Seasonal Magazine Corporate Results Coverage by John Antony

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VOLUME 11 ISSUE 2 FEBRUARY 2013

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INVEST LIKE WARREN BUFFETT VOLKSWAGEN’S REVOLUTION IN CAR MAKING CARS FOR INDIAN SUPER RICH TOP 7 EMERGING TECHNOLOGIES BOEING SHOWS NO COMPANY IS TOO BIG TO FAIL WORLD’S BEST PLACES TO DO BUSINESS BANKS-IN -FOCUS: CORPORATION BANK KARUR VYSYA BANK

COVER STORY

FEBRUARY 2013

TopSet100 stocks to Gain on

Q3 PERFORMANCE

hat makes a company and its stock really change their trajectory, from south to north? In the short-term many factors can cause it, like, positive sectoral news, institutional buying etc. But on the longer term, what really moves stocks is only one thing - performance a.k.a. earnings. Analyses of almost all multibagger stocks in the past reveal this first-principle of the market. In other words, if you plot the earnings-per-share graph and the stockprice graph of any historical wealth creators like Infosys or Reliance, one can easily see that both the graphs are quite similar, the only difference being that the stockprice graph is a bit lagging in time to the EPS graph. In fact, if someone was only glued in to the EPS graph and mercilessly disregarded all other signals, he or she would never have missed any multibagger stock from its infancy onward. And can earnings be predicted? Only very few Indian companies are in the habit of providing earnings guidance, and even fewer are those who consistently perform according to their own guidance. That is why quarterly earnings reports from thousands of listed companies are still keenly watched by all serious investors - both institutional and retail. Of course, many brokerages and analysts try to predict earnings, but like the recent Q3 results showed, there are more misses than hits, with even consensus estimates being proven wrong. And when well-regarded estimates go wrong, there is double the danger - as, on such consensus estimates the stock would have run up higher than deserved, making the fall even more deeper, when reality hits in the form of the latest quarterly numbers. On the positive side too, there are different

kind of positive numbers. Turnaround results are a keenly watched development, as it typically causes a sharp change in trajectory for the stock. For example, a positive turnaround by way of either YoY or QoQ growth will surely make the stock surge as the past several quartersâ&#x20AC;&#x2122; underperformance would have corrected the stock to a great degree. On the other hand, a negative turnaround will cause not only a severe correction in the stock, but is often regarded as a first signal of hidden corporate governance issues. Positive turnarounds and consistent quarterly numbers are also another short-term indication, that this performance is more likely to continue. Another type of powerful quarterly numbers is when a company posts powerful growth on both the traditional YoY parameter as well as the more radical or difficult QoQ metric. Such performance shows that the company is growing at a faster pace, which will often cause the stock to be re-rated, which means that the market would be assigning it a higher price not just on earnings expansion but on P/E multiple expansion. Quarterly numbers are also important for stakeholders other than shareholders, like, for the promoters, management, employees, lenders, business partners, associates etc, as everyone wants to do business with healthily growing companies. But with thousands of stocks and hundreds of sectors to monitor, quarterly performance reviews are a difficult task for most stakeholders. To make this task easier, Seasonal Magazine brings you â&#x20AC;&#x2122;The Earnings Power Listâ&#x20AC;&#x2122; that identifies turnaround performers, best performers, and aboveaverage performers, based on Q3 numbers. Needless to say, given a positive market scenario, these are the stocks that are set to scale up, at least till Q4 or annual results are out by April beginning to May end, and most probably, much beyond.

Top 100 stocks Set to Gain on Q3 Performance

Central Bank of India

TURNAROUND SUS AT CENTRAL BANK entral Bank of India’s year-on-year performance in Q3 has been quite good on most fronts. While net profit rose by 59.3%, net interest income also rose by 19.6%, showing that the core lending business is growing satisfactorily. The result is also a far cry from the one-off lossmaking quarter of Q4. In fact, even the sequential or QoQ performance for this quarter has its good points like total revenue growing by 2.43%. However, the Mumbai based public sector lender couldn’t match the last two sequential quarters’ bottomline outperformance, based equally on higher operating and interest expenses. Otherwise, Q3 numbers signal that the turnaround that started with Q1 of this fiscal is continuing at this large-sized lender. CBI could even make Net NPA remain flat at 3.79% on a QoQ basis. Chairman & Managing Director MV Tanksale’s strategies seems to be working in the right direction. The bank has already achieved 12% credit growth for the first nine months of this fiscal, and is now confident of achieving RBI’s target of 16% credit growth for the whole year. While many peer banks are struggling on this front, CBI’s strategy of concentrating on home loan and SME loans has come to the aid of the bank on achieving the desired credit growth target. Central had disbursed home loans worth Rs 6,000 crore in the first nine months of the current financial year. The bank is now expecting a further uptick in their home loan offtake - of around Rs. 4000 crore more - after RBI further cut lending rates recently. To facilitate meeting such targets, Central Bank had recently scaled down their base rate from 10.50 per cent to 10.25 per cent. As a result of this, most lending rates from Central will decrease. At the same time, though deposit rates too will marginally come down, the bank has been prudent to offer timelimited schemes through which short-term deposit targets can be met. It is a win-win situation for the bank as well as its deposit customers. For example, the bank’s Chennai headquartered South Zone recently did a soft launch of a new fixed deposit scheme Cent 101 - in which the bank will pay 8.55% interest, which is among the highest in the industry now. Under this scheme Central

MV Tanksale, CMD

FEBRUARY 2013

STAINS

will also offer 9.05 per cent to the senior citizens. The scheme is suitable for many needs as it addresses a wide range - with minimum amount that can be deposited under this scheme being Rs 1000 while maximum limit is Rs 10 crore. The scheme has been an instant success with CBI South Zone attracting Rs. 58 crore within days. Earlier, the bank came out with a similar plan for 555 days - Cent 555 - which was a great success. On the credit front too, the bank has been uniquely proactive. A recent example was the Mega Credit Camp for all its branches in the key Mumbai and Thane regions. Despite being a single day camp, loans amounting to Rs. 123.75 crore were distributed to over 347 customers from 86 branches in these two regions. Growing its MSME business has been another key focus area under Chairman Tanksale. Recently, the bank tied up with Small Industries Development Bank of India (SIDBI) for enhancement of credit flow to MSME sector. To shore up its capital and thus power further growth, Central Bank of India will raise capital up to Rs 2,046 crore by mid-March through a preferential allotment route as part of the capital infusion by the government. Post the capital raising, the tier-I capital of the bank will go above 8 percent with a capital adequacy ratio of around 12 percent.

Top 100 stocks Set to Gain on Q3 Performance

WOCKHARDT’S PROFIT DOUBLES IN Q3, PROVES STOCK RALLY IS JUSTIFIED nvestors were keenly awaiting Wockhardt’s results as its stock had run up almost 370% in the year-to-date. However, the Pharma major didn’t disappoint as consolidated net profit doubled to Rs 428 crore in the third quarter of financial year 2012-13, from Rs 213 crore in the year ago period. The surge in bottomline was more impressive as growth in consolidated net sales was 18.7%, to Rs 1,435 crore from Rs 1,208 crore during the same period. Profitability was up with ‘Earnings before Interest, Tax, Depreciation and Amortisation’ (EBITDA) surging 45% YoY to Rs 544.8 crore and operating profit margin rising by 700 basis points YoY to 38% in the third quarter. Net profit included one-time gain of Rs 10.6 crore on divestment of nutrition business, which is an after-effect of the CDR process. Other income increased to Rs 14 crore from Rs 8.5 crore YoY. Wockhardt’s business in the US , for the three

FEBRUARY 2013

Wockhardt's Biotechnology Manufacturing Plant in Aurangabad inaugurated by India's Former President Dr. A P J Abdul Kalam

months ended December 31st, recorded a 45% growth over the corresponding period last year. Growth in American market was driven by a few niche products that were launched last year. During the quarter under review, the company also received three product approvals in US. Wockhardt’s international business contributed 83% to its total revenues during the quarter. Its business in the UK recorded a growth of 19% compared to the corresponding quarter of the previous year. This was impressive as UK market was relatively stagnant for most players. Another core market for the company, Ireland, recorded a growth of 3% for the period under review. Wockhardt’s India business

grew 14% and the emerging markets business grew 18% during Q3 on a YoY basis. The pharma company’s Q3 performance reiterated that the stock rally was not just based on the successful execution of the CDR process. Even before Q3, Wockhardt’s fundamental performance had improved, with quarterly net profit doubling within the last four quarters. Market re-rated the pharma scrip continually through the year-to-date, making Wockhardt soar from Rs. 372 to Rs. 1895 now. Even a change to T Group that limited short-term trading in the scrip was not enough to contain the Wockhardt rally. Founder and Chairman Habil Khotakiwala’s wealth creation legacy should be

inherited by sons Dr. Murtaza Khorakiwala who is MD of Wockhardt, and Dr. Huzaifa Khorakiwala who is ED. Daughter Zahabiya Khorakiwala heads Wockhardt Hospitals, which is yet to be listed. At current prices, Wockhardt trades at a TTM priceearnings multiple of 16.50 times, and the valuation may appear even more attractive going forward because if in Q4 Wockhardt delivers a good bottomline, the trailing twelve months valuation will appear very attractive as the P&L will be shedding the one-off loss-making quarter of last March. Even otherwise, the stock should have a positive bias as competitors like Sun Pharma are trading at 25 times TTM P/E.

Top 100 stocks Set to Gain on Q3 Performance Bank of India

Why This Positive Turnaround May Sustain hat Bank of India made a strong turnaround from the previous quarter, nobody is doubting. Because, from September quarter’s slumping bottomline of just around Rs. 302 crore in profit, BoI has rebounded with a profit of over Rs. 803 crore. Not only is this number in match with all other quarters of the year-to-date, but it is a handsome 12.20% growth on a year-on-year basis from the corresponding quarter of the previous fiscal. There were several highlights to this performance. Firstly, the bottomline expansion was aided by both net interest income growth and other income growth, which means the bank is performing on all core fronts. Secondly, NPAs have come down noticeably on a sequential basis. Though the good bottomline numbers was also helped by tax expenditure coming down sharply, several other positive points are to be noted in this large-sized public sector lender’s performance. Bank of India outperformed much of its public sector peers, as well as some comparable private sector peers in the core performance metric of loan book expansion. Advances came in at 20.20%, clearly ahead of industry averages. BoI made good use of the better prospects for the infra sector, with infra sector growth for the bank coming in at 24%. Gross NPAs, Net NPAs, and provisions have all fallen on a sequential basis, indicating that asset quality is steadily improving. Net NPAs now stands at 1.97% while provisions and contingencies are at Rs. 916 crore. It goes to the credit of Chairperson Vijayalakshmi R Iyer who assumed charge mid-quarter that the management has not gone in for any unnecessary one-off cleansing of the books, which has been the practice at some peer banks whenever there was a leadership change. She is one of public sector banking’s most experienced leaders now, having served Union Bank and Central Bank earlier. At Union Bank,

her last tenure was as General Manager in charge of Information technology and Risk Management, which are two core areas of expertise that Bank of India may benefit from. At Central Bank, where VR Iyer served as Executive Director, she was in charge of varied portfolios like Credit, Treasury, Forex, IT, CBS, Risk Management, and Inspection / Audit, which makes her a well-rounded leader suitable to lead Bank of India. The top leadership Bank of India, Corporate Office

166% (QoQ)

FEBRUARY 2013

V. R. Iyer , CMD including Iyer realizes that one area where the bankâ&#x20AC;&#x2122;s performance can be scaled up considerably is availability of funds, and as such, BoI has started moving to launch a $500 million dollar bond issue for which they are being helped by Barclays Capital, Citigroup, HSBC, Deutsche Bank, JP Morgan and Bank of America-Merrill Lynch. If BoI can conclude the bond issue without much delay, it will be further armed to take on the opportunities arising from the budget and the probable rebound in the economy. However, the management is also showing no complacency on the NPA front, as, on a year-on-year basis, Gross NPAs had moved up. BoI has recently formulated an aggressive strategy to deal with NPAs that will see it shedding up to Rs. 2600 crore of NPAs by next fiscal end. Of this, around Rs. 625 crore will

be shed in this ongoing fourth quarter itself. The bank has also been executing on a comprehensive and regular strategy to deal with NPAs that include recovery camps, lok adalats, separate schemes for urban and rural NPAs, using SARFAESI Act wherever applicable, as well as appointing an asset reconstruction company as recovery agent. If this strategy gets fully executed, it will provide a major boost to the bottomline in the coming quarters. The Bank of India stock had swiftly run up from yearly lows of Rs. 250 to as high as Rs. 390 within a short span of time, and is now in a consolidation phase. BoI stock is always keenly watched by investors as it had run up by a stunning 67 times within a span of just ten years (2000-2010), and it still has the DNA for such outperformance.

Top 100 stocks Set to Gain on Q3 Performance

68%

58%

Reliance Capital

Reliance Infrastructure

Reliance Capitalâ&#x20AC;&#x2122;s net profit rose by 67.77 percent yearon-year to Rs 101 crore in the third quarter of financial year 2012-13. Consolidated total income grew by 8 percent to Rs 1,716 crore from Rs 1,587 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 12.5 percent YoY to Rs 747 crore in OctoberDecember quarter. Operating profit margin improved 100 basis points YoY to 43.6 percent in the third quarter.

Reliance Power

Reliance Infrastructure reported sharp growth in its net profit due to exceptional gain while in core operations, numbers were lower. Net profit rose 58.4 percent yearon-year to Rs 659 crore in the third quarter of financial year 2012-13 on exceptional gain of Rs 418 crore. Even its other income jumped 65.30 percent to Rs 243 crore from Rs 147 crore during the same period. After removal of exceptional gain and other income, the net profit stood at Rs 145 crore. Total income fell nearly 23 percent to Rs 3,455 crore from Rs 4,478 crore, and earnings before interest, tax, depreciation & amortisation (EBITDA) slipped 25 percent YoY to Rs 489 crore in OctoberDecember quarter.

30%

Anil Dhirubhai Ambani Group company Reliance Power reported better-than-expected numbers in third quarter of financial year 2012-13 with the consolidated net profit growing more than 30 percent year-on-year and 10.7 percent quarter-on-quarter to Rs 265.7 crore, sending shares 4 percent higher. Earnings were boosted by higher plant load factors at Rosa unit and higher fuel cost. Full availability of fuel leading to stronger generation also contributed to higher revenues in the quarter. Generation in the second quarter was weak due to planned outages and maintenance shutdown by the company. Consolidated net sales jumped 3 times year-on-year and 35.7 percent

quarter-on-quarter to Rs 1,464 crore in OctoberDecember quarter. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 3.5 times YoY and 25 percent QoQ to Rs 493 crore in October-December quarter. EBITDA margin increased 300 basis points YoY to 33.7 percent, but that was down 275 basis points QoQ. Other income declined to Rs 122 crore from Rs 217 crore year-on-year due to cash deployment in capex. Rosa unit works on a cost-plus earnings model; therefore, higher fuel costs directly impact the topline and plant level return on equity positively.

FEBRUARY 2013 Dr Agarwals Eye Hospitals Dr Agrawals Eye Hospital has reported a standalone sales turnover of Rs 25.30 crore and a net profit of Rs 1.08 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.37 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 24.11 crore and net loss was Rs 0.63 crore., and other income Rs 0.45 crore.

171 %

Turnaround From Loss

15165 % Network 18

Turnaround From Loss

Network18 Media and Investments reported a net profit at the consolidated level for the December quarter, led by strong performances in its broadcasting and digital businesses. The company’s net profit stood at Rs 6.8 crore and operating profit at Rs 10.6 crore. Consolidated quarterly revenues surged to Rs 697.4 crore, up 52 percent year-on-year. “Our recast balance sheets helped us rationalize our interest payouts and our television and digital assets turned in strong operational performances,” said Raghav Bahl, Managing Director, Network18 in a press statement. Consolidated quarterly revenues of TV18 broadcast, in which Network18 holds majority stake, stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter. Network18’s digital content and e-commerce divisions together logged revenues of Rs 119.6 crore, up 104 percent over last year. “We are extremely pleased that all our broadcast and digital content operations grew their margins despite softness in the advertising environment,” B Saikumar, Group CEO said in the release, adding, “Our e-commerce businesses have turned in another stellar quarter doubling over the previous year.” The company’s digital content operations recorded revenues of Rs 22.4 crore, growing around 20% year on year. Moneycontrol.com jumped to an unprecedented 14.9 million unique visitors in December 2012 as per Comscore World Report, the company said in the press release.

Finolex Industries Finolex Industries has reported a standalone sales turnover of Rs 614.45 crore and a net profit of Rs 30.61 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 11.31 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 568.70 crore and net loss was Rs 1.76 crore., and other income Rs 3.87 crore.

3237 % Turnaround From Loss

Top 100 stocks

Set to Gain on Q3 Performance

SpiceJet

14100% Turnaround From Loss

SpiceJet has reported a whopping Rs 102 crore net profit for the December quarter against Rs 39 crore loss it reported in the year ago period, boosted by improved yields and better fleet optimisation. Sales also improved 37% YoY to Rs 1603 crore, on robust passenger load factors in the holiday season (OctDec). Yields or earning per passenger grew 29% to Rs 4412 due to higher fares which airlines generally charge to passengers during peak season. The airline also improved its market share to 19.20% from 16.80%,YoY by flying 80% more passengers on seven international routes on its network. On domestic routes too, it performed well at the operating level. Neil Mills, the airline’s CEO in a statement said, “In a challenging environment when all airlines are bleeding, SpiceJet has put up a good show by adopting strategies that boosted overall performance.”

SKS Microfinance SKS Microfinance has announced its third quarter results. The company’s Q3 net profit was at Rs 1.2 crore versus loss of Rs 428 crore, year-on-year, YoY. Its total income from operations was down at Rs 85 crore versus Rs 87 crore, YoY. Its net interest income (NII) was up at Rs 50 crore versus Rs 45.6 crore, YoY. Its provisions & write-offs at Rs 28.36 lakh versus Rs 233.56 crore, QoQ.

4140 % Turnaround From Loss

Dhanlaxmi Bank

42920 %

Kerela-based Dhanlaxmi Bank turned profitable in the third quarter (October-December, 2012-13) recording a net profit at Rs 4.4 crore as against a net loss of Rs 37 crore a year ago, on the back of lower employee cost that dropped to Rs 45 crore compared with Rs 73 crore in Q3, FY13. In the recent past, a slew of senior management officials left the bank resulting in lower salary bill. A year back, Amitabh Chaturvedi (the then MD) led management was replaced by the old management based in Kerala. Even though the bank reported a net profit after a long spell, its asset quality looks fraught with huge stress. Gross non-performing asset (NPA) ratio worsened significantly from 0.77% to 4.19% year-on-year. Provisions for bad loans zoomed from Rs 41 lakh to about Rs 10 crore y-o-y. Net NPA ratio shot up to 2.93% as against 0.35% during the same time. Net interest income or the difference between interest earned and paid out, rose more than 17% to Rs 75 crore.

FEBRUARY 2013 Glenmark Pharma Healthcare firm Glenmark Pharma reported stronger-thanexpected numbers on all parameters, with the consolidated net profit growing 4.6 times year-on-year to Rs 213 crore in the third quarter of financial year 2012-13. Consolidated total income grew by 34 percent to Rs 1,381 crore from Rs 1,031 crore during the same period, including out-licensing income of Rs 49.3 crore from Forest Labs. Out-licensing income stood at Rs 23.83 crore in the third quarter of previous financial year 2011-12. Glenn Saldanha, Chairman & MD said, “The US, India and Russia markets performed exceptionally well and continue to drive growth for the company.” Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped more than three times yearon-year to Rs 320 crore in October-December quarter. Operating profit margin increased quite sharply to 23.1 percent in December quarter as against 10 percent in a year ago quarter. Revenue from the generics business jumped 33 percent YoY to Rs 580.99 crore in December quarter. Specialty formulation business excluding out-licensing revenue increased 31.22 percent year-on-year to Rs 735.76 crore in the third quarter. “The option agreement with Forest Laboratories for the development of novel mPGES-1 inhibitors and the USFDA approval for Glenmark’s inlicensed molecule - Crofelemer has come as a big boost and renewed validation for our world-class drug discovery capabilities. While the option agreement with Forest Labs marks our seventh outlicensing deal in the innovation R&D space; the USFDA approval for Crofelemer has paved the way for Glenmark becoming the first Indian company to launch an New Chemical Entity (NCE) across multiple geographies,” Saldanha added.

362%

8512 % Turnaround From Loss

TV18 Broadcast TV18 Broadcast turned corner during the quarter ended December, reporting a consolidated net profit of Rs. 21.3 crore, driven by strong growth in broadcasting and distribution revenues. Quarterly revenues stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter. The company had been reporting net losses at the consolidated level for five successive quarters till September 2012. “Our net distribution income (subscription revenues minus carriage fee) has finally broken into positive territory and our recast balance sheet has helped us rationalize our interest payouts,” said Raghav Bahl, Managing Director, Network18 in a press statement, adding, “we are now entering an exciting phase in our journey as we strengthen our existing operations and consolidate our regional acquisition.” The company recently raised Rs 2700 crore through a rights issue to fund its acquisition of Eenadu group-promoted ETV. Advertising, the biggest contributor to broadcasting revenues grew 10 percent over last year to Rs 312 crore, a 27 percent gain sequentially. Subscription revenues vaulted to Rs 29 crore from Rs 3 crore during the September quarter, and distribution revenues surged 52 percent sequentially to Rs 144 crore. “Our broadcast operations grew their margins despite softness in the advertising environment,” said Group CEO B Saikumar, said in the press statement.

Top 100 stocks

Set to Gain on Q3 Performance

Force Motors Force Motors has reported a standalone sales turnover of Rs 436.32 crore and a net profit of Rs 8.13 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.30 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 522.44 crore and net profit was Rs 2.34 crore., and other income Rs 0.05 crore.

247%

2491% Turnaround From Loss

Fortis Malar Hospitals Fortis Malar Hospitals has reported a standalone sales turnover of Rs 26.05 crore and a net profit of Rs 36.02 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.29 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 23.85 crore and net profit was Rs 1.39 crore., and other income Rs 0.41 crore.

59%

Central Bank State-controlled lender Central Bank of India ‘s net profit rose by 59.3 percent year-on-year to Rs 180 crore in the third quarter of financial year 201213. Net interest income increased 19.6 percent to Rs 1,409.7 crore from Rs 1,179 crore during the same period. Gross non-performing asset (NPA) went up by 10 basis points QoQ to 5.64 percent while net NPA remained flat at 3.79 percent in October-December quarter. Provisions against bad loans jumped quite sharply to Rs 627.7 crore in the third quarter of FY13 as against Rs 427 crore in second quarter. Capital adequacy ratio stood at 10.78 percent as against 11.6 percent QoQ.

FEBRUARY 2013

Jet Airways Turns Profitable in Q3 In an Emphatic Way Does Jet really need to lure Etihad at all costs? Jet Airways has reported Rs 85 crore profit in the December quarter against Rs 101 crore (YoY) loss, boosted by higher yields and lower fuel cost. While gross yields per passenger grew 18.6%, aviation fuel cost fell 3% to Rs 1688 crore, YoY. Revenues rose nearly 7 percent - lower than expected - to Rs 4,205.8 crore from Rs. 3,939.2 crore, YoY. The firm has reported foreign exchange loss of Rs 48 crore during the quarter as against gain of Rs 179 crore, QoQ as the Rupee remained weak against the dollar. The company said that it has stopped capacity on loss making routes and will re-deploy aircraft on profitable high density routes in ensuing months. Currently, aircraft on ground have impacted topline by Rs 55 crore. Nikos Kardassis, CEO, Jet Air, said that the airline is taking all measures to boost earnings and cut costs. The airline is keen to enhance ancillary revenues to boost overall performance. He further said, high aviation fuel cost and currency fluctuation remains a cause of concern for the sector. However, Q4 passenger bookings are healthy but there could be some seasonality impact. The past year-to-date was sweet for Goyal when his strategies were favourably contrasted with the rest of the pack - from AirIndia to Kingfisher to SpiceJet. But did Naresh Goyal really need FDI in

18600 % Turnaround From Loss

aviation? Maybe not, with even his investment into Jet coming from abroad. But FDI in aviation wouldnâ&#x20AC;&#x2122;t hurt, and he promptly went in for one of the best partners - Etihad. But in true UAE style, Abu Dhabiâ&#x20AC;&#x2122;s airline is trying to extract a too favourable deal from Jet.

Top 100 stocks

Set to Gain on Q3 Performance

144%

Maruti Suzuki

Escorts

Indiaâ&#x20AC;&#x2122;s largest passenger car maker Maruti Suzuki said that net profit in the third quarter more than doubled year-on-year to Rs 501 crore, helped by strong sales growth, led by the diesel powered Ertiga multi-utility vehicle and the compaft DZire sedan. Its first profit rise in six quarters sent its shares surging to a three-year high. The companyâ&#x20AC;&#x2122;s net sales in Oct-Dec were up 46 percent froma year ago to Rs 10,957 crore. Maruti Suzuki has had tough times over the last one year. While sales, especially of petrol driven vehicles, remained sluggish, there were several instances of labour strikes at its Manesar plant that hit production. In the year-ago quarter too the company lost production of around 40,000 units due to strike. A labour unrest at the plant in July last year left a human resources manager dead and several other executives injured. The plant remained shut for around one month post the violence. Return to full scale operations at Manesar this quarter and demand for new Swift, DZire and Ertiga have given it a big boost. The Ertiga was launched in April 2012 and the new compact DZire was introduced in Feb 2012. Maruti Suzuki sold 2.69 lakh units in Oct-Dec in the domestic market, up 27 percent, while exports rose 17 percent to 32,496 units. Operating profit margin last quarter improved 270 basis points to 7.9 percent and earnings before interest, tax, depreciation & amortisation (EBITDA) jumped to Rs 890 crore from Rs 417 crore.

Escorts has reported a standalone sales turnover of Rs 1,028.18 crore and a net profit of Rs 28.14 crore for the quarter ended Dec â&#x20AC;&#x2122;12. Other income for the quarter was Rs 13.59 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 829.77 crore and net profit was Rs 10.86 crore.

159%

FEBRUARY 2013 Zee Entertainment

Edelweiss Financial Services

Zee Entertainment Enterprises’ consolidated net profit rose 2.8 percent quarter-on-quarter - higher than expected - to Rs 193.3 crore in the third quarter of financial year 201213. Meanwhile, consolidated revenue declined 1.5 percent to Rs 938.8 crore from Rs 953.5 crore during the same period. YoY growth in both topline and bottomline was much higher. Numbers were better than expected on every parameter. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 19.7% QoQ to Rs 261 crore in October-December quarter. EBITDA margin improved 490 basis points QoQ to 27.8 percent. Advertisement revenue too grew stronger-than-expected 28.8 percent YoY to Rs 509.4 crore in December quarter. Subscription revenue rose by 25.6 percent YoY to Rs 409.8 crore while domestic subscription revenue stood at Rs 296.1 crore for the quarter.

Edelweiss Financial Services ‘ consolidated net profit grew by 10.6 percent quarter-on-quarter to Rs 46 crore in the third quarter of financial year 201213. Consolidated total income rose by 5.4 percent to Rs 536.7 crore from Rs 509 crore during the same period. The YoY performance was even better on both topline and bottomline.

49%

40%

Kitex Garments

84%

Kitex Garments has reported a sales turnover of Rs 96.51 crore and a net profit of Rs 10.36 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.94 crore. For the quarter ended Dec 2011 the sales turnover was Rs 82.88 crore and net profit was Rs 5.63 crore., and other income Rs 1.39 crore.

Top 100 stocks

Set to Gain on Q3 Performance

Union Bankâ&#x20AC;&#x2122;s Q3 Strong With 38% Bottomline Growth State-controlled lender Union Bank of India surprised the street by reporting net profit growth of 37.7 percent year-on-year to Rs 302.4 crore in the third quarter of financial year 2012-13, led by lower non-performing assets.Net interest income rose 2.6 percent to Rs 1,891.4 crore from Rs 1,843.6 crore during the same period. Gross non performing asset (NPA) improved by 30 basis points quarter-on-quarter to 3.36 percent and net NPA fall by 36 basis points QoQ to 1.7 percent in the OctoberDecember quarter. However, provisions against bad loans increased quite sharply to Rs 857.3 crore in the third quarter as against Rs 487 crore in second quarter of FY13. Capital adequacy ratio stood at 10.78 percent as against 11.39 percent QoQ. The board of directors of the stateowned lender approved raising equity capital up to Rs 1,000 crore on preferential / QIP / rights basis towards capital infusion in addition to Rs 1,500 crore approved in board meeting held on December 27, 2012. Union Bank has had three strong quarters in a row, which made the share price soar towards the later period of year-todate. The large-sized public sector bank also started reaping fruits from its program of pruning its corporate business and growing its retail business. Also remains one of the most well-branded public sector banks.

38%

Muthoot Capital Services Muthoot Capital Services has reported a standalone sales turnover of Rs 26.54 crore and a net profit of Rs 5.16 crore for the quarter ended Dec â&#x20AC;&#x2122;12. Other income for the quarter was Rs 0.03 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 16.66 crore and net profit was Rs 3.39 crore., and other income Rs 0.02 crore.

52%

FEBRUARY 2013 101%

39400 % Turnaround From Loss

Blue Dart Express Blue Dart Express’ net profit doubled to Rs 45 crore in the third quarter of financial year 2012-13 from Rs 22.4 crore in a year ago period. Net sales jumped 16.5 percent to Rs 458.4 crore from Rs 393.5 crore during the same period. “The company has changed its accounting year to commence from April 1 of every year and to end on March 31 of the following year, to proactively comply with the proposed Companies Bill 2012. Consequent to this, the current accounting period would be for the 15month period from January 1, 2012 to March 31, 2013,” Blue Dart said.

Essar Oil Essar Oil has posted a net profit of Rs 32 crore for the December quarter when compared with a loss of Rs 362 crore, year-on-year mainly on improved margins. The company has registered gross refining margins at USD 9.75/bbl as against USD 3.82/bbl reflecting higher complexity benefits post expansion of projects. This is the first quarter showing the full impact of the capacity expansion to 20 MTPA (million tonnes per annum). In previous quarter, the company had posted a GRM of USD 7.86 a barrel, a discount of USD 1.2 a barrel as compared to Singapore complex at USD 9.1 a barrel. The company’s net sales grew 14% to Rs 23, 817 crore,YoY. LK Gupta, Essar Oil’s managing director and CEO said, “Our Vadinar Refinery has demonstrated excellent operating performance during the quarter post completion of its expansion & optimization projects. Going forward, we will continue to optimise our crude diet and product slate further to improve our earnings, creating greater stakeholder value.”

Navneet Navneet Publications has reported a standalone sales turnover of Rs 125.02 crore and a net profit of Rs 11.24 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.00 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 84.42 crore and net profit was Rs 4.01 crore., and other income Rs -0.77 crore.

180%

Top 100 stocks

Set to Gain on Q3 Performance

Somany Ceramics

73%

Somany Ceramics has reported a standalone sales turnover of Rs 267.19 crore and a net profit of Rs 8.16 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.27 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 217.46 crore and net profit was Rs 4.73 crore., and other income Rs 0.02 crore.

72%

23%

DCB

Indiabulls Realestate

Development Credit Bank’s (DCB) net profit grew by 72.44 percent year-on-year to Rs 26.9 crore in the third quarter of current financial year 2012-13. Net interest income increased 20 percent to Rs 72 crore from Rs 60 crore during the same period. Gross non-performing assets (NPAs) declined marginally to 3.80 percent in October-December quarter as against 3.86 percent in previous quarter while net NPAs rose by 5 basis points QoQ to 0.73 crore in the quarter.

Indiabulls Real Estate has reported a consolidated sales turnover of Rs 331.29 crore and a net profit of Rs 50.06 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 20.04 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 356.47 crore and net profit was Rs 40.81 crore., and other income Rs 20.85 crore.

FEBRUARY 2013

Syndicate Bank Q3 Profit Grows 50% Bangalore based state-owned lender Syndicate Bank’s third quarter (October-December, FY13) net profit surged more than 50.3% year-on-year to Rs 508 crore, boosted by a one-off tax refund of Rs 141 crore. “We have got the tax write-back based on our exposure in rural credit,” M G Sanghvi, CMD, Syndicate Bank told. “We may continue to get this benefit in the March quarter as well. All state-owned banks also get the same advantage. We are shifting focus to retail and mid corporate lendings. We do not see any fresh threat on asset quality. In between April 1 and December 31, our loans expanded 9%,” he said. However, if one excludes the tax credit component, net profit would have risen by just 8.50% y-o-y to Rs 367 crore. During the quarter, the net interest income or the difference between interest earned and paid out, grew nearly 6% to Rs 1,400 crore. Syndicate’s global loan book scaled up more than 17% y-o-y to Rs 1.37 lakh crore while the

domestic credit rather recorded a bit muted growth just at 13% y-o-y at Rs 1.16 lakh crore. Retail credit accounts for more than 17% of the domestic loan book. Gross non-performing asset (NPA) ratio declined 16 basis points to 2.31% quarter-on-quarter. Net nonperforming ration stood at 0.85% as against 0.92% a quarter back. Provisions against bad loans upped at Rs 530 crore compared with Rs 480 crore in previous quarter. During the quarter, the lender restructured loans a little less than Rs 1,000 crore. Total restructured book was at about Rs 10,000 crore. The PSB bank’s stock has been a good performer in the year-todate. The compelling case for Syndicate Bank stock was obvious during the first two quarters of yearto-date. The valuations were that attractive. Then came two blockbuster quarters in Q1 and Q2 and suddenly all banking stock pickers were scrambling for Syndicate stock.

50%

Omaxe Omaxe has reported a consolidated sales turnover of Rs 567.93 crore and a net profit of Rs 28.85 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.81 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 451.81 crore and net profit was Rs 19.32 crore, and other income Rs 9.68 crore.

49%

Kolte-Patil Developers Kolte-Patil Developers has reported a consolidated sales turnover of Rs 225.43 crore and a net profit of Rs 38.86 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.17 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 73.91 crore and net profit was Rs 8.03 crore., and other income Rs 2.94 crore.

384%

Top 100 stocks

Set to Gain on Q3 Performance

SBT

ICICI Bank

30%

India’s largest private sector lender ICICI Bank ‘s third quarter (October-December) standalone net profit jumped more than 30% year-on-year to Rs 2,250 crore, driven by robust net interest income, which increased 29% to Rs 3,500 crore. Other income too climbed 17% to Rs 2,215 crore adding to the profit margin. “The rise in profit came on the back of growth and efficiency parameters,” Chanda Kochhar, MD & CEO, ICICI Bank told reporters in a conference call. “Going forward, we expect slight improvement in net interest margin by a few basis points. Our growth in loans is well-balanced. We would grow our retail loans at 20%. Also, there is a room for growing our international business wherein the net interest margin stood at 1.3%,” she said. The bank expanded its loans by 16% y-o-y to Rs 2.87 lakh crore while the deposits grew at a slower pace by about 10% to Rs 2.86 lakh crore. The share of current and savings account (CASA) was at 40.9% as against 40.7% in the second quarter. Net interest margin logged a rise of 37 basis points to 3.07% y-o-y. Provisions against bad loans inched up to Rs 369 as against Rs 341 crore a year back. However, the same came down in comparison with the July-September quarter recorded at Rs 508 crore. Provision coverage ratio stood at 77.7% as on December 31. “In Q2 provisions were up due to one single corporate account which we had provided for. Earlier, we had sold our credit exposure in Kingfisher airlines. Currently, we do not have any plan for selling our (stressed) loan portfolios,” Kochhar said. During the quarter, the gross nonperforming asset (NPA) ratio improved from 3.54% to 3.31% quarteron-quarter. Net NPA ratio was at 0.76% compared with 0.78% a quarter back. Net restructured book remained at Rs 4,169 crore, little changed from the previous quarter. ICICI Bank, according to Kochhar, does not need to raise any equity capital in the near term. Its capital adequacy ratio was 19.53% of which tier-I (equity capital) was at 13.25% as on December 31.

State Bank of Travancore ‘s net profit grew by 30.4 percent year-on-year to Rs 132 crore in the third quarter of financial year 2012-13, sending shares nearly 6 percent. Profit of the bank rose by 25 percent YoY to Rs 449 crore in the first nine months of current fiscal. “Growth in advances resulting in a higher net interest income aided the bank to achieve a growth in the net profit,” State Bank of Travancore said. Net interest income went up by 14.04 percent to Rs 1,511 crore from Rs 1, 325 crore during the same period. Net interest margin stood at 2.50 percent in the October-December quarter. Gross non-performing asset (NPA) increased to 3.04 percent from 2.82 percent in the corresponding quarter of last fiscal and 2.98 percent in previous quarter. Meanwhile, net NPA declined to 0.66 percent from 0.73 percent QoQ. Provisions against bad loans moved up to Rs 124.3 crore in the December quarter as against Rs 117.6 crore in September quarter. The capital to risk weighted assets ratio (CRAR) of the bank stood at 11.40 percent during the quarter, down by 101 basis points compared to 12.41 percent in previous quarter. The regulatory minimum prescribed by Reserve Bank of India is 9 percent. Deposits increased 21 percent YoY to Rs 80,043 crore while gross advances rose by 17 percent year-on-year to Rs 65, 560 crore in December quarter. State Bank of Travancore increased its presence in another 75 new centres in 201213, taking the total number of branches to 954. “21 new ATMs were installed taking the total ATM network of the bank to 950. Bank’s ATMs form part of more than 25000 strong ATM network of State Bank group. In Kerala, Bank has 734 (77 percent) branches and 782 (82.31 percent) ATMs,” the bank said.

30%

FEBRUARY 2013

V-Guard’s Q3 Profits Up By 23%, Sales Up by 36%

23%

V-Guard Industries has reported a standalone sales turnover of Rs 349.04 crore and a net profit of Rs 15.35 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 1.46 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 256.94 crore and net profit was Rs 12.45 crore., and other income Rs 0.76 crore. During the past-yearto-date, market couldn’t resist rerating the scrip as quarterly net profit tripled within last four quarters. Even a stake sale by a promoter group entity was not enough to break the rally in VGuard Industries. V-Guard stock soared from a year-to-date low of Rs. 168 to Rs. 460 now. Above average corporate governance practices also helped. But Founder Kochouseph Chittilappilly is not just an industrialist, but a humanist who made waves for kickstarting a kidney donation program in Kerala by donating his own kidney. His wealth creation legacy should be inherited by son Mithun K Chittilappilly who is MD of V-Guard.

Top 100 stocks

Set to Gain on Q3 Performance

L&T Finance’s Q3 Profit Soars Multifold 214% L&T Finance Holdings’ consolidated net profit grew 3 times year-on-year to Rs 294.6 crore in the third quarter of financial year 2012-13. Gross nonperforming asset (NPA) came in at 2.39 percent and net NPA at 1.56 percent as on December 31, 2012. Loans and advances rose by 30.77 percent year-onyear to Rs 31,230.5 crore in October-December quarter. The re-rating that L&T Finance long hoped for had finally come in the year-to-date, helping the NBFC break over its narrow trading range ever since its IPO. The re-rating was due to inorganic growth by buying out companies in other sectors like housing finance, and prospects of repeating the same in sectors like wealth management. The firm’s semi-urban focus is also likely to be a growth engine as more of rural India becomes semi-urban.

GIC Housing Finance’s Q3 Surges by 90% 90%

GIC Housing Finance has reported a standalone sales turnover of Rs 139.48 crore and a net profit of Rs 23.21 crore for the quarter ended Dec ’12. For the quarter ended Dec 2011 the standalone sales turnover was Rs 112.29 crore and net profit was Rs 12.20 crore. Investors had long waited in the counter, due to the striking resemblance in name and substance with market darling LIC Housing Finance. But this GIC arm took its sweet time in delivering, but late 2012 was that sweet time for investors. Based on vastly improved fundamental performance - equally in bottomline and topline - GIC Housing Finance stock soared to over 66%.

FEBRUARY 2013

Geojit BNP Paribas’ Q3 Profit Soars 162%

154%

Geojit BNP Paribas Financial Services has reported a consolidated sales turnover of Rs 62.36 crore and a net profit of Rs 14.26 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 5.39 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 51.36 crore and net profit was Rs 5.45 crore., and other income Rs 7.42 crore. Broking business is still not the stock market favourite it once was. But that hasn’t stopped Geojit BNP Paribas from outperforming the market by leaps and bounds. Founder and Managing Director CJ George has played the game well, even after the 2008’s global financial crisis, and all his moves like low leverage and partnering with banking giant BNP and expanding in Middle East are bearing rich fruits now. Backed by celebrity investor Rakesh Jhunjhunwala, who is also a Director, Geojit BNP also made wonderful RoI when it exited the institutional broking business two quarters back. Quarterly bottomline has grown by over 160% during the last four quarters, and market was prompt to soar the scrip from Rs. 15 to Rs. 24 now. All time high stands at Rs. 131, and if this well-managed business grows with the same momentum, and the market improves, Geojit may scale back that high eventually.

162%

(QoQ) Taj GVK Hotels Taj GVK Hotels & Resorts has reported a standalone sales turnover of Rs 66.66 crore and a net profit of Rs 4.27 crore for the quarter ended Dec ’12. For the quarter ended Dec 2011 the standalone sales turnover was Rs 66.32 crore and net profit was Rs 6.10 crore. However, there was a sharp positive turnaround in both topline and bottomline on QoQ basis.

Top 100 stocks

Set to Gain on Q3 Performance

Puravankara Q3 Bottomline 101% Doubles Real estate firm Puravankara Projects’ consolidated net profit doubled to Rs 64.4 crore in the third quarter of financial year 2012-13 from Rs 32 crore in a year ago period. Consolidated total income grew by 60 percent to Rs 310.6 crore from Rs 194 crore during the same period. fter spending the first quarter of this past year-to-date in a lull, Puravankara Projects stock started soaring, when it became clear that their pioneering efforts in combating the realty sluggishness, like their initiative into affordable housing through subsidiary Provident, was going to bear rich fruits. Quarterly net profit growth at 56% clearly outpaced a decent topline growth of 38%, showing pricing power and competitive strength of brands Purva and Provident, and making the market take the scrip from Rs. 55 to Rs. 105 now. Realty pioneer Ravi Puravankara’s wealth creation legacy should be intact in the hands of son Ashish Puravankara who is now Joint Managing Director. All eyes will be on the strategies of Ashish now, specifically on his strategies to scale back the scrip to post-IPO all-time high of Rs. 535.

