Reliance Q1 net up 20% at Rs 1,104 crore
Mumbai: Reliance Industries Ltd has reported a 20.26-per cent jump in net profit for the first quarter ended 30 June 2003 to Rs 1,104 crore (Rs 918 crore). The company claims that the profits were higher because of better sales volumes, including exports and lower financial costs. The net turnover was 17.38 per cent higher at Rs 12,501 crore (Rs 10, 650 crore). Exports (including deemed exports) were up 37 per cent to Rs 3,466 crore (Rs 2,535 crore). Total expenditure was up 18.78 per cent at Rs 10,213 crore (Rs 8,598 crore).

The company lowered interest payments to Rs 349 crore (Rs 407 crore) by refinancing high cost long-term debts. Depreciation was Rs 700 crore (Rs 646 crore). Expenses include an extraordinary expense of Rs 76 crore, which was paid towards a voluntary retirement scheme at Reliance's Patalganga plant, which was accepted by over 400 workers and staff.
Back to News Review index page  

CDC to work with PTL management
New Delhi: CDC Capital Partners, a UK-based private equity investor, which recently won the bid for the Punjab state government's 23.5-per cent stake in Punjab Tractors Ltd (PTL), plans to work with the existing management of the company. It will help PTL to carve a niche in the international markets. "We are not in the business of management control. We have been tracking this company for a long time now, and are looking to work with the current management," says Stephen Enderby, Director, CDC Capital Partners.

"Additionally, PTL has already been exporting to regions such as Europe and the US. Our width and reach in the international markets would help bring value addition to PTL," he says. CDC has decided to come out with an open offer for an additional 20 per cent in PTL despite an exemption for the same from SEBI. Industry officials said that the exemption was attained on the grounds that CDC was a multilateral funding agency.
Back to News Review index page  

HLL sales grow by 3.02%
Mumbai: New sales of Hindustan Lever for the June 2003 quarter grew by 3.02 per cent, which is better than the 1.2 per cent growth notched up in the March 2003 quarter. Growth in net profit (before exceptional items), at 12.6 per cent for the June 2003 quarter is also robust than the 8.2-per cent attained in the March 2003 quarter.

In the quarter under review, HLL made remarkable progress in the foods portfolio. The foods business, which shrunk by 9.8 per cent in the previous quarter, shrunk by just 2.6 per cent, due to a recovery in beverages.
Back to News Review index page  

IPCL raises $100-million overseas loan
Mumbai: Indian Petrochemicals Corporation Ltd (IPCL), a Reliance group company, has raised an overseas loan of $100 million for five years. ANZ Investment Bank and State Bank of India lead-arranged the loan at an average interest rate of 121 basis points above the six-month Libor, which is currently near 1.15 per cent.

Abhay Rangnekar, CEO, ANZ Investment Bank, says the loan is structured in such a way that the interest rate is stepped up after two years. In the first two years, the rate would be 105 basis points above the six-month Libor and thereafter it would be 131 basis points above the Libor. Apart from ANZ and SBI, which have also participated in the syndication, Emirates Bank, Bhumiputra Bank of Malaysia, National Bank of Kuwait, and Mizuho of Japan were the major contributors.
Back to News Review index page  

L&T clocks 86% spurt in net profit
Mumbai: Larsen & Toubro (L&T) has posted an 86 per cent jump in net profit at Rs 83.2 crore for the first quarter ended 30 June 2003 as compared to Rs 44.6 crore for the corresponding quarter in the previous year. Total income (net of excise) has increased from Rs 1993.72 crore in the June quarter 2002 to Rs 2221.17 crore in the quarter under review.

L&T has written off the compensation paid under employee voluntary retirement schemes, as against the practice hitherto of amortising the same over five years which has resulted in an additional charge of Rs 9.87 crore for the quarter. Interest costs for the quarter at Rs 34.60 crore are significantly lower as compared to the similar period in the last year. The engineering and construction (E&C) segment secured orders aggregating Rs 2,006 crore, out of which the domestic market accounted for Rs 1,823 crore.
Back to News Review index page  

India Cements Q1 net loss down to Rs 17 crore
Chennai: Marginal improvement in realisation and lower interest burden on account of the corporate debt restructuring (CDR) have enabled India Cements cut its losses in the first quarter. The company has netted a loss of Rs 16.67 crore as against Rs 53.94 crore in the first quarter of the previous fiscal.

The current quarter loss has been arrived at after including an extra-ordinary income of Rs 8.25 crore pertaining to write back of higher interest charged during the January-March 2003 during which CDR, though effective, was not considered.
Back to News Review index page  

Gujarat Ambuja yearly net up 19% to Rs 222 crore
Mumbai: Gujarat Ambuja has registered a 19 per cent rise in net profit at Rs 221.73 crore for the financial year-ended June 2003 as against Rs 186.52 crore in fiscal 2001-02. Net sales also saw a 25 per cent jump at Rs 1,735 crore for the year as against Rs 1,384 crore in 2001-02. For the fourth quarter 2002-03, the net profit saw a 90 per cent jump at Rs 78 crore as against Rs 40 crore in the corresponding quarter in the previous year. Sales also saw a 31 per cent jump at Rs 470 crore.

"Despite the first half of the year being very challenging, the company has fared commendably well due to improved productivity, reduction in energy cost and interest expenses," says GACL whole-time director Anil Singhvi. GACL sold 9.81 million tonnes of cement as compared to 7.18 million tonnes in the previous year, an increase of 37 per cent. The board has recommended a dividend of 70 per cent (inclusive of interim dividend of 30 per cent) for 2002-03.
Back to News Review index page