Enterprise Wireline Tariffs to Come Down – Reliance Communication

February 2, 2010 · Filed Under conference call · Comment 

In an analyst call, the management of Reliance Communications have said that Wireline / Landline Tariffs are under pressure as Wireless Tariffs have fallen significantly and the company si facing pressure especially from the Enterprise Segment.

Other highlights of the call are – Although RCOM’s RPM declined 4.6% in Q310, its EBITDA margin was down 156 bp; management mentioned this was due to continued investments in network and higher Read more

Tags:

Godrej Consumer Products – Lower market share in winter

January 25, 2010 · Filed Under conference call · Comment 

Godrej Consumer Products indicated that its lack of glycerine soap does not allow it to enjoy stronger market share in winter. Hence, it lost a 40-bp market-share qoq. Its recently launched moisturising soap is expected to drive growth in winter.

Though palm oil prices continue to trend upwards (and are now up 51% yoy), GCP pointed out that the forward cover would allow it to improve margins, and will not compel it to hike prices. It indicated it has
such cover till Apr 10. Read more

Tags:

Mr. Bhave wants Long Term Retail Participation

June 25, 2009 · Filed Under conference call · Comment 

Citigroup hosted mr. Bhave, Chairman SEBI as the keynote speaker. Here is what he told @ the conference.

We live in uncertain times. While the pain has receded in the last few months, and is probably behind us, the uncertainty remains. Mr. Bhave pointed out that even as the Sensex fell from 21,000 to 8,300 and is now back to 14,000 levels, the Indian markets have proved stable through the crisis, with settlements and cycles on schedule. This is a marked change from the mid-90’s when settlements were severely affected.

Mr. Bhave stressed the need to increase retail participation in the Indian markets. The retail investor has acted as a counterbalance to institutional inflows and outflows in volatile markets. Citing mutual fund redemptions last year, Mr. Bhave pointed out that the majority were corporate. The slew of measures announced last week were expected to improve retail investor interest in the market.

The Indian markets offer investors many features comparable with the best in the world. Mr. Bhave outlined several areas which could improve conditions further. These included providing DMA (Direct Market Access) and cross-margining facilities for the secondary markets, facilitating IDR (Indian Depository Receipts) for foreign companies wanting to list in India, and improving issuance in the primary markets.

Tags:

Jindal Steel and Power Plans to list JPL in the next one year time horizon

June 5, 2009 · Filed Under conference call · Comment 

Jindal Steel and Power (JSPL) held a conference call to disucss quarterly and yearly results and future growth plans. Sushil Maroo, Director (JSPL) and Managing Director (JPL) addressed the conference call

Highlights of the call

  • The Debt on the books of JSPL stands at Rs 4900 crore, while the debt on the books of JPL stands at Rs 3200 crore. The combined Cash balance stands at Rs 1300 crore.
  • The company plans to sell very small quantity on iron ore from the Bolivian mines over the period of next 2 months.
  • The Capex plan in JSPL is Rs 2000 crore each for the FY’10 and FY’11. The Capex plan in JPL for the FY’10 is around Rs 600-700 crore and for the FY’11 is around Rs 3000-4000 crore.
  • The total power profits contributed around 70% of the total profits. The management of the company expects this ratio of 70:30 tilted in the favor of power to continue over some more years.

JSPL

  • The raw material cost for the quarter under review includes write-down of high cost coking coal to the tune of Rs 590 crore.
  • Steel products sales are expected to increase to 2 Mt during FY’10 from 1.5 Mt during FY’09
  • For the quarter ended Mar’09 the Average realization was Rs 27000-29000 per tonne for the steel products and around Rs 13000-14000 per tonne for sponge iron
  • On the captive power front the company is planning to add 1350 MW (135 MW X 10) of capacity. From Dec’09 the company plans to commission 135 MW capacity each every 2 months.

