Ramkrishna Forgings (RKFORGE) Q4 03/04 earnings summary

Executive summary

• FY04 turnover Rs3,546.39 lakh vs Rs2,921.77 lakh in FY03; profit after tax Rs147.59 lakh vs Rs60.78 lakh.

• Expansion lifted installed capacity from 5,550 MT to 12,150 MT; further capacity, CNC machining and die-making facilities were planned.

Financial highlights

• Sales and operating income, net of excise duty, Rs3,155.87 lakh vs Rs2,593.05 lakh; total income after stock changes Rs3,279.34 lakh vs Rs2,589.51 lakh.

• Profit before tax Rs232.45 lakh vs Rs95.66 lakh; profit after tax Rs147.59 lakh vs Rs60.78 lakh, with deferred tax provision of Rs65.61 lakh in FY04.

• Profit before interest, depreciation and tax Rs440.43 lakh vs Rs248.40 lakh; interest Rs75.60 lakh and depreciation Rs132.38 lakh in FY04.

Outlook and guidance

• Robust FY05 growth expected, supported by new production lines, broader customer reach and CNC machining for precision, ready-to-use components.

• Capacity was expected to rise to ~17,550 MT by end-September 2004; CNC machining completion was also targeted for September 2004.

• TS 16949 quality accreditation targeted by December 2004 to improve product acceptance among European car manufacturers.