West Coast Paper Mills (500444) Q4 02/03 earnings summary

Executive summary

• Record production, turnover, gross profit and net profit in FY 2002-03; higher volumes, value-added mix and cost efficiencies supported growth.

• Paper operations strengthened, while telecom cables remained pressured by weak demand and uneconomic tender prices.

Financial highlights

• Standalone sales were Rs 518.58 cr vs Rs 476.93 cr in FY 2001-02; net profit rose to Rs 36.04 cr from Rs 31.86 cr.

• Gross profit reached Rs 62.24 cr, up 26%; PBT was Rs 44.01 cr and EPS Rs 40.31.

• Consolidated sales were Rs 564.11 cr and net profit Rs 36.53 cr; consolidated EPS was Rs 40.85.

• Recommended dividend was Rs 8.50 per equity share; dividend payout represented 23.78% of standalone profit after tax.

Outlook and guidance

• FY 2003-04 results were expected to improve, supported by stronger paper demand, value-added products and expansion projects; first-quarter paper output rose to 40,469 MT from 31,326 MT.

• A further 100 lac seedlings were planned for distribution in FY 2003-04; wood shortages and drought-related supply pressure could lift input costs.

• 14.5 MW and 15.5 MW turbine projects were expected to commission during FY 2003-04; captive power was projected to reduce dependence on grid and furnace oil.

• A 14.5 MW power plant was expected to lower power and fuel costs by Rs 8 cr annually.