Ganesha Ecosphere (514167) Q4 04/05 earnings summary

Executive summary

• FY ended 31 Mar 2005: turnover Rs 5,066.32 lakh; PBT Rs 150.20 lakh, up from Rs 67.90 lakh on an annualized prior-period basis; PAT fell to Rs 7.88 lakh after a large deferred-tax charge.

• Operations were broadly steady, exports improved marginally, and expansion plans centered on a new recycled polyester staple fibre (RPSF) project in Uttaranchal.

Financial highlights

• Turnover was Rs 5,066.32 lakh versus Rs 5,140.34 lakh annualized in the prior period; exports rose to Rs 557.31 lakh from Rs 540.83 lakh annualized.

• PBT increased to Rs 150.20 lakh from Rs 67.90 lakh annualized; PAT declined to Rs 7.88 lakh from Rs 82.86 lakh annualized.

• Net turnover after excise duty was Rs 4,922.34 lakh; raw material consumed was Rs 2,998.16 lakh and interest and finance expenses were Rs 228.48 lakh.

• No dividend was recommended, citing limited profit and the need to conserve funds for corporate purposes and expansion.

Outlook and guidance

• Management expected improved results in FY 2005-06, barring unforeseen circumstances.

• Planned a greenfield RPSF facility in Uttaranchal, adding 9,000 MT capacity to existing capacity of 7,800 MT; project modalities were being finalized.

• Research into technical textiles was underway; management cited quota removal, textile demand and government incentives as factors supporting expansion.