Birla Corporation (500335) Q4 03/04 earnings summary

Executive summary

• FY2003-04 gross sales rose to ₹1,243.18 crore from ₹1,124.20 crore; cash profit nearly doubled to ₹75.25 crore from ₹38.86 crore, with improved cement efficiencies, jute operations and cost controls.

• Net profit was ₹41.56 crore versus ₹4.19 crore; EPS increased to ₹5.40 from ₹0.54.

• A ₹1-per-share dividend, equal to 10%, was recommended, subject to shareholder approval.

Financial highlights

• Total income increased to ₹1,277.54 crore from ₹1,147.40 crore; operating profit before interest rose to ₹100.39 crore from ₹70.42 crore.

• Interest expense declined to ₹25.14 crore from ₹31.56 crore; profit before tax reached ₹41.58 crore versus ₹6.67 crore.

• Excluding no adjustments, reported PAT was ₹41.56 crore; other income included a ₹9.69 crore excise-duty refund for prior years, subject to a pending appeal.

• Exports increased to ₹50.80 crore from ₹48.19 crore; export sales represented 4.72% of standalone external sales.

Outlook and guidance

• Cement demand outlook was supported by expected infrastructure and housing activity, forecast consumption growth of 8% in coming years, and anticipated stable prices.

• Cement expansion and captive power projects were expected to improve operating efficiency and competitiveness; management aimed to outperform industry operating averages.

• Jute outlook depended on cost reduction, production efficiency, sack demand and further export growth; value-added products remained a development focus.