IVRCL Q2 net profit up 63% on higher sales, other income
31 Oct, 2008, 1848 hrs IST, ECONOMICTIMES.COM     

MUMBAI: Increase in other income component, along with higher sales, helped IVRCL Infrastructures and Projects Ltd post 63 per cent jump net profit for the second quarter ended Sep 30, 2008 from the year-ago period.

IVRCL Infra earned a net profit of Rs 57.10 crore on net sales of Rs 1136.60 crore for the September quarter of the fiscal 2008-09 against net profit of Rs 35.25 crore on net sales of Rs 688.45 crore in the corresponding quarter of fiscal 2007-08. Other income rose to Rs 17.17 crore from Rs 2.61 crore in the preceding June quarter, and Rs 1.56 crore in the Sep quarter of last year.

According to company officials, dividend earnings from company?s two subsidiaries contributed to this other income component. IVR Prime Urban Developers contributed Rs 16 crore, while the rest came from Hindustan Dorr-Oliver.

For the half year ended Sep, 30, 2008, IVRCL recorded a gross income of Rs 2,107 crore as against Rs 1,387 crore in the first six months of the previous financial year, a growth of 52 per cent. Profit before tax increased to Rs 120 crore from Rs 90 crore, a growth of 33 per cent. PAT increased to Rs 100 crore from Rs 73 crore, an increase of 37 per cent.

Between April-September of this year, the company bagged irrigation projects valued at Rs 896 crore from Madhya Pradesh government.

The earning per share was Rs 7.46 per share against Rs 5.64 previous year.

Anita Gandhi, head ? institutional business, Arihant Capital, said, ?the company?s order-book holds good opportunity in future. The balance sheet also does not have anything negative.?

However, P K Agarwal, head ? research, Bonanza Portfolio, feels, it is not worthwhile to invest in small cap and mid cap infrastructure companies as infrastructure as a sector is not doing well.

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