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Union Bank of India’s net profit up 91%, over September quarter

Union Bank of India’s net profit growth continued to be affected by higher provisions for non-performing assets in the December 2010 quarter, rising by just 8.5% to about Rs 580 crore, compared to the same period a year ago. But the bank’s performance improved compared to the September quarter, with profit rising by 91%, chiefly due to a sequential decline in provisions.

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TVS Motor’s net profit up 137%, stock steadies

TVS Motor Company’s results do not show an improvement over the September quarter, as sales and net profit rose by just 2% each. But it has done much better over the year ago period.

TVS Motors, the Chennai-based two-wheeler company, with a market capitalization of Rs 2,947 crore saw its December 2010 quarter sales increase by just 2% over the September quarter to Rs 1,647 crore. Net profit too rose by 2% sequentially to Rs 56 crore.

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BHEL’s orders crawl, accounting policy change boosts profits

Engineering company Bharat Heavy Electricals Ltd, or Bhel, saw its order book rise by a meagre Rs 4,000 crore to Rs 158,000 crore in the December 2010 quarter, compared to the previous quarter. Order book position is a key variable for any engineering company, as future revenue streams are forecasted, based on the order book’s level and growth. There appears to be a slowdown in new projects, which was visible when Larsen & Toubro declared its results too, recently.
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Wipro’s Girish Paranjpe and Suresh Vaswani quit, ending joint CEO structure

There were always questions on whether two men –or women- can co-exist at the top. One more answer to that never ending debate was added by Wipro. In 2008, Wipro appointed two people, Suresh Vaswani and Girish Paranjpe at the helm, as joint chief executive officers. This debate of joint leadership is best exemplified in large global corporations, with large operations in two continents, notably of Anglo-Saxon origins. Unilever Plc is another example which moved to a single line of command in recent years.

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FDC to consider buyback of shares

Pharmaceutical company FDC’s board is considering a buyback of its shares. This will be its second attempt in recent times, after its previous one failed to get any shares. In December 2010, the company had announced the completion of the buyback of its shares, announced in Jan 2010. FDC is a mid-sized, Rs 660 crore company with products in niche segments such as ophthalmology and is famous for the Electral brand of oral rehydration salts.

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Bajaj Auto’s profit growth robust, margins stable

The sales of Bajaj Auto, the Rs 38,200 crore market capitalisation motorcycle company, for the quarter ended 31 December 2010 at Rs 4,177 crore, based on standalone figures, are almost at the same level as the previous quarter. Sales are up by 27% over the same period a year ago.

On a sequential basis, its net profit is down by 2% to Rs 667 crore but is up by 40% over the same period, a year ago.
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Strides Arcolab in Brazilian JV with BioChimico

Indian pharmaceutical company Strides Arcolab has entered into a joint venture with a Brazilian company, BioChimico Industria Farmaceutica, to jointly market drugs for the hospital market. Strides will make the investment through an overseas subsidiary, Agila Specialities. The company owns a manufacturing facility in Campos, Brazil, which it acquired from South Africa’s Aspen Pharmacare, about a year ago, when the two companies restructured their business operations.

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HCL Tech’ sales growth robust, margins stable

HCL Technologies’ sales grew by about 5% sequentially in the December quarter, due to good performances in its key markets of US and Europe, and high levels of growth in emerging markets. Its performance is comparable to that of Tata Consultancy Services, with revenues rising 4.9% sequentially to Rs 3,888 crore and by 28% over the same quarter, a year ago. Comparable figures for TCS during these periods were 4% and 26%. Continue Reading →

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