BPCL 4th quarter net profit at Rs 58 crore, declares 40% dividend

Bharat Petroleum Corporation Limited (BPCL) has announced a net profit of Rs 58.40 crore for the fourth quarter ended March 31, as against a net profit of Rs 670 crore in the year-ago period. BPCL’s total income went up to Rs 32,712.90 crore in the latest quarter, from Rs 24,400.50 crore in the corresponding period last quarter.

The BPCL board has declared a dividend of 40 percent, at the rate of Rs four on shares of face value of Rs 10, for 2007-8. For the year ended March 31, the group announced a consolidated net profit of Rs 1,769.60 crore, a 17.51 percent decline over the year-ago period. The company had a net profit of Rs 2,145.20 crore in FY 07.

The company’s total income rose to Rs 112,410.40 crore in FY 08, from Rs 99,107.80 crore in the previous fiscal. BPCL reported a standalone net profit of Rs 1,580.60 crore in FY 08, down 12.46 percent over the year-ago period.

The company had a net profit of Rs 1,805.50 crore in the year-ago period. The total income rose to Rs 111,786.20 crore in FY'08, from Rs 98,312.70 crore in the previous fiscal.

M&M Q4 profit down by 6.4pc

Mahindra & Mahindra (M&M) has announced a 6.4% drop in the company’s fourth-quarter profit, attributed to rising input costs, especially of steel and aluminium. In fact, the company expects a further rise in input costs this year, of up to 12%.

‘Volatility in steel prices and rise in the prices of crude is a concern for the industry. We will have to monitor how the cost will change and what way it can be passed to consumers on a regular basis,’ said Bharat Doshi, executive director (finance and corporate affairs), M&M.

During Q4 of the current fiscal, M&M’s profit went down to Rs 221 crore, while the figure was Rs 236 crore for the same period last year. Net sales for Q4 in FY08 grew by 15.5 percent, to Rs 3,148 crore. The company saw a 44.48 percent growth in sales of its utility vehicles in April, with 17,679 vehicles being sold. The company also increased its market share in the utility vehicle segment from 46.6 percent to 51.5 per cent during the quarter.

For FY08, the company reported a net profit of Rs 1,103 crore, a rise of 3.3 percent over the corresponding period last year. Net sales for the year grew by 14.7 percent to Rs 11,503 crore. M&M’s operating margin for the period dropped from 12.5 percent to 11.6 percent.

In the farm equipment segment, the company sold 90,509 tractors in 2007-08, a drop of 4.7 percent against the previous year. However, it maintained its market share of 29.9 percent.

M&M's consolidated net profit for the current fiscal rose 4.9 percent to Rs 1,571.12 crore, while consolidated net sales for the company grew by 35 percent to Rs 23,774.79 crore, as income from subsidiaries grew in the period. M&M has earmarked a capital expenditure of Rs 2,000 crore for FY09, which it plans to fund through internal accruals.

IOC reports loss of Rs 414cr in Q4, will start rationing fuel supplies

Unless the government takes prompt action, the situation could quickly get very, very bad for IOC and other state-owned oil PSUs in the country

After reporting profits for the last 10 quarters, Indian Oil Corporation (IOC), the largest oil company in the country, with more than 55 percent market share, reported a net loss of Rs 414.27 crore for the fourth quarter of 2007-08. This is in stark contrast to Rs 1,502.69 crore profit which the company posted during the fourth quarter of the last fiscal.

For 2007-08, the company posted a net profit of Rs 6,962.58 crore as against Rs 7,499.47 crore in 2006-07. IOC also announced a dividend of 55 percent for 2007-08, down from 130 percent last year. The total dividend pay out for the year will be Rs 655.81 crore, while the amount was Rs 1,550 crore last year.

IOC’s gross turnover during the fourth quarter of the current fiscal stood at Rs 70,256.85 crore, up from Rs 55,166.46 crore in the same period last year. Total income from operations was Rs 64,343.59 crore, up from Rs 49,817.82 crore last year.

For the 2007-08 fiscal, IOC’s gross turnover stood at Rs 247,479.39 crore, an increase over last year’s figure of Rs 220,779.36 crore. Total income from operations was Rs 225,972.05 crore as against Rs 200,923.09 crore last fiscal. Profit before tax for the year was Rs 10,080.40 crore as against Rs 10,485.00 crore in the previous year. The company’s earning per share stood at Rs 58.39 this fiscal, as against Rs 62.90 in 2006-07.

