PTC Industries (539006) Q4 20/21 earnings summary

Executive summary

• FY21 operations faced COVID-19 shutdowns from March 22 to May 10, 2020; revenue reflected roughly 10 months of operations, while production gradually ramped toward normal levels.

• The Advanced Manufacturing & Technology Centre (AMTC) became operational, adding capacity and advanced processes; part of its capacity remained devoted to trials, R&D and new product development.

• Strategic priorities centered on technology and manufacturing parity, import substitution, exports, and expansion into aerospace and defence applications.

Financial highlights

• Revenue from operations fell 2.84% YoY to Rs 163.35 crore; total income declined 3.87% to Rs 168.55 crore.

• EBITDA rose 13% to Rs 40 crore; EBITDA as a percentage of revenue improved to 24.57% from 21% YoY.

• Standalone PBT was Rs 12.32 crore vs Rs 13.90 crore; net profit was Rs 4.39 crore vs Rs 10.51 crore.

• EPS fell to Rs 8.37 from Rs 20.05, including a Rs 9.57 crore MAT-credit reversal following adoption of the new tax regime.

• Operating cash flow was Rs 4.76 crore vs Rs 18.24 crore; cash flow was affected by working-capital movements, including higher receivables.

Outlook and guidance

• Medium- to long-term outlook remained positive, supported by new technologies, higher-value products and expansion into aerospace and defence; near-term domestic and export growth outlook remained subdued due to COVID-19.

• Plans included developing titanium ingot and billet manufacturing, advancing additive manufacturing, and expanding the sales network into Germany and Japan alongside existing UK, France and US presence.

• Demand was expected to recover as business resumed; directors anticipated no material adverse impact on future business prospects, while noting that the pandemic's duration and effects remained uncertain.