Adani Enterprises (ADANIENT) Q4 97/98 earnings summary

Executive summary

• FY1997-98 turnover rose 50.47% to Rs. 241,777.53 lacs and profit after tax increased to Rs. 6,251.01 lacs, despite margin pressure from weak markets and intense competition.

• International trade rankings remained strong: first in trade turnover and foreign-exchange earnings, according to the directors’ report.

Financial highlights

• Sales and other income reached Rs. 241,777.53 lacs, versus Rs. 160,681.53 lacs in FY1996-97; gross profit before depreciation, interest and tax was Rs. 8,575.42 lacs.

• Profit before tax was Rs. 6,224.98 lacs, versus Rs. 5,391.95 lacs; profit after tax was Rs. 6,251.01 lacs, versus Rs. 5,389.13 lacs, including Rs. 27.49 lacs of prior-year excess tax provision written back.

• Proposed equity dividend was Rs. 3 per share; a Rs. 183.86 lacs interim preference dividend was paid, with a further Rs. 5.55 lacs preference dividend recommended.

Outlook and guidance

• Directors aimed to exceed the six-year average annual growth rates of 166.16% in turnover and 111.01% in profit during coming years.

• Mundra Port operations were expected to begin in phases from the quarter ending September 1998; the Anjar ~55 MW naphtha power project and Mundra industrial park remained under development.