In what could have serious implications for the company in the months to come, the total under-realisation during the year reached Rs 9,773.76 crore, as against Rs 2,190.40 crore in 2006-07. IOC is losing Rs 320 crore a day on the sale of petro-products. The company has already stopped diesel imports, and will go slow on new LPG connections.

To cut revenue losses, IOC will start rationing fuel supplies. ‘We have decided to restrict supplies of auto fuels to whatever is domestically available. In fact, we are already doing it,’ said Sarthak Behuria, IOC chairman. While the Indian government dithers on raising fuel prices, IOC is losing Rs 16.34 on every litre of petrol it sells, Rs 23.49 on every litre of diesel, Rs 28.72 on every litre of kerosene, and Rs 305.9 per cylinder of domestic LPG.

Behuria said that in order to meet demand, IOC would need to import two million tonnes of diesel, but would not do so and would prefer to restrict supplies. He added that the company only has sufficient cash to fund imports till September this year. ‘Till now, the market is not feeling the pinch. But if the Government does not act, we might see queues and shortages,’ warned Behuria.

Bajaj Auto announces results for FY 2007-08

Things are looking up for Bajaj Auto

A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results for the financial year 2007-08. This is the first financial year of the company post demerger, hence the previous year’s financial figures have not been given. The summary of audited results of Bajaj Auto is as under.

Turnover (net of excise) for FY 2007-08 was Rs 91,688 million. Gross Profit after interest but before VRS, depreciation and taxation was Rs 14,111 million. The company paid Rs 1,024 million in compensation under VRS and profit before taxation was Rs 11,347 million.

Provision for taxation (including deferred tax) was Rs 3,788 million and net profit for the year was Rs 7,559 million. Earnings per share was Rs 54.20.

The Board of Directors recommended a dividend of Rs 20 per share (200%). The total amount of dividend and tax thereon amounted to Rs 3,385 million.

The company sold a total of 2,139,779 motorcycles in FY 2007-08, which was a 10 percent decline on the 2,379,499 units which it sold in FY 2006-07. Three-wheeler sales, at 290,312 units was also down by 10 percent compared with last year. However, exports, at 618,341 units, were up by 40 percent.

On the whole, Indian motorcycle industry sales declined by 8 percent in 2007-08. The shift from 100cc segment to 125cc plus segment continues, and the latter now constitutes 36 percent of market as against 31 percent during last year. Bajaj Auto continues to focus on the more profitable 125cc plus segment, where the company’s market share is close to 50 percent.

Bajaj Auto’s new launches in the 125cc plus segment included the XCD 125 DTS-Si, Discover 135 DTS-i, Pulsar 200 DTS-i and Pulsar 220 DTS–Fi. The growth in 125cc plus segment has, however, been offset by the decline in the company’s 100cc portfolio. Hence, the company’s overall motorcycle market share marginally reduced from 33.5 percent in 2006-07 to 32.7 percent in 2007-08.

In the three-wheeler space, Bajaj Auto’s sales continued to reflect the overall slow market conditions. However, the company still continues its dominance in the three-wheeler market and its market share in the passenger carrier segment stands at 71.5 percent in 2007-08. Bajaj Auto also continues to be the leading exporter of two- and three-wheelers. The company exported a total of 482,026 two-wheelers and 136,315 three-wheelers, valued at a total of Rs 20,478 million.

In a significant move towards future product development in the bigger sportsbike segment, Bajaj Auto, through Bajaj Auto International Holdings BV., acquired a 24.45 percent stake in KTM Power Sports AG, with a total investment of Rs 5.68 billion. KTM is the second largest European motorcycle maker and a worldwide leading manufacturer of power sports vehicles.

Bajaj Auto Indonesia, which was incorporated in 2006-07 as a Bajaj Auto subsidiary in Indonesia, with an issued, subscribed and paid-up capital of Rs 562 million, is also doing well. The company assembles and markets Pulsars in Indonesia. During 2007-08, new variants of the Pulsar were launched in Indonesia, and an exclusive dealer network has been put in place, which gives the company access to the key markets of Jakarta, Java, Sumatra, Bali and Sulawesi.

