Pakka (516030) Q4 2003 earnings summary

Executive summary

• FY ended Dec. 31, 2003; 12-month results compared with a prior 9-month period after the accounting year shifted from March to December.

• Production reached 14,795 MT, with 93% capacity utilization; sales were 14,878 MT and exports represented 12.29% of sales.

• Net profit fell amid higher raw-material and fuel costs and increased excise duty; management expected better 2004 results as cost pressures eased and paper prices firmed.

Financial highlights

• Gross turnover was ₹2,679.86 lakh versus ₹1,838.05 lakh in the prior 9-month period; reported annualized increase was 9.35%.

• Profit before tax was ₹119.97 lakh versus ₹239.24 lakh; profit after tax was ₹87.49 lakh versus ₹135.16 lakh, with periods not directly comparable.

• Current tax provision was ₹39.55 lakh; deferred tax was a ₹7.07 lakh credit, versus a ₹85.24 lakh provision in the prior period.

• Proposed dividend was ₹1 per equity share, or 10%; total payout ₹38.66 lakh plus ₹4.83 lakh dividend tax.

Outlook and guidance

• Management expected materially better 2004 results, citing substantially abated cost pressures and firming paper prices.

• Planned ₹85 crore expansion to increase paper capacity to 120 MT/day, with a new paper unit, power co-generation and caustic-soda recovery effluent treatment plant.

• New capacity was expected to support specialized, higher-quality paper varieties with improved profitability and growth prospects.