Garware Hi-Tech Films (500655) Q4 98/99 earnings summary

Executive summary

• Fifteen-month period ended Mar. 31, 1999 produced a net loss of Rs.103.55 crore, versus Rs.5.00 crore profit in the prior 12-month year; no equity dividend was recommended.

• Polyester-film price weakness amid a global petrochemical recession, higher interest costs and a sharp reduction in finished and semi-finished inventory weighed on results.

Financial highlights

• Total income was Rs.443.64 crore for 15 months, versus Rs.516.19 crore for the prior 12 months; sales including excise duty were Rs.307.50 crore versus Rs.316.37 crore.

• Loss before depreciation and tax was Rs.65.40 crore; depreciation was Rs.39.59 crore and loss before tax was Rs.103.55 crore.

• Interest expense rose to Rs.77.84 crore from Rs.40.10 crore; manufacturing and other expenses were Rs.148.51 crore versus Rs.118.77 crore.

• Other income included Rs.3.34 crore received toward keyman insurance premium; foreign-exchange fluctuation loss was Rs.11.46 crore.

Outlook and guidance

• Directors expected improved performance in the current year, citing firmer polyester-film selling prices and early signs of industry recovery.

• The 60,000-tonne-per-year DMT plant was ready for commissioning, with start-up expected in the near future, subject to arranging project funds.