WELSPUN GUJARAT STAHL ROHREN FY10 & FY 09 -HOW THEY COMPARE?

WELSPUN GUJARAT DOES WELL IN FY 2010

The cumulative, consolidated, audited figures of Welspun Gujarat for FY 10 and FY 09 are compared in the table below :

Net sales has increased to Rs.735027 Lakhs from  Rs.573953 lakhs last year, an increase of Rs.161074 lakhs..

Net Profit has increased to 61041 lakhs from Rs.21351 lakhs - an increase of Rs.39690 lakhs - which is seen as an excellent performance in FY 10. All cost increases have been easily absorbed and 1/4th of the increased sales have translated into Net Profit.

A large part of the Net profits seem to have arisen in Q2 and Q3. While, Q1 was very low, Q4 was very good but slightly lower than Q2 and Q3.

The increase in net sales and consequent profitability, it is hoped, will continue in current year too.

A dividend of Rs.2 per share of Rs.5 has been proposed.

On an Equity capital of Rs.10216 lakhs, the Basic EPS is 31.69, up from a mere 11.51 last year - almost 3 times of last year.

Thus, the performance of Welspun Gujarat has significantly improved with its sales in the FY10.

The current market price is Rs.275. Thus, the P/E ratio works out to 8.68, which appears to be definitely cheap, for this level of performance.

Some very recent announcements of the company sent to Exchange are also placed below :

27-04-2010          Welspun Gujarat Stahl Rohren Limited has informed the Exchange that the Board has fixed the date of book closure from May 07, 2010 to May 11, 2010 (both days inclusive) for the purpose of payment of dividend.

27-04-2010          Welspun Gujarat Stahl Rohren Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on April 27, 2010 have recommended dividend of 40% on Equity Shares (Rs.2 per share of face Value of Rs.5 each).

27-04-2010          Welspun Gujarat Stahl Rohren Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 735027 lacs for year ending on 31-MAR-2010 against Rs. 573953 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 61041 lacs for the year ending on 31-MAR-2010 against Rs. 21350 lacs for the year ending on 31-MAR-2009.

27-04-2010          Welspun Gujarat Stahl Rohren Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 661394 lacs for year ending on 31-MAR-2010 against Rs. 587831 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 54020 lacs for the year ending on 31-MAR-2010 against Rs. 23357 lacs for the year ending on 31-MAR-2009.

23-04-2010          Welspun Gujarat Stahl Rohren Limited has informed the Exchange that at the Extra-ordinary General Meeting of the Company held on April 23, 2010 : (1) Members have approved change of name of the Company from Welspun-Gujarat Stahl Rohren Limited to Welspun Corp Limited.

Details	FY2010 CONSOL	FY2009 CONSOL
Description	Amount(Rs. in lakhs)	Amount(Rs. in lakhs)
Net Sales	735027	573953
Plus/minus in SIT and WIP	28946	-44034
Raw Materials	445895	436535
Purchase of traded goods	-	7765
Employees Cost	27788	13221
Depreciation	20606	14328
Other Expenditure	100535	96990
Total Expenditure	623770	524805
Profit before Other Income, Interest & Exceptional Items	111257	49148
Other Income	1853	1870
Profit before Interest & Exceptional Items	113110	51018
Interest	20709	17663
Profit after Interest but before Exceptional Items	92401	33355
Profit(+)/Loss(-) from Ordinary Activities before tax	92401	33355
Tax Expense	31359	12004
Net Profit(+)/Loss(-) from Ordinary Activities after tax	61042	21351
Net Profit (+) / Loss (-) for the period	61042	21351
Minority Interest	1	1
Consolidated Net Profit (+) / Loss (-) for the period	61041	21350
Dividend (%)	-	-
Face Value (in Rs.)	5	5
Paid-up Equity Share Capital	10216	9325
Reserves excluding Revaluation Reserves	279895	146644
Basic EPS before Extraordinary items (in Rs.)	31.69	11.51
Diluted EPS before Extraordinary items (in Rs.)	28.4	11.45

YES BANK GROWING HEALTHIER IN FY10 - BETTER FUTURE AHEAD

COMPARISON OF AUDITED CUMULATIVE NON-CONSOLIDATED RESULTS
of YES BANK FOR FY2010 with FY2009 :

Yes Bank has performed much better in FY10 compared to FY 09. 

