Exide Industries (500086) Q4 03/04 earnings summary

Executive summary

• Record FY04 sales of Rs 12,196.7 million; profit after tax rose to Rs 728.6 million from Rs 523.3 million in FY03.

• Automotive demand and market leadership supported growth; rising lead prices and weak telecom and railway markets constrained some businesses.

• Consolidated profit after tax was Rs 742.0 million, with EPS of Rs 12.00 post-bonus; standalone post-bonus EPS was Rs 11.80.

Financial highlights

• Gross sales Rs 12,196.7 million vs Rs 10,953.1 million; net sales Rs 9,781.2 million vs Rs 8,784.9 million, FY04 vs FY03.

• Profit before tax Rs 1,101.1 million vs Rs 808.3 million; profit after tax Rs 728.6 million vs Rs 523.3 million.

• Operating profit Rs 1,822.1 million vs Rs 1,616.5 million; cash profit Rs 1,273.4 million vs Rs 984.7 million.

• Adjusted for the Rs 91.5 million pension fund contribution, profit before tax was Rs 1,192.5 million; FY03 included Rs 55.1 million of voluntary retirement scheme costs.

• Consolidated net sales Rs 10,224.5 million vs Rs 9,204.6 million; consolidated profit after tax Rs 742.0 million vs Rs 555.9 million.

Outlook and guidance

• Management saw growth opportunities from infrastructure investment, road projects, electricity reforms and favorable economic conditions.

• Product pipeline includes maintenance-free motorcycle batteries, expanded XPRESS car and MUV ranges, small-car ATB batteries and larger inverter batteries.

• Traction battery exports were expected to maintain rapid growth; South Africa was a prospective market, with further submarine battery orders under discussion.

• Caldyne reported a Rs 90 million order book at 31 March 2004 and forecast ~40% turnover growth for FY05.