ADANI ENTERPRISES - FUTURE COULD BE BRIGHT-FY10 REVIEW

ADANI ENTERPRISES

FY 09 VS FY 10

REVIEW OF CONSOLIDATED FIGURES

ADANI ENTERPRISES has produced mixed results for FY 10 compared to FY 09. The consolidated, non-consolidated and quarterly figures comparison is furnished below :

Net  Sales  on consolidated basis has decreased from Rs. 26181.81 Crores to  Rs.25873.89 Cr YOY.

However, Total Expenditure has also decreased by a huge margin from Rs. 25338.46  Cr to Rs.24352.28 Cr YOY. The main decrease is under the item “purchase of traded goods”

Consolidated Net Profit  has therefore increased from Rs. 504.65 Cr to Rs. 919.30 Cr YOY.

Since there is an increase  from Rs.24.66 Cr in Paid-up Equity to Rs.49.80 Cr, the Basic EPS has come down from  20.46 to 18.55 YOY.

At current market price of Rs.595, the consolidated EPS yields a P/E ratio of 32.08.

Looking at the quarterly performance, we find erratic movements of both sales and profits.

Adani, based at Ahmedabad has interests in power, coal mining, oil and gas, real estate, city gas distribution etc. It has declared a dividend of Re 1 per share (FV :Rs.10).

The company said, it wants to raise Rs 4000 crore through  issue of securities in global or domestic markets.The company  closed its rights issue last month. The promoter family led by Gautam Adani, pouring a total of Rs 1,252 crore into the company through the rights issue. The  equity base is enlarging faster than the sales and profits. 

However, Looking at the confidence being shown by the promoters, it would be interesting to watch the further progress of the company.

INCLUDED IN MSCI :   

The New York based MSCI, whose stock market indices are used as benchmarks globally, has included Rural Electrification Company (REC), Piramal Healthcare and Adani Enterprises in the MSCI India Index. Effective from May,26.

The changes, are expected to lead to an increase in liquidity in these stocks as portfolios of several global funds mirror the index.

REVIEW OF NON-CONSOLIDATED FIGURES

Net Sales is almost static. It was Rs. 11503.23 Cr in FY 09  and Rs. 11569.10 Cr in FY 10.

 Total Expenditure  has increased from Rs. 10995.67 Cr from Rs.11021.89 Cr in FY 10.

Consolidated Net Profit  has decreased from Rs. 326.42 Cr to Rs.254.41 Cr.

13.24   Basic EPS  has therefore decreased from Rs.13.24 to Rs. 5.13

REVEIW OF QUARTERLY FIGURES

The quarterly figures show an erratic trend in sales and profit both.

Basic EPS for q/e Mar10 was 1.15 :: For q/e 12/09 ,EPS was 0.61 :: For q/e 09/09, it was 3.54 :: For q/e 06/09, EPS was 3.19 :: For q/e 03/09, EPS was 5.54.

 AUDITED, CUMULATIVE, CONSOLIDATED

FY 09(in lakhs) :: Description  ::  FY 10(in lakhs)

2618181  ::  Net Sales  :: 2587389

7647       ::  Other Operating Income  :: 1598

-170192  :: Increase/Decrease in SIT & WIP::        -679

2589773 :: Purchase of traded goods ::   2297039

11463    :: Employees Cost :: 12052

8218       :: Depreciation :: 15146

94584    :: Other Expenditure ::  111670

2533846  :: Total Expenditure ::  2435228

1464       :: Other Income                :: 3349

34882    :: Interest :: 50786

172         :: Exceptional items  ::   -430

58392    :: P B T  :: 106752

7848       :: Tax Expense  :: 9448

50544    :: P A T  :: 97304

50544    Net Profit (+)  ::                97304

79           ::  Minority Interest ::     5374

50465    :: Consolidated Net Profit :: 91930

-              Dividend (%)     -

1              Face Value (in Rs.)          1

2466       :: Paid-up Equity :: 4980

299401  :: Reserves ::      -

20.46     :: Basic EPS (in Rs.)  :: 18.55

19.16     :: Diluted EPS  (in Rs.)  :: 18.22

Non-Consolidated Figures

For FY 09 and FY 10

FY 09(in lakhs) :: Description :: FY 10( in lakhs)

