Shakti Pumps (India) (531431) Q4 06/07 earnings summary

Executive summary

• FY ended 30 June 2007 revenue rose 44.60% YoY to Rs 5,938.61 lakh; PBT increased 52.07% to Rs 794.68 lakh.

• Expansion of production capacity, energy-efficient pump demand and international market development were central to the growth strategy.

Financial highlights

• Sales were Rs 5,938.61 lakh versus Rs 4,106.83 lakh in FY2006; export sales were Rs 3,095.15 lakh and domestic sales Rs 2,843.46 lakh.

• PBT was Rs 794.68 lakh versus Rs 522.55 lakh; profit after tax was Rs 313.62 lakh versus Rs 210.11 lakh.

• Recommended dividend of 10%, or Rs 1 per Rs 10 equity share, subject to shareholder approval.

• Standalone operating cash flow was negative Rs 163.71 lakh; investing cash outflow was Rs 3,802.49 lakh, funded partly by Rs 3,977.99 lakh net financing cash flow.

Outlook and guidance

• Management expected faster-than-economy and agriculture growth in the current year, citing order response and increased installed capacity.

• Domestic and overseas outlook was positive, supported by technology, cost competitiveness and power savings; products were reported to save energy by up to 40%.

• Plans included adding distributors, adapting products for Middle East markets and establishing direct presence in 10 additional countries over coming years.