Companias
INFOSYS TECHNOLOGIES
At the Pinnacle
I
Infosys has maintained consistent growth over the years. During 2004-05, its income from operations surged by 44 per cent to Rs 6,859 crore over 2003-04, likewise, net profit galloped by 53 per cent to Rs 1,904 crore. The company’s spending on research and development (R & D) climbed up by 67 per cent to Rs 74.4 crore during the year under review. The company’s software exports revenue increased by 43 per cent over 2003-04 to Rs 6,726 crore.
Infosys has expanded its presence in Kerala; the state government allotted 50 acres of land to the company to set up a special economic zone in Thiruvananthapuram. In the first phase it will invest Rs 50 crore to start construction of the software development centre and in the second and third phases, it will invest an additional Rs 100 crore to enhance capacity. Infosys has signed a partnership agreement with Paris-based embedded communications company Wavecom SA to address the growing machine-to-machine wireless connectivity market. Infosys has received a three-year contract of 31 million euros to set up a R & D facility for Alstom, a French engineering group that makes power plants, locomotives and ships. Infosys has won outsourcing contracts worth $ 140 million for five years from Dutch bank ABN Amro. The company’s main focus would be to develop, support and enhance a wide spectrum of applications for ABN Amro bank for north America, part of Europe and new markets such as Hong Kong and Singapore.
Infosys posted strong financial results for the first three quarters of 2005. For April-June 2005, its income from operations went up by 33.7 per cent to Rs 1,967 crore over the same period of the previous year and net profit increased by 32.8 per cent to Rs 523.9 crore. For July-September 2005, the company’s total revenue rose by 28 per cent to Rs 2,170 crore and net profit grew by 30 per cent to Rs 592 crore over the same period of the previous year. During the quarter ended September 2005, the company invested around Rs 22 crore in its wholly owned subsidiary, Infosys Consulting Incorporated (USA). For the third quarter ended December 2005, its total income expanded by 33 per cent to Rs 2,398 crore over the corresponding period of the previous year and net profit grew by 29 per cent to Rs 642 crore. Infosys added 36 new clients during the third quarter of 2005.
m GUJARAT ALKALIES AND CHEMICALS
Diversifying
G
GACL reported robust financial performance during 2004-05. Its net sales rose by 19 per cent to Rs 1,278 crore over the previous year and net profit registered a whopping 128 per cent increase to reach Rs 144 crore. During the year under review, production of the caustic soda group of products increased by 7.49 per cent to 10.04 lakh MT and other products reported healthy growth. The company manufactures 23 products and derives 65 per cent of its revenues from the chlor-alkali business and 35 per cent from other products.
GACL undertook various expansion and diversification plans during 2004-05. It installed a 100-TPD caustic soda flaking unit at Dahej and commenced production in April 2005. The company is also setting up a 12,540 TPA hydrogen peroxide unit at Dahej that is to be completed by October 2006.
GACL has become the first Indian entity to get carbon trading credit by switching over to less polluting fuels at its four projects. These credits were gained by switching fuel from naphtha to natural gas in the captive power plant, changing from natural gas to hydrogen in its plant located at the Dahej complex and energy efficient and fuel switching measures in the caustic soda and sodium cyanide plants located at the Baroda complex of the company. These measures will help in reducing green house gas (GHG) emissions by the use of less GHG intensive fossil fuel, contributing to lower contamination of the environment.
