Usha Martin (517146) Q4 02/03 earnings summary

Executive summary

• FY03 standalone net turnover was Rs 736.72 crore, PBT Rs 13.35 crore and PAT Rs 8.22 crore; consolidated PAT was Rs 3.24 crore.

• Steel and wire ropes offset part of the sharp cable downturn; management expected project benefits and improved performance from FY05.

Financial highlights

• Standalone net turnover fell to Rs 736.72 crore from Rs 823.03 crore; PBT rose to Rs 13.35 crore from Rs 8.06 crore and PAT to Rs 8.22 crore from Rs 6.03 crore.

• Consolidated net turnover was Rs 1,033.30 crore versus Rs 1,147.40 crore; PAT after minority interest was Rs 3.24 crore versus Rs 4.92 crore.

• Standalone interest expense was Rs 83.09 crore, depreciation Rs 65.04 crore and deferred tax charge Rs 4.18 crore.

• Proposed equity dividend was 10% on Rs 5 face-value shares; dividend and tax appropriation totaled Rs 20.88 million.

Outlook and guidance

• Management expected positive growth in wire and wire ropes in FY04, with the Dubai rope plant due for progressive commissioning by Q3 FY04.

• DRI, 10 MW captive power, heat-treatment, bright-bar, conveyor-cord and speciality-wire projects were expected to contribute fully from FY05.

• Cable demand was not expected to recover in the near term; specialty wire and conveyor cord were scheduled for commissioning in October 2003, while cable production could resume if demand revived.