JPL

  • JPL has announced further brownfield expansion of 2400 MW (4×600 MW) Power Plant at an estimated project cost of Rs 13600 crore. (US $ 2.83 billion). Order for Boiler Turbine & Generator (BTG) package has been placed on BHEL in December 2008.
  • This project will be completed in stages in the year of 2012 and 2013 and the same will be funded on the basis of 70:30 debt : equity. Debt of Rs 8400 crore will be tied up in due course of time and the equity of Rs 3600 crore will be arranged from internal accruals.
  • The average selling price for Merchant power sales was around Rs 5 + per unit
  • The sustainable Merchant Power rate for the next 2 years is expected to be in range of Rs 4-4.5 per unit.
  • Two Joint Venture Agreements executed with Hydro Power Development Corporation of Arunachal Pradesh (HPDCAPL) for development of 4500 MW Hydro Projects in Arunachal Pradesh
  • The Company plans to have a PLF of 90%+ for the FY’10.
  • Out of the Debt of Rs 3200 in JPL the company has plans to repay debt to the tune of Rs 800 crore by the end of the current Month (May’09).

Tags:

Tata Chemicals Capital expenditure plan for FY 2010 is Rs 250 crore

June 4, 2009 · Filed Under conference call · Comment 

Highlights-

  • The consolidated top-line of the company for the full year ended March 2009 more than doubled to Rs 12,257.66 crore mainly backed by the record growth in sale of urea during the year under review.
  • During the year the company incurred a notional forex loss of Rs 92.31 crore on account of notional exchange loss or mark-to-market restatement (under AS-11) of foreign currency borrowings and also during the year the company incurred an EO loss of Rs 234.19 crore on account of actuarial deficit in overseas pension liability and asset impairment loss of Brunner Mond.
  • Loss on sale of fertilizer bonds and the mark-to market loss on the outstanding bonds was Rs 78.03 crore.
  • The PBT after EO fell by 22% to Rs 917.31 crore during the year ended March 2009, whereas the net profit of the company after minority interest of Rs 111.71 crore fell by 33% to Rs 648.09 crore during the year ended March 2009.
  • The company’s subsidiary viz Brunner Mond, IMACID and GCIP posted decent growth during the year under review.
  • Brunner Mond sales increased to Rs 2,079 crore during the year ended March 2009, whereas IMACID posted a sales of Rs 868 crore during the same period. The sales from GCIP was Rs 1323 crore.
  • Brunner sales were higher due to higher volumes and price increases that was initiated during the previous 2 quarters. Prices in Europe are presently in the region of USD 240 per metric tonnes.
  • However increased imports from China into South East Asia has considerably impacted Magadi’s performance. Chinese imports into Latin America have impacted GCIP’s exports to these regions.
  • In the domestic market the demand has remained strong on the back of traction of the detergents and chemicals segments. The soda ash prices in the domestic market corrected by around Rs 500 per metric tonne and the spot price currently is in the range of Rs 10,000 to 11,000 per metric tonnes.
  • Sales volumes (including exports) for soda ash at Mithapur for the quarter ended 31 March 2009 stood at 695,000 tonnes.
  • The global soda ash industry’s capacity utilization has fallen to 75% due to weakening demand during the past few months. The prices have also fallen and are currently in the range of USD 160-175 FOB China. The strong Chinese position in the global soda ash market is a major competitive concern.
