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Tech Mahindra may gain on strong Q1 results

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Last Updated : Jul 28 2015 | 10:01 AM IST

Tech Mahindra's consolidated net profit rose 43.2% to Rs 676 crore on 2.9% growth in revenue to Rs 6294 crore in Q1 June 2015 over Q4 March 2015. The result was announced after market hours yesterday, 27 July 2015.

Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.8% to Rs 936 crore in Q1 June 2015 over Q4 March 2015.

Tech Mahindra said Q4 March 2015 results include the results of Lightbridge Communications Corporation (LCC), USA and SOFGEN Holdings (SOFGEN) which were acquired as 100% subsidiary effective from 2 January 2015 and 14 March 2015 respectively.

In dollar terms, Tech Mahindra's consolidated net profit rose 40.5% to $106 million on 0.5% growth in revenue to $989 million in Q1 June 2015 over Q4 March 2015.

The company's cash and cash equivalents as of 30 June 2015 stood at Rs 3350 crore.

Commenting on the company's Q1 performance, Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said that the company's results are in line with expectations and the management remains hopeful of improving the company's performance by expanding its business in the coming quarters.

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C P Gurnani, Managing Director & CEO of Tech Mahindra said that the company's strategic investments and initiatives across Digital are resonating well with the businesses it serves.

Ambuja Cements' net profit fell 44.7% to Rs 226 crore on 7.9% decline in net sales to Rs 2493 crore in Q2 June 2015 over Q2 June 2014. The result was announced after market hours yesterday, 27 July 2015.

Ambuja Cements attributed the decline in bottom line during the quarter to lower operating EBITDA (earnings before interest, taxation, depreciation and amortization) and due to additional depreciation charge of Rs 22 crore on implementation of Schedule II of the Companies Act, 2013.

The company's operating EBITDA dropped 34.7% to Rs 384 crore in Q2 June 2015 over Q2 June 2014.

Ambuja Cements said that Q2 June 2015 witnessed muted cement demand. Sales volume increased marginally by 1.6% to 5.88 million tonnes in Q2 June 2015 over Q2 June 2014. However, due to decrease in selling price by approximately 10%, overall net sales value was lower by 7.9% in Q2 June 2015 over Q2 June 2014. Lower cost of input materials coupled with improved operational efficiencies has helped in reduction of overall costs, the company said. Nevertheless, these could not fully mitigate the impact of lower sales realisation, the company added.

With regard to future business outlook, Ambuja Cements said that mixed macro-economic indicators are pointing towards sluggish growth in cement demand in short term. With the onset of monsoon throughout the country, cement demand is expected to remain subdued in the next quarter, Ambuja Cements said. The long term outlook for cement demand remains positive due to Government's initiatives towards housing, concrete roads, smart cities and emphasis on infrastructure developments, the company said. Ambuja Cements said it would continue to focus on improving its performance.

Ambuja Cements' board of directors at its meeting held yesterday, 27 July 2015, approved the amalgamation of Dirk India, a 100% subsidiary of Ambuja Cements with the company, subject to necessary approvals.

Maruti Suzuki India and Punjab National Bank unveil Q1 results today, 28 July 2015.

Aurobindo Pharma will be in focus as shares allotted by the company to the existing shareholders as bonus shares will be admitted for trading on the bourses today, 28 July 2015. A total of 29.19 crore shares allotted as bonus shares in the ratio of 1:1 on record date will be admitted for trading on the bourses.

Tata Global Beverages will be in focus as shares allotted by the company to the shareholders of Mount Everest Mineral Water, which was merged with Tata Global Beverages will be admitted for trading on the bourses today, 28 July 2015. A total of 1.22 crore shares allotted by Tata Global Beverages to the shareholders of Mount Everest Mineral Water will be admitted for trading on the bourses. As per the swap ratio for merger, Tata Global Beverages had allotted a total of 1.22 crore shares to the shareholders of Mount Everest Mineral Water in the ratio of 3 shares of the company for every four shares held in Mount Everest Mineral Water on record date.

Torrent Pharmaceuticals' consolidated net profit rose 75% to Rs 449 crore on 75% growth in revenue to Rs 1947 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 27 July 2015.

The company's EBITDA (earnings before interest, taxation, depreciation and amortization) rose 156% to Rs 974 crore in Q1 June 2015 over Q1 June 2014.

Torrent Pharmaceuticals attributed the exceptional growth in revenue and net profit in Q1 June 2015 to launch of a new product in US market, which currently has limited competition. The continuation of this is dependent on competitive market conditions, the company said in a statement.

Shares of Emami turn ex-dividend today, 28 July 2015, for final dividend of Rs 3 per share for the year ended 31 March 2015.

Shares of Piramal Enterprises turn ex-dividend today, 28 July 2015, for dividend of Rs 20 per share for the year ended 31 March 2015.

Power Finance Corporation will be in focus. The Ministry of Finance said yesterday, 27 July 2015, second CPSE disinvestment for the fiscal year 2015-16 was successfully completed yesterday, 27 July 2015 with the Power Finance Corporation (PFC) offer for sale (OFS) getting fully subscribed. On offer was 5% paid up capital of the company comprising 6.6 crore shares, each of face value of Rs 10. Out of the shares offered for sale, 20% were reserved for retail investors i.e. those investors who placed bids for shares of total value of not more than Rs 2 lakh. In addition a 20% discount was also offered to retail investors.

With this disinvestment, the government of India shares in PFC will come down to 67.8%. At the end of the day with total subscription of Rs 3747 crore the issue stood oversubscribed by 233%.The highlight of the issue has been the retail investor participation with 449% oversubscription amounting to Rs 1510 crore. The OFS has also been positively endorsed by the institutional investors. At Rs 2414 crore it was oversubscribed by 180%.

Just Dial's net profit rose 18% to Rs 33.17 crore on 21.42% rise in total income to Rs 175.74 crore in Q1 June 2015 over Q1 June 2014. The result was announced before market hours today, 28 July 2015.

KEC International's consolidated net profit jumped 167.28% to Rs 30.39 crore on 9.22% rise in total income to Rs 1881.16 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 27 July 2015.

Castex Technologies after market hours yesterday, 27 July 2015 said that the Allotment Committee of the board of directors of the company in its meeting held on 27 July 2015, allotted 4.87 lakh equity shares at Rs 103.005 per share upon the conversion of foreign currency convertible bonds (FCCBs) of $1 million out of FCCBs issue of $130 million.

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First Published: Jul 28 2015 | 8:40 AM IST

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