Balkrishna Industries (502355) Q4 04/05 earnings summary

Executive summary

• FY05 gross turnover and other income rose 32% YoY to ₹507.71 crore; PAT before the extraordinary gain increased to ₹57.48 crore from ₹31.50 crore.

• Tyres led growth, supported by higher production, export demand and commissioned capacity; full benefits from expansion and energy-cost savings were expected from FY06.

• Total exports and export-related income were ₹324.93 crore; tyre exports represented over 95% of tyre production, with over 70% sold under the BKT brand.

Financial highlights

• Sales and related income ₹502.44 crore vs ₹380.82 crore; net sales and operating income after excise ₹488.04 crore vs ₹365.20 crore.

• PBT ₹88.37 crore vs ₹45.24 crore; PAT ₹57.48 crore vs ₹31.50 crore, after current tax of ₹22.92 crore and deferred tax of ₹7.97 crore.

• A ₹5.66 crore capital gain from early settlement of deferred sales-tax liability was reported as an extraordinary item; profit after the item was ₹63.15 crore.

• EPS ₹46.44 before and ₹51.01 after the extraordinary item, compared with ₹24.42 in FY04; dividend was 100% of face value, or ₹10 per share.

• PBIDT ₹117.71 crore and total cash accruals ₹64.97 crore; PBIDT was 23.43% of sales and related income.

Outlook and guidance

• Tyre business expected to maintain healthy growth, with broader product range, market expansion and higher capacity supporting future performance.

• Full contribution from expanded capacity and power/fuel savings expected in FY06; textile processing performance expected to improve, while paperboard was expected to maintain current performance.

• Paperboard industry expected to grow at over 7% annually; the segment remained competitive.