An improved performance across its business verticals saw leading soda ash manufacturer, Tata Chemicals report a consolidated net profit of Rs.238.12 crore for the third quarter ended December 31, 2014, against a loss of Rs.15.93 crore in the corresponding period of the previous year. Net sales rose 5 per cent to Rs.4,820.46 crore (Rs.4,580.46 crore).
“Global soda ash demand continued to be positive with improved realisations across geographies. The restructuring exercise at Kenya has been completed and operations have turned positive after many years reporting a profit of Rs.10 crore,” R. Mukundan, Managing Director, Tata Chemicals, told at a press conference.
The U.K. soda ash operations are expected to turn positive only after September 2016 once the new turbine is installed Mr. Mukundan said adding that till then, high energy costs would hamper profitability.
The consolidated net debt stood at Rs.6,500 crore with a standalone debt at Rs.1,600 crore.
P. K. Ghosh, CFO, Tata Chemicals, said the standalone debt would be wiped out in five years while the consolidated debt would halve over the same period.
Indian operations The standalone India operations reported a 38.5 per cent growth in net profit at Rs.204.55 crore from Rs.147.69 crore. Income from operations up 13 per cent at Rs.3,019.28 crore against Rs.2,672.09 crore.
The operating profit rose a modest 1 per cent to Rs.275 crore. Mr. Mukundan attributed the better performance to consumer and chemicals businesses.
“The subsidy receivable from government was at Rs.1,664 crore at the end of the quarter and the fertilizer business continues to face headwinds due to lack of clarity in policy which has resulted in substantial production loss.”
I-shakti pulses were available across 75,000 stores and the plan was to take it to 1,10,000 stores in 2014-15. It reported a turnover of Rs.66 crore in the quarter and is likely to report a turnover of Rs.225 crore for the year. “While salt recorded a turnover of Rs.1,000 crore, pulses have the potential for 16 times that of salt in future,” Mr. Mukundan said.
According to Mr. Ghosh, the company has a capital expenditure plan of Rs.500-700 crore annually over the next five years. “It is not a high capex and the bulk of it would be on maintenance and spent on the consumer, agro and seeds businesses, besides expansion in the U.S,” he said.
Apollo Tyres Apollo Tyres on Friday reported a 45 per cent decline in its consolidated net profit of Rs.184 crore for the third quarter ended December 31, 2014 compared to Rs.338 crore in the same period in the previous fiscal.
Net sales of the company declined from Rs.3,475 crore to Rs.3,092 crore.
Onkar S Kanwar, Chairman, Apollo Tyres, said the company has maintained profit margins, despite accounting for all charges related to the rescue plan of the South African subsidiary, according to a press release.
He said the company has been able to secure the best value for all the stakeholders.
He also referred to the uncompetitive cost structure in the South African market and the continuous labour unrest. While the company was continuing with its trading operations in South Africa, it would explore newer territories for the next phase of organisations’ growth, he said. The company had initiated business rescue proceedings in the second quarter after the closure of the Durban plant.
All dues to bankers and external suppliers have been cleared, along with the retrenchment package of employees. The payouts had adversely impacting the consolidated profit of the company, the release said.
Dena Bank Dena Bank reported a net Profit of Rs.76.56 crore for the third quarter ended December 31, 2014, against Rs.67.80 crore for the corresponding period of the previous year, a growth of 12.92 per cent. Advances have increased to Rs.75,356 crore as on December 31, 2014, from Rs.69,895 crore as on December 31, 2013, showing a growth of 7.81 per cent. The credit deposit ratio stood at 70.49 per cent.
Direct agricultural advances have risen by 22 per cent to Rs.7,871 crore from Rs.6,451 crore. MSME advances stood at Rs.13,787 crore against Rs.11,902 crore, a growth of 15.8 per cent. Retail advances increased to Rs.10,005.16 crore from Rs.8,773 crore.
Interest income has increased by Rs.137.27 crore to Rs.2,671.11 crore from Rs.2,533.84 crore. Non-interest income was at Rs.196.21 crore against Rs.128.96 crore.
Gross NPA ratio as on December 2014 was at 5.61 per cent while net NPA ratio was at 3.97 per cent.
“Going forward, the bank is targeting a business growth of 12-14 per cent in 2014-15 in line with the present trend in the banking industry,” said Ashwani Kumar, Chairman and Managing Director. He also said that the bank was targeting to open 150 new branches in the current fiscal and continues its focus on retail and MSME advances while strengthening of loan processing centres.
