APAR Industries (APARINDS) Q4 01/02 earnings summary

Executive summary

• FY02 gross income rose 12.43% YoY to Rs 5,814.84m; net profit was Rs 115.42m versus a net loss of Rs 35.24m in FY01.

• Higher production and sales across divisions supported the turnaround despite recession, low-priced imports and competitive pressure on margins.

Financial highlights

• Net sales, excluding excise duty, increased to Rs 5,298.58m from Rs 4,591.50m; profit before interest, depreciation, tax and exceptional items rose 71.64% to Rs 483.97m.

• Net profit after tax was Rs 115.42m, including a Rs 45.34m deferred-tax charge; FY01 recorded a net loss of Rs 35.24m.

• Equity dividend of Rs 1/share (10%) was recommended, versus Rs 0.25/share (2.5%) in FY01; 10% preference dividends were also recommended, subject to shareholder approval.

Outlook and guidance

• Management expected reasonable FY03 performance, barring unforeseen circumstances, while developing a strategy to address pressures across all three divisions.

• NBR capacity, new grades and value-added products; Silvassa oil operations; and the acquired conductors unit were expected to support efficiency and profitability.

• Good conductor export orders were expected during FY03; efforts were continuing to expand exports of conductors, NBR and transformer oils.