Diamond Power Infrastructure (522163) Q4 96/97 earnings summary

Executive summary

• FY ended 30 Jun 1997 turnover was Rs 3,023.91 lacs, up 68% YoY; net profit rose to Rs 148.13 lacs from Rs 29.30 lacs, up 409% as reported.

• Performance improved despite a severe recession in the cables industry and capital goods sector; alloy conductors remained the leading contributor to turnover and profitability.

• Expansion and backward integration plans target higher conductor capacity and in-house aluminum/alloy wire rod production.

Financial highlights

• Domestic sales were Rs 2,736.51 lacs vs Rs 1,801.15 lacs; export sales were Rs 287.40 lacs vs nil in FY96.

• Profit before interest and depreciation was Rs 362.40 lacs; interest was Rs 152.77 lacs and depreciation Rs 50.75 lacs.

• Profit before tax was Rs 158.88 lacs and profit after tax Rs 148.13 lacs; prior-year PAT was Rs 29.31 lacs in the accounts.

• Reserves rose to Rs 412.87 lacs from Rs 236.07 lacs; share capital was Rs 900.80 lacs.

Outlook and guidance

• Domestic institutional order book for the current FY stood at Rs 27.45 crore, alongside expected sales to industrial customers and dealers.

• Proposed project plans AAAC capacity expansion from 1,900 to 12,700 MTpa and a 12,000 MTpa aluminum/alloy wire rod mill.

• Project schedule targeted commercial production from Jan 1999 for one component and Apr 1999 for the other.

• Management expected ISO 9002 certification for divisions by Nov 1997.