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Sanghvi Movers Ltd -Result highlights. Sanghvi Movers Ltd (SML) has reported strong performance during Q3FY2009,both on revenue and profitability front. SML’s income from operation grew by 37.8% to Rs88.8 crore led by better-than-expected utilisation and higher yields. The operating performance of the company surprised positively with a 290-basis-point year-on-year (y-o-y) improvement in the operating profit margin (OPM) to 75.7%. on account of a decline in the operating cost. The net profit increased by 34.8% to Rs23.9 crore as against our estimate of Rs18.6 crore. The profits were higher mainly due to a better top line growth coupled with better operating performance and high other income component. The other income was high due to sale of an old crane, which realised Rs1.9 crore. The company has added Rs55 crore worth of cranes during the period under review. The total fleet size of SML now stands at 323 cranes, accordingly the gross block of the company now stands at Rs950 crore. ...

Thermax - Result highlights. Thermax’ Q3FY2009 results were below expectations on revenue front, however owing to better-than-expected operating performance and lower tax the adjusted net profit came in line with estimate. The stand-alone total income from operations reported a decline of 6% to Rs795.1 crore. Revenue from energy division continued to be disappointing as it declined by 9% to Rs628.3 crore, while the revenue from environment division grew by a decent 14.1% year on year (yoy) to Rs185.3 crore. During the quarter the company provided for marked-to-market (MTM) losses of Rs10.6 crore as against a net gain of Rs2.4 crore in Q3FY2008. Adjusting for the same the operating profit of the company rose by 2.35% to Rs107.4 crore. The operating profit margin (OPM) improved by 110 basis points yoy to 13.5% on account of decline in raw material cost as percentage of sales by 510 basis points yoy to 65.6%. The adjusted net profit of the company was up 8% to Rs79.3 crore.Accounting for...

Opto Circuits India -Result highlights. Strong performance continues; concerns overdone. Opto Circuits (Opto) has reported a top line growth of 65.7% to Rs211.0 crore for Q3FY2009. The revenues were driven by a 20% growth in the non-invasive segment (excluding Criticare Systems [Criticare]) and an 81.9% growth in the invasive segment. Criticare contributed revenues of Rs40.4 crore. On excluding the contribution from Criticare, the organic growth was ~34%. Opto’s operating profit margin (OPM) expanded by 60 basis points year on year (yoy) to 28.9% in Q3FY2009. The margins are impressive considering the consolidation of Criticare, which has relatively lower margins.Consequently, the operating profit grew by 69.3% to Rs60.9 crore in Q3FY2009. Driven by a strong operating performance, Opto has reported a net profit of Rs52.6 crore, up by 47.2% yoy. The net profit reported by the company is marginally ahead of our estimate of Rs49.0 crore. The net profit was aided by a foreign exchange (fo...

Indian Hotels Company - Results Highlights. The revenues and margins are strictly not comparable on a year-on-year basis, as the operating revenues include Rs26.36 crore of insurance claims for loss of profit on Taj Mahal Palace & Tower, which was non-operational due to damages sustained during 26/11 terrorist attacks. The operating revenues declined by 12.3% year on year (yoy) to Rs456.6 crore due to substantial drop in occupancies and subdued average room rates (ARRs) yoy. The management clarified that despite the economic slowdown their ARRs and occupancy rates were holding good, however post 26/11 there have been significant cancellations and the month of December played a spoilsport for Q3FY2009 results. The occupancy rate in December 2008 dropped to 50% against 74% in December 2007 and 67% in April-November 2008. ARRs for the month were lower by 15.4% yoy. Consequent to subdued top line performance the operating margin declined from 47% in Q3FY2008 to 36.3% in Q3FY2009, whic...

Andhra Bank - Results Update. Andhra Bank has reported a profit after tax (PAT) of Rs212.7 crore in Q3FY2009 indicating an increase of 33.7% year on year (yoy). The net interest income (NII) for Q3FY2009 registered a healthy growth of 29.3% yoy and stood at Rs451.9 crore on account of a strong 34.2% year-on-year (y-o-y) growth in the advances coupled with an 8-basis-point y-o-y increase in the calculated net interest margin (NIM), which stood at 2.88%. The operating expenses increased by 28.9% yoy during the quarter as employee expenses increased at a much faster pace of 40.9% yoy, while other operating expenses grew by 16.5% yoy. During the quarter the bank made an ad-hoc provision of Rs40 crore towards pending settlement for wage revision. However, despite this increase the cost to income ratio was contained at 44.3% in Q3FY2009 vs 51.1% in Q2FY2009. Notably the provisions declined by 10.5% yoy to Rs24.9 crore as compared with Rs27.8 crore in Q3FY2008, which boosted the bottom line. ...

Vote-on-account: • The vote-on-account, with impending general elections, stuck to convention and did not contain any major announcements / initiatives. • Revised FY09 revenue and fiscal deficits are estimated at 4.4% and 6%, respectively - significantly above the budgeted levels, but in line with consensus estimates • Fiscal deficit for FY10 is budgeted at 5.5% and revenue deficit at 4% of GDP; Budget assumes a 10% rise in corporation tax and a similar rise in income tax in FY10, which may be challenging to achieve in the backdrop of a weak economic environment. • No sector specific incentives announced except extension of interest rate subsidy for labour intensive export operations. Major initiatives to be taken up only in the full budget to be unveiled by the new Government, post elections • With no major triggers in the near term, markets will now look at the elections and international factors over the next two months. Monetary measures, if any, will have an impact in the intermed...

Maruti Suzuki India - Result highlights. Maruti Suzuki’s Q3FY2009 results are ahead of estimates after some adjustments. The net sales for the quarter declined by 1.9% to Rs4,567.6 crore (adjusting for Rs55crore of compensation paid to dealers due to a reduction in the excise duty). The sales volume for the quarter dropped by 14% and the average realisation improved by 14% due to a change in the product mix towards the B and C segment cars. The operating profit margin (OPM) is lower than expectation. The OPM declined by 649 basis points year on year (yoy) to 6.6% during the quarter. The margin contracted due to a higher cost of raw materials. The depreciation in the rupee against the yen further increased the cost of imported raw materials for the company. This coupled with the higher fuel cost, royalty charges, A-Star launch expenses and an increase in distribution expenses led the operating profit for the quarter to decline by 50.4% to Rs304.3 crore (excluding a foreign exchange [fo...