APAR Industries (APARINDS) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales fell ~12% amid sanctions-related weakness in Conductors and broader industrial recession; net profit rose ~12% on lower raw-material and interest costs and tighter operating-expense control.

• The amalgamation of Apar Limited’s Industrial Business was reflected retrospectively from 1 April 1997; the scheme became operative on 19 April 1999.

Financial highlights

• Gross income was Rs 4,536.71 million versus Rs 5,162.33 million; sales of goods and services were Rs 4,502.71 million versus Rs 5,142.82 million.

• Profit before interest, depreciation/amortisation and tax was Rs 449.85 million versus Rs 440.25 million; PBT was Rs 194.09 million versus Rs 174.89 million.

• Net profit was Rs 174.09 million versus Rs 155.39 million; tax provision was Rs 20.00 million versus Rs 19.50 million.

Outlook and guidance

• Synthetic Rubber turnover and profitability were expected to improve; Ankleshwar NBR modernization was expected to lift annual capacity from 7,200 MT to 10,000 MT, with completion targeted the following year.

• Speciality Oils market share was increasing; Dadra and Nagar Haveli facilities were expected to begin operating in FY1999-2000, while Transformer Oils demand remained stagnant.

• Conductors’ order position improved after partial lifting of sanctions; second-half activity and exports of Conductors, NBR and Transformer Oils were expected to improve.