Garware Hi-Tech Films (500655) Q4 02/03 earnings summary

Executive summary

• FY03 performance improved on higher sales, volume and realizations; net sales rose 22% YoY to Rs 412 crore, while exports increased 31% to Rs 152 crore despite trade restrictions.

• Net profit reached Rs 16.46 crore vs Rs 7.81 crore in FY02; no dividend was recommended to conserve resources for lender commitments under the restructuring package.

Financial highlights

• Operating profit before interest and depreciation was Rs 100.52 crore vs Rs 86.79 crore; interest was Rs 46.77 crore vs Rs 51.95 crore.

• PBT was Rs 20.67 crore vs Rs 2.07 crore; depreciation was Rs 33.08 crore vs Rs 32.77 crore.

• Reported P&L sales including excise duty were Rs 449.97 crore vs Rs 369.72 crore; net profit was Rs 16.46 crore vs Rs 7.81 crore.

• EPS was Rs 7.53 vs Rs 3.58; FY02 results included Rs 6.15 crore of prior-period items.

Outlook and guidance

• Current-year working was described as satisfactory and in line with expectations.

• Packaging-film demand and local pricing were expected to remain firm; value-added safety films and Sun Control films were expected to support domestic operations.

• Plain-film exports to the US and EU awaited review of anti-dumping measures; exports were being expanded in Far East and Russian markets.

• Sun Control film exports were growing, with more than 80% of production exported; new market penetration included Indonesia and China.