Stocks
Jayant Agro-Organics reports record net profit despite severe decline in net sales

Cyclical factors affected the topline of the castor seeds specialist but was helped by lower tax expenses, lower interest charges and higher other income 

 
Jayant Agro-Organics, a castor seeds specialist, has reported somewhat disappointing results for the second quarter of the current fiscal, even though its net profit rose. Jayant Agro-Organics’ net sales declined again, but by a larger margin this time, 27% year-on-year (y-o-y), at Rs331.98 crore for the quarter ended 30 September 2012. Similarly, operating profit declined 16% y-o-y to Rs17.04 crore. Net profit, however, rose 6%, to Rs8.75 crore, its highest ever, on account of lower tax expenses, lower interest charges and higher other income. 
 
Click here for other companies’ results.
 
A closer look at the Moneylife database revealed net profit increased, both on a sequential and y-o-y basis, despite declines in net sales and operating profit. Poor off-take in the current quarter prompted average net sales growth for the last three quarters to plummet to minus 5%. Likewise, operating profit declined 16% after expanding by 47% in the previous quarter. However, the average growth rate of operating profit stood at 51% helped mainly by last two quarters where castor seed saw a bumper production, with a record crop of 1.6 million metric tonne.  Soon after, castor seed prices crashed which affected this quarter. Despite all this, Jayant Agro-Organics’ net profit reached its highest ever, at Rs8.75 crore. It commands a high return on equity of 32% with market capitalisation quoting at 3.31 times operating profit, which is fairly attractive. 
 
India is the largest producer of castor seed and castor oil in the world and accounts for four-fifths of the world’s production, with over half produced in Gujarat followed by Andhra Pradesh and Rajasthan. Jayant Agro-Organics is into three business segments—castor oil, derivatives and power generation. Castor seeds is cyclical and dependant on the monsoons.
 
We had recommended Jayant Agro-Organics when it was Rs113.20. Currently Jayant Agro-Organics stock price is Rs142.25 at time of writing this piece.
 
Click here to learn more about Jayant Agro-Organics.
 

User

Civil Aviation Ministry grants new rights to Indian carriers for 2013

Civil Aviation Ministry has approved traffic rights to Indian carriers to fly to several new destinations across the globe for the summer and winter season of 2013 

 
New Delhi: In a major move to expand international air travel out of India, the Civil Aviation Ministry on Friday approved traffic rights for the summer and winter season of 2013 in one go, granting new rights to Indian carriers to fly to several new destinations across the globe, reports PTI.
 
The new cities include Rome, Madrid, Barcelona, Sydney, Melbourne, Nairobi, Al Najaf (Iraq), Moscow, Zurich, Macau, Tashkent and Ho Chi Minh City.
 
Indian Civil Aviation Minister Ajit Singh also directed holding of fresh bilateral negotiations to enhance air traffic rights with countries like those in the Gulf and Southeast Asia, with whom the existing rights have almost got exhausted, an official spokesperson said.
 
These countries include Singapore, Thailand, Abu Dhabi, Dubai, Saudi Arabia, Oman, Iraq, Macao and Afghanistan.
 
Air India and its no-frill subsidiary Air India Express have got their number of flights enhanced from 471 in 2012 summer to 650 in 2013 summer and from 577 in 2012 winter to 691 in the same season next year.
 
Air India has also got the rights for the first time to fly on sectors like Delhi-Rome-Madrid/Barcelona, Delhi-Moscow, Delhi-Sydney/Melbourne, Mumbai-Nairobi and Mumbai-Al Najaf.
 
Similarly, Jet Airways has been given the rights to operate on routes like Mumbai-Jakarta, Delhi-Barcelona, Mumbai-Zurich, Delhi-Tashkent and Mumbai-Ho Chi Minh City.
 
The number of its flights have gone up from 417 in 2012 summer to 539 in 2013 and 497 this winter to 602 in 2013.
 
No-frill carriers IndiGo and SpiceJet have also got enhanced number of flights, with the latter being allowed to fly on Lucknow-Al Najaf, Varanasi-Al Najaf, Delhi-Macau and Delhi-Ho Chi Minh City.
 
While welcoming the move, industry sources it was an unprecedented measure as flight schedules for winter and summer seasons have so far been approved each year and not in one go.
 

User

Kudankulam to start power production by first week of December

Controversy-hit Kudankulam Nuclear Power Project will start its production by the first week of December and the first tranche of entire 1,000MW of power will be provided to Tamil Nadu

 
New Delhi: Controversy-hit Kudankulam Nuclear Power Project (KNPP) will start its production by the first week of December and the first tranche of entire 1,000MW of power will go to Tamil Nadu, reports PTI quoting Union minister V Narayanasamy.
 
He said enriched uranium has been fed in the core of the vessel and the lid was closed. "Now, the vessel is being pressurised. After that trial run will start. That will go for about 20 days. Thereafter the production is likely to start. Probably in the end of November or first week of December," he told PTI in an interview.
 
Citing letters from Tamil Nadu Chief Minister Jayalalitha to Prime Minister Manmohan Singh on power shortage, the Minister of State in the Prime Minister's Office (PMO) said the "entire 1,000 MW (of power from the plant) has to be given to Tamil Nadu".
 
India's atomic power plant operator, Nuclear Power Corporation of India Ltd is setting up the plant at Kudankulam in Tamil Nadu's Tirunelveli district.
 
Narayanasamy said the Centre is getting support from ruling AIADMK on the project. He said since law and order is a state subject, the state government has to support us for the purpose of providing security to the plant.
 
"Therefore I said the DMK has supported us (as the project started when they were in power in the state). They are supporting us. Now the AIADMK after coming to power, they are also supporting us for the project. Therefore, we have support from both of them. This is what I said. But it was twisted by the media," the minister said.
 
His reaction came on media reports quoting Narayanasamy that DMK has initially supported the Kudankulam power project, but later backed out. Rejecting the report, Narayanasamy said, "So many have tried to divide Congress and DMK and now it is media's turn.
 
"We have to carry state government with us. Therefore the state government is supporting (on Kudankulam). On the nuclear project they are supporting us."
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)