Archies Archies has reported a standalone sales turnover of Rs 56.36 crore and a net profit of Rs 2.95 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.08 crore. For the quarter ended September 2012 the standalone sales turnover was Rs 48.04 crore and net profit was Rs 1.19 crore.

148% (QoQ)

5107% (QoQ)

EIH (Oberoi Hotels) EIH has reported a standalone sales turnover of Rs 323.63 crore and a net profit of Rs 32.77 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.21 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 313.84 crore and net profit was Rs 45.25 crore., and other income Rs 0.74 crore.

FEBRUARY 2013 SREI Infrastructure Finance SREI Infrastructure Finance has reported a consolidated sales turnover of Rs 771.44 crore and a net profit of Rs 46.28 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.89 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 687.32 crore and net profit was Rs 19.40 crore., and other income Rs 5.64 crore.

Orbit Corporation Orbit Corporation has reported a consolidated sales turnover of Rs 67.83 crore and a net profit of Rs 12.15 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.21 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 71.54 crore and net profit was Rs 3.88 crore, and other income Rs 1.94 crore.

213% BL Kashyap & Sons

139%

BL Kashyap & Sons has reported a standalone sales turnover of Rs 376.76 crore and a net profit of Rs 3.98 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 8.19 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 492.49 crore and net profit was Rs 0.38 crore., and other income Rs 10.47 crore.

947%

Lupin Pharmaceutical firm Lupin’s consolidated net profit grew by 42.6 percent to Rs 335.2 crore in the third quarter of financial year 2012-13. Consolidated revenue rose by 37.4 percent (stronger than expected) to Rs 2,501 crore from Rs 1,820.2 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up nearly 62 percent YoY to Rs 605 crore in the October-December quarter while operating profit margin improved by 370 basis points YoY to 24.2 percent in the third quarter. Other income jumped quite sharply to Rs 26.5 crore from Rs 2 crore YoY.

43%

Top 100 stocks

Set to Gain on Q3 Performance

Dabur India

24%

Reliance Industries Reliance Industries (RIL) December quarter numbers was boosted by higher gross refining margins (GRMs). The company posted a net profit of Rs 5502 crore. On a YoY basis, profits grew 24% after four quarters of declining returns. Meanwhile, quarterly revenues stood at Rs 96307 crore. Attributing the good performance of the company to robust refining margins, chairman Mukesh Ambani said, “RIL’s performance has improved in the quarter with margin expansion in petrochemicals and record earnings in the refining business.”

22%

Fast moving consumer goods major Dabur India reported mixed results for the third quarter, with consolidated net profit up by 22 percent year-on-year to Rs 211 crore. However, consolidated net sales growth was lower at 12 percent recording Rs 1,631 crore. Dabur CEO Sunil Duggal attributed the shortfall in topline to fall in international sales. But the organic international business has seen margin expansion, he added. The maker of Real Fruit juices, Dabur Chayavanprash and Vatika hair oil reported a EBITDA (earnings before interest, taxes, depreciation and amortization) of Rs 274 crore, up 19 percent from a year ago. Last quarter, EBITDA margin was up 100 bps at 16.8 percent. Dabur’s consumer care business sales grew 12 percent to Rs 1,414 crore, while foods business sales were up 20 percent to Rs 165 crore in Q3. Dabur also runs retail stores under the New U brand, which saw a sales growth of 42 percent at Rs 17 crore. Loss in the retail business also narrowed to Rs 2.7 crore from Rs 3.3 crore. Sales from other segments declined to Rs 35 crore from Rs 37 crore. Its consumer care business profit rose 20 percent to Rs 324 crore. But foods business profit was down 18 percent year-on-year to 18 crore. Dabur’s total expenses last quarter rose 11 percent to Rs 1,392 crore. Advertising and publicity spends, in particular, were up 19 percent (30 percent quarter-onquarter) to Rs 235 crore.

FEBRUARY 2013 Oberoi Realty Oberoi Realty’s Q3 consolidated net profit was up 31.76% at Rs 134.4 crore versus Rs 102 crore, year-onyear, YoY. Its consolidated net sales were up 53.31% at Rs 284.7 crore versus Rs 185.7 crore, YoY.

Cera Sanitaryware

101% Cholamandalam Cholamandalam Investment and Finance Company has reported a consolidated sales turnover of Rs 668.97 crore and a net profit of Rs 81.51 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.49 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 475.62 crore and net profit was Rs 40.56 crore., and other income Rs 0.50 crore.

Cera Sanitaryware has reported a standalone sales turnover of Rs 128.02 crore and a net profit of Rs 12.00 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 2.00 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 82.48 crore and net profit was Rs 7.95 crore., and other income Rs 1.63 crore.

51%

32% NHPC

Tata Coffee Tata Coffee has reported a consolidated sales turnover of Rs 418.09 crore and a net profit of Rs 33.76 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 3.14 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 415.90 crore and net profit was Rs 24.04 crore., and other income Rs 0.01 crore.

Tourism Finance Corporation Tourism Finance Corp of India has reported a standalone sales turnover of Rs 47.09 crore and a net profit of Rs 11.26 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.67 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 31.16 crore and net profit was Rs 9.07 crore., and other income Rs 0.20 crore.

24% 40%

47%

State-owned NHPC has reported a standalone sales turnover of Rs 1,010.37 crore and a net profit of Rs 311.77 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 189.02 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 881.98 crore and net profit was Rs 212.18 crore., and other income Rs 203.15 crore.

Top 100 stocks Set to Gain on Q3 Performance Berger Paints Berger Paints India has reported a consolidated sales turnover of Rs 920.30 crore and a net profit of Rs 76.80 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 9.90 crore. For the quarter ended Dec 2011 the consolidated sales turnover was Rs 782.31 crore and net profit was Rs 49.09 crore., and other income Rs 8.19 crore.

State Bank of Mysore State Bank of Mysore has reported its results for the quarter ended Dec ’12. Standalone Net Interest Income (NII) for the quarter was Rs 1,503.03 crore and net profit was Rs 154.77 crore. Other income for the quarter was Rs 112.96 crore. For the quarter ended Dec 2011 the Standalone Net Interest Income (NII) was Rs 1320.73 crore and net profit was Rs 110.94 crore., and other income Rs 106.88 crore.

56% Harrisons Malayalam Harrisons Malyalam has reported a standalone sales turnover of Rs 100.14 crore and a net profit of Rs 10.14 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.17 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 94.11 crore and net profit was Rs 7.30 crore., and other income Rs 0.37 crore.

39%

40%

40% Power Grid Corporation State-owned Power Grid Corporation of India’s net profit grew by 39.5 percent year-on-year to Rs 1,129 crore in the third quarter of financial year 2012-13. Net sales rose more than 36 percent to Rs 3,362 crore from Rs 2,467 crore during the same period. Numbers were good on most parameters. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 39 percent YoY to Rs 2,923 crore while EBITDA margin improved 180 basis points year-on-year to 87 percent in October-December quarter. Other income increased to Rs 128 crore from Rs 109 crore YoY.

Amara Raja Batteries Amara Raja Batteries’ net profit rose by 23 percent year-on-year to Rs 81 crore in the third quarter of financial year 201213. Total income grew by 23.8 percent to Rs 759 crore from Rs 613.13 crore during the same period. Numbers were strong on MOST parameters. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 15 percent YoY to Rs 122 crore. Operating profit margin declined 130 basis points YoY to 16 percent.

23%

FEBRUARY 2013 Yes Bank

ING Vysya Bank Private sector lender ING Vysya Bank’s net profit grew by 35.6 percent year-on-year to Rs 162 crore in the third quarter of financial year 2012-13, helped by lower non-performing asset (NPA). Net interest income rose by 32.7 percent to Rs 403 crore from Rs 303.6 crore during the same period. Gross NPA declined 13 basis points QoQ to 1.77 percent in OctoberDecember quarter while net NPA dropped to 0.05 percent from 0.13 percent QoQ. Provisions against bad loans increased to Rs 24.6 crore from Rs 6.4 crore QoQ. Capital adequacy ratio stood at 12.47 percent in December quarter as against 13.04 percent in September quarter.

36%

36% Jammu and Kashmir Bank Jammu and Kashmir Bank’s (J&K Bank) third quarter net profit rose by 35.7 percent year-on-year to Rs 289.4 crore. Meanwhile, net interest income jumped 31.8 percent to Rs 594.2 crore from Rs 450.8 crore during the same period. Gross nonperforming asset (NPA) increased to 1.61 percent as against 1.59 percent QoQ whereas net NPA declined to 0.14 percent as against 0.16 percent QoQ. Provisions against bad loans were Rs 22.4 crore in OctoberDecember quarter, up 23 percent compared to Rs 18.2 crore in JulySeptember quarter. Capital adequacy ratio went up to 13.82 percent from 13.73 percent quarter-on-quarter. Provision coverage ratio stood at 94.21 percent as on December 31.

Shriram City Union Finance Shriram City Union Finance has reported a standalone sales turnover of Rs 813.54 crore and a net profit of Rs 112.52 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.19 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 536.54 crore and net profit was Rs 83.46 crore., and other income Rs 1.38 crore.

35%

Private sector lender Yes Bank ‘s third quarter (October-December) net profit grew 35% year-on-year to Rs 342 crore in 2012-13, driven by higher interest income and fee income. Net interest income or the difference between interest earned and paid out, rose by 36% to Rs 584 crore from Rs 428 crore during the same period. Other income increased 48.34 percent YoY to Rs 313 crore in the December quarter. Gross nonperforming assets (NPAs) declined 7 basis points quarter-on-quarter to 0.17 percent while net NPAs fell to 0.04 percent in third quarter as against 0.05 percent in previous quarter. But provisions against bad loans were up by 78.9 percent QoQ to Rs 56.7 crore in OctoberDecember quarter. Capital adequacy ratio improved by 50 basis points QoQ to 18 percent while net interest margin too increased to 3 percent versus 2.9 percent quarter-on-quarter.

35%

Top 100 stocks Set to Gain on Q3 Performance State Bank of Bikaner and Jaipur State Bank of Bikaner and Jaipur’s (SBBJ) net profit rose by 31.2 percent year-on-year to Rs 215 crore in the third quarter of financial year 2012-13. Net interest income went up by 7 percent to Rs 673 crore from Rs 629.6 crore during the same period. Gross non-performing asset (NPA) fell by 16 basis points quarter-on-quarter to 3.13 percent and net NPA slipped 3 basis points QoQ to 1.88 percent in the OctoberDecember quarter.

31% IndusInd Bank IndusInd Bank has reported its results for the quarter ended Dec ’12. Net Interest Income (NII) for the quarter was Rs 1,800.49 crore and net profit was Rs 267.27 crore. Other income for the quarter was Rs 355.80 crore. For the quarter ended Dec 2011 the Net Interest Income (NII) was Rs 1389.74 crore and net profit was Rs 205.96 crore., and other income Rs 265.12 crore.

30%

HDFC Bank India’s second largest private sector lender HDFC Bank reported 30% year-on-year jump in its third quarter net profit at Rs 1,859 crore, driven by robust growth in other income and loan expansions. During the quarter, net interest income or the difference between interest earned and paid out, rose nearly 22% to Rs 3,800 crore. Other income increased 27% to Rs 1,800 crore aided by growth in fee and commission income. There was a small blip in non-performing assets. Gross non-performing asset (NPA) ratio rose to 1% as against 0.91% in the JulySeptember quarter. Net NPA ratio remained at 0.20%, little changed from the previous quarter. Provisions and contingencies stood at Rs 307, up by Rs 14 crore from the previous quarter. “The bank’s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA coverage ratio based on specific provisions (not including write-offs, technical or otherwise) was at 80% as on December 31, 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as of December 31, 2012,” HDFC Bank said in a press release. During the three month period, the loan book expanded more than 24% y-o-y to Rs 2.41 crore. Retail loans escalated about 30% y-o-y to Rs 1.30 lakh crore. This is way above the

30% industry credit growth at around 16%. However, the bank refrains from lending long term significantly. Project finance, launched more than a year back, currently stands at just around 4% of the loan book. Going forward, the lender may have to face challenge in sustaining the current growth momentum. The bank’s annualised return of asset (RoA) is at 1.8%, which is all time high for the bank. To maintain this run-rate, according to analysts, HDFC Bank have to further ramp up its credit growth to the tune of around 30% y-o-y, which is a tough call. But any inorganic growth may help the bank to hold on the high level of RoA.

Mahindra and Mahindra Financial Services Non-banking finance company Mahindra and Mahindra Financial Services’ consolidated net profit grew by 35.8 percent year-on-year to Rs 216 crore in the third quarter of current financial year 2012-13. Consolidated income from operations rose by 38.4 percent to Rs 1,057.3 crore from Rs 764 crore during the same period. The firm is seen as a frontrunner for a new banking license.

36%

FEBRUARY 2013 Jubilant foodworks

Indiabulls Financial Services Indiabulls Financial Services has announced its third quarter results. The company’s Q3 consolidated net profit was up 31% at Rs 324 crore versus Rs 247.4 crore, year-on-year, YoY. Its consolidated income from operations was up 31% at Rs 1,148 crore versus Rs 875 crore, YoY. Other key performance metrics were as following: The company’s Q3 NII stands at Rs 544 crore. Cost-to-income ratio was around 18% range. Company’s net worth stands at Rs 5,382 crore. Q3 Net Gearing at 4.5x. Net leverage continues to be at comfortable levels. Expect spreads to be stable or marginally higher going ahead. Book grew by 30% in Q3. Expect housing biz to grow by 25-30% going forward. This NBFC which has been re-positioning itself as a housing finance major has openly disclosed that it is currently not interested in a banking licence.

Jubilant Foodworks, which runs retail chain Domino’s Pizza in India, has reported numbers for the third quarter of financial year 2012-13. Net profit grew by 30 percent yearon-year to Rs 37.7 crore in OctoberDecember quarter. Total income rose by 39 percent to Rs 385.1 crore from Rs 277 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 30.2 percent YoY to Rs 67.7 crore while operating profit margin declined 130 basis points YoY to 17.6 percent in the December quarter. Growth in same store sales too was disappointing coming in at 16.1 percent.

31%

Page Industries Page Industries, the exclusive licensees of Jockey International (USA) in India, has posted net profits of Rs 25.4 crore for the quarter ended December 31, 2012 as compared to Rs 19.9 crore for same quarter last year, an increase of 27.80 percent. Total income was at Rs 216.2 crore for the quarter ended December 31, 2012 whereas it was at Rs 1,72.1 crore for same quarter last year, an increase of 25.62 percent. The company has reported an EPS of Rs 22.79 for this quarter as compared to Rs 17.83 for the quarter ended December 31, 2011. Page Industries, located in Bangalore, is the exclusive licensees of Jockey International (USA) for manufacture and distribution of the Jockey brand innerwear/leisurewear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE. Page Industries is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India.

28%

30% Phoenix Mills

28% TTK Prestige Kitchen appliances company TTK Prestige’s net profit rose by 27.5 percent year-on-year to Rs 44.1 crore in the third quarter of current financial year 2012-13. Total income increased 30.75 percent to Rs 438 crore from Rs 335 crore during the same period.

Phoenix Mills has reported a standalone sales turnover of Rs 69.34 crore and a net profit of Rs 34.14 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 12.59 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 50.49 crore and net profit was Rs 26.90 crore., and other income Rs 11.28 crore.

27%

Top 100 stocks Set to Gain on Q3 Performance Marico

Mumbai-headquartered Marico’s consolidated net profit rose by 21.4 percent year-on-year to Rs 102 crore in the third quarter of financial year 2012-13. Consolidated net sales grew by 10 percent (below forecast) to Rs 1,164 crore from Rs 1,058 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased more than 36 percent to Rs 166.4 crore from Rs 122 crore year-onyear. Operating margin improved by 270 basis points YoY to 14.2 percent.

Mahindra & Mahindra Utility vehicle maker Mahindra & Mahindra on Friday said standalone net profit for the third quarter rose 26 percent from a year ago to Rs 836 crore. Net sales for the three month period rose 29 percent year-on-year to Rs 10,643 crore. Standalone EBITDA margin, however, declined to 11.2 percent from 12.1 percent a year ago. Including its 100% subsidiary Mahindra Vehicle Manufacturers Ltd (MVML) the net profit was up 30 percent at Rs 915 cr, while revenue rose 28 percent to Rs 11,522.3 crore in Oct-Dec. Last quarter, Mahindra sold 70,483 passenger utility vehicles, up 36 percent from a year ago and it also dispatched 3,814 Verito passenger cars. 6,500 vehicles were exported in Oct-Dec, M&M said. A slowdown in some of its key markets like Sri Lanka, Bangladesh and Bhutan led to a volume de-growth in exports, said Pawan Goenka, president, automotive and farm equipment sector. Competition has increased drastically in the UV space over the last 1-2 years, due to a surge in demand for predominantly diesel powdered UVs following a sharp rise in petrol prices. M&M, which makes the Scorpio, Bolero, XUV500 and Xylo range of UVs still remains the market leader with a share of 47.9 percent. “All the products of the entity’s UV portfolio continued to do well,” the company said, adding the premium SUV Rexton it has launched from its South Korean arm Ssangyong stable has received “enthusiastic” response. The company has so far sold over 55,000 units of the XUV500 SUV since it was launched around 16 months ago, Goenka said. Tractor sales, however, were slow, with Mahindra & Swaraj branded tractor sales up marginally to 62,522 from 62,342 units.

21% Sundaram Finance Sundaram Finance has reported a standalone sales turnover of Rs 547.49 crore and a net profit of Rs 113.65 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 10.27 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 444.11 crore and net profit was Rs 91.15 crore., and other income Rs 12.02 crore.

25%

26%

FEBRUARY 2013 Titan Industries

Kewal Kiran Clothing Kewal Kiran Clothing has reported a standalone sales turnover of Rs 77.45 crore and a net profit of Rs 12.00 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 2.87 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 64.61 crore and net profit was Rs 8.75 crore., and other income Rs 3.06 crore.

37% Asian paints India’s largest paint company Asian Paints’ consolidated net profit grew by 30.35 percent year-on-year to Rs 335 crore in the third quarter of financial year 2012-13. Consolidated income from operations rose by 19 percent to Rs 3,053 crore from Rs 2,567 crore during the same period. Other income increased 92.3 percent YoY to Rs 30.91 crore while finance cost declined 26 percent to Rs 7.85 crore in the OctoberDecember quarter.

30%

Titan Industries reported a 24 percent year-on-year rise in third quarter net profit at Rs 204 crore, helped by strong sales growth, particularly in the jewellery business. The company, which also makes watches and eyewear, said revenue for the Oct-Dec quarter was up 23 percent to Rs 2,983 crore. The company’s jewellery business sales rose 27 percent to Rs 2,515 crore. Watch business saw a growth of 11 percent at Rs 424 crore. However, sales in other businesses, which include precision engineering, eyewear, accessories and a B2B business, saw slow growth of 4 percent year-on-year at Rs 98 crore. “Overall sales trend is encouraging. Consumer sentiment is turning positive with the stock markets picking up. Retail stores are experiencing an increase in footfall and the festive season in this quarter was a good one for all our brands, though demand had to be stimulated through investments in mass communication. We hope to carry forward this momentum into the last quarter,” said Bhaskar Bhat, MD. In the third quarter, Titan’s total expenses were up 23 percent at Rs 2,749 crore, while input costs rose 49 percent to Rs 1,876 crore.

24%

18% City Union Bank City Union Bank’s third quarter net profit rose by 18 percent year-on-year to Rs 85.2 crore despite increase in nonperforming assets. Gross nonperforming asset (NPA) increased to Rs 178.7 crore as against Rs 166.1 crore while net NPA moved up to Rs 91.4 crore as against Rs 80.7 crore quarteron-quarter. Provisions against bad loans jumped to Rs 31 crore in OctoberDecember quarter as against Rs 27.9 crore in September quarter. Capital adequacy ratio stood at 12.39 percent, down by 87 basis points quarter-onquarter compared to 13.26 percent.

Top 100 stocks Set to Gain on Q3 Performance Dewan Housing Finance Dewan Housing Finance Corporation has reported a standalone sales turnover of Rs 840.18 crore and a net profit of Rs 91.24 crore for the quarter ended Dec ’12. Other income for the quarter was Rs 0.47 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 661.52 crore and net profit was Rs 74.97 crore., and other income Rs 0.37 crore.

22%

Axis Bank India’s third largest private sector lender Axis Bank’s October-December quarter net profit scaled up to a forecast beating 22% year-on-year to 1,347 crore, driven by three-pronged reasons: lower provisions against bad loans, higher net interest income and robust fee income. Net interest income spurted about 17% to Rs 2,495 crore while fee income shot up 15% to Rs 1,4052 crore. Net interest margin (NIM) stood at 3.57% compared with 3.46% in the JulySeptember quarter. “The Bank has recorded healthy performance in terms of growth of net interest income, fee income and operating revenue for the 9 month period ended 31st December, 2012. With slower growth in operating expenses, the bank’s operating profit and net profit have also shown healthy growth,” the lender said in a press release. During the quarter, provisions and contingencies declined to Rs 387 crore as against Rs 422 crore a year back. The bank’s loan book expanded nearly 21% to Rs 1.80 lakh crore. This is way above the industry credit growth at 16%. Axis Bank increased its focus on retail lending. Its share of retail credit upped to 27% of its net advances as against 26% earlier. Earlier, the bank had to go through some asset quality pain in select corporate loan accounts. In Q3 however, the lender managed to retain its asset quality. Gross non-performing asset ratio remained unchaged at 1.1% while net NPA ratio was little changed at 0.33%. Axis Bank restructured assets to the tune of Rs 368 crore vs Rs 323 crore in the previous quarter. Deposits grew more than 17% yo-y to Rs 2.44 lakh crore. The share of current and savings account sustained at 40%. Capital adequacy ratio too improved by 74 basis points QoQ to 13.73%.

22% NTPC India’s largest power generation company NTPC’s net profit grew by 21.9 percent year-on-year to Rs 2,596.8 crore in the third quarter of financial year 2012-13. Net sales rose just 2.5 percent - lower than analysts’ forecast, to Rs 15,775 crore from Rs 15,384 crore during the same period. PAT was higher than estimate, led by higher availability of coal leading to lower cost. Also Plant load factor increased to 84.7%. During the quater, total installed capacity increased to 38.2 GW following commercialization of 0.5GW Rihand STPS and 0.5GW Vallur TPS (JV project with TNEB).

22%

FEBRUARY 2013 Havells India Electrical power distribution equipment company Havells India’s net profit grew by 19.74 percent year-on-year to Rs 94.6 crore in third quarter of financial year 2012-13. Total income rose by 18 percent to Rs 1,058.4 crore from Rs 896.2 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 19.5 percent YoY to Rs 136.2 crore and operating profit margin improved 20 basis points YoY to 12.9 percent in OctoberDecember quarter.

20% IL&FS Transportation Networks IL&FS Transportation Networks’ consolidated net profit rose 18.5 percent year-on-year to Rs 104 crore in the third quarter of financial year 2012-13. Consolidated total income went up nearly 39 percent to Rs 1,760 crore from Rs 1,268.4 crore during the same period.

25% Tata Global Beverages Tata Global Beverages’ consolidated net profit grew by 25 percent year-on-year to Rs 80 crore in the third quarter of financial year 2012-13. Consolidated total income rose by 6 percent YoY to Rs 1,915 crore and earnings before interest, tax, depreciation & amortisation went up by 11.35 percent YoY to Rs 203 crore in the October-December quarter. Consolidated EBITDA margin improved 60 basis points year-on-year to 10.6 percent in the third quarter.

19%

Top 100 stocks Set to Gain on Q3 Performance

FEBRUARY 2013 Kajaria Ceramics

GAIL GAIL’s December quarter profit rose around 18 percent year-on-year to Rs 1284.86 crore, partly boosted by other income. Sales also rose around 11 percent year-on-year to Rs 12474.25 crore. The company said it gave Rs 700 core discount to oil retailers for selling liquefied petroleum gas (LPG) at subsidised rates. It also kept an excess provision of Rs 2100 crore for similar purpose. While the state-run company’s other income rose to Rs 154 from Rs 21.35 crore YoY, its interest cost too more than doubled to Rs 55.18 crore YoY. During the quarter, the operating profit margin decreased 7 bps to 14.07 percent YoY but better volumes contributed to higher profit. The company’s natural segment revenues rose around 11 percent YoY

Kajaria Ceramics ‘ net profit rose by 19 percent year-on-year to Rs 25 crore in the third quarter of financial year 2012-13. Net sales too grew by 19 percent to Rs 417 crore from Rs 350 crore during the same period.

18%

to Rs 10118 crore, Petchem business sales rose 26 percent to Rs 1106.98 crore. LPG vertical’s revenues also grew around 32 percent to Rs 1277.20 crore.

19%

Apollo Tyres Can Fin Homes Can Fin Homes has reported a standalone sales turnover of Rs 102.90 crore and a net profit of Rs 12.64 crore for the quarter ended Dec ’12. For the quarter ended Dec 2011 the standalone sales turnover was Rs 74.53 crore and net profit was Rs 10.77 crore.

Leading tyre manufacturer Apollo Tyres’ consolidated net profit grew by 84.7 percent year-on-year to Rs 181 crore in the third quarter of financial year 2012-13, helped by other income of Rs 26.7 crore. However, consolidated revenue declined marginally to Rs 3,217.3 crore (lower than expected) from Rs 3,228.2 crore during the same period. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) went up 18 percent year-on-year to Rs 382.1 crore in the December quarter. Meanwhile, consolidated operating profit margin improved by 180 basis points YoY to 11.8 percent as against analysts’ forecast of 11.3 percent. The company saw turnaround in its South Africa operations that posted EBIT of Rs 4.7 crore in the October-December quarter as against loss of Rs 29.7 crore in a year ago period. Europe operations EBIT increased nearly 9 percent to Rs 140.6 crore from Rs 129.2 crore during the same period.

85% 17%

VOLUME 12 ISSUE 12 DECEMBER 2013

Bahrain BD 1.50 Kuwait KD 1.50 Oman OR 1.50, Saudi Arabia SR 12.00 UAE DH 10.00 UK £ 3.00, US $ 3.00

Rs. 50

COVERSTORY

Q2 vs. Q3 H1 vs. H2 Growth vs. Inflation Rupee vs. Dollar Winners vs. Survivors Hope vs. Despair

Seasonal Magazine

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DECEMBER 2013 opens with a bang and ends with a whimper. Not only Q2 but all quarters. This time around, it started with Infy’s boom and ended with SBI’s sob. In fact, Infosys started one end of this trend - publishing results soon after the reporting period ends - long back when it became super-confident about its own capabilities including its transparency. It is remarkable that despite coughing out Rs. 214 crore to US SEC to settle alleged visa fraud recently, and despite being outsmarted by TCS for many quarters, Infy is continuing this great tradition. And in this Q2, back-as-de-factoCEO Murthy had all the reasons to deliver results in time - helped also by rupee’s fall, Infosys had great numbers to share. Apart from Infosys, the beginning point of the results timeline is nowadays shared by new claimants for the high-transparency high-growth philosophy. IndusInd Bank is the perfect example of recent times. The other end of the quarterly results timeline has had many claimants historically. Their philosophy has been simple. If our results are bad, wait the maximum before burdening our beloved shareholders with the damning news. That way, at least the wait of the fan boys for the next quarter - where fan boys expect a turnaround - is reduced. Because, by the time these kind of companies come up with their Q2, it would have been time for Infosys and IndusInd to sound their Q3! Traditionally, this end of the timeline has been an overcrowded space. In fact, if SEBI - like a school principal - hadn’t mandated that all listed companies should go home with their progress reports within 45 days, many companies wouldn’t have bothered to show their progress cards to their parents a.k.a. shareholders. That explains the mad rush at BSE/NSE around November 15th which was the deadline this time around to file Q2 numbers. The week ending November 15th usually witnesses the famed penny stocks of our times - the Cals Refineries and the Karuturi Globals of the market filing their results. So, what is a company like State Bank of India doing by publishing its results on

November 13th? In this age of ATMs and core banking is it that difficult to publish quarterly results within a week’s time for a bank, even if it is too big, even if it is ‘too big to fail‘? Mind you, if there is one business today that is capable of knowing where it stands today, where it’s financials stands at this right moment, it is banking. There must be some kind of a red switch at SBI’s headquarters, which when pressed should reveal Q2 results on September 30th itself. But what if those who are privileged to press that switch and see the results, won’t share it with fan boys nor critics? Jokes aside, it is not only a case with SBI, but with most banks, NBFCs, tech firms, and practically any company that is technologically up-to-date. The technology today is as such. But sadly, regulations today, is not as sharp. Earlier, companies had to publish audited quarterly results within 60 days. But since the last regulatory change, companies have to publish only un-audited results within 45 days, and audited results can take any time, with the only condition being that it has to be published as soon as Board of Directors approve the audited numbers. Needless to say, since that change, the bulk of what we are seeing today as quarterly numbers are un-audited figures. One of the most often repeated jokes in stock discussion forums is still funny. “Why is ABC Company not publishing its quarterly numbers?,” asks a novice. To which, a fan-boy-turned-bittercritic of ABC replies, “Wait, cooking takes time!” Despite all these criticisms, quarterly numbers are the most relevant marketmovers of our times. What is Q2 after all? It is basically the most important cue to how Q3, Q4, and beyond will pan out. Seasonal Magazine dissects the Q2 numbers of over 50 companies in diverse sectors. You will find here not only winners, but remarkable losers as well. Because, sometimes it makes sense to identify the hopeless losers too, to see if there can be a turnaround in the distant horizon. And needless to say, stocks are best bought low, and sold high, and not vice versa. Seasonal Magazine

Puravankara Battles Re Confident of High Mome Bangalor e ba sed rreal eal eest st ate de avank ar a Pr ojec Bangalore based sta devveloper Pur Pura ankar ara Projec ojectts ha hass post ed 10 per cen ea se in cconsolida onsolida evenue during Julyposted perc entt incr increa ease onsolidatted rre Sep 13-14 ccompar ompar ed with the ccorr orr esponding quartter o off 20 2013-14 ompared Septtember quar orre he leading rrealt ealt or ving br ands lik e Pur period o evious yyear ear having brands like Purvva off pr pre ear.. TThe ealtor or,, ha and Pr oviden t, is ccon on fiden ther momen tum in the ccoming oming Pro vident, onfiden fidentt o off fur further momentum quar s, with an eeyye on doubling it s, eevven while the rreal eal itss sale sales, quartter ers, tic eable slo wdo wn. est ate sec down. sta secttor is witne witnesssing a no notic ticeable slow Purva’s performance is impressive, as there is no doubt that on a pan-India basis, the real estate sector is going through a serious slowdown. Two of the nation’s top five real estate companies - DLF Ltd and Oberoi Realty Ltd - reported a drop in sales in the September quarter, reflecting a tepid property market - the result of a slowing economy and declining home buyer and corporate interest. While DLF’s sales dropped by 4.1%, Oberoi’s revenue dropped by 26.7%. Puravankara Projects posted 10 percent increase in consolidated revenue at Rs 300.8 crore during JulySeptember quarter of 2013-14 against Rs 273.7 crore in the corresponding period of previous year. Area sold increased by 21 percent for the quarter ended September 30, entailing 0.82 million sq ft compared to 0.68 million sq ft during the corresponding quarter last year. Sale value for the quarter was Rs 358.2 crore, representing a 47 percent increase from Rs 243.1 crore in the quarter ended September 30, 2012. Ravi Puravankara, Chairman and Managing Director, Puravankara Seasonal Magazine

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Projects, said, "Our financial performance is testament to the tenacity of the Puravankara and Provident business models. We remain steadfastly committed to debt reduction, quick inventory turnaround, expedited launches and sales. Macroeconomic vagaries notwithstanding, growth prospects across many micromarkets and customer segments augur well for real-estate prospects in the upcoming quarters." However, like its peers, Puravankara too witnessed a fall in net profit this quarter. The company reported 8 percent fall in consolidated net profit at Rs 46 crore for second quarter of this fiscal. It posted a net profit of Rs 50.2 crore in the year-ago period. The net profit fell due to lower share of profit from associate companies. Provident Housing is a major subsidiary of Puravankara that focuses on the affordable housing segment. The fall in net profit has been a consistent trend this quarter in the realty sector, with yet another affected company being Mahindra Lifespace Developers. The trend is not surprising as according to real estate consultant

+10% Sales YoY

Ravi Puravankara

DECEMBER 2013

markably in Q2, ntum in the Fiscal Jones Lang LaSalle India (JLL), the pan-India inventory of residential stock is now well above the comfort level of 14-15 months. This is close to the levels of 2007, when the residential real estate market’s inventories were at an all-time high. However, here too, Puravankara has a natural advantage. Compared to Mumbai’s inventory of close to 48 months, Purva’s home turf of Bangalore has only an inventory of 25 months, according to the JLL report. Chairman Ravi’s focus on micromarkets is perhaps best illustrated by Hebbal in Bangalore. The company is making the best use of the emergence of real estate hubs like Hebbal in the

city. Hebbal is situated 10 km from Majestic and 25 km from Bangalore International Airport along the junction of the busy BangaloreHyderabad Highway and Outer Ring Road. It is estimated that during the last 5 years, around 70,000 to 1 lakh high-paying jobs were created in and around Hebbal in parks like Manyata Tech Park and Kirloskar Business Park, as well as in companies like L&T Engineering Solutions. With Hebbal already home to multi-national companies like Cognizant, IBM, Fidelity, ANZ, Monsanto and Nokia, and with five more mega IT Parks now under construction expected to add 1.72 million sq. ft. of commercial

Ashish Puravankara

space within the coming years, Hebbal holds considerable more potential for residential development. As a developer native to Bangalore, Purva holds the best chance to exploit such potential. Bangalore's residential market has seen absorption levels increasing in recent years unlike other frontline cities like Mumbai and NCR-Delhi. Property absorption level has increase 22 per cent in the first half of 2013 mainly driven by homes in the mid income group. Puravankara’s twin strategies of Purva and Provident brands clearly fits into this momentum. According to Jackbastian Nazareth, Group CEO, Puravankara Projects, "Southern market is resilient as compared to other geographies like in Mumbai and NCR, as property cost is still affordable here. We have also not seen substantial increase in prices in South. We expect to double our sale in coming months. Purva plans to launch approximately 10.87 million square feet this fiscal across South.

Jackbastian K Nazareth Seasonal Magazine

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Asian Paints Surprises in Traditionally Weak Q2, Market Eyes Strong Q3 Almost every analyst was caught on the wrong foot on Asian Paints Q2. India's largest and Asia's third largest paint company was expected to post only single digit growth but surprised the market with high double digit growth. The 'Sell' recommendations prior to the result too was not surprising as Asian Paints has always been one of the most expensive stocks in the country. But post the result, expensive got even more expensive. Asian is now trading at 45 times trailing twelve months earnings, and its market cap is four times its revenues. One year forward P/E is 3035 times, and one would have to look at FY'16 P/E to comfort oneself at 25 times! One reason for the seemingly mindless bullishness on the stock is the fact that while Q2 has always been a traditionally weak quarter for paints, the third-quarter always tends to be favourable. Asian Paints which was founded in 1942 by four entrepreneurs, is still controlled by four families of Choksey, Choksi, Dani, and Vakil, but professionally managed and led by KBS Anand as MD & CEO. Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world servicing consumers in over

+37% YoY

65 countries. The company today has a formidable number of worldwide subsidiaries including Berger, SCIB, Apco Coatings, Taubmans, as well as two JVs with US based PPG Group. The reported strong numbers in second quarter (July-September), is beating street estimates on every parameter. Consolidated net profit grew 36.76 percent year-on-year to Rs 327 crore and income from operations rose 18.3 percent to Rs 3,114.7 crore in the quarter gone by. "The decorative paints business in India fared very well and registered good double digits volume growth. Good growth was witnessed across geographies especially in Tier 2 and Tier

HDFC Grows, But Slower in Q2, Hurt by Corporate Exposure to Hirco India's largest non-banking housing finance company, HDFC, continued to record growth amidst a weak realty market. HDFC continued its policy of increasing individual loans, and limiting corporate/developer loans, in this past quarter too. It is battling a serious slow down in metro cities by focusing on suburban markets around metros as well as tier-II cities. NPAs are slightly up due to a large exposure to developer Hirco (an associate of Seasonal Magazine

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Hiranandani) for their Mumbai and Chennai projects. The Housing Finance company's second quarter (JulySeptember) matched expectations with the standalone net profit rising 10 percent year-on-year to Rs 1,266.33 crore. Net interest income increased 14 percent on yearly basis to Rs 1,579 crore in the quarter gone by. Income from operations grew 13.2 percent to Rs 5,859.19 crore during September quarter from Rs 5,175.34 crore in a year

3 cities, said KBS Anand, MD and CEO. Profit was partially boosted by other income that increased to Rs 45.4 crore in second quarter from Rs 21.6 crore in a year ago period. Other income included Rs 25.75 crore being the dividend received from its wholly owned subsidiary, Asian Paints International, Mauritius. Consolidated earnings before interest, tax, depreciation & amortisation (EBITDA) increased 33 percent on yearly basis to Rs 480 crore and EBITDA margin spiked 1.8 percent Yo-Y to 15.6 percent in the quarter gone by. "Industrial coatings business continues to be affected by the economic slowdown and automotive coatings growth was subdued due to lower demand in the auto sector," Anand said. The board of directors approved a payment of interim dividend of Rs 1.1 per share for the year ended March 31, 2014. Meanwhile, Asian Paints International (APIL), a subsidiary firm, acquired an additional stake of 25.72 percent in its subsidiary Berger International, Singapore (BIL) during the quarter. It also announced voluntary unconditional cash offer to acquire balance 24.18 percent stake of BIL with an intention to delist from Singapore Exchange. As on October 18, the shareholding of APIL in BIL is 94.9 percent. Asian Paints bought 51 percent stake in kitchen solutions provider Sleek International (Sleek) for a consideration of Rs 120 crore in September quarter.

