Olectra Greentech (532439) Q4 04/05 earnings summary

Executive summary

• FY05 net sales rose 46% YoY to Rs 2,006.35 lakh; net profit was Rs 77.94 lakh, including a Rs 19.80 lakh prior-period credit. No dividend recommended.

• Telecom, Insulators and BPO all improved turnover and profit after tax; growth was supported by stronger orders and product diversification.

Financial highlights

• Total income was Rs 2,090.98 lakh vs Rs 1,421.47 lakh; operating profit (PBIDT) Rs 495.17 lakh vs Rs 350.67 lakh; PBT Rs 120.76 lakh vs Rs 23.90 lakh.

• PAT before prior-period adjustments was Rs 58.14 lakh vs Rs 23.90 lakh; prior-period credit of Rs 19.80 lakh lifted net profit to Rs 77.94 lakh vs Rs 11.49 lakh.

• Other income rose to Rs 84.63 lakh, including Rs 69.72 lakh interest on an excise refund; raw-material costs increased with sales volume and petroleum/polymer prices.

• Administrative and selling expenses fell to Rs 384.63 lakh from Rs 435.93 lakh; personnel expenditure declined to Rs 213.07 lakh from Rs 243.27 lakh.

Outlook and guidance

• FY06 higher turnover and profits expected, supported by bulk composite-insulator orders from Indian Railways and state power utilities; orders were scheduled for delivery in FY06.

• BPO expected to contribute to growth; rural telephony programs were expected to support stable demand for telephone cable jointing kits.

• Polymer-based compounds for heat-shrinkable oil and gas pipeline sleeves were developed; plans included diversifying into services and building power-sector expertise.