Arman Financial Services (ARMANFIN) Q4 98/99 earnings summary

Executive summary

• FY99 operating income was Rs 1,64,50,454 versus Rs 1,69,14,985; profit after tax was Rs 8,55,883 versus Rs 15,95,303.

• Operations were maintained through a difficult year for the economy and NBFC sector; two-wheeler financing began and received an encouraging response.

Financial highlights

• Profit before tax was Rs 15,05,883 versus Rs 23,70,303; tax provision was Rs 6,50,000 versus Rs 7,75,000.

• Non-cash charges were Rs 98,74,445 versus Rs 86,50,092, including Rs 32,82,489 of bad debts written off and Rs 42,47,131 of lease equalisation.

• No dividend was recommended; Rs 2,00,000 was transferred to general reserve and Rs 35,67,563 carried forward.

• Total assets were Rs 6,45,32,637 at 31 March 1999 versus Rs 6,37,45,629 a year earlier.

Outlook and guidance

• FY2000 prospects were linked to industrial recovery, infrastructure development, improving liquidity and softer interest rates; management expected consumer, two-wheeler and industrial finance demand to pick up.

• Two-wheeler financing was set to remain a strategic focus, with plans to develop a niche in consumer finance.