Godfrey Phillips India net profit up over 61% in Q3

Feb 13, 2018 0

New Delhi– Cigarette maker Godfrey Phillips India on Tuesday reported a 61.26 per cent rise in its standalone net profit to Rs 61.99 crore in the quarter ended December 31, 2017 as compared to Rs 38.44 crore in the year-ago period.

On a comparable basis, gross sales during the quarter under review were at Rs 1,528.48 crore as against Rs 1,352.05 crore in the corresponding quarter of the previous fiscal.

The company also reported its total expenses in the third quarter of 2017-18 were Rs 545.59 crore as compared to Rs 1047.56 crore in the year-ago period. (IANS)

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Britannia net up 20% in Q3

Feb 12, 2018 0

Bengaluru– Food major Britannia Industries Ltd on Monday reported consolidated net profit of Rs 264 crore for the third quarter of 2017-18, registering 20 per cent annual growth from Rs 220 crore in the same period year ago.

In a regulatory filing on the BSE, the city-based company said consolidated total income for the quarter under review grew annually 9 per cent to Rs 2,603 crore from Rs 2.393 crore in the like period year ago.

Sequentially, however, net profit and revenue growth were flat (1.2 per cent and 0.3 per cent) from Rs 261 crore and Rs 2,596 crore last quarter.

“We had 15 per cent growth in the domestic market for the quarter owing to double-digit volume growth on the back of investment in brands and widening distribution network,” said Britannia Managing Director Varun Berry in a statement.

The company’s international business, however, continued to grow slower due to deteriorating geo-political situation and volatile currency in Africa and the Gulf region.

“Though dairy business growth was subdued, profitability improved on driving products with high margin and reducing our play in the less profitable commoditised categories,” admitted Berry.

On the commodity front, prices of key raw material were stable during the quarter.

“We have progressed well in building superior factories. Our greenfield factories at Guwahati and a dedicated facility for servicing export markets at Mundra (Gujarat) are nearing completion for operating them soon,” added Berry.

The company’s blue-chip scrip of Rs 2 face value gained Rs 131.70 when trading ended on the BSE to close at Rs 4,766.55 per share as against Friday’s price of Rs 4,634.85 and opening price of Rs 4,697 and a high of Rs 4,789.95 crore and low of Rs 4,697 during the intra-day session. (IANS)

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Gail’s Q3 net profit up over 28%

Feb 12, 2018 0

Mumbai– Natural gas utility major Gail (India) on Monday reported a rise of over 28 per cent in its net profit for the third quarter of 2017-18.

According to the company, its net profit increased to Rs 1,262.22 crore crore from Rs 982.92 crore reported during the corresponding period of FY17.

The company further said that its Board has recommended the “issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10 each fully paid up, subject to the shareholders approval”. (IANS)

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UBI posts Rs 637.53 cr net loss in Q3

Feb 12, 2018 0

Kolkata– State-run United Bank of India (UBI) on Monday reported a net loss of Rs 637.53 crore for the quarter ended December 31, 2017, as compared to a net profit of Rs 64.10 crore for the a year-ago period.

The net loss for the quarter was on the back of sharp fall in operating profit and a huge increase in provisions to cover rising bad loans.

During the quarter ended December, the bank’s operating profit saw a 65.76 per cent fall to Rs 181.53 crore compared to Rs 530.15 crore in the same period of the previous year.

During the third quarter, its provision and contingencies stood at Rs 1,074.35 crore, up by 82.5 per cent year-on-year. The bank’s provisions for non-performing assets rose 95 per cent to Rs 964.07 crore as against Rs 494.52 crore.

The lender provided Rs 167.44 crore during the third quarter of 2017-18 in respect of seven accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC), it said.

The bank’s asset quality deteriorated further in the December quarter as gross non-performing assets (NPAs) in absolute term rose 26.51 per cent to Rs 13,720.69 crore in the quarter under review.

Gross NPA as a percentage of total loans rose to 20.10 per cent in the third quarter this fiscal from 15.98 per cent during the same period of 2016-17.

In the December quarter, net NPA ratio rose to 11.96 per cent from 10.62 per cent in the same period last fiscal. (IANS)

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Idea raises Rs 3,250 cr through share allotment

Feb 12, 2018 0

Mumbai– Telecom major Idea Cellular on Monday raised Rs 3,250 crore through allotment of 32.66 crore equity shares to the Aditya Birla Group entities.

According to a statement from Idea Cellular, equity shares were allotted at an issue price of Rs 99.50 per share including premium of Rs 89.50 per share aggregating to Rs 3,250 crore.

The company said that as a result of “this preferential allotment”, the aggregate shareholding of the promoter group (Aditya Birla Group) in Idea has increased from 42.4 per cent to 47.2 per cent.

“This equity infusion reiterates the Group’s commitment towards the telecom business and confidence in its growth prospects,” Kumar Mangalam Birla, Chairman, Aditya Birla Group, was quoted as saying in the statement.

