DISA India Limited (500068) Q4 2004 earnings summary

Executive summary

• FY2004 sales and services rose to Rs.338.4m from Rs.134.2m in the prior nine-month period; reported PAT was Rs.45.2m vs Rs.11.1m, with periods not comparable.

• Overseas business provided profitable opportunities; management described 2005 prospects as promising, subject to unforeseen circumstances.

Financial highlights

• Sales and services: Rs.338.4m for 12 months ended Dec. 31, 2004, vs Rs.134.2m for the nine months ended Dec. 31, 2003; prior-period annualized figures cited were Rs.178.9m.

• Profit before extraordinary items and tax: Rs.68.9m; PAT: Rs.45.2m vs Rs.11.1m for the prior nine-month period, or Rs.14.8m annualized as cited by management.

• Other income was Rs.19.6m vs Rs.12.9m; manufacturing and other expenses were Rs.277.7m vs Rs.120.4m, across 12 months and nine months, respectively.

• Proposed dividend of 30%; Rs.35.0m transferred to general reserve, with Rs.8.9m carried forward in the P&L account.

Outlook and guidance

• Management expected better results in 2005, barring unforeseen circumstances, citing rapid growth in the auto industry and encouraging prospects.

• Investment planned in production capabilities, quality and service; group collaboration on high-end moulding technology intended to broaden product range and improve competitiveness.