Garware Technical Fibres (509557) Q4 96/97 earnings summary

Executive summary

• A second poor fishing season and price cuts to defend market share reduced earnings sharply; domestic sales volume rose to 6,953 tonnes from 5,975 tonnes.

• Exports remained strong, and the business became a net foreign-exchange earner despite primarily imported raw materials.

Financial highlights

• Sales were Rs 11,899.22 lacs for FY1996-97 vs Rs 12,193.99 lacs; total income was Rs 12,184.07 lacs vs Rs 12,689.26 lacs.

• PBT fell to Rs 226.02 lacs from Rs 1,216.41 lacs; PAT was Rs 189.87 lacs vs Rs 1,213.16 lacs.

• Depreciation rose to Rs 783.74 lacs from Rs 499.53 lacs; interest expense increased to Rs 1,049.41 lacs from Rs 792.16 lacs.

• Proposed dividend was 15% pro rata on enhanced capital, absorbing Rs 287.70 lacs vs Rs 370.78 lacs.

Outlook and guidance

• With market share regained, the business expected to benefit from the forthcoming fishing season; plans included more end-user contact and a stronger distribution network.

• Export focus shifted toward higher-value European products and new markets offering better realisations.

• The Garware-Utzon project was under re-evaluation following fluctuations in the Danish krone.