Shakti Pumps (India) (531431) Q4 05/06 earnings summary

Executive summary

• FY ended 30 Jun 2006: revenue declined to Rs 4,106.83 lakh from Rs 4,773.05 lakh, while profit before tax rose to Rs 251.42 lakh from Rs 173.54 lakh.

• Export sales grew 23.33% to Rs 3,027.41 lakh; domestic sales fell amid limited customer awareness of energy-saving pumps.

Financial highlights

• Revenue was Rs 4,106.83 lakh versus Rs 4,773.05 lakh; exports were Rs 3,027.41 lakh versus Rs 2,454.71 lakh, and domestic sales were Rs 1,079.42 lakh versus Rs 2,318.34 lakh.

• Profit before interest and depreciation was Rs 522.55 lakh versus Rs 418.10 lakh; interest and financial charges were Rs 193.78 lakh versus Rs 178.11 lakh.

• Net profit after tax was Rs 210.11 lakh versus Rs 149.80 lakh; tax provisions included Rs 28.50 lakh current tax, Rs 9.75 lakh deferred tax and Rs 3.06 lakh fringe benefit tax.

• A 10% dividend was recommended; proposed dividend was Rs 48.22 lakh, with dividend tax provision of Rs 6.76 lakh.

Outlook and guidance

• Production at the new Pithampur SEZ division was expected to begin in the near future; the project was planned in two phases at an estimated cost of Rs 50 crore.

• Management expected faster growth in the current year, citing order response and demand from agriculture and overseas markets.

• Export expansion was planned through new international markets; domestic sales efforts included raising awareness of power-saving pumps.