NEWS & VIEWS : 30th,MAY,2012 = ONGC : DOES WELL IN Q4 = TATA MOTORS DOES WELL IN Q4 = BRITANNIA INDUSTRIES does well in Q4 & FY 2012 = HIGH COURT STIKES DOWN MINORITY RESERVATIONS

NEWS & VIEWS TODAY

30^th,MAY,2012

ONGC : DOES WELL IN Q4

TATA MOTORS DOES WELL IN Q4

BRITANNIA INDUSTRIES Q4 & FY 2012 GOOD PERFORMANCE

HIGH COURT STIKES DOWN MINORITY RESERVATIONS

1.    NEWS : ONGC has declared impressive, Consolidated Results: Net Sales :-Rs.146370.56 Cracs for FY 2012 against Rs. 117610.59 Cr for FY 2011. Net Profit of Rs. 28143.61 Cr for FY 2012 against Rs. 22455.93 Cr for FY 2011. Dividend Declared : Rs.2 (per Eq.share of Rs.5). 

Standalone Results:-Net Sales of Rs. 75758.41 Cr for FY 12 against Rs. 65841.79 Cr for FY 11. Net Profit of Rs. 25122.92 Cr for FY 12 against Rs. 18924 Cr for FY 11. Net Profit for Q4 is Rs.5644 Cr ( Rs.2791 Cr in Q4 FY 11). ONGC paid Rs.14170 cr for subsidizing diesel, domestic LPG per dollar  off set this. Every Rupee of depreciation increases top line by Rs.1600 Crs, says ONGC. ONGC plans to invest Rs.121737 Cr in 12^th Plan.  ONGC’s NPT rose 33% to Rs.25,123 cr from FY 11. It has notified 2 more discoveries – one of Gas in AP, and another of OIUL in Gujarat. Overall, ONGC performance is Impressive. Going by its successful CAPEX PROGRAM and its earlier Results, ONGC is a good bet for medium to long / term investors.

2.    TATA MOTORS :- TATA Motors has done well in both Q4 and  FY 2012.Consolidated Net Revenue grows by 36% to Rs 165,655 cr in FY 2011-12; Consolidated Profit grows 46% to Rs. 13,517 cr (Rs. 9,274 cr in FY 2010-11); Details can be seen at (in this Blog) : http://wiseinvestmentideas.blogspot.in/2012/06/tata-motors-q4-fy12-fy-2012-very-good.html

3.    BRITANNIA INDUSTIRES :- BIL has reported revenue growth of 16.8% in Q4 and 17.8% for FY12, on a standalone basis, at Rs. 1,309.6 Cr & Rs. 4,947 Cr respectively. Consolidated revenue at Rs. 5,460.8 Crs increased 19% for FY 2012.

Net Profit for Q4 increased 22.6% and for FY 2012, it increased 28.5%, on a standalone basis, at Rs. 53 Crs & 186.7 Crs respectively. Consolidated net profit growth was 48.5% at Rs. 199.6 Cr.

It has recommended a dividend of 425% i.e. Rs.8.5 / share. 

4.     HIGH COURT STIKES DOWN MINORITY RESERVATIONS :- AP High court has struck down the reservation scheme proposed by UPA Government on the basis of Minority religion concept. On one side, Government is doing many things - to REDUCE JOB OPPORTUNITIES for all,  but, on the other side, it is extending Reservation concept, to those groups who matters in vote bank Politics. If only Governments at Centre and States pursue Growth as the first aim of Government, distributive justice makes sense. Else, distributing Jobs, made scarcer by Government itself -  is meaningless. 

Government must aim to create huge opportunities FOR ALL – either for Jobs or for self employment or for ENTREPRENEURSHIP – may be in the reverse order. 

It must Promote Entrepreneurship in everyone who comes forward. Then, jobs will come automatically for all. Reservation does not create a single Job. If X and Y are unemployed –Give the job to any one of them – the other still remains as unemployed. Government is not LOOKING at all, at all those unemployed persons. All of them, irrespective of caste, or religion, need Job or self employment. 

USA publishes weekly statistics of unemployed persons. It is high time, Indian Government also does the same. And then, create Jobs for all of the unemployed. When this happens, we do not need reservations at all. 

Else, Reservations remain an appeasement Game and Vote Bank Politics, as opposition Parties accuse. The danger in reservations is – it is DIVIDING THE PEOPLE’S MINDSET -  in a very ugly manner, against each other. Now- Government wants to appeal to the Supreme Court. 

I wish, Government also take all possible steps to UNITE ALL INDIANS – rather than divide them on every conceivable concept.

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BRITAANNIA INDUSTRIES LTD = QUARTERLY RESULTS = FOR Q3 FY 2012 = Q/E DEC,2011 = NET SALES UP 15.5%; NPT UP 44.8% YoY

Britannia Industries Limited

NSE Symbol        BRITANNIA

BRITANNIA INDUSTRIES LTD  has declared its results for the third quarter ending Dec,2011.

Net Sales in Q3 FY 12 stands at Rs.1247.41 cr – down by  -3.61% from Q2 FY 12 (previous Qtr); and up by 12.76% from Q1 FY 12(1st qtr); and up by  15.5% from Q3 FY 11 (the corresponding Qtr).

