Linde India (523457) Q4 96/97 earnings summary

Executive summary

• FY ended 30 Sep 1997 sales rose 4% YoY to Rs 2,329.3m; operating profit fell 17.6% to Rs 319.0m, excluding extraordinary income. Net profit was Rs 84.1m.

• Results reflected weaker industrial demand, competitive price pressure, the Delhi unit closure and higher voluntary separation costs; a Rs 10.9m property-sale gain was extraordinary income.

Financial highlights

• PBT before extraordinary items declined to Rs 83.9m from Rs 161.4m; PAT fell to Rs 84.1m from Rs 135.2m.

• FY sales were Rs 2,329.3m versus Rs 2,235.5m; extraordinary property-sale income was Rs 10.9m versus Rs 25.5m in 1996.

• Proposed dividend was Rs 2/share, or 20%, pro rata on rights shares allotted 22 Sep 1997; dividend and tax on dividend totaled Rs 61.0m.

Outlook and guidance

• Industrial sectors including secondary steel, ship-breaking, scrap processing and rerolling were expected to gradually return to normal levels.

• The 1,290 TPD Jamshedpur ASU was expected to commission in early 1998; its merchant output and scale were expected to support low-cost supply and eastern-region market share.

• Bhilai’s 550 TPD ASU was nearing commissioning; work on the 1,260 TPD Ispat Industries plant was about to start.