Anant Raj Limited (515055) Q4 98/99 earnings summary

Executive summary

• FY ended March 31, 1999 was marked by a net loss, weak tile sales, low plant utilization, and a substantial one-time depreciation adjustment; accumulated losses exceeded paid-up capital and free reserves.

• Ceramic tiles remained the principal operating business; the LPG unit had not commenced production.

Financial highlights

• Sales and other income were Rs. 1,794.26 lacs vs Rs. 1,900.75 lacs in FY 1997-98; ceramic tile sales were Rs. 1,051.36 lacs vs Rs. 1,117.78 lacs.

• Loss before tax was Rs. 1,417.82 lacs; loss after tax was Rs. 1,425.10 lacs, before prior-year adjustments that brought the loss available for appropriation to Rs. 1,950.79 lacs.

• Financial-institution claims of Rs. 1,480.40 lacs were charged to the year; the accounts also included Rs. 649.87 lacs of excise duty paid under the Kar Vivad Samadhan Scheme.

Outlook and guidance

• Tile-unit presses, kilns, and other equipment required replacement, upgrading, or modification; management linked aging plant to poor utilization.

• Efforts were continuing to grow exports, particularly in the Middle East, Australia, and Southeast Asia; future R&D aimed to meet international product standards.

• The LPG manufacturing unit had yet to begin production.