Pitti Engineering (513519) Q4 07/08 earnings summary

Executive summary

• FY08 revenue reached a record ₹182.97 crore, up 14.46% YoY; sales volume was 17,080 MT versus the 18,000 MT target, with electrical-steel supply disruptions limiting output.

• All-time-high production and sales accompanied the commissioning of the forward-integration machining project; lower rupee/dollar rates and higher deferred tax contributed to lower profit.

Financial highlights

• Revenue was ₹182.97 crore versus ₹159.85 crore in FY07; net sales after taxes and duties were ₹169.72 crore versus ₹146.67 crore.

• PBT fell to ₹10.65 crore from ₹13.36 crore; PAT declined to ₹6.57 crore from ₹9.58 crore, including deferred tax provision of ₹1.70 crore versus ₹0.18 crore.

• Cash profit after tax was ₹9.97 crore versus ₹11.87 crore; net worth rose to ₹54.40 crore from ₹49.22 crore.

• Proposed dividend was 20% of paid-up equity, with total outlay of ₹2.21 crore including dividend tax.

Outlook and guidance

• FY09 sales target: 21,000 MT, including 10,000 MT exports; planned sales of 1,500 motor housings, with management citing customer support and order-book status.

• Management projected ~23% growth for the 21,000 MT target and expected casting procurement to remain streamlined without disruption.

• Electrical-steel supply was expected to remain constrained into Q2; availability was expected to improve from Q3, with sourcing from alternative suppliers also pursued.