Fw: July 22 - TUE - Morning Meet - Aban Offshore, Dr Reddy, RIL, Zee, Satyam, Tata Power, IVRCL, HDIL, Tata Motors
Shiju Narayan
MORNING MEETING REPORT July 22, 2008
Aban Offshore Q1FY2009 results-ahead of estimates; FY2008 adjusted consolidated numbers in line with estimates
· Aban Offshore's Q1FY2009 results were ahead of our estimates on account of better than expected margins and higher other income.
· The topline has grown by 93.5% to Rs247 crore, in line with our estimates. The topline was mainly fuelled by contract renewals of its rigs Aban III, IV, V and its drillship Frontier Ice at higher rates.
· The operating margins have increased by 310 basis points to 56.5% on back of greater operating efficiencies and improved realizations. Consequently, the operating profits marked a growth of 104.9% to Rs139.5 crore.
· Higher other income, stable depreciation and taxes led to a whopping 152.3% growth in its net profits to Rs71.5 crore.
· Aban Offshore, in its board meeting, has approved the raising of its raising of capital through issue of Cumulative Redeemable Non-convertible Preference Shares on private placement basis. It has also passed an enabling resolution to raise capital through issue FCCBs/ GDRs/ ADRs etc. not exceeding amount equivalent to USD 400 million. Further it has approved raising additional capital through issue of Equity Shares / Fully convertible Debentures (FCD) / Partly Convertible Debentures (PCD) / Optionally convertible Debentures (OCD) or any other securities which are convertible into or exchangeable with the equity shares of the Company or other specified securities on preferential basis to qualified institutional buyers upto to Rs 1000 crores.
· For FY2008, the company has declared its key consolidated numbers. It has recorded a total income of Rs2128.04 crore for the fiscal FY2008 against Rs806.76 crore, and a bottomline of Rs123.06 crore against a loss of Rs14 crore in the previous year. However, there is a one-time translation loss of Rs180 crore on account of adverse exchange rate movements of Norvegian krone against the dollar. Adjusting for this, the consolidated net profits stood at Rs310 crore, which is in line with estimates.
Dr. Reddy's Labs - Q1FY09 results - in line with estimates
· Q1FY09 revenues stood at Rs1,504 crore, a growth of 25% yoy ; Excluding the cotribution from recent acquisitions, the like-to-like growth stood at 21%, which was encouraging and ahead of estimates.
· The company's performance in North America, Russia and Germany (Betapharm) was healthy, while the Indian market grew by just 9%.
· Betapharm grew by 20% in rupee terms, led by a 33% vlume growth and the steep appreciation of the euro against the rupee. However, despite the good volume growth, the revenues in euro terms were flat, which reflects the strong pricing pressures that exist in the German market. The volume growth was achieved due to easing of the supply chain issues - DRL has transferred 100 Betapharm products to its own supply chain network, of which 14 are being manufactured in India, thus reducing its dependence on Salutas to 5% from over 20% earlier. Despite strong pricing pressures, DRL is confident of turning around the Betapharm business.
· The Indian market performed lower than expectations, as key older brands did not do as well as expected (due to the restructuring of marketing divisions) and on account of a delay in the launch of new products.
· DRL witnessed a sharp decline of 560 basis points to 12.1% during the quarter, mainly on account of a bloated S,G &A costs. Though the management does not expect this cost to decline significantly in absolute terms, it does hope to leverage its S,G &A investment more in the coming quarters. However, the high S,G &A costs is a cause of concern as it is majorly depressing the profitability.
· As a result, the net profit declined by 26% t Rs135 crore.
· DRL has decided to buy out the 86% stake held by ICICI Ventures and Citigroup Venture capital in its R&D venture, Perlecan Pharma for a consideration of $18 million. Thus, Perlecan would become a 100% subsidiary of DRL going forward.
· The management has maintained its revenue growth guidance at 25% in rupee terms for FY2009, along with improved profitability.
HC to hear KG gas dispute today
An Indian court may resume today hearings into a natural-gas pricing dispute between Reliance Industries Ltd. and Reliance Natural Resources Ltd. Reliance Natural has claimed rights to more than 28 million cubic meters of gas a day from the field off India's eastern coast at $2.34 per million British Thermal units. Reliance Industries wants to sell to other users.
Zee entertainment board to consider buy back - positive
The board of directors of Zee entertainment enterprises shall meet on 30th July'08 to consider a proposal for buy back of shares.
Satyam looks to ride growth wave in Asia, Australia
Satyam Computer Services intends to decrease the US component of revenues by riding on the growth momentum in geographies such as India, West Asia and Australia. Co is working on plan where in 50% of revenue will come from US (currently 60%) while other 50% from Non-US market.
Tata Power acquires 26% in Bhutan hydro project.
Tata Power on Monday said that it has acquired 26 per cent stake in 114 MW hydropower project and will deliver the generated power at the India-Bhutan border. The company has bought 26 per cent stake in the project, while Tata Power trading has negotiated to purchase all the power generated from the project. Tata Power Trading will off-take power from the project for a period of 25 years.
IVRCL bags Rs 351.21 crore orders.