For the first two quarters of 2005, GACL reported strong financial results. For April-June 2005, the company’s net sales jumped by 36 per cent to Rs 246 crore over the same period of the previous year and net profit
Economic and Political Weekly February 4, 2006
m the previous year, its net profit went up
| The Week’s Companies | (Rs lakh) swelled by 507 per cent to Rs 63 crore. For the quarter ended September 2005, | ||||
|---|---|---|---|---|---|
| Infosys | GACL | JBF Industries GACL’s net sales increased by 9.5 per | |||
| Financial Indicators 2004-05 | 2003-04 | 2004-05 | 2003-04 | 2004-05 | 2003-04 cent to Rs 235 crore over the same period |
| Income/Appropriations | of the previous year and net profit grew by 59 per cent to Rs 57.6 crore. | ||||
| 1 Net sales 685966 | 476089 | 127849 | 107163 | 73961 | 53465 |
| 2 Value of production 685966 | 476089 | 127583 | 106962 | 73593 | 53531 JBF INDUSTRIES |
| 3 Other income 12750 | 12739 | 391 | 218 | 60 | 74 |
| 4 Total income 698716 | 488828 | 127974 | 107181 | 73653 | 53605 |
| 5 Raw materials/stores and spares/ | Momentum Continues | ||||
| power and fuel consumed 4020 | 2872 | 60126 | 60554 | 62105 | 41637 |
| 6 Other manufacturing expenses 0 | 0 | 96 | 401 | 578 | 740 |
| 7 Remuneration to employees 318200 | 236586 | 4674 | 4797 | 830 | 715 |
| 8 Other expenses 129021 | 78222 | 23179 | 17174 | 1030 | 1262 as a private company under the nameJBF Industries (JBF) incorporated in 1982 |
| 9 Depreciation 26822 | 23090 | 7683 | 7782 | 2312 | 2195 JBF Synthetics became a public limited |
| 10 Gross profit 220653 | 148058 | 32217 | 16472 | 6797 | 7054 |
| 11 Interest 0 | 0 | 5976 | 7913 | 1826 | 2368 company in the year 1986 and was renamed |
| 12 Operating profit 220653 | 148058 | 26242 | 8560 | 4971 | 4686 in 1989. Its manufacturing factory situated |
| 13 Non-operating surplus/deficit 2315 | -1011 | 685 | 276 | 63 | 54 at Silvassa produces partially oriented yarn |
| 14 Profit before tax 222968 | 147047 | 26926 | 8836 | 5034 | 4740 (POY) and polyester chips. |
| 15 Tax provisions 32530 | 22700 | 12499 | 2521 | 2110 | 2003 JBF has maintained its growth momen |
| 16 Profit after tax 190438 | 124347 | 14428 | 6315 | 2924 | 2737 |
| 17 Dividends (includes tax on dist profit) 30980 | 86246 | 1102 | 551 | 620 | 620 tum in sales and profit over the years. |
| 18 Retained profits 159458 | 38101 | 13326 | 5764 | 2304 | 2117 During 2004-05, its net sales rose by 38 |
| Liabilities/assets | per cent to Rs 739.6 crore over 2003-04 | ||||
| 19 Paid-up capital 13529 | 3332 | 7344 | 7344 | 3102 | 3102 and net profit increased by 6.8 per cent to |
| 20 Reserves and surplus 510644 | 322011 | 46841 | 33671 | 16441 | 14509 Rs 29 crore. During the year under review, |
| 21 Long-term loan 0 | 0 | 3649 | 16357 | 2049 | 230 the company’s production of polyester |
| 22 Short-term loan 0 | 0 | 50332 | 60721 | 13365 | 14695 |
| (i) of which, bank borrowings 0 | 0 | 48785 | 56612 | 8046 | 14020 chips increased by 26 per cent to about 1 |
| 23 Gross fixed assets 250024 | 177371 | 167554 | 161951 | 47565 | 45401 lakh MT and its POY production grew by |
| 24 Accumulated depreciation 100582 | 80341 | 73485 | 65788 | 14355 | 11684 6 per cent to 57,572 MT over the same |
| 25 Inventories 0 | 0 | 6500 | 6126 | 1644 | 1716 period of the previous year. The company’s |
