AIA Engineering (AIAENG) Q4 08/09 earnings summary

Executive summary

• FY08-09 consolidated net sales rose to Rs.102,329.10 lakh from Rs.69,118.15 lakh; PAT after minority interest was Rs.17,361.75 lakh, versus Rs.13,327.07 lakh.

• The second half faced global recession and destocking, while domestic replacement demand remained healthy; management expected the downturn to affect exports through H1 FY09-10, with early recovery signs in H2.

Financial highlights

• Consolidated PBT was Rs.24,933.10 lakh versus Rs.18,023.20 lakh; PAT before minority interest was Rs.17,431.20 lakh versus Rs.13,420.95 lakh.

• Standalone turnover increased to Rs.92,285.94 lakh from Rs.59,380.54 lakh; standalone PBT reached Rs.20,581.26 lakh and PAT Rs.13,345.77 lakh.

• Consolidated net sales were Rs.102,329.10 lakh; exports reached Rs.58,136.80 lakh, up 79% YoY, while India sales were Rs.44,192.30 lakh, up 21%.

• Consolidated physical production of High Chrome Mill Internals rose 17.47% to 103,570 MT; standalone production grew 30% to 72,354 MT.

• Proposed final dividend was Rs.1.90/share, including a special dividend of Rs.1.00; interim dividend was Rs.0.60/share, with total dividend outgo of Rs.2,756.39 lakh including tax.

Outlook and guidance

• Targeting capacity of ~200,000 tonnes by FY10-11, supported by ~Rs.40 crore capex funded through internal cash generation.

• Moraiya Greenfield project’s two phases, totaling 100,000 TPA, were commissioned by May 2008.

• Expansion priorities include new cement geographies and applications, copper, platinum and gold mining, and entry into China’s utility market; copper and platinum commercial dispatches had begun.