Bharti Airtel’s consolidated Q1 net profit falls 74%

Jul 26, 2018 0

New Delhi– Telecom major Bharti Airtel on Thursday reported a 74 per cent decline in its consolidated net profit for the April-June quarter 2018-19 on a year-on-year basis.

Its net profit for the first quarter (Q1) of 2018-19 stood at Rs 97.3 crore, down from Rs 367.3 crore reported in the corresponding period of 2017-18, Bharti Airtel said in a statement.

The company reported a total revenue of Rs 20,080 crore for the period under review, nine per cent lower than 21,958.1 crore earned in the Q1 of FY18, it said.

Although its revenue from India and the South Asian region declined by 13.3 per cent to Rs 15,027.8 crore, the revenue from the Africa rose by around nine per cent to Rs 5,284.1 crore.

The company further said its total number of customers stands at 45.7 crore across 16 countries, up 21.2 per cent on a year-on-year basis, excluding divested units.

Commenting on the developments in the quarter ended June Gopal Vittal, MD and CEO, India and South Asia said: “The acquisition of Telenor’s India unit was completed during the quarter, and I am delighted to welcome all the Telenor customers into the Airtel family. Industry pricing continues to remain untenable.”

“However, led by our successful bundles, content partnerships and handset upgrade programs, our mobile data traffic surged 355 per cent on a YoY basis,” Vittal added.

MD and CEO for the Africa region, Raghunath Mandava said: “With 4G services live across 9 countries and continuing up-gradation of capacities across the OPCOs (operating companies), we remain best placed to capture the ever growing data market. We have rolled out 1,000 broadband towers during the quarter.” (IANS)

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Hindalco’s Novelis to acquire Aleris for $2.58 bn

Jul 26, 2018 0

Mumbai– Aluminium rolling company Hindalco on Thursday said that its wholly owned subsidiary Novelis Inc has entered into an agreement to purchase Aleris Corporation for $2.58 billion in a debt finance deal.

Aleris is a global aluminium rolled products major, headquartered in the United States. The acquisition is subject to customary closing conditions and regulatory approvals.

“The acquisition of Aleris is the next phase of our aluminium value added products growth strategy,” Hindalco Chairman Kumar Mangalam Birla was quoted as saying in a statement.

“This will solidify our position as the world’s No.1 aluminium Value-Added Products player. Post this acquisition, we are well placed to serve our customers across geographies in automotive and now the high-end aerospace segments.”

As per the statement, at a market segment level, the acquisition would enhance Hindalco’s competitive position in the Building and Construction (B&C) segment.

Moreover, Aleris has a wide base of manufacturing locations.

“This not only deepens the combined entity’s presence in developed markets like the US and Europe, but it also positions Novelis well in the emerging markets of Asia,” the statement said.

“Aleris has invested approximately US$ 900 million in the last few years in the automotive and aerospace businesses. The ramp-up of these capacities in the near-term will significantly bolster Novelis’ growth across regions and market segments. As a result, Novelis will have a further diversified business portfolio across regions, segments and customers.” (IANS)

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Equity indices hit record highs; Sensex touches 37,000-mark

Jul 26, 2018 0

Mumbai– The S&P BSE Senseex and the NSE Nifty50 touched thier new record highs during the intra-day trade session on Thursday.

The barometer Sensex climbed over the 37,000-mark, while Nifty50 touched its all time high of 11,178.85 points.

According to analysts, better than expected quarterly results along with positive global cues led both the indices to their new highs.

However, both the indices receded from their peaks due to profit booking.

At 12.27 p.m., the wider Nifty50 traded at 11,166.70 points, higher by 34.70 points or 0.31 per cent from its previous close.

The barometer Sensex traded at 36,978.37 points (12.27 p.m.) — higher by 120.14 points or 0.33 per cent — from its previous close of 36,858.23 points.

It touched a new intra-day benchmark of 37,026.18 points and an intra-day low of 36,894.82.

“Positive global cues and a raft of encouraging Q1 results pushed Sensex and Nifty into all time highs on Thursday,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

The major gainers on the Sensex were State Bank of India, ICICI Bank, Tata Motors, Power Grid and Bharti Airtel, while Asian Paints, Larsen and Toubro, Kotak Mahindra Bank, Wipro and Infosys were the major losers so far. (IANS)

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Hero MotoCorp’s Q1 net profit marginally down

Jul 25, 2018 0

Mumbai– Two-wheeler major Hero MotoCorp on Wednesday reported a marginal decline of 0.54 per cent in its net profit for the quarter ended June 30, 2018.

