Ambika Cotton Mills (AMBIKCO) Q4 96/97 earnings summary

Executive summary

• FY1996/97 total income grew 15.03% YoY and gross profit grew 9.43%; performance was described as satisfactory amid prolonged cotton-textile recession, though profit and EPS were below offer-document projections.

• Modernization added two Auto Coners during the year, followed by two more Auto Coners and two Auto Leveler Draw Frames; the additions were expected to strengthen exports in the current year.

Financial highlights

• Sales and other income reached Rs 3,791.03 lakh vs Rs 3,295.79 lakh in FY1995/96; gross profit was Rs 586.54 lakh vs Rs 536.00 lakh.

• PBT was Rs 497.51 lakh vs Rs 462.82 lakh; PAT was Rs 437.51 lakh vs Rs 400.82 lakh, after tax provisions of Rs 60 lakh and Rs 62 lakh, respectively.

• Actual total income of Rs 3,791.03 lakh exceeded the Rs 3,600.34 lakh projection, while actual PBT of Rs 497.51 lakh and PAT of Rs 437.51 lakh trailed projections of Rs 688.64 lakh and Rs 542.64 lakh.

Outlook and guidance

• Additional spinning equipment was expected to substantially improve the export base in FY1997/98, alongside related benefits; no quantified forecast was stated.

• Export earnings were Rs 248.50 lakh in FY1996/97 vs Rs 43.59 lakh in FY1995/96; foreign-currency expenditure for capital-goods imports was Rs 150.65 lakh vs Rs 92.45 lakh.