Uno Minda (532539) Q4 07/08 earnings summary

Executive summary

• FY07/08 net sales rose 3.37% to Rs 39,610 lakh; PAT increased 16.17% to Rs 1,572 lakh, while PBT declined to Rs 1,977 lakh from Rs 2,136 lakh.

• Performance held up amid weaker two- and three-wheeler markets; new battery, blow-moulded parts and Valeo joint-venture operations broadened growth opportunities.

Financial highlights

• Net sales were Rs 39,610 lakh versus Rs 38,661 lakh; gross sales were Rs 45,908 lakh versus Rs 44,413 lakh.

• Cash operating profit rose to Rs 3,690 lakh from Rs 3,488 lakh; PBT fell to Rs 1,977 lakh from Rs 2,136 lakh.

• PAT increased to Rs 1,572 lakh from Rs 1,354 lakh; EPS was Rs 14.67 versus Rs 12.58.

• Financial costs increased to Rs 1,151 lakh from Rs 510 lakh; depreciation rose to Rs 1,712 lakh from Rs 1,351 lakh.

Outlook and guidance

• Battery operations at Pantnagar were expected to reach Rs 3,500 lakh business and 10% market share in FY09/10; OEM orders and letters of intent had been received.

• Valeo Minda expected commercial starter-motor and alternator production in July 2008; Bangalore plastic-parts SOP for Toyota Innova Root Duct Assembly was also expected in July 2008.

• Long-term automotive-market prospects were viewed positively, supported by India’s role as a hub for two-wheelers and small cars and lower 2008 excise duties.