Diamond Power Infrastructure (522163) Q4 00/01 earnings summary

Executive summary

• FY ended 30 June 2001 revenue from sales was Rs 984.82 million; net profit fell to Rs 10.17 million from Rs 22.56 million YoY, with higher interest costs weighing on earnings.

• Expanded, backward-integrated and multi-location manufacturing supported improved gross margin; a subsequent TNEB contract for Rs 880 million added to an Rs 840 million existing order book.

Financial highlights

• Sales were Rs 984.82 million vs Rs 964.65 million; total income was Rs 1,023.15 million vs Rs 1,095.52 million, including a smaller inventory increase.

• Net profit was Rs 10.17 million vs Rs 22.56 million; EPS was Rs 0.75 vs Rs 1.67.

• Interest expense rose to Rs 111.38 million from Rs 59.22 million; depreciation was Rs 25.09 million vs Rs 20.99 million.

• Operating cash flow was Rs 9.54 million; investing activities used Rs 27.87 million, while financing activities generated Rs 39.78 million.

Outlook and guidance

• Management projected sales of Rs 1,493 million, Rs 1,866.2 million and Rs 2,332.9 million for FY02, FY03 and FY04, respectively; projected net profit was Rs 76.1 million, Rs 126.4 million and Rs 190.4 million.

• FY02–FY04 projected net cash accruals were Rs 104.8 million, Rs 155.1 million and Rs 219.1 million, respectively; forecasts assumed improved capacity utilization.

• A 29 November 2001 update expected turnover above Rs 1.8 billion and PAT above Rs 100 million for the current financial year.