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Idea Cellular may gain on good Q1 results

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Last Updated : Jul 22 2015 | 6:28 PM IST

Idea Cellular's consolidated net profit rose 27.82% to Rs 930.83 crore on 17.45% rise in total income to Rs 8920.78 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 21 July 2015.

The earnings before interest, tax, depreciation and amortization (EBITDA) rose 28.9% to Rs 3228.40 crore in Q1 June 2015 over Q1 June 2014. EBITDA margin improved by 3.6% to 36.7% in Q1 June 2015.

The company is slated to launch its Kolkata 3G services by end of this calendar year. Idea has also initiated multiple steps towards introduction of 4G LTE services on 1800 MHz spectrum band in 10 service areas of Kerala (10 MHz), Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, North East, Tamil Nadu and Orissa (5MHz each), in a phased manner from calendar year 2016 onwards. The company is also in the process of revisiting its existing Value Added Services offering and intends to introduce its own range of 'Digital Services' across various categories like entertainment, information, communication, utilities and API services etc. in next financial year.

ACC turns ex-dividend today, 22 July 2015, for interim dividend of Rs 11 per share for the year ending 31 December 2015 (FY 2015).

Cipla announced after market hours yesterday, 21 July 2015, that the company's board has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its recently launched consumer healthcare business which is under incorporation.

The investment is subject to execution of definitive agreements, and regulatory approvals. Through Cipla Consumer Healthcare, the company has entered the rapidly growing over-the-counter (OTC) healthcare market in India. The vision is to improve the lives of Indian consumers, building on Cipla's strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system.

The idea is to leverage Cipla R&D and innovation platform to provide innovative solutions to meet the unmet needs of the Indian consumer. The business will focus on opportunities arising from the shift from illness to wellness and self-care.

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Cairn India's consolidated net profit fell 23.59% to Rs 834.98 crore on 36.18% decline in total income to Rs 3190.66 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 21 July 2015.

Average price realisation for Cairn India dropped 42% to $56/boe in Q1 June 2015 over Q1 June 2014.

Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter was Rs 1302 crore with healthy EBITDA margin of 50%. EBITDA for the quarter is higher by 79% compared to Q4 March 2015 which saw an exploration cost write-off of Rs 552 crore. EBITDA margins were boosted by lower operating costs which for Rajasthan waterflood case have reduced by 10% from the previous fiscal year average of $5.8 to $5.2/boe in Q1 June 2015 as a result of reduction in well and facility maintenance costs and MG&A. Along with field opex, corporate MGA too has been brought down by 14% as a result of manpower optimisation and decrease in overheads on account of various cost optimisation initiatives currently underway.

In its outlook for the year ending 31 March 2016 (FY 2016), the company said it continues to remain committed to creating long term shareholder value. Despite low oil prices and substantial cut in capex, the company will at a minimum maintain Rajasthan production in current year at FY 2015 levels. Planned capital investment is for a net capex of $500 million; 45% in Core MBA fields, 40% in Growth projects of Barmer Hill, Satellite Fields & Gas and 15% in exploration. The company retains the flexibility to invest balance $1.4 billion as oil prices improve and costs bottom out and also aims to have healthy cash flows post capex so as to retain the ability to pay dividends.

Shares of fertilizer manufacturers will be in focus after the Minister of State for Chemicals & Fertilizers Hansraj Gangaram Ahir said in reply to an Unstarred Question in the Lok Sabha yesterday, 21 July 2015, that the government proposes direct fertilizer subsidy transfer to farmers' bank account. However, a major challenge in operationalizing this scheme lies in identification of beneficiary farmers as in many states the land records are neither accurate nor updated, Ahir said. Therefore, the Department of Fertilizers plans to have a phased approach and prepare a road map for pilot project in select districts to capture the details/identity proof of buyer's (Aadhaar Number/Land Details) at retail fertilizer stores in order to build a comprehensive database of beneficiary farmers over a period of time.

Jet Airways (India) and SpiceJet will be in focus after the Minister of State for Civil Aviation, Dr. Mahesh Sharma said in a written reply to a question in the Rajya Sabha yesterday, 21 July 2015, that the government is not considering the formulation of a mechanism for the capping of economy and business class airfares to curb the predatory pricing of passenger tickets by airlines. Air fares are not regulated by the government. Airlines are free to fix tariff under the provision of Sub-rule (1) of Rule 135, Aircraft Rules 1937 having regard to relevant factors, including the cost of operation, characteristic of services, reasonable profit and the generally prevailing tariff, Sharma said in his written reply.

Sanofi India's net profit rose 11.65% to Rs 64.20 crore on 7.76% rise in total income to Rs 559.60 crore in Q2 June 2015 over Q2 June 2014. The result was announced after market hours yesterday, 21 July 2015.

Sanofi India announced after market hours yesterday, 21 July 2015, that the board of directors of the company has approved of the company selling its commercial property, being land admeasuring 5493.1 square meters (sq. mts.) bearing Survey No. 54-A Hissa No. 2 and C.T.S. No. 18 of Village Chakala, alongwith building known as 'Aventis House' standing thereon, situated at Sir Mathuradas Vasanji Road, Andheri (East) Mumbai - 400 093, for a consideration of Rs 11.10 crore. The built-up area of the building (comprising of basement and two upper floors) is approximately 69,600 square feet (sq. feet). The transaction is subject to certain conditions precedent and is expected to be completed in the quarter ending 30 September 2015.

Jyoti announced after market hours yesterday, 21 July 2015, that the switchgear division of the company has bagged prestigious order against stiff competition from Gujarat Energy Transmission Corporation (GETCO), Vadodara, India for supply of about 400 nos. various types of 11 kV VCB panels valued at Rs 14.92 crore. The order is to be executed in 6 months time.

SKF India's net profit fell 14.01% to Rs 46.55 crore on 1.52% rise in total income to Rs 630.55 crore in Q2 June 2015 over Q2 June 2014. The result was announced after market hours yesterday, 21 July 2015. Profit before tax (PBT) fell 13% to Rs 70.90 crore in Q2 June 2015 over Q2 June 2014.

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First Published: Jul 22 2015 | 8:42 AM IST

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