Alok Industries (ALOKINDS) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total income was Rs.16,800.11 lakh and net profit after tax was Rs.622.90 lakh, compared with Rs.12,059.39 lakh and Rs.601.74 lakh, respectively, in FY1995-96.

• Operations saw moderate growth amid tight money-market conditions, high interest rates, rising input costs and pressure on margins.

Financial highlights

• Sales reached Rs.16,796.86 lakh, up from Rs.12,055.13 lakh; profit before tax was Rs.699.43 lakh, against Rs.601.74 lakh in FY1995-96.

• Net profit after tax was Rs.622.90 lakh after Rs.76.53 lakh provision for MAT; prior-year net profit was Rs.601.74 lakh with no tax provision.

• Net fixed assets were Rs.5,479.01 lakh; net current assets were Rs.4,760.13 lakh at 31 March 1997.

Outlook and guidance

• Navi Mumbai Process House was nearing completion; full production was scheduled shortly, with annual capacity of 201.6 lakh metres of woven fabrics and 2,688 tonnes of knit fabrics.

• Knitting was expected to reach full capacity in FY1997-98; planned weaving modernization adds 25.58 lakh metres annual capacity, with additional knitting expansion under consideration.

• Export growth was a priority; completion of process and knitting projects and weaving modernization was expected to strengthen competitiveness and future earnings.