Havells India Limited (HAVELLS) Q4 04/05 earnings summary

Executive summary

• FY05 turnover rose 59% to Rs.66,538.46 lakh; net profit increased 46% to Rs.3,052.64 lakh.

• Growth was led by cables and wires, switchgear and the first complete year of consumer durables; expansion and product launches broadened capacity and market reach.

Financial highlights

• Gross sales Rs.66,538.46 lakh vs Rs.41,922.40 lakh; net sales after excise Rs.58,196.24 lakh vs Rs.36,294.64 lakh.

• PBDT Rs.4,731.62 lakh vs Rs.3,274.77 lakh; PBT Rs.4,322.70 lakh vs Rs.3,010.51 lakh; PAT Rs.3,052.64 lakh vs Rs.2,096.11 lakh.

• Export turnover reached Rs.48 crore vs Rs.21 crore, a stated growth of more than 125%; export earnings were Rs.4,841.36 lakh vs Rs.2,115.57 lakh.

• Final dividend proposed at Rs.2.50 per Rs.5 share (50%); total proposed payout including dividend tax was Rs.327.65 lakh, or 10.73% of net profit.

Outlook and guidance

• Outlook described as promising, supported by new infrastructure, manufacturing-sector momentum and growing electrical demand.

• Hardwar fans/CFL plant was targeted to become operational by June 2005; a 25,000 sq. ft. central R&D facility with over 100 engineers was planned.

• Plans included expanding fan and CFL capacity, developing higher-voltage cables and increasing microprocessor-based MCCB capacity.

• Board stated an intention, subject to conditions and not a forecast, to recommend at least 50% dividend on enlarged equity capital after the proposed bonus issue.