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Crompton Greaves Ltd has informed us that the Board of Directors of the Company at its meeting held on January 28, 2010, inter alia, has approved the following:
1. The Board of Directors have declared an interim dividend of 70% i.e. Rs. 1.40 per share.
2. The Board of Directors have recommended issue of Bonus Shares in the proportion of 3 (Three) new Equity Shares for every 4 (Four) Equity Shares, of Rs. 2/- each.
Read moreCrompton Greaves recommends Bonus + Interim Dividend
Harrisons Malayalam has announced that it has signed a contract worth Rs 50.28 crore with KTDFC. The contract involves construction of a central bus terminal for KSRTC at Trivandrum. Harrisons Malayalam, part of the RPG Group, markets its tea products under ‘Harrison’s Gold’, ‘Mountain Mist’, ‘Surya’, and ‘Spencer’s’ brand names.
PNB’s profits were up 0.5% yoy (+9% qoq, in-line with estimates) and were supported by its high NIMs (expands further), robust loan growth (well above industry), strong deposit franchise and some trading gains in 3Q. However, delinquencies increased substantially (mainly in the agricultural segment) and coverage levels dropped meaningfully – suggests caution given its large (16% of book) agri portfolio.
PNB’s margins expanded more than estimated to 384bps, driven by liability repricing. NPL uptick, lower coverage raises concerns on sustainability of earnings. Expect an EPS of Rs 108 and Rs 124.5 for FY10 and FY11 respectively.
Read morePunjab National + Union Bank Asset Quality Concerns Surface
Sterlite Industries consolidated PAT (adj) at Rs9.2bn in 3QFY10 rose 73% YoY (~7% below our estimates) gaining from an 83-87% jump in zinc-lead LME prices, better copper TC/RC margins and higher sales of power. Operating margin was 25% in 3QFY10 vs. 11% in 3QFY09 and 22% in 2QFY10.
Standalone (copper) PAT was Rs2.3bn. Operating profit rose 36% to Rs1.4bn and the operating margin was 3.8%. OPM was 61% vs. 26% last year due to 1) jump in zinc-lead prices; 2) 30% surge in lead volumes; 3) sale of 41,000t of zinc concentrate; 4) silver production up 44% YoY.
Read moreSterlite Industries – Zinc + Power boost Q3 bottomline
Pantaloon Retail reported 25%, 29% and 51% yoy growth in revenues, operating profit and adjusted net profit, respectively, in Q2F2010. PRIL
continues to report parent only numbers with no disclosures on subsidiary performance. Lack of transparency for consolidated results remains our key concern.
Although the revenue growth reported by the company in the value and lifestyle segments is 14% and 25%, respectively, overall revenue growth reported by the company is 25%. We believe that a
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 moreGodrej Consumer Products – Lower market share in winter