Cipla hammered on Poor Q4 Show

Cipla reported 34% fall in net profit in Q4 March 2007 at Rs 126 crore from Rs 191 crore mainly due to a sharp decline in active pharmaceutical ingredients (APIs) exports and rising material costs. The company’s performance in the same quarter last year was exceptionally good because of strong sales in Western markets.

Net sales for the quarter were up 6.3% to Rs 938.5 crore, on the back of a 14.4% growth in domestic revenues to Rs 399.7 crore. Exports were flat at Rs 529.3 crore in the quarter ended 31 March 2007, from Rs 526.6 crore in the last year’s corresponding quarter. A change in product mix also contributed to the decrease in profitability.

Cipla today reported a 8% increase in net profit at Rs 660.82 crore for the year ended 31 March 2007, as compared to Rs 607.64 crore in FY 2006. Net sales were up at Rs 3572.1 crore compared to Rs 2985.9 crore in the year ended 31 March 2006.

Cipla expects its exports business to show modest growth in the next two quarters, on account of ever-rising pricing pressure in the US.

Mahindra Gesco Tanks on Poor Show

Mahindra Gesco Developers reported a net loss of Rs 1.52 crore for the fourth quarter ended March 2007 compared to a net profit of Rs 3.86 crore in the fourth quarter ended March 2006. Its net sales slipped to Rs 34 crore from Rs 42.4 crore in the previous year.

The stock had a pre-results’ rally. From Rs 594.30 on 19 April 2007, it shot up to Rs 675.50 by 25 April 2007, anticipating a strong set of results from the company. It is now quoting at Rs 615.

Mahindra Gesco is one of the larger players in the organised sector for property development and consulting. It plans to expand activities to all major cities in the country. Does this indicate a consolidation in Indian Real Estate ?

Tata Tea boils on buzz of Coke’s interest in Glaceau

Tata Tea had bought 30% stake in Glaceau for $677 million in August 2006. Tata Tea had valued Glaceau at $2.2 billion.

Quoting sources, Beverage Digest said negotiations are going on and that some points of the deal still needed resolving. The newsletter also said sources suggested that Coke may want to announce the deal when its North American bottlers meet in Atlanta next month, or right before. The valuation of Glaceau is rumoured at $3 billion, up from a mere $2.2 billion just 8 months ago.

Coke is now focusing on non-carbonated beverages.

Ranbaxy Labs gets US FDA Nod

Ranbaxy said it has been granted a 180-day market exclusivity in the US for the 80-mg dosage of the drug pravastatin sodium tablets, which is used to treat cardiac diseases. The 80-mg tablet had annual sales of $209 million, while the market for all dosages of the drug was $1.19 billion a year, Ranbaxy said in a statement.

Pravastatin is the generic version of Bristol-Myers Squibb’s cholesterol-fighter Pravachol.

As per recent reports, Ranbaxy Laboratories is investing more than $20 million (over Rs 83 crore) in its Romanian subsidiary, Terapia Ranbaxy. The move is a part of the company’s strategy to make the subsidiary its hub for Europe and Commonwealth of Independent States (CIS)’ countries. Terapia SA, an 86-year-old company, was acquired by Ranbaxy for $324 million (Rs 1,347 crore) in June 2006.

HDFC Bank 2007 Results

HDFC Bank posted a net profit of Rs 343.57 crore in the quarter ended 31 March 2007, as against Rs 263.21 crore for the March 2006 quarter. Total Income increased to Rs 2384.19 crore compared with Rs 1682.65 crore in the March 2006 quarter.

The results were declared after trading hours on Tuesday (24 April 2007). The private sector bank also recommended a dividend of Rs 7 per share for the year ended 31 March 2007.

In late-December 2006, HDFC Bank raised the benchmark prime lending rate (BPLR) by a steep 150 basis points. The bank also increased its deposit rates by 50-75 basis points, following a similar increase in June 2006. But only a small proportion of HDFC Bank’s loans are linked to the PLR. This is because most of the bank’s retail and corporate lending is done at fixed rates, and is not directly linked to the BPLR.

Reliance Capital growth Slows Down

Compared to what leading Indian Financial Institutions like UTI Bank have reported their results, Reliance Capital is growing at a slower pace. Reliance Capital reported a profit growth of RS 311 crore an increase of mere 9% compared to the same quarter a year ago which was at 285.59.

On a consolidated basis, Reliance Capital’s net profit rose 23% to Rs 703 crore and total income more-than-doubled to Rs 2158 crore during the fiscal, a 128% increase from Rs 947 crore of the previous year.

Reliance Asset Management recorded a net profit of Rs 49 crore, a 63% increase during the year. The number of investors in Reliance Mutual Fund (RMF) increased to 32.27 lakh from 20.95 lakh a year ago.

Reliance Life Insurance had a premium income of Rs 1005 crore from Rs 224 crore in the previous year, representing a jump of 348% .

Reliance General Insurance had a premium income of Rs 912 crore from Rs 163 crore in the previous year, representing an increase of 462%.