ESAB India (ESABINDIA) Q4 99/00 earnings summary

Executive summary

• FY ended 31 Mar 2000 was a difficult year: sales fell 21% amid weak industrial demand, intense competition and restructuring; the year ended with a net loss of Rs 199.326m.

• Export turnover grew 28% YoY, while restructuring and cost-control measures were expected to support a turnaround in the ensuing year.

• No dividend was recommended due to the loss.

Financial highlights

• Sales were Rs 1,278.172m versus Rs 1,627.998m; other income was Rs 20.095m versus Rs 22.387m.

• Net loss was Rs 199.326m versus net profit of Rs 87.123m; loss before tax was Rs 199.326m versus profit before tax of Rs 123.623m.

• Voluntary separation compensation and related payments were Rs 121.306m, versus Rs 7.264m in FY99.

• Net cash from operating activities was Rs 12.732m; cash and cash equivalents fell to Rs 51.410m from Rs 179.306m.

Outlook and guidance

• Directors expected restructuring benefits to accrue in future years and expressed confidence in a quick turnaround in the ensuing FY.

• Higher project implementation levels were expected as the investment scenario improved; investment in modernisation and expansion was intended to lift market share and reduce costs.