• Total income has increased from Rs.243834 lakhs to Rs.Rs.294524 lakhs. 
•  
• Net profit has gone up from  Rs.30384 lakhs to Rs.47774 lakhs. 
•  
• Capital Adequacy ratio is a huge 20.61 indicating scope for increasing the loan Book.
• 
  
• Annual EPS is 15.65 which may grow further in coming quarters, as can be seen from the huge CAR.
•  
• % of Gross/Net NPA is quite low at 0.06 
• Return on assets is 1.61, which is quite healthy. 
•  
• Current Market price is 277. Hence, P/E is 17.7.
•  
• At current rate, Yes Bank may clock much better results in every succeeding quarter. 

Description	2010 in lakhs	2009 in lakhs
Interest/Discount on Advances/Bills	177150	148781
Income on Investments	58589	49970
Interest on Balances With RBI etc	869	1151
Others	363	430
Interest Earned	236971	200332
Other Income	57553	43502
Total Income	294524	243834
Interest Expended	158176	149214
Employees cost	25689	21802
Other Operating Expenses	24326	20053
Operating Expenses	50015	41855
Total Expenditure excl. provisions	208191	191069
OPT before provisions and contingencies	86333	52765
Provisions (other than tax) and contingencies	13684	6174
Exceptional Items	-	-
Profit(+) before tax	72649	46591
Tax Expense	24875	16207
Net Profit(+) after tax	47774	30384
Extraordinary Items (net of tax expense)	-	-
Net Profit (+) / Loss (-) for the period	47774	30384
Dividend (%)	15	-
Face Value (in Rs.)	10	10
Paid-up Equity Share Capital	33967	29698
Reserves excluding Revaluation Reserves	274988	132724
% of shares Held by Government of India	-	-
Capital Adequacy Ratio	20.61	16.63
Basic EPS before Extraordinary items (in Rs.)	15.65	10.24
Diluted EPS before Extraordinary items (in Rs.)	14.87	10.14
Basic EPS after Extraordinary items (in Rs.)	15.65	10.24
Diluted EPS after Extraordinary items (in Rs.)	14.87	10.14
Gross/Net NPA	1299	4116
% of Gross/Net NPA	0.06	0.33
Return on Assets	1.61	1.52

GEOMETRIC LIMITED IMPROVES IN FY10

GEOMETRIC Limited has performed better in the year ending March 2010 compared to Y/E March 2009. 

Most of the Higher Net profits seem to have however resulted from REDUCTION  in expenditure  and streamlining of operations compared to previous year, as can be seen from the table and details below.

Some of the details are placed below (with reference to company's media release etc) :

Business Highlights for FY 10

• FY10 EPS of Rs.7.51 against Rs. 0.55 in FY09
• Recommended dividend of 55% (including a special dividend @ 15% to mark of 15 years of incorporation), by the board of directors
• Debt free position on a consolidated basis
• FY10 net profits increased exponentially by 578% to INR 466.61 Mn from INR 68.83 Mn in FY09
• FY10 operating profits increased 11.9% to INR 586.17 Mn from INR 524.04 Mn in FY09
• FY10 revenues declined 14.5% to INR 5115.62 Mn (USD 108.12 Mn) from INR 5980.79 Mn (USD 129.47 Mn) in FY09
• New customers addition at 37 for the fiscal
• Recognized as an IT Innovator by Nasscom for the third year in a row

 Other Details :

• Operating revenues of INR 1,271.71 Mn (USD 27.84 Mn) for the Q/E March 31, 2010, compared to revenues of INR 1,268.75 Mn (USD 27.13 Mn) in Q3FY10. 
• Revenues remained flat on a Q-o-Q basis in rupee terms on account of appreciation of the rupee; but increased by 2.6% Q-o-Q in dollar terms over the previous quarter. The profit after tax was INR 118.36 Mn for the quarter, compared to INR 162.41 Mn in the previous quarter. 
• Offshore leverage (in revenues terms) was maintained at 65%, same as the previous quarter.
• On a yearly basis, the company has registered significant improvements in operational efficiencies with offshore leverage (in revenue terms) increasing from 56.3% in FY09 to 64.6% in FY10; and increased utilization from 87.2% in FY09 to 90.3% in FY10. 
• The company had total employee strength of 2956 employees as of March 31, 2010, including its subsidiaries.

COMMENTS : 

While the company is improving its performance, Higher performance in future depends on landing more projects in FY11.With better outlook in IT/ITes sectors for FY11, the company may pull it off. The company's progress needs watch.

Note : While efforts have been made to be accurate to the extent feasible, Readers are welcome to offer their comments,ideas,suggestions and corrections - which will be duly taken note of.

