Borosil Renewables (BORORENEW) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales were Rs. 6,230.38 lacs and net profit Rs. 6.19 lacs; fire damage, weak demand and cost pressure constrained results. No dividend was recommended.

• Furnace rebuild and modernization were intended to support a return to medium-expansion pharmaceutical tubing and higher-quality exports.

Financial highlights

• Gross sales, including excise duty, were Rs. 6,230.38 lacs versus Rs. 5,646.38 lacs in FY1997-98; profit before tax was Rs. 11.80 lacs versus Rs. 18.02 lacs.

• Net profit after tax was Rs. 6.19 lacs versus Rs. 14.93 lacs; reported tax provision was Rs. 5.61 lacs versus Rs. 3.09 lacs.

• Gross profit after interest was Rs. 351.70 lacs versus Rs. 332.89 lacs; depreciation was Rs. 339.90 lacs versus Rs. 314.87 lacs.

• Exports were Rs. 200 lacs versus Rs. 250 lacs; new markets included Australia, Botswana, Tunisia, Greece and Denmark.

Outlook and guidance

• Furnace No. 2 was scheduled for commissioning in the first week of September 1999, dedicated to medium-expansion pharmaceutical tubing; modernization benefits were expected from FY2000-01.

• Maraimalai Nagar’s furnace was planned for modernization and major expansion, including upgraded tube drawing for internationally competitive tubing and overseas sales.

• Exports were expected to be sustained in the current year.