Alicon Castalloy (531147) Q4 98/99 earnings summary

Executive summary

• FY1999 sales and other income reached Rs 1,910.08 lakh, up 39.35% YoY; pre-tax profit rose 42% to Rs 113.96 lakh.

• Production began on aluminium castings for newly developed four-stroke two-wheeler engines, with encouraging customer response.

Financial highlights

• Sales and conversion income totaled Rs 1,903.02 lakh versus Rs 1,367.18 lakh in FY1998; other income was Rs 7.07 lakh versus Rs 3.76 lakh.

• Profit after tax was Rs 101.99 lakh versus Rs 71.86 lakh; proposed dividend remained 10%, totaling Rs 30 lakh.

• Operating profit before interest and depreciation rose to Rs 284.31 lakh from Rs 237.43 lakh; financial expenses fell to Rs 96.69 lakh from Rs 102.89 lakh.

• Prior-period adjustment added Rs 12.85 lakh, relating to a sales-tax set-off from the previous year.

Outlook and guidance

• Diversification into castings for four-stroke two-wheeler engines was expected to improve performance in FY2000.

• Y2K compliance steps were underway, targeted for completion by September 1999; no operational impact was anticipated, while costs were still being evaluated.