[image: PPFAS] <http://www.ppfas.com/> *3rd August 2009* *Inside this
report...*
Complexity is not a cause of confusion. It is a result of
it.<#122df4e5ae7ce950_122df4112b45da1f_pv>
Specialty funds <#122df4e5ae7ce950_122df4112b45da1f_sf>
Castrol India Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_castrol>
Gujarat Gas Company Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_ggcl>
GlaxoSmithKline Pharmaceuticals Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_gsk>
Solvay Pharma India Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_solvay>
Fulford India Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_fulford>
Colgate Palmolive India Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_colgate>
Godrej Consumer Products Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_godrej>
VST Industries Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_vst>
Marico Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_marico>
Oracle Fincial Services Software Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_ofss>
Patni Computer Systems Limited: Q2CY09 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_patni>
NIIT Technologies Limited: Q1FY10 Result
Update<#122df4e5ae7ce950_122df4112b45da1f_niit>
*Complexity is not a cause of confusion. It is a result of it.* Parag’s
Views : From our Achieves
In the wake of the subprime crisis that all unanimously agree has arisen
from the quantitative complexities of derivatives like CDOs and CDO-squared
that baffle CEOs from proper risk management, mesmerise institutional funds
into blindly buying, and confuse regulators into despairing acquiescence, I
think many more people would start to appreciate the beauty of simplicity.
more... <http://www.ppfas.com/research/ereports/week/030809/index.php#pv>
*Specialty funds* Kavitha Menon | [email protected]
Specialty funds would broadly cover sectoral funds, thematic (theme based)
funds and commodity funds
Most investors are familiar with the concept of Sector Funds. These would
invest in specific sectors like banking, pharma, FMCG etc. Irrespective of
fund manager's outlook on the sector, the fund will be invested in companies
belonging to the sector. It remains the investor's call to enter these
schemes when the outlook on the sector is bright and exit when the outlook
changes. Such a call is tough and investors need to be very clear about the
dynamics of the sector before investing.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#sf>
*Castrol India Limited: Q2CY09 Result Update* Anuj Anandwala |
[email protected]
*Stupendous Performance!*
Castrol India Ltd., (CIL) has reported a stellar performance for the quarter
ended Jun'09. Top line growth for CIL was almost flat at 2.6% to Rs. 6,375Mn
in Q2CY09 as against Rs. 6,214Mn in Q2CY08. The overall results were above
our expectations as operating margins for the quarter ended Jun'09 expanded
handsomely to 31% from 20.8% in Jun'08, resulting, operating profits to jump
significantly by 54% from Rs. 1,290Mn to Rs. 1,983Mn.
In the difficult economic environment, CIL has been able to defend its
margins appropriately thereby delivering strong bottom line growth and
improving cash flows. Although the company has seen a decline in volumes due
to the economic slowdown, gross profits have increased on account of a rise
in unit gross margins.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#castrol>
*Gujarat Gas Company Limited: Q2CY09 Result Update* Ridhim Thapar |
[email protected]
Gujarat Gas Company LTD (GGCL) reported decent set of numbers for the second
quarter ended 30th June 2009. The company reported Net Revenues of Rs. 3,316
Million for Q2CY09 as compared to Rs. 3061 Million in the corresponding
quarter of the previous year, representing a jump of 9.07%. The profit after
tax (PAT) was Rs. 476 Million compared to Rs 441 Million in the
corresponding quarter of the previous year (which included a settlement
income of Rs 105 Million received from a gas transporter). Thus on a like to
like bases the PAT has grown at a healthy rate of 41.67%. EPS for the
quarter ended June 2009 stood at Rs. 7.38.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#ggcl>
*GlaxoSmithKline Pharmaceuticals Limited: Q2CY09 Result Update* Hiren
Samani | [email protected]
GlaxoSmithKline Pharmaceuticals Ltd., the largest MNC pharmaceutical company
operating in India reported stable set of numbers for the second quarter
ended 30th June 2009. The MNC witnessed a top-line growth of 9.7% Y-o-Y from
Rs. 4,209.2 Mn. in Q2CY08 to Rs. 4,619.5 Mn. in Q2CY09. With about 16% rise
in Total Cost component, the pharma major reported an increase of close to
8% in Operating Profits over the same period last year. The company
witnessed significant increase in Net Interest Income & Other Income
components to the tune of 52% & 145% Y-o-Y respectively, thereby giving a
boost to EBITDA margins by almost 270 bps to 44.3% for Q2CY09. GSK reported
a 16.4% Y-o-Y increase in PAT before Extraordinary levels to Rs. 1,316.6 Mn.
for Q2CY09 vis-à-vis Rs. 1,130.9 Mn. for the year ago period. However, the
company made a payment of Rs. 58.8 Mn. towards Separation of temporary
workmen at its Nashik factory, thereby impacting the bottom-line standing at
Rs. 1,243.5 Mn. for the quarter ended 30th June 2009.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#gsk>
*Solvay Pharma India Limited: Q2CY09 Result Update* Hiren Samani |
[email protected]
Solvay Pharma India Ltd. (SPIL) reported excellent set of numbers for the
second quarter ended 30th June 2009. The sequential performance was as
follows:
- Net Revenues grew by almost 25% Q-o-Q to Rs. 623.2 Mn. in Q2CY09 from
Rs. 500.3 Mn. in the previous quarter.
