Diamond Power Infrastructure (522163) Q4 04/05 earnings summary

Executive summary

• Six-month results to 31 Mar 2005 showed net sales of Rs. 3,053.61 lakh and net profit after tax of Rs. 60.31 lakh, following a loss in the prior 18-month period; debt stress remained significant.

• The business benefited from large conductor contracts and a favorable Indian power-sector demand outlook, while restructuring and reported cash losses underscored financial risk.

Financial highlights

• Net sales were Rs. 3,053.61 lakh; gross sales were Rs. 3,372.67 lakh, including excise duty of Rs. 319.06 lakh.

• Profit before interest and depreciation was Rs. 775.51 lakh; finance charges were Rs. 584.90 lakh and depreciation was Rs. 130.29 lakh.

• Profit before tax and net profit after tax were each Rs. 60.31 lakh; EPS was Rs. 0.45, versus a loss of Rs. 2,074.21 lakh and EPS loss of Rs. 15.34 in the prior 18-month period.

Outlook and guidance

• Directors expected conductor-industry growth to benefit from power-sector demand and infrastructure investment, and cited large contracts won from private-sector players and electricity boards.

• Industry demand for aluminium conductors was projected to grow at a 22% CAGR, reaching 29.40 lakh km and Rs. 19,500 crore by 2009-10.