Figures : Audited-cumulative-consolidated 

DETAILS	FY2010	FY2009
Description	Amount(Rs. in lakhs)	Amount(Rs. in lakhs)
Net Sales	51156.2	59806.7
EmplCost	32070.7	38345.4
Depric	2315.2	2096.2
OtherExp	10740.1	18479.9
TotalExp	45126	58921.5
OthrIncm	338.1	293.6
Interest	365.8	481.9
TaxExp	40.5	408
Extraord.	21.9	-1343
Net Profit	5940.1	1631.9
Minority Interest	1274	943.6
Consolidated Net Profit	4666.1	688.3
Dividend (%)	-	-
F.V( Rs.)	2	2
Equity	1242.3	1242.3
Reserves	-	9140.3
Basic EPS	7.51	-
Diluted EPS	7.51	-

MARUTI SUZUKI RESULTS FY10 vs FY 09 ANALYSIS AND COMPARISON

FINANCIAL PERFORMANCE :

On a Y-O-Y basis, Maruti Suzuki India Limited has performed Excellently. From the following table, we can see that SALES  have registered a significant increase from Rs.20663.84 Cr to Rs.29591.52 Cr on a Y-o-Y basis.

However, RAW MATERIAL COST has also increased significantly from Rs.15403.33 Cr to Rs.21988.32 Cr during the period.

The NET PROFIT on an annual Basis has increased from Rs.1227.45 Cr to Rs.2624.74 Cr, registering a more than 100 percent increase.

The EPS has very handsomely risen to Rs.90.85 per share of FV of Rs.5. The last year EPS was Rs.42.89,which means a more than 100 percent increase in EPS.

RESERVES have gone up from Rs.9420.81 Cr to 12038.10 Cr.

DIVIDEND proposed is 120 percent against 70 percent last year.

 The FY10 results are thus EXCELLENT  by any standard. But, market price of the share has fallen to Rs.1331 after declaration of the result, presumably on the assumption that the result did not meet the EARLIER expectations of the market.

Some analysts seem to be expecting a Profit increase of around 200 percent, based on the stupendous sales registered in March'2010 and earlier. This did not come true. But, this expectation appears to be unreasonable, if we take into account the increase in raw material costs like steel.

4TH QUARTER : 

The 4th Quarter sales income was Rs.8280.82 Cr against the 3rd quarter sales of Rs.7372.65 Cr. But, raw material cost was Rs.6127.64 cr against Rs.5491.86 cr in the previous quarter. Hence, total expenditure in 4th Quarter was up at Rs.7536.52 cr against rs.6571.72 Cr in previous Quarter. Thus, Net profit was marginally down from Rs.687.53 Cr to Rs.656.55 Cr. On the equity of Rs.144.46 cr, the quarterly EPS comes to Rs.22.73 - against Rs.23.80 in previous quarter.

Despite the increase in RAW MATERIAL COSTS, Maruti has still managed a handsome EPS of 90.95 for the full year (against  a EPS of Rs.42.89 for previous year) and a quarterly EPS of Rs.22.80 for the 4th Quarter against Rs. 23.80 for the 3rd Quarter and a mere Rs.8.42 for the 4th Quarter of last year.

OPERATIONAL PERFORMANCE :

Maruti Suzuki sold a total of 10,18,365 vehicles in 2009-10. This is the first time in Indian automobile history that a car company has sold over a million units in a financial year. This included 8,70,790 units sold in the domestic market, the highest ever by the company in a fiscal. The export sales of 1,47,575 units in the year were the highest ever annual exports by the company.

The total sales numbers in 2009-10 mark a growth of 29 per cent over last financial year. Maruti Suzuki's total sale in 2008-09 was 792,167 units.

The export numbers in the year were led by A-star. This fuel efficient compact car clocked over 1.27 lakh export sales in the fiscal. A-star was exported across Europe including United Kingdom, France, Germany, Italy, Netherlands etc. The major non-European export markets are Algeria, Chile, Indonesia and neighbouring countries. South Africa, Hong Kong, Australia and Norway were new markets where Maruti Suzuki cars were exported during the year.

On March 23, 2010, Maruti Suzuki rolled out the one millionth car of the year 2009-10. This feat takes the company into a very select group of global automakers with such volumes.

Maruti Suzuki is now expanding its production capacity to reach 12,50,000 units (1.25 million) by 2012. In March 2010, the company announced an investment of Rs 1,700 Crore for expansion of the production facilities by 2.5 lakh units at its Manesar plant. 

