Timken India (522113) Q4 2010 earnings summary

Executive summary

• 2010 marked a strong recovery: net sales reached Rs 4,629 million, up 46% YoY, with higher exports and domestic demand; Jamshedpur operated at capacity.

• PBT rose 59% to Rs 713 million, driven by volume gains and cost-management improvements; PAT was Rs 511 million.

Financial highlights

• Total income was Rs 4,820 million vs Rs 3,305 million in 2009; net sales were Rs 4,629 million vs Rs 3,160 million.

• PAT increased to Rs 511 million from Rs 325 million; EPS was Rs 8.01 vs Rs 5.10.

• Export sales rose 82% to Rs 1,439 million; domestic sales grew 34% to Rs 3,190 million.

Outlook and guidance

• Strong opening order book supported further planned investment in manufacturing capacity and customer-service capabilities.

• Expansion project to add ~2.4 million races annually for tapered roller bearings up to 8 inches; work scheduled for Q1 2011, commercial production expected Q2 2011, with estimated investment of Rs 360 million.

• 2011 priorities include off-highway OEM and aftermarket reach, services growth, associate development, and manufacturing and supply-chain investment.