+10% YoY ago period. Dividend and profit on sale of investments declined to Rs 257.25 crore during second quarter from Rs 288.58 crore in a corresponding quarter of previous year. Total assets of the housing finance company increased 17 percent year-on-year to Rs 2.12 lakh crore in the quarter gone by while the loan book rose 19 percent to Rs 1.85 lakh crore as on September 30. Individual loan book, which comprises 70 percent of the total loan book,

DECEMBER 2013

Federal Bank's Q2 PAT rises 5%, But Net NPAs Jump YoY and QoQ

+5% YoY

Country's largest traditional private sector bank, Federal Bank, based in Kerala, has successfully come out from the rut it entered in Q1, but YoY growth in PAT was still a modest 5%. The sharp recovery in share prices was also aided by a stock-split from Rs. 10 Face Value to Rs. 2 FV. The private sector lender beat street estimates as its second quarter (July-September) profit after tax rose 5 percent yearon-year (113.7 percent sequentially) to Rs 226 crore on improved margins. Net interest income increased by 8.4 percent Y-o-Y to Rs 548.4 crore. Asset quality and net interest margin of the bank improved in the quarter gone by while provisions fell 5 percent to Rs 128 crore in second quarter from Rs 134.5 crore in a year ago period. Net interest margin climbed 17 basis points Y-o-Y to 3.30 percent. Gross non-performing assets (GNPAs) declined 1.1 percent sequentially (up 2 percent year-on-year) to Rs 1,466 crore while net NPAs jumped 10 percent Q-o-Q (up 68 percent Y-o-Y) to Rs 411.4 crore in second quarter. Gross NPAs slipped 12 bps Q-o-Q (down 44 bps Y-o-Y) to 3.39 percent while net NPAs increased 7 bps Q-o-Q (up 23 bps Y-o-Y) to 0.98 percent in the quarter gone by. Other income increased 2.8 percent on yearly basis to Rs 143.4 crore in September quarter, but core other income (excluding trading gains and recovery from written off accounts) jumped 10.2 percent Y-o-Y to Rs 128.4 crore. Deposits grew 14.69 percent while net advances jumped 16.3 percent year-onyear. NRE deposits surged 55.5 percent Y-o-Y.

climbed 29 percent including loans sold in last one-year. "We are on target to achieve loan growth of 18-20 percent in FY14," Keki Mistry, vice-chairman & CEO said. Gross non-performing loans stood at Rs 1,473 crore as on September 30, which is equivalent to 0.79 percent of the loan portfolio (0.77 percent in a year ago period) and based on a six-month overdue basis, it is 0.42 percent of the loan portfolio (0.48 percent in previous year). Provision for contingencies were Rs 1,811 crores as on September 30, of which Rs 536 crore is on account of non-performing assets and the balance Rs 1,275 crore is in respect of general provisioning on

standard loans and other provisions, HDFC said in its release. Unrealised gains on HDFCâ&#x20AC;&#x2122;s listed investments were Rs 28,938 crore, excluding the appreciation in the value of unlisted investments. For the period of six months ended September 30, consolidated profit after tax increased 26 percent year-on-year to Rs 3,598.27 crore. Spread on loans over the cost of borrowings for six months stood at 2.24 percent and net interest margin for the same period was 4.1 percent. "Margins will remain stable above 4 percent and spreads will remain in the range of 2.2-2.3 percent," Keki Mistry said. Seasonal Magazine

BANK OF INDIA SURP AS INNOVATIVE STRA ank of India has surprised the market by not only improving its bottomline beyond expectations, but by a sharp improvement in its asset quality unlike some of its peers. The results has come as a further vindication for the contrarian strategies of Chairperson VR Iyer who took over leadership of the Mumbai headquartered lender during the last December quarter. Bank of India's second quarter (JulySeptember) net profit has doubled to Rs 622 crore from Rs 302 crore in a year ago period. The market, stunned by the results, took the public sector lender's stock up by 21.47% on October 31st, the results day. The result has come as a huge inspiration for BoI as it is preparing in full swing, as the host, for the prestigious Bancon 2013, IBA's annual banking conference. Iyer's biggest strength is the fact that she is a realistic leader, even if that makes her a contrarian CMD in her industry. For example, Iyer has been candid enough to admit that Bank of India like most of its public sector peers faces an uphill task in both credit growth as well as in deposit mobilization. As another instance, While everyone is harping on retail loans to be the next gamechanger in public sector banking sphere, she forecasts that retail loans alone wonâ&#x20AC;&#x2122;t be enough to replace the volumes of large corporate loans that PSBs like BoI are known for. Bank of India has also created one of the Seasonal Magazine

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DECEMBER 2013

RISES MARKET, TEGIES DELIVER most comprehensive recovery mechanisms for addressing defaulters. This works under the direct supervision of CMD VR Iyer and Executive Directors BP Sharma, Arun Shrivastava, and R. Koteeswaran. This includes appointing over 5000 Business Correspondents for communicating with and recovering from thousands of small rural defaulters, as well as more stringent methods for addressing wilful corporate defaulters. The bank had set up Debt Recovery Branches, and is actively pursuing even written-off accounts. Like a few of its peers, BoI has indicated that it wonâ&#x20AC;&#x2122;t leave no stone unturned in its pursuit of recovery from large wilful defaulters, including methods like name-andshame strategies. All these strategies have effectively helped BoI in reversing asset quality degradation. Gross non-performing advances (NPAs) as a percentage of gross advances fell 11 basis points sequentially (down 49 bps on yearly basis) to 2.93 percent. Net NPAs as a percentage of net advances dropped 25 bps Q-o-Q (down 19 bps Y-o-Y) to 1.85 percent in three-month period ended September 2013. Provisions and contingencies declined 20.6 percent year-on-year (up 77.5 percent quarter-on-quarter) to Rs 1,232 crore during second quarter. At the same time, the large-sized PSU lender is not allowing a slack in its diligence. In fact, Provision coverage ratio has improved to 63.29 percent as on September 30 as against 60.97

+106% YoY

The latest quarterly results is all the more impressive as despite being driven by other income and lower provisions, the performance is despite a sharp jump in tax expenses. There is also a noticeable improvement in BoI asset quality.

percent in June quarter. Chairperson VR Iyerâ&#x20AC;&#x2122;s strategies are now hinging on increasing the profitability of BoI. Towards this end, the credit/deposit ratio is being improved to ultimately reach an ambitious 78%. Towards this objective, BoI is following a sixprong strategy that includes emphasis on CASA growth, expansion of SME, Retail and Rural Businesses, focus on Credit Monitoring and Recovery, inclusive growth through Financial Inclusion, progress on IT Enabled Services for better customer satisfaction, and focused attention on Human Resources. The latest quarterly results is all the more impressive as despite being driven by other income and lower provisions, the performance is despite a sharp jump in tax expenses. Net interest income, the difference between interest earned and interest expended, grew 15 percent year-on-year to Rs 2,527 crore during September quarter. While other income of the public sector lender increased to Rs 1,100 crore from Rs 894 crore Y-oY, Tax expenses surged to Rs 248.43 crore from Rs 0.10 crore during the same period. Bank of India is bullish on growing its international business too. BoI is now in operation across 20 countries with 51 offices outside the country. One more branch was opened in Tanzania during last fiscal, while the representative office in Johannesburg was upgraded to branch. The Bank now plans to open subsidiaries in Canada, Brazil, & Botswana, while a representative office will be set up in Myanmar. Seasonal Magazine

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Dewan Housing, Latest Jhunjhunwala Bet, Performs Well Dewan Housing Finance Corporation is the latest stock to catch the fancy of ace investor Rakesh Jhunjhunwala. On 18th October, Jhunjhunwala bought 25 lakh equity shares amounting to 1.94 percent of total paid-up equity capital of the Mumbai-based Dewan Housing Finance Company, taking the market by surprise, because though it is a value-buy, the stock has been dogged by perception problems due to deep troubles at cousin realty firm HDIL. DHFL claims to be the second-largest private housing finance firm behind HDFC (without counting LIC Housing Finance which is technically a private firm), but is really neck-to-neck with another private firm, Indiabulls Housing Finance. However, unlike all these players, Dewan Housing specializes in giving housing loans to the lower and middle income groups in semi-urban and rural areas, which is a more lucrative business due to higher interest rates. Though the buy by Jhunjhunwala was enough to make the stock reverse its direction, further move up will be challenging. Dewan Housing Finance Corporation has

+50% YoY

reported a standalone sales turnover of Rs 1,166.82 crore and a net profit of Rs 129.14 crore for the quarter ended Sep '13. Other income for the quarter was Rs 0.38 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 817.87 crore and net profit was Rs 85.85 crore.

+33% YoY

Kewal Kiran Performs Well in Q2 Kewal Kiran Clothing Limited (KKCL), which produces noted apparel brands, Killer, Easies, LawmanPg3, & Integriti, has put up a good show in Q2. The manufacturer, based in Mumbai, is known for producing western wear for men and women, which are largely manufactured inhouse. KKCL has consumers in Asia, Middle East and CIS. The company designs, manufactures and markets branded jeans, and a wide range of other apparel products. Kewal Kiran is also offering two franchise retail chain options - the larger K-Lounge and the smaller Addictions. KKCL has reported a standalone sales turnover of Rs 116.55 crore and a net profit of Rs 23.53 crore for the quarter ended Sep '13. Other income for the quarter was Rs 1.63 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 91.69 crore and net profit was Rs 17.65 crore, and other income Rs 2.82 crore. Seasonal Magazine

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DECEMBER 2013 Indiabulls Securities Survives Broking Rut

+101% YoY

Indiabulls Securities Ltd, one of India's mediumsized capital markets companies providing securities broking and advisory services, has come up with a reasonable performance in Q2. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. However, Indiabulls Securities has not been severely affected by the recently revealed NSEL scam that shook biggies like Motilal Oswal and IIFL. Indiabulls Securities has reported a consolidated sales turnover of Rs 67.87 crore and a net profit of Rs 24.10 crore for the quarter ended Sep '13. Other income for the quarter was Rs 4.32 crore. For the quarter ended Sep 2012 the consolidated sales turnover was Rs 40.04 crore and net profit was Rs 12.02 crore, and other income Rs 7.34 crore.

+96% YoY

CRISIL Q3 Profit rises 93% on Exceptional Gains, But RJ Cutting Stake Signalling Tough Times Admired rating agency, CRISIL, which has become a division of Standard & Poor's, has seen ace investor Rakesh Jhunjhunwala cutting stake after holding for more than 10 years, and reaping great profits. Rating agency CRISIL's third quarter (July-September) consolidated net profit climbed 93.3 percent sequentially (95.6 percent year-onyear) to Rs 117 crore on account of exceptional gain of Rs 66 crore on sale of stake in IISL. The firm sold its entire equity stake (49 percent) in India Index Services & Products (IISL), a joint venture with National Stock Exchange, for a total consideration of Rs 100 crore. "Exceptional item for the quarter represents profit of Rs 99.36 crore on a standalone basis and Rs 65.88 crore on a consolidated basis net of accumulated reserves," the company said in its release. Consolidated net sales grew 7.7 percent Q-o-Q (5.7 percent Y-o-Y) to Rs 286.40 crore in the quarter gone by. The lower growth in revenues was due to extreme volatility in the Indian financial markets, coupled with high interest rates and a decline in economic growth, according to the company. The rating agency declared an interim dividend of Rs 3 per share for the financial year ending December 31, 2013. Seasonal Magazine

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THE SILVER LINING UNION BANK’S PE here is no doubt that Union Bank of India’s Q2 results have disappointed the street. The Mumbai based lender’s second quarter profit after tax fell 62 percent year-on-year to Rs 208 crore. But beyond that headline number, are there silver linings in the horizon? The last one-month’s price-performance of the stock - which stands at around 8% up - clearly hints at these strengths despite the headline fall in net profit. In fact, on quite a few core metrics, the largesized public sector lender has fared very well in Q2. Advances grew impressively by 25.7% YoY and 7.2% QoQ. Deposits grew even better by 27% YoY, driven by strong growth in term deposits. The growth in advances was healthy in nature as the chief contributors were retail growth at 28.5%, MSME growth at 41.4%, and agri growth at 27.1%, even while credit uptake by PSU firms, witnessed a slowdown. This kind of performance is very impressive of Union Bank as the lender’s traditional portfolio was more skewed towards large corporate and PSU accounts, rather than retail. This corporate focus legacy has also been the main factor affecting Union Bank of India’s bottomline during the last few quarters, due to asset quality concerns in corporate and PSU accounts. However, the newfound resurgence in safer sectors like retail, MSME, & agriculture shows that Chairman D Sarkar’s strategies towards this end have started yielding noticeable results. Dissection of deposit growth also shows healthy Seasonal Magazine

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Advances grew impressively by 25.7% YoY and 7.2% QoQ. Deposits grew even better by 27% YoY, driven by strong growth in term deposits. The growth in advances was healthy in nature as the chief contributors were retail growth at 28.5%, MSME growth at 41.4%, and agri growth at 27.1%.

trends. CASA deposits has increased by 18% YoY taking the CASA to 28.2%. But the bank realizes that there is much more room for growth in deposits. That is why, effective from November 11 th , Union Bank has revised fixed deposit rates on select maturity by up to 1.25 per cent. Fixed deposits between 46 days to 120 days would now fetch 0.25 per cent higher interest rate of 7.50 per cent against existing 7.25 per cent, while in the slab of 31 to 45 days, interest rate is increased by 1.25 per cent to 6 per cent.

DECEMBER 2013

S IN RFORMANCE

Suresh Kumar Jain, ED D Sarkar, Chairman

+6% NII YoY

K. Subrahmanyam, ED

Rakesh Sethi, ED

The move is intended to increase the retail term deposit base of the bank. However, the bank is also playing it safe with longer term deposits. That is why it has reduced the interest rate on deposit for 5 to 7 years maturity by 0.25 per cent. Another highlight from Q2 is that non-interest income has grown by 12% YoY, due to reasonable fee income growth. Net interest income of the bank has also risen by 6 percent Y-o-Y to Rs 1,954 crore in the threemonth period ended September 2013. Going forward, Chairman Sarkar and his top management team comprising of Executive Directors Suresh Kumar Jain, K. Subrahmanyam, & Rakesh Sethi, have chalked out a tailor-made strategy for Union, even if it means taking a contrarian position with peers sometimes. For instance, the bank is refraining from raising lending rates for now, unlike peers like SBI and HDFC Bank that have raised their base rates by 20 basis points recently. The slide in Q2 net profit was largely due

to a jump in provisions and contingencies by 92 percent on yearly basis (up 37 percent sequentially) to Rs 937 crore. However, not all of this was due to NPAs. The bank has set aside more money to cover for pension, gratuity and wage revision of employees as well as a provision on losses on bond investments. Union Bank restructured loans worth Rs 1530 crore, mainly driven by power, SEBs, steel and textile. As and when the economy revives, and these sectors show a sharp improvement, Union Bank is poised for a fast revival. It is also noteworthy that in the bankâ&#x20AC;&#x2122;s large portfolio, only a few large accounts are showing asset quality strains. Union Bank is also preparing itself for the good times ahead by planning for raising equity capital by Rs. 1997 crore through preferential/QIP/Rights basis, of which Government of India has already committed for a Rs. 500 crore participation. Seasonal Magazine

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Brigade Enterprises' Q2 Sales Down, But Profits Reasonably Up

+28% YoY

Bangalore headquartered Brigade Enterprises has achieved profit growth even amidst a tough situation for realty that dented its sales. Brigade has completed over 100 residential, commercial, retail and hospitality projects, covering over 20 million sft of developable area, during its existence. Many more projects are in different stages of conceptualisation and creation, in different cities in South India. These include luxury apartments, integrated enclaves, state-of-the-art software and retail facilities, serviced residences, resorts, clubs, schools, 5-star hotels, a convention centre, hospital and an SEZ. Brigade Enterprises has reported a standalone sales turnover of Rs 171.56 crore and a net profit of Rs 19.02 crore for the quarter ended Sep '13. Other income for the quarter was Rs 9.27 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 184.58 crore and net profit was Rs 14.84 crore, and other income Rs 3.88 crore.

Mahindra Finance Performs Strongly, Despite Soaring Provisions, Lower Other Income Mahindra & Mahindra Financial Services Limited (MMFSL), which goes by the brand name of Mahindra Finance, is one of Indiaâ&#x20AC;&#x2122;s leading Rural NBFCs headquartered in Mumbai. Belonging to the Mahindra stable led by Anand Mahindra, and headed by Ramesh Iyer as MD, it is amongst the top tractor financer in India and offers Vehicle Financing, SME Financing, Housing Finance, Personal Loans, Insurance Broking, Mutual Fund Distribution, and Fixed Deposits. Recently Mahindra Finance had opted out from the race for a banking licence. Mahindra & Mahindra Financial Services' second quarter (JulySeptember) standalone profit after tax grew 18 percent yearon-year to Rs 221 crore and net interest income rose 29 percent to Rs 678 crore. Provisions increased 51 percent year-on-year to Rs 126 crore in the quarter gone by. Other income was lower at Rs 9.6 crore during September quarter as against Rs 13.5 crore in a year ago period. On consolidated basis, profit after tax of the non-banking finance company jumped 21 percent Y-o-Y to Rs 232.5 crore and net interest income rose 30 percent to Rs 738 crore in second quarter. Seasonal Magazine

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+18% YoY

DECEMBER 2013

Whirlpool of India Struggles in Q2 Whirlpool of India, a leading manufacturer of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens, Water Purifiers, Home Power, Induction Cooktops, and a wide range of Built-In appliances, has been struggling in the country against the onslaught of Korean majors Samsung and LG. Globally, however, Whirlpool is still the largest home appliances company. The firm which ventured into the Indian market in late 80s through a tieup with TVS, strengthened its presence in the 90s by buying out Kelvinator. The consumer durables firm has reported a 41.72 percent decline in net profit to Rs 16.54 crore for the second quarter ended September 30, 2013, on account of fall in sales. The company had posted a net profit of Rs 28.38 crore for the same period previous fiscal. Net sales of the company fell to Rs 586.48 crore for the quarter under review from Rs 611.17 crore for the same period last year. In the first half of the fiscal, company's net profit declined 28.84 percent to Rs 66.13 crore as against Rs 92.94 crore in the year-ago period. Net sales in H1 also declined to Rs 1,442.37 crore as against Rs 1,483.30 crore in the same period last year.

JK Lakshmi Cement's Q2 Reflects Cement Sector Woes

-42% YoY

-80% YoY

JK Lakshmi Cement, one of the large cement manufacturers of India, belonging to the Delhi-based JK Group headed by Hari Shankar Singhania, has posted disappointing results. The company belongs to the business group whose other firms are JK Tyre, JK Papers, Fenner India, and JK Risk Managers & Insurance Brokers. JK Lakshmi Cement disappointed the street with the second quarter (July-September) net profit plunging 80 percent year-onyear to Rs 10.3 crore, impacted by the steep fall in cement prices coupled with increase in freight costs. "The fall in cement demand, especially from the infrastructure and realty sectors is a cause of concern for the profitability," the company said in its release. Revenue from operations declined to Rs 449 crore during September quarter from Rs 491.4 crore in a year ago period. Earnings before interest, tax, depreciation and amortisation (EBITDA) halved to Rs 56 crore from Rs 113 crore and EBITDA margin too halved to 12.5 percent as against 23 percent during the same period. JK Lakshmi said production and sales increased 7 percent during the quarter despite depressed market in the company's marketing areas of north and west, where it has strong exposure. Its capacity will be more than doubled to 11.3 million tonne by end of FY15 from present capacity of 5.7 million tonne after completion of greenfield project at Durg, expansion of grinding capacity at Haryana, augmentation of Kiln I at Jaykaypuram and solar project in Rajasthan. Seasonal Magazine

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PRESTIGE ESTATES DELIVERS OUTPERFORMANCE Prestige proves that a superior business model and robust quality management can help in surviving the current challenges in the realty sector. Under Chairman Irfan Razackâ&#x20AC;&#x2122;s leadership, the leading developer of South India has even exceeded its guidance on many fronts on a half-yearly basis. angalore headquartered Prestige Estates Projects has posted impressive numbers for Q2, even amidst a difficult time for the realty sector. The Bangalore headquartered developer is active in various segments like Residential, Commercial, Retail, Leisure & Hospitality. The results have come as a strong vindication for the superior business model and quality management pioneered by its Chairman & Managing Director Irfan Razack. Having completed 168 Projects spanning a total developed area of over 51 million sqft, Prestige has 65 ongoing projects comprising around 54.45 million sqft & 28 upcoming projects, totalling 33.94 million sqft, which include apartment enclaves, shopping malls and corporate structures. Prestige Estates Projects has reported a standalone sales turnover of Rs 475.30 crore and a net profit of Rs 77.62 crore for the quarter ended Sep â&#x20AC;&#x2122;13. Other income for the quarter was Rs 28.81 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 241.41 crore and net profit was Rs 45.69 crore, and other income Rs 19.49 crore. Prestige has projects in Seasonal Magazine

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Irfan Razack, Chairman & MD

DECEMBER 2013 +70% YoY

Bangalore, Chennai, Hyderabad, Kochi, and Mangalore. Prestige has sold 1,193 Residential units and 0.11 million square feet of commercial space, aggregating to 1.95 million square feet amounting to Rs.11,497 million of sales in Q2. The average realization of Rs. 5,876 per Sft is up by 15% as compared to the average realization achieved for the corresponding previous year’s quarter (QII – FY12-13) of Rs. 5090 per Sft, indicating strong demand for Prestige’s offerings. The developer registered total new leasing of 0.79 million square feet up by 46% as compared to the total new leasing for the corresponding previous year’s quarter (QII – FY12-13) of 0.54 million sqft. Prestige’s net Collections for the quarter aggregated to Rs.6,198 million, up by 23% as compared to the corresponding previous year’s quarter’s (Q2 – FY12-13) collection of Rs. 5,050 million. Venkat K Narayana, Executive Director & CFO at Prestige informed that the

company’s performance is exceeding its own guidance for the fiscal on many fronts, as well as adhering to the guidance on the remaining aspects. To ensure a high level of transparency and investor confidence, the Company had set out guidance values at the beginning of the fiscal. A comparison of the performance of Prestige against the guidance for the half year ended 30 September 2013 shows that HalfYearly Sales has achieved 53% of annual guidance; turnover has achieved 51% of guidance; collections has achieved 53%; launches in million sg ft has achieved 76%; leasing in million sq ft has clocked 61%; and exit rental income has clocked 87%. Also, both consolidated and standalone debtequity ratio guidances for the full year of 0.70 and 0.45 have nearly been achieved with current ratios standing at 0.69 and 0.40 respectively. One strength of Prestige’s operations that is unique and apparent is their consistently increasing lease rental income that sustains their cash flows.

One strength of Prestige’s operations that is unique and apparent is their consistently increasing lease rental income that sustains their cash flows. Venkat K Narayana, Executive Director & CFO Seasonal Magazine

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Petronet LNG Q2 Hit Ironically By Kochi Terminal Getting Operational Strange are the ways in which even long-term positive developments can affect the fortunes of a company in the short-term. Petronet LNG has commissioned its 5 MMTPA Kochi LNG terminal in September quarter, which is a strong positive development. But for the short-term, it is going to bleed the importer and seller of liquefied natural gas (LNG) to local firms. The new 5-million tonne import terminal at Kochi boosted its depreciation charge by 27.7% and interest burden by 22% from the year-ago levels. This led to a 40% drop in profit before tax and close to 42% at the net profit level, thanks to a rise in the effective tax rate. The capacity utilisation at the new Kochi import terminal is going to be a big worry for the company due to the lack of adequate pipeline connectivity. The expected commissioning of the KochiMangalore pipeline has been pushed to October 2014, compared to May 2014 earlier. There is no clarity on the Mangalore-Bangalore pipeline too. Until these pipelines become functional, the Kochi terminal's capacity utilisation will remain below 10%. This will depress corporate earnings due to higher depreciation and interest costs. During the JulySeptember'13 period, the Kochi terminal incurred a loss of Rs 32 crore before tax, even though the terminal has been recognised as an asset in the books of accounts only from September 10, 2013. Its existing business was affected by rupee volatility which resulted in a lower demand for imported natural gas leading to a 9% y-o-y drop in volumes to 123 trillion British thermal units (tBtu). The state-run importer

-19% QoQ of liquefied natural gas, disappointed street with its opeational performance in second quarter (July-September), but revenues came in above expectations. Net profit fell 19 percent sequentially to Rs 182 crore in the quarter gone by. Net sales grew 12.8 percent quarter-on-quarter to Rs 9,449 crore in September quarter from Rs 8,377 crore in June quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 3.6 percent Q-o-Q to Rs 319 crore and EBITDA margin slipped 50 basis points on sequential basis to 3.4 percent.

Orbit Corporation Slips Into Red in Q2 Mumbai based leading developer, Orbit Corporation continues to be dogged by challenges including high debt. Led by Chairman Ravi Kiran Aggarwal and MD & CEO Pujit Aggarwal, who share a combined experience of over two decades in real estate development, Orbit has been specializing in luxury homes in some of the costliest realty markets in India. Chairman Ravi entered the real estate sector in 1989 in the satellite township of Navi Mumbai. OCL later tapped redevelopment opportunities in Mumbai, specifically in the premium locales of South Mumbai like Napeansea Road, Gamdevi, Prarthana Samaj, Tardeo and Lower Parel. Currently, it is pursuing more than ten projects, both in South Mumbai and outside of this premium region. Orbit Corporation has reported a consolidated sales turnover of Rs 31.97 crore and a net loss of Rs 26.10 crore for the quarter ended Sep '13. Other income for the quarter was Rs 3.01 crore. For the quarter ended Sep 2012 the consolidated sales turnover was Rs 100.70 crore and net profit was Rs 8.11 crore, and other income Rs 2.75 crore. Seasonal Magazine

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Net Loss

DECEMBER 2013 L&T Blames Indian Economy for Poor Q2, But Future Seems Challenging with Low-Margin Orders Dominating The slowdown in the domestic economy reflected in Larsen & Toubro 's second quarter (July-September) earnings, as net profit fell 14 percent year-on-year to Rs 978 crore, and sales rose a modest 10 percent to Rs 14509 crore. "Investment climate in the economy is yet to show sign of recovery. Deferral of new projects and delayed decision making / execution features the weak performance of the core sector this far," the company said in its release. The company's order intake rose 27 percent to Rs 26533 during the quarter, but margins were under pressure. Quarterly operating profit was flat at Rs 1405 crore, while operating margins slipped to 9.7 percent from 10.7 percent. Bottomline got an added boost from other income of Rs 449 crore, compared to Rs 331 crore last year. The margin pressure is largely due to increasing share of international orders, where profitability is lower. "International order inflow more than doubled contributing 43 percent of the total order inflow on the back of a few orders for large projects in the Middle East. The major orders came from infrastructure and hydrocarbon segments," the company said in its release. However, the company may still have to look overseas to boost its order book, given the weakness in the domestic economy. The infrastructure division, which accounts for roughly half of gross revenues, earned Rs 7181 crore, up 36 percent year-on-year. Operating margins inched to 13.3 percent from 12.4 percent, largely on lower commodity prices. Revenues from the hydrocarbon segment declined 9 percent year-on-year to Rs 2131 crore, with the company attributing it to "lower opening order book and delayed order inflows." The company said it would continue to focus on emerging prospects in the Middle East and other select international markets as part of its twin strategy to hedge against domestic slow down and attain global competitiveness.

-14% YoY

-52% YoY

UltraTech Q2 Falls Sharply, Even as Firm Expands by Taking Over Jaypee Unit India's largest cement maker UltraTech Cement disappointed the street on every parameter with its second quarter (JulySeptember) earnings. The Aditya Birla Group company belongs to the Grasim Industries stable, and has been in the news recently for taking over a unit from rival Jaypee Associates', as well as for the Group Chairman Kumarmangalam Birla being named in an FIR in the coal scam investigation by CBI. UltraTech is also India's largest exporter of cement clinker, which is the heavily traded pre-Portland form of the building material. Net profit fell 52 percent year-on-year - higher than expected - to Rs 264.1 crore, impacted mainly by lower selling prices and subdued demand. "Cement demand remained sluggish on account of prolonged monsoon and low take-off from the infrastructure and housing sectors," the company said in its release. Rupee depreciation and high diesel cost also had an impact on earnings. Net sales dropped 4.2 percent to Rs 4,502.1 crore in second quarter from Rs 4,699.4 crore in a year ago period. Earning before interest, tax, depreciation and amortisation (EBITDA) slipped 34.3 percent on yearly basis to Rs 660 crore and operating profit margin declined 670 basis points Y-o-Y to 14.7 percent in the quarter gone by. "The outlook continues to remain challenging. Demand growth in FY14 is likely to be around 5 percent, though in the long term growth is likely to be over 8 percent," the Aditya Birla group company said. The combined domestic cement and clinker sales remained unchanged at 9.1 million tonne while white cement and wall care putty sales increased to 2.75 lakh metric tonne (lmt) from 2.39 lmt in a year ago period. Meanwhile, UltraTech Cement agreed to purchase debt-laden Jaiprakash Associates' Gujarat cement unit having a capacity of 4.8 million tonnes for Rs 3,800 crore in September . Gujarat cement unit comprises of an integrated cement unit at Sewagram and grinding unit at Wankbori. "With this acquisition of 4.8 million tonnes per annum, the company's current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015," UltraTech Cement Chairman Kumar Mangalam Birla had said after announcement of the deal in September. Seasonal Magazine

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Britannia Delivers Tasty Q2 for Investors Britannia Industries reported 65.68 percent increase in consolidated net profit at Rs 97.64 crore for the second quarter ended September 30, 2013. The company had posted a consolidated net profit of Rs 58.93 crore for the same period previous fiscal. Company's net sales increased to Rs 1,740.48 crore in the July-September quarter, up 12.82 percent from Rs 1,542.67 crore during the same period last year. Overall expenses during the quarter stood at Rs 1,615.95 crore, up 8.79 percent as against Rs 1,485.27 crore in the corresponding quarter a year ago.

+66% YoY

UCO Bank Stuns Street, As Retail Focus Start Delivering Chairman Arun Kaul's strategies and patience are finally delivering. Retail has started performing while corporate business has been curtailed. Public sector lender UCO Bank surprised the street with second quarter net profit rising a whopping 3.85 times year-on-year to Rs 400 crore, driven by strong retail banking operations and MAT credit, despite higher provisions. Net interest income of the bank grew 55 percent to Rs 1,569.4 crore in three-month period ended September 2013 from Rs 1,013 crore in a year-ago quarter. Revenues from its retail banking operations jumped 48.7 percent Y-o-Y to Rs 1,554 crore while corporate/wholesale banking operations segment fell 14 percent Y-o-Y to Rs 1,990.6 crore in the quarter gone by. The bank has recognised minimum alternate tax credit to the extent of Rs 90.09 crore for the quarter and Rs 237.51 crore for the period of six-month ended September 2013. Gross non-performing advances (NPAs) climbed 26 basis points sequentially (up 44 bps on yearly basis) to 5.32 percent while net NPAs declined 2 bps Q-o-Q (but up 19 bps Y-o-Y) to 3.13 percent during second quarter. Provisions and contingencies rose 2.3 percent Q-o-Q (up 27 percent Y-o-Y) to Rs 758.7 crore in the quarter ended September 2013. Other income more than halved to Rs 209.2 crore during second quarter from Rs 462 crore in first quarter FY14. Other income in a year ago period was Rs 213 crore. During the same period, capital adequacy ratio (as per Basel III norms) declined sequentially to 12.31 percent from 12.80 percent. Seasonal Magazine

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+286% YoY

DECEMBER 2013 Reliance Power Net Profit Up, But Profitability Down Sharply

+5% YoY

Reliance Power's second quarter consolidated net profit increased 5 percent year-on-year to Rs 252 crore and net sales climbed 22.4 percent Y-o-Y to Rs 1,320.6 crore. Earnings before interest, tax, depreciation and amortisation jumped 9.7 percent on yearly basis to Rs 431 crore and operating profit margin dropped 380 basis points Y-o-Y to 32.6 percent in the quarter gone by. During the quarter, Rosa power plant of 1,200 MW was operated at availability of over 90 percent. Reliance Power says the second unit of 660 megawatt of Sasan UMPP of 3960 MW is likely to be commissioned in current month and 100 MW concentrated solar power project at Rajasthan is expected to start in FY14. Its 660 MW Butibori project in Maharasthra has signed PPA with Reliance Infrastructure for 25 years.

Eicher Motors Posts Robust Performance Eicher Motors posted 62.74 percent rise in consolidated net profit at Rs 107.43 crore for the third quarter ended September 30, 2013. The company had posted a net profit of Rs 66.01 crore during the same period of previous year. Net sales of the company rose to Rs 1,661.64 crore during the third quarter, compared to Rs 1,470.70 crore during the same period of last year. The company follows January-

December financial year. On a standalone basis, the company posted a net profit of Rs 61.79 crore for the third quarter, as against Rs 32.97 crore in the same period of previous year. Eicher Motors' performance has been in sharp contrast to the domestic operations of Tata Motors as well as Ashok Leyland. Eicher also own a winner in bike maker Royal Enfield, maker of the iconic Bullet. It also has a joint venture with international truck major, volvo.

+63% YoY

Seasonal Magazine

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+20% YoY

Glenmark Pharma Performs Reasonably in Q2

Glenmark Pharma's second quarter profit after tax rose 20% on a QoQ basis. But on an year-on-year basis, profits fell 2 percent to Rs 157.3 crore, impacted by higher finance cost and higher tax outflow. Finance cost increased to Rs 48 crore from Rs 38 crore and tax expenses jumped to Rs 63 crore from Rs 47 crore yearon-year. Revenue of the healthcare company grew 17 percent on yearly basis to Rs 1,463 crore, driven by US and India businesses. US generics business rose 29.5 percent Y-o-Y to Rs 558 crore while revenues from Europe surged 33 percent to Rs 52 crore in the quarter gone by. Sales from formulations business in India jumped 21.4 percent year-on-year to Rs 417 crore, which was much higher than industry average. "Although the operating environment continues to remain challenging in emerging markets, we are reasonably confident of continuing on the same growth trajectory," said Glenn Saldanha, chairman & MD. Generics business reported a growth of 22.5 percent on yearly basis at Rs 710.6 crore and speciality formulations grew 9.7 percent Y-o-Y to Rs 740 crore (excluding licensing income) during September quarter. Earnings before interest, tax, depreciation and amortisation soared 8 percent Y-o-Y to Rs 261.2 crore while operating profit margin declined 150 basis points year-on-year to 17.8 percent in the quarter gone by.

SBT Q2 Profits Dive Down, As NPAs Worsen

-59% YoY

State Bank of Travancore (SBT), an associate bank of State Bank of India (SBI), reported 59 percent decline in net profit to Rs 55.34 crore for the July-September quarter of 2013-14 fiscal. It had posted a net profit of Rs 135.63 crore for the same period of last fiscal. The total income in the period under review increased to Rs 2,566.09 crore from Rs 2203.92 crore in the year-ago period. During the first half of the current fiscal, the bank's net profit slipped by 24 percent at Rs 241 crore as against Rs 317.07 crore in the same period last year. The total income rose to Rs 5,183.14 crore in the first six months from Rs 4,445.91 crore in the year-ago period. As of September 30, 2013, gross non-performing assets (NPAs) of the bank was 3.50 percent of gross advances, as against 2.98 percent year a year ago. Its net non-performing assets during Q2, 2013-14 rose to 2.07 percent from 1.74 percent. Seasonal Magazine

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DECEMBER 2013

+71% YoY

Tata Motors Further Proves It is More JLR and Less Tata India's largest commercial vehicle manufacturer Tata Motors surprised market on every parameter with the second quarter consolidated net profit surging nearly 71 percent year-on-year on Jaguar Land Rover boost. However, standalone business continued posting losses amid weak economic environment. A 31 percent growth in PAT was despite weak environment in India business which was more than offset by increase in wholesale

volumes and richer product and market mix at Jaguar Land Rover (JLR). Consolidated net profit increased to Rs 3,542 crore during September quarter from Rs 2,074 crore in a year ago period. Revenues increased 31.1 percent year-on-year to Rs 56,882 crore in three-month period ended September 2013. During the same period, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 62 percent year-on-year to Rs 8,635 crore. Operating profit margin expanded 300 basis points to 15.2 percent. It reported a forex loss of Rs 72 crore during September quarter as against gain of Rs 15.3 crore in a year ago period. Standalone business (which includes commercial and passenger vehicles) remained weak for another quarter, posting a loss of Rs 803.5 crore for the quarter ended September 2013 as against loss of Rs 867 crore in a year ago period. Operating profit margin of the standalone business stood at 2 percent, impacted by competitive pressures on pricing in certain segments. Total sales volume of commercial vehicle space in the quarter stood at 1.5 lakh units, a decline of 32.5 percent compared to corresponding quarter of last fiscal. Jaguar Land Rover (JLR) JLR, which was acquired by Tata Motors in June 2008 from Ford Motor Company for USD 2.3 billion, continued to boost consolidated profits of the company. Net profit grew a whopping 66.2 percent year-on-year to £507 million and revenue jumped 40.3 percent Y-o-Y to £ 4,612 million in the quarter gone by. Margin was far better than the street forecast at 17.8 percent for the quarter ended September 2013, a growth of 300 basis points compared to a year ago period. EBITDA spiked over 69 percent Y-o-Y to £ 823 million during the same period. Strong growth in revenues and operational performance was supported by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE. US and China (accounting for 45 percent of JLR volumes) markets saw good demand in the quarter gone by. In fact, proportion of China in total volume has gone up to 24.3 percent in September from 21.6 percent in June quarter.

Vijaya Bank Q2 Net Profit Rises, Despite Higher Provisioning

+10% YoY

PSU lender Vijaya Bank's second quarter net profit grew 10.4 percent year-on-year to Rs 136.2 crore, despite higher provisions. Net interest income rose 29.2 percent on yearly basis to Rs 581.5 crore in three-month period ended September 2013. Provisions climbed 48 percent sequentially (up 23 percent year-on-year) to Rs 131.7 crore in the quarter gone by. Provision coverage ratio stood at 63.17 percent as on September 30. Gross non-performing advances (NPAs) jumped 35 basis points Q-o-Q (down 40 bps Y-o-Y) to 2.77 percent while net NPAs increased 30 bps Q-o-Q (down 15 bps Y-o-Y) to 1.75 percent during second quarter. During the quarter, the bank transferred SLR securities with book value of Rs 3,975.57 crore from AFS/ HTF categories and fully recognised securities transfer loss of Rs 77.01 crore. The bank also made adhoc provision of Rs 35 crore towards arrears of wage revision, effective from November 1, 2012, pending negotiation by IBA. Capital adequacy ratio (as per Basel III norms) improved to 10.63 percent from 10.56 percent on sequential basis. Seasonal Magazine

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Allahabad Bank Q2 Net Rises, As Some NPAs Get Sold to ARC Public sector lender Allahabad Bank's second quarter net profit grew 18 percent year-on-year to Rs 276 crore as its other income more than doubled to Rs 696 crore from Rs 302 crore during the same period. The reason for the jump was that the bank sold loans over Rs 700 crore to the ARC and earned around Rs 350 crore on account of it. Net interest income rose 12 percent on yearly basis to Rs 1,309 crore in three-month period ended September 2013. Net interest margin slipped marginally to 2.75 percent from 2.83 percent sequentially in second quarter. Gross nonperforming assets (NPAs) as a percentage of gross

advances expanded 16 basis points on sequential basis (up 199 bps on yearly basis) to 4.94 percent while net NPAs as a percentage of net advances declined 4 bps Qo-Q (up 173 basis points Y-o-Y) to 3.83 percent during September quarter. Provisions and contingencies increased 60 percent year-on-year (up 67 percent quarter-on-quarter) to Rs 742.2 crore in the quarter gone by. Provision coverage ratio stood at 45.99 percent as on September 30. The bank says current and saving account (CASA) has improved to 31 percent from 29 percent Q-o-Q and retail lending grew 17 percent Y-o-Y.

+18% YoY

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DECEMBER 2013

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HCC Turns Around in Q2, Aided by Other Income Hindustan Construction Company (HCC) is back in black as the company reported a standalone net profit of Rs 31.60 crore for the quarter ended September 30, aided by onetime gain on account of settlement with an undisclosed creditor. The leading construction firm had reported a net loss of Rs 17.87 crore in the corresponding quarter of 201213 fiscal. Net sales of the company were up 5.14 percent at Rs 908.72 crore in September 2013 quarter vis-a-vis Rs 864.26 crore of the Q2FY'13. Its expenditure, at Rs 838.22 crore, amounted to over 92 percent of its net sales. The company's other income, which also included settlement amount from the creditor, rose by over three times to Rs 112.29 crore in the last quarter as against Rs 34.81 crore of the Q2FY'13. Other income for the quarter ending September 30, 2013 include amount no longer payable of Rs 81.50 crore pursuant to a settlement arrived with creditor and interest on income tax refund of Rs 5.44 crore. Its order backlog is at Rs 12,861 crore excluding L1 (lowest bidder) contracts worth Rs 2,265 crore. Commenting on the results, HCC chief financial officer Praveen Sood said, "HCC is making all possible efforts in its control to sustain its performance during this challenging period. Focus on cost rationalisation, effective liability management and sustained operational efficiency have contributed to the performance in the second quarter." On the performances of its

Positive Turnaround YoY

subsidiaries, HCC said that Switzerland-based subsidiary Steiner AG has registered a revenue of CHF 410.7 million (Rs 2603 crore). During the last quarter, it bagged orders worth CHF 33.8 million (Rs 232.7 crore)and has secured orders for more than CHF 200 million (Rs 1376.8 crore), where the contracts are yet to be signed. Talking about Lavasa Corporation, HCC said that development in Dasve and Mugaon towns has picked up pace and till date around 520 residential units have been completed and handing over the possession is in progress. Around 4.5 lakh tourists visited Lavasa during last six months with average hotel occupancy of 70 percent. Three leading organisations have signed agreements for setting up commercial establishments in the city. Another subsidiary, HCC Infrastructure has achieved 72 percent and 59 percent progress respectively in the packages 3 and 4 of the NH 34 concession in West Bengal and commissioning date is expected within next few months. Besides, toll rates at the Dhule Palesner Highway (NH3) have been revised from September 13, 2013.

+28% YoY

LIC Housing Finance Records Good Performance in Q2 LIC Housing Finance has reported a standalone sales turnover of Rs 2,246.51 crore and a net profit of Rs 310.07 crore for the quarter ended Sep '13. Other income for the quarter was Rs 55.90 crore. For the quarter ended September 2012 the standalone sales turnover was Rs 1,840.04 crore and net profit was Rs 243.06 crore, and other income Rs 21.83 crore. LIC Housing Finance, promoted by life insurance giant LIC, is the second largest housing finance NBFC in the country, behind HDFC.

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DECEMBER 2013 Dhanlaxmi Bank Faces its September Jinx, Slips Back to Red

Net Loss

Muthoot Finance Q2 Net Down, As Gold Loan Sector Struggles

Dhanlaxmi Bank has reported its results for the quarter ended Sep '13. Standalone Net Interest Income (NII) for the quarter was Rs 336.86 crore and net loss was Rs 1.85 crore. Other income for the quarter was Rs 14.66 crore. For the quarter ended Sep 2012 the Standalone Net Interest Income (NII) was Rs 313.87 crore and net loss was Rs 18.62 crore., and other income Rs 21.99 crore. Kerala based Dhanlaxmi Bank is one of the smallest listed private banks in the country, despite being one of the oldest.

-21% YoY

Gold financing company Muthoot Finance has reported a 21.2 percent decline in net profit at Rs 211 crore for the second quarter ended September 30. The Kerala-based company had reported net profit at Rs 268 crore during the same period of previous year. For the half-year ending September 30, 2013, the profit after tax slipped by 21 percent to Rs 405 crore from Rs 514 crore registered during the same period of previous year. The total income for the quarter ending September 30, 2013 marginally declined by 1 percent to Rs 1,302 crore from Rs 1,316 crore. For the half-year ended September 30, 2013, the net profit of the company dipped to Rs 2,588 crore from Rs 2,610 crore. Muthoot Finance managing director George Alexander Muthoot said regulatory uncertainty poses bigger challenge to large NBFCs in the sector and there is no level playing field with banks as well as unorganised sector. "We continue to appraise the regulator the adverse impact of the regulations. While we recognise the fact that there is need to bring better governance systems across the industry, larger institutions who have taken pain to popularise and played a major role to bring better standards in the business mode should not be unduly squeezed", he said. Seasonal Magazine

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-35% YoY

SBI's Net Profit Down Sharply, NII Continues to Rise State Bank of Indiaâ&#x20AC;&#x2122;s second quarter net profit fell 35 percent year-on-year to Rs 2375 crore. Net interest income rose around 12 percent to Rs 12,252 crore, but so did non-performing assets (NPAs). Gross NPAs climbed to 5.64 percent from 5.56 percent in the June quarter, while net NPAs inched up to 2.91 percent from 2.83 percent. Broadly, the numbers reflect the continuing gloom in the economy, considering SBIâ&#x20AC;&#x2122;s leadership position in the banking sector. Fresh slippages declined to Rs 8365 crore from Rs 13,766 crore quarter-on-quarter. But recovery of bad loans too declined sharply at Rs 1414 crore, compared to Rs 4064 crore the previous year. The bank had to write off Rs 1253 crore worth of loans during the quarter, and upgraded the category of Rs 2383 crore worth of loans.

Canara Bank's Asset Quality Improves, But Net Profit Down Marginally

+12% NII YoY Public sector lender Canara Bank's second quarter net profit fell 5.3 percent year-onyear to Rs 625 crore, but asset quality improves on sequential basis. Net interest income rose 12 percent on a yearly basis to Rs 2,191 crore in three-month period ended September 2013. Asset quality as well as provisions declined during the quarter compared a previous quarter. Gross non-performing advances (NPAs) slipped 27 basis points quarter-on-quarter (up 6 bps year-on-year) to 2.64 percent while net NPAs dropped 18 bps Q-o-Q (up 18 bps Y-o-Y) to 2.30 percent in the quarter gone by. Provisions and contingencies declined 26.4 percent Q-oQ (up 60 percent Y-o-Y) to Rs 674 crore during September quarter. Operating expenses (including employee cost) jumped 20 percent to Rs 1,539 crore in second quarter from Rs 1,283 crore in corresponding quarter of last fiscal.

