Balkrishna Industries (502355) Q4 01/02 earnings summary

Executive summary

• FY02 turnover and other income rose 33% YoY to Rs.224.51 crore; profit after tax increased to Rs.5.89 crore from Rs.2.44 crore.

• Performance was led by higher paper-board and tyre volumes and exports; textile processing revenue declined amid a severe industry slump.

Financial highlights

• Gross profit was Rs.20.71 crore versus Rs.10.82 crore; profit before tax, after a Rs.0.49 crore extraordinary item, was Rs.9.55 crore versus Rs.2.61 crore.

• Sales and related income reached Rs.222.78 crore versus Rs.166.40 crore; other income was Rs.1.73 crore versus Rs.1.83 crore.

• Net profit was Rs.5.89 crore versus Rs.2.44 crore; current tax was Rs.0.68 crore and deferred tax expense Rs.2.98 crore.

• A 35% dividend was recommended, absorbing Rs.2.17 crore, subject to shareholder approval.

Outlook and guidance

• Paper-plant upgrades were expected to be substantially complete by Dec 2002; the modernization plan targeted capacity of 54,000 tonnes by Mar 2003, from 36,000 tonnes in Apr 2001.

• Textile processing capacity utilization was expected to improve in FY03 following measures to raise utilization.

• Paper-board industry growth was expected to exceed 7% annually; tyre exports were expected to improve further.