Ambika Cotton Mills (AMBIKCO) Q4 98/99 earnings summary

Executive summary

• FY99 total income rose 16.09% to Rs. 4,331.53 lakh, while gross profit declined 6.86% to Rs. 442.09 lakh amid industry cost and demand pressures.

• Export turnover increased 43.30% to Rs. 2,799.80 lakh; an 18% dividend was recommended for the year.

Financial highlights

• Sales were Rs. 4,292.37 lakh vs. Rs. 3,704.53 lakh in FY98; other income was Rs. 39.16 lakh vs. Rs. 26.69 lakh.

• PBT was Rs. 327.44 lakh vs. Rs. 362.10 lakh; PAT was Rs. 310.44 lakh vs. Rs. 342.10 lakh.

• Raw materials consumed increased to Rs. 2,908.43 lakh from Rs. 2,280.72 lakh; manufacturing, administrative and other expenses were Rs. 807.42 lakh vs. Rs. 786.61 lakh.

Outlook and guidance

• Commercial production at the new Unit II near the existing plant was expected to begin during FY00, supporting existing operations.

• Management expected performance to improve considerably if current cotton-industry conditions changed.