M M Forgings (522241) Q4 04/05 earnings summary

Executive summary

• FY05 sales rose 53% to Rs 158.71 crore; PAT was Rs 11.82 crore versus Rs 7.36 crore, with operating profit (PBDIT) up 50.13% to Rs 31.11 crore.

• Export sales reached Rs 96.80 crore, 61% of total sales; domestic sales grew 68%.

• Capacity increased to 26,500 MT from 20,000 MT; FY05 capital expenditure was Rs 35.78 crore.

Financial highlights

• Standalone sales Rs 15,871.02 lakh versus Rs 10,386.63 lakh; PBT Rs 1,517.86 lakh versus Rs 948.43 lakh.

• Standalone PAT Rs 1,182.86 lakh versus Rs 736.43 lakh; reported P&L includes a Rs 220.56 lakh deferred-tax charge.

• Consolidated sales Rs 15,955.02 lakh versus Rs 10,494.92 lakh; consolidated PAT Rs 1,184.40 lakh versus Rs 738.77 lakh.

• EPS Rs 19.60 after the 1:1 bonus issue, versus Rs 24.40 in FY04; pre-bonus FY05 EPS was Rs 39.20.

• Recommended dividend of 30%; dividend and dividend tax provisions totaled Rs 204.72 lakh.

Outlook and guidance

• Planned ongoing R&D focused on reducing steel, fuel and power input costs; further capacity and machining investment aligned with customer demand.

• Cost reduction, quality and prompt delivery positioned as priorities to sustain growth amid competitive customer pricing.