GMM Pfaudler (505255) Q4 00/01 earnings summary

Executive summary

• FY2000-01 sales and other income were Rs 436,978 thousand, up from Rs 418,672 thousand; net profit after prior-year tax adjustment was Rs 18,888 thousand.

• Demand remained soft for a third consecutive year amid recession in India’s chemical processing industry; larger equipment orders and exports supported sales growth.

Financial highlights

• Income from operations rose to Rs 425,650 thousand from Rs 402,798 thousand; other income fell to Rs 11,328 thousand from Rs 15,874 thousand.

• Profit before tax declined to Rs 19,490 thousand from Rs 26,381 thousand; profit after tax before prior-year adjustments was Rs 17,719 thousand versus Rs 18,362 thousand.

• Operating profit before depreciation, interest and tax was Rs 44,082 thousand versus Rs 53,892 thousand; interest expense fell to Rs 7,466 thousand from Rs 12,450 thousand.

Outlook and guidance

• The proposed dividend fell to Rs 5 per Rs 10 share from Rs 7.50, reflecting the economic slowdown and pressure on margins.

• Further energy-audit recommendations were under review for implementation in the current year; natural gas was being evaluated as an alternative to electric furnace energy.