MARKET PRICE PERFORMANCE :

The market price closed on 26.04.2010 at Rs.1331, which, on the EPS of 90.85 gives a P/E ratio of just 14.65, which is NOT A REASONABLE  VALUATION for a STAR PERFORMER like Maruti. 

At a P/E of 18, the Market price comes to Rs.1635. For the present, Sentiment (of not meeting High market expectations) has driven down Maruti price.I presume, soon, Maruti price will find its justified valuations. If we consider next year performance, the forward numbers will be better than FY10 numbers, as the company is coming out with exceptional Domestic and Export sales Performance, month after month.

Hence, Maruti is a BUY at current prices.

Note : Readers are welcome to offer their comments,suggestions, additions or corrections - and the same will be accepted gratefully. The figures below are AUDITED-CUMULATIVE-CONSOLIDATED figures.

I T E M	FY2010	FY2009 (In lakhs  Rupees)
Net Sales	2959152	2066384
Other Oprting Income	53099	50836
Stock in trade and WIP	-19408	28101
Raw Materials	2198832	1540333
Purchase of traded goods	91242	73231
Employees Cost	56053	48128
Depreciation	84138	71649
Other Expdr	281205	240681
Total Expdr	2692062	2002123
Profit B- OI,INT	320189	115097
Other Income	58206	60464
Profit B INT	378395	175561
Interest	3742	5450
PBT	374653	170111
Tax Expense	112189	47366
PAT	262464	122745
Dividend (%)	120	70
Face Value (in Rs.)	5	5
Paid-up Equity	14446	14446
Reserves	1203810	942081
Basic EPS	90.85	42.49
Diluted EPS	90.85	42.49

MARUTI SUZUKI SALES ZOOMING INTO WORLD CLASS LEVEL

The company's press release dated 01st, April,2010 holds out great hopes about the future of the company and its results for FY10.

Maruti has become the only Indian company to sell over one million cars in a fiscal  now.

Car market leader Maruti Suzuki India Limited sold a total of 10,18,365 vehicles in 2009-10. This is the first time in Indian automobile history that a car company has sold over a million units in a financial year. This included 8,70,790 units sold in the domestic market, the highest ever by the company in a fiscal. The export sales of 1,47,575 units in the year were the highest ever annual exports by the company.

The total sales numbers in 2009-10 mark a growth of 29 per cent over last financial year. Maruti Suzuki's total sale in 2008-09 was 792,167 units.

The domestic sales in the fiscal, in A2 segment grew by 23.8 per cent while in the A3 segment the sales growth was 30.8 per cent, as compared to 2008-09

The export numbers in the year were led by A-star. This fuel efficient compact car clocked over 1.27 lakh export sales in the fiscal. A-star was exported across Europe including United Kingdom, France, Germany, Italy, Netherlands etc. The major non-European export markets are Algeria, Chile, Indonesia and neighbouring countries. South Africa, Hong Kong, Australia and Norway were new markets where Maruti Suzuki cars were exported during the year.

March 2010 sales

During March 2010, Maruti Suzuki sold total of 95,123 units, growing 11 percent over March 2009 (85,669 units). The March 2010 numbers include domestic sales of 79,530 units and the highest ever monthly exports of 15,593 units. The previous highest monthly exports were in August 2009 at 14,847 units. 

Ritz launched in May 2009, Grand Vitara launched July 2009 and Eeco launched in January 2010:

  On March 23, 2010, Maruti Suzuki rolled out the one millionth car of the year 2009-10. This feat takes the company into a very select group of global automakers with such volumes.

Maruti Suzuki is now expanding its production capacity to reach 12,50,000 units (1.25 million) by 2012. In March 2010, the company announced an investment of Rs 1,700 Crore for expansion of the production facilities by 2.5 lakh units at its Manesar plant.

A spate of new launches and product refreshments during 2009-10 helped the company to clock sterling performance in the fiscal. These included Maruti Suzuki Ritz (May 2009), all-new Grand Vitara (July'09), new Estilo with K-series engine (Aug'09), new SX4 with VVT engine and SX4 with automatic transmission (Oct'09) and Eeco (January 2010).

MY COMMENTS : Maruti certainly is world class now. Its exports are likely to zoom in coming years, while the Indian market is growing at a fantastic rate. Great Days are ahead for the car maker.

CORPORATION BANK EXCELS ITSELF ONCE AGAIN IN FY 10

Corporation bank has Excelled itself once again, by producing a stellar performance in FY10.

