EPL (500135) Q4 2003 earnings summary

Executive summary

• FY2003 consolidated revenue rose 21.5% to Rs 6,145.5m; EBITDA (PBDIT) increased 8.8% to Rs 1,676.4m and net income rose 12% to Rs 705.6m.

• Overseas operations generated 60% of revenue; the Danville, USA facility contributed significantly, while startup costs restrained profit growth.

Financial highlights

• Consolidated sales and other income reached Rs 6,145.5m versus Rs 5,059.0m in 2002; profit before tax was Rs 998.6m versus Rs 865.5m.

• Net income was Rs 705.6m versus Rs 629.9m; basic EPS rose to Rs 22.61 from Rs 20.19.

• Standalone India revenue was Rs 2,614.3m versus Rs 2,718.0m; PAT was Rs 398.4m versus Rs 463.4m, with prior-year subsidiary dividends lifting comparison.

• Consolidated cash from operations increased to Rs 1,613.4m from Rs 971.3m; year-end cash and bank balances were Rs 390.2m versus Rs 712.9m.

Outlook and guidance

• Management expected US operating efficiencies and asset utilisation to improve, generating higher volumes from the existing asset base.

• Plans emphasized improved asset productivity, lower fixed costs, customer-led packaging customisation, and continued capacity expansion to meet demand.

• Growth priorities included acquisitions, joint ventures, spare-capacity utilisation, new sectors, and following customers into Asia, Eastern Europe and Africa.