PTC Industries (539006) Q4 14/15 earnings summary

Executive summary

• FY15 revenue from operations fell 15% to ₹100.77 crore amid weak domestic and international demand and capacity used for AMTC trials; EBITDA margin rose to 18.9% from 17.9%.

• Profit after tax increased 8% to ₹6.49 crore; PBT declined 22% to ₹8.54 crore. Net worth rose 65% to ₹113.98 crore, supported by CCD conversion to equity.

Financial highlights

• Net revenue was ₹100.77 crore versus ₹119.06 crore; EBITDA was ₹19.06 crore versus ₹21.27 crore, while PAT was ₹6.49 crore versus ₹6.02 crore.

• Reported diluted EPS after exceptional items was ₹12.40 versus ₹12.27; excluding exceptional items, diluted EPS was ₹15.45 versus ₹13.45.

• Export sales, including incentives, declined 16% to ₹78.45 crore; domestic net sales declined about 14%.

Outlook and guidance

• AMTC’s expanded scope is expected to delay commercial production by 12–18 months; the project cost is estimated at ₹142 crore, funded through bank and institutional borrowings, internal accruals and fresh equity or convertible securities.

• AMTC is planned to nearly triple existing capacity, add 5-axis machining and single-piece castings up to 5,000 kg, and introduce titanium casting capability in India.

• Management expects sluggish near-term domestic and export markets, but sees positive medium- to long-term prospects, supported by manufacturing investment and Make in India initiatives.