The News International Team
Plastic products manufacturer Sintex Industries has beat the street estimates with second quarter consolidated net profit rising 46.8 percent on yearly basis to Rs 107 crore on strong sales and operational performance.
Operating profit jumped 35.8 percent year-on-year to Rs 288 crore and margin expanded by 160 basis points to 17.1 percent during the quarter.
Sunil Kanojia, Group CEO, Sintex Industries, said the margin expansion have been achieved largely due to better capacity utilization.
The company sees big business opportunities in urban solid waste management and has been investing in niche areas under the segment, Kanojia said, adding that they have been planning to tie up meaningful orders with government in its cleanliness drive.
In an interview to CNBC-TV18, Kanojia said the company has spare capacity available in the pre-fab segment, but wants capacity utilisation to improve before further capex. He expects of achieving 30-40 percent growth in the segment. Sintex’s current debt on books stands at Rs 4,200 crore.
Sintex is looking at 20-25 percent growth opportunities for FY15, Kanojia said, adding that the company typically achieves 60 percent of turnover in H2.
12:30pm Nikkei falls
Japan’s Nikkei share average tumbled 2.4 percent to a fresh two-month closing low on Tuesday on fears global economic weakness will weigh on US growth, while a stronger yen dragged down exporters such as Toyota Motor Corp and Honda Motor Co.
The Nikkei share average dropped 364.04 points to end at 14,936.51, the lowest closing level since Aug. 8.
It also broke below its 200-day moving average, also for the first since Aug. 8.
The dollar crawled up 0.4 percent to 107.235 yen, but remained in close range of a one-month low of 106.76 hit earlier in the session, reports Reuters.
12:00pm The market recouped its morning losses after WPI inflation in September dropped to five-year low. The Sensex declined 27.63 points to 26356.44 and the Nifty fell 15.45 points to 7868.80.
Wholesale Price Index (WPI) inflation in September eased to 2.38 percent from 3.74 percent in August led by fall in fuel, food and manufactured products prices. The WPI was expected to come in at 3.1 percent.
The consumer price inflation data for the month of September, which was released yesterday, cooled off to its all-time low of 6.46 percent, the lowest since India started computing consumer price index (CPI) in January 2012, led by lower food prices and fuel costs.
Top lender State Bank of India and its rival Axis Bank gained 2 percent each. State-run power equipment maker BHEL topped the buying list, up 4 percent.
Shares of Reliance Industries, Sun Pharma, Bajaj Auto, Bharti Airtel, Cipla and Tata Power gained 1-1.9 percent. However, DLF fell 26 percent followed by Sesa Sterlite, ITC, TCS, HDFC and Tata Motors with 1-4 percent loss.