Jindal Steel & Power in focus after Q2 earnings

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Jindal Steel & Power in focus after Q2 earnings

Jindal Steel & Power's consolidated net profit fell 2.26% to Rs 441.83 crore on 7.15% rise in total income to Rs 5183.18 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014.

Jindal Steel & Power (JSPL), notwithstanding several unfavourable developments during Q2 September 2014, including de-allocation of its coal mines, reduced demand for steel due to monsoon season and major difficulties encountered in importing raw material due to heavy congestion in ports and non - availability of rail transport out of ports. Earnings before interest, taxes, depreciation and amortization (EBITDA) in percentage terms increased from 30% in Q2 September 2013 to 32% in Q2 September 2014. However, due to 53% increase in burden of interest and depreciation, the PAT for Q2 September 2014 was lower by 12%. The company's cash profit during Q2 increased from Rs 907 crore in Q2 September 2013 to Rs 1308 crore in Q2 September 2014 - a net increase of 44%.

Hero MotoCorp (HMCL) announced its plans to enter the European markets by the end of 2015. In the first phase of its foray into Europe, Hero MotoCorp aims to launch its products in Italy, Spain and France; followed by the UK and Germany in the next phase of expansion. To begin with, the company will launch its first serial-hybrid scooter Leap in these markets, and subsequently bring more models including scooters and motorcycles. HMCL recently announced an investment of $800 million in building capacity across the globe in the next few years. Expanding aggressively over the past three years, Hero MotoCorp is already present in over 20 countries across Central & South America, East & West Africa and Asia. Italy is home to two of Hero's strategic alliances - Engines Engineering and Magneti Marelli -both based at Bologna. Engines Engineering is a technology partner of Hero MotoCorp while the latter has a joint-venture with Magneti Marelli in India for developing fuel injection technologies.

State-owned miner NMDC has slashed price of iron ore lumps by Rs 200 per tonne for November 2014, the first time it has opted for a rate cut in four months. However, the company has decided to roll over the last month's price for iron ore fines.

After the latest rate cut, the price of lump ore, used mainly by domestic steel makers, now stands at Rs 4400 a tonne from Rs 4600 earlier. The price of fines, however, remains unchanged at Rs 3160 a tonne.

NMDC, which reviews prices every month going by domestic demand, had not changed rates in the last four months, since July 2014.

Meanwhile, NMDC said that its total iron ore production rose 13.06% to 16.71 million tonnes in the 7-months period ended October 2014 over the 7-months period ended October 2013. Total iron ore sales rose 10.11% to 17.65 million tonnes in the 7-months period ended October 2014 over the 7-months period ended October 2013.

Crompton Greaves after market hours on Monday, 3 November 2014 signed a contract with the State Utility of Paraguay - Administracion Nacional de Electricidad (ANDE) for eight single and three phase transformers totalling 420 MVA, for the expansion of the country's 220 kV and 66 kV Electricity Network.

Crompton Greaves will manufacture the transformers in Mumbai, India and supply them in three lots. This contract represents the strengthening of approximately 15% of ANDE's current transformer capacity, the company said.

Commenting on this order, Avantha Group Company CG's CEO & Managing Director, Laurent Demortier said: “We remain focused on building the energy infrastructure of the region with our extensive range of technologically driven products, systems and solutions.”

Torrent Power reported consolidated net profit of Rs 23.07 crore in Q2 September 2014 as compared to consolidated net loss of Rs 29.29 crore in Q2 September 2013. Total income rose 19.96% to Rs 2783.74 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014.

Trent's net profit fell 26.7% to Rs 11.43 crore on 29.24% rise in total income to Rs 375.05 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014. The Scheme of Amalgamation of Landmark (Landmark), Fiora Link Road Properties (Fiora) and Trexa Admc (Trexa) with the company as approved by the High Court of Mumbai vide its order dated 21 March 2014, has become effective on 23 April 2014 upon obtaining all sanctions and approvals as required under the scheme and upon filing of certified true copies of the order with the Registrar Of Companies, Maharashtra. The appointed date of the scheme is 1 April 2013. Pursuant to the scheme becoming effective, the entire business including all assets, liabilities, duties and obligations of Landmark, Fiora and Trexa have been vested in the company with effect from 1 April 2013. The effect of the merger has been given in the accounts in the quarter ended 31March 2014. Accordingly, the results of the company for the quarter and period ended 30 September 2014 include the results of Landmark, Fiora and Trexa and are not comparable with the corresponding quarter and period of the previous year which does not include results of Landmark, Fiora and Trexa.

