Trident (TRIDENT) Q4 2003 earnings summary

Executive summary

• FY 2003 net sales were Rs 4,638.1m and net profit Rs 358.6m; annualized growth over the prior 9-month period was 13% for sales and 41% for profit after tax.

• Textiles generated 75% of revenue and paper and chemicals 25%; exports were 45% of revenue, with products sold in 34+ countries.

• A Rs 9,120m expansion program targets textile capacity by July 2004 and pulp, paper, chemical recovery and co-generation operations by early 2006.

Financial highlights

• Net sales Rs 4,638.1m vs Rs 3,068.5m in the prior 9-month period; PBT Rs 479.3m vs Rs 320.6m and PAT Rs 358.6m vs Rs 190.5m.

• EPS was Rs 1.84 vs Rs 0.98; turnover was Rs 5,388.2m and other income Rs 60.9m for FY 2003.

• Exports reached Rs 2,076.3m vs Rs 1,475.7m; growth was 6% on an annualized basis, and exports represented 45% of net sales.

• Cash from operations was Rs 621.2m; investing cash outflow was Rs 713.2m, including Rs 645.7m for fixed assets.

Outlook and guidance

• Textile expansion of Rs 3,000m, including terry towels and yarn, was scheduled to start operations by July 2004, with towel capacity planned at 100m pieces annually.

• Rs 6,120m pulp and paper, chemical recovery and co-generation expansion was targeted for full operation by early 2006.

• Management expected post-quota textile trade liberalization to support exports and projected expansion to raise turnover, profitability and shareholder value over the next few years.