IVRCL Infrastructures has bagged five orders worth over Rs 351 crore. The company has bagged orders from Andhra Pradesh Infrastructure Corporation to build research buildings, Bangalore Metropolitan Transport Corporation for building traffic and transit management centre, Bangalore-based Pride Malls for developing a shopping mall, BMC to construct a reservoir and Narmada Water Resources for a pipeline project.
HDIL to develop 10-12 mn sq ft in 2008-09.
Housing Development & Infrastructure Ltd expects to develop 10-12 million square feet in the current fiscal year, including its Mumbai airport rehabilitation project. The company also expects to transfer another 85 to 100 acres for the ongoing airport project. Under the ongoing first phase of rehabilitation, it has already acquired 53 acres in Mumbai for Rs 1,900 crore.
Tata Nano: Pilot batch rollout to begin by Sept 15
The pilot batch of 25 Nanos will be ready by September 15. The Tatas have set an August 15 equipment-supply deadline for key vendors-Caparo Group, JBM Auto, Rucha Engineering and Rasandik Engineering-who will be supplying the core sheet metal for Nano. Tata Motors vendors have been told to ship Nano components from their other units within the stipulated time. Tata Motors plans to roll out 50,000 cars between October 2008 and March 31, 2009.
Uco Bank looks to raise Rs 325 cr
Uco Bank has started talking to institutional investors afresh for raising Rs 325 crore through a preferential allotment of equity shares by September. The bank will require funds for its lending. The Kolkata-based bank is actively looking to set up a financial services company with an initial capital of Rs 25 crore to take care of some non-fund business. It plans to take a 49 per cent stake in the proposed company.
Max India Ltd. restructures JV with New York Life
Max India has restructured its JV agreement with New York Life. The revised agreement will allow New York Life to buy an additional 24% stake in Max New York Life Insurance Company at a 10% discount to the fair market price instead of earlier arrangement of par value. Max India has also returned the Rs 174 crore advance deposit paid by New York Life for an additional 24% stake. This option is valid for next 8 years.
The company has also entered inot a 50:50 JV with Bupa Group, UK to foray into the health insurance space.
BoI in pact 3i Infotech
3i Infotech Ltd has signed an agreement with Bank of India to implement AMLOCK(TM), the company's anti-money laundering software, for undisclosed consideration. As part of this agreement, the company will undertake complete system integration, from procurement and installation of hardware including storage, database, middleware and report writer.
Artson receives Rs 36.27 cr order from HPCL
Artson Engineering, a subsidiary of Tata projects has bagged a Rs 36.27 crore order from HPCL-Mittal Energy to manufacture and erect four crude oil storage tanks at Bhatinda. The order would be executed within a period of 18 months,
Bilcare, Meadwestvaco acquire US pharma packaging firm
Bilcare along with US-based Meadwestvaco Corp, has acquired a pharmaceutical packaging company International Labs, Florida, for an undisclosed amount. The deal would help to make adherence packaging more widely available to consumers throughout the global marketplace. The partnership would combine Meadwestvaco's capabilities in healthcare packaging design and Bilcare's research and expertise in materials, products, processes and services.
Voltas to raise prices of ACs on input costs
Voltas has decided to raise the prices of air conditioners and packaged air conditioning units due to spiralling input costs. The prices of raw materials like steel and copper, both of which went up by more than 30 per cent in recent times, have pushed up operating cost of the company.
Videocon for Rs 800-crore retail spread
Videocon Retail, a part of Videocon Industries, plans to invest Rs 800 crore to expand its electronic retail format, Next Retail, and Planet M, the mobile, music, entertainment and lifestyle chain, in the next three years. The company plans to take the number of Planet M outlets to 1,500 from 200 at present in the next three years. Simultaneously, the number of Next outlets will be increased to 650 from 400.
Results today
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Companies |
PAT (Rs cr) |
% growth |
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ALFA LAVAL INDIA LTD |
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ASIAN PAINTS LIMITED |
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BANK OF RAJASTHAN |
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BIHAR CAUSTICS AND CHEMICALS LTD |
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CENTURY TEXTILES & INDUSTRIES LTD |
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CHESLIND TEXTILES LTD |
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CUBEX TUBINGS LTD. |
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COROMANDEL FERTILISERS LTD |
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DALMIA CEMENT (BHARAT) LTD |
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EMCO LIMITED |
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FOUR SOFT LIMITED |
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GRINDWELL NORTON LIMITED |
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HANUNG TOYS AND TEXTILES LIMITED |
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IDBI BANK LIMITED |
125.6 |
-18 |
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INDRAPRASTHA GAS LIMITED |
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LOTTE INDIA CORPORATION LIMITED |
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LUPIN LIMITED |
103.4 |
85 |
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NELCO LIMITED |
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NIIT TECHNOLOGIES LIMITED |
33.1 |
-5.7 |
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NOCIL LIMITED |
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OCL INDIA LTD |
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RANE BRAKE LINING LIMITED |
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RELIANCE PETROLEUM LIMITED |
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SEAMEC LIMITED |
21.2 |
8.5 |
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SIEMENS LTD |
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SIL INVESTMENTS LIMITED |
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STRIDES ARCOLAB LIMITED |
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TATA ELXSI (INDIA) LTD |
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THE BANK OF RAJASTHAN LTD |
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THERMAX LTD |
62.1 |
11.6 |
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TVS ELECTRONICS LIMITED |
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