Despite a healthy order book, the capital goods industry is showing signs of strains with lower pace of order execution as well as inflow on slowdown in manufacturing and private-sector infrastructure investment. While the low pace of order execution pinched revenue booking, the lower order flow intensified competition and pressure on margin. Against this background, the performance of the capital goods sector players was mixed in the quarter ended J un 2009.
The result of Suzlon Energy was not available till the compilation of these aggregates. Excluding it, sales revenue of the other 25 companies forming part of the BSE Capital Goods index rose 12% to Rs 26866 crore. The operating profit margin (oPM) was flat at I 1.5%, thus facilitating operating profit (OP) to grow 12% in to Rs 3088 crore. Eventually, net profit was up 18% to Rs 2127 crore largely on account of lower tax incident. Taxation was lower by 14% to Rs 800 crore, which facilitated net profit to increase 18% to Rs 2127 crore. The aggregates were influenced by a handful of players, led by industry heavy weights of Larsen & Toubro, Bhel and Crompton Greaves.
Larsen & Toubro reported impressive performance powered by its core engineering and construction business. Sales were higher by 7% to Rs 7408.29 crore in the quarter ended June 2009 over the June 2008 quarter. But excluding the divested readymix-concrete (RMC) business, sales was up II %. Higher sales together with 100 basis-point (bp) expansion in oPM facilitated oP to jump 17% to Rs 831.91 crore. Building on the good operating show, profit before tax was higher by 13% and net profit by a whopping 218% to Rs 1598.20 crore. The sterling growth in the bottom line was on account of one-time income ofRs 1020 crore on account of profit on sale of its investment in the RMC business and lower tax incidence. Even after excluding the one-off item, normal profit was higher by a strong 45%.
Consolidated revenue ofPunj Lloyd rose 12% to Rs 2972.78 crore. With its oPM improving 220 bps, OP jumped 41% to
III
Orders set to resume
Rs 309.43 crore. Eventually, net profit increased II % to Rs 125 crore. The strong consolidated show ofPunj Lloyd was largely due to improvement in its overseas subsidiary as standalone net profit tumbled 18% to Rs 68.72 crore even as sales rose 23% to Rs 1924.53 crore.
Amidst intense competition, Crompton Greaves managed to grow its consolidated sales 8% to Rs 2197.52 crore on a higher base. The strong bottom line growth on a modest revenue rise was facilitated by strong operating performance with oPM expanding 100 bps to 11.3%, thus powering oP's 18% rise to Rs 247.64 crore. Net profit rose 31 %, helped by higher other income and lower interest and tax.
The result of Suzlon Energy was not available till the compilation of these aggregates. Excluding it, sales revenue of the other 25 companies forming part of the BSE Capital Goods index rose 12% to Rs 26866 crore. The operating profit margin (oPM) was flat at I 1.5%, thus facilitating operating profit (OP) to grow 12% in to Rs 3088 crore. Eventually, net profit was up 18% to Rs 2127 crore largely on account of lower tax incident. Taxation was lower by 14% to Rs 800 crore, which facilitated net profit to increase 18% to Rs 2127 crore. The aggregates were influenced by a handful of players, led by industry heavy weights of Larsen & Toubro, Bhel and Crompton Greaves.
Larsen & Toubro reported impressive performance powered by its core engineering and construction business. Sales were higher by 7% to Rs 7408.29 crore in the quarter ended June 2009 over the June 2008 quarter. But excluding the divested readymix-concrete (RMC) business, sales was up II %. Higher sales together with 100 basis-point (bp) expansion in oPM facilitated oP to jump 17% to Rs 831.91 crore. Building on the good operating show, profit before tax was higher by 13% and net profit by a whopping 218% to Rs 1598.20 crore. The sterling growth in the bottom line was on account of one-time income ofRs 1020 crore on account of profit on sale of its investment in the RMC business and lower tax incidence. Even after excluding the one-off item, normal profit was higher by a strong 45%.
Consolidated revenue ofPunj Lloyd rose 12% to Rs 2972.78 crore. With its oPM improving 220 bps, OP jumped 41% to
III
Orders set to resume
Rs 309.43 crore. Eventually, net profit increased II % to Rs 125 crore. The strong consolidated show ofPunj Lloyd was largely due to improvement in its overseas subsidiary as standalone net profit tumbled 18% to Rs 68.72 crore even as sales rose 23% to Rs 1924.53 crore.
Amidst intense competition, Crompton Greaves managed to grow its consolidated sales 8% to Rs 2197.52 crore on a higher base. The strong bottom line growth on a modest revenue rise was facilitated by strong operating performance with oPM expanding 100 bps to 11.3%, thus powering oP's 18% rise to Rs 247.64 crore. Net profit rose 31 %, helped by higher other income and lower interest and tax.
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