Financial News On-The-Go

• Hindustan Unilever Ltd., India’s biggest household products maker, reported dip in profits for the second time in three quarters due to increase in raw material prices. Net income fell 1.7% to INR6.38 billion ($140 million) in three months ending Dec. 31, from INR6.49 billion a year earlier.

• Ipca Laboratories reported a 9.79%  jump in its net profit after tax for the quarter ended December 31, 2010, at Rs 63.95 crore. The company had posted a net profit after tax of Rs 58.25 crore in the corresponding period previous year.

• Engineering and construction major Larsen & Toubro (L&T) said it has inked a joint venture agreement with Japan-based Kobe Steel to manufacture internal mixers and twin screw roller-head extruders for the tyre and rubber industry for global markets, including India. The JV will invest around INR60 crores for setting up  manufacturing facility and related infrastructure. The strategic partnership enables the JV to leverage the technology leadership of Kobe in this segment as well as the market reach of L&T through its customer base in India and abroad.

• Sesa Goa Limited announced its unaudited consolidated results for the third quarter and nine months ended 31 December 2010. Consolidated revenues and profit after tax were Rs. 2,250 crores and Rs.1,068 crores, respectively, for Q3. Saleable iron ore production during Q3 and the nine month period was 5.29 million tons and 14.84 million tons, a 5% decrease and 9% increase, respectively, as compared to the corresponding prior periods.

• Sterlite Industries India Ltd., the nation’s largest producer of base metals, reported a 60% gain in third-quarter profit, aided by higher prices.Net income climbed to INR11.01 billion ($241 mn) in the three months ended Dec. 31 from INR6.87 billion a year earlier.

• Godrej Industries: The net sales have increased by 19% to Rs. 1024.17 crore on back of 47% growth in estate & property development and 39% growth in chemical business. OPM has increased by 82 basis points to 4.1% due to fall in raw material cost and purchased of traded goods. The profit before tax before exceptional items stood at Rs. 34.9 crore, a 571% growth due to rise in margin and other income.The consolidated net sales for 9M FY11 grew by 21% to Rs. 2981.82 crore on back of 32% rise in sales of vegetable oil, 26% rise in chemical business and 35% rise in estate and property business. OPM has decreased by 20 basis points to 3.4% due to rise in the cost of sales of property developments. The profit before tax before exceptional items stood at Rs. 125.43 crore, inclined by 98% due to increase in other income and fall in interest cost.

• Jindal Power IPO likely in 3-4 months to raise Rs 7200 cr.