PTC Industries (539006) Q4 16/17 earnings summary

Executive summary

• FY17 revenue from operations rose 4% to ₹99.39 crore; EBITDA margin excluding other income increased to 15% from 14%, while PAT and EPS declined YoY.

• Performance was constrained by subdued markets, lower realizations from metal-price and currency movements, and production capacity used for AMTC trials and technology development.

• AMTC opened in Lucknow, bringing advanced casting, machining, automation and materials capabilities together; near-term performance was expected to remain subdued until the facility reached full production.

Financial highlights

• Net revenue from operations was ₹99.39 crore versus ₹95.68 crore; EBITDA was ₹16.53 crore versus ₹16.15 crore.

• PAT was ₹5.86 crore versus ₹6.15 crore; EPS was ₹11.18 versus ₹11.74. Deferred tax arising on DSIR technology-program expenditure contributed to the PAT decline.

• Domestic sales increased 32% to ₹27.86 crore; export sales, including incentives, fell 3% to ₹73.92 crore amid subdued European conditions.

• Net cash from operations was ₹11.17 crore; fixed-asset purchases and capital advances used ₹71.59 crore during FY17.

Outlook and guidance

• Short-term outlook remained modest until AMTC reached full production; commissioning was expected in FY18, with medium- to long-term prospects viewed more positively.

• AMTC capacity and new technologies were expected to support growth in critical and super-critical applications, expand domestic and export opportunities, and improve operating costs.

• Management expected profitability to improve 25–30% over the next 2–3 years, supported by AMTC capacity, technology and process improvements.

• Government infrastructure investment, Make in India initiatives and GST were expected to support manufacturing demand, though industry growth in 2017 was expected to remain slower.