Alok Industries (ALOKINDS) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 sales rose 14.56% YoY to Rs.1,224.50 crore; PAT increased 25.56% to Rs.89.25 crore.

• Exports climbed 174.96% to Rs.306.53 crore, raising their share of sales to 25% from 10%; Home Textiles led export growth.

• A quota-free trade regime and integrated capacity expansion supported growth plans, alongside a Rs.1,190 crore investment program.

Financial highlights

• EBITDA rose 23.37% YoY to Rs.244.75 crore; PBT increased 33.42% to Rs.123.51 crore.

• Net sales were Rs.1,224.50 crore; local sales declined 4.12% to Rs.917.97 crore while export sales grew 174.96% to Rs.306.53 crore.

• PAT rose to Rs.89.25 crore from Rs.71.08 crore; interest expense declined 4.10% to Rs.63.68 crore.

• Gross fixed assets increased to Rs.1,047.57 crore from Rs.690.84 crore; net fixed assets rose to Rs.879.27 crore from Rs.579.53 crore.

Outlook and guidance

• The Rs.1,190 crore expansion program was expected to be substantially completed during FY 2005-06; wider-width processing was nearing commercial production.

• Post-expansion targets included bed linen capacity of 60 million metres, woven apparel fabrics of 82.5 million metres, knitted fabrics of 16,800 tonnes and garments of 8 million pieces.

• Planned moves into cotton yarn, polyester-oriented yarn, POY and terry towels extend vertical integration and product range.

• Global textile trade was projected to reach US$565 billion by 2010; India’s textile exports target was US$50 billion.