Month: June 2008

McNally Bharat’s 4Q FY08 sales rose 20.3% yoy, to Rs2.06bn, 18.9%. Sales were under pressure due to some execution delays and to the proportionately greater share in the order book of sectors like steel, where the average execution cycle is longer.

The EBITDA was Rs174m, vaulting 221.5% yoy. The EBITDA margin expanded 528bps yoy, to 8.4%, against the expected 365-bp expansion. The margin expansion mainly stemmed from the lower base and the non-materialization of the anticipated (when bidding) cost pressures. The bottom line for the year grew 47.7% yoy, to Rs96m. The higher EBITDA margin and lower interest chiefly led to the robust bottom line even as the top line came under pressure.

The company is expected to post a 22% topline growth over FY 2010.

Godawari Power and Ispat Ltd (GPIL) in Q4 FY08 reported revenue of Rs2.6bn, a growth of 139.0% yoy on account on a rise in production and improved realization. On qoq basis, it registered a 21.1% growth on the back of lower ferro manganese and sponge iron sales. Sponge iron, billets and ferro manganese realizations on qoq basis rose 13.2%, 11.7% and 13.2% respectively.

For the full year, standalone revenue for the company registered a growth of 87.6%yoy to Rs8.3bn. The growth in revenue was account of a rise in production of sponge iron and billets. GPIL increased its sponge iron capacity to 0.5mtpa from 0.2mtpa, billet making to 0.4mtpa from 0.25mtpa and wire rod facility to 120,000tpa from 41,600tpa during the year. The new capacities are expected to show results from FY09.

OPM in Q4 FY08 expanded by 100bps to 18.6% from 17.6% witnessed in the same period last year. The company witnessed a bottomline growth of 139.9% yoy to Rs288.3mn in Q4FY08 from last year’s Rs120.2mn. Capacity additions of the sponge iron and billet making capacity has been completely ooperatinla during the quarter and will lead to robust volume growth for the company.

Equity Research has detailed coverage on the Godawari Power and Ispat.

The last date to file first installment of Advanced Tax for FY2009, was June-15th. We have obtained Advance Tax figures for SENSEX heavy weights.

• SAIL paid an Advanced Tax of Rs 457 crore against Rs 454 crore year ago
• ICICI Bank has paid Rs 340 crore Vs Rs 250 crore a year ago
• SBI has paid Rs 663 crore Vs Rs 503 crore a year ago
• IDBI Bank has paid mere Rs 10 crore Vs Rs 7 crore a year ago
• Reliance Industries paid Rs 340 cr Vs 295 cr a year ago
• Bajaj Auto paid Rs 50 cr Vs Rs 60 cr a year ago
• HDFC’s Advance Tax shot up by 40% to Rs 140 cr Vs Rs 95 cr
• Tata Motors paid Rs 30 cr and Ambuja Cement Rs 100 cr

Keep checking we will update as more corporates file their advance tax numbers with us 🙂

So far their is no dip showing any signs of potential slowdown. However, what’s bothering investors is how will the government tackle likely double digit inflation ?

The Indian government announced the much anticipated iron ore export tax of 15%, putting an end to a long period of uncertainty on this front. This was due for long time to contain inflation. We continue to hold a constructive view on iron ore sector fundamentals, and would view any weakness in stock price on the back of this news or due to weakness in Chinese iron ore spot prices as a buying opportunity.

Sesa Goa was trading down by 2% at Rs 3,660 compared to its cum-bonus high of Rs 4,320 in the first week of May-08.

State Bank of India (SBI) today deferred a decision on raising interest rates and said it will prefer to wait for one to two weeks before taking a call on the issue. SBI Chairman O P Bhatt said in Hyderabad,

We will wait and watch and take a little time. We want to examine whether we can absorb the repo rate hike. I think we can afford to wait for a week or two. We will deliberate, get the data and then we will look at our strategies.

However, Private Sector bank, Yes Bank has announced a 0.5% hike in PLR. It has also raised interest rates on Fixed Deposits.