HM posts 79.37% fall in Q4 net profit

HM has to be the bravest car manufacturer in the whole world!

Hindustan Motors has reported a decline of 79.37 percent in its standalone net profit for the quarter ended 31st March 2008, at Rs 10.95 crore, compared to Rs 53.07 crore in the same period in 2007. (Of course, with its terribly outdated cars and near-defunct dealer network, it’s a wonder the company is making any profit at all. But wait, that’s not all – read on…)

HM’s total income during the quarter actually increased by 23.06 percent, at Rs 194.22 crore, against Rs 157.82 crore in the year ago period. The audited standalone net profit for the year ended 31st March 2008 was at Rs 30.84 crore, compared to Rs 13.30 crore last fiscal, an over two-fold jump.

HM's total income for 2007-08 also increased by 6.70 percent, at Rs 677.89 crore, against Rs 635.34 crore during previous financial year.

The company says on its website, 'The leader in the Indian Automobile Industry, creating Customer Delight and Satisfaction through product and services. Enhancement and Respect of Human Resources. A pride of India.' Indeed, HM is not giving up anytime soon...!

Ashok Leyland to double capacity, declares 150pc dividend

The Hinduja Group’s flagship company, Ashok Leyland has announced a net profit of Rs 180.57 crore for the quarter ended March 31, 2008. This is a 5.28 percent growth over the corresponding period a year ago. The company had a net profit of Rs 171.52 crore in the fourth quarter of the financial year ended March 31, 2007.

Ashok Leyland’s total income rose to Rs 2,573.61 crore for the last quarter, up from Rs 2,307.9 crore in the year-ago period. The company’s board of directors has declared a dividend of 150 percent, at the rate of Rs 1.50 on every share of face value of Re 1 held, for the year ended 2007-08.

For the year-ended March 31, 2008, the company announced a net profit of Rs 469.31 crore, a 6.35 percent growth over the year-ago period. The company had a net profit of Rs 441.29 crore in the financial year ended March 31, 2007. The total income rose to Rs 7,803.12 crore for the year ended March 31, 2007, up from Rs 7,238.98 crore last year.

‘In terms of topline, we compensated for the slowdown in the truck market by significantly improving our share of the bus market, international operations, as also the engines and spares businesses,’ said AL’s managing director, R Seshasayee. ‘Our bottomline benefited from some aggressive value engineering, sourcing initiatives and higher productivity,’ he added.

The board has approved the appointment of Vinod K Dasari as an Additional Director on the company's board. Further, R Seshasayee would be re-appointed as Managing Director for three years, effective April 1, 2008.

Ashok Leyland will also spend Rs 3,000 crore in capex over the next three years to more than double its annual capacity, which is currently 84,000 vehicles. The company will launch its iBus this year and also extend its range of tractors. Further, Ashok Leyland's bus assembly unit in the UAE will commence operations this year, with capacity being doubled to 2,000 units.

‘Margins continue to be under pressure, but if the revival comes, capacity won't be a constraint for us,’ said Seshasayee. He added that Ashok Leyland is also looking for acquisitions abroad, and that the company would continue to focus on 'second hemisphere' markets. 'We are expanding our presence in foreign countries and we are also looking for some acquisitions. Some strategic markets include Indonesia, Syria, Vietnam, Thailand, Honduras, Venezuela and Russia,' said Seshasayee.

On the domestic front, Ashok Leyland's upcoming plant in Uttarakhand is likely to be commissioned by March 2009. And by the 2010, the company will roll out its first products in partnership with Nissan.

Bosch Ltd. registers 12pc growth in Q1, 2008

Bosch Limited, the flagship company of the Bosch Group in India, has registered a growth of 12% for the quarter Jan-March 2008, despite a slowdown in auto sector. The company generated net sales of Rs 12,015 million in Q1 2008 Jan - March, registering a growth of 12.3% over Jan-March, 2007. But the PBT was down 9.8% at Rs 2,315 million in Q1, 2008, compared to Rs 2,566 million in Q1, 2007. The PAT stood at Rs 1,617 million, down 12% compared to Q1, 2007.

The EPS has also come down. For the Q1, 2008, it stood at Rs 50.5 per share, compared to Rs 57.3 per share in Q1, 2007. Bosch Ltd. has termed these results as below expectations, but hopes that as a result of Union budget measures for certain sectors of the auto industry, the Indian automotive market will pick up in the coming quarters, leading to better performance for the company.