According to the company, the profit after tax (PAT) for the quarter slipped to Rs 909 crore from Rs 914 crore reported for the corresponding period of the previous fiscal.

The two-wheeler major said that its EBITDA (earnings before interest, tax, depreciation and amortization) margin was impacted by commodity costs, although offset to a large extent by pricing and continuing cost management.

As per a company statement “The impact on the PAT in the Quarter has been on account of the tax benefits coming to an end in Q4 FY18 at the company’s manufacturing facility at Haridwar.”

The company’s revenue from operations increased to Rs 8,810 crore from Rs 7,981 crore (net of excise duty of Rs 641 crore) in the corresponding quarter of the previous fiscal.

Sales-wise, Hero MotoCorp registered the highest-ever quarterly sales of 21,06,629 units in the first quarter of the fiscal with a robust 13.6 per cent growth over the corresponding period of the previous fiscal, when the company sold 18,53,647 units.

“The Indian economy continues to grow in the face of global headwinds from several fronts. However, the industry has been adversely impacted by the volatility in commodity prices driven by global trends,” Hero MotoCorp Chairman, Managing Director and CEO Pawan Munjal was quoted as saying in the statement.

“Despite these challenges, the industry will maintain the growth momentum during the rest of the fiscal, with consumption expected to remain high on the back of a normal monsoon and the upcoming festive season. At Hero MotoCorp, we are geared up to ride the positive momentum with new premium motorcycles and scooters, lined up for launch in the coming months.” (IANS)

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Godrej Interio eyes 25% revenue growth, plans Rs 400-cr investment

Jul 25, 2018 0

Kolkata– Godrej Interio, a leading furniture manufacturer, is looking at 25 per cent growth in revenue to Rs 2,500 crore in the current fiscal, a company official said here on Wednesday.

The company plans to invest Rs 300 crore in plants and machinery over three years whereas Rs 100 crore will be invested in the current fiscal to open 35 new stores across India, company’s Chief Operating Officer Anil S. Mathur said.

“Our revenue is expected to reach Rs 2,500 crore in the current fiscal while the company posted a revenue of Rs 2,000 crore in the last fiscal,” he told media persons on the sidelines of the opening of a flagship store here.

Of the company’s total revenue last year, the business to business (B2B) segment, including office furniture, turnkey projects, healthcare and lab furniture and others, clocked a revenue of Rs 1,200 crore while the revenue from business to consumer (B2C) segment was Rs 800 crore.

“We are expecting B2B segment to grow to Rs 1,500 crore and revenue from B2C to Rs 1,000 crore,” he said.

“Our total investments in plants and machinery in the next three years will be Rs 300 crore,” he said, adding that it has seven manufacturing facilities at Mumbai, Haridwar, Shirwal and Bhagwanpur.

In addition, the company will invest Rs 100 crore to open 35 stores across India.

In its portfolio of furniture, non-metal products have a share of 75-80 per cent while metal furniture has the remaining 20-25 per cent, he said.

The company, which has a presence in multi-brand online sites, is coming out with an own e-commerce site in 4-5 months, Mathur said.

Mathur said that the market for home furniture for organised players has been growing by about 20 per cent while the growth for overall market, including organised and unorganised, was about 8-10 per cent.

With the reduction of Goods and Services tax from 28 per cent to 18 per cent, the organised players became more competitive because overall taxation, including excise and sales tax in the pre-GST period, was 27 per cent.

He also said that the home furniture segment in India was estimated to be around Rs 50,000 crore and the organised players have 20 per cent market share. From a state perspective, the West Bengal market was estimated to contribute about Rs 5,000 crore.

“The Bengal market contributed nearly Rs 200 crore to our overall revenue last year,” he added. (IANS)

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Canara Bank net up 12% in Q1

Jul 25, 2018 0

Bengaluru– State-run Canara Bank posted Rs 282 crore net profit for the first quarter of fiscal 2018-19, registering 12 per cent annual growth from Rs 252 crore in the same period year ago.

The city-based bank also returned to black from a Rs 4,860 crore loss posted in the previous quarter, the last quarter of 2017-18.

“Operating profit for the quarter (Q1) under review grew 19 per cent annually to Rs 2,933 crore from Rs 2,472 crore in the like period year ago and 66 per cent sequentially from Rs 1,765 crore quarter ago,” said the bank in a regulatory filing on the BSE.

Total income grew 7 per cent annually to Rs 13,193 crore from Rs 12,304 crore year ago and 14 per cent sequentially from Rs 11,555 crore last quarter.

“Provisions and contingencies for the quarter also increased 17 per cent annually to Rs 2,582 crore from Rs 2,204 crore year ago but declined 72 per cent from Rs 9,075 crore quarter ago,” it said in the filing.

