M M Forgings (522241) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 sales rose 25% to Rs. 103.87 crore; profit after tax reached Rs. 7.02 crore, each exceeding a first-time milestone.

• Exports were Rs. 67.10 crore, representing 65% of sales; domestic sales grew 44%.

Financial highlights

• Revenue was Rs. 10,386.63 lakh versus Rs. 8,315.85 lakh; profit before tax was Rs. 948.43 lakh versus Rs. 760.23 lakh.

• Profit after tax was Rs. 702.13 lakh versus Rs. 654.47 lakh; reported EPS increased to Rs. 23.27 from Rs. 21.69.

• Operating profit (PBDIT) rose 11.76% to Rs. 20.72 crore from Rs. 18.54 crore.

Outlook and guidance

• Forging production capacity is being expanded from 20,000 MT to 26,500 MT; machining capacity has also been substantially increased to meet customer demand.

• Wind farm expansion in Tirunelveli District is planned to generate ~14.7 million kWh annually.

• Management identified India’s automotive-component sourcing opportunity and expected domestic demand to benefit from economic growth.