Maharashtra Seamless (500265) Q4 03/04 earnings summary

Executive summary

• Record FY04 turnover of ₹569.01 crore, up 26% YoY; PBT rose 17% to ₹105.07 crore and adjusted PAT reached ₹71.75 crore.

• Growth was driven by higher production, improved sales realization, cost controls and operating efficiency amid rising steel prices.

Financial highlights

• Net sales and operating income, after excise duty, were ₹491.28 crore versus ₹383.80 crore in FY03; other income was ₹13.72 crore.

• PBT was ₹105.07 crore versus ₹90.07 crore; PAT before prior-period adjustments was ₹71.46 crore versus ₹62.09 crore.

• Adjusted PAT, after prior-period adjustments and tax provision write-back, was ₹71.75 crore versus ₹63.72 crore.

• Finance charges rose to ₹1.97 crore from ₹1.36 crore; depreciation was ₹6.98 crore versus ₹6.69 crore.

Outlook and guidance

• The ₹150 crore 7–14-inch seamless pipe expansion was at an advanced stage, with commissioning expected within FY05; capacity to increase by 100,000 tonnes.

• Expansion was expected to address domestic demand for larger-diameter seamless pipes, currently met largely by imports, and lift seamless-market share from ~40% to 55–60%.

• Management cited further demand growth from oil and gas exploration, drilling and cross-country pipeline projects, alongside export opportunities in the US, Middle East and Southeast Asia.