Mukesh Ambani's flagship company and index heavyweight, Reliance Industries (RIL) has announced its Q1FY10 numbers. Its standalone net profit declined 11.5% to Rs 3,636 crore from Rs 4,110 crore in the same period of last year.
The company's standalone net sales slipped 22.9% to Rs 32,055 crore versus Rs 41,579 crore, YoY. Its EBITDA (earning before interest, tax, depreciation and amortisation) also fell 3.3% to Rs 5,921 crore from Rs 6,121 crore.
Its sales were marginally lower-than-expected. The bottomline got hit due to higher depreciation and higher tax rate and refining which was a disappointment. Refining operations disappointed the street. However, operating profit margin (OPM) expansion was due to lower other expenses and higher depreciation. A poll suggested the net profit at Rs 3,981.7 crore, net sales at Rs 32,752.7 crore and EBITDA at Rs 6,202.3 crore.
Depreciation was up 41% at Rs 1,628 crore versus Rs 1,151 crore and other expenses were down 37% at Rs 2,080 crore from Rs 3,297 crore.
Tax rate was roughly about 21% of PAT versus about 14% of PAT (profit after tax). The reason might be the hike in MAT (minimum alternate tax).
Operating profit stood at Rs 4,293 crore and standalone Petchem revenues declined 22.4% to Rs 11,540 crore from Rs 14,871 crore.
Standalone refining revenues slipped 22.73% to Rs 25,180 crore as against Rs 32,587 crore, YoY.
Petchem EBIT margin improved to 18% versus 10.6% while refining margin declined to 4.4% from 9.3%.
PBIT (profit before interest and tax) margin improved to 13.2% from 12.3%.
The company reported GRM (gross refining margin) at $7.50 a barrel while street expected at $ 8-8.5 a barrel.
EPS (earning per share) declined to Rs 23.10 versus 28.30.
Friday, July 24, 2009
RIL margins may be under pressure; don't buy: Sanju Verma
Sanju Verma, CEO - Institution Biz, Proactive Universal Group, said even as inventory gains—due to a fall in crude prices in March—may prop up numbers of companies like Reliance Industries and other petchem majors, an investor must wait and watch before buying the stock. The company's EBITDA and refining margins will be under pressure, she said.
"However, it is more about the huge barrage of news that seems to be seeping in every now and then. Their spat with NTPC and RNRL, the fact that at some point there might be a renegotiation of the profit petroleum that they are likely to share with the government," she said.
"However, it is more about the huge barrage of news that seems to be seeping in every now and then. Their spat with NTPC and RNRL, the fact that at some point there might be a renegotiation of the profit petroleum that they are likely to share with the government," she said.
Targeting order book of Rs 20000cr by FY10: HCC
Hindustan Construction Company (HCC) has announced its Q1FY10 numbers. Its net profit declined to Rs 18.2 crore from Rs 30.8 crore year on year.
Its net sales went up at Rs 964.1 crore from Rs 865.9 crore and EBITDA (earning before interest, tax, depreciation and amortisation) margins stood at 12.8%
The company’s CMD Ajit Gulabchand, speaking on the results, said it would be difficult to sustain 30% year-on-year growth. He added that he saw FY10 turnover at Rs 3,500–4500 crore.
“Margins have improved on account of higher contribution from power,” he said, adding that the company was looking to reduce its net working capital by Rs 900 crore.
The company was targeting an order of Rs 20,000 crore by end FY10, Gulabchand said.
Its net sales went up at Rs 964.1 crore from Rs 865.9 crore and EBITDA (earning before interest, tax, depreciation and amortisation) margins stood at 12.8%
The company’s CMD Ajit Gulabchand, speaking on the results, said it would be difficult to sustain 30% year-on-year growth. He added that he saw FY10 turnover at Rs 3,500–4500 crore.
“Margins have improved on account of higher contribution from power,” he said, adding that the company was looking to reduce its net working capital by Rs 900 crore.
The company was targeting an order of Rs 20,000 crore by end FY10, Gulabchand said.
WHO issues notice to Matrix Labs, may suspend products
Some disturbing news for Matrix Laboratories. The World Health Organisation (WHO) is considering suspension of its products at one of its manufacturing facility. It has also issued a Notice of Concern to Matrix Laboratories. The notice was issued following inspections at Vizianagaram manufacturing site.
