Alok Industries (ALOKINDS) Q4 02/03 earnings summary

Executive summary

• FY02/03 sales rose 40.79% to Rs.795.41 crore and PBT increased 39.84% to Rs.59.36 crore; PAT rose 11.61% to Rs.42.31 crore.

• Expanded end-to-end textile capabilities across weaving, knitting, processing, texturising, garments and made-ups; new processing and texturising plants commenced operations.

Financial highlights

• Net sales Rs.795.41 crore vs. Rs.564.97 crore; operating profit Rs.137.14 crore vs. Rs.98.14 crore.

• PBT Rs.59.36 crore vs. Rs.42.45 crore; PAT Rs.42.31 crore vs. Rs.37.91 crore, with higher deferred-tax provision restraining PAT growth.

• Cash profit Rs.68.58 crore vs. Rs.54.43 crore; net cash accruals Rs.61.54 crore vs. Rs.51.22 crore.

• Exports including incentives rose to Rs.26.62 crore from Rs.22.91 crore; export turnover remained small relative to total sales.

Outlook and guidance

• Export turnover expected to grow considerably in the current and following fiscal years, with exports forecast to become a primary growth driver.

• Expansion in garments and made-ups targeted direct exports and the post-quota market; increased texturising capacity positioned for rising domestic polyester demand.

• New processing, texturising and garment projects began commercial production in early 2003; printing/made-ups and a second texturising unit remained under construction.