Garware Technical Fibres (509557) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 delivered higher turnover and profit despite an economy-wide recession; domestic sales and exports both grew by more than 11%.

• Export growth, value-added product sales and expansion plans for netting supported the outlook; the proposed final dividend was 20% (Rs. 2 per share).

Financial highlights

• Total income was Rs. 16,035.15 lakh versus Rs. 14,501.40 lakh; sales were Rs. 15,804.27 lakh versus Rs. 14,180.97 lakh.

• Profit before tax rose to Rs. 940.48 lakh from Rs. 877.78 lakh; profit after tax increased to Rs. 870.48 lakh from Rs. 787.78 lakh.

• Earnings per share was Rs. 4.44; the proposed final dividend was Rs. 2 per share, absorbing Rs. 391.73 lakh.

• Domestic sales reached Rs. 10,453.95 lakh, up more than 12%; export turnover was Rs. 5,350.32 lakh, up more than 11% YoY.

Outlook and guidance

• New export markets under development in Japan, Thailand, Vietnam and South America were expected to support exports in coming years.

• Netting capacity expansion was underway at Wai, with construction of a new building in progress; global demand for netting was described as encouraging.

• R&D plans included Raschel nets for fish farming and extra-high-strength braided twines for export markets.