HEG Advanced Materials (HEGAM) Q4 99/00 earnings summary

Executive summary

• FY00 turnover rose 9.34% to Rs 465.93 crore; reported PAT fell to Rs 30.39 crore from Rs 36.16 crore, while adjusted profitability rose 14.08% excluding the prior-year rig-sale profit.

• Economic conditions recovered in the second half; export and domestic graphite demand improved after prolonged weakness.

Financial highlights

• Revenue Rs 465.93 crore, up from Rs 426.12 crore; exports Rs 219.67 crore versus Rs 193.71 crore, and domestic turnover Rs 246.26 crore versus Rs 232.41 crore.

• PBIDT Rs 87.61 crore versus Rs 100.35 crore; PBT Rs 30.02 crore versus Rs 37.38 crore; PAT Rs 30.39 crore versus Rs 36.16 crore.

• Excluding prior-year rig-sale profit, prior-year net profit was Rs 26.63 crore; FY00 PAT of Rs 30.39 crore represented 14.08% profitability growth on this basis.

• Interest expense declined to Rs 38.01 crore from Rs 43.78 crore; depreciation was Rs 19.58 crore versus Rs 19.19 crore.

Outlook and guidance

• Graphite expected to deliver higher volumes and profitability on a healthy order book, partial expansion commissioning and international demand and price increases.

• Power expected to maintain performance; sponge iron production and profitability expected to improve, with textile units expected to contribute positively.

• Graphite expansion was to be partly commissioned during FY01, with full commissioning targeted for mid-2001.