NHPC's board of directors at its meeting held on 30 October 2014, accorded its approval for discussions with NEEPCO regarding Siang Upper Stage-I & II Hydro Electric Projects. NEEPCO had earlier signed an agreement with Govt of Arunachal Pradesh (GoAP) in respect of Siang Upper Stage-II Hydro Electric Project.

Infosys announced on 4 November 2014, that it is helping Fayetteville Public Works Commission (FPWC) become more customer centric, operationally efficient, agile and smart grid ready. The two-year transformation program saw Infosys overhauling FPWC's core ERP business processes and implementing Oracle software platforms along with the Infosys Customer Self-Service Energy Manager (CSEM) solution. Infosys CSEM, which is part of the Infosys Smart Grid Suite of products, helps utilities enhance customer experience through self-service and manage usage through adoption of energy efficient programs. The transformation program covered critical functions across FPWC including customer service, finance, human resources, supply chain, work management and field services.

The new solution implemented by Infosys enables FPWC to streamline the billing processes and respond faster to service requests through a 360 degree view of customer data, offer customers greater visibility into their monthly bills through a new website and additional statistics on water and electricity service usage, improve communication between customer service representatives, dispatchers, and technicians, to boost workforce productivity, reduce missed appointments, service backlogs and overtime costs and comply easily with regulatory requirements of multiple organizations including the North American Electric Reliability Corporation, the Federal Energy Regulatory Commission, the North Carolina Utilities Commission and other cyber security enforcement agencies.

On a consolidated basis, net profit of Berger Paints India rose 6.96% to Rs 67.03 crore on 14.61% rise in net sales to Rs 1102.31 crore in Q2 September 2014 over Q2 September 2013. The board of Berger Paints India approved 2-for-1 stock split.

Gujarat Pipavav Port's net profit jumped 103.06% to Rs 89.52 crore on 41.69% rise in total income to Rs 189.30 crore in Q3 September 2014 over Q3 September 2013. The result was announced on Tuesday, 4 November 2014.

Ballarpur Industries announced on Tuesday, 4 November 2014, that Bilt Paper B.V. - BPBV, a step down subsidiary of the company has received $100 million from International Finance Corporation (IFC) and allotted shares to IFC aggregating to 14.29% shareholding in BPBV. On 3 October 2014 the company had said that BPBV had entered into definitive agreements with IFC for subscription to new shares worth $100 million at an implied pre money valuation of $600 million.

Clariant Chemicals (India) reported a net loss of Rs 1.32 crore in Q3 September 2014, compared with net profit of Rs 123.99 crore in Q3 September 2013. Total income from operations declined 27.91% to Rs 256.07 crore in Q3 September 2014 over Q3 September 2013. The result was announced after market hours on Monday, 3 November 2014.

Peninsula Land's net profit fell 90.44% to Rs 2.83 crore on 49.53% decline in total income from operations to Rs 53.81 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014.

Tube Investments of India's consolidated net profit rose 18.09% to Rs 100.18 crore on 11.78% growth in total income from operations to Rs 2483.76 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014.

Tide Water Oil (India)'s net profit spurted 571.67% to Rs 96.05 crore on 13.71% growth in total income from operations to Rs 230.06 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014. Tide Water Oil (India)'s board of directors at its meeting held on 3 November 2014, declared special interim dividend of Rs 100 per share for the year ending 31 March 2015.

Mahindra Lifespace Developers launched a new residential project- 'The Serenes' in Maharashtra making its foray into the weekend homes segment. The project, spread across 12 acres and located at Alibaug in Raigad district, marks the company's entry into the weekend home segment, the company said in a statement. For the project, Mahindra Lifespaces will develop just 49 villas in the initial tranche, with a combination of 3 and 4 BHK patio and courtyard villas. The villas will be designed by SAV, a well-known architectural and designing studio based out of London, the company said. The project offers an array of luxury amenities, including a spa, an open deck for yoga/meditation, a swimming pool, a putting green, a multi-cuisine restaurant among others, it said.

Wockhardt's consolidated net profit fell 97.37% to Rs 3.63 crore on 16.11% decline in total income to Rs 997.16 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014.

Monsanto India reported a net loss of Rs 4.81 crore in Q2 September 2014 compared with net profit of Rs 75.90 crore in Q2 September 2013. Total income rose 0.86% to Rs 101.57 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014.

