TVS Holdings (520056) Q4 05/06 earnings summary

Executive summary

• Standalone FY2005-06 sales reached ₹62,927.07 lakh, up 17% YoY; PBT rose 39% to ₹10,631.48 lakh.

• Record export sales and growth in both brakes and die casting supported results; planned capacity additions target customer demand and export orders.

• Consolidated PAT was ₹17,052.48 lakh, including ₹12,089.34 lakh attributable to the parent; consolidated EPS was ₹63.74.

Financial highlights

• Standalone total income ₹67,460.38 lakh vs ₹56,882.51 lakh; EBITDA ₹14,110.83 lakh vs ₹10,159.18 lakh.

• Standalone PBT ₹10,631.48 lakh vs ₹7,633.35 lakh; PAT ₹7,446.75 lakh vs ₹5,326.00 lakh, before ₹84.67 lakh tax relating to earlier years.

• Basic and diluted EPS ₹39.26 vs ₹28.08; gross sales ₹75,401.12 lakh, less excise duty of ₹12,474.05 lakh.

• Operating cash flow ₹4,629.73 lakh vs ₹5,597.79 lakh; investing cash outflow ₹4,943.35 lakh, with closing cash and bank balances of ₹1,478.29 lakh.

Outlook and guidance

• FY2006-07 domestic volume outlook: medium/heavy commercial vehicles +8%, passenger vehicles +10%, and two-wheelers +15%; US Class 8 trucks +1.5% and European heavy trucks +2%.

• Proposed FY2006-07 investment: ₹49 crore in brakes and ₹75 crore in die casting; Jamshedpur assembly plant investment of ₹6 crore, with operations expected from 1 Jan 2007.

• Mahindra City SEZ plant approvals were obtained; construction was planned during FY2006-07, with export tax benefits expected to support competitiveness.