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Sterlite Industries (India) may decline on poor Q1 result

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Last Updated : Jul 26 2013 | 9:55 AM IST

Sterlite Industries (India)'s consolidated net profit fell 22.26% to Rs 934.06 crore on 19.67% fall in total income to Rs 9315.29 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result after market hours Thursday, 25 July 2013.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% to Rs 2173 crore in Q1 June 2013 over Q1 June 2012. Sterlite said revenue EBITDA were lower primarily on account of a temporary closure of the Tuticorin copper smelter, which was partially offset by higher power generation at the Jharsuguda 2,400 megawatts (MW) power plant and higher production at Zinc India. Temporary closure of the Tuticorin smelter negatively impacted EBITDA by Rs 180 crore. The profit after tax (PAT) and basic EPS were impacted by lower EBITDA and higher losses at associate. Higher interest cost on borrowings was largely offset by increase in other income.

Following the Tamil Nadu Pollution Control Board's (TNPCB) order for closure of the Tuticorin copper smelter on 29 March 2013, the National Green Tribunal (NGT) after hearing company's appeal, passed an interim order on 31 May 2013, conditionally allowing the smelter to recommence operations, and the plant restarted on 23 June 2013. On 15 July 2013, an expert committee confirmed that the plant meets the prescribed standards, and the NGT in its order of even date took cognizance of the findings of the expert committee and observed that the company "is neither an existing pollutant nor is a threat of future pollution (not violating prescribed standards) resulting in health hazards", and declined to modify its earlier interim order dated 31 May 2013, enabling the plant to continue to operate. Separately, the TNPCB has also filed an appeal against the NGT's earlier interim order before the Supreme Court.

Meanwhile, Sterlite Industries (India) said after market hours on Thursday, 25 July 2013 that the proposed merger of the company with Sesa Goa and Vedanta group consolidation and simplification has received the approval of the High Court of Madras on 25 July 2013 and the High Court of Bombay at Goa on 3 April 2013. One of the shareholders of Sesa Goa has filed an appeal against the order passed dated 3 April 2013 by the High Court of Bombay at Goa before the Division Bench. The hearing before the Division Bench has been completed and the order of the Division Bench is awaited.

Credit rating agency Standard & Poor's (S&P) has reportedly revised its outlook on Tata Motors to stable from positive. S&P also affirmed its 'BB' long-term corporate credit rating and issuer ratings on the company's senior unsecured notes. The ratings agency said it expects Tata Motor's leverage will rise and capital expenditure and the capacity addition by the Jaguar Land Rover Automotive Plc (JLR) subsidiary will result in higher-than-expected negative free operating cash flow.

Wipro and Hindustan Unilever announce June quarter results today, 26 July 2013. Nestle India, Bank of India, Bharat Electronics, CESC, Dish TV India, Eveready Industries, McLeod Russel India, Pfizer, Punjab National Bank, Tata Coffee and Tata Communications among others will also declare their June quarter results today, 26 July 2013.

Infrastructure sector stocks will be focus after the Steering Group appointed by the Prime Minister to accelerate infrastructure investment on Thursday, 25 July 2013, finalized deadlines with time lines for the intermediate steps for key infrastructure projects. The progress on the intermediate steps will be monitored on a regular basis, Prime Minister's Office (PMO) said in a statement. The deadlines will ensure that the Ministries/Departments are clear about not just the overall deadline but also all the intermediate steps that need to be completed so that there are no slippages. The Principal Secretary to PM has directed all Ministries/Departments to nominate a Nodal Officer each, of the rank of a Joint Secretary or above, who will report on a weekly basis on the progress of their department's project(s).

With regard to the Mumbai Elevated Rail Corridor Project, the issue of whether the RFQ will be reissued will be resolved by the Ministry of Railways within a week. As regards power transmission projects, the Ministry of Power will try to award the 13 identified transmission projects as per the agreed timelines, the PMO said.

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Realty major DLF said after market hours on Thursday, 25 July 2013 that it signed definitive agreements to sell its 74% equity stake in its the Life Insurance Joint Venture - DLF Pramerica Life Insurance Company, a joint venture with Prudential International Insurance Holdings (PIIHL), a subsidiary of Prudential Financial, Inc USA PFI to Dewan Housing Finance Corporation (DHFL) & its group entities. As these agreements are subject to regulatory approvals, hence the transaction consideration shall be disclosed post receipt of all such approvals.

Mr Ashok Tyagi, Group CFO, DLF said: This transaction is in line with our ongoing strategy to divest non-core businesses/ assets. We have had a very cordial relationship with PIIHL and wish them the best in their new partnership with DHFL."

