ESAB India (ESABINDIA) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales and other income fell to Rs 1,650.385m from Rs 1,707.010m; PAT declined to Rs 87.123m from Rs 95.310m, despite efficiency and cost-control actions.

• A 25% dividend was recommended, absorbing Rs 38.483m, unchanged from the prior year.

Financial highlights

• Sales were Rs 1,627.998m vs Rs 1,685.018m; other income was Rs 22.387m vs Rs 21.992m.

• PBT was Rs 123.623m vs Rs 143.310m; tax provision was Rs 36.500m vs Rs 48.000m; PAT was Rs 87.123m vs Rs 95.310m.

• Profit was affected by lower turnover and net realisation; operational efficiencies and cost reductions partly offset the impact.

Outlook and guidance

• Full benefits of a newly installed modern production line are expected in coming years.

• Y2K system modifications and replacements were targeted for completion by October 1999 at an estimated Rs 4.5m, with contingency plans in development.

• Further product and productivity improvements are planned using ESAB technology and local technical expertise for Indian and overseas markets.