Greaves Cotton construction equipment division is all set to tie-up with Samil Korea for a technology transfer, which will come into effect from 27 April 2012. This will result in technologically superior products being offered to the Indian market
Mumbai: Greaves Cotton, one of India’s top engineering companies, is looking at growing beyond construction equipment business and becoming a comprehensive infrastructure player, reports PTI.
Its construction equipment division is embarking on key business initiatives, including technology transfers and other streams of business like rentals, to re-construct its current business model, a company statement said.
The division is all set to tie-up with Samil Korea for a technology transfer, which will come into effect from 27 April 2012. This will result in technologically superior products being offered to the Indian market.
Greaves Cotton is a Rs1,700 crore, multi-product, multi-locational engineering company with core competencies in diesel/petrol engines, gensets and construction equipment.
Sunil Pahilajani, MD & CEO of the company, said, “Augmenting its growth strategy, the construction equipment division is seeking to operate in the gamut of infrastructure, offering customers superior products and solutions. Being a solution provider we are constantly working on expanding our product portfolio so as to meet customer demands.”
“The strong thrust provided by the government to the construction and infrastructure sector has further catalysed our strategy. This tie-up is a positive step taken to ensure that our products are backed by world class technology that ultimately translates into increased customer benefit,” he said.
The complete range of concrete equipment like transit mixers, concrete pumps and batching plants are manufactured at the firm’s facility at Gummidipoondi in Tamil Nadu.
In morning trade, Greaves Cotton was trading at around Rs84.25 per share on the Bombay Stock Exchange, 2.49% up from the previous close.
“Our overall numbers would have been much better had it not been for the Rs90 crore write down in our micro-finance portfolio (MFI) in Andhra Pradesh apart from Rs55 crore provisioning for there,” L&T Finance Holdings chairman Y M Deosthalee told reporters
Mumbai: L&T Finance Holdings reported nearly 45% jump in consolidated profit in January-March quarter at Rs141 crore, aided by strong loan growth, reports PTI.
The company had a net profit of Rs97.35 crore in the same quarter in the previous fiscal.
For the full fiscal, net profit grew by 16.2% to Rs454.80 crore, compared to Rs391.17 crore a year ago.
Advances grew by 39.80% to Rs25,016.98 crore compared to Rs17,894.90 crore in FY10-11.
“We are happy to announce extremely good numbers despite trying times when the industry faced many travails such as a high interest rate regime and growth deceleration. Our overall numbers would have been much better had it not been for the Rs90 crore write down in our micro-finance portfolio (MFI) in Andhra Pradesh apart from Rs55 crore provisioning for there,” L&T Finance Holdings chairman YM Deosthalee told reporters.
Healthy growth in profit was supported by strong improvement in overall loan book, improvement in net interest margin (6.25%) and higher operating efficiencies, company president N Sivaraman said.
But the microfinance sector has been a big drag on the company and its profitability.
In states other than Andhra Pradesh, the company continued with its cautious approach. The aggregate loan portfolio outside AP amounted to Rs132.21 crore.
In Andhra Pradesh, the company did not disburse any fresh loans towards microfinance while marginal collections continued.
The company made a further provision of Rs75 crore during the current year, taking the cumulative provision to Rs134.67 crore.
The firm’s microfinance business posted a wider net loss before tax of Rs122.86 crore for the year as against a loss before tax of Rs37.71 crore in the previous year.
Excluding microfinance, gross NPAs stood at Rs329.04 crore, or 1.33% of gross advances, the company said.
Its subsidiary L&T Infrastructure Finance Company (L&T Infra) achieved a growth of 45.98% during the year, while L&T Finance (L&T Finance) achieved a growth of 24.47% in loans and advances.
“We have seen sound growth in our net profit and loan assets in the last financial year despite difficult economic conditions,” chairman and managing director TCA Ranganathan told reporters
The Export-Import Bank of India (Exim Bank) posted 16% rise in net profit to Rs675 crore in the last financial year, up from Rs582 crore previous fiscal, reports PTI.
Total business crossed Rs1 lakh crore during the reporting year.
“We have seen sound growth in our net profit and loan assets in the last financial year despite difficult economic conditions,” chairman and managing director TCA Ranganathan told reporters.
The Exim Bank saw an 18% growth in its loan assets to Rs54,530 crore in FY11-12. “We expect to continue this momentum in the current financial year as far as our loan growth is concerned,” he said.
Net interest margin (NIM) improved to 2.17% in FY11-12 up from 2.07%.
According to the bank, the bank has extended line of credit (LoC) aggregating $1,499 million (around Rs7,500 crore) in FY12 and project export contracts of Rs22,975 crore during this period.
The bank has also extended assistance of Rs4,178 crore to 54 corporates as part of the overseas investment financing in 23 countries during the last fiscal.
Referring to borrowing programme in the current fiscal, Mr Ranganathan said the bank will borrow around $3-$4 billion in foreign currency and the similar amount in the domestic currency.
The bank raised borrowings of varying maturities aggregating Rs27,630 crore in FY11-12, out of which foreign currency loans stood at Rs13,333 crore.
“I don't think cost of borrowing is going to be higher after the S&P rating update. Also, it is too premature to gauge an impact due to such development at this point of time,” he said.