APAR Industries (APARINDS) Q4 02/03 earnings summary

Executive summary

• FY03 gross income rose 5.93% YoY to Rs 6,159.72 million; net profit increased 34% to Rs 154.70 million.

• Net sales reached Rs 5,559.77 million, while lower interest costs supported profit growth despite higher monomer costs and pricing pressure.

Financial highlights

• Net sales were Rs 5,559.77 million vs Rs 5,298.58 million in FY02; profit before interest, depreciation, tax and exceptional items was Rs 427.79 million vs Rs 483.97 million.

• Net profit after tax was Rs 154.70 million vs Rs 115.42 million; exchange-rate difference was a net gain of Rs 24.56 million, while VRS and technical know-how write-offs totaled Rs 16.94 million.

• Proposed equity dividend rose to Rs 1.50/share from Rs 1.00; preference dividend remained Rs 1/share.

• Operating cash flow was Rs 622.15 million vs Rs 37.98 million in FY02.

Outlook and guidance

• Management expected reasonable FY04 performance, subject to risks and uncertainties, while developing a strategic plan to address pressures across all three divisions.

• Polymers outlook centers on new NBR grades, blends, powder products, R&D, cost reduction and export opportunities; anti-dumping duties were expected to help offset margin pressure.

• Oils outlook included higher Silvassa capacity, export development and improved price realization, tempered by competition; conductors expected better profitability from productivity and export orders.