Reliance net up 10 pc in Q1
Mumbai: Reliance Industries' (RIL) net profit increased 10 per cent in the first quarter ended June 30, 2006, on a 32 per cent increase in turnover. The company's net profit stood at Rs2,547 crore, up from Rs2,310 crore in the corresponding year-ago quarter. Its turnover was recorded at Rs26,166 crore for the quarter (Rs19,884).

The company said its profits were affected by a plant shutdown at its Jamnagar refinery in May that impacted capacity utilisation, under-recoveries in retail marketing, higher interest costs, rising raw material costs that impacted margins, and investment in new businesses.

A statement from RIL chairman Mukesh Ambani said, "All our businesses have recorded a robust performance in a very challenging environment." I am very excited about RIL's future as we continue to commit our cash flows in expanding our existing and new businesses," the statement added.

Expenditure rose across almost all heads: raw material costs rose 34 per cent, to Rs13,540 crore; employee costs rose 26 per cent, to Rs318 crore; while `other expenditure' rose 28 per cent to Rs1,915 crore. The company's operating profit before other income, at Rs4,237 crore (Rs3,566 crore), rose 19 per cent. But its net operating margin was 17.3 per cent against 20.1 per cent a year ago.

Other income decreased to Rs44 crore from Rs194 crore, as surplus funds were utilised for investment in Reliance Petroleum Ltd, decreasing interest income for the company. Profit before depreciation, interest and tax rose 14 per cent, to Rs4,281 crore (Rs3,760 crore).

Interest expenditure increased by 12 per cent, to Rs266 crore (Rs237 crore). Outstanding debts as on June 2006 totalled Rs23,428 crore, against Rs17,663 crore a year ago.

Depreciation amounted to Rs907 crore (Rs791 crore). Provision for taxation rose 45 per cent, amounting to Rs356 crore (Rs246 crore).

RIL had made a capital expenditure of Rs1,900 crore during the quarter, primarily on exploration, production, and implementation of value maximisation projects, said a statement from the company.
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Gujarat Ambuja Q4 net doubles
Mumbai: Gujarat Ambuja Cements has more than doubled its net profit for the fourth quarter ended June 30, 2006, reporting higher volume sales and better price realisations in both the domestic and export markets.

Net profit amounted to Rs304 crore for the fourth quarter of the six-quarter financial year ending December 2006, as the company brings its accounting year in line with its foreign parent, Holcim. The net profit for the corresponding quarter in the last year was Rs145 crore. Sales volumes at 3.77 million tonnes (3.28 million tonnes) rose 15 per cent, with better realisations yielding a 57 per cent increase in turnover, which stood at Rs1,134 crore (Rs721 crore).

Operating profit, excluding exchange rate difference, amounted to Rs452 crore (Rs231 crore) rising 96 per cent. The EBITDA margin (excluding exchange rate difference) was 40 per cent, up from 32 per cent. Interest costs were considerably lower at Rs12 crore (Rs23 crore), while provision for taxation was higher at Rs68 crore (Rs21 crore).

On a consolidated basis, the net profit rose 110 per cent to Rs360 crore, up from Rs171 crore in the corresponding quarter last year. Turnover rose by 56 per cent to Rs1,155 crore (Rs740 crore).
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Ranbaxy Q2 net up 19.5 pc at Rs121-cr
New Delhi: Ranbaxy Laboratories net profits increased by 19.5 per cent and touched Rs121.1 crore for the second quarter ended June 30 against Rs101.3 crore in the corresponding period in the previous fiscal. The company's consolidated sales were at Rs1,446.4 crore, up 7 per cent for the quarter, against Rs1,347.9 crore in second quarter in the last financial year.

Ranbaxy said it would continue to look at increasing its footprint in Europe, Japan and India through "organic and inorganic" route.

In the back of the US launch of Symvastatin Tablets 80 mg with 180 days exclusivity, the company registered $89 million (about Rs409 crore at Rs46/$) US sales for the quarter, an 8 per cent increase over the corresponding quarter.

The expenditure on research and development (R&D) was down 27 per cent in the quarter ended June at Rs81.9 crore against Rs112 crore in the previous fiscal. Its selling, general and administrative costs were down 7 per cent at Rs411.7 crore for the quarter.
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BHEL gets order worth Rs46-cr in Ethiopia
New Delhi: Bharat Heavy Electricals Ltd (BHEL) has received an order worth Rs46-crore to set up two substations in Ethiopia. The contract for 230 KV sub-stations was awarded by Ethiopian Electric Power Corporation and is part of the electrification programme of the Ethiopian Government, a BHEL release said. BHEL's scope of work includes design, supply and commissioning of the Semera and Dichoto substations in the country. The project is to be completed in 18 months.
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Sona Group to set up French subsidiary
New Delhi: The Rs800-crore Sona Group is setting up a subsidiary in France called Sona Autotech (France), which would handle the group's exports to Europe. The company exports to Europe are set to see a significant jump, especially with Sona Koyo commencing supplies to Fuji Autotech, in which it holds 17 per cent stake. The company expects a business of 30 million from Fuji Autotech, which also has subsidiaries in Brazil and the Czech Republic, by 2009. The figure is expected to be about 1.5 million in the current year.

