M M Forgings (522241) Q4 01/02 earnings summary

Executive summary

• FY02 sales rose to Rs 7,716.79 lakh from Rs 6,959.42 lakh; PAT was Rs 605.08 lakh versus Rs 662.75 lakh amid a sluggish economy.

• Exports grew 19% to Rs 5,753.10 lakh and represented 75% of turnover; domestic sales declined.

Financial highlights

• Sales were Rs 7,716.79 lakh, up from Rs 6,959.42 lakh in FY01; other income was Rs 1.40 lakh versus Rs 9.97 lakh.

• PBT was Rs 705.08 lakh versus Rs 792.75 lakh; PAT was Rs 605.08 lakh versus Rs 662.75 lakh.

• Adjusted for the Rs 118.61 lakh Gears India investment write-off, profit before the write-off was Rs 823.69 lakh.

• Depreciation rose to Rs 915.40 lakh from Rs 641.78 lakh; interest declined to Rs 75.94 lakh from Rs 194.55 lakh.

Outlook and guidance

• Fourth plant near Tambaram was expected to be commissioned in October 2002.

• Windfarm phase one was completed and phase two was underway; full development was expected to generate 6 million kWh annually.

• Management expected Indian economic recovery to accelerate and planned to continue using exports to drive growth.

• Continued IT investment was expected to strengthen internal controls; manufacturing sites were linked by terrestrial and satellite networks.