Bajaj Steel Industries (BAJAJST) Q4 13/14 earnings summary

Executive summary

• FY14 turnover rose 42.67% to ₹406.94 crore, while net profit increased to ₹12.27 crore from ₹4.26 crore; growth was attributed to new products and market expansion.

• Core Steel operations focus on cotton ginning and pressing machinery; the Superpack division’s sale or disposal was expected to complete at the earliest.

Financial highlights

• Standalone revenue from operations was ₹406.94 crore versus ₹285.23 crore in FY13; other income was ₹4.51 crore.

• Standalone PBT rose to ₹18.87 crore from ₹5.37 crore; PAT increased to ₹12.27 crore from ₹4.26 crore.

• Consolidated revenue from operations was ₹413.98 crore; consolidated PBT was ₹17.14 crore and PAT ₹10.54 crore.

• Proposed dividend was ₹4 per share, or 40%, with a total outflow of ₹1.10 crore including dividend tax.

Outlook and guidance

• Cotton machinery modernization and diversification into factory structures, electrical panels, fire diversion, humidification and material-handling systems were identified as growth opportunities and higher-value order areas.

• New products and planned expansion were expected to support further top-line and bottom-line growth; management emphasized Steel Division as its core focus.

• Superpack division disposal was expected to be completed at the earliest.