The News International Team
11:55 am Boardroom: Margins are improving for bakery products manufacturer Britannia Industries due to better cost efficiencies. Sharing views on the company financial performance in Q1FY15 with CNBC-TV18, managing director Varun Berry said ‘the sky is the limit as far as margins are concerned’ and the all unproductive costs are being removed by the company. The company reported a 24.9 percent growth in its first quarter standalone net profit at Rs 107.8 crore compared to Rs 86.3 crore in the year-ago period, driven by strong revenue and operating performance despite higher raw material cost. Total income from operations grew by 15.4 percent to Rs 1,634.2 crore in the quarter ended June 2014 from Rs 1,416.3 crore in the year-ago period.
11:40 am Results: GVK Power and Infrastructure has reported a loss of Rs 281.3 crore in April-June quarter, increased from Rs 30.6 crore in the year-ago period due to loss on disposal of assets during the quarter. Even higher depreciation and amortisation cost, interest cost and other expenses impacted profitability.
The loss of Rs 286.8 during the quarter was due to demolition of old terminal at Mumbai airport, said the company in its filing.
Consolidated net sales of the company grew 1.9 percent to Rs 712.7 crore in the quarter ended June 2014 from Rs 699.5 crore in same quarter last year supported by airports and roads segments.
GVK Power said revenue from airports business increased by 3.6 percent year-on-year to Rs 568 crore with EBIT loss of Rs 271.09 crore (against EBIT profit of Rs 168.82 crore Y-o-Y) in the quarter gone by.
11:20 am Boardroom: Ashok Kumar Purwaha, chairman, Engineers India says the company is now focused on overseas orders in the consultancy space, which would be a high margin business.
For the first quarter ended June, 2014, the net sales for the company stood at Rs 435 crore versus Rs 443.2 crore year on year (Y-o-Y) and EBITDA was at Rs 55 crore versus Rs 116 crore Y-o-Y. EIL’s margins halved in the first quarter to 12.5 percent versus 26.3 percent for the same quarter last year.
Purwaha expects new order wins from the international markets to lead to steady revenues post second and third quarters.
The current order book for the company is Rs 4100 crore.
Don’t miss: Extremely weak Q1 drags BHEL 5%; brokerages sell
The market is consolidating after a strong rally on Tuesday. The Sensex is up 51.39 points at 25932.16, and the Nifty up 16.30 points at 7743.35. About 994 shares have advanced, 1263 shares declined, and 71 shares are unchanged.
Capital goods, metals and realty stocks are laggards while FMCG led by HUL and ITC are leaders in the Sensex. Sun Pharma, TCS and Wipro are other top gainers. Among the losers are BHEL, Hindalco, Tata Power, L&T and Coal India.
Asian shares struggled after Wall Street snapped a two-day rally with the crisis in Ukraine sapping investor confidence as it threatens a fragile economic recovery in Europe.
Investors were wary as a convoy of 280 Russian trucks carrying humanitarian aid headed for eastern Ukraine, where government forces are closing in on pro-Russian rebels. While Western officials have voiced suspicions that Russia would use a humanitarian mission as a pretext for invading Ukraine, the Russian Foreign Ministry said it would hand off the convoy to the Red Cross after crossing the border.