GMM Pfaudler (505255) Q4 98/99 earnings summary

Executive summary

• FY ended Mar. 31, 1999 sales rose 4% to Rs. 383.15m, while PBT fell 20% to Rs. 32.61m amid depressed prices and lost wind-power revenue.

• Record incoming order volume and improving demand supported a cautiously positive outlook, though price recovery was expected to take longer.

Financial highlights

• Revenue from operations was Rs. 383.152m vs. Rs. 366.858m; total income was Rs. 400.983m vs. Rs. 395.791m.

• PBT was Rs. 32.611m vs. Rs. 40.741m; profit after tax was Rs. 17.528m vs. Rs. 30.757m.

• Other income fell to Rs. 17.831m from Rs. 28.933m, including power-generation income of Rs. 1.814m vs. Rs. 8.091m.

• Operating cash flow was Rs. 11.988m vs. Rs. 18.502m; year-end cash and bank balances were Rs. 17.433m vs. Rs. 52.820m.

Outlook and guidance

• Demand for products and services was improving, but management expected prices to take longer to recover; cost controls were in place to improve product margins.

• Y2K compliance was expected before October 1999, with a program covering products, manufacturing, infrastructure, suppliers, vendors and information systems.