Linde India (523457) Q4 00/01 earnings summary

Executive summary

• Turnover rose 14% to Rs 3,014 million versus the prior 18-month period annualised; net profit was Rs 18 million, a Rs 279 million swing from the prior annualised loss excluding the prior period’s one-off charge.

• Restructuring, stronger volumes and plant loading, tighter cost controls, and lower interest costs supported the return to profitability.

Financial highlights

• Sales were Rs 3,013.7 million and other income Rs 29.0 million; profit before and after tax was Rs 18.1 million for the year ended 31 March 2001.

• Prior-period results covered 18 months and included Rs 402.2 million of one-off provisions; current-year separation and terminal payments were Rs 4.9 million versus Rs 122.5 million in the prior period.

• Quarterly results improved from a Rs 2.3 million loss in Q1 to Rs 12.3 million profit in Q4.

• Net working capital fell Rs 75.9 million and debtors fell Rs 36.7 million despite 14% turnover growth.

Outlook and guidance

• Outlook for 2002 was cautiously optimistic: political stability and a forecast good monsoon could help, while industrial deceleration remained a drag on bulk and compressed gases.

• Performance priorities included higher volumes and revenues, tighter financial controls, new products for home care, and further development of cryogenic and non-cryogenic contract opportunities.

• Discussions with an oil major on potential entry into LPG distribution were at an advanced stage.