Birla Corporation (500335) Q4 98/99 earnings summary

Executive summary

• FY ended Mar. 31, 1999 recorded a net loss of Rs. 53.62 crore, compared with Rs. 51.12 crore in FY98; income declined 9% amid recession-driven lower sales volume.

• Gross profit before interest rose to Rs. 32.48 crore from Rs. 24.16 crore, supported by cost controls, better marketing and improved realisations.

Financial highlights

• Sales were Rs. 873.30 crore versus Rs. 972.04 crore; total income was Rs. 900.11 crore versus Rs. 986.85 crore.

• Interest expense increased to Rs. 53.41 crore from Rs. 45.43 crore; deficit after interest but before depreciation was Rs. 20.93 crore, versus Rs. 21.27 crore.

• Net loss after tax was Rs. 53.62 crore, versus Rs. 51.41 crore; depreciation expense rose to Rs. 32.63 crore from Rs. 30.08 crore.

• Exports totalled Rs. 91.22 crore, down 13% from Rs. 105 crore in FY98.

Outlook and guidance

• Cement demand growth was expected at 8%–9% in FY00, with housing and infrastructure budget incentives seen as potential demand support.

• No significant cement capacity additions were expected industry-wide over the next two years; expansion at Satna was deferred, while environmental clearance follow-up continued for a 1.2 million MT expansion at Chittor.

• Auto-trim production of Zen and Safari models was expected to increase in FY00; regular supplies of approved Alto trims were also expected to begin during the year.