Bajaj Steel Industries (BAJAJST) Q4 97/98 earnings summary

Executive summary

• FY ended 31 Mar 1998 sales and other income were Rs 724.75m; PBT fell to Rs 11.11m from Rs 41.09m and PAT to Rs 7.71m from Rs 24.89m.

• Operations continued through an economy-wide recession; plant and machinery additions supported expansion, additional facilities and technology upgrades.

Financial highlights

• Sales were Rs 698.79m versus Rs 722.63m YoY; other income rose to Rs 25.96m from Rs 4.15m, including Rs 21.66m processing charges.

• PBT was Rs 11.11m versus Rs 41.09m; PAT was Rs 7.71m versus Rs 24.89m; tax provision was Rs 3.40m versus Rs 16.20m.

• Interest expense rose to Rs 25.09m from Rs 14.86m; depreciation was Rs 22.37m versus Rs 13.50m.

Outlook and guidance

• First 2 months of FY 1998/99 sales were Rs 62.98m versus Rs 120.92m in the same period a year earlier.

• Expansion added plant and machinery to meet market demand, provide additional facilities and upgrade technology; export opportunities remained under exploration.