Olectra Greentech (532439) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 combined a contracting telecom-kit business with a newly launched BPO operation; reported results cover 12 months versus 9 months in the prior period.

• BPO began operations in Nov 2002 and generated Rs 3.48 crore revenue and Rs 0.83 crore profit in its first five months.

Financial highlights

• Standalone sales were Rs 1,301.23 lakh versus Rs 1,751.99 lakh in the prior 9-month period; other income was Rs 69.77 lakh versus Rs 90.81 lakh.

• Standalone PBT was Rs 153.18 lakh versus Rs 345.75 lakh; PAT was Rs 122.33 lakh versus Rs 278.08 lakh, with prior-period adjustments reducing net profit to Rs 122.26 lakh.

• Consolidated sales were Rs 1,429.24 lakh and consolidated net profit was Rs 114.78 lakh; consolidated EPS was Rs 0.85 versus Rs 1.04 for the prior 9-month period.

Outlook and guidance

• Management expected the BPO investment to help compensate for the decline in telecom-kit business; no quantified future earnings guidance was stated.

• Plans included entering the power industry through polymer-insulator manufacturing; investment was also underway in a hydel power project.