TCS' consolidated net profit rose 20.7% to Rs 4633 crore on 16.6% growth in revenue to Rs 20977 crore in Q2 September 2013 over Q1 June 2013. Operating margin stood at 30.1% in Q2 September 2013. The result was announced after market hours on Tuesday, 15 October 2013.
Commenting on the Q2 performance, TCS Chief Executive Officer and Managing Director, N Chandrasekaran said: "It has been another great quarter. We have demonstrated all-round strong growth across markets and industries, highlighted by efficient and rigorous execution. Our ongoing investments in industry-led solutions and our efforts to provide insights and articulate the relevance of the digital revolution to business is helping us gain mindshare with customers and differentiate the TCS brand in the market. We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they reimagine their future in multiple dimensions".
TCS Chief Financial Officer Rajesh Gopinathan said: "Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter. Our ability to manage operations with a degree of discipline has helped maintain the tempo of investments needed to sustain growth as well as provide superior shareholder returns".
TCS said that growth in Q2 was broad-based with all industries contributing to this holistic performance. Growth was led by Life Sciences, Media, Energy & Utilities and BFSI. All core markets grew smartly with Europe, North America and UK leading the pack, TCS said. There was balanced growth across IT and other service lines led by Asset Leverage Solutions, Assurance, Enterprise Solutions, Engineering Services and Infrastructure, TCS said.
On a consolidated basis, HCL Technologies' net profit rose 18.7% to Rs 1416 crore on 14% increase in revenue to Rs 7961 crore in Q1 September 2013 over Q4 June 2013.
"Against the backdrop of encouraging macro economic trends, these results cement HCL's position as a company with a strong and differentiated business model. HCL remains well positioned in both existing and emerging momentum markets - with exceptionally strong customer relationships driving sustainable growth," said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.
"YoY growth of 42.8% in net income and 14.1% in revenues continues the 8 successive quarter of HCL's story of profitable growth. Our focus on Generation 2 propositions like Enterprise of the Future in TM ITO and ALT ASM in Application Services continues to drive the company's quality of revenue," said Anant Gupta, President and CEO, HCL Technologies. "HCL continues to strengthen its position in the momentum markets of the industry with Europe crossing a milestone run rate of $ 1.5 bn reflecting a very healthy 23.6% growth YoY."
"With our layered hedging policy in place, we have been successful in delivering a Net Margin of 17.8% th for this quarter, this being the 8 straight quarter of Net Margin expansion. This was supported by healthy Free Cash Flow to EBITDA conversion of 75% (On LTM Basis). We maintain our focus on shareholder value creation, and our Return on Equity remained at a high of 34%," said Anil Chanana, CFO, HCL Technologies.
Axis Bank unveils its Q2 results today, 17 October 2013.
On a consolidated basis, MindTree net profit fell 4.9% to Rs 128.70 crore on 18.8% increase in revenue to Rs 769.60 crore in Q2 September 2013 over Q1 June 2013. Net profit declined due to higher forex gain in Q1 June 2013.
Bajaj Auto's net profit rose 13% to Rs 837 crore on 3% rise in turnover to Rs 5299 crore in Q2 September 2013 over Q2 September 2012. The company announced Q2 result on Wednesday, 16 October 2013. The net profit of Rs 837 crore is the highest ever quarterly profit recorded by the firm so far. The company recorded an all time high operating earnings before interest, tax, depreciation and amortization (EBITDA) margin of 23.1% in Q2 September 2013 as against 21.3% in Q1 June 2013 and 18.7% in Q2 September 2012.
After payment of dividend and cash thereon amounting to Rs 1518 crore during Q2 September 2013, as on 30 September 2013, surplus cash and cash and cash equivalents stood at Rs 6516 crore. As on 30 June 2013, surplus cash and cash and cash equivalents stood at Rs 6391 crore.
The company said that the outperformance in margins can be attributed to factors including transforming itself into an Indian multinational company with international business contributing 40% of total revenue. Over the last five years, strategic initiatives taken in order to enter into difficult markets like Africa is yielding rich dividends. The benefits are now further enhanced with rupee depreciation, it said. The company has focused on high margin products with 75% of Bajaj Auto's revenue generated by business verticles which operate on EBITDA margins in excess of 20%. The company also said that it operates on an essentially variable cost structure with fixed cost, including depreciation, interest and even employee cost was under 8%. This protects the company from any slowdown in demand as being witnesses in the domestic market over last few quarters.
Castrol India's net profit rose 21.94% to Rs 104.50 crore on 0.68% increase in total income to Rs 739.30 crore in Q3 September 2013 over Q3 September 2012.
Lupin said it has applied to the Reserve Bank of India (RBI) for its consent in the proposal of raising the shareholding limit of foreign institutional investors (FIIs) from 33% to 49% in the company's paid up capital. The company said that the RBI is examining the request.
