Contrary to what its quarterly performance suggested, Trent has turned out a very mediocre show for the full year ended March 2003. Income from operations was Rs 111.53 crore (Rs 81.97 crore) up 36 per cent from last year. At Rs 102.88 crore (Rs 75.14 crore), operational cost went up by 37 per cent over the corresponding previous period. Although the operating expenditure went up by a slightly higher percentage than revenues, Trent has maintained its margins. Operating profit was up 27 per cent from last year at Rs 8.65 crore (Rs 6.83 crore). Operating profit margin was stagnant at a rather low level of 8 per cent. Other income at Rs 8.57crore (Rs 8.63 crore) was down 1 per cent. Depreciation moved up by 15 per cent to Rs 2.75 crore (Rs 2.38 crore). The tax provision having shot up to Rs 2.20 crore (Rs 0.82 crore) net profit (excluding extraordinaries) remained almost flat at Rs 12.25 crore against Rs 12.22 crore during the same period last year. During the year the company reported an extraordinary income of Rs 4.65 crore against an expense of Rs 2 crore during the preceding year. The stock came down on declaration of results and currently trades at Rs 183 discounting its full year earnings per share of Rs 9.34 by 20 times.
Pantaloon is the largest retailer in India, with a chain of 13 departmental stores and three hypermarkets across the country, but the numbers for the third quarter are not too encouraging. Income from operations at Rs 95.89 crore (Rs 76.45 crore) went up 25 per cent over the year-ago period but sequentially the same was down 13 per cent from the December quarter revenue of Rs 109.76 crore. Operational cost at Rs 87.87 crore (Rs 71.02 crore) was up 24 per cent from the year-ago period, while sequentially it was down 12 per cent from the December quarter cost of Rs 99.54 crore. Margins improved over the year-ago period but were inexplicably down sequentially. Operating profit was up 48 per cent over the year-ago period at Rs 8.02 crore (Rs 5.43 crore) but fell 22 per cent from the December quarter profit of Rs 10.22 crore. OPM was higher by a percentage point from the corresponding previous quarter at 8 per cent but down from the 9 per cent it reported during the preceding quarter. Net profit was up 11 per cent at Rs 2.02 crore (Rs 1.81 crore). Sequentially, however, it was down 53 per cent from the December quarter profits of Rs 4.26 crore. The stock has been rising since early April and currently trades at Rs 80 discounting its March quarter annualised EPS of Rs 4.66 by 17 times.
Though Bharat Heavy Electricals Limited (Bhel) has reported an 11 per cent rise in net profit for fiscal 2003 over the previous year, its performance has been poor compared to the excellent results during the year-ago period. At Rs 6,978.14 crore (Rs 7,286.60 crore), income from operations was down 4 per cent over the previous year. Bhel had a operational income over the corresponding previous period at a time when it recorded the highest ever order inflows. Operational costs were down by 10 per cent over the year-ago period to Rs 6,195.64 crore (Rs 6,862.20 crore). At Rs 782.50 crore (Rs 424.40 crore) operating profit was up 84 per cent over the year-ago period, while OPM shot up to 11 per cent from 6 per cent during the same period previous year. Other income was down 55 per cent at Rs 228.42 crore (Rs 504.60 crore). Pre-tax profit was up by 16 per cent over last year to Rs 770.49 crore (Rs 662.80 crore). The higher before tax profits in turn saw the tax provision go up by 30 per cent over the corresponding previous period to Rs 253.43 crore (Rs 194.90 crore). Net profit was up just 11 per cent at Rs 517.06 crore (Rs 467.90 crore). The stock has seen a fantastic rise since late 2002 with intermittent dips. Currently trading at Rs 263 it discounts its fiscal 2003 EPS of Rs 21.13 by 13 times.
Increasing competition from smaller regional players has hit Tata Tea’s performance for fiscal 2003. At Rs 760.75 crore (Rs 779.43 crore), income from operations was down 2 per cent from the previous year. Operating profit was down 8 per cent from the previous year at Rs 85.90 crore (Rs 93.70 crore), while OPM shrank by a percentage point to 11 per cent from 12 per cent during the same period previous year. After a huge rise of 113 per cent in the tax provision at Rs 29.50 crore (Rs 13.85 crore), Tata Tea reported a net profit of Rs 70.60 crore (Rs 71.96 crore) down 2 per cent from the year-ago period. The stock has seen a good rise since early January and currently trading at Rs 224 discounting its full year EPS of Rs 12.56 by 18 times.
Company Total Income Net profit Equity O. Income EPS*
Trent 111.15 16.89 8.57 13.12 9.34 Pantaloon Retail# 95.89 2.02 0.38 17.32 4.66 Bhel 6978.14 517.06 228.42 244.76 21.13 Tata Tea 760.75 70.60 51.24 56.22 12.56
Figures in Rs crore; * annualised; # third quarter results.