Linde India (523457) Q4 02/03 earnings summary

Executive summary

• FY03 gross sales rose 6% YoY to Rs 3,222.7m; underlying growth was ~10% after adjusting for power-tariff revenue de-escalation.

• Profit before tax reached Rs 199.8m, including net extraordinary income of Rs 85.2m; profit after tax was Rs 163.3m, up from Rs 25.8m.

• No dividend was recommended; the accumulated debit balance in the Profit and Loss Account was cleared, with Rs 9.8m carried forward.

Financial highlights

• Operating profit after depreciation and interest, before extraordinary items, rose to Rs 114.6m from Rs 35.5m; reported net sales were Rs 2,945.0m vs Rs 2,766.1m.

• Net extraordinary income of Rs 85.2m comprised Rs 135.1m profit on Delhi property sale, partly offset by Rs 49.9m closure-unit settlement compensation.

• Basic and diluted EPS were both Rs 3.33, compared with Rs 0.53 in FY02.

Outlook and guidance

• Improving economic and steel-market conditions were expected to support demand in FY04, while competition was expected to keep prices and margins under pressure.

• The 225 tpd Tata Steel onsite oxygen plant was progressing to schedule, with commissioning expected by July 2003.

• Plans included revamping compressed-gas production facilities to lower costs, improve efficiencies and strengthen customer service.

• Medical gases, home oxygen therapy and new applications in pharmaceuticals and chemicals were identified as growth opportunities.