Tube Investments of India (TIINDIA) Q4 03/04 earnings summary

Executive summary

• FY03/04 turnover rose 5% YoY to Rs.1,257.34 cr; PAT increased 80% to Rs.82.49 cr amid sluggish cycles demand, rising steel costs and stronger auto demand.

• PBT reached Rs.105.30 cr, including Rs.24.76 cr from renouncing insurance-subsidiary rights shares; PBT before this non-recurring item was Rs.80.54 cr.

• Strategic priorities included higher-value products, exports, productivity, customer service and stronger in-house capacity.

Financial highlights

• Sales including excise duty rose to Rs.1,257.34 cr from Rs.1,197.13 cr; net sales after excise were Rs.1,157.08 cr versus Rs.1,086.57 cr.

• PBT before non-recurring item was Rs.80.54 cr versus Rs.62.45 cr; reported PBT was Rs.105.30 cr versus Rs.62.45 cr.

• PAT was Rs.82.49 cr versus Rs.45.89 cr; basic and diluted EPS rose to Rs.44.66 from Rs.19.46.

• Cash from operating activities was Rs.133.60 cr versus Rs.79.39 cr; net cash used in investing activities was Rs.49.10 cr.

Outlook and guidance

• Full benefits from ending tube outsourcing and expanding in-house capacity were expected in coming years; capital investment in R&D was planned for new products, processes and quality.

• Growth plans focused on value-added products, higher-throughput customers, global-quality standards and customised solutions; export presence was to be sustained despite currency volatility.

• Management expected cycle demand to improve with rising living standards and interest in value-added features; auto-sector growth was expected to continue for the foreseeable future.