Provisioning for non-performed assets (NPA) also increased 9 per cent annually to Rs 2,466 crore from Rs 2,270 crore but declined a whopping 72 per cent sequentially from Rs 8,763 crore quarter ago.

Gross NPAs increased 19 per cent annually to Rs 44,660 crore from Rs 37,658 crore year ago but declined 5.9 per cent sequentially from Rs 47,469 crore.

Net NPAs too grew 9.8 per cent annually to Rs 26,694 crore from Rs 24,300 crore year ago but declined 6.5 per cent sequentially from Rs 28,572 crore quarter ago.

The company’s scrip of Rs 10 face value ended at Rs 258.90, gaining Rs 5.80 per share on the BSE from Tuesday’s closing rate of Rs 253.10 and opening price of Rs 253.40. (IANS)

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Bharti Infratel’s Q1 net profit down 4%

Jul 25, 2018 0

Mumbai– Telecom tower infrastructure provider Bharti Infratel on Wednesday reported a decline of 4 per cent in its net profit for the quarter ended June 30, 2018 due to co-location exits as a result of operator consolidation in the Indian Telecom Industry.

According to Bharti Infratel, the profit after tax (PAT) for the quarter slipped to Rs 638 crore from Rs 664 crore reported for the corresponding period of the previous fiscal.

However, the company’s revenue during the quarter under review increased by 4 per cent to Rs 3,674 crore from Rs 3,524 crore in the corresponding quarter of the previous fiscal.

“With the consolidation phase largely over, the Indian Telecom industry is now witnessing an integration phase as operators consolidate their networks and spectrum before the next phase of rollouts,” Bharti Infratel Chairman Akhil Gupta was quoted as saying in a statement.

“We remain confident of the long-term growth potential of the Indian telecom sector driven by rising user demand, availability of cheaper handsets, introduction of new technologies and availability of rich content to the customers.”

AS per the statement, the company has received Competition Commission of India (CCI) and Bombay Stock Exchange (BSE) approvals on the proposed merger of Bharti Infratel and Indus towers. (IANS)

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Ambuja Cement’s Q1 standalone net profit up 27%

Jul 25, 2018 0

Mumbai– Cement manufacturer Ambuja Cement reported a rise of 27.29 per cent in its standalone net profit for the quarter ended June 30, 2018.

According to the company, the profit after tax during the quarter under review rose to Rs 499 crore (including dividend from ACC at Rs 141 crore) from Rs 392 crore for the corresponding period of the previous year.

The company’s net sales grew to Rs 2,927 crore from Rs 2,817 crore earned during the quarter ended June 30, 2017.

“Ambuja is well positioned to benefit from the upsurge in rural demand and the encouraging external environment,” Ambuja Cement’s MD and CEO Ajay Kapur was quoted as saying in a statement.

“Our consistent customer-connect initiatives, pursuit of operational excellence and continued focus on the retail segment is helping us reduce the impact of rising cost pressures.”

However, on a consolidated basis the company’s net profit during the quarter under review declined by 5.40 per cent to Rs 525 crore from Rs 555 crore reported for the corresponding period of the previous fiscal. (IANS)

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Equity markets open on high note on Wednesday

Jul 25, 2018 0

Mumbai– The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a positive note during the morning session of the trade.

The Sensex of the BSE after opening at high of 36,928.06 points touched a low of 36,850.42 points.

On Tuesday the Sensex closed at 36,825.10 points.

The Sensex is trading at 36,881.95 points up by 56.85 points or 0.15 per cent.

On the other hand, the broader 51-scrip Nifty at National Stock Exchange (NSE) opened at 11,148.40 points after closing at 11,134.30 points.

The Nifty is trading at 11,144.10 points in the morning. (IANS)

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After fresh intra-day benchmark, Sensex sets new closing high

Jul 24, 2018 0

Mumbai– After touching a fresh all-time high – of 36, 902.06 points – earlier in the day, the benchmark BSE Sensex settled at a record closing level of 36,825.10 points on Tuesday.

Firm global cues and healthy buying in capital goods, metal and consumer durable stocks supported the gains in the Indian equity market.

Index-wise, the wider Nifty50 on the National Stock Exchange closed at 11,134.30 points, higher by 49.55 points or 0.45 per cent, from the previous close of 11,084.75 points

The BSE Sensex ended higher by 106.50 points or 0.29 per cent at 36,825.10 points. Its previous close was 36,718.60 points.

The Sensex hit an intra-day low of 36,709.72 points on Tuesday. The BSE market breadth was bullish with 1,958 advances and 676 declines. (IANS)

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