Ganesha Ecosphere (514167) Q4 05/06 earnings summary

Executive summary

• FY2005-06 turnover was Rs 5,199.78 lakh vs Rs 5,066.32 lakh; PAT rose to Rs 146.48 lakh from Rs 7.88 lakh, attributed to operating efficiencies and cost reductions.

• Export sales increased 55% YoY to Rs 863.97 lakh; a 9,000-tonne-per-year recycled polyester staple fibre expansion at Pantnagar was underway.

Financial highlights

• Total income was Rs 5,219.59 lakh vs Rs 5,085.88 lakh; PBT was Rs 251.87 lakh vs Rs 150.20 lakh.

• Profit before interest and depreciation was Rs 577.19 lakh vs Rs 523.88 lakh; interest and finance expenses fell to Rs 185.75 lakh from Rs 228.48 lakh.

• Net turnover rose to Rs 5,194.37 lakh from Rs 4,922.34 lakh; raw material consumed increased to Rs 3,283.96 lakh from Rs 2,998.16 lakh.

• No dividend was recommended, with resources reserved for general corporate purposes and expansion.

Outlook and guidance

• Directors expected improved results in FY2006-07, barring unforeseen circumstances; performance in the current year was described as encouraging.

• The Pantnagar fibre project, with planned capacity of 9,000 tonnes per year, was expected to become operational by the end of FY2006-07.

• Downstream value-added products and strategically synergistic inorganic growth opportunities were being evaluated.