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DECEMBER 2013 Bank of Baroda Survives Tough Situation in Q2, Other Income Growth Helps Public sector lender Bank of Baroda's July-September quarter net profit fell 10.25 percent year-on-year to Rs 1,168 crore, despite higher other income, lower tax expenses and provisions. Net interest income rose over 1 percent Y-o-Y to Rs 2,895 crore in three-month period ended September 2013. Other income of the bank jumped 17.6 percent on yearly basis to Rs 974 crore during the quarter. Tax expense dropped significantly to Rs 80 crore from Rs 250.3 crore in June quarter and Rs 422 crore in a year ago period. Provisions and contingencies declined sequentially 15.4 percent (up 33.2 percent year-on-year) to Rs 861 crore in the quarter gone by. Provision coverage ratio stood at 61.68 percent as of September 30. Asset quality slighly worsened on a Q-o-Q basis. Gross nonperforming advances (NPA) as a percentage of gross advances increased 16 basis points Q-o-Q (up 117 bps Y-o-Y) to 3.15 percent while in absolute term, gross NPAs jumped 11.5 percent on sequential basis (up 85 percent on yearly basis) to Rs 10,888 crore during September quarter. Net NPAs as a percentage of net advances grew 17 bps Q-o-Q (up 104 bps Y-o-Y) to 1.86 percent and in absolute term, that rose 16 percent sequentially (up 165 percent year-on-year) to Rs 6,315 crore in second quarter. The bank says net slippages were lower sequentially and the current trend of slippages will continue. Domestic slippages were Rs 1,611 crore for the quarter as against Rs 1,835 crore in June quarter while international slippages were Rs 252 crore during the quarter, of which Rs 130 crore were due to forex volatility. Restructured loans were Rs 1,484 crore in September quarter as against Rs 1,997 crore in June quarter. Loans worth Rs 717 crore slipped into NPAs in restructured accounts. Total restructured loans stands at Rs 26,600 crore as on September 30. Bank of Baroda expects an improved trend in asset quality. Capital adequacy ratio (as per Basel III) was 12.07 percent in second quarter as against 12.46 percent in first quarter of financial year 2013-14.

Flat QoQ

+10% NII YoY

PNB Q2 Net Profit More Than Halves, But NII Up 10% India's second largest public sector lender Punjab National Bank (PNB) disappointed market with its second quarter falling 52.6 percent year-on-year to Rs 505.5 crore - the lowest in last six years - dented by higher provisions on depreciation in investment. Net interest income grew 10 percent Y-o-Y to Rs 4,015.5 crore in three-month period ended September 2013, supported by higher revenues from treasury and retail banking operations. Net interest income registered above Rs 4,000 crore-mark for the first time in bank's history. During the same period, revenues from treasury operations increased 10.4 percent Y-o-Y to Rs 2,807.43 crore and retail banking grew 12 percent to Rs 3,196.76 crore while corporate/wholesale banking fell 4 percent to Rs 5,525.52 crore. Provisions and contingencies jumped 78 percent on a sequential basis (up 77 percent on yearly basis) to Rs 1,899 crore in the quarter gone by. Provision coverage ratio increased Q-o-Q to 55.27 percent as on September 30 from 54.67 percent in June 30. Net interest margin of the bank declined to 3.47 percent during September quarter from 3.52 percent in June quarter. CMD KR Kamath said operating expenses of the bank soared 17.7 percent Y-o-Y to Rs 2,380 crore due to rise in accounting costs. Gross non-performing advances (NPAs) expanded 30 basis points Q-oQ (up 48 bps Y-o-Y to 5.14 percent while net NPAs grew 9 bps Q-o-Q (up 38 bps Y-o-Y) to 3.07 percent in the quarter gone by. In absolute terms, gross NPAs jumped 9.5 percent Q-o-Q (up 18 percent Y-o-Y) to Rs 16,526.3 crore while net NPAs rose 6 percent Q-o-Q (up 22 percent Y-o-Y) to Rs 9,609 crore during September quarter. "Fresh slippages were Rs 2,009 crore during the quarter whereas the bank restructured assets worth Rs 2,768 crore during the quarter and Rs 5,427 crore during April-September period," Kamath said. Total restructured book stands at Rs 34,816 crore as of September-end and recoveries during the quarter were Rs 1,064 crore, he added. Capital adequacy ratio (as per Basel III norms) stood at 11.62 percent in the quarter ended September 2013 from 11.79 percent in June quarter. According to him, the bank will get Rs 500 crore capital infusion from the government. Seasonal Magazine

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Reliance Communication Struggles in Q2, But Posts Huge Profit on Provision Write-Back Telecom operator Reliance Communications' second quarter consolidated net profit jumped over sixfold quarter-on-quarter to Rs 675 crore, driven by provision write back. The company, during the quarter, reassessed the requirement of maintaining balance of Rs 441 crore of provision of business restructuring created pursuant to the schemes of amalgamation approved by High Court in financial year 2006-07. The board determined that it is no longer required to maintain provision, hence that amount credited to other income. Consolidated revenues declined nearly a percent on sequential basis to Rs 5,361 crore in the quarter gone by. Voice revenue stood at Rs 3,384 crore and non-voice revenue at Rs 1,018 crore during the quarter. The company

+562% YoY

performed on bottomline as well as on operational front, but topline was a miss. Earnings before interest, tax, depreciation and amortisation increased 9 percent quarter-on-quarter to Rs 1,854 crore and operating profit margin expanded 320 basis points Qo-Q to 34.6 percent during second quarter. Average revenue per user (ARPU) fell 7 percent quarter-onquarter to Rs 120 while revenue per minute dropped 5 percent Q-o-Q to 43.4 paise in the quarter gone by. Total minutes of usage declined 3.8 percent on sequential basis to 101.5 billion minutes due to seasonality factors, which was higher compared to competitor Bharti Airtel (down 3 percent) and lower compared to Idea Cellular (down 5.8 percent).

City Union Bank Q2 Net Up Marginally, But Asset Quality Worsens Dramatically

-7% QoQ

Private sector lender City Union Bank's second quarter net profit grew 5 percent year-on-year to Rs 84.4 crore due to minimum alternate tax writeback of Rs 31.7 crore, but asset quality worsened further. Net interest income jumped 27 percent Yo-Y to Rs 190 crore in three-month-period ended September 2013. During the same period, revenues from treasury operations increased 29.5 percent Y-o-Y to Rs 130.8 crore and retail banking rose 31.5 percent to Rs 426.3 crore while revenues from corporate/wholesale banking fell 14.3 percent to Rs 144 crore in the quarter gone by. Operating expenses of the bank rose over 29 percent to Rs 110.8 crore from Rs 85.52 crore year-on-year. Gross non-performing advances (NPA) jumped 41 basis points on sequential basis (up 42 bps on yearly basis) to 1.66 percent while net NPAs surged 20 bps Q-o-Q (up 23 bps Y-o-Y) to 0.83 percent in the quarter ended September 2013. Provisions and contingencies spiked 330 percent sequentially (up 216.4 percent Y-o-Y) to Rs 88.2 crore during second quarter. Capital adequacy ratio (as per Basel III norms) increased to 14.3 percent as against 13.1 percent quarter-on-quarter.

DECEMBER 2013 Finolex Cables Records Strong Show in Q2 Punjab & Sind Bank

Posts Poor Show in Q2, As Provisions and Contigencies Soar

Finolex Cables has reported a standalone sales turnover of Rs 593.13 crore and a net profit of Rs 79.98 crore for the quarter ended Sep '13. Other income for the quarter was Rs 31.12 crore. For the quarter ended September 2012 the standalone sales turnover was Rs 585.98 crore and net profit was Rs 57.46 crore, and other income Rs 14.75 crore. Finolex Cables is one of the largest cable manufacturers in the country.

+39% YoY

OBC NII Up in Q2, Net Profit, Other Income Dip Oriental Bank of Commerce has reported its results for the quarter ended Sep '13. Standalone Net Interest Income (NII) for the quarter was Rs 4,675.84 crore and net profit was Rs 251.41 crore. Other income for the quarter was Rs 311.87 crore. For the quarter ended Sep 2012 the Standalone Net Interest Income (NII) was Rs 4414.58 crore and net profit was Rs 302.19 crore., and other income Rs 406.79 crore.

+6% NII YoY

IFCI Records Higher Sales and Profits in Q2 IFCI today reported 7.1 percent rise in net profit at Rs 140.31 crore for the second quarter ended September 30, 2013-14 fiscal. The company had posted net profit of Rs 131.01 crore during the JulySeptember quarter in the previous fiscal, 2012-13. Total income of the company during Q2, 2013-14 increased to Rs 756.95 crore from Rs 709.74 crore a year earlier. The public sector financial firm IFCI caters to the long-term funding needs of the industrial sector.

+7% YoY

Punjab & Sind Bank reported 63.3 percent drop in net profit to Rs 42.96 crore for the July-September quarter on account of rise in provisions against bad loans. The public sector bank had posted a net profit of Rs 117.07 crore for the same period of last fiscal. Provisions and contingencies during the quarter rose nearly three-fold to Rs 187.38 crore as compared to Rs 64.82 crore in the same quarter a year ago. The total income increased to Rs 1,980.38 crore, from Rs 1,885.75 crore in the year-ago period. Even operating profit fell to Rs 172.04 crore in the September quarter, as against Rs 202.49 crore in the same period of the previous fiscal. As of September 30, 2013, bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 4.12 percent of gross advances, as against 2.17 percent a year ago. Its net non-performing assets during the second quarter rose to 2.98 percent from 1.58 percent in the period a year earlier. Total business of the bank as on September 30, stood at Rs 1,29,745 crore from Rs 1,15,636 crore at end of second quarter of previous fiscal, registering a marginal growth of 12.20 percent. The board of the bank has approved issue of shares on preferential basis to the tune of Rs 100 crore. Meanwhile, the bank has introduced a new special deposit scheme for 222 days.

-63% YoY Seasonal Magazine

Apollo Tyres Q2 Profit Growth Strong, Cooper Tire Ambiguity Continues

+44% YoY

Apollo Tyres reported 44.19 percent increase in net profit at Rs 219.47 crore for the quarter ended September 30, 2013, on the back of improved product mix. The company had reported a net profit of Rs 152.2 crore in the same quarter a year ago. Apollo Tyres' net sales in the quarter under review was at Rs 3,433.46 crore, an increase of 1.73 percent as compared to Rs 3,374.82 crore in the same period last year. Commenting on the company's performance during the quarter, Apollo Tyres chairman Onkar S Kanwar said: "Our focused efforts towards improving our product and customer mix across geographies is showing its results, and is also evident from our improved bottomline despite the challenging circumstances." Elaborating further, he said: "In India, which is our largest market, while there is no upswing in the demand from the OEs, the healthy demand in the replacement market, especially for our products, has helped us to hold on to our topline." Overall expenses in the quarter were at Rs 3,115.32 crore, an increase of 0.52 percent, compared with Rs 3,099.14 crore in the corresponding quarter last year. Apollo Tyres had recently received a favourable 'partial ruling' from a US court in its dispute with Cooper Tire over their proposed USD 2.5-billion merger agreement and stated it is committed to finding a 'sensible way forward'. In June, Apollo had announced to acquire Cooper Tire & Rubber Co in an allcash transaction and the merged entity was billed to become the seventh largest tyre maker in the world.

Hotel Leela's Loss Widens Even Further Hotel Leela Venture reported that its net loss widened to Rs 135.18 crore in the second quarter ended September 30 on account of higher finance costs and expenses. The company had posted a net loss of Rs 92.49 crore a year earlier. Net sales rose to Rs 154.13 crore, up 16.29 percent from Rs 132.53 crore a year ago, it said. Finance costs rose to Rs 127.43 crore from Rs 75.03 crore while expenses climbed to Rs 188.57 crore as against Rs 154 crore previously. Seasonal Magazine

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Loss Widens

DECEMBER 2013 Sobha Developers Perform Reasonably in Q2, To Enter Kochi Market This Fiscal Realty firm Sobha Developers reported 13 percent increase in consolidated net profit at Rs 56.6 crore for the quarter ended September 30 on higher sales. The company had posted Rs 50.1 crore profit in the year-ago period. Total Income has increased by 31 percent at Rs 544.5 crore for second quarter of this fiscal from Rs 416.2 crore in corresponding period of last fiscal. As of September 30th 2013, Sobha has completed 88 real estate projects and 234 contractual projects covering about 57.87 million square feet of area. The Company currently has 45 ongoing residential projects aggregating to 27.77 million square feet of developable area and 19.35 million square feet of saleable area, and 38 ongoing contractual projects aggregating to 11.11 million square feet of area. Founded by noted entrepreneur PNC Menon and currently led by Ravi Menon as Chairman, Sobha has made a footprint in 24 cities and 13 states across India. Commenting on the results, Sobha Developers Vice Chairman and Managing Director JC Sharma said the company has performed better despite the economy growing below 5 percent, concerns on high interest rates, continuing inflationary pressures and the steep depreciation of

Indian Rupee. "We have sold 1 million sq ft of new space compared to 0.95 million sq ft in the same quarter last year. The sales value in Q2'14 has increased to Rs 632.3 crore from Rs 527.4 crore in Q2'13," he said. Average price realisation has increased to Rs 6,304 per sq ft from Rs 5,575 per sq ft a year ago. "Our performance in the first half of this financial year has also been credible with revenues increasing by 18 percent YoY, PBT and PAT by 21 percent and 12 percent respectively". On growth plans, Sharma said the company would launch 12.38 million sq ft area in existing markets during next three to four quarters. The company also plans to enter the Kochi market in Kerala during this financial year. With the help of existing inventory and the new launches planned in the coming quarters, he expressed confidence that the guidance set for the current fiscal will be achieved. "There is no denying that the headwinds prevailing in the real estate sector is perturbing. We continue to believe that our superior quality products supported by timely delivery and exemplary customer relationship management will aid in continuous and sustained growth as reflected in the H1'14 performance," Sharma said.

+13% YoY

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J&K Bank Q2 Net Up, But Not Enough to Save H1 Jammu and Kashmir Bank reported 12.2 percent increase in net profit to Rs 302.66 crore for the July-September quarter. The lender had posted a net profit of Rs 269.53 crore for the same period of last fiscal. The total income during the quarter increased to Rs 1,749.22 crore, from Rs 1591.51 crore in the year-ago period.Operating profit increased to Rs 496.48 crore in the September quarter, as against Rs 422.58 crore in the same period of the previous fiscal. During the first half of the curent fiscal, the bank's net profit declined by 18.4 percent to Rs 610.56 crore, as against Rs 515.62 crore in H1, 2012-13. Total income rose to Rs 3,465.89 crore in the first six months of this fiscal from Rs 3,161.04 crore in the year-ago period. As of September 30, 2013, bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 1.69 percent of gross advances, as against 1.59 percent year a year ago. Its net non-performing assets during the second quarter rose to 0.19 percent from 0.16 percent in the period a year earlier.

+12% YoY

Bhartiya International Delivers Strong Performance in Q2 Bhartiya International has reported a standalone sales turnover of Rs 105.57 crore and a net profit of Rs 4.63 crore for the quarter ended Sep '13. Other income for the quarter was Rs 0.73 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 72.17 crore and net profit was Rs 3.87 crore, and other income Rs 0.59 crore. One of India's largest leather goods exporters, Bhartiya International is also one of the promoters of the upcoming Bhartiya City, Bangalore, one of the largest integrated townships in India.

+20% YoY Seasonal Magazine

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DECEMBER 2013 Muthoot Capital Services Sales Higher, Profit Up Marginally Muthoot Capital Services has reported a standalone sales turnover of Rs 37.38 crore and a net profit of Rs 5.13 crore for the quarter ended Sep '13. Other income for the quarter was Rs 0.21 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 24.24 crore and net profit was Rs 5.07 crore, and other income Rs 0.39 crore. Muthoot Capital Services is a listed NBFC belonging to the financial conglomerate, Muthoot Pappachan Group, having the unlisted gold loan major Muthoot Fincorp as its largest operation.

ONGC Performs Well in Q2, Depite Higher Subsidy Burden State-controlled Oil and Natural Gas Corporation (ONGC) reported strong sequential growth in second quarter numbers with the net profit growing 51 percent to Rs 6,064 crore. Net sales rose 16 percent quarter-on-quarter to Rs 22,312 crore and earnings before interest, tax, depreciation and amortisation grew 17 percent Q-o-Q to Rs 9,930 crore in three-month period ended September 2013. ONGC shared under-recoveries of pubilc sector oil marketing companies by subsidising crude oil, domestic LPG and PDS kerosene worth Rs 13,796 crore for the September quarter as against Rs 12,330 crore in a year ago period. ONGC's profit would have increased by Rs 7,621 crore during the quarter if it had not paid subsidy to oil marketing companies. Other income of the company jumped 24 percent on a sequential basis to Rs 1,483 crore while tax expenses surged 71 percent to Rs 3,025 crore during the same period.

+51% QoQ

+1% QoQ

Dena Bank's Net Profit Dives Down, But NII and Other Income Up Dena Bank has reported its results for the quarter ended Sep '13. Standalone Net Interest Income (NII) for the quarter was Rs 2,450.09 crore and net profit was Rs 107.38 crore. Other income for the quarter was Rs 149.85 crore. For the quarter ended Sep 2012 the Standalone Net Interest Income (NII) was Rs 2193.97 crore and net profit was Rs 239.64 crore., and other income Rs 133.87 crore. Dena Bank is one of the smaller PSU banks in country, smaller than Vijaya Bank, but larger than SBI subsidiaries SBT, SBBJ, & SBM.

+12% NII YoY Seasonal Magazine

DECEMBER 2013 Tech Mahindra in Momentum, Post Satyam Merger

GIC Housing Puts Up Good Q2 Show GIC Housing Finance has reported a standalone sales turnover of Rs 154.48 crore and a net profit of Rs 24.71 crore for the quarter ended Sep '13. For the quarter ended Sep 2012 the standalone sales turnover was Rs 136.54 crore and net profit was Rs 23.15 crore. GIC Housing Finance is a medium-sized player in the sector, promoted by state-owned general insurance firms.

+58% YoY Country's fifth largest software services exporter Tech Mahindra matched expectations with the second quarter consolidated net profit growing 4.7 percent sequentially (up 57.6 percent on yearly basis) to Rs 718 crore, despite forex loss and lower other income. Consolidated revenue jumped 16.3 percent quarter-on-quarter (up 35.4 percent year-on-year) to Rs 4,771 crore in three-month period ended September 2013, which was higher compared to its peers. "The winning trio for us this quarter - growth across verticals, regions and practices reflects the Tech Mahindraâ&#x20AC;&#x2122;s new found energy and alignment to win large deals, as well as participate with customers in their transformation journey," CP Gurnani, managing director and CEO said. Its sequential dollar revenue growth of 4.7 percent (17.6 percent Y-o-Y) was better compared to peers Infosys (3.8 percent), HCL Technologies (3.5 percent) and Wipro (2.7 percent), but lower than TCS (5.4 percent). Tech Mahindra's dollar revenue increased to USD 758 million from USD 724 million on sequential basis. In fact, all IT companies reported strong earnings in the quarter gone by, owing to rupee depreciation and recovery in the US and Europe. "Europe is looking better. We are seeing greater traction in Australia and Africa," the company's management said. Earnings before interest, tax, depreciation and amortisation surged 28.6 percent Q-o-Q (up 46.8 percent Y-o-Y) to Rs 1,111 crore and operating profit margin expanded 215 basis points on sequential basis to 23.2 percent. The software firm added nine clients during the quarter, including one client of USD 20 million and 2 clients of 10 million each. Active clients increased to 576 in Q2FY14 from 567 in Q1FY14. The attrition rate was higher at 16 percent during second quarter as against 15 percent in previous quarter while utilisation rate declined to 75 percent as against 76 percent Q-o-Q. The company reduced its debt by Rs 412 crore to Rs 335 crore as of September 30. Seasonal Magazine

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+7% YoY

Shalimar Paints' Sales Down, But Net Profit Rises Reasonably Shalimar Paints has reported a standalone sales turnover of Rs 122.19 crore and a net profit of Rs 4.13 crore for the quarter ended Sep '13. Other income for the quarter was Rs 1.39 crore. For the quarter ended September 2012 the standalone sales turnover was Rs 124.52 crore and net profit was Rs 2.79 crore. Shalimar is a medium-sized player in the paint sector, positioned between giants like Asian Paints and smaller firms like Jenson Nicholson.

+48% YoY

VOLUME 13 ISSUE 3 MARCH 2014

Bahrain BD 1.50 Kuwait KD 1.50 Oman OR 1.50, Saudi Arabia SR 12.00 UAE DH 10.00 UK £ 3.00, US $ 3.00

Rs. 50

COVER STORY

Q3 RESULTS ANALYSIS

WHERE THESE 100 COMPANIES ARE GOING you have ever bought stocks, you would have done this. Stare awestruck at the graph of a stock like Eicher Motors. A graph that didn’t go anywhere much for the nine years between 2000 and 2009, and then started climbing from a modest price of Rs. 184. All through the next 5 years, it would keep on climbing, to reach Rs. 5295 recently. Going up nearly 29 times within 5 years. Not any 5 years, mind you, but one of the toughest five years that Indian industry has witnessed ever, thanks to the global financial crisis. Not only that, it was a five year period that saw steady deterioration in the specific industrial sector that Eicher was in. Almost every other commercial vehicle manufacturer including mighty Tatas, Leylands, and Mahindras found their commercial vehicle business plummeting to new depths during these same five years. What a contrarian graph Eicher has! But that is pure hindsight. You probably don’t own Eicher. Neither do we. Because five year back, who would have been interested in a tier-2 truck maker whose stock had been largely stagnant for the 9 years from 2000 to 2009? Even if you were a news buff, you wouldn’t have given much weight to Eicher forging a new tie-up with Volvo, or it slowly turning around Enfield that it had bought some years back. Instead, all of us - probably you and anyway we included - were hooked on to the big new stories of 2008-09. Reliance Power and its Ultra Mega Power Projects (UMPPs), for one example. Today, don’t we loathe to see the RPower graph? Don’t we curse Anil Ambani under our breath for turning our nest egg of 5 lakh to just 50,000 bucks within those same five years? We are entitled to curse, but then, it is again a case of pure hindsight. Nobody saw it coming. Except, those who were a bit more diligent. We all could have been more diligent, but only if knew how to be more dili-

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gent. Which brings us to the question - is there any predictive graph in the stock business? All of us are done with price graphs. We hate such hindsight graphs because our portfolio is made up of more Rpowers, and less or no Eichers. Well, there is a predictive graph, of course. It is nothing but the EPS graph. Earnings Per Share filters out much noise (like equity dilution) from the headline number of net profit. Plot each quarter’s EPS of a stock against a quarterly timeline, and you would have a neat predictive graph. More often than not, you will see the price graph trailing it in action. But the work is easily said than done. You can plot for a few companies you are passionate about, but not more. And disappointing you, many of them will turn out to be duds, after some quarters of diligent watching. Enter the concept of TTM EPS, which tries to make the work of tracking a large number of stocks easier. The concept is that using the Trailing Twelve Months (TTM) value, you have a more accurate handle on the profit or EPS run rate, without a graph. But again, it is not the full story. Stock prices depend not just on EPS growth or shrinkage, but on the Valuation multiple the market is willing to attribute to a stock. Enter P/E. Stock theories will come and go, but P/E will have its position secured as long as there are markets. If there is one number that captures the essence of a stock, it is the price/earnings multiple. Unnoticed by many, its unit is years. In short, it denotes how many years of earnings it would take for the current share price to be justifiable or break-even. Its very definition, as such, shows its predictive powers. It is a Valuation metric that the market rewards a stock with, taking into account its perceived future. Prices don’t move northward on EPS growth alone. They can very well move forward if this Valuation i.e. P/E Value moves forward, which is called positive re-rating in stock

MARCH 2014 market parlance. Similarly, prices can move southward not just on EPS shrinkage, but also when market negatively re-rates this Valuation i.e. its P/E value. Sounds confusing? That is because, you regard P/E as something derived by dividing Price by Earnings. Instead, think of Price as something derived by multiplying Earnings with this Valuation. If you plot the P/E graph of Eicher between 2009 and now, you will see this phenomenon - that the growth was not just in earnings, but also in the valuation the market was willing to give it. The reverse can be seen in the case of Reliance

Power. After all the IPO noise, when it came to the difficulties of financing and execution, the market understood that what Anil’s power company deserved was lower and lower P/E valuation. But there is even more to P/E than what first catches the eye. If you closely watch the markets, you will see some share prices continuing to climb despite P/E Valuation shrinking, and also some shares continuing to fall despite P/E Valuation getting higher. While the latter case almost always hints at immediate trouble, the former also spells trouble - future trouble to be exact - and the stock of iPhone maker Apple is a good example of this phenomenon. Despite phenomenal earnings growth, and rising stock prices, market has been negatively re-rating the stock continually with dramatically lower and lower P/E Valuation, which indicates that the future is not as bright as the current earnings would indicate. This is why not just an EPS graph, but an ongoing P/E graph is also essential to predict the future of stock prices. Again, easily said than done. That is where the concept of the most updated P/E - the TTM P/E - comes into the picture. Frequent monitoring of the TTM P/E for a stock gives an ongoing handle into whether any kind of positive or negative re-rating is taking place in the stock. Seasonal Magazine does the hard work of bringing you this crucial TTM P/E of 100 performers and non-performers in this past quarter of Q3. The task was complicated as no reliable data sources like BSE/NSE highlight consolidated TTM EPS, and are content with highlighting just the standalone figures. With more than half of noteworthy companies having major subsidiaries, standalone figures doesn’t make any sense at all. Before you delve into this collection of 100 stocks, a few caveats: P/E is a double-edged sword. Lower is better, but too lower often spells trouble like poor future outlook, and even worse, poor corporate governance. In contrast, too high a P/E may signal a rigged stock price, but moderately high stocks often hint at better-than-average investment opportunities due to low or nil capex requirement, low or zero debt, high Return on Investment (RoI), and above-average corporate governance. Also, it makes more sense to compare P/Es within the same sector, and not across different sectors. To make it more precise, even P/Es of PSU banks shouldn’t be compared with private banks. Lastly, P/E is not everything. But without P/E, there can’t be anything further in stock knowledge. So, here we go: Seasonal Magazine

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Results

EPS - Quarterly Consolidated Earnings Per Share (Quarterly Consolidated Net Profit divided by No of Equity Shares) TTM EPS - Total Consolidated EPS for Trailing Twelve Months (Last Four Quarters) Price - Stock Price

SBI’s Profit Falls, Total Income Rises, Asset Quality Yet to Stabilize

India’s largest lender State Bank of India (SBI) disappointed street with the net profit falling 34.2 percent year-on-year to Rs 2,234.34 crore in the quarter ended December 2013, dented by higher provisions and expenses. Net interest income increased 13.3 percent to Rs 12,640 crore from Rs 11,154 crore year-on-year. Total expenses shot up 20 percent to Rs 31,442.3 crore SBI while other income of the bank jumped 15.5 percent to Rs 4,190.30 crore compared to Q3(Dec13) same quarter last year. Employee expenses Q2(Sept-13) increased 35 percent year-on-year to Rs 5,867 crore in Q3FY14 due to higher Q1(June-13) provisions for salary and pension. Domestic Q4 (FY13) net interest margin improved sequentially to 3.51 percent versus 3.48 percent during TTM EPS the quarter. Gross non-performing assets Price

TTM P/E

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(NPAs) as a percentage of gross advances increased to 5.73 percent in Q3FY14 as against 5.64 percent in Q2FY14 and 5.3 percent in Q3FY13 while net NPAs rose to 3.24 percent from Rs 2.91 percent and Rs 2.59 percent during the same period. In absolute term, gross NPAs were up 5.6 percent (up 26.8 percent Y-o-Y) to Rs 67,799.3 crore EPS and net NPAs climbed 15.6 percent (up 46.5 percent on yearly basis) to Rs 37,167.35 41.50 crore compared to previous quarter. Provisions and contingencies spiked 37 44.92 percent sequentially (up 55.5 percent on 62.84 yearly basis) to Rs 4,149.6 crore, including provision for non-performing assets that 55.82 jumped 29.6 percent quarter-on-quarter (up 205.08 24 percent Y-o-Y) to Rs 3,428.6 crore during December quarter. Provision 1475.10 coverage ratio declined to 58.32 percent 7.19 from 60.16 percent on sequential basis. Fresh slippages during the quarter were Rs 11,438 crore as against Rs 8,365 crore in previous quarter while cash recovery stood at Rs 1,538 crore in the quarter gone by. Net slippages for the quarter were Rs 3,593 crore as against Rs 4,568 crore quarter-on-quarter. The bank restructured assets worth Rs 3,900 crore in the third quarter that is lower compared to Rs 8,585 crore in second quarter of current financial year 2013-14. State Bank of India’s upgradation of accounts for the quarter were Rs 1,230 crore while write-off stood at Rs 5,077 crore. Total advances of the bank increased 17.3 percent to Rs 11.5 lakh crore and deposits grew 16.4 percent to Rs 13.5 lakh crore compared to same quarter last fiscal.

MARCH 2014 TTM P/E - Price divided by Consolidated TTM EPS (Core metric showing how expensive or cheap is a stock. In the same se ctor, a lower P/E stock is cheaper than a higher P/E stock, and vice-versa. But a too low P/E than peers can hint at various underlying risks. A moderately higher P/E than peers can also hint at various strengths, even though a very high P/E shows that it is overpriced or even rigged.)

Bank of Baroda Manages Growth, But Pressure on Asset Quality Continues Public sector lender Bank of Barodaâ&#x20AC;&#x2122;s third quarter net profit rose 3.6 percent to Rs 1,047.84 crore compared to same quarter last year due to lower provisions and higher other income, but was squeezed by deferred tax liability. Pressure continued on its asset quality. Net interest income came in at Rs 3,057 crore, a growth of 7.6 percent compared to corresponding quarter of previous year. The bank created deferred tax liability of Rs 272.09 crore during the quarter ended December 2013 on account of special reserve for the nine months of current financial year, which was charged to profit & loss account. Tax expenses during the period jumped to Rs 372.2 crore from Rs 202.6 crore year-on-year. Gross non-performing assets (NPA) expanded 91 basis points (17 bps sequentially) to 3.32 percent and net NPAs rose 76 bps (4 bps) to 1.88 percent compared to a year-ago period. In absolute terms, gross NPAs jumped 63 percent year-on-year (9.5 percent quarteron-quarter) to Rs 11,925.76 crore and net NPAs doubled (up 5 percent on sequential basis) to Rs 6,623.60 crore in the quarter gone by. Slippages declined sequentially to Rs 1,553 crore from Rs 1,863 crore while the restructured assets stood at Rs 1,213 crore as against Rs

1,637 crore in September quarter. SS Mundra, CMD said the debt restructuring pipeline for the January-March quarter is at Rs 1,500-2,000 crore. He expects Q4 domestic net interest margin at 3 percent as against 2.95 percent in Q3. Provisions and contingencies slipped 26 percent Yo-Y and 11 percent Q-o-Q to Rs 761.87 crore during October-December quarter. Non-performing loan provisioning coverage ratio increased to 62.22 percent as on December 31 as against 61.68

percent in September 2013. Domestic net interest margin climbed to 2.95 percent from 2.85 percent and global net interest margin rose to 2.37 percent versus 2.32 percent quarter-on-quarter. Other income or non-interest income of the bank shot up 11 percent on yearly basis to Rs 932 crore during December quarter. Meanwhile, Bank of Baroda raised USD 750 million via overseas market in January 2014 apart from Rs 550 crore received from government through preferential issue.

Bank of Baroda EPS Q3(Dec13) 24.87 Q2(Sept-13) 27.73 Q1(June-13) 27.72 Q4 (FY13) 24.99 TTM EPS 105.31 Price 558.10

TTM P/E 5.30

SS Mundra, BoB

United Bank Slips Into Red United bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 32.25 -13.61 0.68 0.32 19.64 25.95

TTM P/E 1.32

United Bank of India, a small-sized PSU lender, has reported its results for the quarter ended Dec â&#x20AC;&#x2122;13. Standalone Net Interest Income (NII) for the quarter was Rs 2,765.53 crore and net loss was Rs 1,238.08 crore. Other income for the quarter was Rs 221.27 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 2341.06 crore and net profit was Rs 42.20 crore., and other income Rs 258.33 crore.

Archana Bhargava, United Bank Seasonal Magazine

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Results

Brigade Enterprises Defies Realty Slowdown Bangalore headquartered real estate developer Brigade Enterprises has reported a standalone sales turnover of Rs 181.97 crore and a net profit of Rs 14.86 crore for the quarter ended Dec ’13. Other income for the quarter was Rs 1.51 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 156.94 crore and net profit was Rs 6.63 crore, and other income Rs 2.14 crore.

Brigade Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.32 1.69 0.59 2.53 6.13 57.05

TTM P/E 9.31

Brigade World Trade Centre-Bangalore

HCC’s Turnaround Holds, Service Tax Claims an Overhang Hindustan Construction Company (HCC) today reported a standalone net profit of Rs 5.39 crore in the OctoberDecember quarter after cutting expenses. The construction major had reported a net loss of Rs 38.51 crore in the corresponding quarter of the previous financial year. Net sales, however, declined 14.7 percent to Rs 870.37 crore from Rs 1,020.75 crore. Total expenditure fell to Rs 713.28 crore, equivalent to about 82 percent of net sales, compared with 93.1 per cent of net sales a year earlier. Finance Ajit Gulabchand HCC

HCC Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.09 0.52 0.32 -0.82 1.24 13.05

TTM P/E 10.52 Seasonal Magazine

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costs rose 9.4 percent to Rs 156.66 crore. Company auditors K S Aiyar & Co drew attention to a demand of Rs 741.51 crore and interest related to alleged contravention of provision of service tax by the company between April 1, 2007, and March 31, 2012. The company is of the view that it has a reasonably strong case as most of the demand appears to be fictitious and the remainder can be contested since the legal outcome of the same is pending, according to the note from the auditors. Commenting on the results, Chief

Financial Officer Praveen Sood said that “despite a marginal dip in turnover, the operational efficiency we have achieved clearly manifests in this quarter.” He said HCC will continue to implement measures to improve financial parameters and “inflow of substantially big orders during the quarter will help to improve the turnover in the next few quarters.” The company had an order backlog of Rs 13,388 crore in December, including Rs 2,040 crore of contracts bagged in the last quarter. HCC was also the lowest bidder for contracts worth Rs 1,408 crore, the company said. Among HCC’s group firms, Switzerland-based Steiner AG registered revenue of CHF 188.3 million (Rs 1,230.1 crore) and net profit of CHF 1.6 million (Rs 10.2 crore) in the last quarter. The company had an order book of CHF 1.16 billion and unsigned contracts worth more than CHF 170 million. Talking about group company Lavasa Corporation, HCC said work has gathered pace at the Lavasa township near Pune and 5,300 construction workers are on the ground. The company has constructed 628 residential units and about 1.6 lakh tourists visited Lavasa in the last quarter. HCC Infrastructure, a subsidiary that builds roads, expects to start commercial operations of NH34’s Baharampore-Farakka section in West Bengal by March-end. Another section, Farakka-Raniganj, is expected to open by June.

SBM’s NII, Other Income Up, Bottomline Dives Down SBI associate bank, State Bank of Mysore, has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 1,606.02 crore and net profit was Rs 85.14 crore. Other income for the quarter was Rs 124.32 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 1503.03 crore and net profit was Rs 154.77 crore., and other income Rs 112.96 crore.

S Viswanathan, SBM

SBM Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

TTM P/E 7.62

Muthoot Capital’s Topline Soars, Net Profit Flat Kerala based listed NBFC Muthoot Capital Services, belonging to Muthoot Pappachan Group, has reported a standalone sales turnover of Rs 40.25 crore and a net profit of Rs 5.15 crore for the quarter ended Dec ’13. Other income for the quarter was Rs 0.18 crore. For Muthoot Capital EPS the quarter ended Dec Q3(Dec13) 4.13 2012 the standalone sales turnover was Rs 26.54 Q2(Sept-13) 4.11 crore and net profit was Q1(June-13) 4.79 5.28 Rs 5.16 crore, and other Q4 (FY13) income Rs 0.03 crore. TTM EPS 18.31

Price

EPS 17.73 6.33 11.08 16.28 51.42 391.80

Karur Vysya Bank Grows Topline, Other Income, Bottomline Flat South based private sector lender Karur Vysya Bank has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 1,298.00 crore and net profit was Rs 106.82 crore. Other income for the quarter was Rs 105.61 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 1072.10 crore and net profit was Rs 113.04 crore., and other income Rs 105.49 crore.

82.55

TTM P/E 4.51 Thomas John Muthoot

KVB Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price K. Venkataraman KVB

EPS 9.97 7.73 11.22 14.80 43.72 318.65

TTM P/E 7.29 Seasonal Magazine

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Results

V-Guard Expands Bottomline by 14%, To Launch New Inverters and Stabilizers Consumer electrical and electronics company, V-Guard Industries, has announced its results for the third quarter ended 31st December. Profit After Tax for the Quarter was Rs. 17.53 crores, registering a growth of 14% over corresponding period of last financial year (Rs.15.35 crores). Net Revenue from operations for the Third Quartern was Rs. 352.93 crores. Net revenue operations for the corresponding period of last financial year were Rs.349.04 crores. Robust sales was recorded in electric and solar water heaters during the quarter under review. A new model of Electric Water Heater, ‘Pebble’ was launched in the premium category and the model has been well accepted in South India and

the product will be taken to other States in the next financial year. Sales of digital UPS and pumps have been very subdued and have recorded decline for the quarter which lead to overall flat growth in sales. V-Guard Industries Limited is a Kochi based company, incepted in 1977 by Kochouseph Chittilapilly to manufacture and market Voltage stabilizers. What started in 1977 with two employees and a burning passion is now a force to reckon with in the Indian electric and electronic goods panorama. The company has since then established a strong brand name and aggressively diversified to become a multi-product company catering to the Light Electricals sector manufacturing

Kochouseph Chittilapilly, V-Guard Industries

V-Guard Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 5.88 4.85 5.91 2.99 19.63 430.75

TTM P/E 21.94 Seasonal Magazine

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Voltage stabilizers, Invertors & Digital UPS systems, Pumps, House wiring/ LT cables, Electric water heaters, Fans, Solar water heaters and has also recently forayed into Induction cooktops Switchgears and mixer grinder. Commenting on the company’s performance, Mithun K. Chittilappilly, Managing Director, VGuard Industries Ltd said the overall slowdown in Indian economy has affected the consumer goods industry to a considerable extent. However, focused efforts on various cost management measures has helped the company in retaining the margin. He said that the company is launching new series of inverters and stabilizers for the summer season.

Irfan Razack, Prestige

Uzma Irfan, Prestige

Prestige Posts Strong Growth in Volumes, Collections Prestige Estates Projects the Bangalore-based leading real estate developer reported strong performance during October-December quarter (Q3) despite slowdown in the economy. The company sold 904 units (area of 1.55 million square feet) worth Rs 940.2 crore in the quarter gone by, a growth of 24.69 percent compared to a year ago period. In December quarter of 2012, it has sold 682 units aggregating 1.44 million square feet. Collections during the same period jumped 16.69 percent year-on-year to Rs 592.3 crore from Rs 507.6 crore. Net profit improved on a

Prestige Westwoods

Prestige Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 2.30 2.22 2.48 2.59 9.59 136.90

TTM P/E 14.28 QoQ basis, but fell on a YoY basis. Prestige reported a drop of 12 percent in revenues at Rs 430 crore compared to Rs 492 crore in the previous quarter last year. Margins of the company improved sequentially due to better product mix. During the quarter, the company launched the first phase of residential project Prestige Lakeside Habitat in Bangalore and the total developable area is 2.79 million square feet. In the last nine months of the current financial year 2013-14, Prestige sold 3,141 units and 0.15 million square feet area of commercial space, totaling to 5.15 million square feet amounting to Rs 3,031.6 crore. Prestigeâ&#x20AC;&#x2122;s performance in these nine months is inline with its guidance set for this fiscal, in terms of sales, collections, and launches. The realty company is launching a farm house project in Goa for which the approval process is on. It also has two major projects under approval in Hyderabad. Seasonal Magazine

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Results

VR Iyer Bank of India

Bank of Indiaâ&#x20AC;&#x2122;s NII and NPA Performance Good, Net Profit Falls Public sector lender Bank of India disappointed street with the third quarter net profit falling 27 percent to Rs 586 crore on account of higher provisions. Net interest income grew 17.8 percent to Rs 2,719 crore in the quarter ended December 2013 as against Rs 2,308 crore in same quarter last year. Gross nonperforming assets improved to 2.81 percent during December quarter as against Rs 2.93 percent in previous quarter and 3.08 percent in same quarter last year. Net NPA declined 10 bps sequentially (22 bps year-onyear) to 1.75 percent. In absolute term, gross NPA increased 1.4 percent quarter-on-quarter (16 percent Y-o-Y) to Rs 10,023 crore Seasonal Magazine

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while net NPA declined marginally (up 13 percent on yearly basis) to Rs 6,147 crore in the quarter ended December 2013. Slippages during the quarter were higher at Rs 1,747 crore compared to Rs 1,469 crore and restructured assets too were higher at Rs 1,146 crore compared to Rs 855 crore on sequential basis. Provisions and contingencies jumped 14 percent on sequential basis (53.3 percent year-on-year) to Rs 1,403.7 crore in the quarter gone by. Provision coverage ratio improved to 63.77 percent as on December 2013 as against 63.29 percent in September 2013. Other income increased to Rs 1,097 crore from Rs 937 crore year-on-year.

