HeidelbergCement India (500292) Q4 99/00 earnings summary

Executive summary

• Nine-month period ended 31 March 2000; cement operations and capacity utilisation were described as satisfactory, but the period ended with a net loss of Rs 5,902.83 lakh.

• Cement sales volume rose 10.38% against the corresponding prior-year period; no dividend was recommended due to losses.

Financial highlights

• Net sales were Rs 24,431.35 lakh and net loss was Rs 5,902.83 lakh for the nine months ended 31 March 2000.

• Accumulated loss carried to the balance sheet was Rs 12,871.55 lakh, after a net prior-period adjustment of Rs 24.66 lakh.

• Financial charges were Rs 3,716.50 lakh, including Rs 151.44 lakh in leasing charges; depreciation was Rs 1,492.62 lakh.

• No dividend was recommended in view of the loss.

Outlook and guidance

• Housing demand was expected to support cement demand in the current fiscal; the outlook was described as positive despite continued pricing pressure and liquidity constraints.

• A new 15 MW turbine at Damoh was expected to be commissioned during calendar 2000, making the unit fully self-sufficient in power.

• Restructuring advice from ICICI Securities and Finance Company was being used to assess reorganisation or disposal of business activities and assets.