Alok Industries (ALOKINDS) Q4 98/99 earnings summary

Executive summary

• FY99 sales rose to Rs.279.65 crore from Rs.196.71 crore; profit after tax reached Rs.14.96 crore versus Rs.10.22 crore.

• Weaving, knitting and processing projects were completed and entered full operations, lifting fabric-division sales to Rs.240.25 crore from Rs.152.77 crore.

• Directors recommended a 20% equity dividend, with a further Rs.2.13 crore payout on preference shares, subject to shareholder approval.

Financial highlights

• Total income was Rs.279.80 crore, up from Rs.197.35 crore; profit before tax was Rs.16.21 crore versus Rs.11.31 crore.

• Operating profit reached Rs.44.70 crore versus Rs.26.95 crore; net interest expense rose to Rs.21.58 crore from Rs.12.07 crore.

• Profit after tax was Rs.14.96 crore versus Rs.10.22 crore; EPS was Rs.8.98 versus Rs.8.80, with FY99 EPS on a pro-rata basis.

• Export sales were Rs.6.10 crore versus Rs.3.17 crore; foreign-exchange earnings were Rs.5.54 crore versus Rs.3.30 crore.

Outlook and guidance

• FY00 was expected to be the first full operating year after project completion, with new capacity expected to contribute significantly to turnover and profit.

• A comfortable order position, increasing enquiries and customer acceptance of new woven and knitted fabrics supported management optimism.

• Plans to expand and modernise weaving, knitting and processing facilities were being developed, with implementation expected by March 2002.

• Domestic demand shifting toward polyester and lower excise duties were identified as potential supports for the yarn division.