  • The demand in UK and US are seen stabilizing; however the rest of Europe is witnessing a decline in demand.
  • The reintroduction of 9% export incentive for Chinese producers by the Chinese government has increased their production besides making their produce cheaper in the global market.
  • However the 20% safeguard duty for the next 6 months on Soda Ash imposed by the Government of India has to an extent protected the domestic market.
  • Urea production at the Babrala plant has stabilized at over 3,500 tonnes per day levels. The previous quarter saw the highest ever urea sales on the back of improved availability after debottlenecking the plant.
  • The company received Rs 4,264 crore total subsidy from the government during the year ended March 2009. Out this total subsidy the cash subsidy was Rs 3,245 crore whereas the subsidy in the form of bonds was Rs. 1,019 crore. Thus the outstanding subsidy as on 31 March 2009 was Rs. 874 crore.
  • Feedstock for the 30,000 litres per day Ethanol plant is being sourced and production is expected to begin soon. Trial cultivations of Jatropha for the Bio-diesel operations are continuing smoothly.
  • Tata Salt continues at number one position with market share of about 44%. Tata Salt Lite has become the market leader in the low sodium salt category within the first year of its launch.
  • The Nitrogenous fertilizer production by the company was 1.02 million metric tonnes whereas the sales during the year were 1.07 million metric tonnes during the year ended March 2009.
  • The phosphatic fertilizer production was 0.56 million metric tonnes during the year ended March 2009 as compared to 0.68 million metric tonnes during the previous fiscal. The sales during the year however were 0.58 million metric tonnes during the year under review.
  • DAP consumption in India increased considerably, however continued high phosphoric acid prices may render manufacture of DAP unviable. DAP prices currently has stabilized at around USD 330 per metric tonnes.
  • The average phosphoric acid price for the company during the 4th quarter was USD 760 per metric tonnes and the current price has fallen to USD 630 per metric tonnes.
  • The total cash in the book including Rs 446 crore fertilizer bond is Rs 1452 crore as on March 2009.
  • The consolidated gross debt as on March 2009 was Rs 6,283 crore. This comprises borrowings of USD 475 million taken on the Tata Chemicals balance sheet and a loan of USD 300 million taken on the GCIP balance sheet.
  • The payment of USD 475 million loan in the company’s B/S will begin in June 2012 while the USD 300 million loan in GCIP’s B/S has begun in February 2009.
  • The debt after deducting cash, value of investments and fertilizer bonds as on March 2009 was Rs. 4,831 crore.
  • The consolidated inventory turnover day of the company was around 38 days, whereas the debtor’s turnover day was 49 days.
  • The company has planned a capital expenditure of Rs 250 crore during the current fiscal. Out of this Rs 50 crore would go in setting up a customized fertilizer plant at Babrala in the northern state of Uttar Pradesh, and the rest in normal maintenance of assets.
  • The capex earlier planned for FY 2010 was Rs 500 crore, which was lowered citing current economic turmoil.
  • The company declared a final dividend of 90% for the financial year ended March 2009.

