Olectra Greentech (532439) Q4 07/08 earnings summary

Executive summary

• FY08 net sales after excise reached ₹5,082.14 lakh; standalone net profit rose to ₹1,001.48 lakh from ₹291.54 lakh, driven by strong insulator demand.

• Consolidated net profit was ₹969.95 lakh, with EPS of ₹4.61; growth was accompanied by substantial investment in land advances and a ₹33 crore warrant issue.

Financial highlights

• Standalone sales and services were ₹5,855.45 lakh, up from ₹2,886.45 lakh; total income was ₹5,173.23 lakh versus ₹2,632.32 lakh.

• Standalone operating profit was ₹1,698.15 lakh and PBT ₹1,296.91 lakh; PAT was ₹1,012.16 lakh before ₹10.68 lakh of prior-period adjustments, yielding net profit of ₹1,001.48 lakh.

• Consolidated total income was ₹5,175.85 lakh; PBT was ₹1,264.80 lakh and net profit ₹969.95 lakh after ₹13.09 lakh of prior-period adjustments.

• Consolidated EPS was ₹4.61 after non-recurring items and ₹4.68 before them; standalone EPS was ₹4.76 after and ₹4.81 before non-recurring and exceptional items.

• Recommended dividend was 10%, or ₹0.40 per ₹4 share; total payout including dividend tax was ₹98.38 lakh.

Outlook and guidance

• Insulators outlook was described as bright, supported by a leadership position and planned development of surge arrestors, high-voltage post insulators, fuse cutouts, FRP cross arms and hollow-core insulators.

• New products and modified designs were being developed for customer requirements; further infrastructure-market opportunities were expected to support future turnover and profitability.