Borosil Renewables (BORORENEW) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 remained subdued amid suspended furnace operations and high interest costs; gross sales fell to Rs 687,300 thousand from Rs 864,891 thousand, while net profit was Rs 4,435 thousand.

• Operations are being addressed through an ICICI Bank settlement and planned Furnace No. 1 capacity expansion; consumerware growth and new imported ranges offered some support.

Financial highlights

• Gross sales, including excise duty, were Rs 687,300 thousand versus Rs 864,891 thousand; net sales were Rs 660,013 thousand versus Rs 847,557 thousand.

• Loss before tax was Rs 3,247 thousand, improving from Rs 16,747 thousand; net profit was Rs 4,435 thousand versus a net loss of Rs 9,693 thousand.

• Profit before interest, depreciation and extraordinary items was Rs 74,400 thousand versus Rs 130,198 thousand; interest expense was Rs 62,652 thousand versus Rs 86,525 thousand.

• Net extraordinary gain was Rs 21,123 thousand, compared with a Rs 21,482 thousand net loss; FY 2002-03 included a TDR-related fixed-asset gain.

• No dividend was recommended to conserve resources.

Outlook and guidance

• Furnace No. 1 was planned for an upgrade from 12 MT/day to 22 MT/day, with commissioning expected by year-end; financing was being arranged.

• Furnace No. 2 was expected to recommence operations during the next quarter; Maraimalai Nagar lamp-shop and grinding operations continued.

• Consumerware priorities include microwave glassware and drinking glasses; scientific and industrial growth prospects were considered limited by restricted public funding.

• New scientific and laboratoryware products were in development, while sub-contract activity had been expanded to improve product availability.