Trident (TRIDENT) Q4 06/07 earnings summary

Executive summary

• FY ended Mar 31, 2007 net sales rose 10% to Rs 8,165.9m and operating profit rose 13% to Rs 1,794.1m; PAT fell to Rs 409.4m from Rs 568.2m.

• Profitability was pressured by rupee appreciation and higher agro-input costs; net profit margin declined to 5% from 8%.

Financial highlights

• Net sales Rs 8,165.9m vs Rs 7,436.4m; PBIDT Rs 1,794.1m vs Rs 1,588.2m; PBT Rs 614.1m vs Rs 720.1m.

• PAT Rs 409.4m vs Rs 568.2m; EPS Rs 2.11 vs Rs 2.93; cash EPS Rs 6.46 vs Rs 6.35.

• Export sales increased 4% to Rs 4,352.2m and represented 53% of net sales.

Outlook and guidance

• Paper expansion of 275 tpd paper and 225 tpd pulp capacity was at an advanced implementation stage; operations targeted for Q3 FY08.

• Terry towel project, including 60 new and 24 replacement looms, targeted completion in Q4 FY08; 96,000-spindle yarn expansion targeted full operation in Q2 FY10.

• Outlook described as optimistic, backed by manufacturing processes, investment and human capital; no numerical earnings guidance stated.