Karur Vysya Bank has reported a 17.2 per cent rise in its net profit for the second quarter ended September 30, 2012, to Rs. 132.75 crore from Rs. 113.30 crore in the corresponding quarter in the previous fiscal.
The bank’s total income rose by 32.7 per cent to Rs. 1,123.64 crore from Rs. 846.76 crore.
Net interest income grew by 32 per cent year-on-year and stood at Rs.285.77 crore as against Rs.216.47 crore, on account of higher growth in the lending as evidenced by an increase in average advances of 31.6 per cent, the bank said in a release.
Other income for the current quarter increased by 13.8 per cent to Rs. 84.99 crore from Rs. 74.71 crore.
Net interest margin was 3.06 per cent as compared to 3.07 per cent in the corresponding quarter last year.
The total business of the Bank stood at Rs. 59,121 crore as at September 30, 2012. The gross NPA ratio fell to 1.26 per cent from 1.48 per cent while the net NPA stood at 0.32 per cent as against 0.29 per cent during the corresponding period last year, with a provision coverage ratio of 75.16 per cent.
J K Tyre
J K Tyre & Industries has turned in improved results during the second quarter with a net profit of Rs.25.9 crore against a net loss of Rs.54.9 crore n the same period last year. It also reported net sales of Rs.1,313 crore against Rs.1,240 crore in the same quarter last fiscal.
CFO A. K. Kinra told The Hindu that the “huge turnaround” was possible due to a relative stability in rubber prices among other reasons.
These included an improved product-mix, whereby more high-value products were sold, coupled with an emphasis on the replacement-market where returns were better.
The company said that with the commissioning of the greenfield project in Chennai, its annual capacity had now crossed 20 million tyres across nine plants. Its Mexican plant (through an acquisition) had now entered the profit zone, according to Mr Kinra.
However, the improved results do not lead to an automatic fast-tracking of a proposed brownfield expansion plan.
“This will hinge on the ability of the market to absorb the products” Mr Kinra said.
Biocon
Biocon, on Wednesday, reported a 9 per cent increase in its net profit at Rs.170 crore for the half-year ending September, 2012.
Revenues went up by 23 per cent to Rs.1,235 crore during the period.
Referring to the 54 per cent increase in research and development costs during the first-half, CMD Kiran Mazumdar-Shaw said it reflected the “progress” Biocon had made in its `bio-similar and “novel molecule” programmes in European trials for rh-ínsulin which “has generated positive interim data.
Ms. Shaw, while admitting that rising costs had “muted profitability,” R&D expenditure was “a key driver of exponential growth in the future.”
