Godfrey Phillips India (500163) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000 sales income rose 3.5% to Rs 108,263 lacs; lower profits reflected a Rs 13.28 crore voluntary retirement scheme charge and a difficult cigarette market.

• Export earnings increased substantially, while the proposed final dividend rose to Rs 14.50 per share from Rs 12.00.

Financial highlights

• Gross revenue was Rs 109,408 lacs vs Rs 106,249 lacs; profit before tax was Rs 6,386 lacs vs Rs 6,808 lacs, and profit after tax was Rs 4,186 lacs vs Rs 4,726 lacs.

• Gross contribution from sales improved 17.45%; total sales income reached a record Rs 1,082.63 crore.

• Earnings per share were Rs 40.48 vs Rs 44.27; dividend per share was Rs 14.50 vs Rs 12.00.

• Foreign exchange earnings from exports, including tea and processed tobacco, were Rs 36.65 crore vs Rs 13.83 crore.

Outlook and guidance

• Positive macroeconomic indicators were expected to support consumer-goods growth; management expected continued improvement barring temporary setbacks.

• Customer feedback systems, electronic links with major customers and more empowered local teams were intended to improve responsiveness, efficiency and product freshness at lower cost.

• A new tea production unit in Uttar Pradesh was expected to contribute to Tea Division profitability through state trade-tax benefits.