GMM Pfaudler (505255) Q4 03/04 earnings summary

Executive summary

• FY04 sales and other income rose to Rs 638.5m from Rs 536.1m; PBT more than doubled to Rs 73.8m and net profit reached Rs 62.1m.

• Improved market share and cost control supported results; year-end backlog reached Rs 356.6m, up from Rs 246.5m at end-May 2003.

Financial highlights

• Income from operations was Rs 589.7m versus Rs 521.8m; other income increased to Rs 48.8m from Rs 14.3m.

• PBT was Rs 73.8m versus Rs 34.5m; reported profit after tax was Rs 62.1m versus Rs 23.7m.

• Basic and diluted EPS rose to Rs 21.25 from Rs 8.12.

• Other income included Rs 14.9m net gain on fixed-asset sales and Rs 5.2m gain on current-investment sales.

Outlook and guidance

• Backlog at end-May 2004 was Rs 356.6m versus Rs 246.5m a year earlier, reflecting marketing, sales and product-development initiatives.

• Pharma Glass PPG gained adoption among pharmaceutical customers; Economix glass-lined agitators with Cryolock technology were gaining traction in fine chemicals and pharmaceuticals.

• Thermal Control Units and other products in development were expected to contribute to future business.

• Agri-industry was identified as a fast-growing customer sector, with improved product demand expected in FY05.