Ambika Cotton Mills (AMBIKCO) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 total income rose 26.82% YoY to Rs. 8,325.59 lakh; gross profit increased 85.31% to Rs. 1,175.95 lakh.

• Improved performance reflected a shift in product mix, resource utilization and the introduction of compact yarn production.

• Directors recommended a 16% dividend on equity shares.

Financial highlights

• Sales were Rs. 8,159.86 lakh versus Rs. 6,498.89 lakh; other income rose to Rs. 165.73 lakh from Rs. 66.15 lakh.

• Profit before tax was Rs. 829.06 lakh versus Rs. 334.85 lakh; profit after tax rose to Rs. 815.06 lakh from Rs. 325.48 lakh.

• Export turnover reached Rs. 6,247.39 lakh, up 21.87% YoY, and represented 76.56% of total turnover versus 78.88%.

• Cash from operating activities was Rs. 386.04 lakh; cash and cash equivalents closed at Rs. 202.70 lakh versus Rs. 17.15 lakh.

Outlook and guidance

• Management was optimistic over the medium to long term, citing modernization, product-mix changes, cost control, wind-based captive power and cordial industrial relations.

• A proposed wind-energy project was expected to meet part of energy needs and substantially reduce energy costs upon completion.