Usha Martin (517146) Q4 04/05 earnings summary

Executive summary

• Standalone net sales rose 50% YoY to Rs 11,898.7 Mn; net profit increased 163% to Rs 408.7 Mn. Consolidated turnover reached Rs 15,502.6 Mn and profit after tax was Rs 500.8 Mn.

• Export turnover grew 105% to Rs 4,641.6 Mn; consolidated international business represented 46% of turnover.

Financial highlights

• Standalone PBT was Rs 582.8 Mn versus Rs 232.7 Mn, up 150% YoY; net profit was Rs 408.7 Mn versus Rs 155.2 Mn, up 163%.

• Consolidated net turnover was Rs 15,502.6 Mn, up 46%; PBT was Rs 706.8 Mn versus Rs 245.1 Mn, up 169%, including a Rs 46.7 Mn debt-restructuring gain.

• Consolidated profit after tax and minority interest was Rs 500.8 Mn versus Rs 163.6 Mn; EPS was Rs 13.53 versus Rs 4.42.

• Board recommended a 30% equity dividend; standalone EPS was Rs 11.04 versus Rs 4.19.

Outlook and guidance

• Priorities include lowering operating costs, securing key inputs, improving product mix, and meeting customer needs through R&D, quality, wider geographic reach and prompt delivery.

• Management expected further improvement from UM Cables and overseas subsidiaries; several subsidiaries expected to sustain improved performance in FY06.

• Steel Division targeted the TPM Consistency Award in FY06; Wire & Wire Rope Division was pursuing TPM certification.