel announced after market hours on Wednesday, 23 April 2014 that the company has received all consents and approvals from the State Pollution Control Board, Odisha for starting and operating the Blast Furnace No. 2 installed at its Steel Plant at Meramandali, Odisha. The company has started the process of operation of Blast Furnace No. 2 and the production from the furnace is expected to start in few weeks.

Allied Computers International (Asia) announced after market hours on Wednesday, 23 April 2014 that a meeting of the board of directors of the company will be held on 26 April 2014, to allot convertible equity warrants at par to other than promoters on preferential basis.

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First Published: Apr 25 2014 | 8:48 AM IST

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