- The MNC pharma witnessed a sequential increase of 24.2% & 16.1% in
Staff Costs & Other Expenses respectively over the previous quarter.
- However, it still managed to increase its Operating Profits by almost
47% Q-o-Q from Rs. 117 Mn. in Q1CY09 to Rs. 171.6 Mn. in Q2CY09.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#solvay>
*Fulford India Limited: Q2CY09 Result Update* Hiren Samani |
[email protected]
Fulford India Ltd. (FIL) reported stellar set of numbers for the second
quarter ended 30th June 2009. The company reported Net Revenues of Rs. 536.3
Mn. for Q2CY09 as against Rs. 321.7 Mn. for Q1CY09, a stunning jump of more
than 66% Q-o-Q. The first quarter performance ending March has always been
on the lower side for the MNC. With more than 44% increase in Cost of
Materials over the previous quarter, FIL reported Operating Profits of Rs.
105.9 Mn. against an Operating Loss of Rs. 25.6 Mn. for Q1CY09. The
Operating Profit Margins were healthy at 19.7% for the second quarter ended
30th June 2009. Analyzing the Cost components as a percentage of Sales, FIL
has achieved significant improvements on a Q-o-Q basis. Other Income was
down by more than 16% Q-o-Q at Rs. 16.1 Mn. against Rs. 19.3 Mn. for Q1CY09.
FIL paid Tax amounting to Rs. 39.1 Mn. for the quarter ended 30th June 2009,
at an effective rate of 32.8%. Reported PAT for Q2CY09 stood at Rs. 80.2 Mn.
vis-à-vis a Net Loss of Rs. 11.2 Mn. for the first quarter ended March 2009.
EPS for the quarter ended June 2009 stood at Rs. 20.6.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#fulford>
*Colgate Palmolive India Limited: Q1FY10 Result Update* Ruchak Mehta |
[email protected]
Colgate Palmolive (India) Ltd reported a satisfactory set of numbers for the
quarter ended June 2009.
On a Y-o-Y basis, the company's topline grew by 14.82%, to Rs 4,679.9 Mn
from Rs 4,076 Mn in Q1FY09. Operating Profits increased handsomely to Rs
1,051.6 Mn from Rs 688.8 Mn in Q1FY09, a jump of 52.67%. Apart from the
growth contributed by the topline, this was primarily due to a cutdown in
Advertising and Sales Promotions to Rs 582.8 Mn from Rs 693.1 Mn in the same
period the year ago, a drop of 15.91%. Consequently, Total Expenditure
increased by only 7.12%, to Rs 3,628.3 Mn from Rs 3,387.2 Mn and OPM
increased by 557 bps to 22.47% from 16.9%. With the benefits and incentives
from higher production at the company's toothpaste plant at Baddi, Effective
Income Tax rate further reduced to 17.82% from 21.26%. Reported PAT stood at
Rs 1,027.8 Mn as against Rs 719.2 Mn for the same period, the year before,
an increase of 42.9% while EPS grew to Rs 7.6 from Rs 5.3.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#colgate>
*Godrej Consumer Products Limited: Q1FY10 Result Update* Ruchak Mehta |
[email protected]
Godrej Consumer Products Ltd reported a stellar set of numbers for the June
quarter FY10.
On a Y-o-Y basis, consolidated results, the company registered a strong
topline growth of 21.4% from Rs 3,616.3 Mn in Q1 FY09 to Rs 4,388.5 Mn. This
was on the back of a strong 22% growth in the domestic business as well as a
20% growth in the international business.
With the raw material prices cooling off, overall expenditure increased by
only 12.9% from Rs 3,120.5 Mn to Rs 3,524.3 Mn. This, inspite of an increase
in Employee Costs (due to performance linked remuneration) and a planned
spike in Advertising and Promotional Spends. Consequently, OPM registered a
600 basis points increase. Reported PAT stood at Rs 696.8 Mn, 78.2% higher
from the same period a year ago, of Rs 391 Mn.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#godrej>
*VST Industries Limited: Q1FY10 Result Update* Ruchak Mehta |
[email protected]
VST Industries Ltd reported a decent set of numbers for the quarter ended
June 2009.