BOI Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 9.66 10.43 16.18 13.04 49.31 181.75

TTM P/E 3.69

ICICI Bank’s Headline Numbers Reasonable, Asset Quality Concerns Continue India’s biggest private sector lender ICICI Bank reported stable numbers in the third quarter with the net profit growing 12.5 percent to Rs 2,532.2 crore compared to a year ago period, supported by higher net interest income and non interest income (other income). This was after the additional tax provision of Rs 215 crore for deferred tax liability on special reserve for the nine months ended December 31, 2013. Growth in profit after tax excluding this impact was 22 percent. Net interest income ICICI Bank grew 21.6 percent year-on-year to Rs 4,255 Q3(Dec13) crore in the quarter ended December 2013, driven by retail banking operations. Other Q2(Sept-13) income or non-interest income increased 26 Q1(June-13) percent on yearly basis to Rs 2,801 crore while Q4 (FY13) fee income jumped 13 percent to Rs 1,997 TTM EPS crore in the quarter gone by. Operating profit Price of the bank increased 29 percent to Rs 4,439 TTM P/E crore during December quarter. Net interest margin improved (up 25 basis points year-onyear) to 3.32 percent from 3.31 percent on sequential basis. Quarter-on-quarter domestic net interest margin of the bank climbed to 3.67 percent from 3.65 percent but international NIM declined 10 basis points to 1.7 percent during OctoberDecember quarter. “We would like to maintain net interest margin at current levels,” Chanda Kochhar, MD and CEO said. Gross non-performing assets (NPA) as a percentage of gross advances declined 3 bps quarter-on-quarter (26 bps year-on-year) to 3.05 percent while net NPA increased 9 bps sequentially (18 bps on yearly basis) to 0.94 percent in the quarter gone by. In absolute term, gross NPAs rose 3.7 percent Q-o-Q (6.5 percent Y-o-Y) to Rs 10,399 crore and net NPAs jumped 15.6 percent Q-o-Q (43 percent Y-o-Y) to

TTK Prestige’s Performance Sharply Down

Chanda Kochhar, ICICI Bank

EPS 21.93 20.38 19.71 19.98 82.00 969.10

11.82 Rs 3,118.44 crore during October-December quarter. ICICI Bank restructured loans worth Rs 8,602 crore as on December 2013 compared to Rs 6,826 crore as on September 2013. Chanda Kochhar, MD and CEO said the bank would see asset quality stress for a few quarters at least. “We will continue to see addition NPAs and restructured assets. We have recast loan pipeline of Rs 3,000 crore,” she elaborated. Its provision coverage ratio fell to 70 percent in the third quarter from 73.1 percent in second quarter and 75.4 percent in first quarter of FY14. Provisions and contingencies increased 11 percent sequentially to Rs 694.64 crore during December quarter and the year-on-year jump was 88.4 percent.

T T Jagannathan, TTK

TTK Prestige has reported a standalone sales turnover of Rs 369.44 crore and a net profit of Rs 29.49 crore for the quarter ended Dec ’13. TTK Prestige’s product range includes Pressure Cookers, Non-Stick Cookware, Rice Cookers, OTG’s, Kitchen EPS Hoods (Chimneys), Hobs, LP Gas Stoves, TTK Prestige Coffee Makers, Kettles, Sandwich Toasters Q3(Dec13) 25.33 and many other small electrical appliances. Q2(Sept-13) 26.03 TTK Prestige Limited also offers Modular Q1(June-13) 22.74 Kitchen solutions. Other income for the Q4 (FY13) 24.72 quarter was Rs 2.53 crore. For the quarter 98.82 ended Dec 2012 the standalone sales turnover TTM EPS 3080.70 was Rs 437.13 crore and net profit was Rs Price 44.10 crore, and other income Rs 0.94 crore. TTM P/E 31.17 Seasonal Magazine

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Results SBBJ’s NII and Other Income Growth Healthy, Net Profit Shows Trouble

State Bank of Bikaner and Jaipur, an associate bank of SBI, has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 2,119.97 crore and net profit was Rs 151.97 crore. Other income for the quarter was Rs 168.81 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 1915.08 crore and net profit was Rs 215.11 crore., and other income Rs 167.17 crore.

SBBJ Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 21.71 22.08 26.79 25.46 96.04 300.00

TTM P/E 3.12

Maruti Suzuki’s Results Good, Gujarat Expansion Raises Corporate Governance Red Flag India’s largest car manufacturer Maruti Suzuki (MSIL) surpassed street expectations with the third quarter net profit rising 36 percent year-on-year, driven by strong operational performance, higher localisation and favourable forex. Quarter-on-quarter growth was 1.6 percent. “Higher localisation, favourable foreign exchange and cost reduction initiatives by the company contributed significantly to net profit,” RC Bhargava, Chairman said. The lag effect of rupee depreciation in second quarter was seen in the third quarter. Net profit increased to Rs 681.15 crore from Rs 670.23 crore Q-o-Q and Rs 501.3 crore Y-o-Y. Numbers were not comparable on year-on-year basis due to the Suzuki Powertrain merger. Suzuki Powertrain was merged into Maruti on October 3, 2012, the results started to reflect from Q4FY13. Total income from operations or revenues climbed 4 percent (down 2.7 percent year-on-year) to Rs 10,893.8 crore on sequential basis while net sales grew 4 percent Q-o-Q (down 3 percent Y-oY) to Rs 10,620 crore in the quarter gone by. Operational performance was very strong during the quarter. Earnings before interest, tax, depreciation and amortisation rose 2.6 percent sequentially to Rs 1,355 crore and operating profit margin slipped 20 basis points to 12.4 percent. The market share of the company increased 2.5 Seasonal Magazine

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percent to 42.8 percent in the quarter gone by. Maruti sold a total of 2,88,151 vehicles in the quarter ended December 2013, degrowth of 4.4 percent over a year ago period. Exports dipped 38.6 percent to 19,966 units while domestic sales slipped 0.3 percent year-on-year to 2.68 lakh units. Sales of utility vehicles like Ertiga, Gypsy, Grand Vitara dropped 10.2 percent to 18,222 units and compact cars (which are Swift, Estillo, Ritz) sales declined 13.5 percent to 59,481 units. Sales of mini cars, which are M800, A star, Alto, Wagon R, grew 3.6 percent to 1.15 lakh units. Meanwhile, the board of directors decided to expand manufacturing facilities in Gujarat after more than two years the board approved the purchase of land in Mehsana district of Gujarat (on October 29, 2011). The company had kept expansion on hold due to market conditions. Since the approval, the company acquired approximately 640 acres of land in Becharaji and 550 acres

Maruti Suzuki EPS Q3(Dec13) 22.55 Q2(Sept-13) 22.19 Q1(June-13) 20.91 Q4 (FY13) 41.04 TTM EPS 106.69 Price 1658.00

TTM P/E 15.54

in Vithalpur. “The board approved implementing the expansion through a 100 percent Suzuki subsidiary Suzuki Motors Gujarat Private Limited because it would result in substantial financial benefits to MSIL and its minority shareholders,” the company said. The Suzuki subsidiary will not sell vehicles manufactured in this plant to anybody else. This subsidiary will produce vehicles according to requirements of MSIL and will be sold to MSIL only. “The price of the vehicles to MSIL will include only the cost of production actually incurred by the subsidiary and just adequate cash (net of all tax) to cover incremental capital expenditure requirements,” the release said. Bhargava said the Gujarat expansion will be funded by Suzuki subsidiary and overall investment is expected to be around Rs 3,000 crore. “It will be started with Rs 100 crore. The company, which will not be listed company, having headquarters in Ahmedabad will be set up by April 2014,” he elaborated.

Allahabad Bankâ&#x20AC;&#x2122;s Topline Helped by Other Income, NII Flat, Asset Quality Degrades Allahabad Bank EPS Q3(Dec13) 6.46 Q2(Sept-13) 5.52 Q1(June-13) 8.26 Q4 (FY13) 2.52 TTM EPS 22.76 Price 76.90

TTM P/E 3.38

IOB Performs on Total Income, Bottomline Hit by Asset Quality Public sector lender Indian Overseas Bank today reported a 35.5 percent decline in net profit to Rs 75.07 crore for the third quarter ended December 31, 2013. The Chennai-based bank had reported net profit of Rs 116.50 crore in the corresponding period of the previous year. For the nine-month period ending December 31, the net profit slipped by 34.4 percent to Rs 333.41 crore in the quarter under review from Rs 508.36 crore in the same period of the previous year. The total income in the December quarter rose to Rs 6,190.26 crore from Rs M.Narendra, IOB

5,846.98 crore in the comparable period. Gross non-performing assets (NPA) for the third quarter rose to 5.27 percent as against 4.13 percent registered during the same period of the last fiscal. Net NPA of the bank increased to 3.24 percent from 2.33 percent. Total business rose to Rs 3,87,406 crore from Rs 3,43,186 crore. Total deposits grew to Rs 2,13,319 crore as on December 31, 2013 from Rs 1,85,573 crore in the comparable period. Total gross advances increased to Rs 1,74,087 crore from Rs 1,57,613 crore. Total capital fund of the bank stands at Rs 18,943.80 crore as on December 31, 2013 as against Rs 17,219.94 crore registered as on December 31, 2012, it said. The increase in capital fund is due to infusion of capital to the extent of Rs 1,200 crore from Government of India.

IOB Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.79 1.43 1.36 0.72 4.30 44.90

TTM P/E 10.44

State-promoted lender Allahabad Bank reported 4.8 percent growth in net profit and 0.6 percent growth in net interest income year-on-year, but asset quality worsened in the quarter ended December 2013. Net profit of the bank increased to Rs 326 crore from Rs 311 crore and net interest income rose to Rs 1,337.6 crore from Rs 1,330.2 crore. The growth in profitability was largely on account of other income that jumped 59 percent to Rs 542.3 crore compared to a year ago period. Gross non-performing assets (NPAs) climbed 256 basis points year-on-year (53 bps sequentially) to 5.47 percent and net NPAs doubled (36 bps Q-o-Q) to 4.19 percent during December quarter versus 2.08 percent in a year ago period. In absolute term, gross NPAs jumped 113 percent on yearly basis (13.6 percent Q-o-Q) to Rs 7,512.14 crore while net NPAs rose 128 percent Y-o-Y (12 percent on sequential basis) to Rs 5,650.5 crore in the quarter gone by. Provisions and contingencies stood at Rs 556.9 crore in the quarter ended December 2013 as against Rs 742.2 crore in previous quarter and Rs 432.4 crore in a year ago period. Provision coverage ratio for the October-December quarter was 42.93 percent. Seasonal Magazine

Page77

Results

Jyothy Laboratories Posts Robust Growth

S.R. Bansal, Corp Bank

Corporation Bank’s Topline Expands Medium-sized PSU lender Corporation Bank has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 4,608.75 crore and net profit was Rs 126.69 crore. Other income for the quarter was Rs 338.59 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 3870.88 crore and net profit was Rs 303.17 crore., and other income Rs 386.96 crore.

EPS

Corporation Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) (FY13) TTM EPS Price

8.16 1.01 24.72 23.92 57.81 244.05

TTM P/E

4.22

City Union Bank’s NII Growth Reasonable, Asset Quality Slips Private sector lender City Union Bank’s third quarter net profit increased 4.5 percent year-on-year to Rs 89 crore due to lower provisions and higher net interest income, but asset quality weakened. Net interest income jumped 21 percent to Rs 197.5 crore from Rs 163.4 crore during the same period while other income or non-interest income declined to Rs 64.76 crore from Rs 65.89 crore. Gross nonperforming assets (NPAs) climbed to 1.70 percent as against 1.66 percent in September quarter and 1.23 percent in a year-ago period. Net NPAs rose to 0.89 percent as against Rs 0.83 percent quarter-on-quarter and 0.63 percent year-onyear. Provisions and contingencies slipped 6.4 percent (67 percent sequentially) to Rs 29.1 crore compared to corresponding quarter of last fiscal. Provisioning coverage ratio during December quarter has been maintained at 70 percent compared to September quarter.

CUB Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

Page78

Jyothy Labs Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.63 1.26 1.73 0.71 5.33 209.55

TTM P/E 39.32

EPS 1.65 1.62 1.90 1.73 6.9 48.25

TTM P/E 6.70 Seasonal Magazine

Homegrown FMCG firm Jyothy Laboratories Ltd today reported a 63.11 percent increase in its standalone net profit to Rs 27.37 crore for the third quarter ended December 31, 2013. The company had posted a standalone net profit of Rs 16.78 crore during the same period of the previous fiscal. Net sales of the company stood at Rs 296.98 crore for the quarter as compared with Rs 234.20 crore in the year-ago period. Commenting on the results, Jyothy Laboratories CMD MP Ramachandran said: “Increase of geographical footprints of our seven power brands has helped us grow at fast pace. We have strategically concentrated on investing in our brands through advertising campaigns and brand extension which is paying off well.” He further said Jyothy Laboratories would continue to expand its product portfolio. Jyothy Laboratories markets various brands, including Ujala, Maxo, Exo, pril, Margo, Fa, Mr White and Henko.

M P Ramachandran, Jyothy Laboratories

MARCH 2014 INVESTMENT

“WE INDIANS ARE SELLING STAKES IN OUR BEST COMPANIES” Aashish Somaiya, CEO, Motilal Oswal AMC, argues that Indians have one of the most promising stock markets, but are selling away invaluable stakes in some of our best companies to foreigners. This stock market veteran explains why this should stop and how to make a start in long-term profitable investing. e are lucky to be born in the India that we live in, but sadly till date foreigners have benefited more from our growth than we ourselves. 250 years back India and its business was taken over forcibly by East India Company but now we Indians have systematically sold equity in our best companies to foreigners. It’s good to be proud of India’s growth, wouldn’t it be better to invest into it and benefit from it. Start now. But how? I believe that my money has to work hard for me, I don’t believe in protecting wealth because I think protection, status quo, consolidation these kind of ideas used in conjunction with wealth generally result in slow and steady destruction of wealth. I believe in taking intelligent risks and I believe that when it comes to luck, one has to give luck a chance to work and for that taking intelligent risks is a must.

waiting for opportune time etc all of it is like saying “I will start a 100 metre race after three seconds but then I will run at double the speed and still break the record”. Life is finite, we have achievements to accomplish, families to take care of and goals to be reached. There is a limit to how much risk you can take and what rate of return you can generate, starting late only increases degree of difficulty. People associate risk with the word aggressive but still I would describe myself an aggressive investor. This is in theory purely arising out of the fact that I invest only in equity and real

Aashish Somaiya estate. At the same time, my preference for real estate and equity comes from my personal circumstances because my goals are all spread over the next 10 to 20 years and I have no immediate liabilities. Also it is because I am convinced that interest rates can only compensate inflation and they cannot give growth. There is only one way to make money consistently over long periods of time -buy right, sit tight. The opportune time to sell is if and only if you need the money. As they say in Hindi, “baaki sab mithya hai”. Please study the definitions of these words in the Oxford dictionary – Savings, Investments, Interest. We need to realize that saving is not investing and interest does nothing more than compensate for inflation. Products which pay interest do not give growth.

I would call myself a disciplined investor. Since the time I started my career, I have always had SIPs in equity funds, I bought my first house at an early age and I have always believed Warren Buffet’s maxim that expense is what your incur from the balance left after investing. Postponing investment to accumulate the right amount, getting the right deal, Seasonal Magazine

Page79

Results

Apollo Tyres Posts Excellent Bottomline Growth, Rethinks Strategy Post Failure of Cooper Deal

Puravankara Focuses on New Launches in Q3, Benefits to be Visible in Upcoming Quarters Puravankara Projects has reported a consolidated sales turnover of Rs 268.11 crore and a net profit of Rs 20.06 crore for the quarter ended Dec ’13. Other income for the quarter was Rs 0.20 crore. For the quarter ended Dec 2012 the consolidated sales turnover was Rs 310.62 crore and net profit was Rs 64.41 crore, and other income Rs 0.19 crore. The drop in profit was due to a 2.80 times rise in land costs incurred during this quarter. Purva management has noted that focus had been on new launches in third quarter, the benefits of which will be visible only in next few quarters. New launches in Q3 include Purva Westend in Hosur (Bangalore) and Purva Amaiti. Both the projects have seen strong response. Ravi Puravankara

Puravankara EPS Q3(Dec13) 0.85 Q2(Sept-13) 1.94 Q1(June-13) 3.08 Q4 (FY13) 3.69 TTM EPS 9.56 Price 62.65

TTM P/E 6.55 Ashish-Puravankara

Apollo Tyres posted a 87.15 percent increase in consolidated net profit at Rs 338.01 crore for the third quarter ended December 31, helped by benefits accruing from a better product portfolio. The company had posted a net profit of Rs 180.60 crore during the same period of previous fiscal. Consolidated net sales of the company rose to Rs 3,475.12 crore during the third quarter, compared to Rs 3,217.34 crore during the same period in the previous fiscal. “Improved and expanded product range in key markets for the company has helped us in reporting incremental revenues for the third quarter,” Apollo Tyres Chairman Onkar S Kanwar said. “This gives me confidence to invest in future growth for the company, decisions for which had been kept on hold for the past few months,” he added. For nine months ended December 31, 2013, the company posted a net profit of Rs 723.43 crore, compared to Rs 470.82 crore in the same period of previous fiscal. Post the collapse of the USD 2.5 billion deal with Cooper, Apollo Tyres is now working on a new strategy. The strategy will see revenue from overseas markets grow to 50 percent over the next five years from around 30 percent currently. As per the plan, Apollo Tyres has decided to revive its investment plans in two overseas facilities that were put on hold for over a year. One projected advantage of buying Cooper was its 25% China revenue. Now that the Cooper deal is history, Apollo is re-strategizing. One of the two new plants would come up in the ASEAN region and the other in Eastern Europe. The only contentious issue as far as Cooper Tire is concerned, which the management maintains now, is the question of whether Apollo Tyres will now be required to pay the severance fee of about a USD 112.5 million.

Apollo Tyres Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 6.71 4.36 3.29 2.81 17.17 118.80

TTM P/E 6.92 Jackbastian K. Nazareth Seasonal Magazine

Page 80

Eicher Motors Bullets Ahead With Momentum Eicher Motors has reported a consolidated sales turnover of Rs 1,679.51 crore and a net profit of Rs 96.25 crore for the quarter ended Dec ’13. Other income for the quarter was Rs 14.53 crore. For the quarter ended Dec 2012 the consolidated sales turnover was Rs 1,653.56 crore and net profit was Rs 72.72 crore, and other income Rs 27.13 crore.Royal Enfield manufacturer’s consolidated net profit grew 32.3 percent to Rs 96.2 crore compared to a year-ago period on healthy operational performance. Consolidated revenue increased marginally to Rs 1,679.5 crore from Rs 1,653 crore during the same period, but operating profit shot up 41 percent year-on-year to Rs 166.5 crore and margin expanded 290 basis points at 10 percent in the quarter ended December 2013. Siddhartha Lal, MD and CEO said the company reported healthy operational performance in a weak environment. “Operational performance was driven mainly by strong motorbike business. We achieved 20 percent margin for Royal Enfield for the first time,” he said. Lal further said the company will invest Rs 600 crore in Royal Enfield business for capacity expansion and new products. According to him, the pricing is not an issue for Royal Enfield, margin has more leeway. Commenting on the the recently introduced ‘Pro Series’ range of trucks in the 5-49 tonnes segment, Lal said the entire product range would be out in the next 18 months. When asked about progress on the 50:50 joint venture with US-based Polaris Industries, he said, “It is well on track for a commercial launch in 2015.” “We are trying to create a new segment in personal four wheel space. It is an on road personal EPS vehicle, a new segment, which Eicher Motors we are trying to create,” Lal Q3(Dec13) 35.61 said when asked about JV’s Q2(Sept-13) 39.77 product development plans. Q1(June-13) 34.19 Meanwhile, Eicher Motors has Q4 (FY13) 36.27 recommended 300 percent 145.84 dividend on the equity share TTM EPS Price 4825.00 capital (Rs 30 per share).

TTM P/E 33.08

Central Bank Back to Black, NIM Improves Impressively Pubilc sector lender Central Bank of India turned profitable with the third quarter (October-December) net profit of Rs 61.5 crore as against loss of Rs 1,509 crore in previous quarter. Profit declined 66 percent compared to a year-ago period on higher tax cost and provisions. In September quarter, it reported loss due to higher provisions that was at Rs 658 crore in the quarter gone by as against Rs 2,049 crore in previous quarter and Rs 628 crore in same quarter last year. Net interest income jumped over 28 percent year-onyear to Rs 1,807.6 crore in the quarter ended December 2013. Tax expenses for the quarter stood at Rs 150 crore as against tax write back of Rs 29 crore in corresponding quarter of last fiscal. Gross nonperforming assets (NPA) as a percentage of gross advances inched up to 6.48 percent in Q3FY14 versus 6.47 percent in Q2FY14 and 5.64 percent in Q3FY13. Net NPA declined 8 basis points sequentially and 10 bps on yearly basis to 3.69 percent during December quarter. In absolute term, gross NPAs were flat at Rs 11,599 crore as against Rs 11,563 crore on sequential basis while net NPAs declined 2 percent to Rs 6,377 crore from Rs 6,511 crore. EPS Rajeev Rishi, chairman and CBI Q3(Dec13) 0.18 managing director said net interest margin improved to Q2(Sept-13) -14.44 2.99 percent as against 2.45 Q1(June-13) 0.21 percent on sequential basis. Q4 (FY13) 1.63 “We hope to maintain net TTM EPS 2.69 interest margin levels going Price 44.85 forward,” he said. TTM P/E 16.65

Seasonal Magazine

Page81

Results Eldeco Housing Posts Tough Q3, Like Most Other Developers

Eldeco Housing has reported a standalone sales turnover of Rs 9.55 crore and a net profit of Rs 0.55 crore for the quarter ended Dec â&#x20AC;&#x2122;13. Other income for the quarter was Rs 0.88 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 14.95 crore and net profit was Rs 5.88 crore, and other income Rs 8.49 crore.

Eldeco Housing EPS Q3(Dec13) 2.80 Q2(Sept-13) 3.62 Q1(June-13) 5.37 Q4 (FY13) 2.11 TTM EPS 13.9 Price 160

TTM P/E 11.51

PNBâ&#x20AC;&#x2122;s Asset Quality Improves, But Profits Fall Public sector lender Punjab National Bank (PNB) reported 42 percent degrowth in net profit in the third quarter year-on-year, but the asset quality of the bank improved sequentially. Net profit fell to Rs 755.41 crore from Rs 1,305.62 crore on account of higher provisions and tax expenses, and lower other income. Year-on-year net interest income grew 13 percent to Rs 4,221 crore in the quarter gone by. Gross non-performing asset (NPA) as a percentage of gross advances declined 18 basis points (up 35 bps year-on-year) to 4.96 percent and net NPAs too slipped 27 bps (up 51 bps Y-o-Y) to 2.80 percent sequentially. In absolute term, gross NPAs increased 0.4 percent (up 18.6 percent on yearly basis) to Rs 16,595.84 crore while net NPAs dropped 5.5 percent sequentially (up 19.7 percent year-on-year) to Rs 9,083.99 crore in the quarter gone by. Provisions and contingencies slipped 19 percent (up 98 percent Yo-Y) to Rs 1,590 crore on sequential basis. Provision coverage ratio climbed further to 58.55 percent in the quarter ended December 2013 from 55.27 percent in September quarter and 54.67 percent in June quarter FY14. Other income fell marginally to Rs 938.43 crore from Rs 972 crore while tax expenses dropped to Rs

PNB Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 21.29 14.30 36.08 32.91 104.58 546.95

TTM P/E 5.23 Seasonal Magazine

Page 82

KR Kamath, PNB

356.9 crore from Rs 574.7 crore year-on-year. Meanwhile, the bank in its filing said an amount of Rs 166.18 crore was charged to profit & loss account during the quarter towards the amortisation relating to enhancement in gratuity limit and re-opening of pension option for existing employees. The bank has declared an interim dividend of Rs 10 per share for the financial year 2013-14.

Manappuram Zooms on CRISIL Re-rating, Despite Quarterly Numbers Slipping Slightly

VP Nandakumar, Manappuram

Manappuram EPS Q3(Dec13) 0.84 Q2(Sept-13) 0.83 Q1(June-13) 0.63 Q4 (FY13) -1.68 TTM EPS 3.06 Price 24.30

CRISIL has re-rated Manappuram Financeâ&#x20AC;&#x2122;s banking facilities from Negative to Stable, due to significant and ongoing improvement in its business metrics, as well as more friendly regulations from RBI towards NBFC gold lending activity. Manappuram Finance has reported a standalone sales turnover of Rs 534.87 crore and a net profit of Rs 71.06 crore for the quarter ended Dec â&#x20AC;&#x2122;13. Other income for the quarter was Rs 0.19 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 586.20 crore and net profit was Rs 84.38 crore, and other income Rs 11.26 crore.

TTM P/E 7.94 Seasonal Magazine

Page83

Results Tech Mahindra’s Dollar Revenue Growth Impressive, Ahead of All IT Companies

Country’s fifth largest software services provider Tech Mahindra reported 38 percent sequential growth in third quarter net profit on account of exceptional gains of Rs 346.6 crore. Net profit increased to Rs 1,001 crore from Rs 718.4 crore including exceptional gains. After excluding that, net profit stood at Rs 663.22 crore for the quarter. The company reported an exceptional gain of Rs 120 crore. “It represents write back during the quarter of the estimated excess provision for contingencies provided in an earlier year by erstwhile Satyam,” the company said. Mahindra Satyam was merged with Tech Mahindra in July 2013. It has a tax writeback of Rs 226.6 crore during the quarter. After re-evaluating the effects of the possible outcomes of the tax matters in dispute relating to erstwhile Satyam, the company has written back the excess tax provision in respect of prior years. Rupee revenues grew 2.7 percent quarter-on-quarter (33.5 percent year-on-year) to Rs 4,900 crore and dollar revenues shot up 4.35 percent

C. P. Gurnani Seasonal Magazine

Page 84

Tech Mahindra EPS Q3(Dec13) 43.48 Q2(Sept-13) 30.96 Q1(June-13) 29.60 Q4 (FY13) 29.54 TTM EPS 133.58 Price 1880.00

TTM P/E 14.07

(17.2 percent Y-o-Y) to USD 791 million. While addressing press conference, Vineet Nayyar, MD said Tech Mahindra has signed a large deal in Australia in BFSI segment in the quarter. “We will continue to grow through acquisitions,” he added. He further said the company ended Q3 on a fairly optimistic note. “We remain confident of the success of our differentiated offerings.” Nayar sees greenshots in global economy. There was a miscellaneous income of Rs 95.74 crore during the quarter, a growth of 49.3 percent over previous quarter. Tech Mahindra reported a foreign exchange loss of Rs 141.44 crore during OctoberDecember quarter as against Rs 26.06 crore in previous quarter. Operating profit margin was unchanged at 23.28 percent compared to previous quarter. On sequential basis, active clients increased to 605 from 576. Total headcount of the company increased 2,165 to 87,399 as of December 2013. Attrition rate for the quarter was stable at 17 percent. Cash and cash equivalent for the quarter was Rs 3,459 crore while debt stood at Rs 342 crore in the quarter ended December 2013. Meanwhile, the board of directors of the company increased the limit of investment by foreign institutional investors from the existing 45 percent to 48 percent of the paid up capital.

Vijaya Bank’s Profit Falls Sharply, But Asset Quality Better Vijaya Bank reported 91.1 percent drop in net profit at Rs 11.39 crore for the October- December quarter due to higher provisioning for bad loans and rise in operating expenses. The Bangalore-based public sector lender had posted net profit of Rs 126.73 crore for the same quarter of last fiscal, 2012-13. The bank’s total income in the third quarter ended December 31, 2013 increased to Rs 2,874.60 crore, from Rs 2,357.05 crore in the year-ago period. Provisions other than tax and contingencies during the quarter increased to Rs 159.41 crore as against Rs 102.72 crore in the same period of last fiscal. At the same time, operating expense of the bank rose to Rs 456.39 crore during the quarter as compared to Rs 319.18 crore. As of December 31, bank’s portfolio quality improved, with gross NPAs (non performing assets) rising to 2.67 percent of gross advances, as against 2.91 percent a year ago. Its net NPAs during the third quarter declined to 1.57 percent, from 1.71 percent in the period a year earlier.

Vijaya Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.23 2.75 2.67 3.92 9.57 35.30

TTM P/E 3.69

Sobha Developers’ Profit Rises, Profitability Dips Bangalore-based real estate company Sobha Developers’ third quarter consolidated net profit grew 11 percent to Rs 58.3 crore on higher revenues compared to same quarter last year. “We are bullish about the industry and the markets in which we operate. We have scheduled 11 million square feet of new launches in the coming four to five quarters. We also plan to enter the Kochi market in Kerala during FY14,” JC Sharma, VC and MD said. Total income from operations increased 26.6 percent to Rs 544.3 crore from Rs 430 crore during the same period. Earnings

before interest, tax, depreciation and amortisation rose 8.8 percent to Rs 149 crore but operating profit margin fell 460 basis points to 27.4 percent on higher expenses year-on-year. Total expenses jumped 34 percent to Rs 412.5 crore. The company generated Rs 162 crore of operational cash flows compared to Rs 111 crore in the previous year. Meanwhile, during the quarter Sobha Developers launched two new projects measuring 0.46 million square feet. One project in Coimbator called “elan” (joint development residential project between company and Lakshmi Machine Works) having a total saleable area of 0.32 million square feet and second project is a plotted development in Mysore “Sobha Estate”. “Both our launches in the quarter have met with good response,” JC Sharma said.

Sobha Developers EPS Q3(Dec13) 5.92 Q2(Sept-13) 5.77 Q1(June-13) 5.11 Q4 (FY13) 7.10 TTM EPS 23.90 Price 275.15

TTM P/E 11.51

IDFC Shows Reasonable Growth

Vikram Limaye, IDFC Infrastructure finance company IDFC’s consolidated profit rose by 10 percent to Rs 500.68 crore in the third quarter ended December, 2013. Company’s consolidated net profit was Rs 455.07 crore during the corresponding quarter of 2012-13. The Group has posted a net profit after taxes, minority interest and share of profit at Rs 500.68 crore for the quarter ended December 31, 2013 as compared to Rs 455.07 crore for the quarter ended December 31, 2012. Total income of the company during the quarter increased to Rs 2,122.84 crore from Rs 2,047.58 crore a year ago. On standalone basis, the company posted a net profit of Rs 475.44 crore during OctoberDecember quarter. Standalone income increased from Rs 1,974.88 crore for the quarter ended December 31, 2012 to Rs 1,995.01 crore for the quarter ended December 31, 2013.

IDFC Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 3.30 3.21 3.68 3.47 13.66 99.30

TTM P/E 7.27

Ravi Menon, Sobha Developers Seasonal Magazine

Page85

Results ING Vysya Bank Records Modest Growth

Private lender ING Vysya Bank today reported a marginal rise of 3.1 percent to Rs 167.34 crore in net profit for the third quarter of the current financial year. The bank had reported net profit of Rs 162.33 crore during the corresponding October- ING Vysya Bank EPS December quarter of 2012-13. “Total income Q3(Dec13) 8.90 has increased from Rs 1,425.46 crore for the Q2(Sept-13) 9.47 quarter ended December 31, 2012 to Rs Q1(June-13) 11.25 1,487.85 crore for the quarter ended Q4 (FY13) 11.04 December 31, 2013,” ING Vysya said. Bank’s TTM EPS 40.66 provisioning during the quarter remained Price 550.25 lower at Rs 23.01 crore as against Rs 24.60 TTM P/E 13.53

Canara Bank’s Topline Grows, Bottomline Hit by Higher Provisioning Public sector lender Canara Bank reported a 42.39 percent decline in net profit at Rs 409.35 crore for the third quarter ended December, mainly due to higher provisioning for bad loans. The bank had posted a net profit of Rs 710.51 crore in the October-December quarter of 2012-13 fiscal. Total income of the bank increased to Rs 10,935.29 crore during the quarter, from Rs 9,390.29 crore in the same period a year ago. During the quarter, the bank made bad loan provisioning of Rs 1,051 crore, against Rs 626 crore provisioning made in the corresponding quarter in 2012-13 fiscal.

Canara Bank EPS Q3(Dec13) 9.24 Q2(Sept-13) 14.13 Q1(June-13) 17.88 Q4 (FY13) 16.37 TTM EPS 57.62 Price 219.40

crore a year earlier. However, its net nonperforming assets (NPAs) or bad loans increased to 0.21 percent from 0.05 percent. But gross NPAs were trimmed to 1.68 percent from 1.77 percent.

Union Bank Comes Up With Impressive Growth, Asset Quality Concerns Linger Public sector lender Union Bank of India Friday reported a 15 percent year-on-year rise in its third quarter net profit to Rs 349 crore, helped by a sharp fall in provisions. Quarterly net income grew 4 percent to Rs 1963.5 crore. Gross non-performing assets of the bank climbed to 3.85 percent from 3.64 percent in the September quarter. Net NPAs increased to 2.26 percent from 2.15 percent. Quarterly EPS provisions stood at Rs 610 crore Union Bank for the quarter, down 29 percent Q3(Dec13) 5.79 compared to Rs 857 crore during Q2(Sept-13) 3.49 the same period last year. The Q1(June-13) 9.39 bank’s capital adequacy ratio (as Q4 (FY13) 14.15 per Basel III norms) stood at TTM EPS 32.82 10.12 percent.

Price

TTM P/E 3.81

R.K. Dubey, Canara Bank

Arun Tiwari Union Bank Seasonal Magazine

Page 86

105.25

TTM P/E 3.21

Bank of Maharashtra Records Higher NII, Profits Dive Due to Provisioning Bank of Maharashtra reported 91.8 percent dip in net profit at Rs 15.8 crore for the October-December quarter because of higher provisioning for bad loans. The Pune-based public sector lender had posted net profit of Rs 194.06 crore for the same quarter of last fiscal, 2012-13. Its total income in Q3, 2013-14 increased to Rs 3,307.49 crore, from Rs 2,710.16 crore in the year-ago period. Provisions other than tax and contingencies during the quarter increased three-fold to Rs 407.78 crore as against Rs 143.89 crore in the same period of last fiscal. Its operating profit in Q3 also declined to Rs 425.01 crore, as against Rs 525.01 crore in the year-ago period. As of December 31, bank’s portfolio quality deteriorated further, with gross NPAs rising to 4.01 percent of gross advances, as against 1.71 per cent a year ago. Its net NPAs during the third quarter rose to 2.56 percent, from 0.66 percent BoM EPS in the period a year earlier. Q3(Dec13) 0.01 Meanwhile, the bank declared an interim Q2(Sept-13) 0.50 dividend of Re 1 per share Q1(June-13) 3.81 or 10 percent of paid up Q4 (FY13) 4.13 capital for 2013-14. TTM EPS 8.45

Price

32.25

TTM P/E 3.82 Sushil Muhnot, BoM

Ashwani Kumar, Dena Bank

Dena Bank Expands Topline, Bottomline Dives Down

dena bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.97 3.07 5.40 3.59 14.03 53.00

TTM P/E 30.78

Dena Bank, a small-sized PSU lender, has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 2,533.84 crore and net profit was Rs 67.80 crore. Other income for the quarter was Rs 128.96 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 2263.96 crore and net profit was Rs 206.44 crore., and other income Rs 144.46 crore.

Punjab & Sind Bank’s Growth Impressive Punjab & Sind Bank has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 2,062.07 crore and net profit was Rs 100.11 crore. Other income for the quarter was Rs 115.51 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 1878.46 crore and net profit was Rs 73.68 crore., and other income Rs 105.02 crore.

PSB Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price JATINDERBIR SINGH, PSB

EPS 3.91 1.69 4.79 4.30 14.69 42.95

TTM P/E 2.92 Seasonal Magazine

Page87

Results OBC Posts Modest Growth in NII, Profits Slip Due to Higher Operating Expenses

Public sector bank Oriental Bank of Commerce Friday reported a 31 percent year-on-year decline in its third quarter net profit to Rs 224.3 crore, on weak growth in net interest income and higher operating expenses. Quarterly net income grew 2 percent to Rs 1230 crore. Gross non-performing assets of the bank climbed to 3.87 percent from 3.77 percent in the September quarter. Net NPAs increased to 2.91 percent from 2.69 percent. In absolute terms, gross and net NPAs were Rs 5184 crore and Rs 3833 OBC EPS crore respective. Quarterly Q3(Dec13) 7.64 provisions stood at Rs 561 crore Q2(Sept-13) 8.62 for the quarter, compared to Rs 604 crore quarter during the same Q1(June-13) 12.11 10.55 period last year. The bank’s Q4 (FY13) provision coverage ratio stood at TTM EPS 38.92 59.68 percent as on December 31, Price 168.90 and capital adequacy ratio (as per TTM P/E 4.34 Basel III norms) at 11 percent.

SL Bansal, OBC

Syndicate Bank’s NII and Profit Down, But Asset Quality Stable Syndicate Bank’s third quarter net profit fell 25.2 percent year-on-year to Rs 380 crore on low net interest income (as well as high base last year), but asset quality was stable. In Q3FY13, there was a minimum alternate tax credit of Rs 141 crore, which was not available in Q3FY14. If the same is excluded, there is an increase of Rs 13 crore in net profit in the quarter gone

Syndicate Bank EPS Q3(Dec13) 6.31 Q2(Sept-13) 7.81 Q1(June-13) 7.51 Q4 (FY13) 9.84 TTM EPS 31.47 Price 82.40

TTM P/E 2.62 Seasonal Magazine

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by. Operating profit of the bank declined 6.71 percent on yearly basis to Rs 806 crore during December quarter as the net interest income during the quarter is less by Rs 52 crore. Net interest income fell 3 percent to Rs 1,358.5 crore in the quarter ended December 2013 from Rs 1,400 crore in same quarter last year. Cost to income ratio increased to 48.39 percent

Sudhir Kumar Jain Syndicate Bank

in Q3FY14 from 47.83 percent in Q3FY13 as the net interest income was less in this quarter and also due to the superannuation of staff. Net interest margin (NIM) dropped significantly to 2.76 percent during the quarter as against 3.29 percent in corresponding quarter of last fiscal on account of the stress in the economy and more NPAs in the industry as well as in the bank. Gross non-performing asset (NPA) as a percentage of gross advances slipped 8 basis points sequentially (up 49 bps year-on-year) to 2.80 percent while net NPA was unchanged at 1.66 percent quarter-on-quarter (grew 81 bps compared to a year ago period). Yearon-year increase in gross NPA was due to high slippage in these nine months. Provisions and contingencies grew 35 percent (down 13.4 percent Y-o-Y) to Rs 459 crore compared to previous quarter. Provision coverage ratio slipped to 70.39 percent in the quarter gone by compared to 83.01 percent in same quarter last year but sequentially the bank saw marginal dip compared to 70.58 percent. Other income (noninterest income) increased to Rs 292.34 crore during December quarter from Rs 269.3 crore in same quarter last year.

on-year) during December quarter as

same quarter last year. Motherson Sumi Systems Posts Good Growth, against Standalone operating profit jumped to Rs 227 crore from Rs 192.9 crore and Helped by Overseas Subsidiaries Auto component maker Motherson Sumi Systems, the flagship company of the Samvardhana Motherson Group, recorded best ever performance on every parameter in the third quarter of FY14. “The company has delivered its best ever results in revenues as well as operating margins for a quarter. This is exceptional performance both in domestic and overseas businesses in current market conditions,” said VC Sehgal, Chairman. Consolidated net profit jumped 2.4 times to Rs 249.6 crore, aided by forex gain and strong operational performance. Total income from operations grew 20 percent to Rs 7,988.7 crore compared to a year ago period. Earnings before interest, tax, depreciation and amortisation or operating profit surged 78 percent yearon-year to Rs 793 crore and operating profit margin expanded 320 basis points to 9.9 percent in the quarter ended December 2013. It has foreign exchange gain of Rs 32.3 crore during December quarter as against loss of Rs 65.8 crore in same quarter last year.

Both subsidiaries Samvardhana Motherson Reflectec (SMR) and German-based Peguform delivered operational improvement in the quarter gone by. Former reported record operating performance while latter turned into the black at the profit before tax level. SMR (erstwhile Visiocorp), which is in the rear view mirror business, reported 83 percent growth year-on-year in profit before tax at Rs 243.5 crore and 30 percent jump in revenues at Rs 2,398 crore during October-December quarter. Peguform, the plastic processor acquired in 2011, grew its revenues by 23 percent to Rs 4,091.4 crore compared to a year ago period. Profit before tax of this German subsidiary stood at Rs 119 crore as against loss of Rs 38.2 crore year-onyear and loss of Rs 11.3 crore quarteron-quarter. Motherson Sumi Systems showed margin improvement despite slowdown in its standalone business (domestic). Profit after tax increased 6 percent to Rs 123 crore on revenues of Rs 1,106 crore (4 percent growth year-

margin expanded 240 basis points to 20.5 percent during the same period.

MOTHERSON SUMI EPS Q3(Dec13) 2.83 Q2(Sept-13) 2.38 Q1(June-13) 1.24 Q4 (FY13) 3.33 TTM EPS 9.78 Price 229.00

TTM P/E 23.42

VC Sehgal, Motherson Sumi Systems

SBT’s NII Expands, But Profits Fall Sharply

Can Fin Homes Records Healthy Growth

State Bank of Travancore, an associate bank of SBI, has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 2,436.49 crore and net profit was Rs 14.76 crore. Other income for the quarter was Rs 165.50 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 2139.75 crore and net profit was Rs 131.99 crore, and other income Rs 157.41 crore.

Small-sized housing loan NBFC Can Fin Homes has reported a standalone sales turnover of Rs 151.80 crore and a net profit of Rs 20.35 crore for the quarter ended Dec ’13. For the quarter ended Dec 2012 the standalone sales turnover was Rs 102.90 crore and net profit was Rs 12.64 crore. Can Fin Homes, which has been on an expansion spree, is promoted by PSU lender Canara Bank.

