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Bajaj Auto net profit dips in Q2 at Rs 180 cr

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BAJAJ Auto Ltd (BAL) on Wednesday reported a lower profit after a tax of Rs 179.9 crore for the second quarter of 2004-05 as against the previous corresponding Rs 193.4 crore. The company's sales and income from operations amounted to Rs 1,448.2 crore (Rs 1,249 crore for the year-ago period).

Other income and revenues from wind power dipped to Rs 88.3 crore (Rs 117.6 crore). Gross profit after interest and before depreciation and tax was Rs 327.7 crore (Rs 344.1 crore).

Profit before tax was almost on par at Rs 264.9 crore (Rs 264.4 crore) but provision for tax increased to Rs 85 crore (Rs 71 crore) leading to a lower profit after tax.

BAL's results were affected by a combination of factors. According to Mr Sanjiv Bajaj, Executive Director, FY04 was characterised by a low tax rate averaging 24 per cent for the whole year and 27 per cent for the second quarter.

This level structured through investment in tax-free instruments, compared with a normal corporate tax rate of 35-36 per cent.

"It was more like an aberration," he said.

With government rules on the subject having changed since, the tax rate in the just concluded quarter touched 32 per cent, a level that may persist through the remaining part of the fiscal as well.

Additionally, raw material cost, driven by high steel prices, will need to be tackled through the year, particularly as production volumes are rising.

For the quarter, BAL's total sales volume was up 17 per cent to 445,195 units (380,273 units). Despite this, Mr Bajaj pointed out, the company's EBITDA percentage rose to 16.8 per cent in the second quarter from 15.3 per cent in the first quarter.

BAL's profit from automobile operations gained by 21 per cent to Rs 187 crore (Rs 155.2 crore).

The company's official statement said, "Seven hundred and fourteen workmen opted for the voluntary retirement scheme in July 2004.

The total outflow on this account is Rs 49 crore. This will be charged equally over three quarters of the current financial year.

"Accordingly in this quarter, a sum of Rs 16.3 crore has been charged."

Export earnings were up 41 per cent to Rs 181.7 crore (Rs 128.6 crore). The company's non-operating income for the quarter declined to Rs 78.2 crore (Rs 103.9 crore).

As of end-September, the cost of its investment portfolio was Rs 4,151.1 crore (Rs 3,907.2 crore at end-March 2004) and its corresponding market value, Rs 4,521 crore (Rs 4,510.8 crore).

Mr Bajaj attributed the dip in non-operating income to the declining interest rate regime and gains in earlier times from tax-free investment opportunities.

For the first half, BAL had a profit after tax of Rs 344.5 crore (Rs 354.4 crore) on sales and income from operations of Rs 2,674.4 crore (Rs 2,323.1 crore

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Welspun Gujarat Q2 net profit zooms 114%

Saw pipe maker Welspun-t Stahl Rohren has registered a net profit of Rs 140 crore for the

second quarter ended September 30, 2009, up 114% against Rs 65 crore in the corresponding

quarter previous fiscal.

Further, company’s total income grew up by 21% to Rs 1816 crore for the quarter ended September 30, 2009 as against Rs 1497 crore for the quarter ended September 30, 2008

However, its sales rose to Rs 2173 crore in the latest quarter ended September 30,

against Rs 1493 crore in the same quarter previous fiscal.

It should be noted that the stock of Welspun Gujarat had outperformed the market

over the past one month till 23 October 2009, rising 5.40% as compared to the Sens*x

0.55% rise. The stock closed today at Rs 283 on BSE, up 1.20% compared to its previous

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Dabur India Q2 net surges 31%

Dabur India,the fourth largest FMCG Companu in India, has registered a surge of 31 per cent in its consolidated net profit during the second quarter ended September 2009.

The company posted a net profit of Rs 140.34 crore for the said period, against Rs 107.41 crore in the year-ago period driven by strong volume growth across different segment.

The company’s revenue during the quarter stood at Rs 855.06 crore, up 22.4 per cent as against Rs 698.45 crore in the corresponding period last fiscal.

Apart from announcement of results, the company has also declared an interim dividend of 75 per cent for 2009-10 at Re 0.75 per share.

The stock of the company closed today at Rs 382, up 3% on BSE. The scrip has made intraday high and low of Rs 387 and Rs 383 respectively.

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Edelweiss Capital

Edelweiss Capital, one of the leading Financial services company based in Mumbai, has notified that its consolidated net profit grew by 49.24 per cent to Rs 65.07 crore for the second quarter ended September 30, over the same period last year.

The company’s total income also surged to Rs 260.57 crore in the latest quarter, against Rs 249.59 crore in the same quarter previous fiscal.

On standalone basis, the company has registered a net profit of Rs 5.06 crore in the quarter under review, up 6.75 per cent, compared to Rs 4.74 crore in the same quarter last fiscal.