Lloyds Metals And Energy (512455) Q4 03/04 earnings summary

Executive summary

• FY03/04 sales rose to Rs.19,883.92 lakh from Rs.16,973.35 lakh; reported net loss narrowed to Rs.157.17 lakh from Rs.3,241.41 lakh, helped by lower finance charges and a debt-settlement gain.

• Excluding the Rs.1,330.97 lakh loan and interest write-back, loss before tax was Rs.1,488.14 lakh; the audit also highlighted Rs.10,378.09 lakh of unprovided interest for the year.

Financial highlights

• Total income increased 17% YoY to Rs.19,936.49 lakh from Rs.17,058.86 lakh.

• Profit before interest, depreciation, exceptional items and tax was Rs.709.37 lakh versus Rs.794.03 lakh; net finance charges fell to Rs.601.86 lakh from Rs.2,445.30 lakh.

• Depreciation was Rs.1,599.65 lakh; reported loss after tax was Rs.157.17 lakh versus Rs.3,241.41 lakh, with EPS of (Rs.0.94) versus (Rs.22.34).

• Total assets were Rs.61,938.24 lakh; loan funds were Rs.48,573.98 lakh and net working capital was Rs.7,255.91 lakh at 31 March 2004.

Outlook and guidance

• Global steel demand and prices were described as firm; the FY04 outlook was considered better amid positive market conditions.

• Further improvement depended on lender approval of debt restructuring; lower interest rates were expected to support results if restructuring succeeded.

• Cost reduction and operational-efficiency initiatives continued through the preceding three difficult years.