“Idea is in the process of bringing a world class 4G network to villages, towns and cities across India that will contribute to the transition of the Indian populace towards a digital lifestyle.

“With the planned fund raise combined with the recently announced sale of Idea’s towers and potential monetisation of the Indus stake, the company will be better capitalised to participate in the growth opportunities offered by the sector.”

As per the statement, the current equity infusion along with the proposed further capital raise of up to Rs 3,500 Crore, will reduce Idea’s net-debt and as a result Vodafone’s net-debt contribution to the merged entity will also be reduced by an equivalent amount.

“Additionally, the recently announced sale of Idea’s and Vodafone India’s standalone towers to American Tower Corp for an aggregate enterprise value of Rs 7,850 crore and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will further augment the long term capital resources of the company,” the statement said.

“These proceeds will significantly strengthen the balance sheet of the merged entity (Idea and Vodafone India) creating a resilient entity for the future.” (IANS)

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Cipla net up 4.7% in Q3

Feb 7, 2018 0

Mumbai– Drug major Cipla on Wednesday reported a consolidated net profit of Rs 403 crore for the third quarter of fiscal 2017-18, registering a 4.7 per cent annual net profit growth from Rs 385 crore in the same period a year ago.

In a regulatory filing on the BSE, the city-based drug maker said consolidated net sales for the quarter under review (Q3) increased 7.6 per cent annually to Rs 3,835 crore from Rs 3,564 crore in the like period a year ago.

Sequentially, net profit declined 7.4 per cent from Rs 435 crore a quarter ago and net sales dipped 3.8 per cent from Rs 3,988 crore a quarter ago.

On a standalone basis, the parent company’s net income grew 23 per cent annually to Rs 419 crore in Q3 from Rs 341 crore in the same period a year ago, but declined 26 per cent sequentially from Rs 566 crore a quarter ago.

Similarly, standalone income from sales grew annually to 11.7 per cent to Rs 2,892 crore in Q3 but declined 28 per cent sequentially from Rs 2,976 crore.

The company’s blue-chip scrip of Rs 2 face value ended on the BSE at Rs 569.15, gaining Rs 3.50 per share from Tuesday’s closing price of Rs 565.65 and opening of 582.75 and remained high at the same price after a low of 554.60 per share. (IANS)

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Sonata Software net up 22% in Q3

Feb 7, 2018 0

Bengaluru– IT services and technology solutions firm Sonata Software on Wednesday reported Rs 49 crore consolidated net profit for the third quarter of 2017-18 from Rs 40 crore in the same period year ago, registering 22 per cent annual growth.

“Consolidated revenue for the quarter under review grew 33 per cent annually to Rs 767 crore from Rs 575 crore in the like period a year ago,” said the city-based software firm in a statement here.

Sequentially, net profit, however, grew 9 per cent from Rs 45 crore quarter ago and revenue a whopping 80 per cent from Rs 427 crore.

Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 10 per cent annually to Rs 72 crore from Rs 65 crore year ago and 8 per cent sequentially from Rs 66 crore quarter ago.

“Strong top-line and bottom- line performance continued in the quarter. We have also acquired new marquee clients during the quarter,” said Sonata Chief Executive Srikar Reddy in the statement.

The company’s proprietary methodology to build digital businesses on its digital platform has gained acceptance by its clients, it said. (IANS)

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RBI holds repo at 6% thrice in succession, flags fiscal slip, inflation

Feb 7, 2018 0

Mumbai– The Reserve Bank of India (RBI) kept its key interest rate unchanged at 6 per cent for the third time in succession at its final bi-monthly monetary policy review of the fiscal, citing upside risks for inflation from rising global crude oil prices and various domestic factors. India Inc welcomed the decision as being “on expected lines”.

Announcing the first policy review after the Union Budget 2018-19 presented last week, the RBI said its decision to keep its repo, or short term lending rate for commercial banks, unchanged is consistent with the neutral stance of the central bank aimed at achieving its median inflation target of 4 per cent.

“Consequently, the reverse repo rate remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent,” an RBI statement said following the meeting of the six-member Monetary Policy Committee (MPC).

“We expect headline inflation to be at 5.1 per cent in the fourth quarter (January-March), including the impact of HRA (house rent allowance) to central employees, up from the 4.6 per cent in Q3,” RBI Governor Urjit Patel told reporters here after release of the MPC statement.

The continuing rise in food and fuel prices pushed India’s annual retail inflation rate over the five per cent mark in December 2017 to 5.21 per cent, from 4.88 per cent in November 2017.

Elaborating on the upside risks to inflation, the RBI listed half a dozen factors.

“First, international crude oil prices have firmed up sharply since August 2017, while non-oil industrial raw material prices have also witnessed a global uptick,” the MPC statement said.

“Second, the staggered impact of HRA increases by various state governments may push up headline inflation further in 2018-19, and potentially induce second-round effects.

“Third, the Union Budget 2018-19 has proposed revised guidelines for arriving at the minimum support prices (MSPs) for kharif crops. Fourth, the Budget has also proposed an increase in customs duty on a number of items.”

