Shivalik Bimetal Controls (513097) Q4 07/08 earnings summary

Executive summary

• FY08 sales and other income reached Rs 8,269.41 lacs, up 17.36% YoY; PBDIT was Rs 1,165.13 lacs and PAT Rs 685.74 lacs.

• Export sales grew 31.42% YoY, led by thermostatic bimetal/trimetal strips and parts, and shunt material.

• Growth initiatives included a new clad-metals JV at Pithampur and expansion of the Checon contact-solutions JV.

Financial highlights

• PBT was Rs 710.46 lacs vs Rs 683.71 lacs in FY07; PAT was Rs 685.74 lacs vs Rs 645.93 lacs.

• PBDIT was Rs 1,165.13 lacs vs Rs 1,135.81 lacs; interest was Rs 294.71 lacs and depreciation Rs 159.96 lacs.

• Standalone P&L reports net sales of Rs 7,238.64 lacs, job work of Rs 1.81 lacs and other income of Rs 255.52 lacs.

• Consolidated sales and other income were Rs 7,844.46 lacs; consolidated PBT was Rs 769.46 lacs and PAT Rs 736.26 lacs.

Outlook and guidance

• Existing-product outlook was described as promising; priorities included product diversification, quality, cost reduction, stronger domestic and export presence, and optimal resource use.

• Innovative Clad Solutions was expected to begin commercial production in April 2009; sampling for new products was complete, with potential-customer responses awaited.

• Directors expected future growth after successful efforts to offset declining color picture tube parts sales with clad-metal products and other applications.