Annual Report Highlights FY 12-13 : Piramal Enterprises

As per Chairman company is now committed to focus in three sectors: Pharmaceuticals, Financials and Information Management with substantial investment in each.  Company acquired Decision Resource Group (DRG).  DRG caters to the healthcare industry to provide research, information and analytics solutions.  Company also acquired Bayer’s imaging business and they have submitted the imaging agent (Florbetaben) for approval to USFDA and EMA.  Company also grew the NBFC business to invest in real estate and education sector.  They also made investments into infra-structure sector with investments of 925 cr.

Annual Report Highlights FY 12-13 : Engineers India Limited

For the financial year the company secured new business of Rs 1438 Cr which is around 89% higher than last year and most of it (Rs 1296 Cr) has been in consultancy segment.   Company seems to concentrate more on the consultancy segment going forward.  This is high margin segment unlike the turnkey which is low margin. Company’s mainstay continues to be Hydro Carbon  followed by Chemicals and Fertilizers.  Overseas consultancy contribution is around 12% of the total consultancy contribution.  Company has come out with a new project execution solution called Open Book Estimate which is beneficial to both customers and contractors.  They have secured some orders based on this mode.  Only time will tell if this is beneficial as the impact could not be understood.  As per company most of the competitors are introducing many business models and any core competencies are imitable and competitive advantage is short lived.  There is really no moat in these businesses.  Company was granted one patent and has applied for another one.  Company currently has 13 live patents and 17 are in pending approval.

Annual Report Highlights FY 12-13 : SUN TV

Topline was almost flat  and slightly positive while the bottom line was flat and slight negative.  Dividend was maintained at last year levels of Rs9.50.  Company successfully bid for the IPL franchise and has been awarded the Hyderabad Franchise.   Kal and South Asia FM had revenues of Rs112 cr and 90cr.  After minority interest, the profit of two subsidiaries was around 10.85 cr and 6.5 cr.  Both the subsidiaries have turned profit this year and are likely to get better in the coming years.  As per company, it has managed to have dominant position in southern states and it is the only player with maximum reach in the area it operates. 

Annual Report Highlights FY 12-13 - HDFC

Chairman has been candid in this one as his usual self.  He clearly mentions the vested interests that operate in the real estate segment which delay the crucial land acquisition bill and approval for real estate regulator to regulate the developers.  Also, he has commented that developers have to reduce the prices and concentrate on affordable housing as there is demand for that.  He does mention the risks that come in due to teaser rates and also developer financing through the customers.

The subsidiaries now contribute well over 27% of the total profit compared to 10% in 2010 which is incredible. Deposits of HDFC continue to be rated AAA. FII holding is at 74%. 

Annual Report Highlights FY 12-13 - Mayur Uniquoters

Company has successfully launched knitting unit as part of backward integration plan which should improve margins due to lower rejected.  Company is pursuing Mercedes and  GM accounts to add to the OEM portfolio.  Company is working in installing the 5^th coating line and the production of 6 lakh linear meters is likely to commence in Nov 2013 taking the entire capacity to 2.5M linear meters per month.  Company has already bought land for 6^th coating line and the expansion is planned next year to take the capacity to 3.1M lpm.   During last year company had very good volume growth as well as value growth.  The 5^th coating line would cater to the export demand.

Mayur is now the largest of the organized players in synthetic leather industry.  The revenue streams are primarily contributed by footwear (50%) and auto (35%)  and auto replacement. 

Annual Report Highlights FY 12-13 - BHEL

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Company now has a widespread network of 16 manufacturing units,    two       repair   units,    four regional offices, eight service centers, eight     overseas offices,  15 regional  centers,  seven  joint        ventures and infrastructure to execute   more than 150 project   sites across India & abroad.   It has augmented capacity to deliver up to 20,000 MW pa of power equipment.  BHEL is the largest manufacturer of power equipment in India. Company has indigenously manufactured first sub critical set of 600MW in North Chennai last year.  Apart from power sector they have exposure to Industry, transportation, oil and gas and renewables (budding sectors).

Company has maintained its inventory better.  Other liabilities has increased due to reduction in advance from customers. 

