>Gwalior Chemical(LKP SHARES)

Gwalior Chemical Industries Ltd. (GCIL) is a producer of toluene - based (derivative of crude oil) specialty
chemicals. Toluene being sensitive to crude oil prices, GCIL enters into price fixing contracts with suppliers
on a monthly/quarterly basis for requirements for upto 3 months to hedge its position against rising prices.
What once was beneficial to the company in the face of ever increasing crude oil prices has turned
detrimental due to steep fall in prices.

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>TRIVENI ENGINEERING(PINC RESEARCH)

Triveni Engineering and Industries Ltd. (TEIL) reported a YoY
growth of 41% in net sales to Rs4.3bn for Q4FY08, led by
healthy performance across its divisions. The company changed
the accounting policy relating to recognition of carbon credit
income, thus impacting profits to the extent of Rs90mn. OPM
expanded by 330bps to 18.6%, led by turnaround of sugar
operations coupled with improved margins in distillery division.
Net profits surged by 5.4x to Rs270mn.
! Sugar sales higher by 35%
Sugar despatches rose 35% to 143.8k mt whereas realisations improved
by 21% to Rs16.2k/mt. As on Sep’08, TEIL is carrying ~256k mt of
sugar inventory against 186.5k mt as on Sep’07. This should help the
company capitalise on firm sugar prices.
! Margins expand by 330bps to 18.6%
OPM expanded 330 bps to 18.6% on back of turnaround in sugar division
and improved contribution from distillery segments. Accordingly,
operating profits surged 71% to Rs796mn.
! SAP for SS 08-09 at Rs140/quintal
In Oct’08, UP government announced SAP of Rs140/quintal for
SS 08-09 against Rs125/quintal in SS 07-08 and Rs110/quintal paid by
sugar mills as per the Supreme Court order. The UPSMA has contested
the SAP announcement in the Allahabad High Court questioning the
methodology in arriving at the SAP.

To read full report TRIVENI ENGINEERING(PINC RESEARCH)

>TRIVENI ENGINEERING(PINC RESEARCH)

Triveni Engineering and Industries Ltd. (TEIL) reported a YoY
growth of 41% in net sales to Rs4.3bn for Q4FY08, led by
healthy performance across its divisions. The company changed
the accounting policy relating to recognition of carbon credit
income, thus impacting profits to the extent of Rs90mn. OPM
expanded by 330bps to 18.6%, led by turnaround of sugar
operations coupled with improved margins in distillery division.
Net profits surged by 5.4x to Rs270mn.
! Sugar sales higher by 35%
Sugar despatches rose 35% to 143.8k mt whereas realisations improved
by 21% to Rs16.2k/mt. As on Sep’08, TEIL is carrying ~256k mt of
sugar inventory against 186.5k mt as on Sep’07. This should help the
company capitalise on firm sugar prices.
! Margins expand by 330bps to 18.6%
OPM expanded 330 bps to 18.6% on back of turnaround in sugar division
and improved contribution from distillery segments. Accordingly,
operating profits surged 71% to Rs796mn.
! SAP for SS 08-09 at Rs140/quintal
In Oct’08, UP government announced SAP of Rs140/quintal for
SS 08-09 against Rs125/quintal in SS 07-08 and Rs110/quintal paid by
sugar mills as per the Supreme Court order. The UPSMA has contested
the SAP announcement in the Allahabad High Court questioning the
methodology in arriving at the SAP.

To read full report TRIVENI ENGINEERING(PINC RESEARCH)

>Balrampur chinni (ICICI Direct)

Balrampur Chini’s results were below our estimates. The company reported
its Q4SY08 (sugar year 2008) results with a topline growth of 40.0% to Rs
416.7 crore from Rs 297.8 crore in Q4SY07, supported by volume growth
and improvement in price realisations. The quarter has also witnessed a 15.2% increase in raw material costs to Rs 287.3 crore from Rs 249.5 crore in Q4SY07. The company is currently holding a large sugar inventory, in anticipation of higher sugar prices, going forward. The rise in sugar prices resulted in a significant improvement in EBITDA margins this quarter to 17.3% from 0.8% in Q4SY07. Interest costs rose drastically by 115.3% to Rs 28.3 crore in Q4SY08 on account of higher interest rates. The company reported a net profit of Rs 14.6 crore in Q4SY08 as against
a net loss of Rs 33.7 crore in the corresponding quarter of last year.

To read full report Balrampur chinni (ICICI Direct)