Shakti Pumps (India) (531431) Q4 04/05 earnings summary

Executive summary

• FY ended June 30, 2005 sales were Rs 4,773.05 lacs and PBT was Rs 173.54 lacs; export growth and higher profits supported performance.

• Export sales rose 71% YoY to Rs 2,454.71 lacs; PBT increased 34% YoY.

• Stainless steel submersible pumps were gaining acceptance in domestic and overseas markets; a new Pithampur SEZ project was planned.

Financial highlights

• Sales totaled Rs 4,773.05 lacs vs Rs 4,698.58 lacs; exports were Rs 2,454.71 lacs vs Rs 1,433.65 lacs, while domestic sales were Rs 2,318.34 lacs vs Rs 3,264.93 lacs.

• PBT was Rs 173.54 lacs vs Rs 129.34 lacs; PAT was Rs 149.80 lacs vs Rs 119.51 lacs.

• Financial charges declined to Rs 178.11 lacs from Rs 255.08 lacs; depreciation increased to Rs 66.45 lacs from Rs 61.18 lacs.

• No dividend was proposed, with resources being conserved.

Outlook and guidance

• Current-year manufacturing activity was described as seeing excellent growth in response and orders; management expected growth faster than the economy and agriculture.

• Domestic and overseas outlook was positive, supported by technology, cost competitiveness and power conservation features.

• Expansion plans included a new manufacturing project in Pithampur SEZ; land allotment and regulatory permissions were being pursued.