|Market Commentary||Friday, July 27, 2012 08:57 Hrs IST|
Sterlite Industries, ACC in focus after quarterly earnings
Sterlite Industries (India)'s consolidated net profit declined 27% to Rs 1202 crore on 8% growth in net sales/income from operations to Rs 10591 crore in Q1 June 2012 over Q1 June 2011. Sterlite said its earnings before interest, taxation, deprecation and amortization (EBITDA) declined 15% to Rs 2337 crore Q1 June 2012 over Q1 June 2011. Sterlite said increased sales realization on account of steep rupee depreciation was offset by lower metal prices, lower volume of zinc, lower power sales at Balco and higher cost of production. The bottom line was additionally impacted by mark-to-market loss of Rs 217 crore on account of foreign currency loans and higher interest cost of Rs78 crore, Sterlite said. Depreciation cost jumped 23.33% to Rs 518 crore in Q1 June 2012 over Q1 June 2011 due to the capitalization of new plants at Zinc India operations and Sterlite Energy (SEL), Sterlite said.
Cement major ACC said after market hours on Thursday, 26 July 2012, its consolidated profit after tax jumped 26.33% to Rs 414.52 crore on 15% growth in turnover to Rs 2918.98 crore in Q2 June 2012 over Q2 June 2011. ACC said there was a steep escalation in major input costs, including slag, fly ash, gypsum and power in Q2 June 2012. Further, the sharp hike in railway freight rates with effect from 6 March 2012 substantially impacted both inward and outward costs, ACC said. The cement market has been growing steadily and barring seasonal fluctuations the demand for cement is expected to maintain the steady pace of growth in the near term, ACC said with regard to future business outlook. The company's board of directors declared interim dividend of Rs 11 per share for the year ending 31 December 2012.
ICICI Bank, Grasim Industries, NTPC and Punjab National Bank will unveil Q1 results today, 27 July 2012.
On a consolidated basis, Tata Communications reported a net loss of Rs 142.86 crore in Q1 June 2012, lower than the net loss of Rs 215.45 crore in Q1 June 2011. Net sales rose 26.1% to Rs 4107.39 crore in Q1 June 2012 over Q1 June 2011.
Bata India net profit rose 28.45% to Rs 52.65 crore on 17.23% rise in net sales to Rs 503.33 crore in the quarter ended June 2012 over the quarter ended June 2011.
Gujarat Gas Company net profit declined 45.24% to Rs 52.89 crore on 32.82% rise in net sales to Rs 765.90 crore in the quarter ended June 2012 over the quarter ended June 2011.
Indraprastha Gas (IGL) said that Petroleum & Natural Gas Regulatory Board (PNGRB) has filed a Special Leave Petition (a copy of which has been received by the company) in the Supreme Court against the order dated 1 June 2012 passed by Delhi High Court.
On 1 June 2012, the Delhi High Court had quashed the 9 April 2012 order of PNGRB, whereby it had slashed the tariffs of IGL by around 60% and had also asked the company to return the extra money to its customers with a retrospective effect from 1 April 2008. The Court said that PNGRB has no power to fix any component of network tariff or compression charges for any entity having its own distribution network.
On 9 April 2012, the regulator PNGRB had ordered IGL to cut network tariff by around 60% retrospectively from April 2008. IGL, the sole distributor of CNG (compressed natural gas) and PNG (piped natural gas) in Delhi and adjoining areas, in its petition had challenged the regulator's order terming it to be invalid. It had contended that the regulator had no right to fix the network tariff and compression charge for CNG supplied by it to consumers.
State Bank of India raised $1.25 billion on Thursday, 26 July 2012, by selling five-year bonds due in 2017 at 4.125%. The sale took place through the bank's London branch. The bonds will be listed on Singapore Stock Exchange.
Bosch has proposed to suspend the manufacturing operations at the Bangalore plant on 27 July 2012, 28 July 2012 and 30 July 2012 and at the Nashik plant from 30 July 2012 to 31 July 2012 to avoid unnecessary buildup of inventory.
Bombay Dyeing & Manufacturing Company turns ex-dividend today, 27 July 2012, for dividend of Rs 5 per share for the year ended 31 March 2012 (FY 2012).
Wockhardt had entered into an agreement with Danone for divestment of its nutrition business. The company said that on 26 July 2012 it closed the said transaction for a consideration of Rs 1280 crore.