CompanyWatch-MRPL,MTNL,Pentafour,Ingersoll-Rand (India),Sanghvi Movers, Mirza Tanners
Feb. 8 - 21, 1999
Financial Results
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Infotech Enterprises Mapping its own future
Infotech Enterprises provides a wide range of software services for digitisation, CAD/GIS applications development, enterprise software and Internet solutions. It has reported a 219% rise in sales to Rs 6.07 cr and 232% rise in net profit to Rs 1.96 cr for the third quarter ended Dec.'98. For the 9 months, sales at Rs 14.24 cr have risen 148%, and net profit at Rs 4.43 cr has risen 155%. The growth rates are sharply higher than the 37% sales and 15% net profit growth reported for FY 9803.
Having done extremely well in the services market, the company is now laying greater emphasis on product development. It offers EWIS, an ERP solution, geologic (a routing solution) and digital pages (a unique consumer information system integrating multimedia and mapping technologies).
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Infotech Enterprises
Big growth rates
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9812(3) Var.(%) 9812(9) Var.(%) 9803(12) Var.(%)
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Sales 6.07 219 14.24 148 9.67 37
OPM (%) 39.5 38.6 35.7
OP 2.40 189 5.49 133 3.45 13
Interest 0.18 100 0.40 90 0.29 32
Gross Profit 2.22 200 5.09 137 3.16 12
Depreciation 0.26 73 0.66 61 0.57 50
Tax 0.00 0.00 0.06 -76
Net Profit 1.96 232 4.43 155 2.53 15
EPS (Rs)* 14.0 10.5 4.5
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* annualised on an equity of Rs 5.6 cr Figures in Rs cr
Source: Capitaline Ole
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Infotech had allotted 80,900 equity shares to Infotech ESOP Trust at Rs 10 per share, with a premium of Rs 100 per share, to implement the employee stock option scheme within the framework of SEBI guidelines. This will enable several employees to own stock in the company and ensure better retention of talent.
The company has also entered into an agreement with Navionics of Italy, the world leader in the production of seamless marine electronic charts for digitisation and conversion services. Infotech will be converting the navigation charts for Navionics over the next two years. The agreement envisages Infotech establishing a special team of CAD engineers to work exclusively on Navionics projects for the development of marine naval charts for different regions of the globe.
Vorin Laboratories Improving chemistry
After an adverse 9803, Vorin Laboratories is back on the growth track. Last year, a fall in quinolone prices had squeezed its profit margins and sales. Sales were 6% lower at Rs 46.58 cr and net profit dipped 78% to Rs 46 lac. However, in the first 9 months ended Dec.'98, sales has increased 37% to Rs 51.92 cr and net profit has ballooned 581% to Rs 1.77 cr. On an annualised basis, the profit would be 13% higher than that achieved in FY 9703. The dip in FY 9803 has, thus, been successfully overcome.
Growth in the first 9 months has been led by domestic sales. At Rs 38.81 cr, the first 9 months' domestic sales are already higher than last year's Rs 28.53 cr. Exports amounted to Rs 15.1 cr for the period as against Rs 18.04 cr in FY 9803.
In the third quarter, sales are 16% higher at Rs 12.19 cr and net profit is 173% higher at Rs 41 lac. Exports at Rs 5.04 cr have grown faster at 38% compared to the 4% growth in domestic sales to Rs 7.14 cr. OPM at 11.6% in the third quarter is higher than 10.1% for the 9 months, but it is still lower than the 12.6% achieved in FY 9703.
MRPL Expansion on schedule
The phased decontrol of petroleum products, with effect from Apr.'98, seems to have affected Mangalore Refinery and Petrochemicals (MRPL)'s performance. In the nine months ended Dec.'98, its sales have touched Rs 1,861 cr compared to Rs 1,354 cr for the full year 9803. However, net profit at Rs 20.94 cr is lower than Rs 28.38 cr for 9803.
In the first half, MRPL's sales were up 71% to Rs 1,198 cr, but net profit was lower by 19% to Rs 18.2 cr. In the third quarter, sales amounted to Rs 662.43 cr and net profit, Rs 2.74 cr. The company has not published the corresponding previous quarter's figures. Equity capital has increased from Rs 415.16 cr to Rs 792.15 cr due to the allotment of 376.947 million equity shares of Rs 10 each (at a premium of Rs 9.26) in Dec.'98 on conversion of convertible debentures held by the promoting companies.
MRPL is a joint venture between Hindustan Petroleum Corporation (HPCL) and the Aditya Birla group. It is considering the option of picking a 26% stake in Petronet India's project for a pipeline linking Mangalore to Bangalore. The project is scheduled to be commissioned by end-2001 and it will be a 364-km multi-product pipeline from MRPL to Bangalore. The pipeline will be designed for a final throughput of 8.5 mln t, but other facilities like a pumping system and loading facilities are currently designed for a throughput of 5.6 mln t. MRPL will transport motor spirit, superior kerosene oil, high speed diesel, aviation turbine fuel and naphtha to cater to the consumption zones of Karnataka and Andhra Pradesh.
