Uno Minda (532539) Q4 04/05 earnings summary

Executive summary

• FY2004-05 gross sales rose 27.30% YoY to Rs. 22,488.88 lacs; profit after tax increased 37.57% to Rs. 1,021.54 lacs.

• Automotive horn manufacturing was transferred to a joint venture effective February 1, 2005; switches and lighting remained the principal product lines.

Financial highlights

• Net sales, after excise duty, were Rs. 19,626.19 lacs vs. Rs. 15,384.41 lacs in FY2003-04; gross sales were Rs. 22,488.88 lacs vs. Rs. 17,665.44 lacs.

• Cash operating profit was Rs. 2,472.23 lacs vs. Rs. 1,857.33 lacs; PBT was Rs. 1,551.97 lacs vs. Rs. 1,051.16 lacs.

• PAT was Rs. 1,021.54 lacs vs. Rs. 742.57 lacs; EPS was Rs. 9.43 vs. Rs. 6.78.

• Recommended equity dividend of Rs. 2.50 per share, or 25%, vs. Rs. 2.00 per share; proposed preference dividend remained 9%.

• Other income included a Rs. 142.50-lac gain on slump sale of an undertaking; reported PAT includes this item.

Outlook and guidance

• Domestic automotive markets were expected to grow at 10% annually over the next decade; export sourcing opportunities were seen in ASEAN and Europe.

• PT Minda Asean Automotive in Indonesia was expected to begin commercial production in November 2005, producing switches, lamps and horns.

• Quality, value engineering and productivity programs, including 5-S, TPM, Kanban and Poka-Yoke, were identified as priorities for global competitiveness.