Alicon Castalloy (531147) Q4 05/06 earnings summary

Executive summary

• FY06 delivered record sales and profit, with gross sales of ₹1,439.22 million and profit before tax of ₹116.44 million.

• Aluminium alloy castings remained the sole business segment; aluminium wheels production stabilized and exports increased to ₹141.91 million.

Financial highlights

• Gross sales ₹1,439.22 million vs ₹1,223.92 million in FY05; net sales ₹1,223.92 million vs ₹653.60 million.

• PBT ₹116.44 million vs ₹87.54 million; profit after tax ₹75.41 million vs ₹59.03 million in the audited accounts.

• EPS ₹15.08 vs ₹11.81; cash profit after tax ₹132.49 million, up 38.1% YoY.

• Export turnover ₹141.91 million vs ₹50.95 million in FY05.

• Recommended dividend maintained at 12.5%, or ₹1.25 per share; dividend-related outgo ₹7.84 million.

Outlook and guidance

• Planned capital expenditure of ₹1,000 million for Shikrapur capacity expansion, Gurgaon’s second phase, and a new Pantnagar plant.

• Gurgaon phase one began casting production in July 2006; phase two was scheduled to start in November 2006.

• Pantnagar casting facility planned at ₹100 million; site finalized and statutory approvals in process.

• Management expected demand to benefit from economic and industrial growth and India’s role as an OEM supply hub.