Balkrishna Industries (502355) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001 turnover and other income rose 24% YoY to Rs.168.23 crore; gross profit fell to Rs.10.82 crore from Rs.14.78 crore and PAT to Rs.2.44 crore from Rs.7.24 crore.

• Paper and tyre output increased, but oversupply, price pressure, weaker domestic tyre demand and lower European export realisations weighed on profitability.

Financial highlights

• Sales and related income was Rs.166.40 crore versus Rs.133.26 crore; other income was Rs.1.83 crore versus Rs.1.86 crore.

• PBT was Rs.2.61 crore versus Rs.8.31 crore; tax provision was Rs.0.17 crore versus Rs.1.07 crore; PAT was Rs.2.44 crore versus Rs.7.24 crore.

• Interest expense rose to Rs.4.58 crore from Rs.3.11 crore; depreciation rose to Rs.8.21 crore from Rs.6.47 crore.

Outlook and guidance

• Paper division reported full capacity utilisation so far in FY 2001-02 from aggressive marketing and product improvements; performance was expected to improve significantly.

• Paper modernisation and debottlenecking, estimated at Rs.8.50 crore, targets capacity of 42,000 MT from 36,000 MT; further upgrades were expected by Dec 2001.

• A 3.3 MW captive power plant, estimated at Rs.4 crore, was targeted for commissioning by Mar 2002; tyre debottlenecking spend of Rs.4 crore was planned.

• Specialised textile-processing machinery costing an estimated Rs.13.25 crore was planned for FY 2001-02 to widen products and improve realisations.