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Tata Steel in focus on turnaround in Q3

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Last Updated : Feb 12 2014 | 11:59 PM IST

Tata Steel reported a consolidated net profit of Rs 503 crore in Q3 December 2013 as compared to a net loss of Rs 763 crore in Q3 December 2012. Consolidated turnover rose 0.24% to Rs 36736 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 11 February 2014.

Q3 December 2013 EBITDA increased to Rs 3921 crore from Rs 3784 crore in Q2 September 2013 and rose significantly from Rs 2252 crore in Q3 December 2012. EPS in Q3 December 2013 came in at Rs 4.73 compared to Rs 8.98 in Q2 September 2013 and the loss of Rs 8.32 in Q3 December 2012.

Cash and cash equivalents as on 31 December 2013 was Rs 6371 crore and net debt was Rs 70129 crore.

Shares of companies whose fortunes are linked to Railways will be in focus as rail minister Mallikarjun Kharge will present interim rail budget today, 12 February 2014. There are reportedly indications that passenger fares may not be touched barring minor changes in a few segments in the first rail budget to be presented by Kharge.

Cipla, Coal India and Bharat Petroleum Corporation will unveil Q3 results today, 12 February 2014.

HPCL reported net loss of Rs 1733.91 crore in Q3 December 2013 as compared to net profit of Rs 147.11 crore in Q3 December 2012. Total income rose 3.8% to Rs 55651.51 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 11 February 2014.

Ambuja Cements turns ex-dividend today, 12 February 2014 for the final dividend of Rs 2.20 per share for the year ending 31 December 2013.

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Delhi's chief minister Arvind Kejriwal reportedly said on Tuesday he has asked for an investigation to be launched into Reliance Industries' (RIL) Chairman Mukesh Ambani and policymakers over pricing of gas produced from the D6 block in the east coast.

"Today we have instructed the anti-corruption branch to file a criminal case against Murli Deora, FIRs against Veerappa Moily, V.K. Sibal, the (then) director general of hydrocarbons, Reliance Industries Chairman Mukesh Ambani and others," Kejriwal told a press conference.

A FIR, or First Information Report, is the first stage of an official investigation into a complaint. Reliance had initially agreed to supply gas to utility NTPC at about $2.3 per million British thermal units (mBtu) for about 17 years, Kejriwal said.

But price of gas from the D6 block was fixed at $4.2 per mBtu when Deora was oil minister.

Last year, after Moily took over as oil minister, the federal government agreed to link prices with global indexes, which could double the local gas prices from April 1 this year. Kejriwal said he would ask the federal government to suspend the latest order on gas pricing pending an inquiry.

Aptech said that with a view to increase operational and financial efficiencies, the Board of Directors of the company at its meeting held on 11 February 2014, has decided to merge Maya Entertainment, its wholly owned subsidiary company, with Avalon Aviation Academy another wholly owned subsidiary company, subject to necessary regulatory approvals and such further steps as may be required in the matter for completion.

HCL Infosystems reported net profit of Rs 2.30 crore in Q2 December 2013 as compared to net loss of Rs 28.67 crore in Q2 December 2012. Total income dropped 41.7% to Rs 1448.29 crore in Q2 December 2013 over Q2 December 2012. The result was announced after market hours on Tuesday, 11 February 2014.

On a consolidated basis, Fortis Healthcare's net profit fell 44.81% to Rs 389.09 crore on 33.85% decline in total income to Rs 1,018.72 crore in Q3 December 2013 over Q3 December 2012.

The company said that the reported results for Q3 December 2013 are not comparable due to progressive divestments of its international businesses namely Dental Corporation, Australia, Fortis Hoan My, Vietnam and Quality Healthcare, Hong Kong.

Consolidated net profit in Q3 December 2013 included a one-time gain of Rs 424.16 crore due to the divestment of Quality Healthcare primary care business in Hong Kong in October 2013.

Commenting on the results, Mr Aditya Vij, Chief Executive Officer, Fortis Healthcare, said, "Our India business continues to show positive momentum. Our focus on operational performance is reflected in the strong results at FMRI, our new flagship hospital, in Gurgaon. The diagnostics business at SRL is also expanding rapidly and remains robust. We will continue to build on our strong foundation and intensify our pace of growth in India."

The company said that during the quarter it completed its strategic divestiture of Quality Healthcare, Hong Kong to BUPA. The international business now primarily includes RadLink and the Fortis Surgical Hospital in Singapore which now contribute approx. 5% to the overall revenues of the company.

Utilising the proceeds from the recent divestitures and the fund raising initiatives undertaken, the company said it has significantly strengthened its balance sheet. The net debt of the company as on 31 December 2013 stood at Rs 1071 crore, down from Rs 5351 crore as on 31 December 2012, reflecting a reduction of Rs 4280 crore. The net debt to equity ratio stood at 0.2x down from 1.0x as on 31 December 2012.

In a separate announcement, Fortis Healthcare said that its board has approved resignation of Mr. Balinder Singh Dhillon, Executive Director, from the board of the company, effective from 11 February 2014. However, Mr. Dhillon will continue to lead the Governance Function as President.

The board also approved appointment of Mr. Udai Dhawan as an Additional Director (Non-Executive Non Independent) nominated by Standard Chartered Private Equity (Mauritius) III (SCPE) on the board of the company effective from 11 February 2014 in pursuance of SCPE's agreement with the company.

Zee Entertainment Enterprises (Zee) announced that Telecom Regulatory Authority of India (TRAI) on Monday, 10 February 2014, issued a notification amending the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012, governing aggregation of channels.

The salient provisions in these amendments suggest that only the broadcaster shall publish the Reference Interconnect Offers (RIOs) and enter into interconnection agreements with Distribution Platform Operators (DPOs). However, in case a broadcaster, in discharge of its regulatory obligations, is using the services of an agent, such authorised agent can only act in the name of and on behalf of the broadcaster. Further, the broadcaster shall ensure that its authorised agent, while providing channels/bouquets to the DPOs, does not alter the bouquets as offered in the RIO of the broadcaster. In case an agent acts as an authorised agent of multiple broadcasters, the individual broadcasters shall ensure that such agent does not bundle its channels or bouquets with that of other broadcasters. A broadcaster may while making a bouquet of channels combine TV channels of its subsidiary company or holding company or subsidiary company of holding company.

Zee said that to give effect to these amendments, a time frame of six months has been prescribed for the broadcasters to amend their RIOs, enter into new interconnection agreements and file the amended RIOs and the interconnection agreements with the Authority.

The regulation states that a broadcaster can take services of an agent, and such an agent can act as an authorised agent of multiple broadcasters. The new regulation clearly delineates the roles and responsibilities of aggregators like Mediapor and broadcasters, the company said.

Both Zee and Star are committed to the partnership and will evaluate the opportunity based on the revised framework of the regulation, Zee said.

GMR Infrastructure reported a consolidated net loss of Rs 441.09 crore in Q3 December 2013, higher than net loss of Rs 217.45 crore in Q3 December 2012. Total income rose 13.89% to Rs 2783.54 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 11 February 2014.

OnMobile Global's parent OnMobile Systems Inc has announced a voluntary open offer to the public shareholders of OnMobile Global to acquire up to 1.19 crore equity shares, representing 10.03% of the fully diluted voting share capital, at Rs 40 per share. As on 31 December 2013, OnMobile Systems Inc held 3.90 crore shares, or 34.16% stake, in OnMobile Global.

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First Published: Feb 12 2014 | 8:59 AM IST

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