Garware Hi-Tech Films (500655) Q4 1997 earnings summary

Executive summary

• FY1997 results weakened amid economic recession and the South East Asian currency crisis; profit after tax was Rs 500.03 lakh, and no equity dividend was recommended.

• A fire at the Waluj polyester chips plant on 22 March 1998 caused damage and three fatalities; restart was estimated to take six months, with the insurance claim under assessment.

Financial highlights

• FY1997 profit before tax was Rs 579.01 lakh; profit after tax was Rs 500.03 lakh, after Rs 78.98 lakh tax, versus Rs 1,455.76 lakh profit for 1996.

• Sales including excise duty were Rs 31,637.05 lakh versus Rs 25,848.69 lakh; other income rose to Rs 1,588.36 lakh, including Rs 1,015.86 lakh profit on fixed-asset sales.

• Interest expense increased to Rs 4,010.17 lakh from Rs 2,052.88 lakh; depreciation was Rs 2,572.31 lakh versus Rs 1,553.12 lakh.

• Extraordinary and deferred items totaled Rs 2,050.41 lakh, including Rs 1,209.40 lakh for fire-damaged assets, Rs 500.47 lakh deferred revenue expenditure and Rs 340.54 lakh issue expenses.

Outlook and guidance

• The DMT project at Garware Chemicals was in its final implementation stage, with startup delayed by extraordinary developments in East Asia’s polyester sector; it was expected to go on stream in the near future.

• Following the Waluj fire, plant restart was estimated at six months; the insurance claim remained under assessment.