Tags:

Edelweiss Capital Opening retail broking arm in next 3 months

June 4, 2009 · Filed Under conference call · Comment 
  • Edelweiss Capital For the fourth quarter ended Mar’09, reported 55% decline in consolidated Income from operations to Rs 180.08 crore. Income from all sources reported decline on y-o-y basis.
  • Gross profit declined by 51% to Rs 73.68 crore despite 95% increase in other income and 57% fall in total expenses. 74% rise in deprecation further brings Net Profit down by 50% to Rs 40.93 crore.
  • The PBT margin for the full year FY09 declined to 36.5% compared to 41% in FY08. This is largely due to two reasons – one, scaling down of market size and other due to STT of Rs 72 crore on treasury (Rs 62 crore during FY08).
  • The company currently has 4 integrated offices in leading metros and 18 branch offices across the country of which 3 branches are run on franchisees.
  • The Board of the Company has recommended a dividend of Rs 3 per share (face value Rs 5 per share)
  • Networth without minority interest at Rs 2115 crore for FY09. Networth including minority interest at Rs 2500 crore for FY09. Book value per share at Rs 282.3 as on FY09.
  • The Brokerage Services business has performed in line with the markets during the year. The company’s Research continues to cover over 125 stocks across 16 sectors accounting for about 65% of the total market capitalization.
  • Broking commission value fell more than 50% owing to shrinkage in volumes in market. Broking business roughly constitutes 55-60% of the Fee income of Rs 244.12 crore. While investment banking business income forms the remaining 45-40%.
  • The average daily trading volumes for FY09 is over Rs 3900 crore. Market share reminded at 6.4% of total average daily volumes for FY09.
  • The company was able to scale down its cost for the year. It brought down its staff head count from 1800 in FY08 to 1400 in FY09 due to this the employee cost came down by 19% to Rs 165.94 crore.
  • It has also brought down the risk collateral cover to 2.8x in FY09.
  • The Loans business has an asset base of around Rs 550 crore. It comprises of loans granted against capital market securities and is adequately collateralized.
  • The company has consciously brought down the book size given the current environment and focused more on collateral management. The interest income from loans business continues to be a distinct contributor to revenue streams.
  • Average yield on loan book is around 16.5-17% for FY09.
  • Balance sheet constitutes: Equity – Rs 2500 crore, Borrowing- Rs 700 crore (Rs 1800 crore in FY08), Bank FD’s – Rs 1300 crore.
  • The company’s main focus for FY10 will be maintaining liquidity and grow its balance sheet.
  • The Investment Banking activity in India has seen a marked slowdown in the year, both in the primary equity capital issuances and other advisory services. The company has closed 9 investment banking transactions in FY09.
  • Notable transactions amongst these were the acquisition of People Support, Inc. by Aegis BPO Services Limited for USD 250 million and private equity placement for SKS Micro Finance for USD 75 million.
  • The Debt Syndication Desk, which has been operational for about a year and a half so far, has gained a strong foothold and visibility in the market during the year.
  • The Alternative Asset Management activity in India has seen significant outflow from foreign investors during the year. It delivers highly valued investment advice, both direct and indirect to few select funds. During the year, this business launched a debt oriented fund. The AUMs/AUAs stood over USD 350 million as on March 31, 2009.
  • The Asset Management Company manages two Debt Funds, one Interval Fund and one Equity Fund as on 31st March 2009. It has recently launched an Equity Diversified Growth Equity (E.D.G.E.) Fund. The focus of this business continues to be on developing the product portfolio and investment management capabilities.
  • The company is setting up new retail broking business in 3 months time for which it has recruited 140 people. The retail branches will be both in franchise and own branches.
  • It has also started a new NBFC business which will focus more on collateralized liquid loans. The total market size of this segment is 25000-30000 crore and the company is targeting to build a business of 5000-7000 crore business in a years time.
  • Going forward, the company forecasts its Agency business, Investment banking and new retail broking business to contribute to its revenue stream while it maintains caution on finance business.

Tags:

