The Bombay Burmah Trading Corporation (501425) Q4 06/07 earnings summary

Executive summary

• FY07 standalone gross income rose 20% YoY to Rs. 22,412 lakh and PBT rose 37% to Rs. 1,352 lakh; consolidated profit after minority interest was Rs. 4,687 lakh, down from Rs. 4,880 lakh.

• Growth reflected stronger plantation realizations, higher springs output, new Uttaranchal laminates production and the acquired healthcare business; the outlook pointed to further growth as expanded capacity stabilizes.

Financial highlights

• Standalone sales were Rs. 22,170 lakh vs. Rs. 18,521 lakh; total income was Rs. 22,412 lakh vs. Rs. 18,729 lakh.

• Standalone PBT was Rs. 1,351.78 lakh vs. Rs. 986.73 lakh; net income was Rs. 1,182.11 lakh vs. Rs. 916.40 lakh.

• Consolidated total income was Rs. 34,518.23 lakh vs. Rs. 30,833.89 lakh; PBT was Rs. 6,045.21 lakh vs. Rs. 7,475.87 lakh and net income after minority interest was Rs. 4,687.11 lakh vs. Rs. 4,879.66 lakh.

• Standalone EPS was Rs. 8.47 vs. Rs. 6.57; consolidated EPS was Rs. 33.59 vs. Rs. 34.97. Proposed dividend increased to 30% (Rs. 3/share) from 25% (Rs. 2.50/share).

• Consolidated other income included Rs. 1,766.19 lakh profit on investment sales and Rs. 2,246.46 lakh dividend income; standalone other income included Rs. 921.81 lakh dividends.

Outlook and guidance

• FY08 tea performance was expected to improve through productivity, higher-value and organic teas, replanting and greater direct sales; the Granum acquisition was expected to support tea performance.

• Uttaranchal laminates was expected to be fully operational during FY08; benefits from expanded operations depend on the businesses stabilizing at their new scale.

• Springs targeted 35% growth in FY08, with planned market shares of 45% in precision springs and 18% in suspension springs; relocated capacity was expected to more than double during FY08.

• A new auto ancillary unit at Uttaranchal was proposed to serve expected auto-sector demand and support profitability.