Garware Hi-Tech Films (500655) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000 net loss was Rs.59.44 crore, improving from Rs.104.93 crore in the prior 15-month period; severe market pressure and high financing costs remained.

• Net worth had fallen by more than 50% from its four-year peak, prompting an extraordinary general meeting and a required report to the Board for Industrial and Financial Reconstruction.

Financial highlights

• Loss before depreciation and taxation was Rs.2,740.30 lakh; depreciation was Rs.3,203.73 lakh and loss for the year was Rs.5,944.03 lakh.

• Interest expense was Rs.6,921.20 lakh for 12 months, versus Rs.7,783.66 lakh for the prior 15 months.

• Sales including excise duty were Rs.30,377.62 lakh; total income was Rs.48,175.04 lakh, including inter-divisional transfers and other income.

• Net cash outflow from operations was Rs.14.07 lakh; investing activities used Rs.1,198.83 lakh and financing activities generated Rs.153.78 lakh.

Outlook and guidance

• Operational improvement plans target labour rationalisation, productivity and quality, product and market mix, cost reduction, and new product development; implementation was underway.

• Loan and interest restructuring discussions with financial institutions and banks were expected to conclude shortly; IDBI appointed KPMG to review operations and recommend turnaround strategies.

• DMT commercial production began on 13 May 2000; performance was described as satisfactory, with efforts underway to market DMT domestically and internationally.