SBT Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 2.95 11.07 37.13 33.20 84.35 376.55

Can Fin Homes EPS Q3(Dec13) 9.90 Q2(Sept-13) 9.10 Q1(June-13) 8.10 Q4 (FY13) 7.60 TTM EPS 34.70 Price 175.20

TTM P/E 5.05

TTM P/E 4.46 Seasonal Magazine

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Results

UCO Bank Puts Up a Good Show,

NII Growth and MAT Credit Helps

UCO Bank ‘s third quarter net profit trebled to Rs 315 crore from Rs 102 crore in a year ago period, supported by higher net interest income despite higher provisions. Net interest income grew 33 percent year-on-year to Rs 1,565.7 crore in the quarter gone by. Asset quality of the state-run lender also improved as gross non-performing assets declined 33 basis points (down 12 bps on sequential basis) to 5.2 percent compared to a year ago period. Net NPAs EPS slipped 26 bps year-on-year (7 bps Q-o- Uco Bank Q) to 3.06 percent. In absolute term, gross Q3(Dec13) 4.18 NPAs jumped 9.6 percent (down 0.3 Q2(Sept-13) 5.32 percent sequentially) to Rs 7,353.3 crore

Q1(June-13) Q4 (FY13) TTM EPS Price

6.79 0.02 16.31 65.05

TTM P/E 3.99

Arun Kaul, UCO Bank and net NPAs rose 7.4 percent (down 0.3 percent Qo-Q) to Rs 4,216.55 crore in the quarter gone by. Year-on-year provisions and contingencies increased 11.5 percent to Rs 811.7 crore and on sequential basis that rose 7 percent. Capital adequacy ratio (as per Basel III norms) stood at 11.16 percent as against 12.31 percent quarter-on-quarter. The bank has recognised minimum alternate tax (MAT) credit to the extent of Rs 363.89 crore for the nine months ended December 2013 and Rs 126.38 crore in the quarter gone by.

Fortis Malar Hospitals

Maintains Profit Run Rate

Fortis Malar Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.08 1.10 0.91 0.81 3.9 22.50

Fortis Malar Hospitals has reported a standalone sales turnover of Rs 26.80 crore and a net profit of Rs 2.02 crore for the quarter ended Dec ’13. This Fortis Group firm runs Chennai’s mid-sized corporate super-speciality hospital, Fortis Malar Hospital. Other income for the quarter was Rs 1.68 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 26.05 crore and net profit was Rs 36.02 crore, and other income Rs 1.29 crore. But the December 2012 quarter enjoyed an Extra Ordinary Item of Rs. 33.38 crore.

TTM P/E 5.77 Aditya Vij, Fortis Malar Seasonal Magazine

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Mahindra Lifespace Developers’

Sales Down, Profit and Other Income Up Mahindra Lifespace Developers has reported a standalone sales turnover of Rs 57.53 crore and a net profit of Rs 16.66 crore for the quarter ended Dec ’13. This Mahindra Group company is the real estate division of the Group and responsible for ‘Mahindra World City’ developments in Chennai and Jaipur. These developments cover 4,600 acres and house over 100 reputed global companies, providing an integrated environment. The company’s residential footprint spans across Mumbai, Pune, Delhi NCR, Nagpur, Hyderabad, Chennai and is poised to venture into Bengaluru. Other income for the quarter was Rs 23.97 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 61.41 crore and net profit was Rs 13.56 crore, and other income Rs 13.28 crore.

MLDS Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

TTM P/E 16.02

Arun Nanda, Mahindra Lifespace Developers

Edelweiss Financial Services Posts All-round Growth Edelweiss Financial Services has reported a consolidated sales turnover of Rs 641.38 crore and a net profit of Rs 57.80 crore for the quarter ended Dec ’13. Edelweiss Financial Services Ltd. provides investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients. Other income for the quarter was Rs 3.63 crore. For the quarter ended Dec 2012 the consolidated sales turnover was Rs 536.68 crore and net profit was Rs 46.04 crore, and other income Rs 2.54 crore.

Essar Ports’ Headline Numbers Up Slightly, Finance Cost Zooms Essar Ports reported a modest set of numbers for Q3 FY14 with PAT moving up marginally by 4 percent on year on year basis to Rs 94 crore and revenues rising 8.6 percent to Rs 399 crore. However, the interest and finance cost at Rs 144.6 crore zoomed 14 percent and the company says it is mainly because of fresh investments and an expensive debt that enabled it. The company is now looking for other refinancing options after its plans to raise ECBs failed. With an eye to complete existing developmental work, the company expects to double its volumes in the next 2-3 years and increase third-party cargo.

Edelweiss Fin Services EPS Q3(Dec13) 0.75 Q2(Sept-13) 0.60 Q1(June-13) 0.73 Q4 (FY13) 0.67 TTM EPS 2.75 Price 27.25

TTM P/E Rashesh Shah, Edelweiss Financial Services

EPS 7.15 4.74 5.33 5.68 22.90 366.90

Essar Ports Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

9.91

EPS 2.20 2.28 2.37 2.15 9.00 54.60

TTM P/E 6.06 Rajiv Agarwal, Essar Ports

Seasonal Magazine

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Results

Kolte-Patil Developers’ Sales and Profit Down

Karnataka Bank EPS Q3(Dec13) 5.66 Q2(Sept-13) 1.54 Q1(June-13) 5.00 Q4 (FY13) 3.58 TTM EPS 15.78 Price 95.10

TTM P/E 6.03 P. Jayarama Bhat, Karnataka Bank

Rajesh Patil, Kolte-Patil Developers

Karnataka Bank’s Profit Grows, Asset Quality Challenges Remain Private sector lender Karnataka Bank’s third quarter net profit jumped 33.4 percent year-on-year to Rs 106.7 crore, but net depreciation on investments limited the profitability. Out of net depreciation on investments of Rs 36.4 crore as on December 31, 2013, the bank amortised a net depreciation of Rs 24.26 crore in the third quarter. Net interest income grew 19.2 percent to Rs 271.5 crore in the quarter ended December 2013 from Rs 227.8 crore in a year ago period. Gross non-performing assets (NPA) climbed 35 basis points year-on-year (6 bps sequentially) to 3.65 percent and net NPAs rose 4 bps Y-o-Y (down 2 bps Q-o-Q) to 2.23 percent in the quarter gone by. In absolute term, gross NPAs jumped 27.6 percent on yearly basis (3.6 percent quarter-on-quarter) to Rs 996.81 crore and net NPAs rose 17 percent (up 1 on sequential basis) to Rs 599.44 crore compared to a year ago period. Provisions and contingencies increased to Rs 40.4 crore during December quarter as against Rs 126.7 crore in previous quarter and Rs 37 crore in corresponding quarter of last fiscal.

CARE Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 9.66 12.27 8.51 12.47 42.91 757.15

TTM P/E 17.65 D. R. Dogra, CARE Seasonal Magazine

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Pune-based realty company Kolte-Patil Developers disappointed street with the third quarter consolidated net profit falling 33 percent year-on-year to Rs 20.4 crore on lower revenues. Consolidated net sales dropped 16.5 percent to Rs 186 crore in the quarter ended December 2013 from Rs 222.8 crore in a year ago period. Total expenses of the real estate developer declined 19.5 percent to Rs 132 crore compared to a year ago period, driven by fall in cost of construction (cost of land and materials consumed). Finance cost increased 11 percent to Rs 12 crore while tax expenses plunged 24 percent to Rs 15.8 crore during December quarter year-on-year. Meanwhile, other income slipped significantly to Rs 1.9 crore from Rs 9.2 crore during the same period.

Kolte-Patil Developers EPS Q3(Dec13) 2.69 Q2(Sept-13) 4.25 Q1(June-13) 3.48 Q4 (FY13) 5.95 TTM EPS 16.37 Price 76.95

TTM P/E

4.70

CARE Ratings Performs Reasonably Credit Analysis and Research has reported a standalone sales turnover of Rs 53.84 crore and a net profit of Rs 28.02 crore for the quarter ended Dec ’13. CARE Ratings is the secondlargest credit rating agency in India. Majority shareholding of CARE is by leading domestic banks and financial institutions in India. Other income for the quarter was Rs 6.71 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 45.57 crore and net profit was Rs 27.82 crore, and other income Rs 7.89 crore.

Glenmark Pharma Posts Good Performance, Operating Profit Margin Slightly Down Mumbai-based Glenmark Pharma reported 1.5 percent growth year-on-year in profits and 16 percent in revenues for the quarter ended December 2013. The net profit for the quarter is not comparable due to out-licensing income of Rs 49.3 crore reported in the previous corresponding quarter. Year-on-year consolidated net profit increased to Rs 216.2 crore from Rs 213 crore and revenue rose to Rs 1,601.2 crore from Rs 1,382 crore. Consolidated earnings before interest, tax, depreciation and amortisation or operating profit grew 14 percent on yearly basis to Rs 365 crore while operating profit excluding out-licencing income jumped 34.75 percent in the quarter gone by. Operating profit margin fell 40 basis points year-on-year to 22.8 percent. “Despite challenges in the operating environment, we have registered good growth in both speciality and generics businesses across the globe,” Glenn Saldanha, chairman and MD said. He is reasonably confident of maintaining growth trajectory with emerging markets businesses being a key growth driver going ahead.

Glenmark Pharma EPS Q3(Dec13) 7.98 Q2(Sept-13) 5.69 Q1(June-13) 4.75 Q4 (FY13) 6.16 TTM EPS 24.58 Price 552.25

TTM P/E 22.47

Glen Saldanha, Glenmark Pharma

Blue Star’s Performance Down Sharply, Only Other Income Up Blue Star has reported a standalone sales turnover of Rs 545.90 crore and a net profit of Rs 2.81 crore for the quarter ended Dec ’13. Blue Star is India’s largest central airconditioning company with an annual turnover of Rs 2800 crores. Other income for the quarter was Rs 9.05 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 598.80 crore and net profit was Rs 5.37 crore, and other income Rs 2.06 crore.

Blue Star Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.31 0.84 2.53 2.06 5.74 137.55

TTM P/E 23.96

L&T Finance’s Revenue Up, Profits Down, Attributes it to Acquisition of Subsidiaries Earlier

Dinanath Dubashi, L&T Finance L&T Finance Holdings’ consolidated net profit for the third quarter ended December 2013 fell by 62.8% to Rs. 109.69 crore. The group has posted a net profit of Rs. 109.69 crore for the quarter ended 31 December 2013 where as the same was at Rs.294.63 crore for the quarter ended 31 December 2012. Total income of the company stood at Rs. 1,315.24 crore versus Rs. 993.05 crore a year earlier. The company claimed that figures for the quarter ended 31 December 2012 are not comparable with other periods on account of acquisitions of subsidiaries during the third quarter of the previous financial year.

L&T Finance Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.51 0.81 0.75 1.00 3.07 71.70

TTM P/E 23.35

Ashok M Advani, Blue Star Seasonal Magazine

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Results

Indian Bank’s Profit and NII Fall, But Asset Quality Improves

T. M. Bhasin, Indian Bank

Indian Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 5.92 6.87 7.14 6.53 26.46 95.95

TTM P/E 3.62

State-run Indian Bank’s third quarter year-on-year net profit dropped 20 percent on account of depreciation on its AFS portfolio, and lower net interest income, but the asset quality improved sequentially. Net profit declined to Rs 264.5 crore in the quarter ended December 2013 from Rs 330.58 crore in a year ago period while net interest income slipped 4.75 percent yearon-year to Rs 1,090.6 crore during the same period. Asset quality Gross non-performing assets (NPAs) fell 34 basis points quarteron-quarter (up 24 bps year-on-year) to 3.42 percent and net NPAs slipped 31 bps sequentially (up 8 bps Y-o-Y) to 2.25 percent in the quarter gone by. In absolute term, gross NPAs dipped 8 percent Q-o-Q (up 20.6 percent Y-o-Y) to Rs 3,834.78 crore and net NPAs stood at Rs 2,483.6 crore, down 11.4 percent Q-o-Q and up 16 percent compared to a year ago period. During the quarter, the bank assigned non-performing financial assets aggregating to Rs 389.97 crore to asset reconstruction companies for a consideration of Rs 675.71 crore. But the surplus of Rs 285.74 crore from this sale is not accounted in profit and loss account by the bank. Provisions and contingencies dropped 42 percent (up 5.7 percent quarter-on-quarter) to Rs 237.9 crore during October-December quarter as against Rs 411.6 crore in corresponding quarter of last fiscal. Provision coverage ratio stood at 57.99 percent as on December 31, 2013. Capital adequacy ratio (as per Basel III norms) stood at 12.49 percent in the quarter gone by versus 12.82 percent in previous quarter. During the quarter, other income increased to Rs 242.6 crore from Rs 238.8 crore while tax expenses jumped to Rs 129.8 crore from Rs 58.9 crore year-on-year.

Cairn India’s Profit Falls, Share Buyback to Support Prices for Now Cairn India, the subsidiary of London-listed Vedanta Resources, reported 14.8 percent sequential de-growth in third quarter net profit, impacted by forex loss and higher expenses (employee cost and exploration cost written off). Profit after tax declined, to Rs 2,884.04 crore in the quarter ended December 2013 from Rs 3,385 crore in previous quarter. Revenues climbed 7.5 percent (in-line) quarter-on-quarter to a record level of Rs 5,000 crore in the quarter gone by, driven by increased volumes. Average gross operated production for the quarter was at higest level at 2,24,493 barrels of oil equivalent per day (boepd), up 5 percent compared to previous quarter. “Cairn remains committed to discover new resources and deliver accelerated value from its assets. We remain on track to meet the full year (FY14) exit guidance of over 225,000 boepd,” Elango P, whole time director said. The company said cash equivalents as at December 31, 2013 were Rs 13,000 crore or USD 1.45 billion. The part of which is expected to be used for the buyback programme, it added. Shareholders of the oil & gas company had approved a proposal for buyback of equity shares at a price not exceeding Rs 335 per share. The company is going to spend upto Rs 5,725 crore for this buyback that commenced recently. Seasonal Magazine

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Cairn India Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 15.09 17.72 16.37 13.42 62.60 334.65

TTM P/E 5.34 Rahul Dhir, Cairn India

Kiran Mazumdar Shaw, Biocon

Biocon Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 5.35 5.21 4.77 12.70 28.03 434.40

Biocon’s Topline and Bottomline Grows Pharma player Biocon’s Q3FY14 net profit stood at Rs 105 crore, against Rs. 92 crore in the corresponding year-ago period. Biocon is India’s largest biotech company, focusing on developing affordable therapies for chronic diseases like diabetes, cancer and autoimmune diseases. Its research subsidiary is Syngene, while its clinical development subsidiary is Clinigene. Its net sales stood at Rs 700 crore versus Rs 635 crore (Y-oY). The company said that its Malaysian facility is on track for commissioning in FY15.

TTM P/E 15.50

Raymond’s Bottomline Soars, Credit Goes to Margin Expansion in Core Business Diversified group Raymond registered an over four-fold jump in consolidated net profit at Rs 56.89 crore for the third quarter ended December 31 on account of margin expansion in key business segment. The company had posted a consolidated net profit of Rs 12.84 crore during the same period of previous financial year. Total consolidated income from operations rose to Rs 1208.15 crore for the OctoberDecember period as against Rs 1053.03 crore during the same period of last financial year. “We have ended the third quarter on a positive note, despite subdued discretionary spend witnessed in the month of December 2013. Our focus on profitability through margin expansion across key business segment has led to a strong bottom line growth in the current quarter as well as for the period till date,” Raymond Chairman and Managing Director Gautam Hari Singhania said. On outlook, he said that Raymond’s long term sustainable initiative in brands, retail, supply chain management and operational efficiency will able to surge ahead. Raymond Group offers end-to-end solutions for fabrics and garmenting. It has several brands, including Raymond, Park Avenue, Parx, ColorPlus, among others. Also, the company manufactures men’s accessories, personal grooming products and toiletries, energy drinks, files and tools and auto components.

Raymond Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price Gautam Singhania, Raymond

EPS 9.27 15.03 -8.10 0.10 16.30 292.80

TTM P/E 18.0

Dr. Ramachandra N. Galla, Amara Raja Batteries

Amara Raja Batteries Survives Higher Expenses, Posts Decent Overall Growth Amara Raja Batteries reported a 17.4 percent year-on-year growth in its bottomline on account of strong operational performance, but higher raw material cost and tax expenses limited the growth. Net profit increased to Rs 95 crore in the quarter ended December 2013 from Rs 80.9 crore in a year ago period while total income from operations grew 13.44 percent to Rs 863 crore in the quarter gone by. On the operational front, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23 percent to Rs 150 crore and operating profit margin expanded 140 basis points to 17.4 percent compared to a year ago period. Total expenses of the AMARON EPS battery manufacturer Q3(Dec13) 5.56 soared 11.7 percent to Q2(Sept-13) 5.54 Rs 728.29 crore and Q1(June-13) 5.73 raw material cost 3.49 climbed 20.8 percent Q4 (FY13) TTM EPS 20.32 on yearly basis to Rs 534.76 crore during Price 365.50 the same period. TTM P/E 17.99 Seasonal Magazine

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Results

Ramesh Iyer, Mahindra & Mahindra Financial Services

Mahindra Finance’s Profit Falls, But NII Holds Up Mahindra and Mahindra Financial Services reported poor set of earnings in the quarter ended December 2013. Standalone profit after tax of the non-banking finance company fell 18 percent year-on-year to Rs 164 crore dented by higher provisions indicating stress on asset quality. However, net interest income grew 21 percent. Loan provisions and write-offs increased 121 percent on yearly basis (43 percent sequentially) to Rs 180 crore during October-December quarter. Consolidated profit after tax declined 16 percent to Rs 182.4 crore while net interest income jumped 22 percent to Rs 745 crore in the quarter gone by.

Dabur Grows its Topline and Bottomline, Boosted by Overseas Growth Personal care products manufacturer Dabur India’s third quarter consolidated revenues grew 16.7 percent to Rs 1,909 crore compared to a year ago period, supported by strong growth in international business. “Net sales growth was driven by strong volume growth across key categories of health supplements, air care, hair care, oral care, skin care and foods,” the company said. Net profit rose 15 percent year-on-year to Rs 243 crore, but that was squeezed due to weak operational performance. Higher employee cost and advertising expenses also affected the profitability. Volume growth of the FMCG company stood at 9 percent. Dabur’s international business grew 26 percent in the quarter ended December 2013, led by strong performance in GCC, Egypt and Nigeria. “The GCC business reported a 21 percent growth, while sales in Egypt and Nigeria both grew by 16 percent. Going forward, we will continue to pursue an aggressive growth strategy,” PD Narang, Group Director said. Operational performance missed expectations. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8.4 percent year-on-year to Rs 298 crore and operating profit margin declined 120 basis points to 15.6 percent Advertising-spends climbed 23.2 percent on yearly basis to Rs 290 crore and that as a percentage of sales rose 80 basis points to 15.2 percent compared to a year ago period. Employee cost jumped 29 percent to Rs 158 crore in the quarter ended December 2013 from Rs 123 crore in corresponding quarter of last fiscal. Sunil Duggal, Chief Executive Officer said, “Focus on brand building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, the focus will be on pursuing an aggressive and profitable growth strategy.” Sunil Duggal, Dabur

Dabur Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.40 1.43 1.07 1.15 5.05 176.30

TTM P/E 34.91 Seasonal Magazine

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M&M Fin Services EPS Q3(Dec13) 3.24 Q2(Sept-13) 4.13 Q1(June-13) 3.61 Q4 (FY13) 6.30 TTM EPS 17.28 Price 261.25

TTM P/E 15.12

ITDC / Ashok Group

Performance Sharply Down

India Tourism Development Corporation has reported a standalone sales turnover of Rs 110.12 crore and a net profit of Rs 5.80 crore for the quarter ended Dec ’13. India Tourism Development Corporation Limited (ITDC) is a hospitality company promoted by Government of India, under Ministry of Tourism. Established in 1966, it owns over 17 properties under the Ashok Group of Hotels brand and other brands, across India. Other income for the quarter was Rs 20.28 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 112.39 crore and net profit was Rs 8.91 crore, and other income Rs 19.93 crore.

ITDC Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.67 3.00 0.14 0.54 1.80 67.80

TTM P/E 37.67

Indiabulls Housing Finance Grows Reasonably, Asset Quality Concerns Emerge Mumbai-based Indiabulls Housing Finance reported 7 percent growth in third quarter consolidated profit after tax of Rs 395 crore compared to previous quarter. Total income from operations grew 7.6 percent sequentially to Rs 1,565.8 crore in the quarter ended December 2013 while total expenses declined 17 percent quarter-on-quarter to Rs 131.6 crore. Quarter-on-quarter, asset quality weakened. Gross nonperforming assets (NPAs) expanded to 0.88 percent from 0.85 percent while net NPAs rose to 0.48 percent from 0.44 percent. Bad debts during the quarter jumped to Rs 23.5 crore from Rs 5.13 crore while the housing finance company made provision for bad debts at Rs 7.9 crore in the quarter gone by as against Rs 47 crore in previous quarter. Indiabulls Housing Finance declared a third interim dividend of Rs 7 per share for the financial year 2013-2014.

Gagan Banga, Indiabulls Housing Finance

India Bulls HF EPS Q3(Dec13) 11.89 Q2(Sept-13) 11.33 Q1(June-13) 11.15 Q4 (FY13) 11.73 TTM EPS 46.10 Price 192.20

TTM P/E 4.17

HDFC Continues Reasonable Performance, But Banks Crowding Into Housing Finance

HDFC Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price Keki Mistry, HDFC

EPS 12.41 12.14 11.02 13.52 49.09 774.80

TTM P/E 15.78

Housing Development Finance Corporation (HDFC) matched street expectations with the third quarter net profit rising 12 percent year-on-year to Rs 1,278 crore. Net interest income came in at Rs 1,678 crore, growth of 13.7 percent compared to corresponding quarter of last fiscal. In the quarter gone by, total income from operations grew nearly 15 percent to Rs 6,020 crore while total expenses rose 15 percent to Rs 4,273.2 crore compared to a year ago period. Tax expenses climbed 18.5 percent to Rs 480 crore during October-December quarter. Loan book of the housing finance company jumped 19.5 percent on yearly basis to Rs 1,92,266 crore as of December 2013. Net interest margin for the December quarter stood at 4 percent and spreads at 2.25 percent. On consolidated basis (loans, insurance and asset management businesses), net profit of the company grew 13.4 percent year-onyear to Rs 1,934.85 crore and total income climbed 13.3 percent to Rs 10,040.86 crore in the quarter gone by. Seasonal Magazine

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Q 3Results

Prabha Parameswaran, Colgate Palmolive

Colgate Palmoliveâ&#x20AC;&#x2122;s Volumes, Market Share, & Sales Up, Profit Growth Sluggish Colgate Palmoliveâ&#x20AC;&#x2122;s third quarter net profit increased marginally to Rs 113 crore as against Rs 111 crore in a year ago period, impacted by higher expenses and tax cost. Year-on-year net sales grew at 16 percent to Rs 884 crore in the quarter ended December 2013. The company, which sells toothpaste under brands like Colgate Dental Cream, Active Salt, Max Fresh and Colgate Total, reported a volume growth of 10 percent over a year ago period, driven by strong growth of 11 percent in toothpaste category. Colgate enhanced its leadership position in toothpaste category by registering a 56 percent volume market share for 2013 compared to 54.5 percent in 2012. It also strengthened its leadership position in the toothbrush category by reporting a volume market share of 41.5 percent for 2013 as against 39.8 percent in 2012. On the operational front, earnings before interest, tax, depreciation and amortisation (EBITDA) grew 11 percent yearon-year to Rs 143 crore while operating profit margin dipped 70 basis points to 16.2 percent. Total expenses climbed 16.7 percent to Rs 752.63 crore on account of sharp jump in advertising (22 percent rise) and other expenses (32.4 percent jump).

Colgate Palmolive EPS Q3(Dec13) 8.30 Q2(Sept-13) 8.05 Q1(June-13) 13.62 Q4 (FY13) 9.06 TTM EPS 39.03 Price 1318.15

TTM P/E 33.77

Kotak Mahindra Bank Posts One of its Poorest Shows Private sector lender Kotak Mahindra Bank disappointed street with its third quarter earnings on every parameter with the asset quality weakening. Standalone (banking operations only) net profit fell 6 percent year-on-year to Rs 340 crore and net interest income grew nearly 11 percent to Rs 912.7 crore. Profitability was also impacted due to amortisation of Rs 43.43 crore in the quarter gone by. Gross non-performing assets (NPAs) expanded 4 basis points sequentially (55 basis points year-on-year) to 2.01 percent while net NPAs jumped 14 bps quarter-on-quarter (46 bps Y-o-Y) to 1.1 percent in the quarter gone by. In absolute term, gross NPAs surged 7 percent quarter-on-quarter (45.4 percent year-on-year) to Rs 1,076.18 crore while net NPAs climbed 20 percent Q-o-Q (81 percent Y-o-Y) to Rs 584.52 crore during October-December quarter. Provisions and contingencies increased 64.6 percent to Rs 69.74 crore in Q3 compared to a year ago period but that sequentially declined from Rs 72.29 crore. The bank restructured loans worth Rs 42 crore in the quarter ended December 2013, which was 0.08 percent of net advances. Net interest margin slipped to 4.8 percent in December quarter as against 4.9 percent in previous quarter while that was maintained compared to a year ago period. Savings deposits grew 38 percent year-on-year to Rs 9,106 crore while CASA ratio stood at 30 percent during October-December period. Return on assets dropped to 1.6 percent in the quarter gone by compared to 1.8 percent in corresponding quarter of last fiscal. Seasonal Magazine

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Uday Kotak, Kotak Mahindra Bank

Kotak Mahindra EPS Q3(Dec13) 7.69 Q2(Sept-13) 7.59 Q1(June-13) 8.29 Q4 (FY13) 8.93 TTM EPS 32.05 Price 650.75

TTM P/E 20.02

Dewan Housing Finance Surges Ahead in its Niche Sector Dewan Housing Finance Corporation has reported a standalone sales turnover of Rs 1,301.01 crore and a net profit of Rs 138.39 crore for the quarter ended Dec ’13. Mumbai headquartered DHFL is the second largest private housing finance company in India. Dewan Housing enables home ownership in the low-to-moderate income segment in semi-urban and rural areas of India. Other income for the quarter was Rs 0.36 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 840.18 crore and net profit was Rs 91.24 crore, and other income Rs 0.47 crore.

Kapil Wadhawan, Dewan Housing

DHFL Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 10.79 10.07 9.38 16.77 47.01 209.25

TTM P/E 4.45

Lakshmi Machine Works Records Strong Performance

Sanjay Jayavarthanavelu, Lakshmi Machine Works

LMWs Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

TTM P/E

EPS 46.51 46.34 22.52 25.30 140.67 2702.10

19.21

Lakshmi Machine Works has reported a standalone sales turnover of Rs 629.64 crore and a net profit of Rs 52.40 crore for the quarter ended Dec ’13. Lakshmi Machine Works Limited is a leading Textile Machinery Manufacturer in India and one among the three in the world to produce the entire range of Spinning Machinery. Other income for the quarter was Rs 20.56 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 393.30 crore and net profit was Rs 20.36 crore, and other income Rs 14.96 crore.

Asian Paints Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

Asian Paints’ Momentum Facing Headwinds Asian Paints, the country’s largest paint company disappointed street on every parameter. Its third quarter consolidated net profit fell 1.76 percent year-on-year to Rs 329.3 crore, dented by weak demand for industrial paint and high raw material cost. “Industrial paints segment continued to be impacted by sluggish manufacturing environment in the economy, with no major capex activity. Automotive coatings growth was affected due to the subdued demand in the automotive sector,” KBS Anand, MD and CEO elaborated reason for weak bottomline numbers. However, Anand said international business registered good growth. Consolidated total income grew 13.2 percent to Rs 3,452 crore in the quarter ended December 2013 from Rs 3,049.6 crore in a year ago period. On the operational front, consolidated earnings before interest, tax, depreciation and amortisation climbed 5 percent to Rs 537 crore and operating profit margin declined 110 basis points Y-o-Y to Rs 15.6 percent in the quarter gone by. Raw material cost jumped 17.35 percent to Rs 1,845.21 crore while depreciation cost surged 73 percent to Rs 63.34 crore and employee benefit expenses rose 29 percent to Rs 197 crore during OctoberDecember quarter, year-on-year.

KBS Anand, Asian Paints

EPS 3.43 3.41 2.87 2.62 12.33 484.35

TTM P/E 39.28

Seasonal Magazine

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Q 3Results

Tata Coffee’s Sales Down Marginally, US Based EOC Brand Shores Up Profit Tata Coffee today posted 40 percent jump in consolidated net profit at Rs 37.66 crore for the third quarter ended December 31, buoyed by increased sales and royalties from its ‘Eight O’ Clock’ coffee brand in the US. The company had clocked a net profit of Rs 26.90 crore in the same quarter last year. However, net income fell marginally by 6 per cent to Rs 391.93 crore in the October-December period of 2013-14 fiscal, as compared with Rs 418 crore in the year-ago period. Commenting on its Q3 performance, Tata Coffee Executive Director (Finance) M Deepak Kumar said: “The quarterly profits have risen as sales and royalties from our ‘Eight O’ Clock’ (EOC) brand increased substantially beyond our expectation.” Sales have increased after the re-launch of the EOC brand in the US as also revenue from royalties grew by licensing the brand to the Green Mountain Coffee Roasters (GMCR), a speciality coffee roaster, he told.. Kumar said that the tie-up with the US-based GMCR has led to substantial growth and sizeable presence in the fast growing ‘singleserve’ coffee market in the US. Tata Coffee, a subsidiary of Tata Global Beverages Ltd (TGBL) and India’s third largest exporter of instant coffee, had acquired the Eight O’ Clock (EOC)

Harish Bhat, Tata Coffee

Tata Coffee Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 20.17 -6.90 21.62 13.50 48.39 907.70

TTM P/E 18.76 Coffee Company in 2006 for USD 220 million by borrowing funds. Today, it is part of the TGBL family of brands like Tata Tea and Tetley. On status of debt, Kumar said: “We had borrowed USD 168 million for acquiring EOC. We have so far repaid USD 38 million, and also paid out USD 41 million in dividends.”

Thermax Disappoints on Most Fronts, Orderbook Growth Reasonable Engineering solutions provider Thermax ’s third-quarter numbers were below street‘s expectations. The company’s net declined 12.8 percent to Rs 66.6 crore as against Rs 76.4 crore and quarterly total income stood at Rs 1,014 crore against Rs 1,047 crore year-on-year. An India based global energy solutions company, Thermax produces Heating equipment, Absorption chillers, Power and captive cogeneration plants, Waste heat recovery units, Waste water management systems, Air pollution control systems, Performance improving chemicals, and Solar based heating, cooling and power. The operating margin declined to 9 percent from 10.7 percent and EBITDA slipped to Rs 91 crore against Rs 112 crore (Y-o-Y). Thermax’s Q3 order intake stood at Rs 1,365 crore as against Rs 1,284 crore and the orderbook increased to Rs 6,445 crore from Rs 5,191 crore (Y-o-Y), the company said in its filing. Seasonal Magazine

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Kajaria Ceramics’ Performance Healthy on Most Counts Kajaria Ceramics has reported a consolidated sales turnover of Rs 440.43 crore and a net profit of Rs 29.39 crore for the quarter ended Dec ’13. Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has an annual aggregate capacity of 45.20 mn. sq. meters, distributed across seven plants Sikandrabad in Uttar Pradesh, Gailpur in Rajasthan, four plants in Morbi in Gujarat and one at Vijayawada in Andhra Pradesh. Other income for the quarter was Rs 1.58 crore. For the quarter ended Dec 2012 the consolidated sales turnover was Rs 417.71 crore and net profit was Rs 24.95 crore, and other income Rs 0.30 crore.

Kajaria Ceramics EPS Q3(Dec13) 3.93 Q2(Sept-13) 3.66 Q1(June-13) 3.51 Q4 (FY13) 4.18 TTM EPS 15.28 Price 321.50

TTM P/E 21.04

MS Unnikrishnan Thermax

Thermax Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 5.59 2.53 4.22 9.68 22.02 625.00

TTM P/E 28.38

HDFC Bank Maintains Performance, Asset Quality Relatively Stable HDFC Bank, the second largest private sector lender in India, matched street expectations on December quarter net profit, supported by other income. Quarterly net profit grew 25 percent year-on-year to Rs 2,326 crore from Rs 1,859 crore while net interest income rose 22 percent to Rs 4,635 crore from Rs 3,799 crore during the same period. Other income (non-interest revenues) climbed 11.4 percent yearon-year to Rs 2,148.3 crore. Total expenses jumped 15 percent on yearly basis to Rs 8,850.1 crore due to higher other operating expenses in the quarter gone by. Net interest margin for the quarter declined further to 4.2 percent, down 10 basis points compared to a year ago period and previous quarter. In its earlier quarter (September 2013), the margin was down 30 basis points sequentially. The bank’s asset quality was stable during December quarter as gross nonperforming assets (NPA) fell 10 basis points sequentially to 1 percent and it was unchanged compared to a year ago period. Net NPAs as a percentage of net advances remained unchanged on sequential basis at 0.3 percent but that increased 10 basis points compared to a year ago period. In absolute terms, gross NPAs increased 24 percent year-onyear (2.6 percent quarter-on-quarter) to Rs 3,017.84 crore while net NPAs surged 60.8 percent Y-o-Y (4 percent Q-oQ) to Rs 797.34 crore during December quarter. “Total restructured loans (including applications under process for restructuring) were at 0.2 percent of gross advances as of December 31, 2013 as against 0.3 percent as of December

Emami’s Topline Sluggish, Profit Growth Better FMCG firm Emami Ltd reported a 31 percent increase in consolidated net profit at Rs 150.68 crore for the third quarter ended December 31. The company had posted a profit of Rs 114.95 crore in the same period last fiscal. Net sales rose to Rs 584.67 crore from Rs 548.44 crore. During the quarter, Emami said its cost of material consumed increased to Rs 164.39 crore from Rs 157.28 crore a year earlier. The company’s board of directors recommended an interim dividend of Rs 3 per equity share. Commenting on the performance, Emami Director Mohan Goenka said: “Despite depressed market conditions due to sluggish economy, high inflation and erratic weather, Emami has been able to

HDFC Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price Aditya Puri, HDFC Bank

EPS 9.80 8.30 7.70 8.00 33.80 644.80

TTM P/E 19.08

31, 2012,” the bank said in its release. With asset quality remaining stable during the quarter, provisions and contingencies declined 4 percent (up 0.75 percent sequentially) to Rs 388.84 crore in Q3FY14 from Rs 405 crore in Q3FY13.

sustain modest growth.” While demand for the company’s products was good, leading to continuous increase in market share in key categories, a delayed and erratic winter affected offtake, he added. “International business has performed well, with aggressive growth in GCC (Gulf Cooperation Council) and SAARC countries. RS Agarwal, Emami

Emami Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 6.64 3.52 2.67 6.21 19.04 446.50

TTM P/E 23.45 Seasonal Magazine

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Q 3Results

RIL Struggling to Grow Profits

Mukesh Ambani, RIL

RIL Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 17.10 17.00 16.60 17.30 68.00 805.25

TTM P/E 11.84

Reliance Industries , India’s number one private sector company by sales, reported a net profit of Rs 5,511 crore for the December quarter, flat year-onyear as weak refining margins, low gas output and higher raw material, power and fuel costs squeezed profitability. Quarterly net revenues of the Mukesh Ambani flagship stood at Rs 1.03 lakh crore, up 10 percent year-on-year. Net profit was largely helped by a 32 percent year-on-year jump in other income to Rs 2,305 crore. The company said its earnings before depreciation, interest and taxes decreased 1.8 percent to Rs 9,927 crore, profit before tax rose 2.1 percent to Rs 6,992 crore, while cash profit fell 3.3 percent to Rs 7,676 crore. “Reliance’s robust refining configuration enabled it to deliver stable refining profits in 3Q FY14, against the backdrop of declining regional benchmark margins,” said Reliance Chairman and Managing Director Mukesh Ambani. “Even as we invest to further strengthen our energy businesses, this quarter demonstrates the outstanding quality of our refining and petrochemical business resources and their ability to deliver creditable performance in a period marked by cyclicality and uncertainties,” he said. The company said it had cash and cash equivalents of Rs 88,705 crore as at the end of the December quarter.

UltraTech Cement Stares at a Slowdown UltraTech Cement’s third quarter net profit fell 38.4 percent yearon-year to Rs 370 crore dented by lower selling prices due to the subdued demand. Net sales declined 1.5 percent to Rs 4,786 crore in the quarter ended December 2013 from Rs 4,857.4 crore in a year ago period. UltraTech believes the outlook continues to remain challenging. “Demand growth in the long term is likely to be around 8 percent. The key demand drivers will continue to be housing and infrastructure spends,” the company said. Earnings before interest, tax, depreciation and amortisation dropped 25.4 percent to Rs 764 crore and margin slipped 509 basis points on yearly basis to 16 percent in the quarter gone by. The company said on-going cost optimisation measures helped in containing costs despite the continuing increase in input and logistics cost. Total expenses increased 4.5 percent yearon-year to Rs 4,256.70 crore during December quarter as raw material cost climbed 2.3 percent, depreciation rose 10.76 percent, freight and forwarding expenses 5.7 percent and other expenses surged 7 percent. Finance cost of the company jumped 73.6 percent on yearly basis to Rs 90.45 crore while tax expenses dropped 45 percent to Rs 139 crore compared to a year ago period. The combined domestic cement and clinker sales remained flat at 9.7 million tonne while the sales of white cement and wall care putty increased 10.3 percent year-on-year to 2.89 lakh metric tonne. Seasonal Magazine

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Ultra Tech Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 13.49 9.63 24.53 26.49 74.14 1699.35

TTM P/E 22.92

Kumar Mangalam Birla, UltraTech

Wipro Keeps Pace with IT Pack

Azim Premji, Wipro

Wipro, India’s third largest IT services exporter, met street expectations in third quarter (October-December) with the IT services revenues growing 2.6 percent sequentially to Rs 10,327 crore. Consolidated profit after tax of the company climbed 4.27 percent sequentially to Rs 2,014.7 crore and revenues grew 3 percent to Rs 11,327.4 crore for the quarter ended December 2013. “Focus on account management has yielded encouraging results. Global infrastructure services business grew strongly (5.6 percent Q-o-Q) on revenues,” TK Kurien, executive director and chief executive officer said. In dollar terms, IT services revenue rose 2.9 percent quarteron-quarter (6.4 percent on yearly basis) to USD 1,678.4 million that was in-line with company’s guidance (USD 16601690 million). For the quarter ended March 2014, Wipro expects revenues from IT services business to be in the range of USD 1,712 million to USD 1,745 million including the revenues from acquisitions. “As the global economy is progressing towards stability, we see optimism amongst clients, especially in the West,” Azim Premji, Chairman said. Wipro added 42 new customers in Q3. IT services earnings before interest and tax (EBIT) jumped 5 percent sequentially (33 percent Y-o-Y) to Rs 2,379 crore in the quarter gone by. EBIT margin expanded 54 basis points to 23 percent. “Investments in automations and productivity tools have driven efficiencies and helped the company expand margins of IT Services,” Suresh Senapaty, executive director & chief financial officer said.

Ashok Leyland Widnes Loss Commercial vehicle maker Ashok Leyland posted a net loss of Rs 167 crore against a profit of Rs 74.2 crore (Y-o-Y) in its third quarter due to very low volumes, high discounts, and high interest and depreciation cost. Ashok Leyland is one of the largest commercial vehicle manufacturers in India with a turnover of US $ 2.3 billion in 2012-13, and is also largest supplier of logistics vehicles to the Indian Army. The total income of the company stood at Rs 1,953.2 crore against Rs 2,380 crore on a year-on-year basis.

Wipro Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 8.20 7.87 6.61 6.42 29.10 563.15

TTM P/E 19.35

Bhartiya International’s Sales & Profits Up Bhartiya International has reported a standalone sales turnover of Rs 85.62 crore and a net profit of Rs 2.37 crore for the quarter ended Dec ’13. Other income for the quarter was Rs 0.57 crore. The leading leather goods exporter has been more in the limelight for being the co-promoter of Bhartiya City, a large-scale integrated township in Bangalore, that has witnessed brisk sales in the first two rounds of residential apartments. For the quarter ended Dec 2012 the standalone sales turnover was Rs 73.28 crore and net profit was Rs 2.12 crore, and other income Rs 0.38 crore.

Deeraj Hinduja, Ashok Leyland

Bhartiya International EPS Q3(Dec13) 2.15 Q2(Sept-13) 4.19 Q1(June-13) 1.92 Q4 (FY13) 0.56 TTM EPS 8.82 Price 160.00

TTM P/E

18.14

Snehdeep Aggarwal, Bhartiya International Seasonal Magazine

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Q 3Results

GRUH Finance Shows Topline and Bottomline Expansion

Shyam Srinivasan, Federal Bank

GRUH Finance has reported a standalone sales turnover of Rs 217.39 crore and a net profit of Rs 35.24 crore for the quarter ended Dec ’13. Gruh Finance is a group firm of housing finance major HDFC. Gruh specializes in home loans to the middle and low income group through a lucrative credit score model. For the quarter ended Dec 2012 the standalone sales turnover was Rs 166.41 crore and net profit was Rs 28.89 crore.

GRUH Finance EPS Q3(Dec13) 1.96 Q2(Sept-13) 1.91 Q1(June-13) 1.89 Q4 (FY13) 3.54 TTM EPS 9.30 Price 262.50

TTM P/E 28.23

Federal Bank Back to Health Private sector lender Federal Bank reported 9 percent growth in profit after tax and 9.71 percent in net interest income for the quarter ended December 2013 compared to the year ago period. Net profit of the bank stood at Rs 230 crore as against Rs 211 crore while net interest income rose to Rs 545.6 crore from Rs 497.3 crore year-on-year. Total expenses jumped 15.6 percent on yearly basis to Rs 1,540 crore in the quarter gone by. The profitability was boosted by improvement in asset quality and fall in provisions. Gross non-performing assets (NPA) declined 56 basis points sequentially (102 bps Y-o-Y) to 2.83 percent while net NPA fell 12 bps quarter-on-quarter (6 bps Y-o-Y) to 0.86 percent during December quarter. Provisions and contingencies dropped to Rs 7.3 crore during October-December EPS quarter as against Federal Bank Rs 74.4 crore in a Q3(Dec13) 2.69 year ago period and Q2(Sept-13) 2.64 Rs 11 crore in Q1(June-13) 6.18 earlier quarter. Q4 (FY13) 12.97

TTM EPS Price

24.48 78.10

TTM P/E 3.19 Seasonal Magazine

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Bajaj Auto Troubled by Domestic Slowdown, Consoled by Export Growth India’s second-largest two-wheeler company Bajaj Auto’s third quarter results were slightly below expectations. The company’s net profit rose 10.4 percent to Rs 904.5 crore against Rs 818.7 crore (Y-o-Y). However, the revenues missed expectations due to a slump in domestic two-wheeler segment, which could not be offset by growth in exports. The Q3 revenues were down 5.2 percent to Rs 5,131 crore as against Rs 5,412.7 crore (Y-oY). Operational performance and profits have improved, but there is an MTM (mark to market) gain of Rs 95 crore included, which the company has clocked in the quarter. If that is excluded, adjusted PAT (at Rs 855 crore) is not very impressive. The company’s EBITDA stood at Rs 1,135 crore against Rs 1,011 crore (Y-o-Y). The operating margins were up 22.1 percent against 18.6 percent (Y-o-Y). The company’s exports were up 12.3 percent (Y-o-Y) at 4.22 lakhs as against 3.76 lakhs, which has been the only positive for the company this quarter. The exports revenues rose 23.5 percent to Rs 2,123 crore versus Rs 1,719 crore (Y-o-Y).

