Wendt (India) (505412) Q4 06/07 earnings summary

Executive summary

• FY07 sales rose 22% YoY to Rs 5,074 lakh; PBT increased 21% to Rs 1,310 lakh and PAT rose 22% to Rs 871 lakh.

• Domestic growth and broader product applications supported results, while exports remained near the prior-year level; FY07 exports were 26% of sales.

• Consolidated revenue reached Rs 5,275 lakh, PBT Rs 1,351 lakh and PAT Rs 909 lakh; consolidated EPS was Rs 45.45.

Financial highlights

• Net sales were Rs 5,062 lakh versus Rs 4,148 lakh in FY06; other income was Rs 155 lakh versus Rs 100 lakh.

• PBT was Rs 1,310 lakh versus Rs 1,079 lakh; PAT was Rs 871 lakh versus Rs 716 lakh.

• Basic and diluted EPS rose to Rs 43.56 from Rs 35.78; proposed dividend was 175%, or Rs 17.50 per Rs 10 share.

Outlook and guidance

• FY08 performance was expected to improve, supported by industrial growth, infrastructure, power and housing investment, and expanding application areas.

• Export expansion remained a focus, including new markets in Southeast Asia and the Middle East, alongside continued supply to Wendt Group companies.

• Growth plans included expanding machine building and refurbishment, precision components and materials surface-improvement services.

• Thailand operations were expected to broaden service reach to Indonesia, Vietnam and Malaysia; phase II plans included manufacturing grinding wheels and tools for ASEAN markets.