HBL Engineering (517271) Q4 01/02 earnings summary

Executive summary

• FY2001-02 turnover declined to Rs.17,508 lakh from Rs.17,655 lakh; net profit fell to Rs.1,154 lakh from Rs.1,411 lakh despite lower material costs.

• Battery operations grew and remained profitable, while Electronics revenue contracted sharply and recorded a loss.

Financial highlights

• Sales were Rs.17,507.62 lakh and other income Rs.150.33 lakh; profit before tax was Rs.1,368.65 lakh and net profit Rs.1,153.93 lakh.

• EPS was Rs.5.75 versus Rs.7.03 in FY2000-01; no dividend was recommended, citing development projects and construction at Nandigaon.

• Operating cash flow was Rs.1,728.12 lakh; cash and cash equivalents rose to Rs.1,031.21 lakh from Rs.950.37 lakh.

Outlook and guidance

• New products under development were expected to be commercialized over the next two years; management anticipated better results and reasonable business and profit growth.

• Nickel-cadmium battery export-unit plans were deferred after the US aviation slump following September 11; management intended to restart the project after reassessing the market.