EPL (500135) Q4 2001 earnings summary

Executive summary

• Integration of acquired Propack tubing operations progressed ahead of cost-synergy targets; global leadership in laminated tubes established, with operations across 12 countries and 17 manufacturing locations.

• First global consolidation under Indian GAAP AS 21 covered 2001; consolidated revenue was Rs.3,825 million and net profit after tax and minority adjustment was Rs.550 million.

Financial highlights

• Consolidated 2001 revenue Rs.3,825 million, operating profit (EBDIT) Rs.1,210 million, PBT Rs.727 million and PAT after minority adjustment Rs.550 million.

• India operations for the nine months ended Dec. 31, 2001: revenue Rs.1,973 million, EBDIT Rs.679 million, PBT Rs.404 million and PAT Rs.292 million; period is not comparable with prior 12 months.

• Indian sales and services, net of excise, were Rs.1,702 million; raw materials were 39% of net sales versus 41% in FY 2000-01.

• Adjusted for the Rs.18.57 million VRS charge, Indian results include a separately classified one-time extraordinary expense; net financial expense increased to Rs.59.89 million from Rs.7.90 million, mainly from acquisition debt.

Outlook and guidance

• 2002 growth expected from tube conversions in China, Southeast Asia and Africa; cosmetics industry growth was projected at ~10% for 2002.

• Existing plastic-tube operations in India and Indonesia were expected to grow 15% annually; the China laminate facility was planned to come on stream in March 2002.

• Egypt had contracts expected to bring capacity to optimum levels in 2002; management highlighted margin improvement and potential for higher earnings over coming years.