Diamond Power Infrastructure (522163) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 covered 18 months; reported income was Rs 24,124.04 lakh and net profit Rs 1,512.71 lakh, amid major debt restructuring and new investor funding.

• Management described the year as a turning point, with restructuring intended to ease the prior resource constraint and support higher capacity utilization and growth.

Financial highlights

• Income was Rs 24,124.04 lakh; expenditure Rs 21,061.12 lakh; PBIDT Rs 3,062.92 lakh; interest Rs 1,153.16 lakh; depreciation Rs 391.76 lakh; net profit Rs 1,512.71 lakh.

• Net sales were Rs 23,634.91 lakh for the 18-month period; no dividend was recommended.

• Reported turnover rose from Rs 8,386.58 lakh to Rs 24,124.04 lakh over four years; the periods compared varied in length.

Outlook and guidance

• Management cited power-sector investment plans and 100,000 MW of additional generation capacity by 2012 as a medium-term opportunity for cables and conductors demand.

• Copper and aluminium cost and availability were identified as the main current-year challenges; cost management and access to critical inputs were priorities.

• Planned development included expanding the high-tension cable business through a proposed subsidiary.