HEG Advanced Materials (HEGAM) Q4 96/97 earnings summary

Executive summary

• FY1996-97 turnover rose 3% to Rs 293.00 crore; PBIDT increased 33% to Rs 64.89 crore, partly due to profit on sale of a rig, while PAT fell to Rs 22.17 crore from Rs 24.97 crore, partly due to MAT.

• Results reflected margin pressure and a higher interest burden as major expansion projects were completed; the full benefit of expanded capacity was expected in coming years.

Financial highlights

• Turnover was Rs 293.00 crore vs Rs 284.76 crore; exports were Rs 112.37 crore vs Rs 70.61 crore.

• PBIDT was Rs 64.89 crore vs Rs 48.62 crore; PBT was Rs 25.43 crore vs Rs 25.01 crore; PAT was Rs 22.17 crore vs Rs 24.97 crore.

• Other income included Rs 9.99 crore profit on sale of fixed assets, including one rig; PBIDT growth was partly attributable to the rig sale.

• Proposed dividends: 15% on equity and 14% on preference shares; total dividend including tax would absorb Rs 6.96 crore.

Outlook and guidance

• Graphite expansion to 24,000 tonnes was fully commissioned and operating satisfactorily; increased output and an improved product mix were expected to support exports in coming years.

• Management expected the full impact of completed projects and diversification to emerge in coming years.

• Provisional anti-dumping duties on electrode imports were expected to help domestic producers regain market share.

• The coming year was expected to improve for the Rishabhdev textile unit following signs of industry recovery.