Tokyo: Suzuki Motor Corp. on Thursday reported a 17% fall in quarterly profit as rising raw material costs erased its gains from higher sales, and it kept its forecasts without the help of more favourable currency rates.
April-June operating profit was 33.80 billion yen (Rs 1,330.6 crore), compared with an average estimate of 36.0 billion yen in a ‘Reuters’ poll of eight brokerages. Net profit rose 6.9% to 26.03 billion yen on revenue of 910.4 billion yen, up 1.8%.
For the fiscal to the end of next March, Suzuki kept its forecast for an operating profit of 140 billion yen and net profit of 80 billion yen, down 6.3% and 0.3%, respectively, from last year. It kept its currency assumptions unchanged for the year, setting a more cautious 95 yen to the dollar and 150 yen to the euro for the second half of the year. Last week, Suzuki’s Indian unit, Maruti Suzuki India Ltd reported a 7% fall in first-quarter profit also hit by high input costs. Reuters
JSW Steel profit down 52% on govt curbs
Mumbai: India’s third largest steel maker JSW Steel Ltd on Thursday said first quarter net profit fell 52% due to a cap on prices, higher input costs and foreign exchange losses.
The company’s standalone net profit fell to Rs219.35 crore from Rs468.45 crore in the year-ago period. Net sales, however, rose 54% to Rs3,671.49 crore.
JSW’s adjusted earnings margins before interest, taxes, depreciation and amortization dropped to 22.7% as against 34.4% previously, due to a 61% rise in raw material costs, the company said.
Managing director Sajjan Jindal said at a news conference he sees a squeeze on the company’s margins over the next three to four months.
Indian steel makers haven’t been able to pass on the rising costs to their customers as the government ordered a three-month freeze on prices in May to check record inflation. The ban ends on 8 August. With the depreciation of the rupee, JSW’s unrealized exchange loss came in at Rs311.44 crore on restatement of foreign currency borrowings, current liabilities and foreign currency convertible bonds.
JSW also said that in Chile, where it bought 70% equity in Santa Fe Mining, its total investment for an iron ore mine and a mega port is about $1 billion (Rs 4,250 crore).
JSW shares fell more than 2% to close at Rs734.40 on the Bombay Stock Exchange, on a day when the Sensex closed half a percent up at 14,355.75 points. Its shares have lost more then 43% since the start of the year, compared with a drop of 35.5% in the BSE Metal index.Ankur Relia
Castrol India’s Q2 net rises to Rs82.8 crore
Mumbai: Castrol India Ltd, a unit of Europe’s second largest oil company BP Plc., reported second quarter profit rose 26%. Net income rose to Rs82.8 crore, from Rs 65.9 crore in the year earlier period, the Mumbai-based company said in a statement posted on the website of the Bombay Stock Exchange. Revenue rose 15% to Rs631 crore from Rs548 crore, it said. The company plans to pay Rs6 a share as a mid-year dividend. Bloomberg
Titan Q1 net profit more than doubles
Mumbai: Watch and jewellery retailer Titan Industries Ltd on Thursday posted a more-than-double rise in net profit for the quarter to June, ahead of market estimates.
Titan, which retails jewellery brand “Tanishq” and watch brands “Sonata” and “Titan”, said net profit stood at Rs32.2 crore from Rs12.6 crore a year ago, while net sales grew 21.6% to Rs810 crore. A “Reuters” poll of brokerages estimated net profit at Rs26.9 crore on net sales of Rs900 crore.
Although the company’s net sales fell short of expectations, the net profit margin expanded to 4% from 1.9% a year earlier.
“Despite high inflation, spiralling oil prices and high volatility in gold prices, all the divisions of the company have performed well,” the company said in a statement to the stock exchange.
Revenue from the watch division was Rs172 crore while the jewellery business contributed Rs616 crore, the company said. The watches division revenue grew just 1.8% over the year ago while jewellery segment sales were up by 32%. Bloomberg
Nestle India’s Q2 net income increases 26%
New Delhi: Nestle India Ltd, a unit of the world’s biggest food company, reported second quarter profit rose 26%. Net income advanced to Rs121 crore in the three months ended 30 June from Rs95.6 crore a year earlier, the New Delhi-based company informed the Bombay Stock Exchange on Thursday. Revenue gained 24% to Rs1,040 crore from Rs842 crore.
Nestle India shares closed at Rs1,632.65 in Mumbai trading. The announcement was made after the markets were closed for trading on Thursday. Bloomberg
Bharat Forge posts 49% drop in Q1 profit
Mumbai: Automobile parts maker Bharat Forge Ltd posted a 49% drop in fiscal first quarter profit due to losses on foreign currency bonds.
Net income dropped to Rs40.9 crore in the three months ended June, from Rs80.43 crore a year earlier, the Pune-based firm said in an emailed statement. Revenue rose 22% to Rs1,320 crore. The company recorded a loss of Rs69.34 crore on foreign currency assets and loans due to the fluctuation in exchange rates, it said in the statement.
Shares in the company gained 4.97% to close at Rs255.45 on the Bombay Stock Exchange. The results were announced before close of trading.Bloomberg
Tata Steel Q1 net rises on higher prices
Mumbai: Tata Steel Ltd reported a 22% increase in first quarter profit, excluding contributions from unit Corus Group Plc., after increasing prices and output of higher-grade products. Net income rose to Rs1,488 crore in the three months to June from Rs1,220 crore a year earlier. Five analysts in a “Bloomberg” survey had predicted a median profit of Rs1,310 crore. Sales climbed 47%.
The firm had a foreign-exchange loss of Rs303 crore in the period after a 7% slide in the rupee against the dollar forced the steel maker to revalue its overseas convertible bonds. Interest costs surged more than fivefold in the quarter to Rs242 crore, the company said. Bloomberg