Rajratan Global Wire (517522) Q4 04/05 earnings summary

Executive summary

• FY05 sales rose 46% to Rs. 103.69 crore; profit before depreciation and tax reached Rs. 890.47 lakh, and net profit was Rs. 456.57 lakh.

• Record results reflected domestic demand, export-market progress, product-mix changes and cost control.

Financial highlights

• Sales turnover increased from Rs. 71 crore to Rs. 104 crore; profit before depreciation and tax rose from Rs. 615.28 lakh to Rs. 890.47 lakh.

• PBT was Rs. 719.90 lakh vs Rs. 496.66 lakh; net profit was Rs. 456.57 lakh vs Rs. 353.42 lakh.

• EPS was Rs. 12.17 vs Rs. 9.42; proposed dividend was 18%, or Rs. 1.80 per Rs. 10 share.

Outlook and guidance

• FY06 performance was expected to improve, subject to unforeseen contingencies; expanded capacity target was 30,000 MT/year by Dec 2005.

• Further capacity expansion was planned; management said no further equity dilution was expected to fund it.

• Future R&D priorities included lowering energy use per MT of bead wire and improving customer satisfaction.