Garware Technical Fibres (509557) Q4 05/06 earnings summary

Executive summary

• FY06 net sales rose 16% YoY to Rs.26,252.45 lacs; PBT increased to Rs.1,512.56 lacs, PAT to Rs.1,486.00 lacs and EPS to Rs.7.44.

• Export sales grew 17% to Rs.9,766 lacs, while domestic sales increased 15% to Rs.16,729 lacs.

Financial highlights

• Net sales were Rs.26,252.45 lacs versus Rs.22,613.02 lacs in FY05; total income was Rs.26,106.49 lacs after excise duty.

• PBT was Rs.1,512.56 lacs versus Rs.1,302.23 lacs; PAT was Rs.1,486.00 lacs versus Rs.1,326.09 lacs.

• EPS increased to Rs.7.44 from Rs.6.74; basic and diluted EPS were reported equally.

• Raw materials consumed reached Rs.9,918.60 lacs, up from Rs.9,421.33 lacs; interest expense rose to Rs.725.25 lacs from Rs.520.30 lacs.

Outlook and guidance

• New products, capacity additions and technology acquisitions were intended to reinforce positions in fishing, sports, industrial products and shipping; new markets opened in Europe and America.

• FY07 outlook flagged exchange-rate volatility and rising raw-material prices; proactive measures were expected to pass most cost increases to customers.

• R&D plans focused on further value-added products and new applications in ropes, nets, soil engineering and structural engineering.