Ganesha Ecosphere (514167) Q4 02/04 earnings summary

Executive summary

• 18-month period ended 31 Mar 2004; operations improved with higher capacity utilization, realizations, cost control and efficiency measures.

• Net profit reached Rs 124.29 lakh from a Rs 23.17 lakh loss in the prior 12-month period; no dividend recommended to conserve working capital.

Financial highlights

• Sales and other income totaled Rs 7,743.59 lakh; reported sales were Rs 7,710.51 lakh versus Rs 4,560.89 lakh in the prior 12-month period.

• Profit before tax was Rs 101.86 lakh versus a Rs 41.39 lakh loss; profit before interest and depreciation was Rs 734.50 lakh.

• Interest and finance expenses were Rs 402.03 lakh and depreciation was Rs 230.61 lakh for the 18-month period.

• Exports increased to Rs 811.25 lakh from Rs 256.41 lakh; production grew 18.5% on an annualized basis.

Outlook and guidance

• Current-year performance remained encouraging; improved results were expected barring unforeseen circumstances.

• Strategic focus: expand export markets and develop value-added products amid pressure on dyed and texturised yarn margins.

• Management expected growth in regenerated PSF and non-apparel polyester uses, including home textiles, automotive and technical textiles.