The brief details are as below :

Details                FY 10   Vs   FY 09 (In Lakhs)

Total Income :     848940          717870

Total Exp      :     634337           537291

OPT            :      214603           180579

Provisions    :       47443             41037

ConNPT     :        118135              90032

FV                        Rs.10             Rs.10

EQ             :        14344             14344

Reserves     :       571349           479886

CAR                      15.18                -

B.EPS        :          82.36                 62.77

% of G/N NPA:        0.31               0.29

ROA              :       1.19               1.17

The Net profit has surged ahead from 90032 lakhs in FY 09 to Rs.118135 lakhs in FY 10.

The capital adequacy Ratio is very healthy at 15.18. 

The Basic EPS has surged from 62.77 last year to a fantastic 82.36 in FY 10.

The percentage of Gross to Net NPA is quite healthy at 0.31.

The Return on assets is also quite good at 1.19.Its reserves are also quite healthy.

Over all, Corporation Bank has turned in a fantastic performance in FY 10. Future quarters can be still better.

At current market price of Rs.498, the price earnings ratio is a meagre 6.05.

Market needs to take a good look at the fantastic performances of the PSBs and value them much higher than at present. Corporation bank specially merits much higher valuations. It is a BUY.

RESULTS FOR FY10 COMPARISON OF HDFC BANK AXIS BANK AND ICICI BANK

The FY10 results of the top 3 private banks of India compare as below : (Figures in lakhs mostly)

DETAILS HDFC AXIS ICICI Interest/Discount on Advances/Bills 1209275 798660 2036264 Income on Investments 397811 342831 781644 Interest on Balances With RBI ETC 8708 12000 71117 Others 7498 10414 126346 Interest Earned 1623292 1163905 3015371 Other Income 403407 396421 2944606 Total Income 2026699 1560326 5959977 Operating Profit  656388 520824 1173734 Provisions  and contingencies 214487 138919 455870 Tax Expense 138609 134091 173523 Net Profit (+)  for the period 303292 247814 484341 Consolidated Net Profit (+) 300365 247814 467029 Dividend (%) 120 120 120 Face Value (in Rs.) 10 10 10 Paid-up Equity Share Capital 45774 40517 111489 Reserves excluding Revaluation Reserves 2115815 1558377 5050348 Capital Adequacy Ratio 17.4 15.8 19.41 Basic EPS before Extraordinary items (in Rs.) 68.8 64.83 41.93 Diluted EPS before Extraordinary items (in Rs.) 68.1 63.38 41.72 Basic EPS after Extraordinary items (in Rs.) 68.8 64.83 41.93 Diluted EPS after Extraordinary items (in Rs.) 68.1 63.38 41.72 % of Gross/Net NPA 0.3 0.36 2.12 Return on Assets 1.5 1.85 1.15

COMMENTS : At current price of Rs.1954, the P/E ratio for HDFC Bank is 28.4. At current MP of Rs.979, the P/E for ICICI Bank  is 23.35. At current MP of Rs.1238.50, the P/E ratio for Axis bank is 19.1.  Performance-wise, HDFC Bank and Axis bank are by far, superior as on date to ICICI Bank. 

Regarding NPAs, the percentage of Gross to net NPAs for ICICI Banks are considerably high at 2.12 and needs to be reduced.

Return on assets is the highest for Axis Bank at 1.85 and lowest for ICICI Bank at 1.15. HDFc has an ROA of 1.5.

All 3 have excellent Reserves commensurate with their Equity. Thus based on their likely EPS of Next year, which may be around 80 for Axis and HDFC Banks, both of them could be Potential Bonus candidates next year.
 

It is in CAR that ICICI Bank has the highest ratio of 19.41. Others also have reasonable CAR and are raising further capital periodically in many ways.

P/E wise, HDFC already commands a good P/E of 28.4. ICICI Bank even with slightly inferior performance is at a P/E ratio of 23.35. 

Axis Bank is available at P/E of 19.1 and is presently looking cuite heap.  Its performances have been excellent for the last several quarters , and specially the q/e 31.03.2010 and it is expected to maintain similar growth in future as well.

There is therefore huge scope for GOOD APPRECIATION in case of AXIS BANK in the medium term with every quarterly result and in the short term as well based on latest result.While all 3 are good BUYs, AXIS BANK  appears to be the BEST BUY.

Note : Readers are welcome to offer suggestions,ideas and corrections,if any and these will be duly taken into account and incorporated.