State Bank of India, ICICI, Mahindra Gain

Mayank Mehta
30 Jul, 2009
New York City

Earnings from companies in various industries in India present a picture of healthy economy and rising corporate spending. ICICI, Mahindra & Mahindra, State Bank of India, Mundra Port and Patni Computer exceeded expectations. Rupee declined 0.3%. Banks and software services providers gained.

[R]6:00 PM Mumbai, 8:30 AM New York – Earnings from companies in various industries in India present a picture of healthy economy and rising corporate spending. Mahindra & Mahindra, State Bank of India, Mundra Port and Patni Computer exceeded expectations.[/R]

The strong earnings continue to support investor confidence after State Bank of India, Mahindra & Mahindra, Mundra Port and Patni Computer reported better than expected earnings.

The Sensex index in India increased 214.50 or 1.41% to 15,387.96 and CNX Nifty index slid 57.95 or 1.28% to 4,571.45. Among the Sensex 30 stocks, 23 increased and 7 declined.

On BSE trading, 1,499 stocks advanced, 1,167 declined and 85 were unchanged.

Gainers & Losers

EID Parry (India) Limited jumped 0.6% or Rs.1.80 to Rs.298.50 after the manufacturer of sugar said first quarter sales rose 10.8% to Rs.1,791 crore from Rs.1,617 crore a year ago. Net profit for the quarter fell 11.7% to Rs.109 crore compared to net profit of Rs.123.4 crore a year ago.

Hero Honda Motors Limited lost Rs.8.75 to Rs.1,634 after the manufacturer of motorcycles said first quarter sales rose 34% to Rs.3,811 crore from Rs.2,843 crore a year ago. Net profit for the quarter rose 83% to Rs.500 crore or Rs.25.04 per diluted share compared to net profit of Rs.273 crore or Rs.13.66 per share a year ago.

Indian Oil Corporation Limited gained 4.9% or Rs.26.50 to Rs.561.00 after the petroleum refiner said first quarter sales were Rs.59,180 crore. Net profit for the quarter was Rs.3,682 crore.

India''s largest tractor maker by sales Mahindra & Mahindra rose 1.22% after net profit rose 151.63% to Rs 400.90 crore on 28.04% increase in total income to Rs 4,751.61 crore in first quarter June 2009.

Mundra Port & Special Zone rose 1.6% to 553.95 rupees after net profit rose 76% to Rs 170.76 crore in first quarter June 2009 over first quarter June 2008.

Oracle Financial Services Software Ltd added 5.0% or Rs.70.85 to Rs.1,472.05 after first quarter sales fell 8% to Rs.545.6 crore from Rs.593 crore a year ago. Net profit for the quarter fell 23.3% to Rs.152.2 crore compared to net profit of Rs.198.4 crore a year ago.

Patel Engineering Ltd fell 1.1% or Rs.5.05 to Rs. 419.15 an infrastructure company said first quarter sales rose 15% to Rs.643 crore from Rs.558.4 crore a year ago. Net profit for the quarter rose 3.7% to Rs.36.3 crore compared to net profit of Rs.35 crore a year ago.

Patni Computer Systems Limited rose 12.7% or Rs.37.55 to Rs.328.75 after first quarter revenues fell 1.4% to Rs.772.9 crore from Rs.783.7 crore a year ago. Net profit for the quarter rose 32% to Rs.136.9 crore or Rs.10.63 per diluted share compared to net profit of Rs.103.7 crore or Rs.7.45 per share a year ago.

Power Grid Corporation of India gained 1.88% to Rs 119.20 after net profit surged 78.81% to Rs 546.61 crore in first quarter June 2009 over first June 2008.

Tata Steel Limited climbed 2.2% or Rs.9.90 to Rs.451.80 after the diversified steel producer said first quarter sales fell 9% to Rs.5,554 crore from Rs.6,087 crore a year ago. Net profit for the quarter fell 47% to Rs.790 crore or Rs.9.61 per diluted share compared to net profit of Rs.1,448 crore or Rs.18.11 per share a year ago.

Torrent Pharmaceuticals Limited added 7.7% or Rs.15.85 to Rs.221.00 after the Pharmaceutical company said first quarter sales rose 19% to Rs.465.8 crore from Rs.391 crore a year ago. Net profit for the quarter fell 69.6% to Rs.15 crore compared to net profit of Rs.49.3 crore a year ago.

Tube Investments of India Limited decreased 2.0% or Rs.1.00 after the manufacturer of precision steel tubes said first quarter sales fell 1.7% to Rs.708 crore from Rs.720 crore a year ago. Net profit for the quarter fell 47.8% to Rs.24 crore or Rs.1.30 per diluted share compared to net profit of Rs.46 crore or Rs.2.49 per share a year ago.

Tulip Telecom increased 3.12% to Rs 975 net profit rose 63.2% to Rs 75.07 crore on a 33.2% increase in sales to Rs 442.92 crore in first quarter June 2009 over first quarter June 2008.

West Coast Paper Mills Limited rose 0.5% or Rs.30 to Rs.54.55 an integrated pulp and paper mill said first quarter sales fell 4.2% to Rs.147.52 crore from Rs.153.95 crore a year ago. Net profit for the quarter rose 1.5% to Rs.20.6 crore compared to net profit of Rs.20.3 crore a year ago.

Reliance Industries fell 0.74% to Rs 1,912.10 after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on September 1, 2009.

HDFC Bank rose 2.9% or Rs.41.85 to Rs.1,459.80. ICICI Bank climbed 3.1% or Rs.23.00 to Rs.755.35. State Bank of India surged 4.0% or Rs.66.35 to Rs.1,722.80.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 51.97 or 0.51% to 10,165.21, Hang Seng index in Hong Kong increased 98.58 or 0.49% to 20,234.08 and CSI 300 index in China higher 76.31 or 2.14% to 3,634.82. ASX 200 index in Australia increased 47.60 or 1.15% to 4,190.40. The FTSE Bursa KL Composite index in Malaysia closed lower 3.82 or 0.33% to 1,160.66.

The Kospi Index in South Korea increased 10.42 or 0.68% to close at 1,534.74. SET index in Thailand closed higher 7.07 or 1.15% to 621.95 and JSE Index in Indonesia increased 72.32 or 3.25% to 2,298.14. The Sensex index in India increased 214.50 or 1.41% to 15,387.96.