DISA India Limited (500068) Q4 2007 earnings summary

Executive summary

• FY2007 sales and services reached Rs 933.6m, up 40% YoY; PAT was Rs 181.7m, up 34% YoY on a like-for-like basis.

• Results exceeded budget, with all three major product lines—Moulding, Shot Blast and Filters—above targets.

Financial highlights

• Sales and services rose to Rs 933.6m from Rs 667.0m; profit before extraordinary items and tax increased to Rs 274.0m from Rs 211.9m.

• PAT was Rs 181.7m versus Rs 228.5m in 2006; the prior year included Rs 144.1m extraordinary income from a property sale.

• Other income increased to Rs 54.8m, including Rs 46.7m interest income; manufacturing and other expenses rose to Rs 695.3m.

• Recommended dividend of 2,000%, with an outflow of Rs 353m.

Outlook and guidance

• Capacity expansions at Tumkur and Hosakote were initiated to meet demand; Tumkur expansion follows the 2006 expansion.

• Organizational restructuring and key-process re-engineering were underway to address coming-year market challenges and competition.

• Shot Blast equipment was being consolidated with Filters at Hosakote; Tumkur was to focus on Moulding.