PTC Industries (539006) Q4 17/18 earnings summary

Executive summary

• FY18 revenue from operations declined 1% to ₹101.33 crore; PAT rose to ₹7.44 crore and EPS to ₹14.20 despite Lucknow relocation disruption and a workers’ strike.

• AMTC phase I began commercial production in June 2018, expanding advanced manufacturing capacity and capabilities; near-term financial outlook remained modest, with benefits expected as operations scale.

Financial highlights

• Revenue from operations was ₹10,133.38 lakh versus ₹10,232.24 lakh in FY17; total income rose to ₹10,422.04 lakh from ₹10,383.86 lakh.

• PBT increased to ₹849.05 lakh from ₹779.60 lakh; PAT rose to ₹744.01 lakh from ₹601.41 lakh, supported by improved operations and tax impacts.

• Basic and diluted EPS were ₹14.20 versus ₹11.48; total comprehensive income was ₹747.28 lakh versus ₹584.38 lakh.

• EBITDA margin excluding other income was 15.2% versus 14.9%; another operating-results presentation reported EBITDA margin of 18% versus 16.4%.

• Operating profit margin was 18.1% versus 16.9%; net profit margin was 7.4% versus 6.1% in the five-year highlights.

Outlook and guidance

• Short- to medium-term financial outlook was expected to remain modest; fuller financial benefits were tied to operationalisation of AMTC and ramp-up of its capabilities.

• Commercial production at AMTC phase I commenced in June 2018; Lucknow turnover was expected to rise in the following year as the new plant came onstream.

• Production tonnage doubled compared with prior years in H2, described as the first stage toward 4,000 MT annual output.

• Medium- to long-term sector prospects were positive, while domestic and export markets were still recovering and near-term growth was expected to be slow.