GMM Pfaudler (505255) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 sales and other income reached Rs.536.1 million, up 24.5% YoY; PBT more than tripled and net profit rose to Rs.24.1 million.

• Market leadership in chemical process equipment and a growing order backlog supported outlook, while pricing pressure, power disruptions and investment disputes remained concerns.

Financial highlights

• Income from operations was Rs.521.8 million vs. Rs.413.4 million; other income was Rs.14.3 million vs. Rs.17.2 million.

• PBT increased to Rs.34.5 million from Rs.10.8 million; profit after tax was Rs.24.1 million vs. Rs.11.3 million.

• After prior-year tax adjustment of Rs.0.35 million, earnings available for appropriation were Rs.23.7 million vs. Rs.12.9 million.

• Operating cash flow increased to Rs.60.3 million from Rs.47.8 million; cash and bank balances ended at Rs.73.2 million vs. Rs.28.9 million.

• Board recommended total dividend of Rs.5 per share, including interim dividend, vs. Rs.2.50 per share in FY 2001-02.

Outlook and guidance

• Order backlog was Rs.246.5 million at end-May 2003 vs. Rs.180.54 million at end-May 2002.

• Initiatives targeted a stronger domestic position and global supply of specialty products; Cryolock glass-lined agitators and EconoMix impellers were introduced.

• Pharma Glass and Pharma Reactor launches were intended to address demand from the growing pharmaceutical sector.