Olectra Greentech (532439) Q4 03/04 earnings summary

Executive summary

• FY04 performance reflected continued telecom cable-kit weakness, offset by BPO growth and entry into composite insulators; standalone net profit was Rs 11.50 lakh.

• Strategy shifted toward energy-sector products and inbound BPO services as wireless adoption and US restrictions pressured legacy telecom demand.

Financial highlights

• Standalone sales Rs 13.76 crore vs Rs 13.01 crore in FY03; total income Rs 14.21 crore vs Rs 13.71 crore.

• Standalone PBIDT Rs 350.67 lakh; PBT Rs 23.90 lakh vs Rs 153.18 lakh; net profit Rs 11.50 lakh vs Rs 122.26 lakh, after Rs 12.41 lakh prior-period adjustments.

• Consolidated sales Rs 16.12 crore; consolidated PBT loss Rs 22.30 lakh and net loss Rs 37.37 lakh, including prior-period adjustments.

• No dividend recommended for FY04.

Outlook and guidance

• FY05 turnover target Rs 38.50 crore and net profit target Rs 300 lakh, including BPO revenue.

• Composite-insulator turnover target Rs 10 crore in FY05; bulk orders from power utilities and Indian Railways were expected.

• Higher telecom cable-kit orders from BSNL and MTNL were expected in FY05; BPO plans emphasized technical support, back-office and other verticals.

• Extra-high-voltage insulators at 132, 220 and 400 kV were under testing; commercial scaling was expected by April 2005.