The Bombay Burmah Trading Corporation (501425) Q4 04/05 earnings summary

Executive summary

• FY ended 31 Mar 2005: standalone gross income rose 13% YoY to Rs. 16,186 lakh and PBT rose 43% to Rs. 775.21 lakh; consolidated net sales rose to Rs. 19,526.36 lakh from Rs. 17,756.92 lakh.

• Consolidated PBT was Rs. 5,127.14 lakh and profit after minority interest Rs. 3,669.92 lakh; earnings included Rs. 2,697.80 lakh share of associates’ profit.

Financial highlights

• Standalone PAT was Rs. 678.21 lakh vs Rs. 524.82 lakh; profit for the year after prior-year tax adjustments was Rs. 675.27 lakh vs Rs. 527.32 lakh.

• Standalone EPS rose to Rs. 4.84 from Rs. 3.78; consolidated EPS rose to Rs. 26.30 from Rs. 8.63.

• Standalone interest expense fell to Rs. 754.46 lakh from Rs. 1,041.37 lakh; debt restructuring reduced interest costs by Rs. 287 lakh.

• Consolidated PAT before minority interest was Rs. 3,912.53 lakh vs Rs. 1,405.43 lakh; profit after minority interest was Rs. 3,669.92 lakh vs Rs. 1,204.14 lakh.

Outlook and guidance

• Springs turnover was projected to grow 25% in FY06, with the division’s business projected to grow 20%; industry growth expectation was 15%.

• Tea prices were expected to stabilise or improve by Q2; increased overall availability and reduced exports remained price pressures, particularly for plain teas.

• Coffee outlook was supported by expected global supply shortfalls; insufficient irrigation water, delayed blossom showers, stem borer damage and rupee strength could constrain production or export returns.

• Laminates priorities included productivity, cost reduction, export-market development and expanding outsourced trading with value-added products.

• Tanzania estate expansion through outsourcing or acquisition was under consideration, alongside continued development of organic tea and export sales.