PVR Company plans to add 42 additional screens during the current fiscal

June 3, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • The company during the quarter ended March 2009 reported just 5% growth in net operating revenues at Rs 58.01 crore. After providing for tax credit during the quarter, the net loss was Rs 1.11 crore as compared to a net profit of Rs 2.70 crore during the corresponding quarter of the previous year.
  • During the full year ended March 2009, on standalone basis, PVR reported 15% growth in net revenues to Rs 274.73 crore. Operating margins dipped 320bps at 16.8% due to higher other operating expenses and the staff cost. PAT for the year dipped 40% at Rs 12.65 crore.
  • The movie pipeline was weak during the year and the performance of some of the big budget movies, was dismal thus impacting the overall performance during the year.
  • The security concerns due to bomb blasts in various cities and the terrorist attacks in Mumbai also had its sober impact.
  • During the year under review there was only handful of successful movies, including GHAJINI, JAANE TU YA JAANE NA, RAB NE BANA DI JODI and SINGH IS KING!
  • The exhibition industry witnessed one of its low years, leading to decline in occupancies and overall profitability.
  • During the quarter ended March 2009, ticket sales grew 19% at Rs 35.1 crore, the F&B revenues grew 5% at Rs 10.97 crore whereas the income from revenue sharing however fell 54% at Rs 2.29 crore, and advertising & royalty income fell 6% at Rs 8.39 crore.
  • For the quarter footfalls increased 2% at 3.75 million however average occupancy decreased to 27.3% from 31.9% in the corresponding quarter of the previous year. The footfall during the full year was up by 7% at 17 million patrons.
  • The fall in occupancy was due to lack of good quality content and below expected performance of big-budget movies such as Chandni Chowk to China and Delhi-6. Besides there was hardly any content being released at the cinemas since March 2009.
  • The new properties, which are yet to stabilize, operated at sub-30% occupancy and further pulled down the overall occupancy for the year.
  • The properties under operation at the end of March 2009 were 26. The screens under operation at the end of March 2009 were 108 against 84 in the corresponding quarter previous year. Seat capacity at the end of March 2009 was 27,827 against 21,853 seats in the corresponding quarter previous year.
  • Geographical distribution, 49% seats are in North, 11% in South and 40% in West. The company plans to expand to the eastern market as well by launching a project in Kolkata during FY 2010-2011.
  • The revenues from comparable properties were down 6% at Rs 53.5 crore.
  • On comparable basis, the ATP (Average ticket price) was flat at Rs 133 during the previous quarter ended March 2009. Non-comparable/new properties ATP were at Rs 154. The overall ATP for the quarter was up 6% at Rs 140.
  • The average entertainment tax, as a % of gross ticket sales and income from revenue sharing fell to 14.67% during Q4 as compared to 16% during the corresponding quarter of the previous year. 46 screens of the 108 screens under E-Tax exemption. Currently, 42% seats enjoy E-Tax exemption.
  • The average ticket price increased 6% at Rs 140. ATP of comparable properties was flat at Rs 133.
  • During the quarter under review, PVR Blu-O, a joint Venture Company between PVR Ltd and Major Cineplex Group Plc based out of Thailand, opened its first and India’s largest Bowling Alley Center located at prestigious Ambience Mall in Gurgaon giving fillip to out door retail entertainment. Additional 2 more centers would be opened during the current fiscal.
  • During its 18-days of operation, the subsidiary grossed an income of Rs 68 Lakh and a net loss of Rs 36 lakh, largely on account of opening launch cost at the time of commencement of the property.
  • During the quarter under review, M/s CR Retail Malls (India) Pvt Ltd, a wholly owned subsidiary of PVR Ltd which operates a seven screen multiplex with 1847 seats, situated at Phoenix Mills Compound, Lower Parel, Mumbai, has been granted the exemption from the payment of Entertainment Tax under the provisions of Bombay Entertainment Duty Act, 1923, by the Maharashtra Government for a period of 5 years With this property, PVR now has 42% of its overall seat capacity and 39% of overall screen capacity under entertainment tax exemption.
  • The company opened 24 screens, including Mumbai’s largest multiplex at Phoenix Mills. During the year under review the company also opened India’s largest 24-lane, bowling center at Ambience Mall, Gurgaon.
  • The company is expecting a handover of approx. 30-40 screens over next six months from various real estate developers for fit outs.
  • For FY10, the company plans to add 42 more screens thus increasing the seat capacity by 10,000 by the end of the current year. The average capex per screen was Rs 80,000 – Rs 90,000 and the company plans to reduce it by further 10-15% during the current fiscal.
  • The upcoming screens locations are well chosen at prime locality in order to attract viable business.
  • The Karnataka Government has reduced the rate of entertainment tax applicable to cinemas from 40% to 30% with effect from April 2009. The company currently operates India’s largest, eleven screen cinema at Koramangla (Karnataka) and is expected to open another eleven Screen cinema in Bangalore during the year.
  • The Andhra Pradesh government has increased the maximum number of shows that can be showcased in a day from 4 to 5 shows per day. The company currently operates a three-screen cinema in Hyderabad, which will get benefited by the aforementioned change in regulatory scenario.
  • The ongoing tussle between the producers and multiplex operators has adversely impacted the availability of content during the current quarter. However this issue would be settled in a week’s time.
  • During the latter part of the year there are around 30-40 big-budget movies slated for a release. Thus this is expected to improve the performance of the company going ahead.
  • Around 2-3 movies is set to be released by PVR Pictures.
  • The exemption of service tax on lease rentals, reduction of Entertainment tax in Karnataka and relaxation on number of movie shows in Hyderabad is expected to drive the growth of the company in the current fiscal.
  • The consolidated cash in the book is Rs 115 crore (Rs 10 crore in PVR and Rs 105 crore in PVR Pictures) and the consolidated debt in the book is Rs 145 crore.
  • The company declared a dividend for the year ended March 2009 at 10% per share (Re. 1 each) on equity shares.

