John Cockerill India (500147) Q4 14/15 earnings summary

Executive summary

• FY 2014-15 was a consolidation year amid weak steel markets and delayed customer projects; revenue fell nearly 50% YoY, while profitability improved through efficiency measures and other income.

• Priorities included operational and commercial efficiency, customer-focused services, technology upgrades, and expansion into South East Asia and Africa.

Financial highlights

• Total revenue was ₹24,092.78 lacs vs ₹45,836.39 lacs in FY 2013-14; net revenue from operations was ₹21,933.39 lacs vs ₹44,283.27 lacs.

• Profit before exceptional items and tax was ₹236.39 lacs vs a ₹2,603.39 lacs loss; a ₹556.48 lacs exceptional credit lifted PBT to ₹792.87 lacs.

• Net income was ₹947.27 lacs vs a ₹2,231.22 lacs loss; EPS was ₹19.18 vs negative ₹45.19.

• Other income rose to ₹2,159.39 lacs from ₹1,553.12 lacs, including ₹853.95 lacs of liabilities/provisions written back and ₹52.08 lacs of doubtful-receivable provision reversal.

• Operating cash flow was ₹3,094.87 lacs; investing cash outflow was ₹283.18 lacs and financing cash outflow was ₹1,145.25 lacs.

Outlook and guidance

• FY 2015-16 success was linked to operating and commercial efficiency, enhanced technology and value-added services, and wider geographic reach.

• Strategy emphasized identifying existing customer needs, developing new customer relationships, and using Taloja and Hedavali facilities for in-house critical components and assemblies.

• Management adopted cautious optimism; analysts’ FY 2015-16 GDP growth forecast was 6.5%, with infrastructure initiatives expected to support demand.