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The Mint Report for 21 July 2011

The Mint Report for 21 July 2011
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First Published: Thu, Jul 21 2011. 11 01 PM IST
Updated: Thu, Jul 21 2011. 11 01 PM IST
Hero Honda’s first quarter earnings have overtaken expectations. Its numbers were helped along by strong demand and lower tax payments. Net profit rose 13% to Rs558 crore in the three months to June. And revenues shot up 32% to Rs5,683 crore.
Hero Honda has benefited from a slight easing in raw materials costs. And the company says it expects a further softening in the quarters to come, which will increase its margins. But it added that there would be some extraordinary spending in the following months as the company invests in its re-branding campaign. Shares of the firm jumped 1.57% to 1788.85 on a day the Sensex lost 0.36%.
Meanwhile another private lender didn’t do as well. Kotak Mahindra Bank saw a rise in profits but a fall in margins. Net profit grew 27% to Rs416 crore. Net interest income was at Rs920 crore compared to Rs725 crore in the year ago period. But the bank’s net interest margin fell to just 5% compared to 5.4% earlier. Kotak said it expects to hold its margins at 5% in the coming quarters. But investors remained wary and shares of the bank lost 2.98% on the BSE to 475.90 by the end of trade.
Indian markets fell for a second day in a row over growing concerns about corporate earnings and rising interest rates. The Sensex dropped 66 points to 18,436. And the Nifty tumbled 25 to 5,542.
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First Published: Thu, Jul 21 2011. 11 01 PM IST