PTC Industries (539006) Q4 13/14 earnings summary

Executive summary

• FY2013-14 net revenue fell 14% YoY to ₹119.06 crore, while PBT before prior-period items rose 32% to ₹12.03 crore; export turnover reached a record ₹89.71 crore.

• Profit after tax before prior-period items increased to ₹9.26 crore from ₹7.72 crore; reported PAT after prior-period adjustments was ₹6.02 crore versus ₹7.67 crore.

Financial highlights

• Net revenue declined 14% to ₹119.06 crore from ₹138.13 crore, mainly reflecting the absence of Bhiwadi unit sales after its prior-year slump sale.

• Export sales, including incentives, rose 10% to ₹92.96 crore; domestic sales fell to ₹25.61 crore from ₹52.69 crore as focus shifted to international markets.

• PBT before prior-period items grew 32% to ₹12.03 crore; PAT before prior-period items was ₹9.26 crore versus ₹7.72 crore.

• Adjusted for prior-period items, basic EPS rose to ₹22.10 from ₹18.42; reported basic EPS after prior-period items was ₹14.37 versus ₹18.29.

• Operating cash flow increased to ₹26.62 crore from ₹11.77 crore; capital expenditure purchases were ₹13.16 crore.

Outlook and guidance

• Domestic and export outlook for H1 FY2014-15 was expected to remain sluggish; the medium- and long-term outlook for served sectors was positive.

• The Lucknow Advanced Manufacturing & Technology Centre was under construction at an estimated ₹83 crore project cost, funded through bank and institutional borrowing, internal accruals and potential CCD issuance.

• The new facility is planned for high-precision critical parts, automated manufacturing and castings up to 5,000 kg; significant investment in capacity, technology, product platforms and skills is planned.

• The Modrany Power JV expected to begin Indian production of medium- and low-pressure piping components in 2015.