| 26 Total assets/liabilities 655374 | 496142 | 138401 | 137193 | 42328 | 41077 earnings in foreign exchange grew by 416 |
| Miscellaneous items | |||||
| 27 Excise duty 0 | 0 | 0 | 0 | 15476 | 12728 per cent to Rs 10.7 crore during the year under review. |
| 28 Gross value added 557096 | 399429 | 44239 | 28857 | 10024 | 10012 |
| 29 Total foreign exchange earnings 610502 | 453253 | 1157 | 1179 | 1074 | 208 JBF Industries is on a Rs 300 crore |
| 30 Total foreign exchange outgo 290301 | 200754 | 1709 | 236 | 528 | 1486 expansion mode, aimed at enhancing |
| Key financial and performance ratios | the capacity of its POY manufacturing unit | ||||
| 31 Turnover ratio (sales to total assets) 1.2 | 1.1 | 0.9 | 0.8 | 2.1 | 1.6 and setting up a new plant for producing |
| 32 Gross value added to gross | polyester chips. The new plant at Sarigram, | ||||
| fixed assets (%) 260.7 | 255.8 | 26.9 | 17.9 | 21.6 | 22.9 |
| 33 Return on investment (gross profit | near the present one in Silvassa, will manu | ||||
| to total assets) (%) 38.3 | 34.9 | 23.4 | 12.0 | 16.3 | 17.6 facture polyester chips and will be opera |
| 34 Gross profit to sales | tional by March 2006. The Sarigram plant | ||||
| (gross margin) (%) 32.2 | 31.1 | 25.2 | 15.4 | 9.2 | 13.2 will have a production capacity of 2.16 |
| 35 Operating profit to sales (%) 32.2 | 31.1 | 20.5 | 8.0 | 6.7 | 8.8 lakh tonne per annum, thereby raising the |
| 36 Profit before tax to sales (%) 32.5 | 30.9 | 21.1 | 8.2 | 6.8 | 8.9 |
| 37 Tax provisions to profit before tax (%) 14.6 | 15.4 | 46.4 | 28.5 | 41.9 | 42.3 company’s total capacity to 3.36 lakh tonne |
| 38 Profit after tax to net worth | a year and will have an investment of | ||||
| (return on equity) (%) 44.8 | 40.7 | 30.3 | 17.3 | 15.7 | 15.9 Rs 170 crore. The company has entered |
| 39 Dividend (%) 197.8 | 2256.8 | 12.9 | 6.5 | 17.1 | 17.4 into a joint venture agreement with |
| 40 Earnings per share (Rs) 70.4 | 186.6 | 19.6 | 13.8 | 9.4 | 8.8 Ras Al Khaimah Investment Authority |
| 41 Book value per share (Rs) 193.7 | 488.2 | 73.8 | 89.3 | 63.0 | 56.8 (RAKIA), for setting up a world scale |
| 42 P/E ratio (multiple) 34.8 | 28.7 | 7.6 | 4.6 | 7.2 | 7.4 |
| 43 Debt-equity ratio (adjusted for | PET polymer resins plant in the emirate of | ||||
| revaluation) 0.0 | 0.0 | 1.0 | 1.9 | 0.8 | 0.9 Ras Al Khaimah. |
| 44 Short-term bank borrowings | JBF has performed well during the first | ||||
| to inventories (%) 0.0 | 0.0 | 750.6 | 924.1 | 489.4 | 817.1 two quarters of 2005. For the quarter |
| 45 Sundry creditors to sundry | ended June, its net sales improved by 15 per | ||||
| debtors (%) 37.0 | 68.0 | 22.0 | 23.7 | 12.8 | 50.2 cent to Rs 191.9 crore over the same period |
| 46 Total remuneration to employees | |||||
| to value added (%) 57.1 | 59.2 | 10.6 | 16.6 | 8.3 | 7.1 of the previous year and net profit jumped |
| 47 Total remunerations to employees | by 148 per cent to Rs 9.5 crore. For July | ||||
| to value of production (%) 46.4 | 49.7 | 3.7 | 4.5 | 1.1 | 1.3 September 2005, though the company’s |
| 48 Gross fixed assets formation | net sales declined by 5 per cent to Rs 178 | ||||
| (% growth) 41.0 | 31.4 | 3.5 | 0.5 | 4.8 | 8.2 crore over the corresponding period of |
| 49 Growth in inventories (%) 0.0 | 0.0 | 6.1 | 21.5 | -4.2 | 17.5 |
Note: P/E multiples are the latest with corresponding last year’s figures. by 25 per cent to Rs 10 crore.
m Economic and Political Weekly February 4, 2006
