PTC Industries (539006) Q4 15/16 earnings summary

Executive summary

• FY16 net operating revenue declined 5% to ₹95.68 crore as lower metal prices, weaker euro rates and market slowdown outweighed higher foundry production volumes.

• EBITDA margin eased to 16.88% from 18.91%; PAT was ₹6.15 crore and EPS ₹11.74. Investment remained focused on the Lucknow Advanced Manufacturing & Technology Centre (AMTC).

Financial highlights

• Standalone revenue from operations was ₹95.68 crore versus ₹100.77 crore; EBITDA was ₹16.15 crore versus ₹19.06 crore.

• Standalone PBT was ₹8.15 crore versus ₹8.54 crore; PAT was ₹6.15 crore versus ₹6.49 crore. PAT margin remained 6.4% of operating revenue.

• Consolidated revenue was ₹95.68 crore; consolidated PAT was ₹6.27 crore versus ₹6.44 crore, and consolidated EPS was ₹11.96 versus ₹12.30.

• Export sales were ₹74.35 crore versus ₹76.23 crore; domestic sales were ₹21.02 crore versus ₹24.45 crore.

Outlook and guidance

• AMTC was in its final construction and installation phase, with commissioning and commercial production expected in FY17; increased capacity and new capabilities are expected to support export growth.

• AMTC planned capabilities include single-piece castings up to 5,000 kg and titanium casting, alongside advanced automation and 5-axis CNC machining.

• Forecast profitability improvement of 25–30% over the next 3–4 years was linked to lower operating costs, greater capacity and new titanium-casting revenue potential.

• Directors did not recommend a dividend, citing AMTC completion spending and further funding needs for commercialization.