Weak Earnings from Airtel, RIL in India

123jump.com Staff
30 Oct, 2009
New York City

Stocks in Mumbai traded lower. Bharti Airtel revenues and profit declined as the mobile telecom market matures and price competition escalates. RIL slips on fourth consecutive fall in quarterly profit. Unity Infraprojects gains on a new building contract.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower. Bharti Airtel revenues and profit declined as the mobile telecom market matures and price competition escalates. RIL slips on fourth consecutive fall in quarterly profit. Unity Infraprojects gains on a new building contract.[/R]

The Sensex index in India decreased 156.44 or 0.9% to 15,896.28 and CNX Nifty index fell 38.85 or 0.8% to 4,711.70. Among the Sensex 30 stocks, 20 declined and 10 rose.

On BSE trading, 1,056 stocks advanced, 1,630 declined and 84 were unchanged.

The newly listed Indiabulls Power settled at Rs 39.25, a 13% discount from the initial public offer price of Rs 45 a share.

Inflation based on the wholesale price index rose 1.51% in the year through 17 October 2009, higher than previous week''s annual rise of 1.21%, data released by the government showed on Thursday.

Rupee edged higher 32 paisa to 46.88 against one dollar.

Gainers & Losers

Apar Industries Limited added 8.0% to Rs 170.75 after the supplier of transformer oil said second quarter sales fell 24.4% to Rs 531.35 crore from Rs 702.55 crore a year ago. Net profit for the rose 300% to Rs 22.4 crore or Rs 6.94 per diluted share compared to net profit of Rs 5.6 crore or Rs 1.75 per share a year ago.

Bharti Airtel Limited decreased 5.4% to Rs 295.50 after the provider of telecommunication services said second quarter sales fell 1% to Rs 9,845 crore from Rs 9,941.6 crore a year ago. Net profit for the fell 7.8% to Rs 2,321 crore compared to net profit of Rs 2,517 crore a year ago.

Cairn India Limited decreased 0.4% to Rs 264.00 after the dealing in minerals, oils, petroleum, gas and related by-products said four ultra-deep water wells will be drilled by the second quarter of 2010 in Block KG-DWN-98/2, which is operated by Oil & Natural Gas Corporation.

DLF Limited increased 1.2% to Rs 379.90 after the real estate development company said second quarter sales fell 53% to Rs 1,750.94 crore from Rs 3,744.39 crore a year ago. Net profit for the quarter fell 77% to Rs 439.74 crore or Rs 2.59 per diluted share compared to net profit of Rs 1,935.35 crore or Rs 11.33 per share a year ago.

Godrej Consumer Products Limited rose 0.7% to Rs 279.00 after the manufacturer of toilet soaps and other toiletries said second quarter sales rose 65.5% to Rs 576 crore from Rs 348 crore a year ago. Net profit for the quarter rose 168% to Rs 93 crore or Rs 3.02 per diluted share compared to net profit of Rs 34.7 crore or Rs 1.35 per share a year ago.

Grasim Industries Limited added 2.9% to Rs 2,195.50 after the fiber and pulp maker said second quarter net profit jumped 60.7% to Rs 674.25 crore.

The Great Eastern Shipping Company Ltd slipped 3.1% to Rs 245.00 after the shipping company said second quarter sales fell 42.5% to Rs 662.7 crore from Rs 1,153 crore a year ago. Net profit for the quarter fell 81% to Rs 108.5 crore compared to net profit of Rs 570 crore a year ago.

ICICI Bank Limited rose 0.3% to Rs 773.70 and second quarter net interest income fell 5% to Rs 2,036 crore from Rs 2,147.6 crore a year ago. Net profit for the quarter rose 2.6% to Rs 1,040 crore compared to net profit of Rs 1,014 crore a year ago.

Indian Oil Corporation Limited fell 1.9% to Rs 309.70 after the oil refining and marketing firm said second quarter sales fell 19% to Rs 60,392.9 crore from Rs 74,705.8 crore a year ago. Net profit for the quarter was Rs 284.4 crore compared to net loss of Rs 7,047.1 crore a year ago.

KPIT Cummins Infosystems Limited increased 3.1% to Rs 79.50 after it agreed to acquire Sparta Consulting, USA with a purchase price of $38 million to be paid over a period of three and a half years.

Mundra Port and Special Economic Zone Limited fell 6.7% to Rs 473.45.

Reliance Industries Limited fell 2.5% to Rs 1,951.00 after the energy conglomerate said the company reported a 6.4% drop in its net profit for the second quarter of the fiscal.

Sical Logistics Limited fell 1.4% to Rs 61.05 after the provider of integrated solutions for offshore logistics said second quarter sales rose 3.2% to Rs 127.1 crore from Rs 123.1 crore a year ago. Net profit for the quarter was Rs 2.4 crore compared to net loss of Rs 41.9 crore share a year ago.

Shasun Chemicals and Drugs Limited rose 4.8% to Rs 32.45.

Sterlite Industries (India) Limited rose 4.1% to Rs 777.00 said it has filed regulatory application for a $1.1 billion IPO on a day a smaller rival slumped on market debut.

The steel making company said second quarter sales fell 19% to Rs 9,944 crore from Rs 12,238.5 crore a year ago. Net profit for the quarter fell 17.3% to Rs 1,663 crore compared to net profit of Rs 2,010 crore share a year ago.

Strides Arcolab Limited decreased 4.0% to Rs 156.55 an integrated manufacturer and exporter of finished pharmaceutical dosage forms for both branded and generic said third quarter net profit tumbled 81.2% to Rs 19.73 crore.

Unity Infraprojects Limited fell 1.0% to Rs 437.95 after the engineering contractor secured a contract worth Rs 265.39 crore for re-development of R.N. Cooper Hospital in Mumbai.

Valecha Engineering Limited the business of construction and infrastructure fell 0.3% to Rs 94.50.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 143.64 or 1.45% to 10,034.74, Hang Seng index in Hong Kong increased 487.88 or 2.29% to 21,752.87, and CSI 300 index in China higher 33.32 or 1.03% to 3,280.37. ASX 200 index in Australia increased 68.50 or 1.50% to 4,643.20. The FTSE Bursa KL Composite index in Malaysia was higher 1.48 or 0.12% to 1,243.23.

The Kospi Index in South Korea decreased 5.16 or 0.33% to close at 1,580.69, SET index in Thailand closed lower 4.86 or 0.70% to 685.24. JSE Index in Indonesia increased 23.67 or 1.01% to 2,367.70. The Sensex index in India decreased 156.44 or 0.97% to 15,896.28.