On a Y-o-Y basis, Net Revenues for the company grew by 78.48%, from Rs 702.3
Mn in Q1FY09 to Rs 1253.5 Mn. While the cost of Raw Materials increased
sharply, cost cutting in other areas helped keep down overall expenditure
for the company to Rs 977.5 Mn, a jump of 53.5% over the same period, a year
ago. Consequently, OPM improved by a huge 1269 basis points, taking the
operating profits to Rs 276 Mn as against Rs 65.5 Mn for the same quarter, a
year ago, a rise of more than 300%.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#vst>
*Marico Limited: Q1FY10 Result Update* Ruchak Mehta | [email protected]
Marico Ltd presented a satisfactory set of numbers for the June quarter
FY10.
On a consolidated level, Y-o-Y basis, the topline grew by 16.8%, from Rs
5,965.8 Mn in Q1 FY09 to Rs 6,967.2 Mn. This comprised a 14% growth due to
volume. The company benefited tremendously from the fall in input prices.
Cost of Materials saw a sharp drop of 388 basis points from the quarter
ended Jun 2008. Consequently OPM improved by 116 bps to 13.85%, inspite of
an increase in Other expenses and Advertising and Promotional Spends.
Reported PAT stood at Rs 559.8 Mn as against Rs 462.9 Mn for the same period
a year ago, a rise of 20.93%. EPS stood at Rs 0.9.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#marico>
*Oracle Fincial Services Software Limited: Q1FY10 Result Update* Raunk
Onkar | [email protected]
Oracle reported a subdued quarter as compared to the last quarter. But with
YoY growth of 12% in topline & 76% in bottomline it has reported an
impressive performance. OFSS reported a good operating performance where the
product business showed an improvement in operating margin to 41% from 19%
YoY & the services business showing a similar hike to 25% from 11% YoY. DSO
has also reduced to just 83 days for the overall business.
One of the main reasons we like OFSS, is that, it's an Oracle company. The
parent's strong positioning in the banking back-end has created lot of
opportunities for the already popular OFSS. In the Forrester Report on
Global Banking Platform Deals (May 2009), it mentions Oracle's Flexcube as a
clear winner in the product category & Oracle as a clear winner in overall
banking services deals. They have a long history of providing software
solutions to the banking & financial services industry & their niche with
scalability has enabled them to reach that level of acceptance. Also
Oracle's solutions have been ranked leaders in the Risk & Compliance
software products.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#ofss>
*Patni Computer Systems Limited: Q2CY09 Result Update* Raunk Onkar |
[email protected]
Overall the Q2CY09 seems to be eventful for Patni, but not prophetic yet for
the times to come. On a QoQ basis, the revenues rose just 0.4% whereas the
PAT grew 77.7%. This jump in net profit can be attributed to the more
favourable dollar rate compared to the recent quarters gone by. But with
Patni spring does seem to be around the corner since it has also posted a
growth YoY in both topline & the bottomline. But historically the second
quarter has always been a bit lumpy where as the subsequent quarters seem to
even out by the end of the year. As the company has reported, the revenue
growth can be attributed to a ramp up in volume of 2.2% & a currency tail
wind of 1.1% but, owing to client's pricing pressure the revenues suffered
by 2.5% this quarter. There has also been an improvement in the operating
margin by ~2.5% which is a good sign.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#patni>
*NIIT Technologies Limited: Q1FY10 Result Update* Raunk Onkar |
[email protected]
NIIT Tech started the year off with a bleak Q1 owing to traditional slower
start as well as added burden of pricing & volume pressure. Decreasing IT
spending by new clients also has resulted in erosion of revenues. The
company reported a topline de-growth of ~4% QoQ & ~11% YoY. The revenue
reduction is contributed due to 7% volume decline, 2.3% hedging loss & 1.4%
drop due to pricing pressure. NIIT has adopted blood bath accounting
techniques this quarter due to which even the bottomline has suffered by a
3% margin reduction. These accounting tactics have basically made some of
their outstanding hedges (@Rs. 41.9/$), non-effective. These non-effective
hedges are expensed as a forex loss for the quarter, but the magnitude is to
the tune of the entire year's expected forex loss. This might be due to the
fact that the company would want to show better performance for the coming
three quarters, which would be their actual performance, ex-forex. In spite
of the revenue loss, the company has been able to maintain an operating
margin of 18% due to prudent cost control measures.
more...<http://www.ppfas.com/research/ereports/week/030809/index.php#niit>
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unsubscribe <[email protected]?subject=unsubscribe>. *Parag Parikh
Financial Advisory Services Limited*
130/132, Great Western Building, 1st Floor, S.B.S. Marg, Near Lion Gate,
Fort, Mumbai - 400 001 INDIA.
Tel : 91 22 2284 6555 Fax : 91 22 2284 6553
--
Regards,
Anuj Anandwala
Analyst I Investment Research
Parag Parikh Financial Advisory Services Ltd.
Tel: 022 2284 6555
URL: www.ppfas.com
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