HEG Advanced Materials (HEGAM) Q4 98/99 earnings summary

Executive summary

• FY1998-99 turnover rose 2.55% to Rs 426.12 crore; operating profit before interest, depreciation and taxes increased 9.52% to Rs 100.35 crore.

• Net profit after tax grew 18.52% to Rs 36.16 crore despite domestic weakness and global market disruption.

Financial highlights

• Revenue was Rs 426.12 crore versus Rs 415.51 crore; exports were Rs 193.71 crore versus Rs 202.68 crore.

• PBIDT was Rs 100.35 crore versus Rs 97.38 crore; PBT rose to Rs 37.38 crore from Rs 33.14 crore.

• PAT was Rs 36.16 crore versus Rs 30.51 crore; EPS increased to Rs 8.80 from Rs 7.49.

• Other income rose to Rs 15.39 crore from Rs 6.54 crore, including Rs 9.53 crore profit on fixed-asset sales versus Rs 0.15 crore.

Outlook and guidance

• Graphite export order book was healthy, but international competition remained stiff; cost-reduction benefits were expected in the following FY.

• Power operations were expected to maintain performance; sponge iron output was to be sustained, with profit dependent on steel-industry conditions; textile outlook remained uncertain.