Maharashtra Seamless (500265) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 turnover rose 19% to Rs 449.70 crore; PBT increased 25% to Rs 90.07 crore, supported by higher production, sales, capacity utilization and cost control.

• Growth plans centered on a Rs 150 crore higher-diameter seamless pipe expansion, with completion targeted by end-2004 and funding largely from internal accruals.

Financial highlights

• Turnover was Rs 449.70 crore versus Rs 376.74 crore; PBT was Rs 90.07 crore versus Rs 71.86 crore.

• PAT was Rs 62.09 crore; after prior-period adjustments and tax provision write-back, adjusted PAT was Rs 63.72 crore versus Rs 50.05 crore.

• Other income rose to Rs 14.07 crore from Rs 4.02 crore, primarily due to gains on investment sales.

• Proposed dividend: 35% on equity shares and 10% on redeemable cumulative preference shares, pro rata for the preference shares allotted on 6 Jan 2003.

Outlook and guidance

• Higher-diameter seamless pipe expansion from 7-inch to 14-inch OD, estimated at Rs 150 crore and 1 lakh MT annual capacity, targeted for completion by end-2004.

• Plans called for phased doubling of existing seamless capacity over 1–3 years, followed by plans to double ERW capacity.

• Expansion was expected to reduce import dependence and support leadership in larger-diameter seamless pipes; funding was expected largely from internal accruals.