Arman Financial Services (ARMANFIN) Q4 99/00 earnings summary

Executive summary

• FY00 income from operations was Rs 1,41,86,742; profit after tax was Rs 2,24,074, down from Rs 8,55,883 in FY99.

• Strategy shifted away from new corporate-finance exposure toward two-wheeler financing, with management expecting the focus to support future earnings and shareholder value.

Financial highlights

• Income from operations fell to Rs 1,41,86,742 from Rs 1,64,50,454; total income, including other income, was Rs 1,41,86,742.

• Profit before tax was Rs 13,74,074 versus Rs 15,05,883; provision for taxation increased to Rs 11,50,000 from Rs 6,50,000.

• Reported profit after tax was Rs 2,24,074 versus Rs 8,55,883; non-cash charges were Rs 82,33,054 versus Rs 98,74,445.

• Non-cash charges included Rs 41,57,486 in bad-debt and irrecoverable write-offs, Rs 25,36,101 in lease equalization, and Rs 45,700 in NPA provision.

Outlook and guidance

• Two-wheeler financing was identified as the continuing focus, replacing new corporate-finance exposure; the stated aim was improved future earnings and shareholder value.

• Management cited difficult, slow and time-consuming recovery of overdue corporate-sector accounts as a continuing constraint.