Alok Industries (ALOKINDS) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 net sales were Rs.1,068.85 crore, up 34.5% YoY; PBT rose 57.6% to Rs.92.57 crore and PAT increased 69% to Rs.71.08 crore.

• Exports, including incentives, climbed 311.1% to Rs.111 crore, driven mainly by the launch of home textiles; growth also benefited from capacity utilization and new texturising operations.

• A Rs.580 crore expansion across home textiles, apparel fabrics and garments was underway, positioning capacity for expected post-quota opportunities.

Financial highlights

• Net sales reached Rs.1,068.85 crore versus Rs.795.41 crore; total income was Rs.1,073.74 crore versus Rs.795.59 crore.

• Operating profit was Rs.198.40 crore versus Rs.137.14 crore; PBT was Rs.92.57 crore versus Rs.59.36 crore.

• PAT rose to Rs.71.08 crore from Rs.42.31 crore; cash profit was Rs.110.51 crore versus Rs.68.58 crore in the financial highlights.

• Recommended dividend was Re.1 per equity share; preference-share dividend payout was Rs.1.56 crore, excluding dividend tax.

Outlook and guidance

• Expansion of home-textile, apparel-fabric and garment capacity was planned at an aggregate cost of Rs.580 crore over two years.

• Home textiles, apparel fabrics and garments were expected to lead export growth; plans also included terry towels and medium-term backward integration into spinning.

• Management expected India to benefit from the end of textile quotas in January 2005, while noting that actual results may differ materially from forward-looking expectations.