About Bosch in India:

In India, Bosch is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods and building technology. Additionally, Bosch also has in India, the largest development centre outside Germany, for end to end engineering and technology solutions.

The Bosch Group operates in India through four companies, viz, Bosch Limited, Bosch Chassis Systems India Limited, Bosch Rexroth India Limited and Robert Bosch Engineering and Business Solutions Limited. Bosch Limited is the flagship company of Bosch Group in India and operates in Automotive Technology, Industrial Technology and Consumer goods & Building Technology business sectors.

In India, Bosch set up its manufacturing operation in 1953, which has grown over the years to 11 manufacturing sites and four development centres employing some 18,000 associates and generating a consolidated revenue of over Rs 5,700 crore in 2007.

JK Tyre: Record Q2 results

JK Tyre & Industries Ltd. today announced its un-audited financial results for the 2nd Quarter ending 31st March 2008 with PBT increasing to Rs 38.32 crore, an increase of 77 percent. The company has recorded a turnover of Rs 940 crore, an increase of 11 percent over the corresponding Quarter.

Highlights of the Quarter ended 31st March 2008

EBITDA of Rs 81.54 crore, as compared to Rs 62.40 crore in the corresponding quarter of the previous year

PBT soars to Rs 38.32 crore as against Rs 21.66 crore of the corresponding quarter

Earning per share (EPS) at Rs 7.48 for the Quarter

Dr Raghupati Singhania, Vice Chairman & Managing Director said, ‘JK Tyre continues to maintain its growth momentum, with sales and profits achieving newer heights. This pace will get accelerated with the implementation of the expansion projects now well under way.’

For the half year ended 31st March 2008, JK Tyre has achieved turnover of Rs 1,764 crores. Profit before tax at Rs 72.52 crore has been more than doubled. Profit after tax for the half year is at Rs 44.76 crore.

Maruti Suzuki announces financial results for 2007-08

With its new cars like the SX4 doing well, there's no looking back for Maruti

For the year 2007-08, Maruti Suzuki India, the leading car manufacturer in India, had a total income (net of excise) Rs 188,238 million. This is the highest total income (net of excise) ever in the company’s history, and marks a growth of 23.4 percent over 2006-07.

Net profit during the year stood at Rs 17,308 million, up 10.8 percent over 2006-07. This is despite a more stringent depreciation policy adopted voluntarily by the company with effect from 1st April 2007.

The company’s EBDITA for the year stood at Rs 31,308 million, a growth of about 21 percent over the previous year.

Dividend

The Board of Directors recommended a dividend of 100 percent for 2007-08. (Up from 90 percent in fiscal 2006-07.)

Quarter 4

The company registered total income (net of excise) of Rs 50,699 million during January-March 2008, a growth of 9.4 percent compared to January-March 2007. The growth in total income (net of excise) included higher realisations, largely contributed by the company’s popular hatchback Swift (both diesel and petrol variants) and the SX4 sedan.

Net profit during January-March 2008 was Rs 2,977 million. Net profit during January-March 2007 was Rs 4,486 million. However, the two figures are not comparable owing to a more stringent depreciation policy adopted voluntarily by the company from 2007-08.

New Depreciation Policy

For tighter and more prudent financial reporting, the company has voluntarily adopted shorter depreciation cycles for its equipment and tooling assets. The full depreciation for equipment and tooling assets will now be eight years instead of 13 years previously. The full depreciation for dies will be four years instead of five years, earlier.

In line with this accounting revision, the company has made an additional provision of Rs 2,123 million for depreciation for the full year 2007-08, impacting the profit figures for the quarter as well.

Highlights of 2007-08

During the fiscal 2007-08, Maruti Suzuki sold 764,842 vehicles, the highest ever in the history of the company. This marked a growth of 13.3 percent over the previous year.

The company’s sales included exports of 53,024 vehicles during 2007-08, the highest ever in the company’s history. Exports grew by 34.9 percent during the year.

While strengthening its leadership in the A2 segment, Maruti Suzuki also attained leadership in the A3 segment for the year 2007-08. The company sold 49,335 cars in the A3 segment, a growth of 66 percent over the previous year.