The Bombay Burmah Trading Corporation (501425) Q4 03/04 earnings summary

Executive summary

• FY04 operations and profitability improved after three difficult years; standalone profit for the year rose to Rs. 527.32 lakhs from Rs. 215.43 lakhs, supported by higher industrial performance, cost control and lower interest costs.

• Consolidated profit after minority interest was Rs. 1,204.14 lakhs versus Rs. 255.39 lakhs; consolidated net sales increased to Rs. 17,756.92 lakhs from Rs. 16,744.44 lakhs.

Financial highlights

• Standalone gross income was Rs. 14,294.03 lakhs versus Rs. 13,530.07 lakhs; net sales rose to Rs. 12,708.13 lakhs from Rs. 11,507.05 lakhs.

• Standalone gross profit before depreciation increased 43% to Rs. 906.61 lakhs; PBT was Rs. 540.29 lakhs versus Rs. 229.55 lakhs, and PAT was Rs. 524.82 lakhs versus Rs. 219.56 lakhs.

• Consolidated total income was Rs. 21,184.83 lakhs versus Rs. 21,017.16 lakhs; PBT increased to Rs. 2,173.38 lakhs from Rs. 933.89 lakhs.

• Standalone interest expense fell to Rs. 1,041.37 lakhs from Rs. 1,616.11 lakhs; consolidated interest expense declined to Rs. 1,090.24 lakhs from Rs. 1,692.45 lakhs.

Outlook and guidance

• Annualised benefits targeted: plantation productivity savings of ~Rs. 2 crore; Formica outsourcing to add ~Rs. 5 crore to revenue and ~Rs. 50 lakhs to profit; debt restructuring to save ~Rs. 7 crore in interest.

• BCL Springs expansion was expected to add ~Rs. 18 crore to revenue and ~Rs. 2 crore to profit on an annualised basis.

• The suspension-spring plant was expected to lift market share to 4% from 1%; management highlighted export potential and new products for springs, and further growth in organic tea and direct sales.