PTC Industries (539006) Q4 19/20 earnings summary

Executive summary

• FY20 set a revenue record, with total income above ₹175 crore and revenue from operations up 11.16% YoY; EBITDA margin rose to 21% from 18.7%.

• AMTC began commercial production and scaled capacity; new titanium, powder-fabrication and additive-manufacturing capabilities expanded opportunities in aerospace, defence and marine markets.

Financial highlights

• Revenue from operations was ₹168.13 crore versus ₹151.25 crore in FY19; total income was ₹175.33 crore versus ₹155.47 crore, up 12.8% YoY.

• EBITDA before finance costs, depreciation, exceptional items and tax was ₹35.50 crore, up 25% YoY; its share of revenue increased to 21% from 18.7%.

• PBT rose 47% to ₹13.90 crore from ₹9.42 crore; FY19 included a ₹61.81 lakh retrenchment charge, while FY20 had no exceptional item.

• Net profit was ₹10.51 crore versus ₹10.92 crore, down 3.75%; EPS was ₹20.05 versus ₹20.83.

Outlook and guidance

• Management expected subdued near-term conditions due to COVID-19, but saw positive medium- to long-term prospects as new capabilities and contracts support growth.

• Directors projected profitability improvement of 25–30% over the next 2–3 years, citing higher sales, product mix and operating-cost improvements from AMTC technologies.

• Titanium casting commercialisation and Aerolloy Technologies’ Lucknow facility were positioned to support aerospace and defence supply; the facility was expected to begin operations by FY-end.