L&T Finance Holdings said its committee of directors has approved the allotment of 2.5 crore listed 9% cumulative compulsorily redeemable preference shares of face value Rs 100 each at par on private placement aggregating to Rs 250 crore at its meeting held on 15 October 2013, to eligible allottees on pro-rata basis. The company made this announcement after market hours on Tuesday, 15 October 2013.
Bank stocks will be in focus after the latest data showed that the loan as well deposit growth of the banking sector has been slower so far in the current fiscal year than the Reserve Bank of India's full-year projection. Banks' loans grew about 11% to Rs 58.46 lakh crore, while deposits rose 12% to Rs 75.64 lakh crore during the period from 22 March 2013 to 4 October 2013. The RBI has projected loans to grow at 15% and deposits by 14% in the current fiscal year ending in March 2014. Banks' investments in government securities rose 12% to Rs 22.47 lakh crore during the period from 22 March 2013 to 4 October 2013.
Cadila Healthcare will be in spotlight after Zydus Cadila and Pieris AG, a next generation therapeutic protein R&D company, entered into an alliance for development and commercialization of multiple novel Anticalin-based protein therapeutics.. The collaboration combines Piens' drug discovery and early development capabilities with Zydus' expertise in biologics development, regulatory affairs and biologics manufacturing. Under the terms of the agreement, Zydus will take the lead in advancing Anticalin drug candidates through formal pre- clinical development and into clinical development, undertaking drug development in accordance with ICH guidelines. Zydus has been granted exclusive marketing rights in India and several other emerging markets, while Pieris retains exclusive marketing rights in key developed markets.
Mr. Pankaj P. Patel, Chairman and Managing Director, Zydus group said, "Collaborating with established biotech companies on differentiated drug candidates is an important component of Zydus ongoing transformation into an innovation-led global healthcare provider, arid we are pleased to add Anticalins to our novel biologics pipeline.' Piens CEO, Stephen Yoder, added, With Zydus' state-of-the-art manufacturing facilities and seasoned drug development team, this collaboration will allow Pieris to unlock value on a global scale in a cost-effective manner, significantly expanding the number of proprietary Anticalin programs we can advance into clinical trials.
The most advanced program in the collaboration is PRS-110, an Anticalin specific for c-Met, a target becoming increasingly validated across a broad spectrum of tumors, PRS-110, which is a pure antagonist due to its monovalent target engagement, has demonstrated the ability to inhibit both ligand-dependent and -independent c-Met activity in a variety of animal models_ Through this unique collaborative model, the companies seek to develop candidates to proof-of-concept and will explore out- licensing opportunities in Piens' territories at the appropriate time. The companies will share licensing revenues on mutually agreed-upon terms, Zydus Cadila said in a statement.
State-run Oil and Natural Gas Corporation (ONGC) will be watched after a media report suggested that one of the company's blocks in the Krishna-Godavari basin off the Andhra Pradesh coast has discovered reserves four times the previous estimate, at 100 million tonnes (mt). The PSU has stumbled upon rich in-place reserves of oil in block KG-DWN-98/2, earlier believed to hold predominantly gas.
Reliance Infrastructure (R-Infra) is reportedly planning to sell either all or most of its 11 road projects to pare debt. The aim is to reduce some of the Rs 21976.18 crore of debt it had on its books at the end of the last fiscal year, report added.
Phoenix Mills said after market hours on Tuesday, 15 October 2013 that the company has acquired an additional 29.29% stake in Offbeat Developers (ODPL), an associate of the company, from IL&FS Financial Services. Following the acquisition, the stake of Phoenix Mills in ODPL increased to 53.23% from 23.94%. Accordingly ODPL has become a subsidiary of Phoenix Mills with effect from 14 October 2013. ODPL has developed and operates 'Phoenix Market City Mumbai' at Kurla, Mumbai with an integrated mixed-use model comprising retail, commercial, entertainment and fine-dining outlets.
Glodyne Technoserve after market hours on Tuesday, 15 October 2013 said media reports about selling of its US based step down subsidiary IMS Unit DecisionOne is speculative in nature. However the company has further clarified that the company, in order to reduce its debt burden and improve liquidity, has been considering various options including in respect of its US based step down subsidiary DecisionOne Corporation including divestment of its partial or full stake or inducting strategic or financial partner. However the process is at a very primitive stage and has not reached at any material stage. If the company finds appropriate values for such monetization of its assets/ investments and when such process take any finality or reaches a material stage, company may disseminate information about it, the company added.
Birla Corporation said after market hours on Tuesday, 15 October 2013 BSE that the operations at the company's Durgapur cement units have been affected on account of severe 'Tornado' on 13 October 2013, which damaged local high tension line and pole structure. Damodar Valley Corporation along with the company has initiated necessary action for restoration of power supply and it is expected that the supply will resume in 10-12 days time. The production of cement can be resumed only after the restoration of power supply, Birla Corporation said.
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