1150323  :: Net Sales ::           1156910

7182    :: Other Operating Income :: 1568

55713 :: Increase/Decrease in SIT &WIP :: 7288

-           ::  Raw Materials ::      1038930

990752 :: Purchase of traded goods ::            -

6273    ::Employees Cost :: 3843

1208    :: Depreciation ::         1276

45621  :: Other Expenditure :: 50852

1099567 :: Total Expenditure ::           1102189

1284    :: Other Income ::        3010

21443 :: Interest ::       31005

319      :: Exceptional items :: -481

37460    :: P B T ::        28775

4818    :: Tax Expense  ::         3334

32642 :: Consolidated Net Profit :: 25441

-           :: Dividend (%) ::          100

1          :: Face Value (in Rs.) :: 1

2466    :: Paid-up Equity :: 4980

161844 ::  Reserves :: -

13.24   Basic EPS  :: (in Rs.):: 5.13

12.39   Diluted EPS :: (in Rs.):: 5.59

QUARTERLY FIGURES

Q/E ::31-Mar-10 :: 31-Dec-09 :: 30-Sep-09 :: 30-Jun-09 :: 31-Mar-09

Net Sales:: 298210 ::280046::    307280::271374:: 287333

Total Exp ::290258 :: 271570 :: 292889 :: 256895 ::   276418

Net Profit  :: 5730  :: 3049 :: 8789 :: 7873 :: 13671

Dividend (%):: 100 ::         -           -           -           :: 100

Face Value (In Rs    1 :       1:        1:        1:        1

Paid Up Equity :: 4980  :: 4960 :: 2473 :: 2466:: 2466

Basic EPS ::   1.15   :: 0.61 :: 3.54 :: 3.19 :: 5.54

Diluted EPS :: 1.86 :: 0.58 :: 3.31 :: 2.99 :: 5.16

 

ANNOUNCEMENTS TO THE EXCHANGE

14-05-2010     Adani Enterprises Limited has informed the Exchange that the Board of Directors of the Company has re-appointed Mr. Rajesh S. Adani as Managing Director of the Company for a further period of 5 (five) years w.e.f. June 10, 2010, subject to approval of members.

14-05-2010     Adani Enterprises Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 298210 lacs for quarter ending on 31-MAR-2010 against Rs. 287333 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 5730 lacs for the quarter ending on 31-MAR-2010 against Rs. 13671 lacs for the quarter ending on 31-MAR-2009.

14-05-2010     Adani Enterprises Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 1156910 lacs for year ending on 31-MAR-2010 against Rs. 1150323 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 25441 lacs for the year ending on 31-MAR-2010 against Rs. 32642 lacs for the year ending on 31-MAR-2009.

14-05-2010     Adani Enterprises Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 2587389 lacs for year ending on 31-MAR-2010 against Rs. 2618181 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 91930 lacs for the year ending on 31-MAR-2010 against Rs. 50465 lacs for the year ending on 31-MAR-2009.

14-05-2010     Adani Enterprises Limited has informed the Exchange that the Board of Directors in its Meeting held on May 14, 2010 has recommended the dividend at Re. 1 per share i.e. 100% (Previous year Re. 1/- per share - 100%) on fully paid up Equity Shares of Re. 1/- each of the Company.

14-05-2010     Adani Enterprises Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 782447 lacs for quarter ending on 31-MAR-2010 against Rs. 865405 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 33980 lacs for the quarter ending on 31-MAR-2010 against Rs. 16605 lacs for the quarter ending on 31-MAR-2009.