Speaking on the issue, Vikas Dandekar of pharmasianews.com stated that a WHO inspection has pointed at major deviations from WHO GMP standards at the site.
Speaking on the issue, Vikas Dandekar of pharmasianews.com stated that a WHO inspection has pointed at major deviations from WHO GMP standards at the site.
Global revival slow but India earnings a positive: Baer Cap
The current rally seen in global markets is more liquidity-driven than recovery-driven, Alok Sama, President and Founder of Baer Capital Partners, believes, as a result of which the S&P 500 could go to as much as 1,100. “However, I don’t buy the global recovery story,” Sama said, in an exclusive interview “The de-leveraging taking place in the West will last three-five years,” he added.
Recoverythat for the global economy would be L-shaped or, at best, U-shaped with a long base, Sama said, adding that earnings growth in countries like India remained a positive. “I’m beginning to subscribe to the decoupling theory again. Results like that of Maruti show that,” he said, adding he was positive on infrastructure and power themes in the country
Recoverythat for the global economy would be L-shaped or, at best, U-shaped with a long base, Sama said, adding that earnings growth in countries like India remained a positive. “I’m beginning to subscribe to the decoupling theory again. Results like that of Maruti show that,” he said, adding he was positive on infrastructure and power themes in the country
Mah Satyam back among top-5 IT cos; expert says still cheap
Mahindra Satyam, formerly Satyam Computer Services, continues to shine in the stock market. The stock, which has rallied more than 30% in the last seven days, crossed Rs 100 on July 23, and is now back among the top-five Indian IT companies’ list in terms of market capitalisation (with market cap of about Rs 12,000 crore) after Infosys, TCS, Wipro and HCL Tech.As of today, Mahindra Satyam’s market cap is greater than that of its parent company, Tech Mahindra.
Attributing the recent move up in its stock price to a bridge-up, Sanju Verma, CEO - Institution Biz, Proactive Universal Group, said the stock was still trading at a discount. “A lot of analysts are still not factoring in the 1100-1200 acres of land that Satyam holds. If they assume the company has Rs 300 crore of liabilities outstanding against that, even then, the land is still valued at something like close to Rs 11 per share. If you add this Rs 11 per share to the Rs 7 EPS you are talking of purely on the back of earnings momentum, the stock is still available at dirt cheap multiples,” she said.
In fact, the stock in back in the good books of mutual fund managers.
Mutual funds had invested Rs 90 crore in Mahindra Satyam as on June 30.
Says Madhusudan Kela, Equity Head at Reliance Mutual Fund, "After Mahindra has taken over, the confidence in Satyam has increased and obviously it is not an untouchable story anymore."
Tech Mahindra too has been making all the right noises for its new acquisition. In an AGM on July 23, the company said Mahindra Satyam would see a turnaround in four-five years and that it was looking at making Satyam a global entity competing with the likes of IBM in that time.
This bounceback of the Satyam Mahindra price marks the staging of a classic comeback for what was only a few years ago one of India’s premier IT companies before it was rocked by a multi-thousand crore scam in January this year and was written off a close to dead.
It’s been a roller-coaster journey for Satyam! The stock crashed to an all-time low of Rs 11.5 from Rs 200 levels on that one January day, when its erstwhile chairman, Ramalinga Raju, admitted to inflating the company’s balance sheet for several years. With 50,000 jobs at stake, the government took control of the management and soon initiated a bidding process in which Tech Mahindra emerged as the top bidder for Satyam with bid price of Rs 58/share and picked up controlling stake in the company.
Attributing the recent move up in its stock price to a bridge-up, Sanju Verma, CEO - Institution Biz, Proactive Universal Group, said the stock was still trading at a discount. “A lot of analysts are still not factoring in the 1100-1200 acres of land that Satyam holds. If they assume the company has Rs 300 crore of liabilities outstanding against that, even then, the land is still valued at something like close to Rs 11 per share. If you add this Rs 11 per share to the Rs 7 EPS you are talking of purely on the back of earnings momentum, the stock is still available at dirt cheap multiples,” she said.
In fact, the stock in back in the good books of mutual fund managers.
Mutual funds had invested Rs 90 crore in Mahindra Satyam as on June 30.