Raw Materials consumption in Q3 FY 12 stands at Rs.658.60 Cr – down by -8.64 % from Q2 FY 12 (previous Qtr); and up by 6.14% from Q1 FY 12(1st qtr); and up by  7.68% from Q3 FY 11 (the corresponding Qtr).

Traded Goods in Q3 FY 12 stands at Rs.139.40 Cr – down by -0.99% from Q2 FY 12 (previous Qtr); and up by  19.78% from Q1 FY 12(1st qtr); and up by  26.53% from Q3 FY 11 (the corresponding Qtr).

Other Expenditure  in Q3 FY 12 stands at Rs.341.27 Cr – down by -0.52% from Q2 FY 12 (previous Qtr); and up by 13.97% from Q1 FY 12(1st qtr); and up by  23.34% from Q3 FY 11 (the corresponding Qtr).

Total Expenditure in Q3 FY 12 stands at Rs.  1178 Cr – down by -5.27 from Q2 FY 12 (previous Qtr); and up by     10.43% from Q1 FY 12(1st qtr); and up by      13.78% from Q3 FY 11 (the corresponding Qtr).

Profit from Operations in Q3 FY 12 stands at Rs.7110 Cr – up by 36.39% from Q2 FY 12; and up by 74.39% from Q1 FY 12(1st qtr); and up by  49.56% from Q3 FY 11 (the corresponding Qtr). Expenditure has grown less than proportionately compared to Sales and has contributed to good Growth in profits.

Profit before tax in Q3 FY 12 stands at Rs.7470 Cr – up by 43.79% from Q2 FY 12; and up by 30.41% from Q1 FY 12(1st qtr); and up by  47.08% from Q3 FY 11 (the corresponding Qtr).

Tax expense in Q3 FY 12 stands at Rs.  2063 Cr – up by 46.31% from Q2 FY 12 (Previous qtr); up by 33.27% from Q1 FY 12(1st qtr); and up by  53.38% from Q3 FY 11 (the corresponding Qtr).

Net Profit in Q3 FY 12 stands at Rs.5407 Cr – up by a GOOD 42.85% from Q2 FY 12 (Previous qtr); up by 29.35% from Q1 FY 12(1st qtr); and up by  44.8% from Q3 FY 11 (the corresponding Qtr).

Face Value is  Rs.2 and  Paid Up Equity is Rs.23.89 Cr

Basic EPS  in Q3 FY 12 stands at Rs.4.53; at Rs.3.17 in Q2 FY 12; Rs.3.5 in Q1 FY 12; and Rs.3.13 I Q3 FY 11.

Annual EPS on this Basis will be around Rs.15.73.

Current Market Price (at FV of Rs.2) is  Rs.519;   While the 52 week high price is Rs.512 and the  52 week low price  is Rs.295.20.

The PE ratio is 32.99.

OTHER DETAILS

The YTD Dec,2011 Revenue is Rs.3647.8 Cr – a growth of 18.2% and NPT of Rs.133.7 cr an increase of 31%

YTD Dec,2011 consolidated sales is Rs.4012.1 Cr up by 19.1% and consolidated Net profit is Rs.138.3 cr, up by 43.5%.

Britannia says – it has launched a range of Savory products – Nutrichoice Multigrain thins, Nutrichoice Mutigrain Roasty and 50-50 snackuits, which provide healthy snacking options.

RESULTS TABLE

(STAND ALONE)

Britannia Ind	31-Dec-11	30-Sep-11	%Dif1	30-Jun-11	%Dif1	31-Dec-10	%Dif3
Net Sales	124741	129414	-3.61	110629	12.76	107997	15.5
Other Operating Income	169	154	9.74	126	34.13	289	-41.52
Increase in SIT / WIP	-705	-2081	-66.1	-1119	-37	-322	118.94
Raw Materials	65860	72085	-8.64	62048	6.14	61160	7.68
Traded Goods	13940	14080	-0.99	11638	19.78	11017	26.53
Employees Cost	3362	4811	-30.1	3057	9.98	2949	14
Depreciation	1216	1155	5.28	1109	9.65	1058	14.93
Other Expenditure	34127	34305	-0.52	29945	13.97	27670	23.34
Total Expenditure	117800	124355	-5.27	106678	10.43	103532	13.78
Profit from Operations	7110	5213	36.39	4077	74.39	4754	49.56
Other Income	1313	950	38.21	2582	-49.2	1282	2.42
Interest	953	968	-1.55	931	2.36	957	-0.42
Profit before tax	7470	5195	43.79	5728	30.41	5079	47.08
Tax expense	2063	1410	46.31	1548	33.27	1345	53.38
Net Profit	5407	3785	42.85	4180	29.35	3734	44.8
Face Value (In Rs	2	2	0	2	0	2	0
Paid Up Equity	2389	2389	0	2389	0	2389	0
Basic EPS	4.53	3.17	42.9	3.5	29.43	3.13	44.73
Diluted EPS	4.52	3.17	42.59	3.5	29.14	3.12	44.87
Public holding (%)	49.04	49.04	0	49.04	0	49.04	0

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