Ambika Cotton Mills (AMBIKCO) Q4 01/02 earnings summary

Executive summary

• FY02 total income rose 4.97% YoY, but gross profit fell 20.13% as lower cotton-textile margins offset higher productivity.

• Export turnover grew 5.37% YoY and represented 78.88% of turnover; a 12% dividend was recommended.

Financial highlights

• Total income was Rs 6,565.05 lakh; sales were Rs 6,498.89 lakh versus Rs 6,215.02 lakh in FY01.

• Gross profit was Rs 634.58 lakh versus Rs 794.50 lakh; PBT was Rs 334.85 lakh versus Rs 524.75 lakh.

• PAT was Rs 325.48 lakh versus Rs 491.75 lakh; proposed dividend was 12% on equity shares.

• Export turnover was Rs 5,126.35 lakh, up 5.37% YoY; exports were 78.88% of turnover versus 78.28%.

Outlook and guidance

• Planned Rs 1,140 lakh investment in compact-spinning yarn and modernization of Units I and II; financing planned via Rs 700 lakh TUFS term loan and internal accruals.

• Compact spinning was intended to broaden export reach, including entry into European markets.