Hindustan Copper, India's state-owned copper miner, said on Wednesday that standalone net profit rose 179% to INR 5.2 billion in the September quarter from INR 1.86 billion a year earlier, as revenue from operations climbed 64% to INR 11.75 billion, according to its filing with the National Stock Exchange.

Two other government-controlled companies reported the same day. Garden Reach Shipbuilders & Engineers (GRSE), the Kolkata warship builder, posted a 12% rise in profit, and Mishra Dhatu Nigam (MIDHANI), which makes special alloys for defence and space programs, more than doubled its earnings. For investors in Asia who hold Indian public-sector stocks for exposure to metals and defence spending, the results show the gains coming mainly from higher sales on a cost base that grew far more slowly.

Hindustan Copper: revenue up 64%, costs up 8%

The copper miner's total expenses rose about 8% to INR 5.2 billion in the quarter, against the 64% jump in revenue. Profit before tax nearly tripled to INR 6.95 billion from INR 2.49 billion. Other income also rose, to INR 405.7 million from INR 109.1 million.

The largest cost increase came in royalty and cess payments to the government, which rose 87% to INR 993.8 million. Employee costs fell slightly, to INR 885.5 million from INR 921.4 million, and spending on contract processing work dipped.

Profit also rose from the June quarter, when the company earned INR 3.53 billion, an increase of about 47%. Earnings per share were INR 5.37, against INR 1.92 a year earlier. For the six months to September, profit reached INR 8.72 billion, up from INR 3.20 billion in the first half of the previous fiscal year.

In a separate filing late on Wednesday, Hindustan Copper said BSE and the National Stock Exchange had each fined it INR 1.44 million for not meeting listing rules on the composition of its board and committees. The company said that, as a government company, its directors are appointed by the Ministry of Mines, that it had asked the ministry to appoint four independent directors, and that its board had decided to seek an exemption from the fine.

GRSE: steady growth, higher material costs

GRSE said revenue rose 9% to INR 18.27 billion and profit after tax rose 12% to INR 1.72 billion, according to a company press release. Earnings before interest, tax, depreciation and amortization rose 13% to INR 2.54 billion, which puts the margin at about 13.9%, up from about 13.4% a year earlier.

The mix of costs shifted. The cost of materials consumed rose to INR 10.87 billion from INR 6.78 billion, while subcontracting charges fell to INR 1.90 billion from INR 3.44 billion, Kotak Neo reported from the company's results.

For the first half, revenue rose 22% to INR 36.41 billion and profit rose 26% to INR 3.45 billion. The shipyard reported a net operating cash outflow of INR 3.55 billion for the half, smaller than the INR 6.01 billion outflow a year earlier, Kotak Neo said.

Chairman and Managing Director P.R. Hari, a retired naval commodore, called the results encouraging in the release. He pointed to the launch of a second next-generation offshore patrol vessel for the Indian Navy, an ocean research vessel for a Ministry of Earth Sciences institute, and groundbreaking on three brownfield infrastructure projects in West Bengal.

GRSE shares closed 1.24% higher at INR 2,225.40 on the National Stock Exchange on Wednesday, according to Kotak Neo. The results contrast with those of Cochin Shipyard, whose profit roughly halved a day earlier as its shipbuilding margin slipped.

MIDHANI: profit doubles, order book at INR 21.6 billion

MIDHANI, based in Hyderabad, said turnover rose 41% to INR 2.96 billion in the quarter. Profit after tax rose 117% to INR 276.9 million from INR 127.7 million, and profit before tax rose 103% to INR 387.5 million, the company said in its filing.

Value of production, a measure the company uses for output, rose 21% to INR 3.11 billion. For the first half, turnover rose 41% to INR 5.35 billion and profit after tax rose 72% to INR 440.1 million.

The company said its order book stood at INR 21.64 billion on Oct. 1, about four times its first-half turnover.

The reporting season ends this week. Oil India, NMDC and Hindustan Aeronautics are due to report on Thursday, according to a schedule published by Upstox, giving investors a further read on state-run miners and defence suppliers.