Olectra Greentech (532439) Q4 08/09 earnings summary

Executive summary

• FY09 net sales after excise were Rs 4,560.62 lakh, down from Rs 5,082.14 lakh; net profit fell to Rs 627.18 lakh from Rs 1,001.48 lakh.

• Insulators remained the main business; a merger of three telecom/related entities took effect in August 2009, with an appointed date of 1 April 2008.

Financial highlights

• Total income was Rs 4,649.40 lakh vs Rs 5,173.23 lakh; PBT was Rs 875.24 lakh vs Rs 1,296.91 lakh.

• PAT was Rs 660.30 lakh vs Rs 1,012.16 lakh; after prior-period adjustments and previous-year taxes, net profit was Rs 627.18 lakh vs Rs 1,001.48 lakh.

• Turnover including excise was Rs 5,117.43 lakh vs Rs 5,855.45 lakh; production was 3,96,879 polymer insulators and 10,382 heat-shrinkable sleeves.

Outlook and guidance

• Insulator outlook was described as bright, supported by leadership position, product development and the merger’s available infrastructure.

• Two injection moulding machines, one crimping machine and one sheathing machine were installed; management expected capacity additions to support higher future turnover.

• Heat-shrinkable sleeve trials succeeded using in-house-developed materials; commercial production was planned after formal approvals, with potential to contribute materially to turnover.