ORCHID CHEMICALS & PHARMACEUTICALS
Orchidís performance for the first quarter ended June has been poor. Total income moved up by 20 per cent to Rs 106.86 crore (Rs 88.89 crore) while costs rose by 25 per cent to Rs 103.95 crore against Rs.83.38 crore during the previous corresponding quarter. Income from operations went up by 20 per cent to Rs 106.84 crore (Rs 88.87 crore), but operational costs having gone up by 29 per cent to Rs 84.78 crore (Rs 65.54 crore) margins suffered badly. Operating profits were down by 5 per cent over the previous corresponding quarter to Rs 22.06 crore (Rs 23.33 crore) while OPM shrank to 21 per cent against 26 per cent during the same period last year. Higher operational costs during the quarter compared with the previous corresponding quarter, had a negative impact on profitability pulling down the before tax profits by 41 per cent over the year ago period to Rs 4.29 crore (Rs 7.22 crore). A fall in the before tax profits resulted in a 19 per cent reduction in tax provisioning at Rs 1.38 crore (Rs 1.70 crore) eventually leading to a 47 per cent fall in the profits after tax to Rs 2.91 crore (Rs 5.52 crore). The stock currently trades at around Rs 66 discounting its June quarter annualised EPS of Rs 4.15 by 16 times. Not cheap at current growth rates.
Suvenís June quarter results have been sluggish with total income, (supported by a spurt in the other income) up 21 per cent to Rs 8.12 crore (Rs 6.69 crore) over the previous corresponding quarter against which the total costs went up by 29 per cent to Rs 6.67 crore (Rs 5.19 crore) pulling down the net profits by 4 per cent to Rs 1.45 crore (Rs 1.50 crore). Income from operations was up 13 per cent to Rs 7.33 crore (Rs 6.47 crore), while operational costs went up by 27 per cent to Rs 5.68 crore (Rs 4.48 crore). Other income went up to Rs 0.79 crore (Rs 0.22 crore). Pre-tax profit rose by 15 per cent to Rs 2.01 crore (Rs 1.75 crore). However, tax provision zoomed by 126 per cent to Rs 0.57 crore (Rs 0.25 crore) eventually leading to a 4 per cent fall in the net profits to Rs 1.45 crore (Rs 1.50 crore). The stock is fairly valued at Rs 75.50, which is six times its June quarter annualised earnings per share of Rs 13.17.
NATIONAL ALUMINIUM COMPANY
Nalcoís first quarter results though are not very impressive with total income moving up by just about 8.5 per cent to Rs 675.94 crore (Rs 625.91 crore) against a 22 per cent rise in the total costs which stood at Rs 576.81 crore (Rs 471.31 crore) leading to a 36 per cent drop in net profit. Income from operations was up 7 per cent to Rs 634.77 crore (Rs 591.99 crore) but operational costs having gone up by 26 per cent to Rs 408.54 crore (Rs 323.09 crore) saw margins skid badly. Other income was up 21 per cent to Rs 41.17 crore (Rs 33.92 crore) but a 32 per cent rise in interest cost to Rs 32.15 crore (Rs 24.34 crore) negated the positive impact. Lower revenues coupled with proportionately higher operational expenditure severely wedged the profitability bringing down the pre-tax profits by 28 per cent to Rs 146.35 crore (Rs 203.82 crore) over the previous corresponding period. Tax provision was down by 4 per cent to Rs 47.22 crore (Rs 49.22 crore) eventually leading to a 36 per cent fall in the profits after tax to Rs 99.13 crore (Rs 154.60 crore). Nalco is overpriced at the current prices (around Rs 100) which is 15 times the June quarter annualised EPS. The price will sustain as long as investors are hopeful of the disinvestment going through.
Gillette has reported a 6.5 per cent rise in the total income at Rs 113.32 crore (Rs 106.52 crore) for its second quarter of the year, against which the total spending went up by a percentage point to Rs 109.03 crore (Rs 107.49 crore) enabling it to report a net profit of Rs 4.29 crore against a loss of Rs 0.97 crore during the same period last year. Income from operations was up 5 per cent to Rs 110.20 crore (Rs 104.61 crore) whereas operational costs went up by 1 per cent to Rs 97 crore (Rs 96 crore). Other income at Rs 3.12 crore was up 63 per cent over the previous corresponding period while this was further complemented by a 53 per cent saving in interest cost and a 43 per cent reduction in depreciation provision which stood at Rs 1.55 crore (Rs 3.31 crore) and Rs 4.65 crore (Rs 8.18 crore) respectively. It recorded a PBT of Rs 10.12 crore against a loss of Rs 0.97 crore during the same period last year. It reported a net profit of Rs 4.29 crore against a loss of Rs 0.97 crore during the same period last year. The stock currently trades at Rs 314.85 discounting its June quarter annualised EPS of Rs 5.27 by 60 times.
Company Total Income Net profit Equity O. Income EPS*
Orchid Chemicals 106.84 2.91 28.00 0.03 4.15 Suven Pharma 7.33 1.45 4.40 0.79 13.17 Nalco 634.77 99.13 644.31 41.17 6.15 Gillette India# 110.20 4.29 32.59 3.12 5.27
n Figures in Rs crore; * annualised; # second quarter results