Bajaj Auto Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 31.30 28.90 25.50 26.50 112.20 1936.50

TTM P/E 17.26

Mindtree Hit by Forex Loss

Bangalore-based IT services exporter Mindtree missed street expectations on the profit front while the rest of earnings (revenues and operational performance) were in-line. Net profit fell 31 percent sequentially to Rs 88.5 crore in the quarter ended December 2013 as it reported forex loss of Rs 27.2 crore as against forex gain of Rs 20 crore in the year ago period. Revenues grew 2.7 percent quarter-onquarter to Rs 790.6 crore while dollar revenues increased 2.7 percent to USD 127.1 million in the quarter gone by, which was lower compared to peer HCL Technologies (4 percent) and higher compared to Infosys (1.6 percent). Net income in dollar terms declined 31.5 percent to USD 14.2 million on sequential basis. “We are seeing good business momentum and traction with clients. Strong deal pipeline, improved client metrics and ability to attract and retain talent demonstrate confidence for a promising future,” Krishnakumar Natarajan, CEO and MD said.

Mindtree Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 21.25 30.96 32.60 19.04 103.85 1630.30

TTM P/E 15.70

Mindtree, Krishnakumar Natarajan

N Chandrasekaran, TCS

TCS Maintains Profit Run, Revenue Run Showing Slowdown TCS, India’s number one software exporter, reported a net profit of Rs 5,314 crore for the quarter ended December, up 13 percent sequentially, as the company maintained its robust operating margins. Quarterly revenues at Rs 21,294 crore were up 1.5 percent sequentially and 32.5 percent yearon-year. The company’s dollar revenues of USD 3.438 billion, were up 3 percent sequentially, and overall international revenues were up up 2.9 percent in constant currency terms. TCS CEO Natarajan Chandrasekaran said that the coming fiscal was likely to be a much stronger one than the current one. The company attributed strengths in the manufacturing, telecom and life sciences verticals as the key drivers of earnings. Operating margins stood at 29.7 percent for the quarter, and the company said it would be able to maintain its margin in 27-29 percent range. The company said it invested 70 basis points of its operating margins during the quarter into

TCS Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 27.20 23.63 19.54 18.46 88.83 2101.70

TTM P/E 23.66 sales. The company added 5483 employees during the quarter, four USD 20 million clients and two USD 50 million clients. It signed 8 large deals during the quarter, logged a 1.8 percent growth in volumes, and a 74 basis pointimprovement in realization. Revenues from the domestic business declined, while international business showed good growth. Utilisation rate for the quarter, including training was 77.5 percent and excluding trainees was 84.3 percent. The attrition rate was 10.9 percent. The company said the domestic market was likely to remain uncertain till June or September. Seasonal Magazine

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Q 3Results

LIC Housing Finance Posts Robust Growth LIC Housing Finance’s third quarter profit after tax grew 38 percent yearon-year to Rs 326.6 crore. Net interest income climbed 24 percent to Rs 457.6 crore in the quarter ended December 2013 as against Rs 370 crore in a year ago period. Total income from operations rose 21 percent on yearly basis to Rs 2,343 crore while total expenses jumped 17.5 percent year-onyear to Rs 1,920.11 crore during third quarter. Non-interest income or other income jumped 66.6 percent to Rs 33.67 crore whereas tax expenses climbed to Rs 129.66 crore from Rs 84.25 crore year-on-year. There was a net writeback of Rs 7.5 crore during December quarter as against provisions of Rs 32 crore in a year ago period and Rs 34 crore in previous quarter.

HCL Tech Posts Strong Numbers HCL Technologies reported a net profit of Rs 1,496 crore (up 5.7 percent quarter-on-quarter) on revenues of Rs 8,184 crore (up 2.8 percent) for the second quarter. HCL delivered strong growth even in dollar revenue, which rose 4 percent sequentially to USD 1,321 million. This topped Infosys’ dollar revenue growth that came in last week at 1.6 percent for the quarter. “HCL continues its profitable growth trajectory with yet another stellar quarter of 4% quarter-on-quarter revenues growth and 39.1% year-onyear net income growth,” said President and CEO Anant Gupta. The company delivered strongly on the margin front as well, with net and operating margins coming in at 18.3 percent and 23.7 percent, respectively. For the September quarter, margins for the firm stood at 17.8 percent and 23.7 percent. Margins did not decline despite HCL’s customary wage hike that takes place in this quarter of the year. “This was due to operational efficiencies that came in.” CFO Anil Chanana said the operating efficiencies, the scale of business in the Seasonal Magazine

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LICHF Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 6.47 6.14 6.15 6.27 25.03 200.30

TTM P/E 8.00 Sunita Sharma, LIC Housing Finance Shiv Nadar, HCL Technologies

HCL Technologies EPS Q3(Dec13) 18.58 Q2(Sept-13) 18.52 Q1(June-13) 20.78 Q4 (FY13) 11.99 TTM EPS 69.87 Price 1473.10

TTM P/E 21.08 run-the-business offering and the optimization of general and administrative spend helped in pushing the net income margin. “The asset light model reflected by our fixed asset turnover at 10 times of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35 percent and operating cash flows in excess of 100 percent of net income.”

Liberty Shoes Runs Faster Liberty Shoes has reported a standalone sales turnover of Rs 110.46 crore and a net profit of Rs 3.24 crore for the quarter ended Dec ’13. Liberty Shoes has six manufacturing units collectively producing, 50,000 pairs of footwear a day, sold through 6,000 multi-brand outlets and 350 exclusive showrooms, and has a presence in 25 countries, with 50 showrooms outside India. Other income for the quarter was Rs 0.01 crore. For the quarter ended Dec 2012 the standalone sales turnover was Rs 90.10 crore and net profit was Rs 1.78 crore, and other income Rs 0.03 crore.

Liberty Shoes EPS Q3(Dec13) 1.90 Q2(Sept-13) 1.78 Q1(June-13) 1.52 Q4 (FY13) 1.86 TTM EPS 7.06 Price 127.35

TTM P/E 18.04

Shikha Sharma, Axis Bank

Axis Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 34.19 29.04 30.07 34.39 127.69 1120.95

TTM P/E 8.78

Axis Bank Grows Topline and Bottomline, Asset Quality Worsens A decrease in provisioning requirements helped Axis Bank, the country’s third largest private sector lender, report a 19 percent growth in third quarter net profit to Rs 1,604.11 crore. Net interest income climbed 19.6 percent year-on-year to Rs 2,984 crore for the quarter ended December 2013. Retail banking business led the growth in earnings (22.9 percent year-on-year) and the treasury and corporate banking business grew 7 percent and 3.8 percent, respectively. Total expenses of the bank increased nearly 10 percent to Rs 6,818.52 crore during the third quarter as against Rs 6,218.79 crore in corresponding quarter of last fiscal. Asset quality worsened in the December quarter with gross nonperforming assets (NPA) rising 15 basis points on yearly basis (6 bps sequentially) to 1.25 percent. Net NPAs climbed 9 bps year-on-year (5 bps Q-o-Q) to 0.42 percent during the same period. In absolute terms, gross NPAs jumped 32 percent (10 percent quarter-on-quarter) to Rs 3,008 crore compared to a year ago period while net NPAs surged 48 percent on yearly basis (19.6 percent sequentially) to Rs 1,003 crore in December quarter. Provisions and contingencies fell sharply to Rs 202.5 crore in OctoberDecember quarter as against Rs 687.5 crore in earlier quarter and Rs 384 crore in corresponding quarter of last fiscal. Capital adequacy ratio (as per Basel III norms) stood at 15.50 percent in the third quarter as against 15.85 percent in second quarter of current financial year 2013-14. Net interest margin declined marginally to 3.71 percent versus 3.79 percent on sequential basis.

VA Joseph, South Indian Bank

South Indian Bank EPS Q3(Dec13) 1.05 Q2(Sept-13) 0.94 Q1(June-13) 0.86 Q4 (FY13) 1.15 TTM EPS 4.00 Price 19.95

South Indian Bank’s Focus on Recoveries Deliver TTM P/E

4.99

Private sector lender South Indian Bank’s third quarter net profit climbed 10.2 percent year-on-year to Rs 141.3 crore, supported by improved asset quality, lower provisions and higher other income. But net interest income declined marginally to Rs 350.5 crore in the quarter ended December 2013 from Rs 352.6 crore in a year ago period due to higher expenses. Total expenses jumped nearly 17 percent on yearly basis to Rs 1,118.86 crore in the third quarter on higher employee cost and other operating expenses. Other income of the bank soared 27.9 percent to Rs 84.62 crore during the same period. Gross non-performing assets as a percentage of gross advances fell 26 basis points sequentially (up 4 bps on yearly basis) to 1.66 percent while net NPAs declined 21 bps quarter-on-quarter (up 50 bps Y-o-Y) to 1.18 percent in the quarter gone by. In absolute terms, gross NPAs dropped 10 percent to Rs 554.63 crore and net NPAs slipped 11 percent to Rs 391.93 crore on sequential basis. On yearly basis, however, these NPAs climbed 17 percent and 99.3 percent, respectively. The reason for improvement in asset quality is that recoveries were greater than slippages in the quarter gone by, VA Joseph, MD and CEO said. Seasonal Magazine

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Q 3Results

Bajaj Finserv Boosted by Life Insurance Growth Private sector insurance company Bajaj Finserv’s profit after tax increased 13 percent year-on-year to Rs 281 crore and total income climbed 24 percent to Rs Rs 1,393 crore in the quarter ended December 2013. Profit after tax of the general insurance segment rose 4 percent on yearly basis to Rs 95 crore. Gross written premium during the quarter jumped 13 percent Y-o-Y to Rs 1,073 crore during third quarter. Life insurance business’ net profit shot up 15 percent on yearly basis to Rs 115 crore. New written premium was slightly higher at Rs 678 crore in the quarter ended December 2013 compared to Rs 669 crore in a year ago period. During the same period, renewal premium was lower at Rs 707 crore as against Rs 839 crore and gross written premium declined to Rs 1,385 crore from Rs 1,508 crore.

Geojit BNP Paribas Aided by Other Income, Exceptional Gain Geojit BNP Paribas Financial Services’ third quarter consolidated net profit jumped 20.76 percent year-on-year to Rs 15.7 crore, led by other income and exceptional gains. However, consolidated net sales fell 15 percent to Rs 50.2 crore in the quarter ended December 2013 from Rs 59.2 crore in a year ago period. Total expenses of the broking and financial services company declined to Rs 41.54 crore from Rs 46.49 crore and tax expenses fell to Rs 5.67 from Rs 6.28 crore during the same period. Other income jumped to Rs 8.97 crore during December quarter from Rs 5.39 crore in corresponding quarter of last fiscal. Geojit BNP earned an exceptional gain of Rs 2.26 crore in the quarter gone by as its subsidiary recovered amount against the provision made for funded exposure of its clients who had trade relationship with National Spot Exchange. Seasonal Magazine

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Sanjiv Bajaj, Bajaj Finserv

Bajaj Finserv EPS Q3(Dec13) 17.70 Q2(Sept-13) 17.40 Q1(June-13) 17.50 Q4 (FY13) 15.80 TTM EPS 68.40 Price 681.55

TTM P/E 9.96

Bajaj Finance EPS Q3(Dec13) 39.00 Q2(Sept-13) 33.56 Q1(June-13) 35.30 Q4 (FY13) 35.35 TTM EPS 143.21 Price 1465.60

Bajaj Finance Grows Bottomline, TTM P/E Despite Higher Provisioning

10.23

Bajaj Finance’s third quarter profit after tax climbed 21 percent year-on-year, to Rs 194.14 crore. Loan losses and provisions increased 55 percent to Rs 79 crore during December quarter from Rs 51 crore in a year ago period. “Without the accelerated provisioning of Rs 21 crore, made to strengthen provisioning framework, the increase in loan losses for Q3FY14 over Q3FY13 would have been 14 percent and the profit after tax would have been at Rs 208 crore, a growth of 30 percent,” the company said. Total income of the finance company rose 30 percent to Rs 1,070.3 crore and net interest income jumped 33 percent on yearly basis to Rs 672 crore in the quarter ended December 2013. Assets under management (AUM) grew 33 percent to Rs 22,461 crore while customers acquired during the third quarter spiked 15 percent year-on-year to 9,62,204 and deployments climbed 45 percent Y-o-Y to Rs 7,532 crore. Gross non-performing assets (NPA) increased to 1.15 percent from 1.14 percent while net NPAs declined to 0.23 percent from 0.26 percent year-on-year. Provisioning coverage ratio stood at 80 percent and capital adequacy ratio (including Tier-II capital) stood at 19.53 percent as of December 2013.

Geojit BNP Paribas EPS Q3(Dec13) 0.69 Q2(Sept-13) -4.13 Q1(June-13) 0.72 Q4 (FY13) 0.66 TTM EPS 2.76 Price 20.80 CJ George, Geojit BNP Paribas

TTM P/E

7.54

YES Bank Relies on Non-Interest Income, Asset Quality Weakens Further Private sector lender YES Bank ‘s third quarter net profit jumped 21.4 percent, higher-than-expected, to Rs 415.6 crore supported by non interest income, but asset quality weakened. Net interest income, rose 14 percent, to Rs 665.4 crore on account of a cautious and steady growth in advances. The bank managed to keep net interest margin unchanged at 2.9 percent in the quarter ended December 2013 compared to earlier quarter, but it has fallen by 10 basis points from 3 percent, year-on-year. Non-interest income climbed 23.9 percent year-onyear to Rs 387.9 crore on continued growth across all fee income streams. Gross non-performing assets (NPA) as a proportion of gross advances more than doubled (up 12 basis points sequentially) to 0.39 percent in Q3 compared to 0.17 percent in a year ago period. Net NPAs increased to 0.08 percent in December quarter from 0.04 percent in previous quarter as well as corresponding quarter of last fiscal. In absolute term, gross NPA surged 157 percent year-on-year (48 percent Q-oQ) to Rs 195.80 crore while net NPAs rose 172 percent on yearly basis (118.5 percent sequentially) to Rs 42.31 crore during October-December quarter. Rana Kapur, YES Bank

YES Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 11.53 10.30 11.16 10.11 43.10 306.30

TTM P/E 7.10

IndusInd Bank’s Growth Strong, But Asset Quality is Worsening

P.K. Kataky, Exide

Exide Loses Charge Automobile battery manufacturer Exide Industries missed street expectations on every parameter with the third quarter net profit falling 25.5 percent year-onyear to Rs 77.5 crore, impacted by weak demand. PK Kataky, MD and CEO said continued sluggish demand had its impact on the performance of the company. “In the replacement market, the demand for heavy duty and light duty commercial vehicles including passenger cars used for commercial application (taxi) remained subdued. Automobile original equipment manufacturers (OEMs) had a degrowth. In industrial batteries, the demand for infrastructure, motive power, telecom and inverter batteries continued to be sluggish,” Kataky elaborated. Revenue for the quarter declined to Rs 1,301.4 crore from Rs 1,462.1 crore in corresponding quarter of last fiscal. Earnings before interest, tax, depreciation and amortisation dropped 15 percent Y-o-Y to Rs 140 crore and operating profit margin declined 50 basis points on yearly basis to 10.8 percent in the quarter gone by. Other income of the company more than halved to Rs 5 crore from Rs 12.2 crore during the same period.

Exide Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.91 1.40 1.87 1.72 5.90 104.05

TTM P/E 17.64

Private sector lender IndusInd Bank’s third quarter net profit rose 29.8 percent, higher-than-expected, yearon-year to Rs 346.9 crore, but asset quality deteriorated. Net interest income increased 26.3 percent to Rs 730 crore in the quarter ended December 2013 from Rs 578 crore in a year ago period. “The bank has incurred a mark-to-market loss of Rs 64 crore during the quarter,” Romesh Sobti, MD and CEO said. Gross nonperforming assets (NPA) climbed to 1.18 percent during the quarter from 1.11 percent in earlier quarter and 0.99 percent in a year ago period while net NPAs rose 9 basis points sequentially (up 1 bp year-on-year) to 0.31 percent. In absolute term, gross NPA increased 14.5 percent Q-o-Q (up 48.2 percent Y-o-Y) to Rs 625 crore and net NPAs surged 51.4 percent on sequential basis (31.7 percent on yearly basis) to Rs 165 crore in the quarter gone by. Provisions and contingencies too climbed to Rs 126 crore during October-December period from Rs 88.8 crore in September quarter and Rs 78.68 crore in a year ago period. Meanwhile, net interest margin (NIM) of the bank has been stable despite cost of deposits being up 17 basis points. NIM rose to 3.65 percent from 3.46 percent year-on-year.

IndusInd Bank EPS Q3(Dec13) 6.62 Q2(Sept-13) 6.30 Q1(June-13) 6.41 Q4 (FY13) 5.89 TTM EPS 25.22 Price 386.10

TTM P/E 15.31 Seasonal Magazine

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Q 3Results

Infosys Shows Murthy Effect, But Lags TCS in Most Metrics India’s second largest IT services exporter Infosys ‘ consolidated net profit rose 19.4 percent, higher-thanexpected, quarter-on-quarter to Rs 2,875 crore in the quarter ended December 2013. Year-on-year growth in profit was 21.4 percent. Its profitability was impacted by visa cost of Rs 219 crore (one off item) in the quarter ended September 2013. “During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations,” said Rajiv Bansal, Chief Financial Officer. Consolidated revenue increased 0.47 percent sequentially (up 25 percent Y-o-Y), in-line, to Rs 13,026 crore and dollar revenue climbed 1.6 percent Q-o-Q to USD 2,100 million in the quarter gone by. Meanwhile, the IT exporter raised its full year (FY14) dollar revenue guidance to 11.5-12 percent from 910 percent earlier. “The year ahead

looks exciting for the IT services industry. We believe the global economic environment has improved and clients are gaining confidence to invest in their strategic initiatives,” SD Shibulal, CEO and Managing Director said. Rupee revenues on consolidated basis is expected to grow 24.4-24.9 percent for the current financial year 2013-14, Infosys said. Earnings before interest and tax for the December quarter (EBIT) rose 14.9 percent, stronger-than-expected quarter-onquarter to Rs 3,259 crore and EBIT margin expanded by 328 basis points to 25 percent. Infosys and its subsidiaries added 54 clients during the quarter as against 68 clients in the previous quarter and 89 clients in a year ago period. Active clients increased to 888 in December quarter as against 873 in earlier quarter. The company won more than 20 deals during third quarter. “Focus on cloud and big data as new

growth areas continues to yield results,” Infosys said. Infosys and its subsidiaries added 6,682 employees on gross basis in the quarter gone by, taking the total headcount to 1,58,404 employees as on December 31, 2013. Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds increased to Rs 27,440 crore as on December 31, 2013 from Rs 26,907 crore in earlier quarter. Revenue from BPO business climbed 3.3 percent to USD 136.5 million from USD 132.1 million, quarter-on-quarter and net income grew 31 percent to USD 24.72 million from USD 18.87 milllion Q-o-Q. Geograhical growth On sequential basis and in constant currency, revenues from its North America business declined 0.8 percent. Europe business grew by 5.5 percent Q-o-Q and 3.5 percent in constant currency while Indian business jumped 9.2 percent Q-o-Q and 8.1 percent in constant currency. Rest of world grew 4.9 percent sequentially and 5.2 percent in constant currency. Narayana Murthy, Infosys

Infosys Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 50.32 42.12 41.54 41.89 175.87 3595.80

TTM P/E 20.45

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L&T Performs Against Pressure, To Focus More on International Business Country’s largest engineering and construction company Larsen and Toubro’s third quarter net profit grew 10.6 percent year-on-year to Rs 1,241 crore compared to a year ago period. After considering the exceptional gain on dilution of part stake in a subsidiary company (hydrocarbon), adjusted profit after tax soared over 22 percent during the quarter. Post demerger, L&T transferred hydrocarbon business to its subsidiary L&T Hydrocarbon Engineering with effect from April 1, 2013. Accordingly, the company restated suitably its earnings for the previous quarter ended September 2013 and numbers relating to previous periods, R Shankar Raman, whole-time director and Chief Financial Officer said, “Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum.” Revenues jumped 11.8 percent to Rs 14,387.5 crore in the quarter ended December 2013, that was limited due to fall in power, and metallurgical and material handling businesses. On the operational front, earnings before interest, tax, depreciation and amortisation jumped 33 percent Rs 1,675 crore and operating profit margin expanded 180 basis points to 11.6 percent compared to a year ago period. Order Book Order inflow in the December ended quarter rose 21 percent to Rs 21,722 crore year-on-year, aided by major orders in infrastructure segment. The international order inflow in Q3 grew more than doubled to Rs 8,237 crore on the back of major orders from Middle East. Order book of the engineering and construction company stood at Rs 1.71 lakh crore as on December 2013, a growth of 13 percent compared to a year ago period, including 15 percent international order book.

Tata Motors’ Topline Helped by JLR, Bottomline by Sale of Investments Third-quarter earnings for Indian automaker Tata Motors zoomed, driven mainly by an exceptional income in the local standalone business and a robust performance at its British subsidiary Jaguar Land Rover. Consolidated revenue for the firm stood at Rs 63,877, rising 38 percent year-on-year from Rs 46,090 crore. Operating profit came in at Rs 9,948 crore versus Rs 5,657 crore in the year-ago quarter (a jump of 75 percent) while net profit surged 195 percent, from Rs 1,627 crore to Rs 4,805 crore. However, much of the higher profits came in due to an exceptional income of Rs 1,948 crore accruing to the local business, which came from a sale of investments in foreign subsidiaries. In the standalone business, revenue fell 27 percent yearon-year, from Rs 10,630 crore to Rs 7,769 crore while net profit stood at Rs 1,251 crore versus a loss of Rs 458 crore. Tata Motors’ domestic business has witnessed an intense slowdown as

Tata Motors Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

AM Naik, L&T

L&T Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 13.40 10.57 8.18 29.06 61.21 993.65

TTM P/E 16.23

Cyrus Mistry, Tata Motors

EPS 14.91 10.99 5.38 12.35 43.63 376.65

TTM P/E 8.63 sales of its passenger cars came off in the face of high competition and its own line-up of cars being perceived as dated. The firm’s share in the passenger vehicle fell to about 8.5 percent in the month of December 2013, down from about 12 percent in FY13 and 14 percent in FY12. At the ongoing Auto Expo, Tata has showcased a slew of vehicles including a hatchback named Bolt and a Zest sedan, apart from recently launching upgraded versions of its Nano car. In contrast, business at JLR, the marquee British firm Tata acquired in 2008, remained brisk and

continued to provide a boost to the consolidated numbers. Quarterly profits for JLR stood at 619 million pounds on revenues of 5.33 billion pounds. Operating profit for the automaker stood at 955 million pounds, translating into margins of 17.9 percent. The company management, at a press conference, said JLR’s margins increased due to an improvement in its product mix - the company’s new Land Rover models such as the Range Rover Evoque and Jaguar’s F-Type have met with success - and higher contributions from highgrowth markets such as China. Seasonal Magazine

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Q 3Results

Reliance Power’s Topline Falls, Bottomline Flat Anil Ambani, Reliance Power

RPower Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.95 0.89 0.86 0.95 3.65 61.00

TTM P/E 16.71

Reliance Power’s third quarter (October-December) consolidated net profit grew 6.7 percent sequentially to Rs 267.2 crore on better operational performance. Year-on-year the profit was flat. Consolidated net sales rose 4 percent quarter-on-quarter (down 6 percent year-on-year) to Rs 1,372.6 crore in the quarter gone by. Operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) grew 16 percent to Rs 500 crore and margin Seasonal Magazine

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expanded 380 basis points to 36.4 percent on sequential basis. “1,200 MW Rosa power plant in UP operated at an availability of 97 percent and registered a plant load factor of 84 percent despite planned overhaul of one unit during December 2013,” the company said. The company’s second 660 MW unit of the Sasan UMPP achieved full load in December and was commissioned in January 2014. “The third 660 MW unit is expected to be commissioned during JanuaryMarch quarter,” Reliance Power said.

DCB Bank’s Bottomline Expands Handsomely, Promoter Stake Remains an Overhang Private sector DCB Bank today reported a 33 per cent rise in net profit to Rs 36 crore in the three months ended December 31 from Rs 27 crore a year ago. The small-sized lender’s deposits grew 27 per cent to Rs 9,592 crore, while advances jumped 23 per cent to Rs 7,361 crore on a good show by corporate and mortgage books. DCB Bank Managing Director and CEO Murali M Natrajan attributed the good set of numbers to prudent business wherein the bank lowered its exposure to stressed sectors such as agriculture and small industrial units, among others. On equity dilution by the promoters, Natrajan said the bank is unlikely to meet the RBI deadline of March 2014 due to market conditions and will approach the regulator for a deadline extension. The DCB promoters Aga Khan Fund hold 18 per cent in the bank and have to bring it down to under 10 per cent as per RBI directive. Over the past four years, the promoters have trimmed their holding to 18 from 26 per cent. Good asset quality helped the lender to improve its net interest margin (NIM) to more than the expected level of 3.5 per cent, up from 3.38 per cent a year ago. Natrajan said he expects the NIM to come down a bit in Q4 as priority sector lending will increase in the quarter.

DCB Bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 1.45 1.32 1.71 1.36 5.84 53.35

TTM P/E 9.14

GIC Housing Finance Grows Topline, Net Profit Remains Flat Small-sized housing finance firm, GIC Housing Finance, promoted by India’s public sector general insurance majors, has reported a standalone sales turnover of Rs 158.49 crore and a net profit of Rs 23.64 crore for the quarter ended Dec ’13. For the quarter ended Dec 2012 the standalone sales turnover was Rs 139.48 crore and net profit was Rs 23.21 crore.

GICHF Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 4.39 4.59 4.51 3.09 16.58 97.05

TTM P/E 5.85 Ashok K. Roy, GIC Housing Finance

TIL’s Sales Improve, Profits Plunge TIL has reported a consolidated sales turnover of Rs 322.66 crore and a net profit of Rs 0.83 crore for the quarter ended Dec ’13. Tractors India Ltd is a leading solution provider in the infrastructure equipment space, known for their mobile cranes, materials handling solutions, and power systems solutions. Other income for the quarter was Rs 0.57 crore. For the quarter ended Dec 2012 the consolidated sales turnover was Rs 289.37 crore and net profit was Rs 3.84 crore, and other income Rs 2.00 crore. A. Mazumdar TIL

TIL Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.83 -7.77 -11.47 19.79 41.26 129.25

Andhra Bank’s Bottomline Plummets, But NII and Other Income Up Mid-sized PSU lender Andhra Bank has reported its results for the quarter ended Dec ’13. Standalone Net Interest Income (NII) for the quarter was Rs 3,597.64 crore and net profit was Rs 45.57 crore. Other income for the quarter was Rs 302.90 crore. For the quarter ended Dec 2012 the Standalone Net Interest Income (NII) was Rs 3231.05 crore and net profit was Rs 257.09 crore., and other income Rs 238.16 crore.

andhra bank Q3(Dec13) Q2(Sept-13) Q1(June-13) Q4 (FY13) TTM EPS Price

EPS 0.81 1.26 4.13 6.16 12.36 54.70

TTM P/E 4.42

CVR Rajendran, Andhra Bank

TTM P/E 3.13

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Rs. 50

Bahrain BD 1.50 Kuwait KD 1.50 Oman OR 1.50, Saudi Arabia SR 12.00 UAE DH 10.00 UK £ 3.00, US $ 3.00

VOLUME 13 ISSUE 12 DECEMBER 2014

Cover Story

Q2 Results Analysis

Defying Gravity!

he rush of Q2 results is almost over. Meanwhile, since the results started getting published from mid October, to now, market has run up steeply. Sensex has surged from a â&#x20AC;&#x2DC;lowâ&#x20AC;&#x2122; of 26,000 to a high of 28,334, during this period, with the broader and sectoral indices rising even higher. Is it finally time to pause and ponder whether the rally is justified? There are pundits who justify the 9% rise in Sensex within a month, on the 13% consolidated YoY rise recorded in the net profit of around 3700 companies whose results that have come out. That is surely earnings expansion, but there are several indications that all is not well with this growth. First is that, YoY sales growth has been much lower for these 3700 companies, at just 3.30%. What that signals is that Other Income must have surged, and a quick

Seasonal Magazine 2

DECEMBER 2014

tally shows that it is indeed true as Other Income growth on a YoY basis stands at over 21%. It reveals that companies are facing a wall of resistance in growing core sales, and are instead relying on innovations and creative means to grow the topline and bottomline, so as to benefit from the overseas fund-flow and rally. The challenges of India Inc are also evident from the soaring interest costs that has shot up by nearly 10% YoY. The situation may change in the near term if the Winter Session of Parliament produces the much awaited breakthroughs, and RBI starts cutting the rates. But until that happens, companies should be analysed on a case-by-case basis, and not even sectoral calls can be made safely. Seasonal Magazine brings you the detailed Q2 analyses on some of the most buzzing companies in different sectors. 3 Seasonal Magazine

RESULTS Arundhati Bhattacharya, Chairperson, State Bank

UNION BANK WINS THE BET ON OTHER INCOME GROWTH

nion Bank of India has reported a 78% rise in its Q2 net profit on account of lower provisions and higher other income. The state-owned lender’s net profit for the second quarter stood at Rs.371 crore as compared with Rs.208 crore a year ago. Provisions during the three month period stood at Rs.785.4 crore, down 16% from Rs.937 crore reported last year. Net interest income rose by 6.6% to Rs.2,084 crore during the quarter, from Rs.1,954.5 crore reported last year. Other income rose to Rs.811 crore from Rs.611 crore a year ago. The bank’s asset quality slipped with the gross non-performing asset (NPA) ratio at 4.69% in the July-September period, higher than the 4.27% reported in the April-June quarter. Similarly, net NPA as a ratio of net advances stood at 2.71% during the second quarter, higher than the 2.46% reported in the quarter ended June.

SBI CONTINUES THE STATELY PERFORMANCE

ven as loan growth remained muted this fiscal year, tighter control over expenses and higher earnings from services such as commissions and brokerages helped State Bank of India (SBI) post 30% growth in net profit for September quarter at Rs 3,100 crore. Giving an outlook for coming quarters, SBI chairman Arundhati Bhattacharya said the bank expects profit to come from a healthy loan book, while adding that worries on bad debt will continue until the economy revives. Total expenses at the country’s largest bank rose 2.2% to Rs 9,423 crore while net revenue rose 15% to Rs 17,844 crore. The non-interest income rose 40% to Rs 4,570 crore while net interest income was up 8.36% to Rs 13,276 crore. Giving an outlook for the economy, Bhattacharya said, “The downturn has been very deep and we will see a gradual improvement. But once we see the demand cycle coming back, definitely we will see things happening at a faster pace. The pace will pick up, but for the pace to pick up, we are 12 months away.” The State Bank of India group posted a 31% rise in net profit at Rs 4,024 crore. State Bank of India’s loan book saw 9% growth at Rs 12,42,638 crore. However, on a year-to-date basis (April-September), the loan book shrank Rs 8,300 crore. “So, we are not really seeing a robust growth in loans and therefore, in the next two quarters, we are looking at 11-12% overall growth,” Bhattacharya said. These projections are substantially lower than 15.4% loan growth that the bank registered in the previous fiscal. Deposits rose 14% to Rs 14,73,785 crore, of which the share of low cost ones - CASA - was 42.79%. Bhattacharya indicated that she was looking forward to a reduction in interest rates by the central bank. “CPI (consumer price index) numbers clearly show no demand,” she said. “When there is no demand, keeping high interest does not serve any purpose. We believe interest should start trending downwards... We believe, by the first quarter of the next year... we will be able the see the downward cycle beginning.” Seasonal Magazine 4

Arun Tiwari, CMD,Union Bank of India

GLENMARK KEEPS STAKEHOLDERS GLAD

lenmark Pharmaceuticals posted a 6.98 percent increase in its net profit at Rs 165.07 crore for the second quarter ended September 30, 2014. The Mumbai headquartered firm had posted a net profit of Rs 154.29 crore during the same period of the previous fiscal. Glenmark’s net sales rose by 14.25 per cent to Rs 1,671.53 crore during the second quarter as compared with Rs 1,463 crore in the same period of the last fiscal. “Despite the challenging environment, we have performed well across geographies viz India, Europe, and Latin America. The environment continues to be tough especially in the US where product approvals have slowed down considerably and the channel consolidation has impacted overall sales,” Glenmark Pharmaceuticals CMD Glenn Saldanha said. For the half year period ended September 30, the company posted a net profit of Rs 349.9 crore as against net profit of Rs 282.9 crore in the corresponding period last year. Net sales of the company for the half-year period ended September 30 rose to Rs 3,149.35 crore as compared to Rs 2,700.88 crore in the same period of the previous fiscal.

FEDERAL LED BY STABLE ASSETS

DECEMBER 2014 CAN FIN CONTINUES CAN-DO ATTITUDE IN GROWTH an Fin Homes has reported a standalone total income from operations of Rs 198.45 crore and a net profit of Rs 18.45 crore for the quarter ended Sep ’14. Other income for the quarter was Rs 0.10 crore. For the quarter ended Sep 2013 the standalone total income from operations was Rs 137.95 crore and net profit was Rs 18.74 crore, and other income Rs 0.04 crore. The fast growing home finance company promoted by Canara Bank continued to exhibit the best asset quality among all housing finance companies, even when most banks’ housing portfolios are showing an uptick in NPAs. Can Fin Homes shares has given a maximum return of 289% over the last 12 months.

Shyam Srinivasan MD & CEO, Federal Bank Ltd

erala based private sector lender Federal Bank’s second quarter net profit climbed 6.4 percent on yearly basis to Rs 240.3 crore led by strong other income, but impacted by higher provisions. Profit in the year-ago period was Rs Rs 225.8 crore. Net interest income rose by 10.5 percent to Rs 605.8 crore in the quarter ended September 2014 compared to Rs 548 crore in same quarter last year while other income jumped 36.6 percent to Rs 195.9 crore from Rs 143.4 crore during the same period. Net interest margin improved to 3.35 percent in September quarter compared to 3.25 percent in previous quarter. Provisions and contingencies stood at Rs 45.7 crore in July-September quarter of current financial year 2014-15, increased from Rs 22 crore in previous quarter and negative Rs 4.02 crore in corresponding quarter of last fiscal. Asset quality was stable during the quarter with the gross non-performing assets (NPA) falling to 2.1 percent from 2.22 percent Q-o-Q and 3.39 percent Y-o-Y. Net NPA declined to 0.66 percent from 0.68 percent on sequential basis and 0.98 percent on yearly basis. Slippages declined sequentially to Rs 174 crore from Rs 220 crore and fresh restructuring fell too, down at Rs 68 crore in Q2 compared to Rs 88 crore in June quarter.

Glenn Saldanha, CEO & MD, Glenmark Pharma

C. Ilango, MD, Can Fin Homes Limited

PRESTIGE ESTATES IS ALSO PUNCTUAL WITH HIGHER PROFITS restige Estates Projects Limited has reported a 24.82 per cent increase in profit to Rs. 96.89 crore for the second quarter of this fiscal on a standalone basis. The company’s quarterly profit was Rs. 77.62 crore during the same period last year. Total income of the company also increased by 13.68 per cent to Rs. 540.33 crore from Rs. 475.30 crore recorded last year. EPS stood at Rs. 2.66 vs. Rs. 2.22. EBITDA is up 28 percent to Rs 152.2 crore against Rs 118.7 crore. Operating margins stood at 28.2 percent against 25 percent. Prestige’s CMD Irfan Razack informed that H2 will witness revenues getting recognised from the launches done in H1.

Irfan Razack,CMD, Prestige Group. 5 Seasonal Magazine

RESULTS APOLLO TYRES ROLLS OUT MORE PROFITS pollo Tyres reported 17.52 percent increase in consolidated net profit at Rs 257.94 crore for the second quarter ended September 30, 2014-15 driven by higher exports. The company had reported net profit of Rs 219.47 crore in the July-September quarter of 2013-14. Its net sales in Q2 of the current fiscal were Rs 3,300.64 crore, down 3.86 percent, compared to Rs 3,433.45 crore in the year ago period, the company said. Apollo Tyres chairman Onkar S Kanwar said: “Our 18-24 months of planning and smart execution has resulted in incremental exports out of India, and with additional demand for our products in the Middle East and ASEAN region, we expect this to grow further. “Taking into account the export growth, and the expected revival of the commercial vehicle segment in India, our expansion projects in Chennai and Kochi, both in the southern part of India, is moving ahead full steam.” Exports have grown over 30 percent, which has led to a strong performance by the Indian operations, the company said. Apollo said sale of part of African business in the last fiscal, led to the company reporting flat revenue growth on a consolidated level in the second quarter and half year of this fiscal. Overall expenses in Q2 were at Rs 2,928.77 crore compared with Rs 3,085.32 crore in the year-ago period.

Onkar S Kanwar Chairman, Neeraj Kanwar. Vice Chairman & MD, Apollo Tyres Seasonal Magazine 6

Shahid Usman Balwa

DB REALTY IS BUILDING BACK PROFIT GROWTH Despite lower sales, DB Realty reported a sharp increase in its consolidated net profit at Rs 10.01 crore for the second quarter ended September 30, 2014-15. Its net profit stood at a mere Rs 58.93 lakh in the year-ago period, Mumbaibased real estate developer said. Net sales, however, declined to Rs 79.97 crore during the second quarter of this fiscal compared with Rs 87 crore in the corresponding period of the last fiscal. DB Realty’s Q2, 2014-15 profit has increased due to rise in other income to nearly Rs 13 crore, from nearly Rs 7 crore in the yearago period. The company also earned an exceptional income of nearly Rs 9 crore during the September quarter. DB Realty is developing about 36 projects, mostly in and around Mumbai, comprising 90 million sq ft.

DECEMBER 2014 UNITED BANK IMPROVES, BUT STILL MILES TO GO olkata-based United Bank of India reported a net profit of Rs 43.80 crore for the second quarter of the current financial year. The bank had reported a net loss of Rs 489.47 crore in the corresponding July-September period of 2013-14. In the previous quarter of the current financial year, the bank had reported net profit of Rs 65.89 crore. Total income fell slightly to Rs 2,835.36 crore during the period under review from Rs 2,876.77 crore in the comparable of the previous year, the bank said.. Bank’s gross non-performing assets (NPAs) or bad loans were 10.78 percent of the total advances as of September quarter, up from 7.52 percent in the year ago period. Net NPAs were at 7.19 percent, while it stood at 5.39 percent during quarter ended September, 2013. The bank trimmed the provisions towards bad loans to Rs 351.84 crore in the review period from Rs 987.35 crore in year ago quarter. Last year, the government had initiated a probe into the bank for mis-reporting about its swelling bad assets. The government holds 88 percent stake in the bank.

UCO BANK FINDS ITSELF IN TROUBLE CO Bank’s second quarter net profit fell 74 percent year-on-year to Rs 103.5 crore dented by higher provisions and lower net interest income but was supported by higher other income. Profit was Rs 400.2 crore in the year-ago period. Net interest income declined 11.9 percent to Rs 1,383 crore in the quarter ended September 2014 compared to Rs 1,570 crore in same quarter last year. However, other income climbed 71.6 percent year-on-year to Rs 358.97 crore in the quarter gone by. Provisions and contingencies jumped 23.3 percent Y-o-Y (up 80.9 percent sequentially) to Rs 935.3 crore in the second quarter of current financial year 2014-15. Asset quality deteriorated sequentially. Gross non-performing assets (NPA) declined 12 basis points on yearly basis (up 89 bps quarter-on-quarter) to 5.20 percent while net NPA rose 2 bps year-on-year (up 82 bps quarter-on-quarter) to 3.15 percent during the quarter.

DENA BANK NOT OUT OF THE WOODS, YET

SU lender Dena Bank ‘s second quarter net profit plunged 52 percent year-on-year to Rs 51.6 crore impacted by lower net interest income and higher provision levels and despite rise in other income. Profit in the year-ago period was Rs 107.4 crore. Net interest income, declined marginally to Rs 624.8 crore from Rs 625.2 crore while other income climbed 19.7 percent to Rs 179.4 crore from Rs 149.9 crore during the same period. Operating expenses jumped 19.6 percent to Rs 485.4 crore in September quarter from Rs 405.7 crore in same quarter last year. Provisions and contingencies declined 6 percent (up 38.2 percent quarter-on-quarter) to Rs 315.2 crore in second quarter of current financial year with the provision coverage ratio at 51.90 percent. Asset quality deteriorated with the gross non-performing assets (NPA) climbing 212 basis points on yearly basis (up 91 bps sequentially) to 5.12 percent and net NPA rising 157 basis points Y-o-Y (up 65 bps Q-o-Q) to 3.59 percent in the quarter gone by.

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RESULTS PETRONET LNG PUMPS OUT BIG PROFITS tate-controlled Petronet LNG’s second quarter net profit jumped 68 percent sequentially to Rs 263 crore on strong operational performance. Profit in previous quarter was Rs 156.6 crore. Net sales grew by 7.9 percent to Rs 10,860 crore in the quarter ended September 2014 compared to Rs 10,065 crore in June quarter. Operating profit (earnings before interest, tax, depreciation and amortisation) surged 52.7 percent quarter-on-quarter to Rs 400 crore and margin expanded by 110 basis points to 3.7 percent in the quarter gone by. Tax expenses during the quarter climbed 65.4 percent to Rs 134 crore from Rs 81 crore on sequential basis.

