EPL (500135) Q4 2002 earnings summary

Executive summary

• 2002 was the first full-year period for the combined international operations; consolidated revenue reached Rs. 4,949.7 million and net profit Rs. 630.3 million. Prior-period comparisons cover nine months and are not comparable.

• Overseas operations contributed 49% of revenue, up from 44% in 2001; global laminated-tube market share rose from 25% to 28%.

• Commercial deliveries began from a dedicated US plant supplying Procter & Gamble’s North American requirements; a new China laminator also entered commercial operation.

Financial highlights

• Consolidated sales and services were Rs. 4,949.7 million; PBDIT was Rs. 1,522.8 million, PBT before extraordinary items Rs. 866.4 million and net profit Rs. 630.3 million.

• Consolidated diluted EPS was Rs. 19.97 and basic EPS Rs. 20.20; consolidated final dividend proposed was Rs. 234.9 million, inclusive of tax.

• Indian standalone revenue was Rs. 2,718.0 million; PBDIT Rs. 1,035.8 million, PBT Rs. 665.1 million, PAT Rs. 463.4 million and basic EPS Rs. 14.85.

• Extraordinary items of Rs. 34.6 million comprised VRS payments of Rs. 18.6 million, project write-offs of Rs. 8.4 million and net sundry balance write-offs of Rs. 26.2 million.

• Raw material consumption was 38.44% of sales versus 40% in the prior period; bad-debt provision was Rs. 1.41 million, with recovery efforts planned for 2003.

Outlook and guidance

• Plans include expanding in Eastern Europe, Russia, Africa and Central Asia, while growing customer partnerships and pursuing emerging market segments.

• China business restructuring was planned for 2003; Mexican operations were expected to break even in 2003.

• The closures joint venture expected to break even and reach full capacity utilisation by year-end 2003, based on orders executed and customer commitments.

• Longer-term priorities include turnkey customer solutions, cost-effective product innovation and leadership in packaging for oral care, cosmetics, toiletries and pharmaceuticals.