Pitti Engineering (513519) Q4 06/07 earnings summary

Executive summary

• FY07 sales reached a record 15,447 MT, up 54% YoY; revenue rose 69.18% to Rs.160.87 crore and PAT increased to Rs.10.15 crore from Rs.6.89 crore.

• Expansion and modernisation commissioned in September 2006 lifted annual installed capacity to 25,000 MT; forward integration was underway.

Financial highlights

• Net sales were Rs.147.58 crore versus Rs.85.21 crore; PBT was Rs.13.37 crore versus Rs.10.72 crore.

• PAT was Rs.10.15 crore versus Rs.6.89 crore; cash profit after tax was Rs.12.44 crore versus Rs.8.07 crore.

• FY07 results included a Rs.1.12 crore foreign-exchange loss; reported finance charges rose to Rs.4.59 crore from Rs.1.92 crore.

• Net worth at 31 March 2007 was Rs.49.22 crore versus Rs.30.08 crore a year earlier.

Outlook and guidance

• FY08 sales target: 18,000 MT, with exports targeted at 6,500 MT; management cited stronger domestic demand, increased GE offtake and new capacity.

• Forward integration project was expected to begin operations in December 2007; casting sourcing diversification was being explored to support continuity.