SYNDICATE BANK IS PRESSED FROM ALL SIDES

Dr.A.K.Balyan, MD & CEO, Petronet LNG Limited

SU lender Syndicate Bank’s net profit slipped 32.9 percent year-on-year to Rs 315.6 crore in JulySeptember quarter dented by higher provisions and tax cost but was supported by higher other income. Profit in the same quarter last year was Rs 470 crore. Net interest income increased marginally to Rs 1,422.5 crore in the quarter ended September 2014 compared to Rs 1,411 crore in the year-ago period. Other income jumped 58 percent to Rs 437 crore from Rs 276.4 crore during the same period. In September quarter, domestic net interest margin of the bank improved sequentially to 2.96 percent from 2.86 percent and global net interest margin expanded to 2.57 percent from 2.47 percent. Operating expenses during the quarter increased 3.3 percent to Rs 905.56 crore from Rs 876.53 crore yearon-year and employee cost declined to Rs 552 crore from Rs 595.92 crore. Tax expenses climbed significantly to Rs 100.5 crore from Rs 1.08 crore during the same period. Provisions and contingencies surged 58.2 percent on yearly basis (up 14.9 percent sequentially) to Rs 537.8 crore in September quarter with the provision coverage ratio at 65.38 percent as on September 2014. Asset quality deteriorated in the second quarter of current financial year 2014-15. Gross NPA rose 55 basis points year-on-year (up 46 bps quarter-on-quarter) to 3.43 percent while net NPA jumped 54 bps Y-o-Y (up 32 bps Q-o-Q) to 2.20 percent in the quarter gone by. Meanwhile, Syndicate Bank said it has sought approval from the government for capital infusion of Rs 1,100 crore via qualified institutional placement.

TATA GLOBAL BEVERAGES OFFERS A BITTER CUP ata Global Beverages reported a 65.31 percent decline in consolidated net profit at Rs 62.45 crore for the second quarter ended September 30. The company had posted a net profit of Rs 180.03 crore for the same period of previous fiscal, aided by exceptional income of Rs 92.05 crore. Net sales during the quarter under review stood at Rs 1,964.41 crore, up 3.05 percent, compared to Rs 1,906.23 crore during the same period in the previous fiscal, Tata Global Beverages Ltd (TGBL) said. TGBL managing director and CEO Ajoy Misra said: “We will continue to focus on innovations based on strong consumer insight across tea, coffee and water. The last quarter has seen new launches and campaigns across geographies in spite of a challenging market environment.”

Seasonal Magazine 8

DECEMBER 2014

BOB CONTINUES TO BANK ON DOMESTIC AND OVERSEAS GROWTH ank of Baroda â&#x20AC;&#x2DC;s second quarter net profit fell 5.5 percent year-on-year to Rs 1,104 crore due to higher provisions and tax rate, and slow growth in non-interest income. Profit in the year-ago period was Rs 1,168 crore. Net interest income climbed 17.5 percent on yearly basis to Rs 3,401 crore from Rs 2,895 crore while other income grew by 1.8 percent to Rs 991.65 crore during the same period. Operating expenses increased 14 percent to Rs 1,989.83 crore in the quarter ended September 2014 compared to Rs 1,744.07 crore in same quarter last year due to higher other expenses. Tax cost surged 5-fold to Rs 410.7 crore from Rs 80.10 crore during the same period. Provisions and contingencies rose 3 percent (jumped 68.6 percent sequentially to Rs 888 crore during the quarter with provision coverage ratio at 65.39 percent as on September 2014. Asset quality weakened on sequential basis. Gross NPA climbed 17 basis points year-on-year (up 21 bps quarteron-quarter) to 3.32 percent and net NPA declined

BoB, Dubai, Branch

12 bps Y-o-Y (up 16 bps Q-o-Q) to 1.74 percent in the quarter gone by. In absolute term, gross NPA jumped 20 percent on yearly basis (up 8 percent sequentially) to Rs 13,057 crore and net NPA shot up 6 percent Y-o-Y (up 11.34 percent Q-o-Q) to Rs 6,704 crore in the second quarter of current financial year 2014-15. Domestic net interest margin of the bank in September quarter improved sequentially to 3.02 percent from 2.94 percent, which was in line with the management guidance. Fresh slippages during the quarter were Rs 1,757 crore, declined compared to Rs 1,881 crore in June quarter. Domestic slippages stood at Rs 1,600 crore and international slippages at Rs 155 crore in the quarter gone by.

K. Venkataraman, MD & CEO, KVB

KVB CASHING IN ON OTHER INCOME GROWTH rivate lender Karur Vysya Bank has reported a 9.2 percent growth in profit at Rs 90.5 crore for the second quarter of current financial year 2014-15 supported by strong other income and NII but was impacted by higher provisions and tax cost. Profit in same quarter last year was Rs 82.9 crore. Net interest income grew by 13 percent year-on-year to Rs 337.4 crore and other income jumped 28 percent to Rs 136 crore in the quarter gone by. Operating expenses increased 7.5 percent on yearly basis to Rs 266.3 crore but employee cost declined 3.6 percent to Rs 126.8 crore from Rs 131.54 crore during the same period. Tax expenses for the quarter were Rs 23.50 crore as against tax refund of Rs 44.55 crore in corresponding quarter of last fiscal. Provisions and contingencies dropped 21.4 percent year-on-year (up 7.8 percent sequentially) to Rs 93.1 crore in Q2FY15 with provision coverage ratio at 75.02 percent as of September 2014. Asset quality was stable with the gross NPA declining 19 basis points year-on-year (up 6 bps quarter-on-quarter) to 1.36 percent and net NPA rising 8 bps Y-o-Y (up 6 bps Q-o-Q) to 0.59 percent during the quarter. Capital adequacy ratio (as per Basel III norms) improved to 14.41 percent during JulySeptember quarter compared to 12.49 percent in previous quarter and 12.81 percent in the year-ago period.

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RESULTS

SOUTH INDIAN BANKâ&#x20AC;&#x2122;S TOTAL BUSINESS MOVES NORTHWARD

Thrissur based South Indian Bank made a net profit of Rs. 76.30 crore in the second quarter of the 2014-15 financial year. The net profit for Q1 fell because of the higher provisioning towards restructured advances, the bank said. About 50 per cent of the incremental provisioning for the current quarter was of one-time nature. The bankâ&#x20AC;&#x2122;s net profit for the first half of the financial year is Rs. 202.95 crore. It has registered growth in business volume, net interest margin and operating profit. The total business, on a year-on-year basis, has increased by Rs. 6,984 crore (nine per cent) from Rs. 75,610 crore to Rs. 82,564 crore, while total deposits rose by Rs. 3,215 crore (seven per cent), from Rs. 43,478 crore to Rs. 46,693 crore.

Indian Bank T.M. Bhasin

INDIAN BANK IS NEITHER SHRINKING OR GROWING ublic sector lender Indian Bank has reported a 2.8 percent growth in net profit at Rs 314.3 crore in July-September quarter driven by higher non-interest income but was limited due to spike in provisions. Profit in the year-ago period was Rs 305.8 crore. Net interest income grew by 7.6 percent year-on-year to Rs 1,176.4 crore while other income jumped 21.4 percent on yearly basis to Rs 336.25 crore in the quarter gone by. Operating expenses climbed 12.45 percent to Rs 747.7 crore in the quarter ended September 2014 compared to Rs 664.94 crore in corresponding quarter of last fiscal. Provisions and contingencies increased 27.4 percent year-on-year (declined 12 percent sequentially) to Rs 286.6 crore in the second quarter of current financial year 2014-15 with non-performing loan provision coverage ratio at 57.41 percent as on September 2014. Asset quality slightly weakened on sequential basis. Gross non-performing assets (NPA) climbed 45 basis points Y-o-Y (up 20 bps Q-o-Q) to 4.21 percent while net NPA declined (up 7 bps quarter-onquarter) to 2.55 percent in Q2FY15 from 2.56 percent in Q2FY14. Advances grew by 6.7 percent year-on-year to Rs 1,16,646.14 crore and deposits rose by 8 percent to Rs 1,64,981.52 crore in the quarter gone by.

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THERMAX HAS COOL NUMBERS TO REPORT

une-based energy solutions provider Thermax today reported over two-fold jump in its net profit at Rs 86 crore for the quarter ended September 30, 2014. The company had posted a net profit of Rs 30.16 crore in the corresponding quarter of the last financial year. Total income increased to Rs 1,213.96 crore during the quarter under review from Rs 1,050.81 crore in the same quarter of the last financial year, Thermax said in a statement. During the quarter, the company had an order inflow of Rs 1,089 crore. Order booking has been helped by improvement in the demand for its standard products in the domestic market and also project orders from the international market, the company said in a statement. As on September 30, 2014, Thermax has an order backlog of Rs 5,016 crore against Rs 5,308 crore in the same period of last year. Meher Pudumjee, Chairperson, Thermax Ltd.

DECEMBER 2014 CUB CONTINUES TO PURR

CANARA BANK HOLDS GROUND anara Bank’s net profit increased 0.14 percent to Rs 626.8 crore in July-September quarter from Rs 625.9 crore in the year-ago period, supported by solid jump in other income but was impacted by higher provisions. Net interest income grew by 8 percent to Rs 2,367.8 crore in the quarter ended September 2014 compared to Rs 2,191.2 crore in corresponding quarter of last fiscal. Other income jumped 32.1 percent to Rs 1,021.34 crore from Rs 773 crore crore during the same period while operating expenses surged 14.6 percent yearon-year to Rs 1,763.6 crore in the quarter gone by. Provisions and contingencies shot up 20.7 percent on yearly basis (up 3.2 percent sequentially) to Rs 813.7 crore during the quarter with the provision coverage ratio at 58.68 percent as on September 30. Asset quality weakened on sequential basis. Gross non-performing assets (NPA) increased 28 basis points Y-o-Y (up 25 bps Q-o-Q) to 2.92 percent while net NPA rose 1 bp year-onyear (up 28 bps quarter-on-quarter) to 2.31 percent in the second quarter of current financial year 2014-15. In absolute term, gross NPA in September quarter was Rs 9,164.3 crore, up 22.6 percent compared to same quarter last year and up 12.3 percent compared to previous quarter. Net NPA jumped 11 percent on yearly basis (up 16.6 percent sequentially) to Rs 7,170.3 crore during the same period. Capital adequacy ratio (as per Basel III norms) declined to 10.19 percent in Q2FY15 compared to 10.23 percent in Q1FY15 and 10.62 percent in Q2FY14.

ity Union Bank has reported an 11-per cent increase in net profit to 193 crore for the second quarter as against 175 crore in the corresponding period last year. Revenue too increased by 11 per cent to 773 crore (from 697 crore). The bank’s Chairman and Managing Director N Kamakodi attributed the better performance to the bank saying no to big-ticket lending of over 100 crore and focusing more on small- and medium-sized companies, a domain it is comfortable with. “We are not concentrating on growth but on improving profitability,” he said. It is usually said that when the economy is bad, the SME and agricultural sectors are the first to be hit, followed by large companies. However, in the bank’s case, it has been the reverse. Repayment by the SMEs and agricultural sectors has been good, he said. The bank’s total deposits as on September 30, increased by 10 per cent to 23,152 crore (21,056 crore). The bank reached a milestone during the quarter by reaching a business of 40,000 crore. It closed the September quarter with a 10-per cent increase to 40,060 crore (from 36,905 crore). Advances saw a 7-per cent growth at 16,908 crore (?15,849 crore). Gross non-performing assets at the end of the second quarter stood at 337 crore, which is 2 per cent of the gross advances, he said.

Dr. Kamakodi, CEO , City union bank

AT MUTHOOT CAPITAL, NO CAP ON GROWTH uthoot Capital Services today said it has posted a net profit of Rs 5.39 crore for the quarter ending September in 2014-15 fiscal. The net profit during the corresponding quarter last year was Rs 5.13 crore. The total income increased to Rs 46.82 crore during the quarter ended Sept 30 2014 as compared to Rs 37.99 crore during the corresponding period last year. The unaudited financial results of the company, part of the Muthoot Pappachan Group, reveals continued good performance. Muthoot Cap shares has given 157.29% returns over the last 6 months and 223.20% over the last 12 months.

Thomas John Muthoot, CMD

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RESULTS WELSPUN WEAVES BACK INTO GREEN n the second quarter of fiscal 2014-15, revenues and EBITDA surged 22% and 21%, respectively, from a year ago quarter, at Welspun India, a part of the $3 billion BK Goenka led, Welspun Group. From Rs. 192 crore loss a year back, Welspun returned to a profit of Rs. 132 crore this quarter. Steered by strong volume growth, revenue at Welspun India climbed 22% to Rs.14,135 million in the second quarter of fiscal 2014-15, compared with Rs.11,589 million in the second quarter of 2013-14. At the same time, EBITDA at Rs.3,169 million, shot up by 25% from Rs.2,540 million in the corresponding quarter of the previous fiscal year. Not to be left behind, EBITDA margin too was marginally higher at 22.4% in the reporting quarter from 21.9% in the prior fiscal year quarter. However, depreciation skyrocketed 50% year-on-year to Rs.717 million in the period under review, from newly commissioned projects due to a new depreciation policy. Finance cost at the third globally biggest home textiles producer, stood at Rs.731 million, expanding by 23% from a year ago quarter, from higher working capital interest cost and also discontinuation of interest subvention. Welspun informed that the modernisation, expansion and vertical integration project is half-way through, on which it has spent capex of Rs.12 billion, by the end of the reporting quarter. The 170,000 spindles and 140 looms, which are part of this plan, have started commercial operations and the remaining is expected to be completed over the next two years at an expense of Rs.13 billion. Chairman, BK Goenka said, “We have increased focus on our domestic as well as global brands, which should further improve our position in the coming years and create long-term value for shareholders.” (AR)

DEAL MAKER JM FINANCIAL’S DELIVERS A NICE DEAL TO INVESTORS M Financial Group on Tuesday posted an 83% jump in consolidated net profit to Rs 92.19 crore for the three months ended 30 September, compared with Rs 50.40 crore a year ago. The group advised IDFC Ltd when the lender sold Rs 1,000 crore worth of shares to institutional buyers. It also advised Financial Technologies (India) Ltd (FTIL) for divestment of stake held in Multi Commodity Exchange of India Ltd. In the alternative investment fund management space, the combined assets of the group’s private equity fund and real estate fund stood at a total of around Rs1,005 crore at the end of September. In the group’s mutual fund business, average assets for the September quarter stood at Rs11,976 crore.

Nimesh N. Kampani, Chairman, JM Financial Group

IL & FS INVESTMENT MANAGERS COMES ACROSS AS A TOUGH INVESTMENT L & F S Investment Managers, one of India’s largest homegrown PE funds, announced a sharp drop in consolidated net profit for the quarter ended September 2014. During the quarter, the profit of the company declined 18.44%. Net sales for the quarter declined 13.59%. Earnings per share for the quarter stood at Rs 0.50, registering 19.35% decline over previous year period. IL & FS Investment Managers has reported a consolidated total income from operations of Rs 46.68 crore and a net profit of Rs 15.85 crore for the quarter ended Sep ’14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 53.82 crore and net profit was Rs 19.43 crore. However, from its beaten-down status, IL & FS shares has given 59.06% returns over the last 6 months and 61.04% over the last 12 months.

B.K. Goenka, Chairman, Welspun Group India Seasonal Magazine 12

DECEMBER 2014

ABAN OFFSHORE DRILLS OUT SURPRISING PROFITS ban Offshore has disclosed a sharp rise in consolidated net profit for the quarter ended September 2014. During the quarter, the profit of the company rose 91.49%. Net sales for the quarter rose marginally by 1.69%. Earnings per share for the quarter stood at Rs 29.52, registering 66.50% growth over previous year period. Aban Offshore has reported a consolidated total income from operations of Rs 1,018.49 crore and a net profit of Rs 148.75 crore for the quarter ended Sep ’14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 1,001.59 crore and net profit was Rs 77.68 crore. Aban Offshore shares has given 24.03% returns over the last 6 months and 151.10% over the last 12 months.

MP Ramachandran,CMD, Jyothy Laboratories Ltd.

JYOTHY LABS HAS CLEAN AND WHITE NUMBERS TO REPORT yothy Laboratories Ltd, the maker of Ujala liquid fabric whitener, reported an increase of 89.90% in net profit for the secondquarter. Net profit for the September quarter stood at Rs 25.13 crore compared with Rs13.24 crore in the year-ago period. Consolidated net sales rose 16.15% to Rs 367.66 crore from Rs 316.53 crore a year ago. Revenue of the soaps and detergent business, which includes brands like Ujala, Henko, Exo, Pril, Margo, Mr. White and Chek, was at Rs 274.53 crore in the second quarter compared with Rs 228.92 crore in the year-ago quarter, up by 19.9%. The home care business, which includes the mosquito repellent Maxo, incense sticks and Exo scrubber, saw revenue rise to Rs 79.70 crore in the September quarter from Rs 77.56 crore during the same period last year, up 2.8%. During the quarter, the company made additional payments towards compensation for retrenched employees at its Bhubaneswar and Chennai manufacturing units, which were closed down, the company said. “We have witnessed a strong traction across the new Henko launches. Our on-ground tie ups and better placement of the products is expected to capture the target markets. We foresee a further uptick in demand on account of word-of-mouth and an increased awareness of the product,” said MP Ramachandran, chairman and managing director, Jyothy Laboratories.

Dr. Archana Hingorani, CEO & ED, IL&FS Investment

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Sunder Ashok Genomal, page industries

JAIN IRRIGATION IS SLOWLY CLOSING THE TAP OF LOSSES icro-irrigation company Jain Irrigation Systems reported a consolidated loss of Rs 23.6 crore for the quarter ended September 2014 against a loss of Rs 80.7 crore in the same period last year. The company reported stand alone net loss of Rs 19.4 crore in the September 2014 period as against a loss of Rs 65 crore in the corresponding quarter in the previous year. Profit after tax (PAT) has been impacted negatively by Rs 8.1 crore due to higher charge of depreciation as per Companies Act 2013, a company statement said here. The company’s consolidated revenue for the quarter stood at Rs 1,293.6 crore, registering a growth of 3.4 per cent in the quarter, the statement said. Its consolidated revenue for half year ended September 2014 grew by 6.7 per cent at Rs 2,887 crore. The company’s overseas business has continued positive growth in current quarter at about 8.79 per cent, Jain Irrigation said. The board has approved spinning off its food processing business into a 100 per cent owned subsidiary. In the statement, Jain Irrigation Managing Director Anil Jain said, “Micro Irrigation (MIS) has done extremely well in the domestic market, despite this being lowest revenue quarter. We continuously focus on reduction of receivable levels further. With the stabilising of crude prices at lower band, busy season revenue mix, expected better capacity utilisation, second half is expected to be better than first half,” he said. The company maintained it’s medium term target of reaching a debt-equity level 1:1 by FY16 through various actions at the operational efficiency level and corporate level.

Bhavarlal Jain, Founder & Chairman, Jain Irrigation Seasonal Magazine 14

PAGE OR NOTHING? age Industries, the licensee of Jockey innerwear, delivered a mixed set of numbers for the September quarter. While sales growth was healthy, driven by strong volume growth, higher raw material costs and marketing spends impacted EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins. However, The scrip made a new 52-week high of Rs 10,380, as management commentary on growth and margins remained positive. Page now trades at rich valuations of 42 times the FY16 estimated earnings. During the quarter, sales grew 36 per cent over a year-on-year (y-o-y) basis to Rs 397 crore, fuelled by strong 21.1 per cent volume growth, which stood robust at 19.6 per cent for men’s innerwear (53 per cent of total sales), 22.9 per cent for women’s innerwear (including brassiere) and 27 per cent for leisure wear (29 per cent of total revenues). All segments reported 30 per cent plus revenue growth in the quarter. Higher input costs (up 230 basis points to 47.2 per cent of sales) and marketing spends led to a 410 basis points year-on-year contraction in EBITDA margin to 18.8 per cent. The cost of most inputs such as cotton, dyes, bleaching chemicals among others stood higher compared to the September 2013 quarter. Management indicated that raw material costs are 4-6 months old costs and the recent fall in prices should start showing March 2015 quarter onwards. A 22-fold jump in other income to Rs 7 crore on a y-o-y basis led to a 22 per cent growth in net profit to Rs 50 crore. The strong brand equity of Jockey, healthy earnings visibility and expansion of distribution network are Page’s key strengths. Consumers’ shift from unorganised to organised players as well as new product launches will aid top-line growth for the company. However, rising competitive intensity from MNC players such as Hanes, Fruit of the Loom, amongst others is a key risk. Another risk Page faces is availability of Jockey and Speedo products on e-commerce portals. Page is way ahead of its listed peers in terms of size and return ratios. Page operates in premium and mid-premium innerwear segment while Lovable Lingerie operates in economy and mid premium segment and is its closest listed peer.

V-GUARD SAFEGUARDS THE GROWTH MOMENTUM onsumer electrical and electronics company VGuard Industries has registered a 32 per cent increase in its net profit at Rs. 19.17 crore in Q2 against Rs. 14.48 crore in the corresponding period previous year. Net revenue from operations stood at Rs. 431.25 crore, a 29 per cent increase, over the corresponding period figure of Rs. 334.04 crore. According to Mithun K Chittilappily, Managing Director, the company maintained the growth momentum during the quarter due to the growth in top-line and bottom line, which was aided by a strong performance in non south and superior product mix. Besides, three new models of mixer grinder were introduced. The new model of water heater ‘Pebble’ launched nationally during the quarter has been well accepted, he said. The company is confident of achieving 20% growth in FY15, and won’t raise funds for immediate growth. Its flagship stabiliser, electric water heater inverter businesses is expected to take the growth story forward. Mithun expects to clock Rs 1,800 crore of revenue this financial year, a growth of 20 percent. V-Guard’s performance in Q1 and Q2 has been commendable, as the company’s strong quarters are usually in the second half of the fiscal.

DECEMBER 2014 LIC HOUSING’S FOCUS NOW IS ON LARGE RECOVERIES

Mithun Chittilappilly, MD, V-GUARD

Mithun Chittilappilly , MD, V-Guard

Sunita Sharma, MD & CEO, LIC HFL

IC Housing Finance Ltd’s earnings were slightly better than expected in the September quarter, helped by an improvement in its net interest margin (NIM) and higher disbursements. NIM improved to 2.23% in the three months ended 30 September from 2.19% in the June quarter as LIC Housing Finance recovered Rs.132 crore from one developer account and reduced reliance on bank borrowing. “We are borrowing more through the nonconvertible debentures route to reduce the cost of funds,” said Sunita Sharma, chief executive officer of LIC Housing Finance. Gross non-performing assets (NPAs) improved to 0.63% of the loan book compared with 0.8% at the end of the June quarter, mainly aided by recovery in the developer account which led to an interest reversal. The management said it was looking at recovering three stressed developer loans worth Rs.252 crore by the end of this fiscal year, which should help in reducing NPAs. The gross bad loans in the individual loan segment also fell slightly to 0.38% in the three months ended September. On the operating front, net interest income grew 17% from a year ago, at Rs.532 crore compared with 11% growth in the previous quarter. Loan disbursements were up 21% in the September quarter from 17% growth in the June quarter, aided by expansion in distribution, coupled with upbeat sentiment in the economy. The developer loan portfolio, which makes up less than 3% of the loan book, declined over 4% in the September quarter because of caution in growing this segment. The individual loan portfolio grew 18% compared with a year ago. Advertisement expenses more than tripled due to higher spending on marketing as the company finished its silver jubilee. Commission and brokerage expenses increased 23% from a year ago, helped by higher commission from loans against property (LAP). LIC Housing Finance is trying to build its risky LAP portfolio because of margin advantage of over 200 basis points. Overall, net profit increased 10% to Rs.341 crore after providing for deferred tax liability. LIC Housing Finance shares have rallied 129%, outperforming the indices. The management is expecting loan growth of 20% and margins at 2.35% at the end of this fiscal year.

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mithun chittilappilly v guard

RESULTS SOBHA STAYS SHINING IN GROWTH obha Ltd has posted 5.12 per cent growth in its consolidated profits to Rs. 59.5 crore for second quarter of 2014-15 compared with Rs. 56.6 crore recorded in the same period last year. The company’s total income has gone up 23.98 per cent to Rs. 669.5 crore as against Rs. 540 crore in the same period last year. EPS for Q2 stood at Rs. 6.07 compared with Rs. 5.77 last year. Commenting on the company’s performance, J.C. Sharma, Vice Chairman and Managing Director, Sobha Limited, said, “We have a healthy pipeline of about 15 million square feet of new project launches planned in the next few quarters in our existing geographies. In the last 20 years, we have completed and delivered 95 real estate and 253 contractual projects totalling 65.83 million square feet of area. We are probably the only player in the real estate arena to deliver international quality projects to this size and scale. In addition to this, we have about 50 ongoing residential projects aggregating to 31.14 million square feet of developable area and 23.96 million square feet of saleable area. On the contractual front, we have 31 ongoing projects covering 9.35 million square feet under various stages of construction. This is a mere indication of our delivery capabilities and we are hopeful that we will continue to cater to the emerging needs of the realty industry.”

WONDERLA CONTINUING THE AMAZING RIDE FOR INVESTORS

onderla Holidays reported a 46 per cent rise in net profit at Rs 6.4 crore for the quarter ended September 2014. The Kochi-based theme park promoted by Kerala based Chittilappilly family had posted a net profit of Rs 4.41 crore for the corresponding quarter a year ago. The revenue of the company, which runs two theme parks in Kochi and Bangalore, jumped 34 per cent to Rs 37.14 crore from Rs 27.62 crore in the same period last year. Wonderla Holidays managing director Arun K Chittilappilly attributed the good set of numbers to a rise in footfalls, which grew by 10 per cent, and an increase in margins, which stood at around 55 per cent during the quarter. The rise in margins and footfalls was due to festive season and the company said it expects domestic tourism to expand this year because of Central government promoting tourism. Wonderla Holidays went public in April with a Rs 180-crore initial public offering, which was oversubscribed 38 times the issue size and gained 32 per cent on debut. The Chittilappilly family who is the promoter, still owns 71 per cent in the company, which is building its third theme park in Hyderabad. The company is not looking at raising further funds, as the IPO proceeds are enough to complete the Hyderabad project. The company is nearly debt free, with only less than Rs 50 crore in bank loans. The revenue from the two amusement parks in Bangalore and Kochi rose to Rs 35.1 crore, while its resort division reported good performance with an occupancy rate of 44 per cent, which is an increase of 144 per cent compared to the year ago.

Ravi Menon, Sobha Developers

FORCE MOTORS PRESSES THE SALES ACCELERATOR orce Motors Ltd has reported financial results for the period ended September. The company has reported net sales of Rs.598.84 crores during the period ended September 2014 as compared to Rs.471.75 crores during the period ended September 2013. Force has posted net profit of Rs.25.69 crores for the period ended September 2014 as against Rs.26.93 crores for the corresponding year-ago period. The maker of ’Traveller’ brand of vans has reported EPS of Rs.19.50 for the period ended September 2014 as compared to the corresponding year-ago period. The company has reported net sales of Rs.1143.86 crores during the 6 months period ended September 2014 as compared to Rs.976.07 crores during the corresponding year-ago period of 6 months. The company has posted a net profit of Rs.45.08 crores for the 6 months period ended September 2014 as against Rs.41.20 crores for the corresponding year-ago period of 6 months. The company has reported EPS of Rs.34.22 for the 6 months period ended September 2014 as compared to Rs.31.27 for the corresponding year-ago period of 6 months..

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Arun K Chittilappilly, MD, Wonderla Holidays Ltd

DECEMBER 2014 TECH MAHINDRA SHOWS IMPRESSIVE RISE oftware services firm Tech Mahindra has reported a 14.1 percent sequential growth in second quarter net profit at Rs 720 crore on strong operational performance but was impacted by forex loss. Profit in the previous quarter was Rs 630.7 crore. Consolidated total income from operations grew by 7.2 percent to Rs 5,488 crore in the quarter ended September 2014 compared to Rs 5,122 crore in June quarter while dollar revenue climbed 5.2 percent quarter-on-quarter to USD 900 million in the quarter gone by. "Robust growth in key verticals underpins our belief in strategy of continuous investment in capabilities. We are also heartened by the growth in larger customers which demonstrates their trust and faith in our partnership," said Vineet Nayyar, executive vice chairman. Revenue from American territory grew by 9.7 percent (as against 8.27 percent growth in Q1) and Europe reported a 5.24 percent growth in revenue as against 3.66 percent while revenue from the rest of the world declined 4.3 percent as against a 5 percent fall in Q1. Tech Mahindra also beat on operational front. Consolidated earnings before interest and tax (EBIT) jumped 22.56 percent sequentially to Rs 955 crore and margin expanded by 220 basis points to 17.4 percent as against estimated growth of 18.3 percent and 190 basis points, respectively. The company reported a forex loss of Rs 45.8 crore during the quarter as against gain of Rs 12 crore in the previous quarter. Active clients in September quarter stood at 649, increased from 632 in previous quarter. Tech Mahindra's USD 50 million+ clients increased to 12 from 11 and USD 5 million+ clients jumped to 86 from 80 on sequential basis. Tech Mahindra said cash & cash equivalents stood at Rs 3,434 crore at the end of September quarter.

MANAPPURAM BACK ON THE GOLDEN TRACK OF GROWTH

ndiaâ&#x20AC;&#x2122;s first listed gold loan player Manappuram Finance has declared a 9.6 % increase in net profit on a yearon-year basis for the second quarter of this fiscal. Net profit for this fiscal stood at Rs. 76.43 crores, compared to Rs. 69.71 crore in the corresponding quarter of the last fiscal. Sequentially, the net profit has registered an increase of 74 %; Q1 net profit being Rs. 43.98 crore. The company has signed a non-binding term sheet to acquire a majority equity shareholding in Asirvad Microfinance, an RBI-registered NBFCMFI operating in Tamil Nadu, Kerala, Odisha, and Gujarat. Assets under Management (AUM) for Q2 of the this fiscal was Rs. 8,530.9 crore, a of 3.9% increase sequentially. Aggregate gold loans disbursed during the quarter were Rs. 5835 crore. The company added 2.43 lakh new customers during the quarter, taking the number of customers to 16.06 lakh. V.P. Nandakumar, MD & CEO, Manappuram Finance

MAHINDRA LIFESPACE DEVELOPS A BETTER BOTTOMLINE

ahindra group's realty firm Mahindra Lifespace Developers reported a 21 percent increase in consolidated net profit at Rs 23.47 crore for the second quarter ended September. Its net profit stood at Rs 19.38 crore in the year-ago period. Total income, however, fell to Rs 193 crore in the second quarter of this fiscal from Rs 208 crore in the corresponding period of the previous year, Mahindra Lifespace said. â&#x20AC;&#x153;Growth through better execution and increased profitability due to lower interest cost have been the key highlights of this quarter," company's CFO Jayantt Manmadkar said.

C. P. Gurnani, MD, Tech Mahindra 17 Seasonal Magazine

RESULTS

GIC HOUSING IS FINANCING MORE AND MORE HOMES

IC Housing Finance reported a rise in standalone net profit for the quarter ended September 2014. During the quarter, the profit of the company rose 4.53% to Rs 258.30 million from Rs 247.10 million in the same quarter previous year. Net sales for the quarter rose 15.67% to Rs 1,786.90 million, compared with Rs 1,545 million for the prior year period. Earnings per share for the quarter stood at Rs 4.80, registering 4.58% growth over previous year period.

Ramesh Poddar, CMD, Siyaram Silk Mills

SIYARAM TURNS FASHIONABLE ON DALAL STREET

iyaram Silk Mills has reported a standalone total income from operations of Rs 397.96 crore and a net profit of Rs 22.03 crore for the quarter ended Sep '14. Other income for the quarter was Rs 3.47 crore. For the quarter ended Sep 2013 the standalone total income from operations was Rs 338.48 crore and net profit was Rs 18.51 crore, and other income Rs 0.51 crore. Siyaram Silk shares has given 167.28% returns over the last 6 months and 238.74% over the last 12 months.

KITEX GARMENTS STITCHES UP A PERFECT QUARTER itex Garments has reported financial results for the period ended September 30, 2014. The infant wear maker has reported net sales of Rs.128.20 crores during the period ended September 2014 as compared to Rs.100.08 crores during the period ended September 2013. The Kochi based exporter has posted net profit of Rs.19.32 crores for the period ended September 30, 2014 as against Rs.11.98 crores for the corresponding year-ago period. The company has reported EPS of Rs.4.07 for the period ended September 30, 2014 as compared to Rs.2.52 for the corresponding yearago period. Kitex has reported net sales of Rs.230.96 crores during the 6 months period ended September 2014 as compared to Rs.200.57 crores during the 6 months period ended September 2013. The company has posted net profit of Rs.33.75 crores for the 6 months period ended September 2014 as against Rs. 24.96 crore for the corresponding yearago period. Kitex Garments that supplies to top American & European brands has reported EPS of Rs.7.11 for the 6 months period ended September 30, 2014 as compared to Rs.5.26 corresponding year-ago period.

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Warendra Sinha - MD & CEO, GIC Housing Finance Ltd.

Sabu M Jacob - CMD, Kitex Garments

DECEMBER 2014 MCX STARTS BENEFITING FROM THE NSEL CRISIS

PUNJAB & SIND BANK RETURNS TO SAFE SHORES ublic sector lender Punjab and Sind Bankâ&#x20AC;&#x2122;s net profit spiked 2.6 times year-on-year to Rs 112.2 crore in July-September quarter supported by sharp fall in provisions and higher other income & net interest income. Profit was Rs 43 crore in same quarter last year. Net interest income grew by 13.9 percent to Rs 461.1 crore in the second quarter of current financial year 2014-15 from Rs 404.8 crore in corresponding quarter of last fiscal. Other income during the same period climbed 31 percent to Rs 97 crore from Rs 74 crore. Provisions and contingencies fell 48.2 percent on yearly basis (down 40.6 percent sequentially) to Rs 97 crore in the quarter gone by, with provision coverage ratio at 44.46 percent as on September 2014. Asset quality was stable on sequential basis. Gross nonperforming assets (NPA) jumped 96 basis points Y-oY (down 14 bps) to 5.08 percent and net NPA rose 94 bps year-on-year (up 5 bps Q-o-Q) to 3.92 percent during July-September quarter.

P K Singhal joint MD, MCX

CX, India's largest commodity exchange, reported about a 9 per cent increase in net profit at Rs 29.37 crore for the second quarter ended September. The company had clocked a net profit of Rs 27.04 crore for the corresponding period a year ago. Total income from operations declined sharply to Rs 54.82 crore from Rs 88.02 crore in the year-ago period, the company said. Despite the fall in income, the company reported the increase in its net profit on back of a fall in total expenses to Rs 43.22 crore against Rs 77.19 crore in the year-ago period, mainly due to a re-negotiation of the tech contract with former promoter Financial Technologies. During the quarter, on August 27, the original promoters Financial Technologies India Ltd (FTIL) exited the exchange by selling their residual 5 per cent stake for over Rs 200 crore. In July, Jignesh Shah-led FTIL, the erstwhile promoter of MCX, had announced sale of its 15 per cent stake in MCX to Kotak Mahindra Bank for Rs 459 crore. FTIL originally held a 26 per cent stake in MCX. It has divested stake in MCX after the Forward Markets Commission (FMC) had declared the company unfit to run any exchange in the wake of a Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL). The regulator had asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent. Before the Kotak deal, FTIL had sold a 6 per cent stake in MCX, including about 2 per cent to billionaire investor Rakesh Jhunjhunwala, in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent.

GEOJIT BNP PARIBAS BROKERS A GREEN DEAL FOR INVESTORS eojit BNP Paribas Financial Services has turned profitable in the quarter ended September 2014. Consolidated net profit stood at Rs 20 crore as against loss of Rs 94.2 crore in same quarter last year. Consolidated net sales jumped 58 percent to Rs 70.3 crore versus Rs 44.4 crore year-on-year. The company had made provision of Rs 128 crore in Q2FY14 due to the NSEL crisis. The Geojit stock is up by a maximum of 184% in the year-to-date.

C. J. George, MD, Geojit 19 Seasonal Magazine

RESULTS MAYUR UNIQUOTERS’ TEXTURES ATTRACT STREET’S ATTENTION ayur Uniquoters has recorded 26 percent jump in its September quarter net profit at Rs 15.6 crore against Rs 12.5 crore in the year-ago period. The company’s net sales were up 11 percent to Rs 128.2 crore versus Rs 115.2 crore, Y-o-Y. Mayur Uniquoters stock has given 209% returns over the last 12 months.

Mr. Poddar,CMD, Mayur Uniquoters Limited

AVANTI FEEDS MAKES INVESTORS HEALTHY

STRIDES ARCOLAB SETS AN EXAMPLE IN DIVIDEND PAYOUTS engaluru-headquartered Strides Arcolab has posted a 60% growth in EBITDA at Rs 62.8 crore during the second quarter of the financial year 2015. The company said it was aided by a growth in the emerging markets and the launch of niche products in the US and Europe. The company recorded consolidated adjusted net profit of Rs 507 crore, while saying there's no comparable figure available for the corresponding quarter last year. This is because, the results for the quarter included a one-time gain of Rs 397.48 crore towards dividend income from non-current investment in wholly-owned subsidiaries. the company's Singapore unit Strides Pharma Asia Pte Ltd, Singapore received $150 million from Mylan Inc as the full and final settlement against the contingent holdback of upto $250 million. Strides paid its investors Rs. 105 as additional special dividend from this settlement, apart from the Rs. 500 it had paid earlier as special dividend in December, and the Rs. 5 as regular dividend paid in September. The total revenues were up 19% at Rs 292.90 core from Rs 245.70 crore in the corresponding quarter a year ago. Commenting on the results, Arun Kumar, Founder and Group CEO, stated: "We continue to see positive results on our calibrated approach to product selection and margin maximisation across our businesses. With our recentlycommissioned R&D infrastructure for both the pharma and biotech business, we will achieve a momentum of products filing in the near term. Additionally our announced merger with Shasun, on completion, will accelerate our growth & strategy."

vanti Feeds reported a robust 84% year-on-year jump in standalone net profit at Rs 34.18 crore for the quarter ended September 2014 on back of strong operational income. The company which is engaged in feed products business had profit of Rs 18.58 crore in the same quarter year ago. Total income from operations for the quarter grew 74% to Rs 532 crore against Rs 305 crore in the corresponding quarter of previous fiscal. Operating profit jumped 78% yoy to Rs 53.91 crore, while margins remained unchanged at around 10%. Meanwhile, for the first half (April-September 2014) of the current financial year 2014-15, the company reported net profit of Rs 60 crore against Rs 33 crore in the same period last fiscal. It had profit of Rs 70 crore during the entire previous financial year 2013-14. Avanti Feeds is the leading manufacturer of prawn and fish feeds as well as one of the largest shrimp processor and exporter from India.

Arun Kumar, Group CEO, Strides Arcolab Limited Seasonal Magazine 20

DECEMBER 2014 SINTEX IS TURNING AROUND SLOWLY BUT SURELY MAHABANK SHOWS MAHA TURNAROUND ank of Maharashtra’s net profit in the second quarter ended September more than trebled to Rs 162.91 crore on rise in other income and drop in bad loans provisioning. The Pune-based state lender’s net profit in the corresponding July-September quarter of the previous fiscal stood at Rs 46.85 crore. Total income in Q2-FY15 rose to Rs 3,419.56 crore from Rs 3,196.56 crore earned in the same quarter of FY14, the bank said. The bank’s income from other sources rose to Rs 222.04 crore during the quarter, from Rs 183.07 crore in the year ago period. Income from wholesale and corporate banking operations increased to Rs 1,635 crore from Rs 1,567.56 crore a year ago. Also, the provisions made towards bad assets were trimmed to Rs 293.41 crore in the second quarter of current fiscal, from Rs 323.23 crore year ago. On the asset front, bank’s gross non-performing assets (NPAs) or bad loans were 4.83 percent of the total advances as of September 2014, from 2.77 percent a year ago. Net NPAs stood at 3.29 percent Q2-FY15, up from 1.76 percent in Q2-FY14.

SICAL SOARS ON LOGISTICS RALLY ical Logistics, a Coffee Day Group company, has reported a consolidated total income from operations of Rs 205.97 crore and a net loss of Rs 0.65 crore for the quarter ended Sep '14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 215.82 crore and net loss was Rs 1.28 crore. Sical Logistics shares has given 274% returns over the last 12 months.

Dinesh B Patel, Chairman, Sintex Industries Ltd

Sintex’s Q2FY15 is a reflection of strong growth and a drastic improvement in business sentiment. Sintex’s customised moldings business caters to Fortune 500 customers across continents and various sectors. It intends to leverage these customers and potentially enhance domestic manufacturing and outsourcing. This will significantly improve margin in the business over the next couple of years. The initiatives on clean India campaign have thrown open new set of opportunities to SIL. Despite economic adversities across the globe, SIL grew its topline by about 21 percent in H1FY15 and strengthened its balance sheet. This was achieved through a disciplined approach in streamlining business systems and processes to maximise efficiencies and a continued focus on improving the business mix. Now, Sintex is perfectly poised to accelerate profitable business growth going forward with a hawk eye on maintaining a lean balance sheet. Sintex has 36 manufacturing plants in India and abroad. It is presenting textiles, SMC molded products, structured dyed yarn, prefab structures, and monolithic. Sintex is today a diversified MNC with operations in 13 manufacturing locations and 12 nations across four continents. At the current market price of Rs 81, the share is trading at a P/E of 8.0x on FY15E and 6.0x on FY16E. During Q2FY15, Sintex’s net profit rose 47% to Rs 107.4 crore on 23% higher revenue of Rs 1680 crore. Q2FY15 EPS stands at Rs 3.0. OPM and NPM stood at 17.1% and 6.4% against 15.5% and 5.3% respectively in Q2FY14. During H1FY15, net profit rose 42.7% to Rs 167.4 crore on 21% higher revenue of Rs 3025 crore. H1FY14 EPS stands at Rs 4.8.

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