Timken India (522113) Q4 2004 earnings summary

Executive summary

• 2004 net sales rose 23% to Rs 266.93 crore; PBT increased 54% to Rs 50.89 crore and PAT reached Rs 32.99 crore.

• Higher volumes, improved export pricing, plant efficiency and lower operating and administrative costs supported the stronger results.

• Production grew 19% without major investment, while the Jamshedpur plant operated at full capacity.

Financial highlights

• Net sales, excluding other income, increased from Rs 218 crore in 2003 to Rs 267 crore in 2004; total P&L income was Rs 277.76 crore.

• EBIT was Rs 51.79 crore versus Rs 34.03 crore; net interest expense was Rs 0.90 crore versus Rs 0.95 crore.

• PAT was Rs 32.99 crore versus Rs 23.14 crore; EPS rose to Rs 5.18 from Rs 3.14.

• Other income was Rs 10.83 crore, including Rs 3.10 crore of net DEPB export incentives and Rs 1.54 crore of liabilities no longer required.

Outlook and guidance

• 2005 growth prospects were described as encouraging in domestic and export markets, with capacity expansion requiring continued attention.

• The export-only cone project was expected to be completed by end-Q1 2007 and generate Rs 21 crore in sales when all three cells are fully operational.

• Priorities for 2005 included recovering higher input costs, maintaining global quality standards, ensuring on-time materials and customer delivery, and managing receivables and inventory.