DISA India Limited (500068) Q4 2006 earnings summary

Executive summary

• FY2006 sales and services rose 54% YoY to Rs666.95m; profit after tax excluding extraordinary income reached Rs132m, up 75% YoY.

• Reported net profit was Rs228.46m, including a substantial gain on sale of the former registered-office property.

• All three SBUs—Moulding, Shotblast and Filters—exceeded targets; manufacturing, supply-chain and HR initiatives advanced.

Financial highlights

• Sales and services were Rs666.95m versus Rs433.35m in 2005; total income was Rs847.19m versus Rs470.11m.

• Profit after tax excluding extraordinary income was Rs132m versus Rs75.6m, up 75% YoY; reported net profit was Rs228.46m.

• Profit before tax was Rs356.01m; other income included Rs145.99m profit on asset sale and Rs31.07m interest income.

• Manufacturing and other expenses increased to Rs476.23m from Rs337.61m; interest expense rose to Rs3.44m from Rs0.77m.

Outlook and guidance

• Logistics and supply-chain office planned to become operational by end-Q1 2007; Tumkur plant expansion was expected to finish during the quarter.

• Timely logistics-office start-up and plant expansion completion were identified as important to meeting plans for the coming year.

• Restructuring and key-process re-engineering were underway to address market challenges and support continued leadership in India.