04-05-2010     Adani Enterprises Limited has informed the Exchange that the company will be publishing Audited Results of the Company for the year 2009-10, within 60 day (i.e by May 30, 2010) from the end of the financial year 2009-10. Hence, the company will not be publishing the unaudited results for the last quarter of the financial year 2009-10.

04-05-2010          Adani Enterprises Limited has informed the Exchange that the Board at its meeting held on May 04, 2010 decided to create, offer, issue and allot, from time to time in either one or more international offerings, in one or more foreign markets, in one or more tranches and/or in the course of one or more domestic offering(s) in India, such number of equity

Zuari Industries Limited FY 09 vs FY 10-SALES DOWN - PROFIT UP

Zuari Industries Limited

FY 09 vs FY 10

Zuari Industries ‘s results for FY 10 present a mixed picture compared with FY 09.

From Rs.6090.60 crores in FY 09, Net Sales has come down to Rs.4277.55 Cr in FY 10, a fall of Rs.1813 Cr, which is very steep.

Consumption of raw materil has however also come down from Rs.3183.56 cr in FY 09  to Rs.1951.03 Cr in FY 10.

This has resulted in a smart rise of net profit from  Rs. 93.28 Cr in FY 09 to  Rs.156.96 Cr, thus enhancing the EPS from  31.69  to 53.31 YOY.

At the current MARKET PRICE  of Rs. 640, the  P/ E RATIO works out to Rs. 12.01.

However, the steep fall  in sales is a matter for concern and needs to be addressed by the company. 

The company has gone in for amalgamation with  Gobind Sugar Mills Limited as can be seen from the announcements below. The benefit of amalgamation may accrue in due course.

Whether the lesser sales and lesser raw material cost are due to shift from other sources to GAS and if so, how much benefit is being passed on to customers is not yet clear.

RESULTS IN NUMBERS

FY 09 (Rs. in lakhs)::Description FY 10 (Rs. in lakhs)

609060  Net Sales/Income ::        427755

3116       Other Operating Income  ::      4618

-13316   Increase/Decrease in SIT & WIP   ::             15533

318356  Consumption of Raw Materials :: 195103

235504  Purchase of traded goods   ::         137536

5546       Employees Cost   ::            7586

1775       Depreciation    :: 1951

52051    Other Expenditure     ::     56632

599916  Total Expenditure     ::      414341

12260    Profit from Operations :: 18032

6348       Other Income   ::  5653

18608    Profit before Interest  ::  23685

6066       Interest       ::         1721

12542    Profit after Interest ::       21964

12542    Profit(+) before tax  ::      21964

3214       Tax Expense  ::     6268

9328       Net Profit(+) after tax ::   15696

9328       Net Profit (+)   ::  15696

30           Dividend (%)    :: 45

10           Face Value (in Rs.) ::         10

2944       Paid-up Equity Share Capital   ::   2944

89796    Reserves :: 103942

31.69     Basic EPS::(in Rs.)      53.31

MARKET PRICE  : 640    

P / E RATIO : 12.01

ANNOUNCEMENTS TO THE EXCHANGE

10-05-2010          Zuari Industries Limited has informed the Exchange that the Board of Directors of the Company at their meeting held on May 08, 2010 has recommended an equity dividend of 45% - Rs.4.50 per share.              -

03-05-2010          Zuari Industries Limited has submitted to the Exchange a copy of the proceedings of the Court convened Meeting of the equity shareholders of the Company held on April 26, 2010.       Click Here

03-05-2010          Zuari Industries Limited has informed the Exchange that the Court Convened Meeting of the Equity Shareholders of the Company was held on April 26, 2010. Whereat the shareholders have approved with requisite majority, the Scheme of Arrangement and Amalgamation under section 391 to 394 of the Companies Act, 1956, between Gobind Sugar Mills Limited and Zuari Industries Limited.