Olectra Greentech (532439) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 standalone net sales after excise reached ₹2,958.60 lakh; net profit was ₹659.99 lakh and EPS ₹3.14. No dividend was recommended.

• Consolidated net sales after excise were ₹3,258.95 lakh, with net profit of ₹648.04 lakh and EPS of ₹3.08.

Financial highlights

• Standalone total income rose to ₹3,682.84 lakh from ₹2,028.15 lakh; operating profit was ₹1,258.58 lakh versus ₹494.23 lakh.

• Standalone profit before tax was ₹850.37 lakh versus ₹120.75 lakh; profit after tax was ₹659.79 lakh versus ₹58.14 lakh. Prior-period adjustments of ₹0.20 lakh brought reported net profit to ₹659.99 lakh.

• Other income increased to ₹724.24 lakh, including ₹459.77 lakh commission and ₹140.22 lakh interest on excise refunds.

• Consolidated total income was ₹4,003.63 lakh, versus ₹2,170.58 lakh; consolidated PBT was ₹849.58 lakh, versus ₹78.21 lakh.

Outlook and guidance

• FY 2006-07 outlook anticipated higher turnover and improved profitability from increased volumes and cost controls; telephone cable jointing kit procurement was expected to remain stable.

• Full-scale commercial production of high-voltage insulators was expected to begin during FY 2006-07; insulator performance was forecast to be strong as customer interest in composites increased.

• Options were under review to improve returns from the BPO/Call Centre division amid reduced activity and intense IT/ITES competition.