L&T's consolidated net profit fell 37.3% to Rs 606.19 crore on 6.53% increase in total income to Rs 20509.53 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 31 July 2015. L&T said that its net profit for the corresponding quarter of the previous year included divestment gains of Rs 1383 crore.
L&T's gross revenue rose 7% to Rs 20460 crore in Q1 June 2015 over Q1 June 2014. International revenue during the quarter at Rs 6609 crore constituted 32% of the total revenue. The company successfully won new orders worth Rs 26376 crore at the group level during the quarter ended 30 June 2015. International orders during the quarter at Rs 8110 crore constituted 31% of the total order inflow. Major orders during the quarter were secured by infrastructure and hydrocarbon segments. The consolidated order book of the group stood at Rs 2.38 lakh crore as on 30 June 2015, higher by 22% on a year-on-year basis. International order book constituted 26% of the total order book.
L&T said in a statement that the business environment stays challenging in the short term while the prospects in urban infra, transportation infra, power transmission, water, renewable energy and defence manufacturing remain promising in the medium term. The management is hopeful of the company benefitting from the growth opportunities as they emerge. The domestic infrastructure sector awaits the translation of various policy and budgetary initiatives into a definitive capital expenditure programme. While visibility of outlay by public sector/government undertakings has improved, private sector investment in the industrial sector is constrained by weak demand, low commodity prices and under utilisation of the existing capacities, L&T said.
L&T after trading hours on Friday, 31 July 2015, announced that the company intends to participate in the offer for sale of equity shares of its subsidiary L&T Infotech. L&T proposes to sell up to 15% of the equity shares held in L&T Infotech through the offer for sale. L&T Infotech is a global IT services and solutions provider.
Maruti Suzuki India's (MSIL) total vehicle sales rose 20.1% to 1.21 lakh units in July 2015 over July 2014. Total domestic sales rose 22.5% to 1.10 lakh units in July 2015 over July 2014. Exports rose 0.2% to 11,307 units in July 2015 over July 2014. The announcement was made on Saturday, 1 August 2015.
Mahindra & Mahindra (M&M) on Saturday, 1 August 2015 said that its total tractor sales dropped 11% to 15,460 units in July 2015 over July 2014. Domestic tractor sales fell 13% to 14,273 units in July 2015 over July 2014. Exports rose 15% to 1,187 units in July 2015 over July 2014.
Separately, M&M on Saturday, 1 August 2015 said that its total auto sales fell 3% to 34,652 units in July 2015 over July 2014. Total domestic sales dropped 6% to 31,087 units in July 2015 over July 2014. Total exports rose 41% to 3,565 units in July 2015 over July 2014.
Hero MotoCorp on Saturday, 1 August 2015 said that its total two-wheeler sales dropped 7.93% to 4.87 lakh units in July 2015 over July 2014. The retail sales of the company continue to be better than despatches. The industry expects the good monsoon and the oncoming festive season to revive sentiments and bring buoyancy in the market, Hero MotoCorp said.
Hero MotoCorp recently introduced two new motorcyles - the 150cc Xtreme Sports and 100cc Passion PRO, both of which have received very positive response from customers across the country, the company said. Hero MotoCorp said it is also gearing up to launch more new products in the months leading up to the festive season.
Shares of public sector banks (PSU banks) will be in focus after the finance ministry after trading hours on Friday, 31 July 2015, unveiled a long-term four-year plan for capitalization of PSU banks. The government proposes to make available a total Rs 70000 crore out of budgetary allocations for four years for capitalization of PSU banks. The government will pump in Rs 25000 crore for capitalization of PSU banks during the current financial year 2015-16. It will make available Rs 25000 crore in 2016-17 and Rs 10000 crore each in 2017-18 and 2018-19 for capitalization of PSU banks.
According to the finance ministry's estimates, PSU banks will require about Rs 1.8 lakh crore of extra capital over a period of four years until 2018-19. Of this requirement, PSU banks will be able to raise Rs 1.1 lakh crore from financial markets on the back of an expected improvement in their valuation. As of now, the PSU banks are adequately capitalized and are meeting all the Basel III and RBI norms. However, the government wants to adequately capitalize all PSU banks to keep a safe buffer over and above the minimum norms of Basel III.
The Rs 25000-crore earmarked for PSU bank recapitalization this year will be allocated through three tranches. In the first tranche, the government will make available about Rs 10000 crore to those banks which require support and every single bank will be brought to the level of at least 7.5% by Financial Year 2016. In the second tranche, about Rs 10000 crore will be allocated to top six big PSU banks viz. State Bank of India, Bank of Baroda, Bank of India, Punjab National Bank, Canara Bank and IDBI Bank in order to strengthen them to play a vital role in the economy. In the third and final tranche, the remaining Rs 5000 crore will be allocated to the banks based on their performance during the three quarters in the current year judged on the basis of certain performance parameters. This will incentivize them to improve their performance in the current year, according to a statement from the finance ministry.
Among key corporate earnings, Berger Paints India, Bharat Forge, HCL Technologies and Hero MotoCorp are scheduled to announce their quarter ended June 2015 results today, 3 August 2015.
