Hawkins Cooker (508486) Q4 05/06 earnings summary

Executive summary

• FY2005-06 sales including excise duty reached Rs.1,452m, up 15% YoY; PBT of Rs.59.7m was a record, up 85%, and PAT rose 30% to Rs.40.3m.

• Sales net of excise duty grew 16% to Rs.1,364m, while total expenses excluding excise duty increased 7.9% against sales growth of 15.8%.

Financial highlights

• Sales including excise duty were Rs.1,451.6m versus Rs.1,264.0m; PBT was Rs.59.7m versus Rs.32.3m; PAT was Rs.40.3m versus Rs.31.1m.

• Net cash flow from operating activities increased 40% to Rs.118.4m; Rs.68.0m was used to reduce long-term loans and bank borrowings, and Rs.15.5m to acquire fixed assets.

• FOB exports rose 37% to Rs.88.6m from Rs.64.5m.

Outlook and guidance

• Management assessed the outlook as good, citing positioning to benefit from market demand growth and increase sales and profits; forward-looking outcomes remain subject to actual developments differing from expectations.

• Dealer sales in the general pressure cooker market rose 27%; institutional sales declined 38% amid customer adjustment to fringe benefit tax and VAT changes, with the decline reported reversed by year-end.