EPL (500135) Q4 2004 earnings summary

Executive summary

• Consolidated revenue rose 16.2% YoY to Rs 6,766 million; operating profit before depreciation, interest and tax increased 12.1% to Rs 1,882 million, and net profit after minority interest rose 14.6% to Rs 809 million.

• Growth reflected scaled-up US operations, improved Egypt performance and the acquisition of Arista Tubes in the UK; overseas operations contributed 66% of consolidated revenue, up from 60%.

• Operations spanned 13 countries and 19 plants, with laminated tubes leadership complemented by expansion into plastic tubes.

Financial highlights

• Consolidated revenue excluding excise duty was Rs 6,766 million versus Rs 5,822 million in 2003; profit before tax was Rs 1,183 million versus Rs 999 million.

• Consolidated profit after tax and minority adjustment was Rs 809 million versus Rs 706 million; reported basic EPS after extraordinary items was Rs 25.84 versus Rs 22.58.

• Indian operations revenue was Rs 2,296 million versus Rs 2,300 million; operating profit was Rs 849 million versus Rs 910 million, while PAT edged up to Rs 409 million from Rs 398 million.

• Consolidated operating cash flow was Rs 1,262 million versus Rs 1,630 million; investing cash flow was an outflow of Rs 1,148 million, including fixed-asset purchases and Arista acquisition spending.

Outlook and guidance

• Management expected to sustain double-digit growth, supported by definitive business plans, capacity additions, process improvements and continued product development.

• Plastic tubes were identified as a strategic growth area following Arista’s acquisition; plans included building global capabilities and expanding plastic-tube capacity in India.

• Minitube and invisible-seam technologies were positioned to support pharmaceutical, consumer and new laminated-tube applications; no numerical earnings guidance was stated.

• Russia began commercial production, and a Himachal Pradesh plant was expected to be commissioned to follow customers’ growth.