GMM Pfaudler (505255) Q4 99/00 earnings summary

Executive summary

• FY00 sales and other income rose 5% YoY to Rs.419.20m; profit before tax fell 19% to Rs.26.381m amid soft demand and competition.

• Net profit was Rs.18.362m; the interim dividend of Rs.7.50/share was treated as the full-year dividend, with no final dividend recommended.

Financial highlights

• Income from operations reached Rs.403.326m versus Rs.386.999m; other income was Rs.15.874m versus Rs.12.172m.

• Cost of production rose to Rs.262.272m from Rs.226.159m; selling, general and administrative expenses fell to Rs.42.659m from Rs.52.394m.

• Interest and financial charges declined to Rs.12.450m from Rs.18.271m; profit after tax was Rs.18.362m versus Rs.17.528m.

• Exports of corrosion-resistant equipment, parts and glass frits were Rs.19m versus Rs.15.50m in FY99.

Outlook and guidance

• Q1 FY01 sales income was Rs.91.35m, up 20% YoY; order backlog reached Rs.167.48m as of July 31, up 28%.

• Current-year export income had reached Rs.11.5m, with Rs.26.8m of export orders on hand for execution during the year.

• Growth plans emphasized exports and new products, including a new-generation mixing system scheduled for launch in the current year.