The company's Rs 3,700-cr expansion plan is on schedule. With more than 80% of the infrastructure work already completed, MRPL's capacity expansion from three mtpa at present to nine mtpa would be completed by Nov.'99.
MTNL First to buy back?
MTNL's revenues grew 11% to Rs 1,306.88 cr in the third-quarter 9812 compared to the 15% growth to Rs 3,910.57 cr in the nine months 9812 and 15% growth to Rs 4,654.59 cr for the previous year 9803. However, other income shot up 161% to Rs 55.99 cr for the third quarter and 205% to Rs 141.37 cr for the nine months compared to the 91% growth to Rs 124.74 cr for the full year 9803. The sharp rise in the other income was also accompanied by a sharp fall in interest charges which fell 43% to Rs 10.56 cr in the third quarter, dipped 25% to Rs 47.43 cr for the 9 months, and dropped 41% to Rs 86.62 cr in the previous year 9803. The rise in other income and fall in interest charges are mainly due to the availability of GDR funds since Dec.'97, but these are yet to be deployed in the business. Thus, in spite of a moderate growth in revenues, MTNL's net profit growth has been robust at 25% to Rs 340.54 cr for the third quarter, and 27% to Rs 1,015.4 cr for the nine months.
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MTNL
Fall in interest and rise in other income
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9812(3) Var.(%) 9812(9) Var.(%) 9803(12) Var.(%)
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Sales 1306.88 11 3910.57 15 4654.59 15
Other Income 55.99 161 141.37 205 124.74 91
OPM (%) 51.69 52.61 49.99
OP 675.55 15 2057.20 24 2327.04 8
Interest 10.56 -43 47.43 -25 86.62 -41
Gross Profit 664.99 17 2009.77 26 2240.42 12
Depreciation 160.45 4 498.92 20 585.62 14
Tax 164.00 16 495.45 29 524.67 -4
Net Profit 340.54 25 1015.40 27 1130.13 21
EPS (Rs)* 21.6 21.5 17.9
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* annualised on an equity of Rs 630 cr Figures in Rs cr
Source: Capitaline Ole
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The company continues to be on the growth track, thanks to its continuing monopoly in basic telecom services in Mumbai and Delhi. Though a private player, Hughes-Ispat, has started operations in Mumbai, they are on a very small scale. With the growing popularity of the Internet, it is anticipated that growth in MTNL's revenues will also start gaining momentum in the coming months. Moreover, the company recently announced the launch of its own Internet service in Delhi and Mumbai, and slashed Internet subscription charges to 15% below those offered by Videsh Sanchar Nigam. It has aggressive plans to expand the market with a target of one lac subscribers by the turn of this century, both in Delhi and Mumbai.
A revision in tariff along with bundling of a services package is also expected in three months, when MTNL's combined subscriber base reaches 50,000. Even if MTNL is not successful in the Internet segment, it will end up a winner since access to the Net through private agencies or PSUs will ensure that the company's revenues from basic services grow till the private operators gain critical mass to become aggressive.
MTNL has also decided that it will pay a maximum of Rs 176 per share to buy back its shares from existing shareholders. It has set aside up to Rs 528 cr to acquire 30 million shares through buyback.
Pentafour Comm. Strong signals
For the third-quarter 9812, Pentafour Communications has achieved a turnover of Rs 15.74 cr (a growth of 54%), of which Rs 3.26 cr has come from exports (a growth of 20.7%). Net profit at Rs 2.73 cr is up 48%. For the nine months 9812, it has reported a turnover of Rs 43.54 cr (a growth of 53%) and a net profit of Rs 7.89 cr (a growth of 42%). The company has two strategic business units (SBUs), training and system integration. The training SBU has achieved a turnover of Rs 19.90 cr (45.7%) and system integration, Rs 23.64 cr (54.3%) of the total turnover for the nine months ended Dec. '98.
Pentafour has re-located to a fully-owned 30,000-sq ft office where specialised skill and employment-oriented training on IBM, multimedia, client server, Internet, CAD/CAM, case tools with ERP and application streams, is conducted. As a part of its expansion, the company has established 59 Pentasoft training centres in India and three overseas centres in Nepal, Bangladesh and Singapore. It is planning to increase the number of centres by 50% by the end of this financial year. The company has franchised 'Pentafour' to reputed educational institutions and it recently launched knowledge-based training (KBT) centres which primarily focus on client-server technology.
Pentafour Communications is marketing and implementing PentaBank, a total branch automation software, and has bagged orders from NCCBL, Dhaka, and Sri Guru Siddeswara Co-operative Bank, Karnataka. Currently, customised solutions are provided at Taib Bank,Bahrain, for establishing Internet and intranet facilities. The third quarter also saw the launch of a hospital management software called Care + Cure which provides total solution to the hospital and health industry. The geographical information system (GIS) division has bagged prestigious orders from Aeronautical Development Agency,Bangalore, and Institute of Remote Sensing, Anna University.
