Birla Corporation (500335) Q4 05/06 earnings summary

Executive summary

• FY2005-06 delivered record turnover, cash profit, PBT and PAT; turnover rose 7% and operating profit increased 32% YoY.

• Higher volumes, improved price realization, cost controls and operating efficiencies supported earnings; interest expense fell to Rs.13.62 crore from Rs.21.69 crore.

Financial highlights

• Turnover was Rs.1,433.44 crore vs Rs.1,342.64 crore; total income was Rs.1,228.61 crore vs Rs.1,157.94 crore.

• Operating profit rose 32% to Rs.191.87 crore; PBT increased 54% to Rs.144.09 crore and PAT rose 45% to Rs.125.76 crore.

• Cash earnings increased 44% to Rs.178.25 crore from Rs.123.53 crore.

Outlook and guidance

• Cement demand and pricing outlook was positive, supported by rural infrastructure, roads and government development programs; expansions and captive power were expected to sustain growth.

• Phased clinker-capacity enhancement was underway, with plans to leverage existing rail sidings, power plants and infrastructure to lower fixed running costs.

• Auto Trim expected improved volumes from secured door-trim orders for a new vehicle; one-step technology received encouraging industry response.