Anant Raj Limited (515055) Q4 03/04 earnings summary

Executive summary

• FY2003-04 sales and other income reached Rs. 290,700,259; profit before tax was Rs. 7,736,535, lower than the prior-year Rs. 13,966,743 before write-backs and adjustments.

• Expansion continued under the BIFR-approved rehabilitation plan, funded by a preferential share issue, internal accruals and an SBI term loan sanction.

Financial highlights

• Net sales were Rs. 286,610,576 versus Rs. 182,141,575; other income was Rs. 4,089,683 versus Rs. 7,615,892.

• Profit after tax was Rs. 6,161,396 versus Rs. 39,030,653; prior-year results included a substantial investment-allowance reserve adjustment.

• Manufacturing and other expenses rose to Rs. 257,111,769 from Rs. 164,134,647; power costs were Rs. 119,973,036 versus Rs. 68,671,444.

• Finance expenses increased to Rs. 12,098,612 from Rs. 2,512,131, including interest of Rs. 10,549,464 and exchange-fluctuation loss of Rs. 1,139,148.

Outlook and guidance

• Further capacity expansion was expected to support economies of scale and improve profitability; the expansion was to be funded by share proceeds, internal accruals and an SBI term loan sanction.

• Ceramic-tile demand was expected to benefit from housing, infrastructure and construction activity, while higher volumes were identified as essential to sustaining profitability.