AstraZeneca Pharma India reported a net loss of Rs 27.96 crore in Q2 September 2014, higher than net loss of Rs 1.22 crore in Q2 September 2013. Total income from operations declined 0.85% to Rs 114.67 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 3 November 2014.

Force Motors on 4 November 2014 reported 8.07% rise in production to 2,517 units in October 2014 over October 2013. Domestic sales fell 20.04% to 2,046 units in October 2014 over October 2013. Exports rose 7.93% to 136 units in October 2014 over October 2013.

Kwality's board of directors at its meeting held on Monday, 3 November 2014, allotted 2.07 crore convertible warrants at a price of Rs 48.25 per warrant.

SREI Infrastructure Finance announced after market hours on Monday, 3 November 2014, that its public issue of secured, redeemable non-convertible debentures (NCDs) with a base issue of Rs 250 crore has been oversubscribed by 1 33 times amounting to Rs 332 60 crore.

The issue had opened for subscription on 29 September 2014 and closed on 31 October 2014. SREI Infrastructure had filed shelf prospectus for raising Rs 1500 crore from the market, of which it has successfully launched the first tranche of Rs 250 crore.

Commenting on announcement, J. Moses Harding, Group CEO, Liability and Treasury Management, Srel Infrastructure Finance, said We are extremely delighted by our NCD issue getting overwhelming support from investors to get oversubscribed 1 33 times in difficult market conditions. The oversubscription also indicates a growing retail appetite for secure investment products. As part of our strategy to expand our retail investor base, we will continue to periodically tap the market with NCDs, he added.

GAIL (lndia) announced after market hours on Monday, 3 November 2014, the signing of a Memorandum of Understanding (MoU) with State Oil Company of Republic of Azerbaijan (SOCAR), Under the MoU, GAIL and SOCAR intend to jointly pursue LNG opportunities through capacity booking, LNG procurement and promotion of LNG projects globally.

Both companies shall also cooperate in optimization of LNG marketing, sourcing and shipping requirements. In addition, GAIL and SOCAR will pursue business opportunities in upstream assets across the world and joint investment in petrochemical projects.

Speaking on the occasion, Mr B C Tripathi, Chairman and Managing Director, GAIL said We are happy to enter into this strategic relationship with SOCAR. Skills and strengths of both the parties would be leveraged to explore business opportunities jointly in natural gas and LNG business including new business developments across the gas value chain.

Hathway Cable & Datacom announced after market hours on Monday, 3 November 2014, that a meeting of the board of directors of the company will be held on 13 November 2014, inter alia, to consider Q2 results andalso to consider sub-division of shares.

With respect to news article titled Infosys walks out of Bengaluru project citing lack of Infra, the company after market hours on Monday, 3 November 2014, confirmed the news to be accurate. The company has conveyed its intention to surrender the land citing lack of infrastructure. Further, the company reiterated that this did not in any way affect the operations or performance of the company.

Ponni Sugars (Erode) announced after market hours on Monday, 3 November 2014, that the profitability of the company would be under increased stress after Government of Tamil Nadu has exempted purchase of sugarcane from VAT but simultaneously imposed VAT at 5% on sugar of all kinds. In view of there being no VAT on sugar in the surplus producing regions of Karnataka and Maharashtra, Tamil Nadu sugar mills would be at a competitive disadvantage and their pricing power would get adversely impacted by reason of the 5% impost of VAT on sugar produced in the State of Tamil Nadu.

Symphony announced after market hours on Monday, 3 November 2014, that Impco S.de. RL.de. CV, Mexico, the subsidiary of Symphony, has received an order to cool 35 stores of 'EKONO', subsidiary of Wal-Mart, Chile, South America, by Symphony Central Air Coolers. The company believes that this will help it to penetrate its central air cooling business not only in Chile, but also in other countries of South America.

With reference to article titled GTL default, “Banks stare at fresh NPAs of Rs 6000 crore,” GTL Infrastructure clarified on Tuesday, 4 October 2014, that the contents of the article are false and baseless as GTL Infra is not in default of its dues to banks.

The company said it has an outstanding rupee loan of Rs 3432 crore as against Rs 6000 crore reported as non performing assets (NPA). GTL has paid its dues to banks to date and hence it is neither in default nor classified as NPA. GTL has not syndicated loan for acquisition of Aircel's tower business, the company further said.

Reports had stated that GTL Infra is having non performing assets of Rs 6000 crore failed to repay its restructured loans. The article had also stated GTL Infra raised syndicated loans from a group of banks in June 2010 to pay for Aircel Cellular's tower business.

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