Says Madhusudan Kela, Equity Head at Reliance Mutual Fund, "After Mahindra has taken over, the confidence in Satyam has increased and obviously it is not an untouchable story anymore."
Tech Mahindra too has been making all the right noises for its new acquisition. In an AGM on July 23, the company said Mahindra Satyam would see a turnaround in four-five years and that it was looking at making Satyam a global entity competing with the likes of IBM in that time.
This bounceback of the Satyam Mahindra price marks the staging of a classic comeback for what was only a few years ago one of India’s premier IT companies before it was rocked by a multi-thousand crore scam in January this year and was written off a close to dead.
It’s been a roller-coaster journey for Satyam! The stock crashed to an all-time low of Rs 11.5 from Rs 200 levels on that one January day, when its erstwhile chairman, Ramalinga Raju, admitted to inflating the company’s balance sheet for several years. With 50,000 jobs at stake, the government took control of the management and soon initiated a bidding process in which Tech Mahindra emerged as the top bidder for Satyam with bid price of Rs 58/share and picked up controlling stake in the company.
daily calls for 24th july
RESEARCH: MARKET OUTLOOK: The daily historical volatility numbers (HV) of NIFTY has declined by 0.81 percent. The Implied Volatility (IV) of INDEX both call and put options declined to 33.89% and 33.95% respectively. This indicates traders are becoming more bullish and expect option prices to fall, hence being a call buyer may be a better alternative than being a put seller. Technically NIFTY is in bullish trend and the rally may be expected to test to 4910 levels in short term. For the day, NIFTY may open with an upside gap and it can be expected to trade at higher levels. NIFTY has immediate resistance at 4557 and 4601. If NIFTY breaks 4600 levels,it may rally upto 4693 levels. On the downside, the support for NIFTY is seen at 4463 and 4405 levels. Profit booking at higher levels cannot
9:37 AM 7/24 RESEARCH-Global Market (in %): DOW JONES (+2.12%), S&P 500 (+2.33%), NASDAQ (+2.45%), FTSE (+1.47%), DAX (+2.45%), NIKKEI(+0.83%), HANG SENG (+0.35%) & SGX NIFTY (+25 POINTS)
10:58 AM 7/24 RESEARCH: INTRADAY CALL (CASH): BUY SUZLON ABOVE 100.50 TGT 106 SL 99
12:38 PM 7/24 RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.03%), DAX (-0.04%), CAC (-0.06%)
1:03 PM 7/24 RESEARCH: INTRADAY CALL (CASH): BUY CAIRN ABOVE 246 TGT 257 SL 241
1:30 PM 7/24 RESEARCH: INTRADAY CALL (FUTURES): BUY NIFTY ABOVE 4550 TGT 4600 SL 4520
2:06 PM 7/24 RESEARCH: INTRADAY CALL (CASH): TATASTEEL TGT ACHIEVED.
(7/24/2009 3:25:22 PM): RESEARCH: INTRADAY CALL (FUTURES): BOOK PROFITS IN NIFTY FUTURES @ 4575
9:37 AM 7/24 RESEARCH-Global Market (in %): DOW JONES (+2.12%), S&P 500 (+2.33%), NASDAQ (+2.45%), FTSE (+1.47%), DAX (+2.45%), NIKKEI(+0.83%), HANG SENG (+0.35%) & SGX NIFTY (+25 POINTS)
10:58 AM 7/24 RESEARCH: INTRADAY CALL (CASH): BUY SUZLON ABOVE 100.50 TGT 106 SL 99
12:38 PM 7/24 RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.03%), DAX (-0.04%), CAC (-0.06%)
1:03 PM 7/24 RESEARCH: INTRADAY CALL (CASH): BUY CAIRN ABOVE 246 TGT 257 SL 241
1:30 PM 7/24 RESEARCH: INTRADAY CALL (FUTURES): BUY NIFTY ABOVE 4550 TGT 4600 SL 4520
2:06 PM 7/24 RESEARCH: INTRADAY CALL (CASH): TATASTEEL TGT ACHIEVED.
(7/24/2009 3:25:22 PM): RESEARCH: INTRADAY CALL (FUTURES): BOOK PROFITS IN NIFTY FUTURES @ 4575
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