Crests and troughs seen in first quarter results

Updated: Jul 30 2006, 05:30am hrs
Aditya Birla Nuvo

Aditya Birla Nuvo Ltd has posted an 83% jump in net profit from Rs 30.75 crore to Rs 56.28 crore on a stan-alone basis for the first quarter ended June 30, 2006.

This was despite higher interest burden and finance expenses of Rs 38.38 crore due to Nuvos acquisition of 15% additional stake in Idea Cellular. Turnover for the period increased 61.5% to Rs 783.18 crore on the back of a strong growth in its garments, carbon black, textiles and other businesses.

The results are not comparable with that of the corresponding quarter of the previous fiscal due to the merger of Indo Gulf Fertilisers Ltd and Birla Global Finance Ltd from September 1, 2005 and the previous fiscals figures are regrouped wherever necessary.

On a consolidated basis, Aditya Birla Nuvos turnover was up 88.6% to Rs 1,459 crore while net profit nearly doubled to Rs 66.7 crore. The share of the telecom business in the total consolidated revenue more than trebled from 4% in the comparable quarter of the previous fiscal to 13% in the April-June quarter this year.

The telecom revenues (Nuvos share in Idea Cellular) were Rs 201.5 crore compared to Rs 29.5 crore. Overall, joint ventures contributed Rs 676 crore to its consolidated turnover. The life insurance business was a drag on the profitability, with losses of Rs 19.3 crore.

The share of growth business such as telecom and information technology went up to 56% from 52% while that of businesses like rayon, textiles, carbon black and fertilisers declined to 44% from 48%.

VSNL

Videsh Sanchar Nigam Ltd (VSNL) posted a net profit of Rs 88 crore for the quarter ended June 30, down 30.7% as compared to Rs 127 crore for the same quarter last fiscal. Total income has marginally risen by 0.7% from Rs 944 crore for the quarter ended June 30, 2005 to Rs 951 crore this quarter.

While the company's revenues have gone up marginally, expenditure has also seen a rise by 6.5% to Rs 711 crore from Rs 667 crore during the year-ago period. Network costs have gone up from Rs 501 crore to Rs 536 crore and salaries and related costs have also risen from Rs 46 crore to Rs 59 crore.

The companys profitability has fallen mainly due to pricing pressure, said a VSNL official. Revenues from the enterprise and carrier data business have significantly fallen by 11.52% to Rs 284 against Rs 321 during the year-ago period.

Suzlon Energy

Leading wind power company, Suzlon Energy Ltd on Saturday posted a net profit of Rs. 193.60 crore for the quarter ended June 30, whereas the same was at Rs. 60.14 crore for the same quarter in 2005-06.

The total income was Rs 946.70 crore for the quarter ended June 30, 2006 where as the same was at Rs 315.62 crore for the corresponding quarter a year ago, the company informed the Bombay Stock Exchange.

The company has commenced sale of tubular towers through one of its wholly-owned subsidiaries and hence the sale of wind turbine generator (WTG) for the quarter ended June 30 do not include the sale of tubular towers, Suzlon said.

Therefore the sales realisations and gross margins during the quarter ended June 30 are not comparable with the results of prior periods. The shares of the company closed at Rs 1,035.75, down 0.80% at the BSE.

Nestle India

Nestle India Ltd has posted a decline of 2.10 in net profit at Rs 81.03 crore for the quarter ended June 30, as compared to Rs 82.77 crore for the same quarter in 2005-06.

The total income (net of excise) of the company increased 9.90% to Rs 685.59 crore for the quarter ended

June 30, from Rs 623.78 crore for the corresponding quarter a year ago, the company informed the BSE.

I am very pleased with the strong growth of 13.5% in net domestic sales supported by a healthy bottomline in an environment of continuing high input costs.

Also of particular satisfaction is the commissioning of the first phase of the Uttaranchal plant in record time, setting a new benchmark, Nestle India CMD Martial Rolland said.

Nestle India is the Indian subsidiary of global food major Nestle. The shares of the company closed at Rs 1,040, down 1.99% at the Bombay Stock Exchange.

Shoppers Stop

The K Raheja group promoted departmental store chain, Shoppers Stop Ltd has posted a 96% growth in net profits at Rs 7 crore for this fiscal years first quarter ended June 30 against Rs 3.56 crore in the comparable quarter last year.

The gross total retail turnover of the company for the reported quarter increased by 33% at Rs 181 crore against Rs 136 crore for the corresponding quarter last year.

Commenting on the results company CFO C B

Navalkar, we got a push in the revenues through 24% growth in the same store sales, while the private labels sales grew to 21.4% from 19.3%.

The company is targeting a growth of 25% in private labels sales in next two years, he said. On expansion plans, Navalkar said, four

Shoppers' Stop stores would be added this financial year at Mumbai, Lucknow, Delhi

and Bangalore scaling up the retail space to 1.4 million square feet from current one million square feet. During the April-June quarter, company added 2,060 square feet by opening two Crossword stores.

FE Bureaus with Agencies