Pitti Engineering (513519) Q4 03/04 earnings summary

Executive summary

• Turnaround continued for a second consecutive year; net worth turned positive at Rs. 705.05 lakh as of 31 March 2004, following implementation of the BIFR rehabilitation scheme.

• Output reached a record 5,388 MT, with sales growth supported by buoyant demand, lower interest costs after OTS settlements, and working-capital management.

Financial highlights

• Sales and services were Rs. 4,531.96 lakh, up 51.44% YoY; profit after tax was Rs. 403.19 lakh versus Rs. 121.88 lakh in FY02/03.

• Profit before tax was Rs. 379.36 lakh versus Rs. 133.31 lakh; total income was Rs. 4,519.24 lakh versus Rs. 3,072.57 lakh.

• Cash profit before tool and die write-offs, tool-room expense capitalization, and depreciation was Rs. 514.58 lakh versus Rs. 396.25 lakh.

• No dividend recommended; accumulated losses stood at Rs. 138.46 lakh at 31 March 2004.

Outlook and guidance

• FY04/05 target: ~6,500 MT of sales, representing stated growth of 20%, supported by continued buoyant demand.

• Expansion near the existing plant was under consideration for FY04/05, with new facilities intended primarily to serve export orders; funding arrangements were being evaluated.

• Management expected a major export breakthrough to boost overseas sales; export initiatives were planned for the current year and beyond.