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GAIL (India) in spotlight after Q4 results

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Last Updated : May 27 2014 | 11:44 PM IST

Net profit of GAIL (India) rose 57.24% to Rs 972.03 crore on 16.57% rise in net sales to Rs 14464.29 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Monday, 26 May 2014.

Net profit rose 8.78% to Rs 4375.27 crore on 20.94% rise in net sales to Rs 57245.10 crore in the year ended March 2014 over the year ended March 2013.

In terms of the decision of the Government of India to share the under recoveries on LPG, the company has provided provisional discount of Rs 500 crore in Q4 March 2014 (Q4 March 2013: Rs 587.18 crore) and Rs 1900 crore in the year ended March 2014 (previous year: Rs 2687.18 crore), GAIL said in a statement.

Oil India, JSW Steel, Jaiprakash Associates, Jet Airways (India), Bharat Forge, Container Corporation of India, Dish TV India, Hotel Leela Venture, Power Finance Corporation and Thermax, among others, will announce their January-March 2014 earnings today, 27 May 2014.

On a consolidated basis, Britannia Industries' net profit rose 16.95% to Rs 107.66 crore on 9.33% increase in total income to Rs 1823.46 crore in Q4 March 2014 over Q4 March 2013.

On a consolidated basis, Wockhardt's net profit fell 77.76% to Rs 74.45 crore on 27.97% decline in total income to Rs 1059.67 crore in Q4 March 2014 over Q4 March 2013.

Net profit of Jaypee Infratech declined 91.12% to Rs 13.19 crore in the quarter ended March 2014 as against Rs 148.51 crore during the previous quarter ended March 2013. Sales declined 20.16% to Rs 765.06 crore in the quarter ended March 2014 as against Rs 958.23 crore during the previous quarter ended March 2013.

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Rural Electrification Corporation (REC)'s net profit rose 24.09% to Rs 1191.70 crore on 23.34% growth in total income to Rs 4490 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Monday, 26 May 2014. REC's net profit rose 22.68% to Rs 4683.70 crore on 25.9% growth in total income to Rs 17120.80 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). On consolidated basis, REC's net profit rose 23.7% to Rs 4741.25 crore on 26.32% growth in total income to Rs 17228.94 crore in FY 2014 over FY 2013.

The company has opted for amortising the foreign exchange fluctuation loss/(gain) on the long term foreign currency monetary items over the balance period of such items. The amount remaining to be amortised in 'Foreign Currency Monetary Item Translation Difference Account' is Rs 532.65 crore (As on 31 March 2013 at Rs 160.28 crore), REC said.

REC said it has made a public issue of tax free bonds of face value of Rs 1000 each aggregating to Rs 1059.40 crore during the quarter ended 31 March 2014. The issue proceeds have been utilized for the purposes as mentioned in the offer document except for Rs 5.96 crore which is kept in designated public issue account pending its utilization, REC said.

Jubilant Life Sciences (JLL) reported a consolidated net profit of Rs 98.81 crore in Q4 March 2014 as against net loss of Rs 30.97 crore in Q4 March 2013. The result was announced after market hours on Monday, 26 May 2014. JLL's consolidated total income from operations rose 12.13% to Rs 1562.33 crore in Q4 March 2014 over Q4 March 2013. JLL's consolidated net profit declined 28.6% to Rs 109.04 crore on 12.33% growth in total income from operations to Rs 5803.36 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Commenting on the company's financial performance, Mr. Shyam S Bhartia, Chairman & Managing Director and Mr. Hari S Bhartia, Co-Chairman & Managing Director, Jubilant Life Sciences said, We have implemented the management consolidation of Pharmaceutical and Life Science Ingredients businesses to enable faster and focussed growth going forward. In pharmaceutical business we have strengthened our Quality System for better compliance. We are happy to report that warning letter issue in Montreal have been resolved and in Spokane, we have responded to all FDA observations. We are confident of bringing back our growth in CMO of Sterile injectibles business on the back of strong order book and better compliance. Our financial arrangement with IFC enable us to de-couple our pharmaceutical business from Life Science Ingredient and enhance shareholder value.

Going forward, JLL said it expects strong growth momentum in both the segments of its businesses. The Pharmaceuticals business is expected to deliver on account of resolution of warning letter in Montreal, focussed attention to resolve USFDA issues in Spokane, consolidation of global quality system for compliance, new product launches in Generics business and better price realizations and expected launch of Ruby-fill in Radiopharmaceuticals business. Growth in Life Science Ingredients business is to be led by higher capacity utilization, better pricing and entry into new geographies, JLL said in a statement.

Jubilant Life Sciences' board of directors at its meeting held on Monday, 26 May 2014, inter alia, has recommended a dividend of Rs 3 per equity shares for FY 2014.

Meanwhile, JLL and IFC on Monday, 26 May 2014 said in a combined statement that IFC, a member of the World Bank Group, is lending $147.5 million to Jubilant Pharma to enable better access to quality and affordable pharmaceuticals in underserved markets in India and across the world. Jubilant Pharma, a wholly owned subsidiary of JLL, is incorporated in Singapore, with manufacturing operations in India, USA, and Canada.

Of the total financing package, $110 million is from IFC's own account. The remaining $37.5 million is from IFC's Managed Co-Lending Portfolio Program, which provides additional long-term financing through co-financing partners, JLL and IFC said in a statement. The loan will help JLL increase focus on the pharmaceutical sector and strengthen its generic drug manufacturing facilities in India, the statement said.

Shyam S. Bhartia, Chairman and Managing Director, Jubilant Life Sciences said, "We consider IFC a long-term partner with significant healthcare expertise across emerging markets. IFC's contribution goes beyond financing. IFC will also help us strengthen our quality assurance and risk mitigation mechanisms and make the company systems more robust. IFC's long-term financing package will consolidate our entire pharmaceuticals business under Jubilant Pharma and build global competitiveness.

Vipul Prakash, Director - Manufacturing, Agribusiness and Services, Asia Pacific, IFC said, Health is a priority sector for IFC in India. There is an urgent need to expand access to affordable and quality healthcare, especially among low-income communities. This investment will contribute towards making the Indian pharmaceuticals sector globally competitive, and improve access to affordable medicines to a wider population.

IFC is the world's largest multilateral investor in the private health care sector in emerging markets, having provided financing of over $2.2 billion to 164 private health care and life sciences projects in 53 countries. IFC-supported health projects treat about 12 million patients annually.

R Systems International at the fag end of trading hours on Monday, 26 May 2014 said that Mr. Satinder Singh Rekhi, the promoter director of the company has relinquished the office of Chairman in compliance with Section 203 of the Companies Act, 2013, effective 1 April 2014 and he will continue to act as Managing Director of the company.

Financial Technologies (India) (FTIL) said that MCX has released the PwC special audit report to BSE. As has been stated earlier, view of FTIL were not taken into account before finalizing the report despite requests. Since, the report is bulky and seems to have certain unfounded allegations against the company, FTIL will examine the same carefully. The FTIL board will meet soon to decided further course of action, the company said.

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First Published: May 27 2014 | 8:43 AM IST

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