John Cockerill India (500147) Q4 15/16 earnings summary

Executive summary

• FY2015-16 remained challenging amid weak steel demand and project delays; net revenue from operations fell 6.4% YoY, while profit increased, supported by other income and efficiency measures.

• Profit for the year was ₹1,312.28 lakh, including a ₹1,433.93 lakh exceptional gain from the Silvassa asset sale; no dividend was recommended to conserve operating resources.

Financial highlights

• Net revenue from operations was ₹20,537.81 lakh vs ₹21,933.39 lakh; total revenue was ₹21,449.07 lakh vs ₹24,092.78 lakh.

• Profit before exceptional item and tax was ₹525.28 lakh vs ₹236.39 lakh; PBT was ₹1,959.21 lakh vs ₹792.87 lakh, including exceptional items of ₹1,433.93 lakh vs ₹556.48 lakh.

• Net income was ₹1,312.28 lakh vs ₹947.27 lakh; basic and diluted EPS were ₹26.58 vs ₹19.18.

• Operating cash flow was negative ₹962.38 lakh vs positive ₹3,094.87 lakh; cash and cash equivalents at year-end were ₹126.10 lakh vs ₹1,926.36 lakh.

Outlook and guidance

• Management expected revenue and profits to improve through better margins, barring unforeseen circumstances; focus areas included winning domestic and overseas orders, efficiency and cost savings.

• Strategy prioritized cost and capacity optimization, competitiveness, product concentration, new geographies and customer needs, with support from the wider CMI network.

• Steel demand in India was expected to strengthen as infrastructure projects gathered momentum, though Chinese exports and domestic competition were expected to keep steel prices under pressure.