The profitability of the company was affected due to oversupply scenario in the cement sector. The company had a capacity addition of 60 million tonne per annum (mtpa) last year. South India, which account for around 33% of the companys total sales volume, was affected due to lower offtake and shortage of wagons. Western and eastern India were constrained on logistics and partial disruption in operations.
Prices of coal, raw material and transportation expenses rose in the quarter. Hence, costs surged by 12% against the same quarter last year.
UltraTech Cement has also announced a capital outlay of over Rs 12,000 crore to be spent between now and the coming five years. The company chairman Kumar Mangalam Birla, while addressing shareholders on the 10th annual general meeting, said that the capex plan pertains to increasing the grinding capacity in Gujarat and setting up additional grinding units across locations. There would also be an expenditure on installing waste heat recovery systems and instituting bulk packaging terminals across various states. These projects will be funded through a judicious mix of internal accruals and borrowings. The company has a strong balance sheet with a debt-equity ratio of 0.35 and an interest cover of more than 14 times, said Birla. The quarter under review saw a fall in coal supply through linkages which compelled UltraTech to increase its coal purchase from the domestic market at a higher price and the balance requirement was met through imports. Imported coal prices rose from $76 per metric ton (pmt) to $110 pmt y-o-y basis. These factors have lead to a squeeze on margins.
Genpact net income dips on operating expenses
Genpact reported a decline of 6.2% in net income at $27.8 million for the second quarter ended June 30, 2010, as against Q2 of last fiscal. The company had posted a net income of $29.7 million in the April-June quarter of 2009, Genpact stated. Its revenues rose 12.7% to $307.6 million, up from $272.9 million during Q2 2009. The company generated $30 million cash from operations in the second quarter of 2010, down from $49 million in the second quarter of 2009. The decline was primarily due to increased working capital requirements, Genpact President and CEO Pramod Bhasin stated.
Novartis India profit declines marginally
Novartis India has posted a net profit of Rs 31.53 crore for the quarter ended June 30, 2010, marginally lower than a net profit of Rs 31.76 crore in the same period of last year. Income from operations stood at Rs 117.17 crore, up from Rs 161.24 crore in the year ago period. The pharma firms sales rose by 8.5% to Rs 122.2 crore aganist Rs 112.6 crore in the same quarter last year.
Tata Teleservices profit at Rs 557.8 crore
Tata Teleservices Maharastra on Thursday said its net profit for the quarter ended June was at Rs 557.8 crore as compared to a net loss of Rs 23 crore for the same quarter of the previous fiscal. The company commenced operations using GSM technology in August, 2009, and therefore, the results for the current quarter are not strictly comparable with those of the corresponding quarter. The company's total income stood at Rs 1,398 crore for the first quarter.
Aban Offshore profit at Rs 71.04 crore
Aban Offshore has posted a decline net profit to Rs 71.04 crore for the quarter ended June 30, 2010 as compared to Rs 79.49 crore in the same quarter in the year ago period. Total income has decreased to Rs 329.05 crore from Rs 344. 26 crore, the company said in filing to BSE.
NFCL total income rises to Rs 331.14 crore
Nagarjuna Fertilizers and Chemicals (NFCL) posted a 17% growth in net profit to Rs 27.13 crore for the quarter ended June 30, 2010, as against Rs 23.09 crore registered in the corresponding quarter last year. Total income during the quarter stood at Rs 331.14 crore as against Rs 329.5 crore registered in the corresponding quarter last year.
Shoppers Stop net soars on consumer confidence
Shoppers Stop reported a 297% jump in its net profit at Rs 10 crore in the first quarter of 2010-11 as against Rs 2.5 crore in the same quarter last year, on the back of rise in consumer confidence coupled with higher volumes, higher conversion ratio and increasing transaction size, said Govind Shrikhande, customer care associate & Managing Director of Shoppers Stop Ltd . The company had a like-to-like sales growth of 21% in lasat one quarter ending June, 2010.
GE Shipping net up 11% to Rs 173 crore
Great Eastern (GE) Shipping has reported 11% increase in its net profit for the quarter ended June 30, 2010, to Rs 172.99 crore as against Rs 154.17 crore in same quarter last year. However, its revenues for the quarter slipped by 17.8% to Rs 727.58 crore as compared to Rs 885.61 crore in same quarter last year.
HDIL Q1 net profit jumps two-fold
Housing Development and Infrastructure (HDIL) on Thursday over two-fold jump in net profit at Rs 234.33 crore for the June quarter of this fiscal. The company had posted a net profit of Rs 107.47 crore in the corresponding period last fiscal, HDIL said in a filing to the BSE. Total revenue during the first quarter also rose by 52.67% to Rs 450.92 crore from Rs 295.35 crore in the year-ago period.