Anant Raj Limited (515055) Q4 02/03 earnings summary

Executive summary

• FY2002-03 sales and other income rose to Rs 2,128.81 lakh from Rs 1,812.11 lakh; profit before tax was Rs 139.67 lakh versus Rs 138.22 lakh before prior-year write-backs and adjustments.

• Expansion doubled annual production capacity to 24 lakh sq. m.; the new plant began commercial production on January 1, 2003.

• Reported profit after tax of Rs 390.31 lakh included a Rs 304.77 lakh investment allowance reserve write-back and a Rs 49.99 lakh deferred-tax adjustment.

Financial highlights

• Sales and other income: Rs 2,128.81 lakh versus Rs 1,812.12 lakh; sales alone were Rs 2,049.62 lakh versus Rs 1,737.53 lakh.

• Profit before depreciation increased to Rs 258.32 lakh from Rs 224.28 lakh; depreciation was Rs 118.65 lakh versus Rs 86.06 lakh.

• Profit before tax was Rs 139.67 lakh versus Rs 138.22 lakh; reported profit after tax was Rs 390.31 lakh versus Rs 78.75 lakh.

• Power consumption expense increased to Rs 686.71 lakh from Rs 499.94 lakh; manufacturing and other expenses were Rs 1,641.35 lakh versus Rs 1,354.67 lakh.

Outlook and guidance

• Better profitability was expected in the ongoing year as expansion benefits and economies of scale began to contribute.

• Higher volumes were identified as key to sustaining profitability amid rising input costs and lower per-unit realizations.

• Export efforts targeted the Middle East, Australia, Africa and South East Asia.