GMM Pfaudler (505255) Q4 01/02 earnings summary

Executive summary

• FY02 net sales fell 5% YoY to Rs 412.953m; PBT declined to Rs 10.840m from Rs 19.490m, amid March dispatch disruption and provisions for VRS and doubtful debts.

• Unexecuted orders rose to Rs 228.7m at year-end from Rs 148.2m; first-11-month sales were up 12% YoY before Gujarat unrest disrupted March shipments.

Financial highlights

• Net sales were Rs 412.953m vs Rs 434.678m; total income including other income was Rs 430.167m vs Rs 446.006m.

• PBT was Rs 10.840m vs Rs 19.490m; profit after tax was Rs 11.322m, plus Rs 1.612m prior-year tax adjustment, for Rs 12.934m available before appropriation.

• Cost of production rose to Rs 279.824m from Rs 276.794m; selling, general and administrative expenses fell to Rs 57.712m from Rs 68.173m.

• Exports declined to Rs 45.269m from Rs 54.519m, mainly due to the post-September 11 global slowdown.

• Consolidated revenue was Rs 412.953m, PBT Rs 10.792m, PAT Rs 11.274m and EPS Rs 5.78.

Outlook and guidance

• Year-end order backlog of Rs 228.7m included new non-glasslined equipment orders and shipments delayed by March disruption.

• Domestic glasslined equipment demand was described as stagnant; growth strategy centers on technology, new products and markets, plus productivity improvements to support margins.

• ERP rollout planned in two stages—linking branches first, then customers and vendors—with total investment of Rs 8m.