Pakka (516030) Q4 2002 earnings summary

Executive summary

• 9M ended Dec. 31, 2002: profit improved on lower input costs and higher capacity utilization; the period is not comparable with the prior 12-month year after the accounting-year change.

• Proposed dividend of ₹1 per equity share, or 10%, versus ₹0.50 per share, or 5%, for the prior year.

Financial highlights

• Sales were ₹1,838.05 lakh and total income ₹1,918.23 lakh for 9M; turnover increased 11.09% on an annualized basis.

• Profit before tax was ₹239.24 lakh versus ₹143.47 lakh for the prior 12 months; lower input costs aided performance.

• Profit after tax was ₹135.16 lakh versus ₹77.18 lakh; 9M current tax was ₹18.84 lakh and deferred tax was ₹85.24 lakh.

• EPS was ₹3.50 for 9M versus ₹2.00 for the prior 12 months; comparisons are affected by the shorter current period.

• Production was 11,188 MT and sales 10,857 MT; exports totaled ₹115.04 lakh for 9M.

Outlook and guidance

• Expansion plan targets capacity growth from 16,000 to 24,750 TPA with a new paper machine; project cost was being finalized.

• Expansion also includes pulp-mill modernization and a chemical recovery unit.

• Product strategy centers on specialized 18–32 GSM papers, aimed at niche markets and higher profitability.