Wendt (India) (505412) Q4 02/03 earnings summary

Executive summary

• FY03 sales rose 23% and profit before tax (PBT) increased 37%; export sales grew 48%, supported by stronger demand and new markets.

• Product development, expanded distribution, quality initiatives and software services supported broader customer and market coverage.

Financial highlights

• Sales, including machining charges, were Rs 2,531 lakh vs Rs 2,055 lakh; other income was Rs 71 lakh vs Rs 55 lakh.

• PBT was Rs 682 lakh vs Rs 498 lakh; profit after tax was Rs 464.19 lakh vs Rs 355.55 lakh.

• EPS was Rs 46.42 vs Rs 35.56; current and deferred tax provisions were Rs 198 lakh and Rs 20.89 lakh, respectively.

• Operating cash flow was Rs 440.03 lakh vs Rs 286.66 lakh; net cash increased Rs 51.66 lakh during FY03.

Outlook and guidance

• Export growth is targeted to accelerate through international connections, closer work with Wendt GmbH and market-specific products manufactured in India.

• Export team staffing was being strengthened; ISO 14000 certification was targeted for FY04 after most requirements were put in place.