Linde India (523457) Q4 05/06 earnings summary

Executive summary

• FY ended 31 Mar 2006 gross sales reached a record Rs 5,609.34m, up 32% YoY; operating profit before extraordinary items rose 77% to Rs 809.14m.

• Profit after tax was Rs 786.27m, including a Rs 474.66m net gain from Bangalore property disposal and a Rs 65.14m closed-unit settlement charge.

• Growth reflected higher volumes and price realisations, operating efficiencies and strong Project Engineering execution; a 30% dividend was recommended.

Financial highlights

• Gross sales rose 32% to Rs 5,609.34m; net sales were Rs 5,221.92m, versus Rs 3,847.11m in FY05.

• Operating profit after depreciation, impairment and interest, before extraordinary items, increased 77% to Rs 809.14m from Rs 455.90m.

• PBT reached Rs 1,218.66m versus Rs 475.33m; excluding extraordinary items, PBT was Rs 809.14m versus Rs 455.90m.

• PAT was Rs 786.27m versus Rs 279.75m; EPS was Rs 16.02 versus Rs 5.70, while EPS before extraordinary items was Rs 9.84 versus Rs 5.43.

• Tax provision rose to Rs 432.39m from Rs 195.58m, reflecting a move from MAT to normal tax rates and Fringe Benefits Tax.

Outlook and guidance

• Infrastructure, construction and steel capacity expansion are expected to support domestic gas demand; automobile, float glass, petrochemical and infrastructure investment also provide growth opportunities.

• Bidding continued for large steel and petrochemical projects, with expectations of winning some opportunities; competition is expected to intensify in a price-sensitive market.

• A 855 tpd Bellary ASU was expected to be commissioned by mid-2006; commissioning of the Medak ASU was complete and its operations had stabilised.