Alok Industries (ALOKINDS) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 17% YoY to Rs.196.71 crore; profit after tax increased to Rs.10.22 crore from Rs.6.23 crore.

• Expansion across weaving, knitting and processing was completed, positioning the business to pursue garment-export growth and higher fabric turnover.

Financial highlights

• Total income was Rs.197.35 crore versus Rs.168.00 crore; profit before tax reached Rs.11.31 crore versus Rs.6.99 crore.

• Net interest rose to Rs.12.07 crore from Rs.8.30 crore; depreciation increased to Rs.3.35 crore from Rs.2.47 crore.

• Capital expenditure additions, including work in progress and unallocated expenditure, totalled Rs.43.02 crore.

• Proposed equity dividend was 20%, with Rs.2.21 crore payout; preference dividend payout was Rs.0.78 crore, subject to shareholder approval.

• Operating cash flow was negative Rs.24.22 crore, while financing cash flow was Rs.72.39 crore; cash and equivalents closed at Rs.4.32 crore.

Outlook and guidance

• Fabric turnover was expected to rise substantially as the completed process house, knitting projects and capacity expansions began contributing.

• Modern facilities and improved delivery capability were expected to support gradual export growth and stronger profitability.

• Lower excise duties were expected to improve yarn-industry margins in coming years.