Tags:

Cinemax India Currently working 50-60% of normal operations

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • At the end of March 2009, the Company has operates 74 screens at 25 locations with capacity of about 20305 seats. The Company added two locations: Hyderabad and Kalyan adding 5 screens and 480 seats in Q4FY09.
  • The footfalls for the quarter were 85.14 lakh up from 65.57 lakh in the sequential quarter. The occupancy was down at 25% from 27% for sequential quarter. The ATP was stagnant at Rs 129 and F&B spent was stagnant at Rs 30.
  • The footfalls for the year were 85.14 lakh up from 61.91 lakh in the previous year. Comparable properties had footfalls of 67.64 lakh up from 61.91 lakh. The number of shows were 100892 up from 77491. The occupancy was down at 24% from 29% for the previous year. The ATP was stagnant at Rs 131 for comparable and Rs 118 for new properties and F&B spent was up at Rs 31 from Rs 29 for comparable properties and Rs 27 for new properties.
  • The Company plans to add about 55 screens across the country in FY10 of which 28 screens would come up in the next 60-75 days and the others by January 2010. Worst case scenario company would add atleast 40-45 screens in FY10. The capex for the addition would be about Rs 70 crore.
  • Currently, on the back of producers strike, the company is operating at 50-60% of its normal operations. For April 2009, the Company had revenues of Rs 8 crore and for May 2009 expects revenues of Rs 7-8 crore and hoping that the strike would end expects revenues of June 2009 to be Rs 13-14 crore. Currently, the Company is showing Regional movies and English movies. For the first 2 months of FY10, the Company is making a small loss.
  • As of March 31, 2009, gross block stood at Rs 235 crore: owned properties (9 properties) of Rs 70-80 crore and mall was Rs 30 crore. The net block was Rs 195 crore. Capital WIP stood at Rs 25 crore. The debt on books stood at Rs 75 crore.
  • For FY09, the distributors share is about 31-32% of the gross ticket sales (incl. entertainment tax).
  • For the fourth quarter of FY09, on consolidated basis, Cinemax reported 35% growth in operating revenues at Rs 33.42 crore with operating margins dipping 880bps at 10.6% and the PAT de-grew 56% at Rs 0.98 crore on the back of higher depreciation on the back of 7 new properties added during the period and higher than required depreciation provided.
  • Of the gross revenues of Rs 36.71 crore, 75% is ticket sales, 17% is F&B revenues and the balance is other operating revenues.
  • Of the other income of Rs 9.42 crore: mall rental was Rs 3.22 crore, other rental was s 1.34 crore, income from investments was Rs 3.59 crore and other income was Rs 0.85 lakh.
  • For FY10, the Company expects revenues of Rs 200 crore plus with EBITDA margin of 25-27% and net margin of 10%. The Company is expecting 54 movies to be Q2 & Q3FY10. The management expects occupancy rates to be at 25-27% for FY10.

Tags:

