Moser Baer Q2 net profit at Rs.25.972 Crores, up 742%

Moser Baer India Ltd has announced the following Unaudited results for the quarter ended September 30, 2006:

The Company has posted a net profit after taxes of Rs 259.72 million for the quarter ended September 30, 2006 as compared to Rs 30.83 million for the quarter ended September 30, 2005. Total Income has increased from Rs 4050.88 million for the quarter ended September 30, 2005 to Rs 5132.41 million for the quarter ended September 30, 2006.

Industry Outlook:

Strategic Marketing & Decisions (SMD) (estimates global demand for CDR/RW formats to be 13 billion units in 2006, almost static over 2005 level. Consumer demand for the CDR/RW format continues to grow in Asian, Latin American and Middle Eastern markets. There are also certain emerging corporate applications and niche segments like the printable media and Lightscribe, which are seeing a rapid growth in the CDR/RW space.

Meanwhile global CDR/RW supply continues to consolidate through capacity conversions and closure of inefficient capacities around the world. This is helping CDR/RW demand-supply balance return to equilibrium thereby providing a stimulus for firm CDR/RW pricing environment in the medium term. SMD expects shifting consumer preferences, increasing drive penetration and improving price-value proposition to grow the demand for DVDR/RW media to over 6 billion disks per annum in 2006 from 3.9 billion disks in 2005.

Despite the Next Generation format war, SMD believes, that it is the blue lazer technology (BD & HD DVD) that has the potential of significantly mitigating the impact of possible cannibalization of optical media demand by emerging alternate technologies in the long term. While SMD expects 2007 to be the first big year for blue laser based technology, the race has already begun and we should be among the front runners in this next growth phase of the global optical media industry.

"This quarter has placed the company at the threshold of normal levels of operating and financial parameters. An improving pricing cycle in CDR, robust growth in DVDR and subdued PC cost environment are the key enablers. As we now enter the traditionally strong winter season these positive trends should gain momentum, aided by soft PC prices, helping continued expansion of EBITDA margins in subsequent quarters." said Mr Ratul Puri, Executive Director, of the Company said.

Source : Equity Bulls

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