Balkrishna Industries (502355) Q4 06/07 earnings summary

Executive summary

• FY07 gross turnover and other income rose 42% YoY to ₹908.48 crore; profit after tax before the exceptional item increased to ₹87.56 crore from ₹69.95 crore.

• After the ₹4.42 crore net-of-tax exceptional charge, profit was ₹83.09 crore; tyre exports remained the core growth driver.

Financial highlights

• Sales and related income was ₹899.60 crore versus ₹632.81 crore; net sales and income from operations was ₹877.66 crore versus ₹620.01 crore.

• PBIDT increased to ₹186.49 crore from ₹145.81 crore; PBT was ₹133.47 crore versus ₹106.74 crore.

• Total income was ₹886.54 crore; interest expense was ₹17.02 crore and depreciation and amortisation was ₹36.00 crore.

Outlook and guidance

• FY08 tyre expansion plans include an 11,500 TPA OTR radial plant at Chopanki, 13,000 TPA additional capacity there, and 4,500 TPA at Bhiwadi.

• Chopanki plans also include increased mixing capacity and a 160,000 sq. ft. warehouse; Bhiwadi and Waluj capacity increases were planned.

• Paperboard demand was expected to grow 7%; value-added products and a planned cogeneration plant were intended to support margins.