Birla Corporation (500335) Q4 99/00 earnings summary

Executive summary

• Income rose 15% YoY to Rs. 1,037.99 crore on higher sales volume; gross profit before interest improved, but the year ended with a Rs. 38.36 crore net loss.

• Cement operations achieved production and dispatch records, while depressed cement prices and higher input costs kept results below projections.

Financial highlights

• Income was Rs. 1,037.99 crore vs Rs. 900.11 crore; gross profit before interest was Rs. 46.32 crore vs Rs. 32.48 crore.

• Interest expense declined to Rs. 52.53 crore from Rs. 53.41 crore; loss after interest but before depreciation narrowed to Rs. 6.21 crore from Rs. 20.93 crore.

• Net loss was Rs. 38.36 crore vs Rs. 53.62 crore; accumulated losses precluded a dividend recommendation.

Outlook and guidance

• Cement consumption growth of 9%–10% was expected to continue, with no significant capacity additions anticipated; intense competition was still expected to persist.

• Cost-reduction measures were to continue; proposed Chittor modernization was expected to add 1.6 lakh tonnes/year at Rs. 12 crore, while 1.2 million-tonne expansion awaited environmental clearance.

• Automobile-sector growth was expected to support Auto Trim prospects; a good jute crop was expected to moderate raw-jute prices.