Lloyds Metals And Energy (512455) Q4 04/05 earnings summary

Executive summary

• FY05 total income rose 41% YoY to Rs281.61 crore; reported net profit was Rs29.83 crore versus a Rs1.57 crore loss, including a net exceptional gain of Rs24.26 crore.

• Profitability was materially affected by unprovided loan interest and debt restructuring; excluding the unprovided Rs24.77 crore interest, audited profit after tax would have been Rs5.06 crore.

Financial highlights

• Sales increased to Rs281.17 crore from Rs198.84 crore; other income was Rs0.44 crore, taking total income to Rs281.61 crore.

• Profit before interest, depreciation, exceptional items and tax rose to Rs25.80 crore from Rs7.09 crore; reported PAT was Rs29.83 crore versus a Rs1.57 crore loss.

• Exceptional items were Rs24.26 crore net; prior-period income was Rs0.15 crore and prior-year sales tax of Rs0.35 crore was deducted.

• No dividend was recommended given accumulated losses; balance-sheet losses carried forward were Rs212.60 crore.

Outlook and guidance

• Steel outlook was tied to global prices, which had shown signs of softening after remaining firm through the prior year.

• Domestic growth and infrastructure development were identified as demand opportunities; management said it would seek to remain competitive.

• Forward-looking results could vary with domestic and international demand, supply and prices, regulation, tax changes and broader economic developments.