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Financial results: SBI dips, Godrej Soaps flies, Ranbaxy grows, ONGC slips

SBI

SBI’s net profit for the fiRs t quarter of 1999-2000 dipped to Rs 3.48 billion compared to Rs 4.27 billion last year. Its total income rose to Rs 59.12 billion as against Rs 49.8 billion the previous year.

Godrej Soaps

Despite a one per cent rise in sales, Godrej Soaps recorded a 400 per cent growth in net profit, thanks to serious cost-cutting measures. Sales were up by Rs 2 million from last year's Rs 1.91 billion to Rs 1.93 billion while profit jumped by Rs 42 million from Rs 10 million last year to Rs 52 million.

Ranbaxy Laboratories

Ranbaxy net profit grew by 16.3 per cent year on year (or YOY) from Rs 367 million last year to Rs 427 million in the second quarter. Turnover during the period jumped 24.4 per cent (YOY) from Rs 2.97 billion in Rs 3.69 billion.

Domestic sales have recorded sales growth of 17.1 per cent (YOY) while exports grew by 34.1 per cent. R&D expenditure is up by 18.7 per cent.

Domestic sales of formulations grew by 20 per cent. Export performance during the period has been excellent. Sales revenue from South Asian market improved by 45 per cent. China has also been a strong growth market. Ranbaxy’s performance in the key markets of the United Kingdom and the United States of America is in line with expectations. The generics business in the US grew above 50 per cent in the first half of the year. Other export markets namely Egypt, West Africa, Vietnam and Poland have produced satisfactory results. The company plans to expand its global operations to Latin America in the near future.

ONGC

Net profit of ONGC, India’s national oil exploration company slipped 10.33 per cent to Rs 6.05 billion against last years Rs 6.74 billion despite a 4.73 per cent increase in sales from Rs 34.87 billion last year to Rs 36.52 billion. The fall in profit was due to increase in depreciation from Rs 6.95 billion to Rs 8.20 billion, an increase of Rs 1.25 billion or 18 per cent

L&T

L&T’s net profit during the first quarter of 1999-2000 grew by 10 per cent (YOY) to touch Rs 793 million, led by an 8 per cent (YOY) growth in turnover at Rs 15.92 billion. The interest costs increased by 134 per cent (YOY) at Rs 837 million, as the company has ceased to capitalise interest on its cement projects (Gujarat II and Tadipatri), which were under commissioning for a large part of the last year.

Despite the significant jump in interest costs, the company has been able to show growth in its net profits because of a sharp jump in its operating margins from 11.2 per cent to 14 per cent. The increase, in our opinion, is mainly led by the company’s cost-cutting efforts and high volumes in the cement division.

The EPC segment of the business is currently suffering from a low-order book position. However, the outlook may improve if L&T bags the fertiliser expansion projects of Kribhco, tenders for which have been recently floated. The E&C segment continues to perform well on the back of urban infrastructure and transportation project orders received in 1999.

Zee Telefilms

Zee Telefilms Limited posted a 41 per cent increase in net profit to Rs 169.5 million for the first quarter of 1999-2000 as against Rs 120.1 million the previous year. Advertisements booked by the company increased by 24.3 per cent to Rs 10.05 billion. The merger of Zee Multimedia Worldwide with ZTL will increase the company`s equity substantially. Stock-split option is also being considered for which legal opinion will be sought.

MRF

MRF has registered a 25.69 per cent drop in its net profit to Rs 220.3 million for the third quarter ending June 30, 1999. In the same period last year, the net profit stood at Rs 297 million. However, sales went up by 3.6 per cent to 5.77 billion versus Rs 5.58 billion the last year. The fall in the net profit is due to increase rubber prices and struggle in the auto industry.

BSES Ltd

BSES Ltd`s first quarter net for 1999-2000 rose by 11.5 per cent to Rs 880 million compared to Rs 790 million the previous year. Sale of electrical energy increased marginally to Rs 4.7 billion compared to Rs 4.63 billion the last year.

Meanwhile, Reliance Industries has increased its stake in the company to 11.6 per cent against last year`s seven per cent. Financial institutions including mutual funds hold 39 per cent in the company whose equity capital is at Rs 1.38 billion.

BSES` 495 mega-watt Palghar project has got the nod from the government and a better site at Saphale is under finalisation.

Marico Industries

Marico Industries Limited, branded coconut oil major, posted a 25 per cent fall in net profit to Rs 60 million for the first quarter of 1999-2000 as against Rs 80 million the last year. Sales witnessed a rise of 24 per cent to Rs 1.35 billion as against Rs 1.09 billion the previous year. The company is considering claiming of Rs 21 million on account of fire that affected two of its depots.

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