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ONGC, Tata Motors in focus after Q4 results

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Last Updated : May 30 2014 | 9:00 AM IST

State-run oil exploration major ONGC's net profit declined 39.96% to Rs 3388.71 crore on 12.87% growth in total income from operations (net) to Rs 21829.86 crore in Q4 March 2013 over Q4 March 2012. The decline in net profit despite lower subsidy sharing burden was due to exceptional one-time expenses. ONGC said an amount of Rs 1850 crore has been provided for in Q4 March 2013 on account of difference of employer's contribution towards superannuation benefits up to 30% as per guidelines issued by Department of Public Enterprises (DPE) for the period from 1 January 2007 to 31 March 2013.

ONGC gave a subsidy discount of Rs 12312 crore in Q4 March 2013, which was lower than Rs 14170 crore in Q4 March 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10214 crore and profit after tax (PAT) by Rs 6900 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.

ONGC has also notified two new gas discoveries -- one in the KG shallow offshore basin and other in Western offshore basin in Kutch.

Meanwhile, the company's board has approved an investment of Rs 4124.35 crore for the integrated development of Vashishta and S-1 fields for production of natural gas from KG offshore. The project is expected to be completed in by April 2016.

Auto major Tata Motors' consolidated net profit declined 36.71% to Rs 3945 crore on 10% growth in revenue to Rs 56002 crore in Q4 March 2013 over Q4 March 2012. The fall in bottom line was due to base effect. Tata Motors had accounted for a large tax credit in Q4 March 2012. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) had accounted for tax credit of 225 million pounds (Rs 1794 crore) in Q4 March 2012 for past income tax losses. Tata Motors' profit before tax (PBT) rose 6.1% to Rs 4694 crore in Q4 March 2013 over Q4 March 2012. Tata Motors attributed revenue growth to strong demand, growth in volumes and favourable market mix at JLR and favourable operating foreign exchange at the British luxury car unit.

Due to weak operating environment in the commercial vehicles and passenger car business in India, the board of Tata Motors pruned dividend to Rs 2 per share for the year ended 31 March 2013 (FY 2013) from Rs 4 per share for the year ended 31 March 2012 (FY 2012).

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Pharma major Cipla's net profit fell 8.3% to Rs 268 crore on 4.9% growth in revenue to Rs 1982 crore in Q4 March 2013 over Q4 March 2012. Cipla's revenue from India operations rose 5.2% to Rs 793 crore in Q4 March 2013 over Q4 March 2012. The growth in revenue from the domestic business was largely on account of growth in anti-asthma, anti-biotics/infectives, and cardiovascular therapy segments. Exports of formulations rose 11.5% to Rs 954 crore in Q4 March 2013 over Q4 March 2012. Exports of active pharmaceutical ingredients (APIs) fell 24% to Rs 175 crore in Q4 March 2013 over Q4 March 2012. The company attributed growth in overall export revenue to growth in anti-asthma, anti-allergic, anti-depressants, and anti-retroviral segments.

Tail Winds, a promoter of Jet Airways (India), is selling 43.17 lakh shares of the company representing approximately 5% of the total paid up equity share capital of today 30 May 2013 via Offer for Sale (OFS) through a separate window provided by the stock exchanges for this purpose. The floor price for the offer for sale has been fixed at Rs 510. The company announced the floor price for the OFS after trading hours on Wednesday, 29 May 2013.

State-run iron ore miner NMDC's net profit declined 10.8% to Rs 1464.95 crore on 23.5% growth in turnover to Rs 3204 crore in Q4 March 2013 over Q4 March 2012. The company said it achieved a record production and sales of iron ore for the 4th quarter. This was accomplished inspite of the slurry pipeline not being available at all for evacuation, NMDC said.

NMDC said it has been pursuing its growth programme vigorously. NMDC, as part of its forward integration programme and value addition, is setting up a 3 MTPA steel plant at Nagarnar in Chhattisgarh, for which most of the major packages have been finalized and awarded. So far, cumulative orders worth Rs 13475 crore have already been placed and expenditure of over Rs 2346 crore has already been incurred. Work on some of the packages have already started and the project is expected to be completed by 2015-16, NMDC said.

NMDC said it incurred capital expenditure of Rs 1607.24 crore in the year ended 31 March 2013 (FY 2013) under various schemes. For the year ending 31 March 2014 (FY 2014), an expenditure of Rs.2720 crore is planned to be expended, NMDC said.

Crude oil refiner BPCL's net profit rose 21.1% to Rs 4797.29 crore on 2.5% growth in net sales to Rs 66282.01 crore in Q4 March 2013 over Q4 March 2012.

The board of directors of Apollo Tyres on Wednesday, 29 May 2013, gave its approval to the management to proceed with requisite approvals and compliances on a transaction with Sumitomo Rubber Industries (SRI) by which SRI may take over Apollo Tyres South Africa (ATSA), including the Ladysmith Tyre plant and Dunlop brand rights in Africa at a consideration of $60 million. Apollo Tyres will retain the Durban plant through the Holding Company of ATSA, which manufactures truck and bus radial tyres and off highway tyres. Apllo Tyres said that the company will be able to disclose further information only after certain conditions have been met and certain approvals, including regulatory and statutory approvals, are granted, wherever required. The closing of transaction is likely to take place in next 4 months, the company said.

Abbott India said that a meeting of the board of directors of the company will be held on 3 June 2013 to consider the sale and transfer of or other appropriate restructuring of the proprietary pharmaceuticals division (PPD) of the company.

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First Published: May 30 2013 | 9:08 AM IST

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