AIA Engineering (AIAENG) Q4 06/07 earnings summary

Executive summary

• FY07 consolidated turnover rose 28.52% YoY to Rs.52,303 lakh; profit after tax increased 80.15% to Rs.9,432.10 lakh.

• Consolidated production of high-chrome mill internals grew 17% YoY to 69,398 tonnes; existing capacity was fully booked for nearly six months.

Financial highlights

• Consolidated EBITDA was Rs.14,074.14 lakh vs Rs.9,191.15 lakh; PBT was Rs.13,012.32 lakh vs Rs.7,954.10 lakh.

• Standalone sales were Rs.39,943.33 lakh vs Rs.30,175.35 lakh; PAT was Rs.6,692.14 lakh vs Rs.4,323.82 lakh.

• Consolidated net cash from operating activities was Rs.7,413.26 lakh; investing outflow was Rs.13,059.19 lakh and financing inflow was Rs.8,286.63 lakh.

Outlook and guidance

• The ongoing Moraiya expansion’s first 50,000-tonne phase was in production; the second 50,000-tonne phase was expected by March 2008.

• A further 100,000 tonnes of annual capacity was planned; management was also considering captive power and ferro-chromium plants.

• New capacity was expected to ease constraints on order acceptance; the first expansion phase was targeting normal production levels by Q2 2008.