Moser Baer net doubles on cost cuts, prices

CORPORATE SCORECARD

Backed by strong demand and operational efficiencies, optical storage device maker Moser Baer has posted a net profit of Rs 39.72 crore for the fourth quarter ended March 31, 2007, a 100 per cent increase from the corresponding period last year.

The company's revenue in the fourth quarter stood at Rs 550 crore, registering an increase of 3.8 per cent over the fourth quarter last year, and 5.1 per cent on a sequential basis.

According to the company, it was a landmark year for Moser Baer as it saw the optical media business emerging a free-cash business, helped by robust shipments, improved asset turnovers and production efficiencies in the business. The company also profited from the stabilisation of polycarbonate prices, a key ingredient in churning out DVDs.

Added Ratul Puri, executive director, Moser Baer: "This year saw Moser Baer transforming into a multi-technology business organisation. The base optical media business has reverted to normal levels of operating efficiencies, and the company is now set to lead the next-generation demand curve in the blue laser-based products.

Additionally, the entertainment business will allow us to capture higher value addition in the chain, and we will emerge a leader in this highly exciting segment by having brought in the paradigm shift in this industry." EBITDA at Rs 172.58 crore grew 60.8 per cent over the corresponding quarter in the previous year and 5.6 per cent on a sequential basis.

In FY07, the company reported a profit after tax (including deferred tax impacts) of Rs 109.79 crore, recording a 20-fold growth over the net profit in FY06.

Gross revenue for the financial year was Rs 2,074.03 crore, an increase of 19.8 per cent from FY06. The company attributed the performance to robust growth in volumes and capacity expansion during the year.

During the quarter, the company established a wholly owned subsidiary, Moser Baer Investments, which acquired 100 per cent stake in Photovoltaic Holdings and Moser Baer Solar located in the Isle of Man. It also acquired 81 per cent stake in a Dutch Company - O M & T B.V - through one of its subsidiaries in Cyprus.

According to the company, it was expecting to generate revenues in the range of $50-60 million (Rs 246 crore) next year.

The company was also planning to spend $100 million (Rs 410 crore) in capex over the next three years. The company would also aggressively acquire content to take its total catalogue to over 12,000 titles, including over 150 new titles across all languages.

In its guidance for the storage business, the company said it was expecting a three-year CAGR of 25-35 per cent in its revenues, with an EBIDTA margin in excess of 30 per cent. The company plans to spend $40 million (Rs 164 crore) to increase capacity to 3.4 billion discs per annum.

For its photovoltaic business, the company expects the revenue to be in the range of $80-$100 million (Rs 410 crore) next year.