Borosil Renewables (BORORENEW) Q4 99/00 earnings summary

Executive summary

• FY2000 sales were Rs. 5,917.82 lacs and profit after tax was Rs. 7.77 lacs; no dividend was recommended to conserve resources.

• Furnace conversion trials disrupted production, while furnace-oil prices rose by over 100%; production later stabilized at both Marol furnaces.

• Borosil International distribution arrangements expanded the consumerware and labware range, with a strong market response reported.

Financial highlights

• Sales including excise duty fell to Rs. 5,917.82 lacs from Rs. 6,230.38 lacs; other income was Rs. 218.73 lacs versus Rs. 307.12 lacs.

• Profit before tax was Rs. 9.46 lacs versus Rs. 11.80 lacs; net profit after tax rose to Rs. 7.77 lacs from Rs. 6.19 lacs.

• Exports were Rs. 144 lacs versus Rs. 200 lacs, mainly due to manufacturing constraints.

• Gujarat Borosil Ltd. sales fell to Rs. 5,304.95 lacs from Rs. 6,376.01 lacs; it reported a net loss of Rs. 1,656.12 lacs versus Rs. 1,045.40 lacs.

Outlook and guidance

• Furnace No. 2 was recommissioned after a major redesign to produce medium- and low-expansion glass; trial runs began in February 2000.

• Configuration review for the Maraimalai Nagar furnace was underway amid substantial imports; technical drawings had been received and were being evaluated.

• Borosil International distribution was expected to boost sales and revenue and could create opportunities for future production joint ventures in India.