Annual Report Highlights FY 12-13 - HDFC Bank

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Bank grew its retail operations this year with addition of 458 branches and 816 ATMs.  Over the last year, PAT was up 30%.  Net Interest Income up 22.7%.  Fees and other Income grew by around 18%.  Deposits went up by 20% and advances by 22.7%.  Total numbers of branches are 3062 and ATMs stand at 10743. Bank had Capital Adequacy Ratio of around 17% and Tier-1 CAR of 11.1%.  .  Return on Equity stood at 20.1% and Return on assets at 1.9%. 

CASA Deposits constituted 47.4% of the total deposits.  Over the last year CASA deposits grew by more than 24%.  Retail advances grew by 27.3% whereas non retail grew by meager 16.9%.  Given the business environment, non-retail has been slow.  Net Interest Margins were at  4.5%.  Gross NPAs were at 0.97%.  Net NPAs were at 0.2%.  Restructured assets were at 0.2% of gross advances .  Provision coverage is at 80%.   Total restructured assets stood at 528 Cr.

Other Income forms about 16% of the total operating revenue of the bank.   Loan portfolio quality wise HDFC has better asset quality than Axis.  However, it is available at twice the valuation of Axis.

Annual Report Highlights FY12-13 - Axis Bank

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Bank grew its retail operations this year with addition of 325 branches and 1321 ATMs.  Over the last 5 years, the Savings deposits grew by healthy 26% and Current accounts by around 19%.  Retail advances grew by 31% against total advances growth of 26%.  Bank is concentrating now on retail which is good.  Return on Equity stood at 20.5% and Return on assets at 1.7%.  Over the last year, PAT was up 22%.  Net Interest Income up 20.5%.  Fees and other Income grew by around 14%.  Deposits went up by 22% and advances by 16%.  Total numbers of branches are 1947 and ATMs stand at 11245. Bank had Capital Adequacy Ratio of  17% and Tier-1 CAR of 12.23%.

Annual Report Highlights FY12-13 - Atul Auto

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Company had a volume growth of 19% and value growth of 22%.   Net profit growth was at impressive 66% due to economies of scale.   Company has introduced another new product called Atul Gemini DZ which is a diesel variant.  Company now has Atul Shakti, GEM, Smart and Gemini.  Company caters to both cargo segment and passenger segment.  Company has installed capacity of 48000 vehicles as off date. Company is improving its dealers and distribution network.  It has 150 exclusive dealers, more than 100 sub dealers, 14 regional offices and 3 trg centers in 16 states.  Margins have improved and company is now debt free.   Capital expenditure has been normal.  Company sells around 32000 autos in a year currently.  So, there will not be any immediate capex for next 2 to 3 years atleast in my opinion. Sales and general admin expenses have come down this year compared to last year which increased the margins.  Company now supplies Petrol, Diesel, CNG and LPG variants. 

Overall 3 wheeler segment is grew at only 4.87% domestically and there was a sharp de-growth of -16% in exports.  Atul was able to grow only because of entry into new geographies in domestic market and increasing dealership network.

Annual Report Highlights FY12-13- Ajanta Pharma

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Ajanta now ranks 45^TH in India Pharmaceutical market.  They specialize in Specialty segments like Ophthalmology, Dermatology and Cardiology.  They launched 19 new products in the Indian market out of which 4 were first to market.  Ajanta is now present in 25+ countries via branded generics.  They have a healthy pipeline of products (1592 approved product registrations and 1218 awaiting approval).  Company launched their first product in USA.   Currently 12 ANDA are under approval and 2 are already approved.  They have also filed in Europe and currently have one approval in hand.  Company grew its top line by 37% and bottom line by 45%.  Emerging markets account for 65% of the business currently.  Company is present in Africa, CIS, West Asia South-East Asia and Latin America.  Company currently has 380+ professionals selling their products on ground. Both Mauritius and Philippines subsidiaries have started turning in profit and they are used to penetrate into Asian markets.   The additional capacity being set up in Gujarat is expected to be operation during FY14-15.  Company plans to file about 6 to 8 ANDA every year.  Exports contribute about 65% of the total sales.