Sun Pharmaceuticals Expects revenue growth of 13-15% on consolidated basis

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • Net sales for the quarter ended March’09 on consolidated basis declined by 10% to Rs 1134.41 crore and Net profit declined by 45% to Rs 394.88 crore.
  • For the year ended March’09, net sales posted moderate growth of 27% to Rs 4272.30 crore and net profit rose by 22% to Rs 1817.73 crore.
  • Caraco Pharmaceuticals industries, a subsidiary of company has reported net sales of USD 51 million for the quarter, a decline of 67% over corresponding pervious period and net loss of USD 2 million for the quarter. Caraco Voluntary recalled all lots of Digoxin Tablets distributed prior to March due to size variability and write-off the same.
  • Caraco has received warning letter from US FDA in the October 2008 for some procedural issues in Detroit facility. US FDA has also completed follow up inspection for Detroit facility.
  • Other expenditure for the quarter increased by whopping 2000 bps as percentage to sales, net of stock adjustment to 40.9% (Rs 423.99 crore in the quarter as compared Rs 266.11 crore in the corresponding pervious period). The jump in the expenditure is on the back of products recalled in Caraco Pharmaceuticals (Company subsidiary) and forex losses.
  • Currently 500 scientists are working in the company and filed 230 patents of which 76 patents were approved.
  • Cash on the books as on 31st March’09 is Rs 3500 crore.
  • Domestic formulation grew by 81% to Rs 652.58 crore for the quarter ended March’09 and contributed 56% of total sales. The spurt in sales is mainly on the back of launching of one time (exclusivity) products and change in the products distribution models. The push in the domestic formulations in the quarter under review will lead to slow down in the first half of the current financial year.
  • Domestic formulation for the year grew by 33% to Rs 1959.66 crore. Excluding the sales from the one time (exclusivity) products sales increased by 25%.
  • Company has launched 9 control substance products in January 2009.
  • R & D expenditure for the quarter stood at Rs 74.84 crore and for the year at Rs 332.04 crore.
  • Company currently holds 36% in Taro Pharmaceuticals. Company need to invest Rs 1000 crore to acquire remaining stake in Taro.
  • Sun Pharma now holds 3.5% market share in the highly competitive pharma market, as per latest IMS ORG report.
  • Company has launched 17 products in the quarter taking total for the year to 42.
  • The company continues to rank number one by prescription share with 6 classes of specialist doctors, as per the latest report from CMARC.
  • Sun Pharma has filed 5 ANDAs where as Caraco filed 4 taking total filings on consolidated basis for the quarter to 9. For the year, company along with subsidiaries filed 37 ANDAs as against a guidance of 30. As on 31st March’09, 108 products await US FDA approval, including 7 tentative approvals.
  • A cumulative of 129 DMF/CEP applications has been made, with 71 approved so far.
  • Expects R & D expenditure would be around 7-8%.
  • Expects to file 30 ANDAs with US FDA.
  • Capex for FY’10 would be around Rs 170 crore.
  • Expects revenue growth of 13-15% on consolidated basis for FY’10.

Tags:

Voltas Order Inflow is low, but Order Book is healthy

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

The company has crossed milestone of Rs 4000 crore of turn over in FY 09. The total Revenues of the company stood at Rs 4063.85 crore (up by 33%), of which Rs 1500 crore came from International operations. Net Profit of the company was up by 21% to Rs 251.10 crore.

For the quarter ended March 09, the company has recorded 48% growth in its top line to Rs 1253.84 crore mainly driven by international revenues which increased by more than 3 folds (205%) to Rs 597 crore. However, the domestic revenues were nearly flat at Rs 658 crore as against Rs 655 crore in the corresponding previous quarter.

EVA (Economic Value Added) of the company by the end of FY 09 is positive and stood at 22%.

The overall carry forward order book for Electro Mechanical segment as on end of March 09 stands at Rs 4718 crore (as against Rs 4623 crore in corresponding previous year). The domestic order book pertains to Rs 990 crore of the total order book. In addition, the company has bagged Rs 300 crore worth of works from Kolkata and Chennai and an order from Hindustan Zinc also. The company has also observed steady growth in the Water Treatment business and has bagged Rs 50 crore worth of orders in FY09.

In the domestic market, the thrust on offering integrated MEP solutions continue and the same has resulted into order book position per year end showing a growth of 17%. The domestic electro mechanical business order book included 65% of stadium projects for prestigious Common Wealth Games 2010 in New Delhi, Godrej waterside Tech Park, Kolkata and orders in Industrial Sector.

