The Hindu Business Line : Moser Baer Q1 net dips 22%

MOSER Baer India has posted a 22-per cent dip in net profit for the quarter ended June 2004 at Rs 48.08 crore compared to Rs 61.66 crore in the corresponding period previous year.

During the period, its total income also decreased to Rs 305.48 crore against Rs 312.7 crore in the year-ago period, the company said in a notice to the Bombay Stock Exchange.

In its medium-term revenue guidance, Moser Baer said, "Over the next three years, the company expects to grow its revenues at a compounded annual growth rate (CAGR) of 25 to 35 per cent. Most of the growth in revenue is expected to come from the DVD segment, as recordable and re-writeable DVDs become the mainstay of consumer removable data storage medium."

The gross sales for the first quarter ended June 2004 stood at Rs 309.7 crore compared to Rs 318 crore notched in the same period previous year. "Pricing pressure coupled with temporary build-up of inventory in trade channels has impacted both volumes and realisations. Additionally, change in commercial terms (from f.o.b/c.i.f to d.d.p/d.d.u), initiated in the fourth quarter of 2004, continued during the quarter with few remaining OEM customers, further suppressing volume growth," a statement posted on Moser Baer Web site said.

The company plans to spend $135 million in 2004-05 to increase its capacity to 2.4 billion units.

"In line with the company's strong project management and commercialisation capabilities, this project is expected to commence production in the second half of FY05," it said adding that this is a part of Moser Baer's next phase of expansion, aimed at capturing 20 per cent market share of the global optical storage media industry.

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