Tata Power Company turns ex-dividend today, 26 July 2013 for dividend of Rs 1.15 per share for the year ended 31 March 2013 (FY 2013).

Biocon's consolidated net profit rose 18.65% to Rs 93.50 crore on 22.03% growth in total income to Rs 723.17 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Thursday, 25 July 2013.

Commenting on the results, Biocon Chairman and Managing Director, Kiran Mazumdar-Shaw stated, "We are pleased to report a strong set of numbers for Q1 FY 2014. The new organization structure has enabled us to deliver superior results with the core business performing strongly. Biocon's Insulins business continues to do well, riding on the back of an increased geographical footprint in the emerging markets. The India-focused branded formulations vertical as well as our research services continue to grow at a steady pace. Our research programs are making good progress. I am very excited about the upcoming launch of Alzumab(TM), our second novel biologic. We look forward to bringing this first-in-class molecule for the treatment of psoriasis to the Indian market. The current fiscal will see us consolidate our various initiatives whilst we continue our investments in our biosimilars and novel molecules, to deliver a sustainable growth platform."

On future business outlook, Biocon said that the focus in the current fiscal is to further the company's progress in the biosimilars, research services and the branded formulations space. The company said that the current business and regulatory environment is challenging and has impacted the Indian pharmaceutical industry's growth momentum. Biocon said it intends to manage the environmental uncertainties by building efficiencies across costs and processes as well as by improving the portfolio mix with margin accretive products. The Research and Development and Capex investments in the company's biosimilars programs continue as planned with Research and Development costs expected to increase during the year, Biocon said.

Biocon said its board of directors at its meeting held on 25 July 2013, has noted the proposal for merger of its subsidiary Clinigene International with Syngene International.

Container Corporation of India's net profit rose 0.55% to Rs 246.47 crore on 14.77% rise in total income to Rs 1284.51 crore in Q1 June 2013 over Q1 June 2012. Meanwhile, the company's board approved issue of one bonus share for every two held.

Bata India's net profit rose 17.6% to Rs 61.94 crore on 13.7% rise in net sales to Rs 572.13 crore in Q2 June 2013 over Q2 June 2012.

Mr. Rajeev Gopalakrishnan, Group Managing Director, Bata India said It has been a good year and we continue to see stronger growth with greater opportunities. The robust quarterly performance reflects our strong understanding on the consumer needs and our relentless focus on quality sales growth. We expect to benefit from our aggressive retail expansion, newer designs and newer product ranges in the future. We are confident our momentum will accelerate in line with our expectations as we move through the year.

State Bank of Mysore's net profit rose 31.2% to Rs 52.22 crore on 5.5% rise in total income to Rs 1652.68 crore in Q1 June 2013 over Q1 June 2012.

Torrent Power reported consolidated net loss of Rs 7.39 crore in Q1 June 2013 as compared to net profit of Rs 104.43 crore in Q1 June 2012. Net sales rose 4.3% to Rs 2171.79 crore in Q1 June 2013 over Q1 June 2012.

Raymond reported consolidated net loss of Rs 49.68 crore in Q1 June 2013, higher than net loss of Rs 34.98 crore in Q1 June 2012. Net sales rose 4.4% to Rs 873.79 crore in Q1 June 2013 over Q1 June 2012.

SKS Microfinance reported net profit of Rs 4.97 crore in Q1 June 2013 as compared to net loss of Rs 38.84 crore in Q1 June 2012. Total income rose 54.3% to Rs 122.61 crore in Q1 June 2013 over Q1 June 2012.

Great Eastern Shipping Company has placed an order for two new building Kamsaemax dry carriers with Tsuneishi Shipbuliding Co, Japan. These vessels will be built at the yard's facility in Philippines. The contracted ships, of about 81,600 dwt each, will be built according to the new eco design features which will result in greater fuel efficiency and be in compliance with energy efficiency design index requirements. Both the vessels are expected to join the company's fleet during first half of FY16. The company's current fleet stands at 28 vessels, comprising 20 tankers (8 crude carriers, 11 product carriers,1 LPG carrier) and 8 dry bulk carriers (1 Capesize, 3 Kamsaemax, 4 Supramax).

Meanwhile, Great Eastern Shipping Company turns ex-dividend today, 26 July 2013 for final dividend of Rs 4.50 per share for the year ended 31 March 2013 (FY 2013).

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First Published: Jul 26 2013 | 9:10 AM IST

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