By integrating hardware, software and networking, Pentafour Communications has been making good progress in selling IBM AS/400 mid-range servers and Netfinity servers. It has sold 51 IBM AS/400 mid-range servers during this quarter, and has been rated as No. 1 business partner for IBM on sales executed for the IBM AS/400 server. Pentafour has opened project offices in the US and Singapore and these are concentrating on CAD/CAM projects and related areas.
Ingersoll-Rand (India) Impressive results
Ingersoll-Rand (India) (IRI) has reported an impressive performance for the third-quarter 9812. Operating profit has increased substantially by 19% to Rs 36.17 cr on sales of Rs 94.68 cr (up 3%). The net profit for the third quarter has risen by 20% to Rs 23.48 cr, which is even higher than that achieved in the first-half 9809 (Rs 20.55 cr). The growth in profitability has been mainly aided by the increase in OPM, from 33.1% to 38.2%. Moreover, interest costs have been kept under check lately and they have decreased further by about 76% to Rs 0.20 cr. The company's sales in the previous year, at Rs 393.77 cr, was higher because of the part execution of a major order from ONGC (Rs 137 cr). The balance of the order is to be executed in the current year (Rs 30 cr) and the next year (Rs 40 cr).
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Ingersoll-Rand (India)
Rise in OPM
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9812(3) Var.(%) 9812(9) Var.(%) 9803(12) Var.(%)
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Sales 94.68 3 252.21 -15 393.77 31
OPM (%) 38.2 27.6 21.1
OP 36.17 19 69.70 -4 82.91$ 30
Interest 0.20 -76 1.35 -58 3.44 -53
Gross Profit 35.97 22 68.35 -2 79.47 41
Depreciation 1.08 -19 4.31 -6 5.99 16
Tax 11.41 30 20.01 1 22.50 35
Net Profit 23.48 20 44.03 -3 50.98 47
EPS (Rs)* 18.4 16.1
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* Projected on an equity of Rs 31.57 cr $ After VRS expense of
Rs 7.57 cr Figures in Rs cr
Source: Capitaline Ole
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IRI manufactures air and gas compressors, and construction and mining equipment, and is the largest player in these product categories. Compared to some of its competitors like Atlas Copco and Elgi Equipment, IRI's performance has been much better in the recent past, mainly because of its well-diversified product range and wider customer base. Lately, the construction and mining equipment division has put up a better performance. The company also exports about 15% of its net sales. Moreover, while controlling costs, it has tried to reduce cycle time and improve operating efficiency and asset utilisation.
Deregulation of the mining sector and coal pricing, and the rise in infrastructure activities, including civil construction, will benefit IRI in the long run. It is also aided by the technological strength and wide product range of its parent, the US$ 7.1-bln Ingersoll-Rand, US (holding : 74%). The parent is a major diversified industrial equipment and components manufacturer. It has recently divided its activities into four new segments - speciality vehicles, air and temperature control, hardware & tools and engineered products - replacing the earlier three segments, and is set to record good results for the year- end 9812.
Sanghvi Movers Steep growth
Sanghvi Movers has reported 76% growth in income from operations to Rs 12.93 cr in the third quarter ended Dec.'98. Growth in gross and net profit is 96% to Rs 6.07 cr and 103% to Rs 4.04 cr respectively. For the nine months ended Dec.'98, sales, gross profit and net profit are Rs 35.12 cr, Rs 15.41 cr and Rs 9.68 cr, with corresponding growth rates of 81%, 90% and 104%. The company will be deciding the tax liability at the year-end. Equity remains at Rs 6.7 cr.
Incorporated in Nov.'89, Sanghvi Movers was promoted by C P Sanghvi and A P Sanghvi. It is engaged in material handling for its customers, and provides an entire range of services which include movement of materials, erection of equipment and assistance in fabrication. It also provides skilled personnel and the required engineering services.
The company's services find application in core-sector projects. It had come out with a public issue in Feb.'95 at a premium of Rs 75 to part-finance the acquisition of equipment and assets meant for expanding its activities.
Mirza Tanners 50% interim dividend
On a 16% growth in sales to Rs 26.03 cr, Mirza Tanners has reported 46% rise in net profit to Rs 4.97 cr in the third quarter. For the nine months, sales and net profit are Rs 73.46 cr and Rs 10.83 cr respectively, with corresponding growth rates of 14% and 56%. The board of directors has declared an interim dividend @50% with 16 Feb.'98 as the record date.
Though, due to demand recession, the company could not increase price realisation, a better currency management, fall in cost of raw material and process improvements have helped to increase the profit margins. Interest and financial charges were also reduced, thanks to better control in inventory.
Mirza Tanners' efforts to increase sales under its own brands, Red Tape and Oakridge, have started yielding better results. Red Tape is well established in Europe, Australia and South Africa. Response from the domestic market also is quite encouraging. The company has taken necessary steps to update design with the help of its own design studio, and the new designs are welcomed by distributors both in and outside India.
The new factory being set up at Noida is expected to commence trial run in Feb.'99 and will help increase exports and sales next year. A Rs 12-cr expansion-cum-modernisation programme is underway and it is financed by Rs 5 cr in preference capital and internal
(Source:CMOTS) |
