Balkrishna Industries (502355) Q4 98/99 earnings summary

Executive summary

• FY99 turnover and other income fell to Rs.111.66 crore from Rs.161.94 crore; profit after tax declined to Rs.7.26 crore from Rs.10.27 crore, with the paper-plant lockout driving the steepest operating setback.

• Tyres and textile processing grew, partly offsetting the paper division’s contraction; a 30% tax-free dividend was recommended.

Financial highlights

• Gross turnover and other income were Rs.111.66 crore vs Rs.161.94 crore; gross profit was Rs.14.88 crore vs Rs.18.47 crore.

• PBT was Rs.8.78 crore vs Rs.12.40 crore; PAT was Rs.7.26 crore vs Rs.10.27 crore, after tax provisions of Rs.1.52 crore and Rs.2.13 crore, respectively.

• Sales and related income totaled Rs.109.77 crore vs Rs.159.60 crore; other income was Rs.1.89 crore vs Rs.2.35 crore.

Outlook and guidance

• Paper modernisation and expansion Scheme V, estimated at Rs.20 crore, is expected to complete in phases by end-2000, lifting capacity from 30,000 to 48,000 tonnes p.a. and improving quality.

• Specialised textile-processing machinery planned over the next 12 months at an estimated Rs.8 crore is intended to widen the product range and improve realisations.

• Tyre exports were expected to improve further; Y2K remediation was expected to finish on time, with compliance costs not expected to be significant.