Shares of sugar companies will be in focus after Prime Minister Narendra Modi called for assiduous efforts to increase ethanol blending of fuel and exploring all possibilities for export of sugar. The Prime Minister emphasized that farmers' interest be kept foremost at all times and issues related to sugar sector be monitored regularly, according to a statement issued by the Prime Minister's Office (PMO) on Saturday, 1 August 2015. Long-term measures with regard to the sugar sector were also discussed. The Prime Minister also reviewed the progress with regard to the Rs 6000 crore incentive package approved by the Union Government in June 2015. The statement was issued after Modi chaired a high level meeting on 1 August 2015 to review issues related to the sugar sector.
Shares of state-run oil marketing companies will be in focus. Indian Oil Corporation (IOCL) on Friday, 31 July 2015, announced reduction in petrol and diesel prices with effect from 1 August 2015. The retail selling price of petrol was decreased by Rs 2.43 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of petrol in Delhi has become Rs 64.47 per litre. The retail selling price of diesel was reduced by Rs 3.60 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi has become Rs 46.12 per litre.
IOCL said that since last price change, there has been a decrease in international prices of both petrol & diesel. Rupee-dollar exchange rate has, however, depreciated during this period. Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease. The movement of prices in international oil market and rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, IOCL said in a statement.
Reliance Industries (RIL) after market hours on Friday, 31 July 2015 said that Viacom Inc has acquired a 50% interest in Prism TV for Rs 940 crore (approximately $153 million). Prism TV owns and operates regional entertainment channels in India, including ETV Marathi, ETV Kannada, ETV Bangla, ETV Oriya and ETV Gujarati, all of which were recently rebranded under the 'COLORS' umbrella. The transaction was completed on 31 July 2015 between Nickelodeon Asian Holdings Pte., a wholly owned subsidiary of Viacom Inc., and Shinano Retail, a company effectively 100% owned by Reliance Industrial Investments and Holdings, a wholly owned subsidiary of RIL. The parties received clearance from India's Foreign Investment Promotion Board (FIPB) earlier this month, RIL said in a statement.
With this acquisition, Viacom Inc. will hold 50% of Prism TV and the remaining 50% interest will continue to be owned by the Network18 Group, Viacom's partner in the Viacom18 joint venture (JV).
On consolidated basis, Suzlon Energy reported net profit of Rs 1047.41 crore in Q1 June 2015 compared with net loss of Rs 750.74 crore in Q1 June 2014. Total income dropped 43.57% to Rs 2643.08 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 31 July 2015.
On 22 January 2015, AE Rotor Holding B.V. a step-down wholly owned subsidiary of Suzlon Energy and Its subsidiaries signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE. The closing was subject to customary dosing conditions which got concluded on 29 April 2015 and therefore, consolidated financial results of Senvion SE and its subsidiaries for the month of April 2015 has been considered for consolidation. Accordingly, the consolidated financial results for the quarter ended 30 June 2015 are to that extent not comparable with the prior period, Suzlon Energy said.
Commenting on the company's Q1 results, Mr. Tulsi Tanti, Chairman, Suzlon Group said that the company's Q1 performance reflects its turnaround journey. Suzlon's strategic vision incorporates the government's renewable energy target of 175 GW by 2022 and the conducive policy landscape, Tanti said. With the company's technology pedigree, comprehensive product portfolio and over 14 GW of global installations, it is well positioned to seize the market opportunities in India and other core markets. The company expects to supply 100 turbines of the S111 this year, Tanti said.
Mr. Kirti Vagadia, Group Head of Finance, Suzlon Group said that the company demonstrated strong operational performance after addressing its liquidity challenges and delivered strong EBITDA margin of 15.3% on 205 MW in the first quarter. Q1 June 2015 witnessed significant reduction in debt and interest costs, Vagadia said. Suzlon's key priority is to execute strong order book of 1,107 MW and maintain momentum in the order intake, Vagadia said.
Suzlon Energy's board of directors at its meeting held on Friday, 31 July 2015, inter-alia, approved issue of securities to the extent of Rs 5000 crore, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the company.
Shriram Transport Finance Company's net profit rose 4.79% to Rs 321.11 crore on 16.66% growth in total income to Rs 2353.34 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 31 July 2015.
The company's net interet income (NII) rose 18.92% to Rs 1150.67 crore in Q1 June 2015 over Q1 June 2014.
Total assets on balance sheet as on 30 June 2015 stood at Rs 60531.72 crore compared with Rs 54379.62 crore as on 30 June 2014.
On consolidated basis, Raymond reported net loss of Rs 14 crore in Q1 June 2015, lower than net loss of Rs 33 crore in Q1 June 2014. Net revenue rose 2% to Rs 1145 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 31 July 2015.
Raymond's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 14% to Rs 71 crore in Q1 June 2015 over Q1 June 2014. EBITDA margin improved to 6.2% in Q1 June 2015, from 5.6% in Q1 June 2014.
Commenting on the company's Q1 performance, Mr. Gautam Hari Singhania, Chairman & Managing Director of Raymond said that the current quarter witnessed a subdued consumer sentiment in the domestic market and sluggish demand in the exports market, particularly in the Garmenting and Automotive segments. Notwithstanding these challenges, the company has been able to register a marginal top line growth at the consolidated level and margin improvement at the EBITDA level. Raymond's continued thrust on investment in Brand building through higher Ad spends, Store Roll-outs, Store Renovation etc, will enable it to improve its performance going forward, Singhania said.
Powered by Capital Market - Live News
