Bajaj Steel Industries (BAJAJST) Q4 03/04 earnings summary

Executive summary

• FY04 sales and other income reached Rs. 975.2m versus Rs. 777.6m; PBT rose to Rs. 31.8m from Rs. 6.8m and PAT to Rs. 30.1m from Rs. 6.8m.

• Performance improved, but inadequate working capital constrained operations; expansion continued to be a priority, and no dividend was recommended.

Financial highlights

• Revenue was Rs. 975.2m, including Rs. 898.9m sales and Rs. 68.2m processing charges; other income was Rs. 8.1m.

• PBDIT was Rs. 75.2m versus Rs. 51.1m; interest was Rs. 26.8m versus Rs. 27.3m, and depreciation was Rs. 16.6m versus Rs. 17.0m.

• PBT was Rs. 31.8m versus Rs. 6.8m; tax provision was Rs. 1.7m versus nil, and PAT was Rs. 30.1m versus Rs. 6.8m.

• Materials cost was Rs. 543.4m, excise duty Rs. 112.2m, and personnel costs Rs. 54.8m; prior-year figures were Rs. 449.0m, Rs. 89.4m, and Rs. 44.4m, respectively.

Outlook and guidance

• First-quarter sales were Rs. 226.43m versus Rs. 174.19m in the prior-year period; management aimed to improve performance further.

• Expansion was expected to continue, with an application planned to increase working-capital limits from bankers to address constraints on operations.