Sona Autotech (France) would set up a warehouse to handle exports of all Sona group companies including Sona Koyo, Sona Okegawa, and Sona Somic Lemforder. Exports of Sona Somic Lemforder are also expected to see an increase with the company likely to commence exports to ZF Lemforder soon.

The group already has a subsidiary in the US, which handles its exports to the region.

The Sona group is targeting exports of Rs150 crore this fiscal, most of which will come from exports by Sona Koyo, up from Rs100 crore last year.
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USFDA grants approval for Zydus, Glenmark for Meloxicam
Ahmedabad: Two Indian companies Zydus Cadila and Glenmark Laboratories have obtained approval from the US Food and Drug Administration (USFDA) to market Meloxicam tablets, 7.5 mg and 15 mg, in the American market. Meloxicam is the generic version of Boehringer Ingelheim's brand Mobic and is used to treat osteoarthritis. The drug registered annual sales of about $936 million.

Gelnmark will market the drug in the US through its US subsidiary, Glenmark Pharmaceutical Inc, which will commence supplying the drug to customers in the US immediately. Glenmark manufactures the drug at its solid-oral formulation facility at Goa.
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Hyundai Motor India signs 3-year agreement with unions
Chennai: Hyundai Motor India has signed a three-year wage pact with its workers, the first such settlement in the 10-year history of the company. Till now, the company has signed only annual wage agreements.

According to reliable sources, the wage agreement, which covers about 1,700 technicians, will result in an average increase of 12 per cent in wages, or about Rs3,500 a year. In the annual agreement so far, the increase worked out to about 10 per cent.

The company is also said to have agreed to some welfare schemes and agreed to provide interest-free personal loans. The agreement signed on Thursday freezes the wages over the three-year period and enables the management and workers to focus more on productivity and quality issues, and incentive schemes, according to the sources. However, the other employees of Hyundai Motor India — in the supervisory and non-worker categories — will continue to come under annual pay revisions, according to the sources.

A company press release said that the wage increase would come into effect from April 2006 and last till March 2009. It was a real pay rise for close to 4,000 workers in the company, the release said.
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Ranbaxy enters into licensing pact for Canadian market
New Delhi: Ranbaxy Laboratories has entered into a licensing agreement with Canada's Janssen-Ortho Inc to market the generic version of Risperidone, a drug for psychotic disorders, in Canada. The drug will be manufactured by Janssen, a Ranbaxy statement said.

The generic version of Risperidone is sold under Ranbaxy's label, Ran Risperidone, it said, adding that the Canadian patent for Risperidone expired in July and Ran Risperidone is now available through pharmacies and wholesalers, it added. RPCI is a wholly owned subsidiary of the company and is engaged in the sale and distribution of generic medicines in the Canadian healthcare system.
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Areva may make EPR reactors in India
New Delhi: French nuclear major Areva, the world's largest manufacturer of nuclear reactors, expects to ramp up its presence in India once the Indo-US nuclear deal goes through.

An accord on sharing technology to develop civil nuclear energy was signed between India and France during a visit in February this year by the French President, Jacques Chirac.

Areva's executive board chairperson, Ms Anne Lauvergeon, speaking at a meeting organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) said Areva would become a a major player in India's nuclear programme as soon as the international framework allows it. Areva already has a presence in the transmission and distribution segment in India.

Ms Lauvergeon said, "We expect that a significant share of an `EPR reactor' will be manufactured in India. And there is a potential to source in India some components to other international markets," she said. The EPR is Areva's next-generation European Pressurised Reactor.

Speaking later at the meeting, the Minister for Science, Technology and Ocean Development, Kapil Sibal, said that by 2025, India hoped to produce 25 per cent of its power generation from nuclear energy as compared to only 2.7 per cent at present.
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Nasscom plans cyber labs in more cities
Chennai: The National Association of Software and Service Companies (Nasscom) is setting up cyber labs in Pune, Bangalore and Hyderabad in order to strengthen the investigating skills of enforcement agencies with regard to cyber crime.

Nandkumar Saravade, director, cyber security and compliance, Nasscom, said, "In the wake of the increasing number of cyber crimes in the country, we are setting up cyber labs in various cities and are in talks with industry people for funding."

Such labs have already been set up in Mumbai and Thane and the association is looking at setting up such labs in Chennai, Kolkata and Delhi.

An investment of Rs35 lakh to Rs40 lakh is required to run a cyber lab for a period of two years. Persistent Systems has come forward to fund the lab in Pune, while Canara Bank has taken the initiative in Bangalore. Nasscom is in talks with the State Bank of Hyderabad and Andhra Bank for the same in Hyderabad.
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