The Bombay Burmah Trading Corporation (501425) Q4 05/06 earnings summary

Executive summary

• FY06 gross income rose 17% to Rs. 18,935.90 lakh; profit before tax increased 27% to Rs. 986.73 lakh and profit after tax to Rs. 916.40 lakh.

• Results improved despite higher input costs, foreign-currency liability effects and pressure in tea, coffee and laminates; expansion and restructuring were expected to support future performance.

Financial highlights

• Standalone net sales were Rs. 17,028.03 lakh and other income Rs. 1,907.87 lakh; total income was Rs. 18,935.90 lakh versus Rs. 16,186.08 lakh in FY05.

• Standalone profit after tax was Rs. 916.40 lakh versus Rs. 675.27 lakh; basic and diluted EPS rose to Rs. 6.57 from Rs. 4.84.

• Consolidated net sales were Rs. 23,007.57 lakh; profit after minority interest was Rs. 4,879.66 lakh versus Rs. 3,669.92 lakh, and EPS was Rs. 34.97 versus Rs. 26.30.

• Recommended dividend increased to 25% (Rs. 2.50 per share) from 20% (Rs. 2 per share).

Outlook and guidance

• Tea was expected to perform better from productivity, quality, export and direct-sales initiatives; expanded laminate and springs facilities and healthcare were expected to contribute during FY07.

• Springs outlook targeted growth above 50% in FY07, supported by added capacity, new orders and Front Fork Suspension Springs; full benefits depend on stabilising expanded operations.

• Management expected laminate growth opportunities from housing, construction and exports; the Rudrapur plant was expected to ease capacity and delivery constraints when production began.