Godfrey Phillips India (500163) Q4 03/04 earnings summary

Executive summary

• FY2003-04 sales turnover reached a record Rs1,177 crore, up 9.2% YoY; cigarette volumes rose 12%, and domestic volumes grew faster than the industry.

• Net profit increased to Rs52.18 crore from Rs37.91 crore; growth plans centered on exports, brand development and modernization of manufacturing facilities.

Financial highlights

• Gross sales were Rs117,652.49 lakh versus Rs107,734.16 lakh; net sales after excise duty were Rs62,464.99 lakh versus Rs55,371.87 lakh.

• Profit after tax rose to Rs5,217.60 lakh from Rs3,790.61 lakh; basic and diluted EPS increased to Rs50.18 from Rs36.45.

• Cigarette sales volume reached 11,867 million sticks versus 10,593 million, a 12% increase; domestic volumes grew 8.3% versus industry growth of 4.7%.

• FOB exports of tobacco, cigarettes and tea totaled Rs69.50 crore versus Rs52.47 crore; cigarette exports rose 42% in value to Rs27 crore.

Outlook and guidance

• International Division targeted exports of 1,800 million cigarette sticks in FY2004-05, expected to deliver 30% volume growth.

• Management expected tobacco-export momentum to continue in FY2004-05 and subsequent years.

• Rs114 crore of investment was planned for the next fiscal year at Mumbai and Ghaziabad plants to improve quality, productivity and global competitiveness.