Finolex Cables (FINCABLES) Q4 97/98 earnings summary

Executive summary

• FY98 turnover fell 4% to Rs 4,608.55 million, while profit after tax rose to Rs 486.17 million from Rs 483.76 million, supported by cost control and operating efficiency.

• Growth priorities included expanding light-duty, power, communication and specialty cables, reducing reliance on DoT orders, and developing export markets.

Financial highlights

• Turnover, inclusive of excise, was Rs 4,608.55 million versus Rs 4,805.67 million in FY97; profit before tax was Rs 699.17 million versus Rs 703.76 million.

• Net income was Rs 486.17 million versus Rs 483.76 million; EPS was Rs 26.9 versus Rs 26.8.

• Finance charges rose to Rs 358.25 million from Rs 249.24 million; depreciation was Rs 131.57 million versus Rs 151.92 million.

• Proposed dividend increased to Rs 6 per share from Rs 5.50; total proposed dividend was Rs 108.32 million.

Outlook and guidance

• A Goa light-duty cable plant was planned at an investment of ~Rs 750 million, with operations expected to start by 2000.

• LAN and coaxial cable facilities at Urse, expanded light-duty capacity, and specialty products were intended to support diversification and import substitution.

• Export growth was targeted for FY99 following customer approvals for cables meeting Australian, New Zealand and UK specifications.

• SAP ERP implementation was selected to support process re-engineering, integration and operational performance.