Alok Industries (ALOKINDS) Q4 01/02 earnings summary

Executive summary

• FY2001-02 sales rose 27.39% YoY to Rs.566.43 crore; profit after tax increased 28.64% to Rs.37.91 crore.

• Expansion of weaving, knitting and processing capacity was completed or moving into production; growth plans target higher-value home textiles and direct exports.

Financial highlights

• Sales increased from Rs.444.64 crore to Rs.566.43 crore; operating profit rose to Rs.101.72 crore from Rs.76.21 crore.

• PBT was Rs.42.45 crore versus Rs.31.97 crore; PAT was Rs.37.91 crore versus Rs.29.47 crore.

• Cash profit increased to Rs.54.43 crore from Rs.41.34 crore; operating cash flow was Rs.15.85 crore versus Rs.19.45 crore.

• Exports grew 15.52% to Rs.21.65 crore from Rs.18.74 crore; sales growth was attributed mainly to higher volumes.

Outlook and guidance

• The new Valsad processing plant supports entry into wider-width fabrics and home textiles; a Vapi made-up unit was expected to start production in October 2002.

• A Navi Mumbai garment unit targeting export markets was expected to begin operations shortly; strategy includes domestic presence and increased direct exports.

• Management expected quota removal from January 2005 to create growth potential for home textiles and made-ups, and anticipated a reasonable increase in market share.