The company is confident in portraying its growth rate in FY10 also, as it has covered its execution cycle for next 1-1 ½ years with significant orders to generate cash flow.

The Electro Mechanical projects and services segment revenues grew by 55% principally through execution of large overseas projects. These include prestigious projects such as District Cooling Plant at Dubai, International finance center and Burj tower projects (Dubai, UAE); Formula 1 Racing Track, Ferrari experience Ethihad towers complex (Abu Dhabi UAE); Bahrain City center (Bahrain), Sidra Medical and research centre (Doha, Qatar); and Sentosa Bay District cooling plant (Singapore).

The Burj Tower project that was a part of Dubai projects will be completed by September 09. The Ferrari project is expected for completion by December 09.

The Company is facing constraints largely on maintaining the number of days’ receivables in Electro Mechanical projects and services segment. The Company has been successful in growing its MEP business and this business comprises about 25% of the Order Book.

On the international front, various regions in the Middle East have announced their budgets for the coming year. According to these, there are likely to be significant Government backed investments in Abu Dhabi, Qatar and Saudi Arabia giving a boost to their economies. Crude oil prices seem to have stabilized over the recent past, and if they continue at similar levels, there will be less concern about budget deficits.

The company has also enquires from the international front particularly in Abu Dhabi and Qatar, but the order inflow time will be very high ranging from to 9-12 months. However, Irrespective of crude prices, the company feels that governmental investment in infrastructure and industrial projects in these regions are likely to continue, although their pace of finalization and implementation may be somewhat slow.

On the domestic front also the order enquires have came down, but with the government stimulus packages and slow improvement in the scenario of capital formation, the company was bullish in acquiring orders in short to medium term.

In order to accelerate the presence in Industrial segment, Voltas acquired 51% stake in Rohini Industrial Electricals in September 08. The company’s scope of Electro Mechanical offerings has consequently widened to include electrical and instrumentation contracts for projects in the domains of power, Steel, Oil and Gas, Pharma, Textile and other industries. This can be leveraged by both the domestic and overseas markets. Rohini Industrial Electricals has reported robust growth of 90% both in the top line and bottom line for FY09.

The Engineering Products and services segment constitute Textile machinery business, Machine handling business and Mining and construction business. This segment has reported dip in the profits at the segment level by 77% to Rs 7.12 crore, as the economy lags in capital formation.

The slowdown in Textiles Machinery business continues. However, with the garment exports posting rising trend in recent months supported by low rupee value against USD, the industry expects that the Textile Machinery market may turn the corner post mid-2009, although the recovery may be slow.

Material Handling Business has been slowing down in the recent past. An important positive is that with Rupee depreciation, imported machines have become prohibitively expensive, at both the low and high ends, making the market less competitive for Indian products.

The Mining and construction business has shown slow down along with the industry. The company has accumulated lot of Inventory in this business, which will be liquidated by the end of H1FY10.

The unitary cooling products business segment revenues achieved a growth of 11% to Rs 913.75 crore. In the room air conditioners, Voltas has registered sales growth of 8% as against market growth of 6% and increased its overall share to 16.5%. This was possible due to innovative product offerings based on energy efficiency and expansion reach. Commercial Refrigeration’s produces developed and manufactured at company’s new plant at Patnagar exhibited growth due to better product offerings and increased focus. The company has geared itself for making Pantnagar as the base for manufacturing the unitary cooling products.

The cash in hand of the company was Rs 121 crore, which is invested in Mutual funds as on March 31st 09. As on date the cash in Investments of the company has increased to Rs 190 crore.

Turnover per Rupee of employee cost, in the domestic market for Q4 FY09 is higher at Rs 16 against Rs 14 in the same quarter last year. In the similar lines, on the international front, it improved to Rs 8 per employee as against Rs 6 in the corresponding previous year.

The Board of Directors has recommended a dividend of Rs. 1.60 per share of Re 1/- each (160%) for the year 2008-09 (previous year: 135%).

Tags:

Next Page »