Borosil Renewables (BORORENEW) Q4 96/97 earnings summary

Executive summary

• FY1996-97 sales rose to Rs. 5,575.85 lacs from Rs. 5,362.40 lacs, while PBT fell to Rs. 165.66 lacs from Rs. 311.88 lacs amid a prolonged furnace shutdown, lower-priced imports and weaker government demand.

• Tank I modernization and stabilized production at Maraimalai Nagar supported expectations for higher output and sales in FY1997-98.

Financial highlights

• Net profit after tax was Rs. 147.63 lacs versus Rs. 308.76 lacs; EPS was Rs. 4.31 versus Rs. 9.00.

• Gross profit after interest declined to Rs. 448.95 lacs from Rs. 553.67 lacs; depreciation rose to Rs. 283.29 lacs from Rs. 241.79 lacs.

• Other income decreased to Rs. 169.65 lacs from Rs. 248.11 lacs, including lower investment income and no profit on sale of investments held as stock-in-trade.

• A 20% dividend, or Rs. 2 per share, was recommended, subject to approval by term-lending financial institutions.

Outlook and guidance

• Higher production was expected in FY1997-98 as Tank I performance improved and Maraimalai Nagar production had stabilized; higher output was expected to lift sales.

• Exports were expected to rise substantially in FY1997-98 as product availability improved, with new-market efforts focused on South America, Africa and South East Asia.

• Sheet/float glass prices had begun firming in the final two months of FY1996-97; sustained pricing was expected to improve subsidiary viability.