Alicon Castalloy (531147) Q4 06/07 earnings summary

Executive summary

• FY07 revenue from operations rose to Rs. 2,692.30 million from Rs. 1,439.22 million; PAT increased to Rs. 118.06 million from Rs. 75.41 million.

• Record sales and profit accompanied completed capacity expansion for intake manifolds and cylinder heads; the proposed dividend was 12.5%.

Financial highlights

• Gross sales were Rs. 2,692.30 million vs. Rs. 1,439.22 million; net sales were Rs. 2,296.88 million vs. Rs. 1,223.92 million.

• PBT was Rs. 139.76 million vs. Rs. 116.44 million; PAT was Rs. 118.06 million vs. Rs. 75.41 million.

• EPS was Rs. 11.06 vs. Rs. 7.54, based on Rs. 5 face-value shares; cash profit after tax was reported at Rs. 223.67 million, up 69% YoY.

• Export turnover was Rs. 365.04 million vs. Rs. 141.91 million; exports served the U.S. and Europe.

• Proposed dividend was 12.5%; dividend and tax outgo was Rs. 8.04 million.

Outlook and guidance

• Management expected very good passenger-car volume growth and higher demand for castings; it saw no marketing difficulty for expanded capacity.

• Cylinder-head production at Gurgaon had stabilized; steps were initiated to establish a new cylinder-head unit at Pantnagar, Uttar Pradesh.

• Management cited small-car manufacturing growth, announced automaker capacity expansions, infrastructure development and higher purchasing power as demand opportunities.