Hindalco, the flagship company of the Aditya Birla group, reported a drop of 78 per cent in its net profit for the second quarter of 2014-15 at Rs.79 crore owing to one-time provisions for additional levy relating to the allocation of coal mines.
In September 2014, the Supreme Court had declared all allocations of the coal blocks made since 1993 as illegal and had quashed the allocation of 204 coal blocks. A statement from Hindalco said these coal blocks include Talabira-I block held and operated by the company and three other coal blocks namely Mahan, Tubed and Talabira II & III allocated to the company jointly with others. These were being developed by respective joint venture companies established for that purpose.
According to a company statement, the exceptional items include liability provision of Rs.563 crore towards additional levy of Rs.295 per tonne of coal extracted by Hindalco from the commencement of the production of coal from Talabira I mine in 2013-14 up to September 2014 in compliance with the Supreme Court order and a provision of Rs.258 crore towards diminution in carrying value of investment in Aditya Birla Minerals, Australia, a subsidiary of the company, on significant decline in value of the company’s investment therein as reflected in decline in its quoted share price over a considerable period of time.
However, the company’s net sales rose 36 per cent to Rs.8,554 crore, which the company attributed to higher volume and realisations. The operating profit too was up 37 per cent at Rs.1,120 crore, ‘despite a sharp surge in the cost of coal’, the company statement said.
Indian Oil
Indian Oil Corporation reported a net loss of Rs.898.46 crore in the second quarter ended September 30, 2014, against a net profit of Rs. 1,683.92 crore in the same period in the previous year. The loss was due to a drop in international oil rates which led to massive inventory loss of Rs. 4,272 crore in the second quarter as compared to an inventory gain of Rs.4,635 crore,” according to B. Ashok, Chairman, IOC said. This was because global oil prices slumped from $111 per barrel to $95. IOC lost $1.95 on converting every barrel of crude oil into fuel as compared to a positive margin of $7.43 per barrel, he said.
Sales were up 4.5 per cent to 17.126 million tonne while pipeline throughput rose 5.9 per cent to 19.039 million tonne.
BPCL
Bharat Petroleum Corporation Ltd (BPCL) has reported a 50 per cent drop in net profit at Rs. 464.20 crore in the second quarter ended September 30, 2014, as refining margin dipped on slumping international oil prices. The net profit was Rs. 931.13 crore in the same period in the previous year. The turnover was marginally higher at Rs.62,025.16 crore in the second quarter as compared to Rs.61,784.51 crore in the year-ago period. Sales rose to 17.13 million tonne when compared to 16.38 million tonne.
Sun Pharma
Sun Pharma said its consolidated net profit rose by 15 per cent to Rs.1,572 crore for the second quarter ended September 30, 2014, against Rs.1,362 crore during the same period in the previous year.. Net sales increased by 13 per cent to Rs.4,751 crore. “Our Q2 performance was strong and continued to achieve high level of profitable growth, in-line with our expectations,” Sun Pharma Managing Director Dilip Shanghvi said. In a separate filing, the company said its board has approved merger of Sun Pharma Global Inc, a wholly owned foreign subsidiary of the company, with itself, from January 1, 2015.
Orchid Chemicals
Orchid Chemicals & Pharmaceuticals has posted a turnover of Rs.175 crore during the second quarter ended September 30, 2014 against Rs.380.47 crore registered during the corresponding period last year.
The company posted a net profit of Rs.272 crore compared to loss of Rs.200.34 crore for the year-ago period.
According to a release, during the second quarter, Orchid implemented the Business Transfer Agreement (BTA) with Hospira Healthcare India Private Ltd., for the sale and transfer of its Penicillin, Penem API business, API facility in Aurangabad and the corresponding R&D infrastructure in Chennai. Extra ordinary items – gain (net of tax of Rs.93.41 crore) represented profit on sale of the undertaking.
Orchid Chemicals and Pharmaceuticals Managing Director K. Raghavendra Rao, said: “With the implementation of the approved Corporate Debt Restructuring package and the completion of business transfer to Hospira, the operations are getting streamlined with the infusion of working capital into the system. We are confident of the rebuilding process and hope to generate value to the stakeholders in the ensuing quarters.”
The company also extended its current financial and accounting year by six months to March 31, 2015.
Capital First
Capital First has reported a sharp rise in its net profit at Rs. 27.05 crore in the quarter ended September 30, 2014, against Rs. 7.16 crore in the same period in the previous year. The growth in income was primarily driven by higher NII and fee income, which together grew 51 per cent to 154.84 crore from Rs. 102.40 crore in the year-ago period. The company’s assets under management grew 34 per cent to Rs.11,047 crore as on September 30, 2014, up from Rs.8,244 crore as on September 30, 2013.
