Triveni Engineering net profit decline due to squeezed margins in sugar business
Triveni Engineering and Industries reported 67% dip in net profit to Rs23.92 crore for the quarter ended 31 December against Rs72.94 crore in the year-ago period due to squeezed margins in sugar business.
Net sales, however, rose to Rs591.74 crore during the first quarter of this fiscal from Rs487.24 crore a year-ago.
The company, which also makes steam turbine and gears among others follows October-September period as accounting year in line with the sugar season, its mainstay.
"Sales in both the sugar and engineering businesses have gone up during the quarter. But, our net profit has declined as the realisation from sugar was higher in the first quarter of last fiscal," Triveni's executive director Nikhil Sawhney said.
The average realisation during the first quarter of the current fiscal has dropped to Rs28 per kg from Rs31 per kg in the corresponding period of the last year, he added.
"All the three engineering businesses continue to show consistent growth both in terms of turnover and profitability. Strong outstanding order book in all these businesses gives us confidence in terms of their future growth," Sawhney said.
On the outlook of sugar business, he said the estimated balanced demand-supply scenario during the current year might bring about much-needed stable pricing in the coming quarters.
India is estimated to produce 24.5-25 million tonnes of sugar during the current year against the annual demand of 23 million tonnes.
"The recoveries are fortunately higher than last year and it will result in lower cost of production. In view of the increased volume of crush, increase in sugar production and a stable pricing situation for the allied products such as power and alcohol, the overall business sentiment on sugar seems to be positive," he added.
Swanhey said the company expects to produce 520-540,000 tonnes sugar in the current year recording over 25% increase in cane crushing.
Regarding the demerger of the turbine business, he said the legal process for the demerger was currently in progress and the court's sanction might come in the second quarter of the year.
"This will enable initiation of proceedings to list the company in which this business will be vested with," he added.
On Monday, Triveni Engineering ended 5.17% up at Rs87.55 on the Bombay Stock Exchange, while the benchmark Sensex closed 2.67% up at 18,202.20.
Den Networks reported net profit of Rs7.7 crore in the December 2009 quarter
Cable television services firm Den Networks Ltd reported a growth of 19.48% in its net profit at Rs9.2 crore for the third quarter ended 31 December 2010.
The company had a net profit of Rs7.7 crore in the corresponding quarter of last fiscal, Den Networks said in a statement.
It also reported an increase of 12.93% in its total revenue during the third quarter at Rs268.2 crore as against Rs237.5 crore in the year-ago period.
Den Networks specialises in distribution of analog and digital cable television services and has a customer base of one crore households.
It has operations in Delhi, Uttar Pradesh, Karnataka Maharashtra, Gujarat, Rajasthan, Haryana and Kerala.
On Monday, Den Networks ended 0.35% down at Rs112.35 on the Bombay Stock Exchange, while the benchmark Sensex closes 2.67% up at 18,202.20.
HNG plans to increase its capacity to 1,600 tonnes a day
HNG Float Glass Ltd, an associate company of Hindustan National Glass & Ind Ltd (HNG), a glass container manufacturer, may raise Rs500 crore of debt to expand its manufacturing capacity, Mukul Somany, HNG's vice-chairman and managing director said.
According to him, the present production capacity of 600 tonnes a day will be increased to 1,600 tonnes a day.
"It requires a Rs750 crore investment. It will be a mix of debt and internal equity. Debt will be close to 60% to 65%. We will decide (on) how to raise the debt in a month or two," Mr Somany said.
HNG Float Glass has a manufacturing unit at Halol, near Vadodara, which started commercial production of float glass last year. A memorandum of understanding on expansion was inked by the company with the State Government at the Vibrant Gujarat Summit. The project is scheduled for completion in 2013-14.
Mr Somany said that this year, revenues may touch Rs1,650 crore with Rs120 crore to Rs140 crore bottom-line.
Last year, the company clocked a turnover of Rs1,371 crore with a net profit of Rs155 crore.
Saying that the company has the intention of setting up a 150- to 200-megawatt power plant, he said that "Power is one of the key inputs in the process of glass-making."