“Fifth, fiscal slippage as indicated in the Budget could impinge on the inflation outlook. Sixth, the confluence of domestic fiscal developments and normalisation of monetary policy by major advanced economies could further adversely impact financing conditions and undermine the confidence of external investors,” it added.

Five members of the MPC, including the three external ones and the Governor, voted in favour of the decision, while Executive Director Michael Patra voted for an increase in the policy rate by 25 basis points.

Noting the need for “vigilance” on inflation, the RBI also cut its earlier Gross Value Added (GVA), which excludes taxes but includes subsidies, growth forecast for the current fiscal to 6.6 percent, from 6.7 per cent.

In a move to speed up retail transmission by banks of the central bank’s cuts in its lending rate, the RBI said that it will link the Base Rate with the Marginal Cost of Funds-based Lending Rate (MCLR) from the next fiscal.

Since MCLR is more sensitive to policy rate signals, the RBI has decided to harmonise the methodology of determining benchmark rates by linking the Base Rate to the MCLR with effect from April 1, 2018, an RBI release said.

The RBI introduced the MCLR from April 1, 2016, as a system working in tandem with its policy rates, which commercial banks have been slow in accepting, preferring to continue with the Base Rate regime.

Besides, in a move to provide relief to the micro, small and medium enterprises (MSME) sector which was “badly hit” by the implementation of the Goods and Services Tax (GST), the RBI on Wednesday gave them an extension of up to 180 days to clear their loans to banks.

In addition, the RBI also removed credit caps on MSME in the services sector under priority sector.

The central bank further announced the scrapping of subsidies given to banks to install ATM machines and cash-recyclers and said that this would give a boost to digital transactions.

India Inc on Wednesday welcomed the RBI decision stating that it was “on expected lines”, while lauding move to extend the time for repayment of loans by MSMEs.

“Apart from the status quo in rates that was widely anticipated, the forbearance allowed to MSME borrowers, broadening the definition of priority sector lending and simplification of repo directions among others are all positive steps towards a stable macro environment,” State Bank of India Chairman Rajnish Kumar said in a statement here.

Industry chamber Assocham President Sandeep Jajodia said: “The RBI decision is a relief for India Inc, as some of the concerns raised by the central bank, including the inflation crossing the 5 per cent threshold and uncertainty over crude prices, are quite justified.

“The RBI has rightly taken note of the difficulties that arose for the MSMEs in the loan repayments following Goods and Services Tax implementation.”

Federation of Indian Chambers of Commerce and Industry (Ficci) President Rashesh Shah said: “Undoubtedly, there has been a missed opportunity of lowering interest rates significantly, which could have provided a major boost to private investment.

“Going forward, we hope that the RBI will give an equal consideration to the growth concerns, especially given the fact that inflationary pressures in India are largely due to supply side factors on the agriculture front.” (IANS)

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TVS Motor’s Q3 net profit up 16.3%

Jan 30, 2018 0

Mumbai/Chennai– Two-and three-wheeler manufacturer TVS Motor Company on Tuesday reported a rise of 16.3 per cent in its net profit for the third quarter of 2017-18.

According to the company, its net profit during the quarter under review increased to Rs 154.35 crore from Rs 132.67 crore reported for the corresponding period of the previous fiscal.

“During the quarter ended December 2017, the overall two-wheeler sales of the company including exports grew by 13.8 per cent to 7.99 lakh units…,” the company said in a statement.

“Three-wheeler sales of the company registered a growth of 67.7 per cent to 26,968 units in the quarter under review as against 16,081 units in the third quarter of 2016-17.”

Further, the company exported 1.40 lakh units of two and three wheelers in the quarter under review as against 0.99 lakh units in the third quarter of 2016-17 registering a growth of 42.4 per cent. (IANS)

 

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Piramal Enterprises’ Q3 net profit up 21%

Jan 30, 2018 0

Mumbai– Diversified conglomerate Piramal Enterprises on Tuesday reported an increase of 21 per cent in its consolidated net profit for the third quarter of 2017-18 financial year.

According to the company, its net profit during the quarter under review increased to Rs 490 crore from Rs 404 crore reported for the corresponding period of the previous fiscal.

Further, the consolidated revenues grew by 22 per cent to Rs 2,858 crore from Rs 2,342 crore in Q3 2016-17.

“We continue to deliver strong performance since last many quarters. The consistency in our performance is an outcome of the robustness of our business model and sharp focus on quality, compliance, legal and risk mitigation across our businesses,” said Ajay Piramal, Chairman, Piramal Enterprises.

“Nearly Rs 7,000 crore of capital, which we are in the process of raising from existing and new top quality global and domestic investors, will play an instrumental role in achieving ambitious growth plans across our businesses operating in Financial Services and Pharmaceutical sectors.”

Piramal added: “Our loan book continued to grow at an impressive pace at 68 per cent to Rs 38,036 crore while maintaining a healthy asset quality with gross NPA (non performing asset) of 0.4 per cent.” (IANS)

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